
Tuesday, February 07, 2012
Morocco’s Agence Nationale de Reglementation de Telecom (ANRT) reports that the country had 36.554 million mobile subscribers at the end of December 2011, an increase of 404,000 in the fourth quarter and up from 31.982 million twelve months earlier. According to the regulator’s calculations this gives the country a cellular penetration of 113.6%. The ANRT claimed that Maroc Telecom held onto a 46.9% share of subscribers at the end of 2011, down from 52.8% a year previously, while Medi Telecom (Meditel) had 32.9% (down from 33.7%) and Wana (Inwi) accounted for 20.2% (up from 13.5%). In the 3G mobile internet sector, data-only subscriptions reached 1.499 million at the end of December 2011, a growth rate of 6.83% over the previous quarter, while the number of mobile voice-plus-data subscriptions reached 1.091 million, up by 17.83% quarter-on-quarter. Total 3G mobile broadband subscribers stood at 2.591 million as of 31 December 2011, representing an 11.2% growth rate in the fourth quarter, and 89.58% on an annual basis. At the end of the year, the mobile broadband market shares were: Maroc Telecom 42.53%, Meditel 34.99% and Wana 22.48%.
The watchdog also reported that mobile voice traffic leapt up by 65.6% in 2011, to 23.315 billion minutes, reflecting price reductions. In contrast, in the fixed line sector, voice traffic was down by 9.4% in the year to 5.487 billion minutes. In terms of subscribers, too, the fixed line market shrunk slightly in 2011, with 3.566 million lines in service at the end of December, down from 3.749 million year-on-year. 61% (2.295 million) of the total connections were based on limited mobility CDMA technology, a large majority of which are provided by Wana. This was the first time since 2006 that the total fixed line subscriber market had declined. In terms of overall market share in the fixed line (including limited mobility) sector, Wana accounted for 64.59% of customers at end-2011, Maroc Telecom claimed 34.79% and Meditel 0.62%.
Source: TeleGeography.

Thursday, February 02, 2012
Ecuadorian regulator Supertel reports that the country’s mobile operators reached 15.8 million telephony subscribers between them at the end of 2011, compared to 15 million a year earlier. Market shares were only fractionally changed from a year ago: Claro, the local subsidiary of America Movil, claimed around 70% of the total, with Telefonica unit Movistar Ecuador serving around 28% of users and state-backed CNT bringing up the rear with a 2% share.
Growth of the total market is being affected by the implementation of compulsory pre-paid mobile user registration; Ecuadorian SIM card owners were given nine months from 5 July 2011 to register their details on a national database or have their services limited from 5 April 2012 to incoming calls or messages only. In July 2012 all remaining unregistered SIMs will be disconnected.
Source: TeleGeography.

Friday, January 27, 2012
The government of Equatorial Guinea has launched a telecoms operator called Gecomsa (Guinea Ecuatorial Comunicaciones Sociedad Anonima). Equatorial Guinea is currently served by two telecoms operators – Getesa and Hits. Gecomsa will provide mobile voice and internet services across Equatorial Guinea. Gecomsa is a joint venture between the government of Equatorial Guinea, which owns a 51 percent stake in the company, and the government of China with the remaining 49 percent.
Source: Telecom Paper.

Friday, January 20, 2012
China is on track to surpass 1 billion mobile connections before the end of the current quarter, fuelled by growth in 3G which will soon account for a quarter of the country's connections. According to Wireless Intelligence, China ended 2011 with 973.7 million connections, up about 16 percent year-on-year. The number of 3G connections surpassed 200 million in Q4 and accounted for 22 percent of the total. Market penetration is estimated at 72 percent, up almost 10 percent from a year ago. 3G is now accounting for almost 80 percent of new connections in the country and 3G net additions in Q4 are estimated at 26.8 million out of a total 34.2 million. China Mobile remains the country's market leader, with an estimated 648.7 million connections in Q4, giving it a 67 percent market share. However, 3G connections account for just 8 percent of China Mobile's total base. 3G accounted for 20 percent of the total at second-placed Unicom, while third-placed China Telecom had 26 percent of its base migrated to 3G.
Source: Telecom Paper.

Thursday, January 19, 2012
According to the Brazilian telecoms regulator Anatel, the country was home to more than 242.2 million mobile SIMs at the end of December 2011, a cellular penetration of 123.97%. Net additions for the year reached 39.3 million, it said, including 6.1 million in December alone. At the year end, Anatel reported that 191.2 million connections were for pre-paid users, equivalent to 81.8% of the total base, with the remainder (44 million, or 18.2%) on monthly contracts. Telefonica-Vivo closed out the year in top spot, with 29.54% of the market (71.55 million users), ahead of TIM Brasil with 26.46% (64.08 million), which leapfrogged Claro Brazil (24.93%, or 60.38 million) in the process. Fourth place was taken by Telemar Norte Leste (Oi) which secured 45.48 million subscribers, equivalent to 18.78% of the market, and regional operator CTBC Cellular (Algar Telecom) had a total of 653,905 subscribers, or 0.07% of the sector. Anatel also noted that 3G devices (including handsets and dongles) topped 41.1 million at 31 December 2011, up 99.3% year-on-year.
Source: TeleGeography.
The Hungarian telecoms watchdog the National Media and Infocommunications Authority (NMHH) says the total number of mobile subscriptions in the country reached 11.642 million at 31 December 2011, although net additions only inched up marginally by 47,000 in the last month of the year. Excluding ‘inactive’ accounts, the NMHH said active mobile subscriptions (i.e. where a call was made within the past three months) topped 11.10 million at the same date – with December net additions standing at 112.000. T-Mobile Hungary’s market share based on active users stood at 45.40% by the year end, up from 45.38% in November, Telenor’s fell to 31.98% from 32.03% and Vodafone’s rose to 22.63% from 22.59%.
Source: TeleGeography.

Wednesday, January 18, 2012
MTN Swaziland has launched a new campaign titled ‘airtime for education’ for its prepaid subscribers enabling them to win one of the seven school fee packages. According to reports, users will need to recharge with a minimum of US$ 1.23 daily to be able to win the price worth US$ 185.
As per sources, Ambrose Dlamini, CEO, MTN has said that through this promotion they aim to offer consumers relevant rewards and better engage with them. He added that MTN is a happy brand and they are determined to fully explore this trait. They want their customers to interact more with the brand and derive a satisfactory level of fun and excitement for being MTN customers.
Source: Wireless Federation.
Free has gone for low prices, which it says are 2.5 times cheaper than the lowest priced offer at its rivals. Unlimited calls, SMS and MMS, including calls to 40 other countries, costs EUR 20 per month and also includes 3GB of data use. Existing broadband subscribers pay only EUR 16 per month for the same plan. No subscription contract is required, unless the customer opts for a handset such as the iPhone. A basic offer of 60 minutes and 60 SMS per month is also available for EUR 2, or free for existing Free customers. Free has said the prices are valid for only the first 3 million mobile customers (it already has almost 5 million broadband subscribers). This may mean the price will go up slightly later to drive ARPU growth.
Free is known for its simple business model, aimed at quickly building market share: a triple play costs EUR 30 per month, the hardware (Freebox) and software are largely developed in house and it is continually adding new services. This saves on most marketing costs. The model is similar to that of HKBN in Hong Kong (see our commentary 'City Telecom sets the good example for FTTH operators'): low prices, innovative services and a shift away from marketing to sales spending. HKBN does this through its call centre, which has as many employees as the rest of the company combined (1,500 each). The call centre actively upsells services, pro-actively targeting customers in order to sell more services per subscriber and increase ARPU.
The question is whether Iliad can reproduce this model on the mobile market. A low price is an important part of the strategy, and the company has clearly succeeded in that - there could very possibly be a flood of customers now that it has started taking on subscribers. It is also a fitting strategy for a newcomer, which has no 'burden' of legacy revenues such as voice/SMS to worry about losing, nor an existing mobile organisation or (GSM, UMTS) network to maintain. At Free, innovation is driven by its own development team and CPE. In addition there is an active external community developing apps for the Free platform. While Free is unlikely to take on developing its own handsets, the move into mobile may stimulate both its internal and external developers to step up the creation of new services and apps.
What remains is a newcomer that can credit itself with starting a price war. In this sense it's an interesting case study for the Netherlands, where there is a good chance a new fourth operator will also soon emerge. Dutch consumers can hope that Tele2 Netherlands and Ziggo4 (Ziggo/UPC) take Free Mobile's example close to heart. Even for the existing operators, Free Mobile is an operator to keep a close eye on in the coming quarters.
Source: Telecom Paper.
Free Mobile has announced the prices of its new service, staying true to its promise of simple tariffs and to halve consumer bills. The company started signing up new customers on the morning of 10 January, effectively launching France's fourth mobile network. For customers new to Free, the unlimited package costs EUR 19.99 a month with no contract tie-in period, for unlimited calls in France, overseas French territories and 40 international destinations in Europe and the US. The subscription also includes unlimited SMS/MMS and internet with VoIP, Wi-Fi and 3G/3G+ up to 3 GB a month. The operator states that at this price point it is 2.5 times cheaper than the best price of any competitor. Free Mobile has also introduced a EUR 2 a month, no tie-in period contract for 60 minutes of calls and 60 SMS a month. Extra SMS cost EUR 0.05, compared to EUR 0.10 at Orange France and SFR, and EUR 0.09 at Bouygues Telecom. Free Mobile also revealed advantageous pricing for sister company Free's internet customers. The unlimited mobile plan costs EUR 15.99 rather than EUR 19.99 and the 60 min/60 SMS plan is free instead of EUR 2. These prices are reserved to the first 3 million customers. Free Mobile said it offers a range of the best mobile phones on the market and choice will continue to grow with BlackBerry handsets and services still to come. The iPhone 4S will start shipping on 27 January. The 16 GB version will cost EUR 1 for the first month, then EUR 19.99 a month over 36 months. The 8 GB model will cost EUR 1 plus EUR 15 a month over three years. Free Mobile will start taking iPhone 4S orders on 20 January.
Source: Telecom Paper.
Haiti’s new national full-service telecoms operator Natcom, a joint venture between Vietnam’s Viettel and the Haitian government, has announced that it signed up 500,000 mobile customers after two months of its commercial cellular network launch on 7 September 2011. Viettel also revealed on its website that the number of Natcom’s sales agents and customer service outlets reached 4,000 as of November 2011, doubling the amount at launch. According to TeleGeography’s GlobalComms Database, between the launch of trial services in July 2011 and its official launch two months later, Natcom attracted 140,000 2G mobile subscribers and ‘thousands’ of 3G internet subscribers, deputy director Tran Sy Tien was quoted as saying, and the company claims to have reached its target of 500,000 users by the end of 2011 early, although it is not yet known if it achieved a goal of 20,000 3G connections amongst this total. Natcom’s Vietnamese parent has invested in the rollout of approximately 1,000 2G and 3G mobile base stations as well as deploying 3,000km of fibre-optic cable, and by end-2012 is aiming for two million mobile subscribers. Haiti’s mobile market is currently led by Digicel, which competes with another GSM provider, the country’s second-largest operator, Voila.
Source: TeleGeography.
Data published by the national regulator the Nepal Telecommunications Authority (NTA) shows that the mountain Kingdom was home to 14.75 million mobile subscribers at mid-November 2011, after net additions of 2.14 million new connections in the preceding month. At that date overall teledensity (fixed and mobile) stood at 55.41%, according to the NTA’s latest Management Information System report, as fixed lines reached 844,816 (including 228,305 WiLL lines).
Nepal Telecom (NT) added a net 130,000 mobile subscribers in the month to mid-November to boost its total to 7.18 million (including 857,981 CDMA users), while fellow GSM provider Ncell reported close to 6.69 million connections, having added a net 350,000 users in the month under review. Meanwhile, the country’s smaller players fared less well in terms of subscriber growth. United Telecom Limited reached reached 588,307 customers from 585,170 previously, Nepal Satellite Telecom upped its total from 97,280 to 98,985 and Smart Telecom had 193,064 users, up from 179,136 at mid-October.
At the same date the NTA said the total number of internet subscribers stood at 3.75 million, up from 3.59 million a month earlier, with the overwhelming majority (almost 3.44 million) arising from GPRS mobile internet connections. The number of ADSL connections topped 76,740 for NT, with cable modem and other (wireless, fibre-optic) reaching 16,898 and 30,397 respectively.
In a separate development, Nepalese newspaper MyRepublica writes that last Friday the Bills Committee of the cabinet endorsed the amendment to Telecommunication Regulations, raising the licence renewal period for all operators and ISPs to ten years. Until now, service providers have been required to renew their licences every five years. The decision came despite recommendations from both the Public Accounts Committee (PAC) and the Commission for the Investigation of Abuse of Authority (CIAA) that the government not effect any changes to local telecoms rules, particularly as they were investigating cases of possible anomalies concerning previous licence awards. The Bills Committee seemingly has disregarded this advice and even moved to endorse a provision that could pave the way for the introduction of a Unified Licensing Policy – a proposal still being pushed by the NTA even though the government rejected such a call four years ago.
Finally, the CIAA is also being called upon to carry out a study on the contentious allocation of frequencies for 2G and 3G mobile services, and to look into an ongoing issue of a possible ‘scam’ surrounding voice-over-internet protocol (VoIP) telephony in Nepal. The Himalayan News Service reports that a sub-committee of the CIAA is being advised to bring former and current NTA board members into the spotlight of the investigation, and has also hinted it take action against government ministers. The sub-committee — formed on January 13, 2011 — has raised the issue of frequency allocation, 3G frequency distribution without charge, royalty disputes and different standards for different rural telecom service providers in its report.
Source: TeleGeography.

Tuesday, January 17, 2012
Brazil finished 2011 with more than 242.2 million mobile phone lines, after adding 39.3 million new subscribers last year. The country's mobile penetration reached 123.87 percent at the end of 2011, according to figures from market regulator Anatel. New additions were the highest in the past twelve years and totaled 6.1 million in December alone. Of the total base, 191.2 million were prepaid (81.81%) and 44 million postpaid (18.19%). Vivo finished in first place with 29.54 percent or 71.55 million subscribers. TIM Brasil surpassed rival Claro to take second place with 26.46 percent or 64.08 million customers. Claro Brasil ended the year with 24.93 percent or 60.38 million subscribers. Oi was in fourth position with 18.78 percent or 45.48 million subscribers, and regional operator CTBC closed the year with 653,905 subscribers, accounting for 0.07 percent. 3G handsets (phones and mobile devices) totalled more than 41.1 million in Brazil last year, which means an increase of 99.31 percent compared to 2010.
Source: Telecom Paper.

Monday, January 16, 2012
Some 71% of India’s total mobile subscription base is active.
TRAI, the regulator, reports that India had 884.37 million mobile subscriptions in November 2011, up by 2.97 million in the month. Rural areas accounted for 71.7% of these net additions to reach rural penetration of 36.05%, while urban penetration reached 159.92%. Of the 884.37 million mobile subscriptions, around 71.8% or 635.39 million were active (not accounting for the CDMA subscriber base of BSNL) on the basis of the peak Visitor Location Register (VLR) in November 2011.
A number of operators have said that they will start disconnecting customers who have not used their mobile phones for more than 60 days (see India: 20 November 2011: Vodafone to Disconnect Inactive Subscribers). This is the timeline the Indian authorities use to calculate operators’ numbering requirements. As a result, operators’ mobile customer bases will appear to shrink, although both ARPU and MoU levels will be boosted as a result of these calculations. The table below provides an estimate of how monthly ARPU could be lifted by a revision of Vodafone India’s customer base.
Source: IHS.
Mobile subscribers in Belarus totaled 10.7 million in Belarus on 1 January, according to Belarusian Statistics. Mobile penetration is at 113 percent, from 108.6 percent the year before. The country has 14,600 base stations across the country and 4,100 UMTS base stations.
Source: Telecom Paper.

Friday, January 13, 2012
The Uganda Communications Commission (UCC) will begin enforcing the registration of new and existing mobile phone users on 1 March this year, according to local daily New Vision. Customers of wireless services will be given one year to register their SIM with their mobile provider, backed-up with a national identity document such as a passport or driver’s licence. Owners of multiple SIMs will need to have all of their lines registered, and those without the required documents will be able to have a family member register on their behalf. SIMs unregistered by the 1 March 2013 cut-off point will be deactivated.
The registration drive aims to reduce phone-based crime, and follows similar projects throughout East Africa in Kenya, Rwanda and Tanzania. As noted by TeleGeography’s GlobalComms Database, at the end of September 2011 Uganda was home to some 16.1 million wireless customers, representing 47.4% of the population.
Source: TeleGeography.

Wednesday, November 30, 2011
Africa’s leading telecommunication provider, MTN, has launched a promotion for new prepaid subscribers by offering them free airtime. According to reports, the operator will offer customers purchasing the MTN Pay As You Go starter kit, free airtime worth US$ 14.2 for an entire year, on every recharge of US$ 7.13 or more. Apart from this, the operator also offers the users various benefits such as ten free daily call-backs, five free text messages for every fifteen messages sent along with thirty free SMS every month.
As per sources, the operator says that the US$ 14.2 free airtime is spread across the year, enabling users to receive US$ 1.2 each month. However, in order to receive the monthly airtime, the users need to have a minimum recharge of US$ 7.13 every month. Further, the offer is considered to be valid for a year from purchase of the starter kit, and any customer migrating out of this price plan within the 12 months will lose this benefit.
The promotion is said to be valid from 1 December 2011 to 20 May 2012.
Source: Wireless Federation
Comcel, a leading mobile phone operator in Colombia, has reportedly announced the launch of the new HSPA+ (High Speed Packet Access) technology in the main cities of the country, in an attempt to provide users access to high speed internet on their mobile phones.
According to reports, the new technology will enable users to browse mobile internet at speeds up to four times faster, between 1 and 1.2 megabytes per second. Further, Juan Carlos, President, Comcel has reportedly said that the service will initially be offered in Bogota, Cali, Medellín, Barranquilla and Pereira.
Further, as per sources, mobile operator Tigo’s internet services are currently limited to USB modems, but the operator has hinted at plans to make this service available to users on their mobile phones in the near future.
Source: Wireless Federation
With the increase in saturation of mobile services in urban markets across the world, mobile operators have shifted their focus to towards the relatively untapped rural markets for better business opportunities and a chance at increasing revenues.
According to reports, industry analysts predict Nigeria the largest mobile market in the continent, to be home to over 90 million subscribers by this year end. Further, improvements in broadband connectivity along with the emergence of new generation smartphones are expected to drive mobile data growth in the economy.
In most rural economies, the lack of adequate infrastructure has been a grave cause of concern for mobile operators as it reduces their profits and drives up costs for customers. Currently, industry reports suggest that a fully functioning network grid could help operators cut their mobile tariffs by 50 percent, which is higher than those being offered in developed countries.
Changes have been observed in the investment environment as well. With operators offering discounted services to low income users in order to expand their reach, the ARPU (Average Revenue Per User) has witnessed a decline. Bharti Airtel, which had acquired Africa’s Zain, slashed its prices by significant amounts in a bid to increase its market share, which increased the pressure across the industry. Further, sources reveal that Etisalat (Saudi Arabia) and Globacom have also been increasingly gaining customers, giving strong competition to market leader MTN.
The next big thing in the economy is being considered to be mobile banking services. With a large portion of the population being unbanked but gaining access to mobile devices, more and more consumers are using their phone to transfer money and pay for goods, in a more convenient and secure manner.
Source: Wireless Federation
Iran has reportedly received a third mobile phone operator by the name of Ritel to offer users in the country with mobile services. Prior to this, Iran played host to two mobile phone operators, Mobile Communication Company of Iran (MCI) and South African-owned MTN Irancell.
According to reports, the government had awarded a third licence to Tamin Telecom in October 2009, however the operator is not yet operational, but has however revealed plans to cover 60 percent of the population with its 2G network and 40 percent with its 3G network by 2014.
Sources claim that there have been speculations regarding whether the licence awarded to Ritel is a new licence or the one issued to Tamin Telecom. Details regarding Ritel’s coverage area or the ownership structure are yet to be disclosed.
Source: Wireless Federation

Wednesday, November 16, 2011
Claro has activated its first mobile lines in Costa Rica. Claro has also opened its first mobile shops at six local shopping centres located in Heredia, Alajuela, Escazu and Tres Rios (La Union), Inside Costa Rica reports, citing Ricardo Taylor, head of Claro's operations in Costa Rica. Claro's network currently covers the Greater Metropolitan Area, and will be gradually expanded across the country.
Source: TelecomPaper
Despite having slightly over 600,000 inhabitants, Montenegro has decided to call a tender for a fourth mobile telephony operator. The tender was announced by Montenegro's Agency for Electronic Communications which said it expects Arab, Chinese, Austrian and British companies to participate in the tender. Bids can be submitted until 15 December. Offers will be evaluated based on the financial bid (70 points), the technical solution and plan for network implementation (20 points), and the contribution to market competition (10 points). Spectrum in the 900, 1800 and 2100 MHz bands is available with the licence.
Source: TelecomPaper

Monday, November 07, 2011
The Nigerian Communications Commission (NCC) has threatened to fine the country’s three largest mobile operators by subscribers – MTN Nigeria, Globacom and Airtel Nigeria – if they fail to improve the quality of their services by the end of November, local newspaper This Day reports. Following an independent monitoring exercise carried out by the NCC across the country, the regulator determined that the trio failed to measure up to key performance indicators, including call setup success rate and call completion rate.
The NCC has subsequently given the three GSM operators a 30-day deadline, effective 1 November 2011, to improve their service quality. If they fail to do so, the cellcos face a fine of NGN5 million (USD31,000) and an additional penalty of NGN500,000 per day if the provision of poor quality services persists. In addition, any of the three operators that fail to meet the targets from 30 November 2011 will be barred from the further sale of SIM cards or addition of any new subscribers to its network.
Source: TeleGeography

Friday, October 21, 2011
Industry sources claim that owing to rapid technology upgradation and the increase in the number of smartphone users, British consumers are likely to spend as much as $30.5 billion by 2021 on purchases through their mobile handsets. As per reports, the mobile purchases currently account for $1.8 billion, with almost $417 million comprising of mobile sales from the food and groceries category.
Sources claim that mobile commerce is expected to grow by 55 percent over the next five years. Innovations such as Near Field Communications (NFC) and faster mobile data transmission play an important role in the success of mobile commerce, by offering users a more secure and convenient way to pay for goods and services. In order to better provide mobile payment services to their customers, network operators O2, Everything Everywhere and Vodafone joined forces to offer users a single system of paying for goods and services via mobile phones.
Source: Wireless Federation
US mobile operators have agreed new guidelines to send customers free alerts before and after they exceed their monthly limits on voice, data and texts. Customers will also get alerts on roaming charges when they travel abroad. The alerts will apply automatically unless subscribers opt out. The measures were agreed by the industry group CTIA and the FCC, as part of the CTIA 'Consumer Code for Wireless Service'. Operators will need to provide two out of the four alerts by 17 October 2012 and all four by 17 April 2013. As a result of the agreement, the FCC has agreed to suspend its regulatory proposal for making the alerts mandatory.
Source: TelecomPaper

Monday, October 17, 2011
For the first time, the semi-annual survey conducted by the USA wireless industry trade association, the CTIA shows the number of wireless subscriber connections (327.6 million) has surpassed the population (315.5 million) in the United States and its territories (Puerto Rico, Guam and the U.S. Virgin Islands), putting wireless penetration rate in the USA at 103.9 percent.
The survey -- which tracks US wireless trends including subscribership, usage, revenue and investment from January 2011 to June 2011 -- also showed a 111% increase in wireless data traffic.
From June 2010-June 2011, the annual capital investment increased by 28 percent to $27.5 billion. Since 2001, wireless companies have reported a cumulative total investment of $223 billion. These figures do not include the billions CTIA members paid to the U.S. government for spectrum.
Wireless annual service revenue was $164.6 billion in the 12 months ending June 2011, up 6 percent from the same period in 2010.
"Clearly, we're using wireless more every day, and the consensus of experts is that demand will continue to skyrocket by more than 50 times within the next five years. These are the reasons why our members need more spectrum," said Steve Largent, President and CEO of CTIA. "By making underutilized or unused spectrum available for auction, carriers will continue to invest billions of dollars in their infrastructure, generate hundreds of billions of dollars in benefit to our economy and create up to a half a million new jobs while ensuring the U.S. maintains its position as the world's wireless leader."
The January 2011-June 2011 wireless survey results are:
- Wireless subscriber connections: 327.6 million; mid-year 2010: 300.5 million (9% increase).
- Wireless network data traffic: 341.2 billion megabytes; mid-year 2010: 161.5 billion megabytes (111% increase).
- Average local monthly wireless bill (includes voice and data service): $47.23; mid-year 2010: $47.47 (less than 1 percent decrease).
- Number of active smartphones and wireless-enabled PDAs: 95.8 million; mid-year 2010: 61.2 million (57% increase).
- Number of active data-capable devices: 278.3 million; mid-year 2010: 264.5 million (5% increase).
- Wireless-enabled tablets, laptops and modems: 15.2 million; mid-year 2010: 12.9 million (17% increase).
- Minutes of Use (MOU): 1.148 trillion; mid-year 2010: 1.138 trillion (1 % increase).
- SMS sent and received: 1.138 trillion; mid-year 2010: 982.9 billion (16 % increase).
- MMS sent and received: 28.2 billion; mid-year 2010: 32.1 billion.
Source: Cellular News

Tuesday, July 26, 2011
South Korea could gain a fourth mobile network operator, if an application by the Korea Federation of Small and Medium Businesses (Kbiz) is accepted by the regulator.
The consortium operating the WiBro based mobile network will be formed by Kbiz and 900 of its SME members. An investment by a technology partner, probably Samsung is also expected.
"We decided to enter the mobile phone industry because we figured this could be a new growth engine for small and midsized IT companies," a Kbiz official told the JoongAng Daily. "The initial funding for investment will be less than 100 billion won ($94.3 million)." Kbiz said it will succeed in the mobile phone industry by offering subscription plans 20 to 30 percent cheaper than existing plans.
Although previous attempts to set up a fourth network were rejected, the government is putting pressure on the incumbent networks to lower their prices to help control inflation in the country. The offer of a new entrant on a promise of lowering prices may sway the regulator's opinion about granting the license.
Source: Cellular News

Thursday, July 14, 2011
A meeting of Government Ministers from the Gulf Cooperation Council (GCC) has agreed to work on cutting mobile roaming rates between their countries.
The GCC Ministers decided to adhere to the Ministerial resolution made at a meeting three years ago, which stated that the GCC countries will move the implementation of proposals from a working group for a 30% cut in roaming rates.
In a statement, the GCC Telecommunications Regulatory Authorities said that they will inform the operators immediately after the meeting to implement the resolution. The GCC is a political and economic union of the Arab states constituting the Arabian Peninsula, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates.
Source: Cellular News

Tuesday, June 28, 2011
In a new report, Fitch Ratings says that although overall mobile service revenue growth in Europe remains under pressure (-1.4% in the 12 months to March 2011), there are significant regional differences.
In northern Europe, mobile service revenue growth turned positive in 2010 and the 12 months to March 2011, led by a strong performance in the UK and Germany. In these two countries, revenue growth from non-voice services has more than offset voice revenue declines.
In southern Europe, the trend in service revenue declines is getting worse at -5.4% in the 12 months to March 2011. The economic weakness in southern Europe is dampening demand for mobile data services and exacerbating the decline in voice revenue from regulatory and competitive pressures.
Fitch expects voice revenue in southern Europe will remain under pressure, as effective voice pricing, especially in Spain, is higher than in northern Europe. Downward pressure is expected to continue as mobile termination rates, which are higher in southern Europe, are forced down towards northern European levels by regulation. Over the medium term, mobile data might not provide as large a boost to mobile revenue growth as some operators expect. There is a risk that mobile data might be partly used as a substitute for voice and SMS services. Fitch believes that the risk will increase over time as voice over IP becomes more of a threat with technology improvements and instant messaging and social networks could start to replace SMS more widely, not just in the youth segment.
Source: Cellular News
Mexican regulator Comision Federal de Telecomunicaciones (Cofetel) has reduced the interconnection rate charged by Telmex to rival operators to MXN 3.951 from MXN 11.55. Cofetel has also changed the legal nature of long distance service that Telmex provides to other competitors in rural areas with no investment from other fixed telephony competitors.
Cofetel has also cut the interconnection rate for this service by 94 percent to 4.53 peso cents per minute, from 75 peso cents. America Movil believes that such decisions are "arbitrary", "clearly unexplainable and deprive [its subsidiary Telmex] of its corresponding rights and assets. Telmex plans to carry out all the relevant legal defense actions. Additionally, related to the fixed-mobile interconnection rates that have been reduced, Telmex will apply the interconnection rates as established by Cofetel, until the legal proceedings of mobile service companies are not definitely resolved.
Source: TelecomPaper

Thursday, June 09, 2011
Angola’s vice minister for telecommunications, Aristides Safeca, has said that almost two million people in the country are accessing the internet on their mobile phones, reports AllAfrica. Safeca, speaking on the sidelines of the Angolan Forum on Telecommunications and Information Technologies, said that many of the mobile internet users – representing nearly 20% of the approximately ten million cellular phone customers in Angola – had eschewed available fixed line network services, and that the government is working towards improving the quality of service for fixed internet users.
Source: TeleGeography
Pakistan's Telecommunication Authority (PTA) says that it has ordered the blocking of 3.5 million SIM cards that had not been re-registered by their users with the mobile networks.
To cope with the order, the operators are being allowed to block accounts in batches of up to 875,000 SIM cards per week until they have blocked all the accounts that had not complied with an order to re-verify their ownership details with the networks.
Although identity is needed to buy a SIM card, the regulator ordered a re-verification process for all accounts after it said too many had wrong details or information that was out of date.The blocked SIM cards will however be able to make a call to a single number, 789 to verify the users details with the mobile networks and get their service restored.The 789 system is an automated real time verification system where a customer has to verify his details through NADRA's database by answering mandatory secret questions i.e. mother's name and place of birth so as to re-activate the SIM.
Users have one week from being blocked to re-verify their details, after which the SIM card will be completely disabled.
Source: Cellular News

Wednesday, April 13, 2011
The National Communications Authority (NCA) of Ghana says that around 85% of SIM cards in the country have now been registered with their respective network service provider. However, it went on the say that 2.5 million SIM cards were barred from making calls from the weekend and that those involved have until July to register them before their lines are completely disconnected.
Source: TeleGeography

Tuesday, March 01, 2011
Mobile operator Digicel saw its revenues increase by 32 percent year-on-year to USD 580 million in the third quarter ended 31 December 2010. EBITDA was up 32 year-on-year reaching a record USD 240 million. At end-December 2010, Digicel reached 11.5 million customers across the 30 worldwide markets where it currently operates. Digicel provides mobile communication services across the Caribbean, Central America and the Pacific. Digicel saw growth in all of its major markets, including El Salvador, Haiti, Jamaica, Papua New Guinea and Trinidad and Tobago, and data revenues have doubled year on year, the company said.

Friday, February 11, 2011
The auction for a third mobile network operating licence in Syria will begin in April with a starting bid of EUR90 million (USD122.2 million), according to the Deputy Minister of Telecommunications, Mohammad Al-Jallali, as quoted by Syria Report. According to TeleGeography’s GlobalComms Database, at the end of last year the Syrian authorities set 12 April 2011 as date to auction the country’s third mobile licence. At the time Imad Sabouni, the Syrian communications and technology minister, added that to facilitate the process an independent regulator would be set up ahead of the auction.
However, a separate report suggested that the five firms pre-qualified to bid for the licence – Turkcell, France Telecom, Saudi Telecom Company, Etisalat and Qtel – have all reacted strongly to the Syrian government’s call that they provide revenue projections for their prospective businesses there.
In a meeting in Damascus in 4Q10, Syrian telecom officials came under scrutiny concerning ‘sections in the tender where investors see risk, and vagueness about certain clauses.’ In particular, bidders are concerned that the government regulate roaming agreements with the country’s incumbent cellcos MTN Syria and SyriaTel, so the new operator would not face a disadvantage. Objections were also raised concerning the state’s call that bidders submit a business plan with revenue projection – even though the award is being decided through an auction. The licence tender requires the winning bidder to give 25% of its annual mobile revenue to the government, and stipulates that Syria's state telecoms company STE will hold a 20% stake in the new mobile operator.
Source: TeleGeography
State-owned broadband provider Libya Telecom & Technology (LTT) has confirmed that it has launched Libya’s third mobile phone network, under the brand name LibyaPhone Mobile. Although no precise rollout details have been confirmed by the operator, it claims that its network has capacity for around 100,000 customers during the first phase of its operations. Further, LibyaPhone Mobile has pledged to extend coverage to areas under-served by fellow state-owned cellcos Libyana and Al Madar Telecomm Company. LTT claims that LibyaPhone Mobile will offer both 2G and 3G connectivity.
Although speculation regarding the launch of a third mobile phone operator in Libya has been rife for some time, in July 2010 it was confirmed that UAE’s Etisalat and Turkcell of Turkey had both been overlooked for a new LYD1 billion (USD825 million) concession. The General Telecommunication Authority (GTA) had previously launched an international tender for a combined fixed and mobile licence in February 2009, although its final decision was severely delayed, and no clear reasons were given for the lack of progress, merely that the international telcos were ‘unsuitable’.
According to TeleGeography, state-owned Libya Telecom & Technology (LTT) is the country's dominant ISP and also acts as a moderator for the internet sector. The operator launched a commercial WiMAX network – operating in the 2.5GHz band – under the ‘LibyaMax’ banner in February 2009. Services have subsequently been expanded to over 25 locations, predominantly along the coast, covering around 65% of the population.
Source: TeleGeography

Wednesday, February 02, 2011
According to figures published by Ghana’s telecoms regulator, the National Communications Authority (NCA), fixed and mobile penetration in the country reached 75.4% at the end of last year, up from around 71% at the start of 2010. The watchdog’s figures show that the primary driver of growth is mobile usage: the cellular penetration rate stood at 74.2% at the same date, with more than 17.436 million registered SIM cards. Mobile growth in the second half of last year came despite a compulsory SIM registration scheme, which entered into effect on 1 July, and which was expected to dampen growth for the year, compared with 2009. The scheme is also expected to have pruned out a number of inactive and/or unregistered mobile users.
At the end of last year the NCA’s figures show that MTN Ghana led the mobile segment with 8.721 million SIMs, ahead of Tigo with 3.999 million (although TeleGeography estimates that around 400,000 of these are inactive), and third-placed Vodafone (Ghana) with 2.722 million. Of the three other licensed cellcos, Airtel, which has recently been rebranded from Zain, had 1.754 million subscribers, Expresso (formerly Kasapa) had 239,815 and Glo Mobile is yet to launch operations. Meanwhile, the two companies offering landline or fixed network services noted a significant drop in customers last year. Vodafone (formerly Ghana Telecom) reported 267,033 main lines in service at the end of 2010, down from around 284,000 at the start of the year, while Airtel had 10,864 lines, up around 8,000 year-on-year.
Source: TeleGeography

Friday, January 14, 2011
Movitel, which was recently granted the third mobile operator license in Mozambique has announced that it plans to invest up to US$465 million in its network over the next five years. Of the total investment, some US$120 million will be spent in the first year to get the network launched.
Movitel is a consortium made up of Vietnamese company Viettel Telecom (70%) and Mozambique's SPI (30%), a company that is linked to the government.
Although Movitel was not the highest bidder for the license, when it offered US$28 million, the regulator said that it came highest in the technical assessment. The license was granted last November.
According to figures from the Mobile World analysts, the country ended June 2010 with around 6.77 million subscribers, representing a population penetration level of 32.7%. mCel is the dominant operator, with a market share of 65% - compared to 35% for rival, Vodacom.
Plans by the government to sell a small stake in Moçambique Celular (mCel) have been discussed in the past, but no progress has been made so far.
Source: Cellular News

Thursday, January 13, 2011
According to Armenia’s Minister of Transport and Communication, Manuk Vardanyan, the country was home to more than 2.77 million mobile users at the end of 2010, a cellular penetration rate of 86%. Cellular services are provided by the country’s three incumbent operators – ArmenTel, K-Telecom (VivaCell-MTS) and Orange Armenia – and have been bolstered in recent years by the introduction of 3G, he said. The minister added that 4G is currently being introduced throughout the country, and TeleGeography’s GlobalComms Database notes that only last month, VivaCell-MTS launched its LTE network on a ‘test-commercial basis’. It plans a full commercial launch in February this year starting in Yerevan before expanding coverage to Armenia’s other regions. VivaCell-MTS paid AMD990 million (USD2.7 million) for a 4G concession in November 2010. Meanwhile, fellow operator Armentel is said to be in discussions with the Public Services Regulatory Commission of Armenia as it seeks to secure a 4G concession.
In a related story, Orange Armenia has revealed that its mobile subscriber base reached 500,000 at the end of last year. ‘The year of 2010 was important for the company, which launched full-fledged operations throughout Armenia,’ said Orange Armenia CEO Bruno Duthoit. ‘This year marked a lot of innovations, new offers, extension of the coverage, construction of the customer base and investments,’ he added. According to TeleGeography’s GlobalComms Database the cellco, which is owned by France Telecom, had 45,000 mobile broadband customers at the end of September 2010, and its 3G network provided access to 93% of the population. In December 2010 it upgraded its national network with High Speed Packet Access (HSPA) and high definition (HD) voice services, employing the services of Nokia Siemens Networks (NSN) to carry out the modernisation of the core and access network which will enable Orange to provide high quality voice calls and data speeds of up to 14.4Mbps in main cities.
Source: TeleGeography
Due to low penetration rates, an expanding economy, deploying 3G networks, and declining smartphone prices, mobile data revenue is expected to triple over the next five years in Peru, according to a new report from Pyramid Research.
The mobile market will be the main source of revenue growth and Peru's principal revenue generator throughout the forecast period. Pyramid expects mobile revenue to expand at a CAGR of 6.6 percent over the next five years, going from generating $2.2 billion in 2010 to $3.1 billion by 2015, indicates Juliana Gomez, Analyst at Pyramid Research. "Mobile data, driven by 3G deployments and higher adoption of enhanced data services, will experience a revenue increase from $355 million in 2010 to $1.07 billion in 2015," she adds.
Over the forecast period Telefonica will remain the market leader; however, the merger of America Movil-Claro and Telmex Peru this year will intensify competition. "Telmex will complement its multiplay packages with mobile services, and both companies will invest to grow their data business, particularly mobile Internet," says Gomez. In addition, America Movil's Claro continues to expand its 3G network and has gained market share by leveraging data services.
The Peruvian market has shifted to GSM as a result of Telefonica's decision to migrate from CDMA to GSM and Claro's adoption of this standard in 2006. "After launching a 3G network (UMTS/HSPA) in 2008 Claro continues the expansion of its 3G network throughout the country to further support mobile Internet services. Movistar and Nextel have followed suit launching 3G networks," she says. Pyramid expects 3G technologies and 4G technologies to represent 54 percent and 7 percent, respectively, of total mobile subscribers in 2015.
Source: Cellular News
The Egyptian ministry of telecoms has said the number of mobile subscribers in the country rose 23.6% to 65.5 million in October 2010, compared to the same period last year, Zawya Dow Jones has reported. Subscribers for Vodafone Egypt reached 29.4 million for the period, while subscribers for MobiNil reached 28.6 million and Etisalat Misr reached 7.5 million subscribers, the ministry said.
Source: Ameinfo.com
Iraqi mobile operator Asiacell Communications, a consortium comprising Asiacell Iraq (30%), Qatar Telecom (Qtel, 30%) and investment group Merchant Bridge (40%), has signed network expansion agreements with Nokia Siemens Networks (NSN) and Ericsson, as it looks to expand its service footprint in the country. According to the cellco’s chief technical and IT officer, Patson Anius, the supply contracts will allow the operator to introduce ‘advanced services’ tailored to the domestic market. ‘Next year, we will be further expanding our network coverage to include small villages and residential communities in remote areas. We look forward to breaking our own GSM deployment record in Iraq next year,’ he said.
TeleGeography’s GlobalComms Database writes that Asiacell is one of three cellcos licensed to provide national mobile services, having been awarded its concession in August 2007 at a cost of USD1.25 billion. In 2009 it deployed 1,490 base transceiver stations (BTSs) on its network, thanks to the build-out of 950 new communication towers, and improved the service capabilities of 450 other cell sites. At the end of September 2010 Asiacell had 7.917 million mobile subscribers, placing it second in the market with a share of 34.8%. It competes with Zain Iraq, Korek Telecom and SanaTel.
Source: TeleGeography
Vietnam saw the number of new phone subscribers rise by 35 percent year-on-year in 2010 to 44.5 million. The total number of fixed and mobile subscribers in Vietnam rose to 170 million, Viet Nam News writes citing figures from the General Statistic Office. The total number of subscribers included 16.4 million fixed telephones, a rise of 5.1 percent on 2009, and 154 million mobile subscribers, an increase of 39.8 percent. VNPT had 88.9 million subscribers at end-December, up 25.3 percent, which includes 11.7 million fixed-line customers and 77.2 million mobile subscribers. Furthermore, there were 3.77 million internet subscribers in Vietnam, up 27.4 percent. Of the total, VNPT had 2.62 million internet subscribers, up 21.8 percent.

Tuesday, December 14, 2010
The Solomon Islands has confirmed previously rumoured plans to offer the country's third mobile license, just a few months after the country's second network, B-Mobile launched its services.Communications Commissioner, Nick Williams, made the announcement in Honiara this morning, noting that the licence will include an option to offer 3G services.
Mr Williams says he hopes to be able to award the licence by March next year and to see the operator begin its service within 6 months.The incumbent operator had blocked the launch of the country's second mobile network, B-Mobile for nearly ten months after its license was originally granted.
When the second license was tendered in 2009, Digicel applied for a license, but was rebuffed. Digicel had actually been granted a license in 2006, but Solomon Telekom successfully sued to block the network launch pending a review of its monopoly status.
Source: Cellular News
Osiptel, the Peruvian telecoms regulator, has warned that as many as a million mobile users face being cut off, having failed to register their details with their mobile network operators. In September this year Osiptel said registration of pre-paid mobile subscriptions would be made mandatory and the process would have to be completed by the beginning of March 2011.
Source: TeleGeography
The French telecoms regulator Arcep has recommended that mobile phone contracts be shortened from the 24-month tie-ins commonly offered, to allow end users to shop around for better deals. In a public consultation document setting down 30 key recommendations to improve transparency and make the market more competitive, Arcep is calling on cellcos to be required to offer contracts of either twelve or six months. Two-year contracts, the legal maximum length allowed in the country since 2008, currently offer the most competitive tariff plans, it noted. However, Arcep is concerned that under existing rules customers are locked into long-term deals often to the detriment of competition and often in a way that makes it difficult for users to switch provider. In another of its recommendations, Arcep is calling on domestic operators to make it clear how much of their monthly rental fee is set aside to repay the cost of their handset and what proportion is actually set aside for calls and other services. The watchdog is also concerned that offers such as free handset upgrades and other loyalty bonuses, effectively penalise people who wish to keep their existing phone.
Earlier this year, the three main network operators – Orange France, SFR and Bouygues Telecom – signed up to a charter designed to simplify end-user tariffs and allow customers to ‘unlock’ their phones free of charge to use a rival’s SIM card. The proposals currently being put forward by Arcep make no mention of pre-paid tariff plans – some of which include a valid period of as little as four days.
Source: TeleGeography
While mobile and broadband prices continue to fall, the increase in revenues compensated for the price drop, providing 2.5 per cent growth in one year. The large increase in mobile data traffic provided most of the growth, according to the Norwegian Post and Telecommunications Authority's (NPT) ecom statistics for the first half of 2010."This shows change and continued growth in a mature ecom market. Customers' usage patterns are clearly changing from only voice and messages to increased data use, particularly via mobile services," says NPT Director General Willy Jensen.
Decline in SMS messages
For the first time the statistics show a decrease in the number of text messages (SMS) sent. In all, mobile customers sent more than 4.2 billion messages in the first half of 2010, which represents a decrease from 112 to 105 messages per person per month."Even though more than four billion messages is a lot, this means 82 million fewer SMS messages than in the first half of 2009. The decrease represents about NOK 50 million," says Jensen.It is difficult to find any specific reasons for the decline in the number of SMS messages."It is most likely connected with new forms of communication and social media such as Twitter and Facebook," says Jensen.
Fixed telephony drops
The number of fixed-line subscriptions fell by nearly eight per cent the last year. The decline applies to both traditional fixed-line subscriptions (PSTN and ISDN) and VoIP subscriptions. Both calls and revenues are falling."The numbers clearly show that fixed telephony calls are falling more than the number of subscriptions. This means that the fixed-line telephone is used less than before," says Jensen.On average, a residential fixed telephony customer talked 1,500 minutes the first half of 2010, against 1,600 minutes the first half of 2009.
Fibre is increasing
Data traffic over fibre and cable TV continues to increase, and there are now over 230,000 subscribers who have an Internet connection via fibre."The increase in fibre connections largely compensates for the decline in "DSL". Here, the number is now under 1 million. In all, the number of broadband subscribers grew by 5.1 per cent from the first half of 2009," Jensen says.
Source: Cellular News

Thursday, November 11, 2010
South Africa based MTN says that it ended September with 134.47 million subscribers across its international markets. This is a 4% increase for the quarter from 129.21 million subscribers recorded at 30 June 2010.
The South and East African region, which contributes 22% to the group's subscriber base, increased its subscribers by 4.9% to 30.1 million for the quarter mainly driven by growth in South Africa. South Africa which contributes 59% to the region's subscribers increased its base by, 3.9% to 17.77 million subscribers for the quarter ended 30 September 2010. This was driven by continued growth in the prepaid segment which added 616,000 subscribers.
Uganda increased its base by 5% to 6.22 million for the quarter as competition continued to intensify. The West and Central African region contributes 46% to the group's subscribers and increased its subscribers by 3.4% to 61.38 million. Nigeria, which contributes 60% to the region's subscribers, recorded a 5.1% increase in its subscriber base to 36.84 million.
Click here to see full article
|
As anticipated, Ghana subscriber numbers declined from 8.72 million at the end of June 2010 to 8.46 million following the implementation of SIM registration on 1 July 2010. The impact of the new requirements initially lowered gross connections resulting in net negative subscriber growth in July and August which started to normalize in September 2010. Cameroon and Cote d'Ivoire increased their subscriber bases by 4% and 3.1% to 4.68 million and 5 million, respectively as competitive and regulatory challenges persist.
The Middle East and North African region contributes 32% the group subscribers and increased its subscribers by 4.1% to 43 million.
The growth within the MENA region was largely due to the Iranian operation, which contributes 66% to the region's subscribers. MTN Irancell increased its subscribers by 5.6% to 28.49 million due to attractive value propositions within the Ramadan period. Syria increased its subscribers by 6.8% to 4.72 million due to increased brand awareness.
Average revenue per a user ("ARPU") remained relatively stable in local currency when compared to June 2010. MTN South Africa's blended ARPU remained stable at R152 compared to 30 June 2010. Prepaid ARPU continued to show an upward trend although this was offset by the continued decline in postpaid ARPU. Nigeria and Ghana's ARPU remained relatively stable in both USD and local currency. Notwithstanding high growth rates and seasonal trends, Iran's ARPU continued to remain relatively stable at USD8.00 as aggressive network rollout benefits are felt.
|
Source:
Cellular News
Nepalese teleco Ncell/Spice Nepal, majority owned by Nordic telecoms firm TeliaSonera, has launched the country’s first 3G services at the base camp of Mount Everest, reports Reuters. Currently, the service is primarily targeted at the tens of thousands of climbers and trekkers who visit the mountainous region in the Solukhumbu district every year, and who have previously been dependant on expensive satellite phones for their communication needs. However, Ncell said TeliaSonera would spend over USD100 million next year to expand mobile coverage to around 90% of the population. Spice Nepal previously offered services under the Mero Mobile banner, but changed its brand name to Ncell in March this year.
Source: TeleGeography
The Solomon Island's National Telecommunications Commissioner Nick Williams has announced that the Oceanic sovereign state plans to offer a third mobile licence before the end of 2010. In a speech given at the Australian Solomon Islands Business Forum in Brisbane, Mr Williams said that the regulator intends to open the market up to a new operator to join Solomon Telekom - which enjoyed a monopoly on the Islands until the passing of the Telecommunications Act 2009 – and bemobile. In December 2009 bemobile was awarded a second licence, and went on to launch its commercial services last month.
During the forum in Brisbane, Williams said from 1 April 2011 there would be a full liberalisation of the telecoms market. He also highlighted the need for fully-fledged internet service provision in the country. Williams noted that there is a clear demand for internet connectivity, but thus far the supply has been poor, in terms of both availability and speed. He suggested: ‘This is a clear opportunity for investors, and we would welcome them’. Williams also claimed that a project is underway to bring a fibre-optic submarine cable connection to the Solomon Islands.
Source: TeleGeography

Wednesday, October 27, 2010
Hungary’s national regulator the National Media and Telecommunications Authority (NMHH) says the country was home to a total of 11.833 million registered mobile SIMs at the end of September. The three incumbent cellcos – T-Mobile, Vodafone and Telenor (formerly Pannon) – collectively added a net 25,000 new users to boost cellular penetration to 118.3%, compared to 118.0% a month earlier and 117.7% at the end of 2009. In terms of ‘active’ users, the NMHH reported a 22,000 monthly net gain to 10.855 million, compared to the 10.840 million reported at 30 June 2010. Of these, T-Mobile boasted a market share of 44.77% up from 44.68% three months earlier, Telenor’s share slipped to 32.68% from 32.89% and Vodafone had 22.55% (22.43%).
In a separate announcement, the NMHH says the country ended August 2010 with 1.299 million digital TV subscribers, or 19,000 more than a month earlier. At that date the number of people connected via either digital cable or IPTV rose to 491,000 from 481,000, while those watching satellite services went up to 808,000 from 798,000. In terms of market share for digital services, UPC retained its top spot with 30.2% (down from 30.4% a month earlier), Magyar Telekom boosted its share from 24.8% to 25.0% and DIGI increased its share from 24.4% to 24.7%.
Source: TeleGeography
The Minister of Communications in Fiji has extended for a second time the deadline for registration of all telephones in the country. Fiji Times Online says the new deadline date for registration is set at 8 November 2010. It is understood that any service provider failing to cancel a telephone line (fixed or mobile) which has not been registered under the government’s Compulsory Registration of Customers for Telephone Services Decree (June 2010), could be found guilty and fined FJD200,000 (USD109,507).
Telecom Fiji Limited (TFL), which to date has achieved a figure of 93% for customer registration, has welcomed the extension and notes a number of practical constraints, such as financing, resources and equipment that have stopped it recording and registering all phone users. Meanwhile Digicel Fiji says it faces logistical challenges to reach some rural and outer areas, and Vodafone Fiji says it needs to register all its subscribers - or around 760,000 users.
Source: TeleGeography
The total number of mobile phone subscribers in Bangladesh reached 65.14 million at the end of September 2010, according to figures from the Bangladesh Telecommunication Regulatory Commission (BTRC), up from 50 million a year earlier. Telenor-backed GSM operator GrameenPhone led the field with 28.65 million subscribers at end-September, up from 26.46 million at the end of the previous quarter, followed by Orascom unit Banglalink with 18.11 million, up from 16.10 million at end-June, while the regulator reported that Axiata Bangladesh (Robi) was in third place with 11.71 million subscribers, although the Malaysian-owned company is likely to disagree with the figure, as it reported 14.55 million subscribers at end-June 2010 (up from 9.37 million in a year). Indian group Bharti Airtel’s subsidiary Warid Telecom Bangladesh (soon to be rebranded as Airtel Bangla) reached 3.58 million active mobile SIMs by the end of September 2010, the BTRC said, up from 3.17 million three months earlier, whilst CDMA operator Citycell's subscriber base slipped to 1.91 million from 1.99 million over the same timeframe, and state-backed Teletalk's total subscriptions grew to 1.18 million from 1.16 million.
Source: TeleGeography
Telkom South Africa has launched the country's fourth mobile operator, under the name 8ta. 8ta has constructed 800 base stations across the country, and plans to construct a further 3,200 over time to improve coverage and connectivity. Whilst 8ta is still growing its network, the operator will have full national coverage, thanks to a roaming agreement with MTN. The HSPA network offers downlink speeds up to 7.2Mbps and can be upgraded to 21Mbps. Telkom said the hardware can also be upgraded to LTE and offers a fully IP architecture from base station to core. 8ta will offer calls to fixed lines at ZAR 0.65 per minute, independent of the time of the call, as well as a flat rate of ZAR 2.50 per minute for calls to over 100 international destinations. The service will offer prepaid customers free talk time to any network every time they receive calls from a mobile phone, equal to 1 free second of airtime for every 3 seconds of call received.

Tuesday, October 12, 2010
India’s Department of Telecommunications (DoT) is reportedly sitting on more than 100 applications for 2G spectrum, the Hindu Business Line reports. With the regulator having held up the allocation of new frequencies over the last two years, it is understood that the highest number of applications in any one circle is for Delhi, where there are 17 outstanding requests, while Bihar places second with a total of nine requests. India’s largest mobile operator by subscribers, Bharti Airtel, is effectively at the front of the queue for new spectrum, with the report claiming that it had been the first to request new frequencies in seven of the country’s telecoms circles, with Vodafone heading the line in five circles.
India’s armed forces are expected to release around 10MHz of spectrum in most circles within the next few months, which could allow for up to four or five operators per circle receiving their requested frequencies, with most cellcos having asked for between 1MHz and 2.2MHz; Delhi, however, is likely to only see two operators gain more spectrum, as both of the operators at the front of the queue in those circles are seeking 4.4MHz apiece.
Such allocation, though, will depend on whether the government alters the policy governing allocation of spectrum; at present the DoT offers additional spectrum on a first-come first-served basis. The Ministry of Finance though has said it wants this to change, with it favouring auctions for new frequencies, and until the ongoing debate over the matter is concluded it appears unlikely that any player will gain access to new 2G spectrum.
Source: TeleGeography
Kazakhstani national operator Kazakhtelecom (KT) has announced that it has covered 70% of the rural Aktobe region with its wireless in the local loop (WiLL) CDMA-450 network. In recent years, KT has sought to overcome Kazakhstan’s vast landmass and diverse geography by using a variety of technologies, including VSAT and CDMA-450 wireless in the local loop (WiLL). The Aktobe region has a population density of just 2.5 people per square kilometre. Almost 50 CDMA 450MHz base stations have reportedly been launched in the region under the project to date. According to TeleGeography ’s GlobalComms Database, KT plans to deploy a total of 900 base transceiver stations (BTSs) by end-2013.
Source: TeleGeography

Wednesday, October 06, 2010
While the number of mobile network operators has grown over the past six years, mobile services continue to be dominated by the largest operators, posing significant long-term challenges to new competitors in their efforts to build market share and sustainable revenue streams, according to a new report from Pyramid Research.
The number of mobile network operators (MNOs) per country has continued to increase from an average 4.0 operators per country in 2004 to 4.9 this year, leading to increased competition at the local level and smaller market share for the top players. When analyzing emerging and developed markets separately, one can discern two separate and distinct trends: In developed regions, the number of operators stayed relatively flat, whereas in emerging markets the number of operators per country increased from an average of 4.0 in 2004 to 5.4 today, notes Emily Smith, Research Associate at Pyramid.
"As mobile markets mature, Pyramid Research has found that the market share for the top operators converges toward an equilibrium point that is roughly the same across all global regions," Smith says. "While the average market share has hardly changed in developed regions, in emerging regions the market share for top operators has decreased by 10 percentage points in the past seven years." "Due to consumers' changing appetite for mobile services over the course of the recent global financial crisis, the speed at which the top operators lost share increased, although now that the global economy is moving into a recovery stage, top operators can expect to experience less share shrinkage than in recent years," Smith adds.
Source: Cellular News
Shipments of mobile handsets in India grew by 6.3% quarter-on-quarter (2Q 2010 over 1Q 2010) to touch an all time high of 38.63 million units in a single quarter, reports IDC. In a significant new development, the study found that Dual and Triple-SIM card slot phones have grown to touch as much as 38.5% of the total India mobile phone shipments, from less than 1% in 2Q 2009 (April-June 2009 quarter).
According to Mr. Anirban Banerjee, Associate Vice President-Research, IDC India, "In the recent quarters several new players successfully launched their own devices at significantly lower Average Selling Values (ASVs) in the price sensitive India market. Such handsets found ready acceptance amongst first time buyers, especially from small towns and villages."

Click here to see full article
|
This influx of new brands led to a spurt in overall market and saw 'emerging vendors' corner as much as 33.2% of total India mobile handset shipments in 2Q 2010. The Finnish handset maker Nokia retained its No.1 spot with a market share of 36.3% in terms of units shipped. The Korean electronic giant Samsung retained the No. 2 position, while Chinese brand G'Five emerged as the No. 3 player.
According to Naveen Mishra, Lead Telecoms Analyst, IDC India, "The India mobile market saw a unique trend of multi SIM phones capturing 38.5 per cent of the market. This could be attributed to several new service providers responding with highly competitive tariff plans to a price sensitive mobile telephony user market.
The number of emerging vendors in India's burgeoning mobile handsets market grew to 35 in 2Q 2010 and they together garnered 33.2% of total shipments for the first time during the April-June 2010 quarter. This represented a manifold increase from five new vendors representing a 0.9% combined share of units shipped in the January-March 2008 quarter.
During the last 6 months (January-June 2010) the top five mobile handset vendors in India were Nokia, Samsung, G'Five, Micromax and Spice.
|
Source:
Cellular News

Thursday, September 23, 2010
The United Kingdom’s telecoms regulator, Ofcom, has revealed that it has called on broadband test company Epitiro to examine the download speeds of the country’s five mobile network operators’ mobile broadband services, ZDNet reports. Ofcom said that it had decided to instigate the research following increasing dissatisfaction of British subscribers related to the actual speeds they receive, as opposed to those that operators advertise.
‘Actual speeds delivered via mobile networks are typically well below the 'up to' speeds which are advertised ... Satisfaction levels with mobile broadband performance also seem significantly below satisfaction with other [broadband] services,’ Ofcom noted in a statement confirming the investigation. Epitiro will field-test mobile data services offered by O2 UK, Orange UK, T-Mobile UK, Vodafone UK and Hutchison 3G UK, measuring details including the availability and retention of networks and download times, with the test beginning this month and running through to January 2011.
Source: TeleGeography

Friday, September 03, 2010
Bahrain's Telecommunications Regulatory Authority (TRA) will disconnect at least 400,000 unregistered pre-paid mobile phone lines today after a deadline for registering SIM card owners’ details passed, the Bahrain Tribune reports. The TRA, along with the country's mobile operators, Batelco, Zain and Viva, had warned users that they must register personal details by midnight on 31 August or have their service cut off. ‘As per the warning of the TRA and with the due consent from Batelco, Zain and Viva, there will be no extension for the registration of the pre-paid mobile lines,’ an official at the Kingdom's watchdog confirmed to the Tribune. The registration programme was undertaken for security reasons, to prevent anonymously-owned phones being used in illegal activities.
Source: TeleGeography
Wireless subscribers in China must provide identification from today to purchase a new number, press agency AFP reports, citing local media. The new regulations also apply to foreigners and those wishing to purchase a pre-paid SIM card, the China Daily and Global Times reported, citing sources at the Ministry of Industry and Information Technology (MIIT). Those with existing mobile subscriptions will be asked to register with their carriers before 2013, or their subscriptions could be cancelled. Street newspaper stands will be banned from selling SIM cards until the owners are trained on how to register customers, the report added.
The new rules are part of the Chinese government's efforts to prevent spam, pornographic messages and rampant fraud over the country's vast mobile networks, MIIT spokesman Wang Lijian told the China Daily. China had 814 million mobile phone users at the end of July, MIIT officials told the press, with up to 320 million users not yet registered.
Source: TeleGeography

Tuesday, August 31, 2010
Costa Rica's telecommunications market offers opportunities with its new liberalization, opening the door for competition across all segments and boosting mobile penetration to 136 percent by 2015 with prepaid subscriptions, according to a new report from Pyramid Research.
Costa Rica is the last country in Latin America to liberalize its telecommunications industry. Now, the regulator in Costa Rica has been quite busy with the liberalization of fixed and mobile services taking place. "Costa Rica is auctioning three mobile licenses over the next few months, and the process is expected to be completed before year end," says Jose Magana, Senior Analyst at Pyramid Research. "New regulation includes number portability and infrastructure sharing."
Click here to see full article
|
"Mobile penetration of the population closed at 52 percent in 2009, one of the lowest rates in Latin America and not consistent with the income level of the population," says Magana. "We forecast that after liberalization, mobile penetration will advance to 136 percent by 2015 with prepaid subscriptions accounting for 79 percent of the total, and that mobile revenue will advance to $831 million by 2015 from $603 million in 2009, with gains coming mostly from data services, such as mobile broadband."
Due to the competitiveness of the new liberalized market and the attractiveness of mobile data services, 3G handsets will quickly gain share in the total base, even ahead of Costa Rica's Central American peers. By 2015, 40 percent of all handsets will be 3G. "The lack of subsidies in Costa Rica make replacement of handsets very expensive for subscribers, but we forecast that competition will boost the adoption of advanced handsets, particularly among the high-end segment," adds Magana. |
Source: Cellular News
With seven operators, the Vietnamese mobile market is one of the top five most competitive markets in this region. Vietnam's mobile connections grew 58% in 2009 and penetration reached 127%. However, recent operator comments suggests that 50% of these connections are inactive and as much 70% of the connections added in 2009 were multi-SIM users.
On the broadband front, the Vietnamese market has seen growth of over 60% in the past 4 years. A subscriber base of 2.1 million in 2008 gave the nation a household broadband penetration rate of 11.9&. The subscriber base is expected to grow at a Compound Annual Growth Rate (CAGR) of 15.22% from 2004 to 2014 and is forecasted to reach 4.9 million by the end of 2014. While, the household broadband penetration is projected to reach 24.9% by the same period. Consumer broadband revenues are expected to grow at a CAGR of 15.11% from 193 million in 2008 to 449 million in 2014.
Click here to see full article
|
Backing all these potential growth and positioning the nation as a forerunner amongst its regional counterparts is the Vietnamese Ministry of Information and Communications (MIC). The recent guidlines placed by the regulator clearly indicates the progress that the nation's telecommunications sector is posed to evolve into.
Of these guidelines, is the rise in foreign investor equity limit from 24.5%to 49%, permitting private telecoms infrastructure and lifting the foreign ownership cap. This move has sent clear signs to the international telecommunications community that the Vietnamese domestic market is eager to raise on par with its international counterparts.
Nitin Bhat, Partner at Frost & Sullivan, commented, "Prepaid still dominates Vietnam's market with 94.5% mobile connections. High multi-SIM usage and SIM churn has been encouraged by SIM usage bundling with users arbitrating promotional rates and service bundling. Data revenues do not appear to have gained the traction they have in other markets, possibly due to widespread voice credit bundling. The low penetration rate offer the opportunity for growth in internet access over affordable mobile devices and for wireless as it increasingly becomes the preferred mode of broadband access. Growth in this area would significantly increase data's contribution and importance to market revenues."
Nitin further added that Vietnamese operators will have to accelerate 3G traffic appropriately and should rely on Wi-Fi where possible to keep network costs under control. |
Source: Cellular News
The Syrian cabinet has approved plans for the licensing of a third mobile operator to compete with incumbent operators SyriaTel and MTN Syria which were awarded 15-year build-operate-transfer (BOT) contracts for the rollout and operation of Syria's first mobile networks back in early 2001. As well as allowing for the entry of a new licensee into the wireless market, the two existing operators will buy out their current BOT agreements and convert to conventional licence agreements. The new licence will be granted after a three-stage process including initial rehabilitation, investment and technical rehabilitation and then finally a financial auction.
CommsUpdate reported UAE telecoms operator Emirates Telecommunications Corporation (Etisalat) first expressed an interest in acquiring Syria’s third wireless licence in April last year, while Kuwait's Zain has also indicated its interest in investing in the country’s mobile market, either through an acquisition of an operator licence, or a stake in an existing operator. In 2009 Zain held talks to buy SyriaTel, but the discussions were suspended for reasons not entirely clear.
Following the news that a licence auction had been approved, Kuwaiti newspaper Al-Rai quoted sources as saying that 'Zain is waiting for Syria's government, which announced the opening of a bid for a third operating telecom ... to issue the terms and conditions required for applying and attaining the license.'
Source: TeleGeography

Friday, July 30, 2010
Mobile phone users under the age of 16 are extremely sophisticated, with deep brand experiences and preferences. This raises significant questions for network operators, handset manufacturers and service providers regarding how best to engage an increasingly important market segment.
You could be forgiven for a sense of déjà vu. After all, rising mobile phone use amongst children is not a new phenomenon. As long ago as 2004 the Guardian was reporting growth in ownership amongst under-10s, and media coverage concerning potential health concerns can be traced back even further. However, our ever-increasing reliance on, and immersion in, mobile phones and the digital services we use them to access, justify revisiting the topic.
Recent data from GfK reinforces just how prevalent mobile ownership amongst under-16s has become (2.5 million 12-15 year olds, almost 9 in 10, now have one). Furthermore, this is the age group cementing the shift in behaviour from passive entertainment, such as television, to more active digital and online activities. As such, it should come as no surprise that the value placed on their mobiles increases accordingly.
Click here to see full article
|
It would be easy to assume these younger consumers are neophytes, new to the category with few preconceptions. Not the case. While 12-15s may be the first to acknowledge the importance of the technology, many of them are the same children the Guardian was reporting on five or more years ago. Instead, as many as 85% of those acquiring a phone are already on (at least) their second handset, and already hold the assortment of brand perceptions that follow this prolonged involvement in the category.
As established users with a penchant for advanced features and functions (camera, music, and games usage are all high, alongside social networking, IM, and email), it comes as no surprise that entry-level handsets have limited appeal. While the majority (70%) of phones in this age group are being gifted, three-quarters (74%) of users were involved in the selection process, with medium and high-end handsets flourishing and above average spending. Unsurprisingly therefore, style and functionality will be key to handset manufacturers, for whom it will be necessary to attract the end-user as much as the purchaser.
The scenario facing operators is less clear. Selection of network and tariff, nominally a decision of less outward importance to younger consumers, remain primarily the domain of the purchaser (in contrast to handset, just 49% and 45% of 12-15 year olds influenced the choice of network/tariff respectively). How then, do operators approach these consumers? Given their focus on handset, clearly an appropriate and desirable range is a prerequisite. Beyond this however, high levels of gifting and relatively low interest in network/tariff imply it's the gifter, as much as the end-user, who needs to be won over.
Mary Robinson at GfK Telecoms Research Panels highlights the importance of the under-16 market for network operators:
"Recent GfK findings for contract phones show that 83% of adults replacing their mobile chose to remain on the same network as before. With such high levels of loyalty in the adult market, the product propositions and brand experiences of the under-16s become massively important. Ignore them at your peril."
Ultimately, when this generation hits adulthood and consumption becomes self-sustained, they will already be sophisticated mobile users consuming a range of services and content. Harnessing their demand will be a key revenue stream in the future mobile marketplace, and the brand preferences already developing will play a significant role.
For handset manufacturers, operators and service providers, the prize is a significant one.
|
Source:
Cellular News

Thursday, July 15, 2010
Pakistan’s second largest mobile network operator by subscribers, Telenor Pakistan, said it has completed the deployment of the country’s largest solar-powered network in Universal Service Fund (USF) assisted regions. The operator has revealed that of 50 solar cell sites constructed, 47 are within the USF assisted areas of Mirpur Khas and Bahawalpur, providing telecoms services to approximately 1.63 million people who previously had no access to service at all. The remaining three sites have been deployed in Islamabad and Kyber-Pukhtoonkhwa. The introduction of the eco-friendly technology forms part of Telenor Pakistan’s Green Energy Project, which aims to prevent the emission of on average 2.5 tonnes of carbon dioxide per year. Commenting on the completion of this element of the project, Kalid Shezhad, chief technology officer at Telenor Pakistan, noted: ‘We are delighted to have created the largest solar-powered cell network in the USF-assisted areas of Mirpur Khas and Bahawalpur. With the deployment of solar-powered cell sites our aim is to provide environment-friendly telecommunication services even in the remotest areas of Pakistan. By doing so we are reducing power demands on the national grid and also helping to reduce carbon emissions.’
Source: TeleGeography
The Communication Commission of Kenya (CCK) has announced that mobile phone subscribers will be required to register their details with operators by the end of July or risk having their Subscriber Identity Module (SIM) cards deactivated. Subscribers will now be obliged to give their full names, physical and postal addresses, dates of birth, and alternative means of contact when they purchase a new SIM card. Adults will have to show their identification cards, whilst minors will have to be accompanied by a guardian. The mandatory SIM card registration scheme is expected to record the personal details of some 20 million subscribers by 30 July. CCK Director General Charles Njoroge commented: ‘The process started last year and we have been working together as an industry. So far, between 50% and 60% of the subscribers have been registered’.
Safaricom and Zain have already registered a significant proportion of their customer base, courtesy of their money transfer services, M-Pesa and Zap, which require customers to register before they can access the services. Telkom Kenya said it had details of its data clients, whilst Essar Telecom said that it has the mechanisms in place to gather the needed information. However, the cellcos have all asked for additional time to complete the process. Zain Kenya Chief Executive Rene Meza stressed: ‘The process is complex and will require consumer education before all the subscribers buy the idea, so we might need a little more time’.
Source: TeleGeography
The already extended deadline to register SIM cards in Tanzania has been against extended for a further two weeks following representations from the mobile networks that they are still seeing customers coming into their stores to register their accounts.
Science, Technology and Communication minister Prof Peter Msolla announced the government's decision in Parliament last week just as the 30th June deadline was set to expire.
The Tanzania Communications Regulatory Authority (TCRA) had originally set a deadline of the end of last year, then extended it again to the end of June. After the new deadline, of the 15th July, any unregistered SIM card will be locked for up to 90 days unless it is registered. A locked SIM card can not be used to make or receive calls or use sms, but if it is registered within 90 days, it will be unlocked, and can then be used. Any locked SIM card not registered by 30th September 2010 will be permanently deleted.
Source: Cellullar News
Ghana yesterday implemented its controversial mobile SIM registration scheme. Under the National Communications Authority (NCA’s) new policy, no one can buy a SIM card without first providing personal details backed by an official national identity document. According to the industry watchdog, the SIM card registration will help curb crime and also help to control an unwanted rise in unsolicited text messages.
Source: TeleGeography

Tuesday, June 15, 2010
Jordan is the Arab World's most competitive cellular market, according to the Arab Advisors Group. Saudi Arabia came in second, followed by Palestine.
The Cellular Competition Intensity Index results for June 2010 revealed that Jordan tops the score -as the most competitive Arab market- with an 80.7% mark followed by Saudi Arabia (75.3%), Palestine (69.3%), Oman (67.1%), Egypt (65.7%), Morocco (64.9%), Iraq (63.4%), Tunisia (62.7%), Yemen (61.1%), Bahrain (59.9%), Algeria (59.5%), Sudan (59.4%), Mauritania (56.8%), Kuwait (49.8%), Qatar (46.4%), UAE (45.4%), Syria (38.0%), Libya (34.3%), and finally Lebanon (31.2%).
The 2010 index results revealed that eight countries ranked higher than their June 2009 index ranks, these are: Jordan, Saudi Arabia, Palestine, Oman, Tunisia, Yemen, Bahrain and Qatar. Meanwhile, a total of eight countries ranked lower compared to June 2009 index, namely: Iraq, Algeria, Sudan, Mauritania, Kuwait, UAE, Libya and Lebanon. The remaining three countries of Egypt, Morocco and Syria maintained their June 2009 ranks.
Click here to see full article
|
The Arab Advisors Group had devised the Cellular Competition Intensity Index to rate and properly assess the intensity level of competition in the Arab World's cellular markets. The index takes into account the number of operators, packages, and services available in each of the 19 countries covered by the Arab Advisors Group. Each category was assigned a certain weight according to its importance as an indicator of competition. The categories include the following: Number of licensed and expected operators in 2010; number of working operators; market share of largest operator; number of prepaid plans; number of postpaid plans; availability of corporate offers; availability of 3G services and the availability of ILD (International Long Distance) competition.
"In addition to having four cellular operators, Jordan has intense competition in the ILD segment and has the highest number of prepaid plans amounting to twenty four plans. Moreover, Jordan was the second highest (after Morocco) in terms of the number of postpaid plans which amounted to thirty seven." Mrs. Faten Bader, Arab Advisors Group senior research analyst commented. "Oman's cellular market received a score of 67.1% in the Cellular Competition Intensity Index. This pulled it up to the fourth rank compared to the fifteenth rank in June 2009. This was mainly due to the launch of MVNOs in Oman. By end of April 2010, the market hosted five operational MVNOs, in addition to the two mobile operators, Oman Mobile and Nawras. The overall score was boosted further due to scoring full marks in the availability of corporate offers, 3G services and ILD competition." Ms. Zeena Al Borgan, Arab Advisors Group senior research analyst added.
|
Source:
Cellular News

Friday, June 04, 2010
Nigeria-based Globalcom (Glo Mobile) has reportedly been issued with a mobile operator’s licence in Senegal. If confirmed, the concession, the fourth to be awarded in the West African country, will also allow Globacom to land its Glo 1 trans-Atlantic submarine cable in Senegal, with opportunities to extend the infrastructure to Mali. Local newspaper This Day quotes the Nigerian firm’s chairman Mike Adenuga Jr as saying that the licence would enable his company to offer ‘world class telecommunications services’ to the government and people of Senegal.
‘In line with our vision, Glo will continue to play a major role in stimulating a new era of prosperity in the sub-continent and build facilities that will offer Africa advanced telecoms services such as teleconferencing, distance learning, disaster recovery, telemedicine, on-line diagnosis and video conferencing during surgery and research,’ Globacom added in a statement. The Nigerian company also holds operating licences in Nigeria, Ghana, Benin Republic and Cote d'Ivoire, but as reported recently by CommsUpdate, has threatened to exit the Ghanaian market citing sabotage as the reason.
Source: TeleGeography

Wednesday, May 26, 2010
The Bolivian telecoms regulator, La Autoridad de Telecomunicaciones y Transportes (ATT), has said that it expects approximately 90% of the country’s mobile voice subscribers to have registered their mobile phone by 30 May, according to BNamericas. The watchdog, citing ATT technical chief Andres Zambrana, noted that as of 17 May 2010 87% of subscribers had registered their mobile numbers. Initially, having opened the registry database in November 2009, the cut-off date had been set as February 2010, but this was subsequently pushed back in order to allow mobile network operators to implement initiatives designed to focus on ensuring rural users had registered their details. Under the government’s plans, all those subscribers that have not provided their personal details by 1 June will have their service cut off, with the ATT claiming that the move will help curb the use of mobile phones in criminal activity.
Source: TeleGeography

Monday, May 03, 2010
Increased competition in New Zealand's mobile market has improved pricing in the local market, but voice call usage still remains low by international standards, concludes the annual report from New Zealand's Commerce Commission. As well as looking at developments in 2009, the report also assesses the progress seen since the 2006 amendments to the Telecommunications Act came into effect.
Click here to see full article
|
"The report shows that competition in all telecommunications markets has increased between 2006 and 2009. Consumer choice and service quality have improved while prices have fallen," said Dr Patterson, Telecommunications Commissioner. "However, despite increased competition in the New Zealand telecommunications sector, the market shares of incumbents remain high and markets remain concentrated when compared with other jurisdictions such as the United Kingdom and Australia."
"Alternative providers of broadband services on Telecom's network have increased their market share from 24 per cent to 37 per cent in the last three years. Over the same period, broadband uptake has doubled and New Zealand has improved its position when compared with 30 other OECD countries from 22 in 2006 to 18 by 2009. Uptake of broadband is now at or around the OECD average and broadband speed availability and quality have improved significantly," said Dr Patterson.
"In the mobile market the entrance of a new network operator, 2degrees, has had an immediate impact in terms of consumer choice and competitive offering. Although there is evidence that competition in the mobile market is increasing following the launch of 2degrees, mobile voice usage remains low by international standards. In addition, price and usage vary significantly depending on whether calls or text messages are sent to another subscriber on the same network or to a subscriber on a different mobile network. On the positive side, both Telecom and Vodafone have upgraded their networks for 3G capability, and a number of mobile virtual network operators have entered the market," said Dr Patterson.
"In the fixed line market, alternative providers of fixed line voice services have increased their market share in terms of connections from 8 per cent to 25 per cent over the three year period," said Dr Patterson.
|
Source:
Cellular News

Wednesday, April 14, 2010
Long anticipated tender for a third mobile network operator license has finally been issued by government of Mozambique. US$25 million has been set as the reserved price for the license, with the last date for submissions due by July 6th 2010. After winning the license, the operator can begin operating within 30 days of the license being granted.
Earlier it was announced by Portugal Telecom that it would bid for a 3rd license, which at the time was expected to be offered around the middle of last year.
Last year, the country had 6.55 million subscribers, representing a population penetration level of 36%. With a market share of 65%, mCel is the dominant operator followed by Vodacom having 35% of the market share. No progress has been made in the government plans to sell a small stake in Moçambique Celular (mCel) which have been discussed in the past.
Source: Wireless Federation.

Friday, March 12, 2010
Telefonica's research and development unit is currently developing a mobile phone that enables users to send SMS, as well as make and receive voice calls in areas without mobile network coverage. Mobile communication is made possible via an application installed on the mobile device. All mobile phone owners using this application form a network in which their phones would serve as signal repeaters, El Mundo reports. The connectivity application would establish direct wireless data connections between two mobile devices that are relatively close to each other. The devices would form a network in which two phones that are 100 meters away from each other could share data and voice calls without requiring coverage.
Source: TelecomPaper
Paraguay's mobile network operators achieved a 12% year-on-year rise in overall service revenues in 2009 to USD604 million, reports BNamericas quoting figures from the economy ministry. In 2008 mobile firms Claro, Tigo, Personal and Hola billed USD517 million, up 16.6% compared to 2007, according to previous reports.
Source: TeleGeography
Brazilian mobile operator TIM Brasil plans to extend its 3G mobile network coverage to around 60% of the population by 2012, BNamericas quotes the company’s chief executive Luca Luciani as saying. In an interview, the CEO went on to say he expects the country’s overall telecoms market to expand by more than 5% per annum, in revenue terms, over the three-year period.
According to TeleGeography’s GlobalComms Database, TIM Brasil is controlled by European telecoms operator Telecom Italia and ended 2009 with 41.1 million subscribers, up 12.9% from the end of 2008, and representing a market share of 23.6%. Total net additions in the fourth quarter came to 4.7 million lines, or 20.2% of total market net additions. Average revenue per user (ARPU) was BRL27.0 in 4Q09, a growth of 1.7% when compared to the previous quarter. The cellco’s GSM network covered 94% of the country’s urban population, serving around 2,958 cities, as at 31 December 2009. As for data coverage, TIM provides GPRS technology to 100% of its footprint, while 77% is covered through EDGE technology, it said. In addition, TIM’s 3G coverage included more than 57 cities at the end of 2009 – reaching 30% of the urban population in Brazil.
Source: TeleGeography
Moroccan operator Wana has launched its GSM mobile services under the name Inwi. The third mobile operator said its network covers three-quarters of the population. Wana, which already offers CDMA fixed wireless and mobile voice and internet services under the name Bayn, was awarded the GSM licence in early 2009. The new mobile services include a prepaid offering with per-second billing as well as four postpaid plans with free on-net calls and a range of corporate offers.
Inwi also offers daily and weekly unlimited SMS plans, BlackBerry services, prepaid and postpaid 3G mobile internet using a USB modem, a Windows Live Messenger service, roaming and a wide range of handsets from Nokia, Samsung, LG, Sony Ericsson and Motorola. The company will compete against incumbent Maroc Telecom and Meditel on the GSM market.
Source: TelecomPaper
Peru's Ministry of Transportation and Communications (MTC) plans to relaunch the project to attract a fourth mobile operator on the local market, reports El Comercio, citing vice-minister of communications Jorge Cuba. According to the government representative, the Agency for Promotion of Private Investment (ProInversion) and MTC have prepared a redefinition of a mobile licence in the 1900 MHz frequency band, also known as the C-band. The new licence will enable the entry of a fourth mobile operator on the local market, currently served by Claro, Movistar and Nextel. ProInversion plans to appoint an investment bank to find leading operators in Europe and Asia, so as to attract around six bidders for the process. The second option is to launch an open tender, which would allow the participation of any operator, including existing operators Movistar, Claro and Nextel. The government plans to launch the tender in March.

Friday, March 05, 2010
Bahrain's third mobile network launched commercial services yesterday as Saudi Telecom Company (STC) subsidiary Viva Bahrain opened its doors to customers. Trade Arabia News Service reports that Viva’s services are available across Bahrain, and include mobile broadband access at speeds of up to 21Mbps, packaged with unlimited downloads, whilst up to five people can enjoy wireless broadband at peak speeds of 7.2Mbps via a single router. For the next three months, Viva is offering free calls and SMS within its Bahraini network and free calls to STC numbers in Saudi Arabia. It is also offering up to 90% discounts on calls made to 18 popular international destinations. Viva’s post-paid handset bundles come with up to 200MB of inclusive data usage per month, whilst its 3G-enabled pre-paid SIM cards are available for BHD2 (USD5.3), with an additional offer of 24% more credit each time the SIM is recharged, the company announced.
STC has invested USD200 million in Bahrain to date and expects to spend ‘several hundred million’ dollars in the next few years. Viva Bahrain CEO Abdulrahman Al Omar commented on the launch: ‘We plan to compete in the Bahraini market by providing innovative services that meet the needs of the market and enrich the level of services, whether voice or data transmission or even high speed broadband.’
Source: TeleGeography

Tuesday, March 02, 2010
The oldest mobile operator in Azerbaijan, Bakcell, has announced that for the first time since its formation in 1994 it has achieved network coverage in all regions of the country, ABC.az reports. Bakcell, which according to TeleGeography’s GlobalComms Database operates across a nationwide GSM platform with GPRS and EDGE evolution, said that it had worked hard to improve its networks in the twelve months ended 31 December 2009, adding that: ‘As a result, coverage in every region of Azerbaijan has more than doubled.’ As reported by CommsUpdate on 15 October 2009 Bakcell has pledged to continue to develop its network in 2010.
Source: TeleGeography
Just over three-quarters (77%) of seniors in the UK have access to a mobile phone, but 49% still feel intimidated and hesitant of new technology, reports a survey carried out by Synovate on behalf of Doro. The survey of 2000 reveals that the use of mobile phones is continuing to grow amongst seniors. Seniors in the UK stated that they use their mobile phone mostly to make calls (73%) and secondly for text messages (37%).
"Many seniors experience difficulties when handling technical products due to problems relating to sight, hearing, poor mobility and indeed limited dexterity. At Doro we believe that seniors will call and use services to a much greater extent as soon as they possess a mobile phone developed with their needs in mind," says Kjell Reidar Mydske Marketing and Sales Director at Doro.
Just as the rest of us, seniors differ from each other - the survey shows great differences between the countries, age groups and social background. There are interesting differences between the 65-74 and 75+ age groups. Nearly 90% of those in the age group 65-74 have a mobile phone, while only two-thirds of those in the age group 75+ have one.
There are also big differences between the countries. The USA are in the front line (65%) when it comes to having a positive attitude to new technology, closely followed by Sweden (62%), Germany (62%) and UK (44%). The French, on the other hand, have a more considered approach to new technology (39%).
Source: Cellular News
The charitable foundation set up by the wife of the UK's former Prime Minister, Tony Blair has published a report that attempts to understand the nature of women mobile subscribers in low and middle-income countries such as Kenya and India, and highlights the barriers facing women's adoption of mobile technologies. It also shows that, by extending the benefits of mobile phone ownership to more women, a host of social and economic goals can be advanced.
The report reveals for the first time the extent of the gender gap in mobile usage in many low and middle-income countries. It shows that a woman in a low or middle-income country is 21% less likely to own a mobile phone than a man. Closing this gender gap would bring the benefits of mobile phones to an additional 300 million women, empowering and enabling them to stay better connected with family and friends, improving their safety, and helping them obtain paid work, in line with the third UN Millennium Development Goal on gender equality. The mobile phone as documented in the report is an effective productivity and development tool which creates education, health, employment, banking and business opportunities.
Click here to see full article
|
Cherie Blair, Founder of the Cherie Blair Foundation for Women: "Every woman, wherever she lives, needs a mobile phone. That's the simple but fundamental message at the heart of this report. Women can use this vital tool to help unlock real prospects for themselves, their families and their communities. By being better connected, women feel safer, find employment, start businesses, access banks, learn about market prices and altogether benefit socially and economically. "Women and Mobile" is a seminal report that should be read by all who care about the life chances of women."
Key findings show that:
- There are 300 million fewer female subscribers than male subscribers worldwide
- A woman is 21% less likely to own a phone than a man in low and middle-income countries - 23% in Africa, 24% in the Middle East, and 37% in South Asia
- Regionally, the incremental annual revenue opportunity for operators ranges from US$740M in Latin America to US$4B in East Asia
- Going forward, two thirds of potential new subscribers for mobile network operators will be women
- Women in rural areas and lower income brackets stand to benefit the most from closing the gender gap
- 93% of women report feeling safer because of their mobile phone
- 85% of women report feeling more independent because of their mobile phone
- 41% of women report having increased income and professional opportunities once they own a phone
The report highlights that women account for 750 million of the 1.25 billion adults in low and middle-income countries who have mobile phone coverage, but don't have a handset. If operators bring mobile phone penetration among women on a par with penetration among men, this report shows they would collectively earn US$13 billion in additional revenues each year.
Findings indicate that greater usage of mobile phones by women would stimulate social and economic growth, while generating subscriber and revenue growth for mobile operators. Previous research by Deloitte has shown that a 10% increase in mobile phone penetration rates is linked to an increase in developing country GDP by 1.2%.
|
The research calls for the mobile industry, development community and policy makers to undertake a number of steps together including, specifically addressing women in segmentation strategies and marketing tactics; creating innovative programmes to increase the uptake of mobile phones amongst women; promoting the mobile phone as a life enhancing, effective development tool which creates education, health, employment, banking and business opportunities; and designating high-profile champions of mobile phones for women.
Source: Cellular News

Friday, February 12, 2010
The Cyprus Mail reports that a parliamentary plan to enforce identity registration of all pre-paid mobile network users has run into legal and practical problems. Late last year, lawmakers began preparing legislation aimed at curbing illicit usage of anonymously owned phone SIM cards in criminal activity, but the draft bill was met with several objections. The commissioner for the protection of personal data, as well as the state legal service disagreed with the bill as it conflicts with the law on personal data, whilst state-owned fixed and mobile operator Cyta, claimed that it would take ‘15 years’ to register its roughly 500,000 pre-paid mobile subscribers. The proposed law provides for a one-year transitional period to give subscribers a chance to register their details. Meanwhile, the House Communications Committee has asked the personal data commissioner and the legal service to find a way to overcome the perceived problems in introducing the scheme.
Source: TeleGeography

Wednesday, January 13, 2010
Taiwanese regulator the National Communications Commission (NCC) has announced plans to implement a 5.87% cut on mobile service rates from 1 April 2010. The regulator, citing ITU figures, revealed that the country’s mobile charges as a percentage of per capita income rank as the 26th highest in the world, and are currently three times higher than Hong Kong. According to TeleGeography’s GlobalComms Database, Taiwan’s mobile industry has flourished despite the apparent high charges, with a cellular penetration rate of 116% at the end of September 2009.
Meanwhile, ADSL charges will also be subject to a similar reduction, with rates being cut by 5.68%, benefiting the country’s 15.47 million ADSL users.
Source: TeleGeography
Mobile operator Moov Togo has resumed the provision of wireless services in the country after the suspension of its operations for four months, African news agency Pana Press reports. In August 2009 Atlantique Telecom, which manages Moov’s operations in Togo and five other countries in Africa, failed to renew its operating licence in the West African country.
The concession expired in June 2008, after which the company was given until 10 August 2009 to pay a CFA20 billion (USD44 million) renewal fee. Negotiations between the cellco and regulator broke down close to the deadline and Moov’s network was shut down, leaving around 600,000 subscribers without a mobile service and sparking protests involving over 2,000 people. Under the terms of the new agreement, Moov will pay CFA25.75 billion over a period of twelve years, instead of the CFA20 billion previously required over a ten-year period. The company has reportedly already made a down payment of CFA11.75 billion, and will pay the remainder over the required time-span.
Source: TeleGeography

Monday, January 11, 2010
The Nigerian Communications Commission (NCC) has introduced a new set of interconnection rates for voice and SMS termination with the hope that retail tariffs will be cut by as much as NGN4 (USD4.98) per minute, local newspaper This Day reports.
From 31 December 2009 interconnection rates for mobile voice termination provided by new entrants (defined by the commission as companies which have been operating for less than four years) irrespective of originating network, will be set at NGN10.12. The rates will fall to NGN9.48 on 31 December 2010, NGN8.84 on 31 December 2011 and NGN8.20 on 31 December 2012 (from which date all termination rates will be symmetric). The NCC hopes the revised interconnection rates will encourage new entrants in the sector to offer services at more affordable rates to subscribers. Operators not defined as new entrants must set a mobile voice termination rate of NGN8.20 from 31 December 2009. Fixed voice termination rates have been set at NGN10.12 from 31 December 2009, NGN9.48 from 31 December 2010, NGN8.84 from 31 December 2011 and NGN8.20 from 31 December 2012. The SMS termination rate of new entrants will start at NGN1.94 from 31 December 2009 and fall gradually to NGN1.02 from 31 December 2012. Other mobile operators will charge NGN1.02 from the start of 2010.
Source: TeleGeography

Thursday, January 07, 2010
The Tunisian telecoms market is to gain additional competition with the entry of France Telecom in early 2010. However, Onda Analytics believes the dynamics of the Tunisian telecoms market could change further, with many parties interested in the 35% stake in Tunisie Télécom held by EIT, a holding company for telecoms investments made by Dubai Holdings. The increasingly competitive environment in Tunisia may prompt EIT to consider listening to offers from operators interested in joining the market. Meanwhile, the other 65% shareholding is owned by the Tunisian government, which this week announced a privatisation drive for 2010.
Click here to see full article
|
As a result of the pressure from both France Telecom and existing mobile operator Tunisiana, Tunisie Télécom must pursue measures to defend its current market position. Report lead author, Daniel Jones, says "many MENA operators have experience of defending against strong competition and are looking for attractive acquisition targets. As a result of the benefits this experience could bring to Tunisie Télécom, these parties' valuations may provoke EIT's interest."
Onda Analytic's latest report, assesses this potential investment opportunity, as well as forecasting fixed line, broadband and mobile markets. |
The incumbent, Tunisie Télécom, is likely to suffer most from the entry of France Telecom, given that the new entrant will be present in fixed line, broadband and mobile markets. Tunisie Télécom's mobile market share is forecast to decline from 50% in 2009 to 34% by 2018. Its fixed line business is also set to be put under pressure from France Telecom, with Tunisie Télécom's fixed share to fall from a current monopoly position to 77% of fixed lines by 2018.
Tunisian mobile operators generated total mobile revenues of US$1.6 billion in 2009. As a result of relatively high mobile penetration and with tariffs set to fall with the entry of the third mobile operator, total mobile revenue is forecast to grow modestly over the coming years. Fixed line growth is expected to buck the trend of many markets with a forecast increase in lines of 30% to 2018, from 1.4 million in 2009, driven by the adoption of broadband services.
Source: Cellular News
Vietnam has extended the deadline for PrePay subscribers to register their account details before unregistered SIM cards are disconnected by the networks. The extension has been agreed to as there are still a significant number of unregistered SIM cards active on the mobile networks.
MobiFone has extended its deadline to 5 January and VinaPhone continues the registration until January 6.According to MobiFone, it had opened 15,000 counters across the country, registering 20 million subscribers. That leaves around one million unregistered yet.
The ministry has decided that individuals will only be allowed to subscribe to three phone numbers from each mobile service provider without registering. Deputy Director of the ministry's information department, Nguyen Xuan Tru, said there are around 100 million mobile subscribers in the country, 90 per cent of them using pre-paid cards.The ministry has ordered the companies to submit the registration data on January 10, 2009.
Source: Cellular News

Tuesday, December 22, 2009
The Nigerian Communications Commission (NCC) will begin the registration process of all GSM-enabled SIM cards in March 2010, the African Press Agency reports. According to Lolia Emakpore, the director of the regulator’s Consumer Affairs Bureau, the process will start simultaneously in the six geopolitical zones of Nigeria and subscribers will have six months to register their details free of charge or face having their service disconnected. She added that the move will help curb crime perpetrated via mobile phones, such as fraud.
Source: Telegeography

Monday, December 21, 2009
The Evaluation Committee of Solomon Islands Telecommunication has decided to award a mobile network operating licence to bemobile, a company backed by international fund GEMS in partnership with US-based telecoms investor Trilogy International Partners. bemobile, which already provides services in Papua New Guinea, beat a rival application from Digicel Group to break the monopoly of Our Telekom. The new licence requires the launch of services within six months and the provision of coverage to 81% of the population within 21 months. The Evaluation Committee said it hoped there will be other opportunities for Digicel or other interested parties to enter the Solomon Islands market in the future. Trilogy International Partners also operates mobile networks in Bolivia, the Dominican Republic, Haiti and New Zealand.
Source: Telegeography

Wednesday, December 09, 2009
The state-owned telecoms network in Burma/Myanmar is to expand its CDMA network capacity by some 150,000 lines in the two main cities of Yangon and Mandalay this month, reports the Chinese Xhinua news agency.
Significantly, the capacity of the restricted network in the new capital city, Naypyidaw is not being affected. Phone services in the capital are even more tightly regulated than usual for other areas in the military run country.
The number of CDMA phone lines stood 205,500, while that of GSM phones hit 375,800 and auto-phones reached 153,344 in the country in 2008, according to statistics.
The Mobile World analysts estimates that the country had nearly 540,000 subscribers, representing a population penetration level of just 1.2%.
The 3G phones were selling for 2.8 million Kyat (US$ 2150), while a GSM costs about 2.3 million Kyat (US$ 1800). A CDMA costs about 2.1 million Kyat (US$ 1615). The prices put the phones out of reach of ordinary citizens and limits them to the government or favoured business contacts.
Government and military contacts tend to find it easier to get the paperwork to own a mobile phone - but often then rent out those phones to business users.
Source: Cellular News
State-run telco Myanma Posts and Telecommunications plans to deploy 150,000 additional CDMA-based limited mobility wireless phone connections in two major cities, Yangon and Mandalay, according to China’s Xinhua news agency. The existing CDMA networks in Yaragon and Mandalay will be expanded by 100,000 and 50,000 lines respectively, using 800MHz equipment, at a cost of around USD500 per new connection. Active CDMA lines in Myanmar numbered 205,000 at the beginning of the year, compared to 375,000 GSM mobile users. Meanwhile, the authorities also say they are aiming to introduce video calling and other 3G applications over a planned W-CDMA mobile network.
Source: TeleGeography
Bulgaria's mobile operators have agreed to reduce the prices of calls after being asked to do so in a meeting with the country's Prime Minister Boiko Borissov.
During a meeting which took place on 1 December between Bulgaria's Prime Minster, Vivacom's CEO Bernard Moscheni, Globul's CEO Haris Kotsibos, M-Tel's CEO Andreas Maierhofer and the Communications Regulation Commission (CRC)'s chairperson Veselin Bozhkov, Borissov said that the government did not want to interfere in the free market, but asked mobile operators to lower their call prices for the benefit of ordinary people. He also said that CRC should strictly enforce the European regulatory framework and the European best practice. Vivacom said in a press release that the country's regulator was expected to approve the agreement between the government and the three operators. M-Tel's Maierhofer told Borissov that competition on the Bulgarian mobile phone market was strong, resulting in price decreases of an average of 30 percent per year.

Tuesday, December 08, 2009
The mobile market in Mozambique is in its nascent stage with only two operators catering to the burgeoning demand for mobile services. Large investments are being made in infrastructure development, with the enterprises segment having the maximum growth potential due to the increased number of companies opening sites in the country, especially in remote areas.
The bid for a third operator is expected to be finalized by December 2009, further stimulating the competitive environment from 2010. Submarine cables are being deployed to provide global connectivity as well as improve local and international traffic. New analysis from Frost & Sullivan finds that market earned revenues of $300 million in 2008 and estimates this to increase six-fold by 2015 to reach $1.8 billion.
"Mozambique is a promising country in various sectors," says Frost & Sullivan Senior Analyst Silvia Hirano Venter. "The recent introduction of foreign companies and expatriates with high incomes is boosting the demand for more sophisticated communications services, driving the country to invest in the development of its infrastructure."
Substantial improvements in infrastructure and regulation are expected to take place by 2012 and Frost & Sullivan believes that the market is likely to reach its full potential by 2014.
"Currently, Mozambique has only two operators and five key vendors," Venter says. "There are several opportunities for companies interested in expanding to remote areas. Additionally, there is growth potential for companies that offer optimised solutions for infrastructure as a way to reduce the capital and operational expenses of operators."
However, several factors are hampering market growth, such as an inadequate transportation system, unreliable power supply, natural disasters such as floods and droughts, and the presence of landmines. Companies should effectively address these issues to succeed in this geographic area.
"The current global economic downturn has affected Mozambique indirectly, as the demand for agricultural products and commodities has reduced," explains Venter. "However, such challenges are projected to reduce in intensity over the next few years, even as demand is set to rise."
Only 16.0 percent of the population currently utilizes mobile services to communicate. The network quality is good and the much-anticipated roll out of the submarine fibre optic cables will represent an advance in data traffic and capacity.
"Companies should continue to invest in the extension of the network to rural areas to enable the reduction of prices," concludes Venter. "Despite the challenges, the future looks bright for Mozambique's mobile communications market."
Source: Cellular News
Millicom says that it has officially started its mobile operations in Rwanda today. Millicom was awarded its license in December 2008 and will be the third operator in the Rwandan market. The service is launching with approximately 50% coverage of the population, with plans to extend coverage significantly over the next three years.
In addition, the operator has deployed 3G infrastructure in Kigali, the capital of Rwanda, and other key urban centres.
Mikael Grahne, President and CEO of Millicom, said "With a population of 10 million, mobile penetration of less than 20%, and a rapidly developing economy, Rwanda is a highly attractive market for Millicom. With our focus on affordability and our strengths in distribution and innovation, we believe we can make mobile voice and value-added services a reality for the mass market in Rwanda."
Source: Cellular News

Wednesday, November 25, 2009
Tigo has launched commercial mobile phone services in Rwanda, reports East African Business Week.
The service will operate using the 072 prefix code. Technical Director Mohamed Dembele said the network currently has 111 base stations, with 26 in the capital Kigali and the rest in the provinces. Currently, Tigo has 53 percent population coverage, and around 30,000 customers have already registered for services. The network is live in 13 out of 30 districts in the country, with coverage expected to increase to 24 districts by next year and the entire country by 2011. Tigo is a brand of Millicom International Cellular (MIC). The company will compete against leading mobile operator MTN Rwanda, and incumbent Rwandatel, which switched to GSM technology a year ago.
The Libyan government has announced plans to sell small stakes in the country's two mobile phone networks as part of a wider plan to sell off state owned corporations. The IPOs will offer shares in the government's two mobile telephone operators, al Madar and Libyana, as well as in Iron and Steel Company and National Commercial Bank.
The government also announced details of tax breaks to make trading on the local stock exchange more appealing to investors.
"The trading volume remains small because we are still at the start, but I expect that with new regulations ... the Libyan stock market will become one of the most active in North Africa and the Arab region," Seleem Naas, chairman of Libyan brokerage Sarab Foreign Exchange and Financial Services told the Reuters news agency.
Earlier this year, Etisalat said it had submitted a bid for Libya's third mobile phone license, although nothing further has been heard.
According to figures from the Mobile World, Libyana is the dominant operator with 83% of the market, followed by Al Madar. The country has a population penetration level of 134%.
Source: Cellular News

Tuesday, November 17, 2009
The body managing the tender for the Solomon Island's first competitive mobile license tender has announced that it has received three applications. The applicants are Digicel, bemobile and Milestone Developments.The Evaluation Committee has begun reviewing the applications and will be making further announcements in due course as provided in the Request for Applications.
The country currently has just the one telecoms operator, Solomon Telekom (trading as Breeze GSM).Solomon Telekom is estimated by the Mobile World subscriber database to have ended Q1 '09 with just over 35,000 subscribers - representing a population penetration level of just 6%.
Digicel was granted a license in 2006, but Solomon Telekom successfully sued to block the network launch pending a review of its monopoly status.
Source: Cellular News

Wednesday, October 21, 2009
Millicom International Cellular (MIC), the telecoms group with operations in twelve countries across Africa and Latin America, has posted revenues of USD856.2 million for the third quarter of 2009, a 7% increase year-on-year.
The growth is partly attributable to strong performance at Amnet, the company’s cable and broadband unit, as well as its African subsidiaries. Net income, however, slipped 11.5% to USD142.7 million on the back of higher interest expense and taxes. The results exclude operations in Cambodia, Laos and Sri Lanka, which Millicom agreed to sell earlier this month. The full divestment of all three subsidiaries is expected to take place by the end of 2009, generating approximately USD565 million in cash for the company.
Chief Financial Officer Francois-Xavier Roger said the company was looking at acquisitions and bidding for new licences in Africa and Latin America. ‘We have nothing well advanced at this stage, but we have a few opportunities that we continue to discuss with third parties,’ he stated.
Source: Telegeography

Thursday, September 17, 2009
Russian mobile operator Vimpelcom has acquired a 78 percent stake in Millicom's mobile operator in Laos.
The remaining 22 percent of Millicom Lao is owned by the government of the Laos government. The acquisition price is estimated to reach USD 66 million, based on the enterprise value of Millicom Lao of USD 102 million. The acquisition is scheduled for completion by end-2009. With a population of 6.5 million inhabitants, mobile penetration in Laos currently stands at 23 percent. According to Boris Nemsic, VimpelCom CEO, the operator's entry into Laos is the next logical step in the company's international expansion strategy. Laos provides a complement to VimpelCom's existing operations in Vietnam and Cambodia and fits into the company's strategy of building a solid Southeast Asian cluster, Nemsic said. The VimpelCom Group currently operates in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia, Armenia, as well as Vietnam and Cambodia.

Thursday, August 27, 2009
Orascom Telecom has reported that its mobile subscribers in North Korea nearly doubled in Q2Œ09 even though the ARPU dipped. Koryolink, in which Orascom owns a majority stake, ended June with 47,863 subscribers, twice more than what the operator had at April-end, when the total stood at 19,208, said Orascom.
Koryolink runs on a 3G WCDMA (Wideband Code Division Multiple Access) technology and is the only operator in the country open to individual subscribers.
During Q2 2009, the operator posted an ARPU of US$22.80, down from $24.70 in Q1Œ09. While EBITDA stood at $2.5 million.
Source: Wireless News
Pakistan’s mobile market according to the Pakistan Telecommunication Authority has reported a penetration level of 58.5% at the end of July. The mobile segment, in July added 1 million mobile suscribers taking the total mobile subscriber base to 95.55 million.
Of the total base, Mobilink led the market with 29.5 million (31%) subscribers while Telenor stood second with 21.3 million (22%) followed by Ufone with 21% market share.
The highest monthly additions were achieved by Mobilink with 414,000 new subscribers followed by Telenor and Warid with 406,000 and 255,000 new subscribers respectively.
Source: Wireless News
Pakistan's Senate Standing Committee on Information Technology and Telecommunications has urged the telecoms regulator, the PTA to ensure protection of consumer rights, reports the local Daily Times newspaper.
"Growth of the telecom sector is important, but consumer satisfaction is more important", was the unanimous view of the committee, which met at Parliament House with Senator Muhammad Idrees Khan Safi in chair.
The Committee also said that telecom companies were making windfall profits but paying little attention to improving service quality, especially in the rural and remote areas of the country.
The committee directed the PTA to play its regulatory role effectively to address outstanding issues, especially those related to service quality. It also instructed that the SIM registration and verification process be carried out vigilantly to avoid any misuse.
According to the Mobile World analysts, the country ended Q1 '09 with just over 91 million mobile phone users, which represents a population share of 52 percent.
Source: Cellular News
Orascom Telecom has confirmed that its North Korean subsidiary, koryolink's subscriber base stood at 47,850 by the end of Q2. In order to capitalize on the subscriber growth momentum, in the second quarter of 2009 koryolink introduced further reduction in connection fees as well as free SMS for the first time. Additionally, the mix of free minutes was revised to satisfy customer requirements.
Over the second-quarter, while minutes of use rose to 199 per month, the ARPU fell to US$22.8, from US$24.7 in Q1. The financial figure is based on the official exchange rate between the North Korean Won (KPW) and US$.
koryolink retail network currently consists of 2 large sales shops strategically located in downtown Pyongyang with 3 additional scratch card sales outlets located within KPTC post office shops. koryolink plans to expand the indirect sales network through the inauguration of 6 more outlets within KPTC shops. A separate after sales service shop is planned for Q3.
Local news media also added that the company is expanding its network. Citing the North's Korean Central Broadcasting Station, the Yonhap News Agency said that fiber-optic cables have been laid in all provinces to "upgrade communication capability and quality" and that mobile communication networks are "being established on a national scale,".
Source: Cellular News
Morocco added 128,222 internet subscribers in the second quarter, for 15 percent quarterly growth to 834,463 at the end of June and 47.29 percent growth versus June 2008, according to telecommunications regulator ANRT.
Of the total internet customers, 50.75 percent are on ADSL and 48.7 percent are on 3G mobile networks. ADSL subscribers were static at 488,567 at the end of June, compared to 489,043 at the end of March.
Click here to see full article
|
Maroc Telecom has a 98.86 percent share of the country's ADSL subscribers, followed by Wana with 0.78 percent. Mobile 3G internet users grew by 38.16 percent to 468,781 at the end of June (195.07 percent growth vs June 2008). Wana has a 63.4 percent share of the 3G internet market, followed by Medi Telecom with 18.38 percent and Maroc Telecom with 18.21 percent. Morocco's fixed telephony market rose by 5.64 percent in Q2 to 3.27 million at the end of June, including 1.96 million on fixed wireless. Fixed line penetration stood at 10.48 percent, up from 9.92 percent three months earlier. Wana has a 60.27 percent share of the fixed telephony market, followed by Maroc Telecom (39.48%) and Medi Telecom (0.25%). Residential fixed telephony customers rose by 6.44 percent to 2.72 million and business fixed telephony customers by 1.78 percent to 387,512. Morocco's mobile telephony market was static at 23.534 million at the end of June, compared to 23.516 million at the end of March.
Maroc Telecom lost market share to rivals Medi Telecom and Wana, but still retains a 60.71 share of mobile customers, ahead of Medi (36.69%) and Wana (2.6%). Specifically, Maroc Telecom's mobile customer base fell by 2.34 percent in the quarter to 14.29 million, whereas Meditel's rose by 3.21 percent to 8.63 million and Wana's by 17.47 percent to 521,000. Some 95.8 percent of the country's mobile customers are on prepaid.
|
Source :
Telecompaper

Tuesday, August 25, 2009
Atlantic Telecom is reported to be facing the suspension of its network in Togo after failing to renew its operating license. The operator's license expired in June 2008, and has been given until 10th August to pay a 20 billion CFA (US$44 million) renewal fee.
Click here to see full article
|
The company is said not to have complied with two decrees spelling out the financial conditions of renewal of its licence. So far, only operators Togo Telecom and Togo Cellular have started carrying out measures in the decrees, the regulator, ARTP reported in a statement on Saturday. |
Estimates from the Mobile World analysts shows that the operator ended Q1 '09 with around 530,000 subscribers. The dominant telco is the state owned Togo Cellular, with around 1.25 million customers. France Telecom's Orange seems to have an operating license but has not started services yet.
Source: Cellular News
Japanese mobile operators added 413,700 new customers in July, to reach a combined total of 108.90 million customers, according to figures from the Telecommunications Carrier Association. NTT DoCoMo took the lead in net additions and added 143,600 subscribers to end the month with 55.07 million. Softbank followed with 137,600 new subscribers, bringing its total to 21.09 million. Emobile signed up 76,100 new subscribers bringing its total to 1.75 million customers. KDDI gained 56,600 new customers and ended July with 31.05 million customers, while PHS provider Willcom shed 18,500 customers to finish July with 4.52 million.

Thursday, August 06, 2009
Argentina has reportedly ended the first half of 2009 with 49.2 million mobile lines in service, up 14% year-on-year. In June, the mobile telephony traffic totaled 3.82 billion calls, representing a 30% increase compared to the same period a year ago. Public phones totaled 146,988, an increase of 10.7% in comparison to the same period a year ago.
Source: Wireless Federation
Argentina ended the first half of 2009 with 49.2 million mobile lines in service, up 14% year-on-year, writes BNamericas citing the country’s national statistics bureau Indec. Mobile telephony traffic in June totalled 3.82 billion calls, representing a 30% increase compared to the same period a year earlier. Meanwhile, Indec also reports that Argentina’s fixed lines totalled 9.4 million at 30 June 2009, up 1% from a year earlier. Local fixed telephony traffic during the month fell 2.2% to 1.25 billion calls, while domestic long distance traffic rose 11.2% to reach 348 million calls. Public phones totaled 146,988, an increase of 10.7% compared to the same period a year earlier.
Source: Telegeography

Monday, August 03, 2009
Azeri mobile operator Azerfon has announced it has installed 20 base station transceivers (BTSs) in Azerbaijan to improve network coverage. The cellco, which provides services under the Nar Mobile banner, has constructed 16 BTSs in the city of Baku, two in the region of Absheron and one each in the cities of Sheki and Gabala. The company stated that at present its wireless network covers 90% of the country’s population and 80% of Azerbaijan’s territory, and provides 1.3 million subscribers with mobile services.
Source: Telegeography

Thursday, July 30, 2009
The Tanzania Communications Regulatory Authority Status of the Telecom Market for March 2009 reportedly unveiled that the Tanzanian mobile operators have reportedly added 837,883 subscribers in Q1'09, taking the total mobile subscriber base to 13.885 million.
The report shows that Tigo has added 384,925 new subscribers and ended the quarter with 2.95 million subscribers. The operator stood at the third position among the six mobile operators across the nation.
"Vodacom lead the market with 5,670,122 subscribers as it added 261,683 new subscribers during Q1'09. Vodacom is still leading the market, accounting for 40 per cent of total subscriptions though its share dropped by one per cent compared with what it held in the last quarter of 2008" showed the report.
Zain stood second as it added 42,508 new subscribers during the same period, taking its subscriber base to 4,104,879.
Zantel Mobile lost 27,162 subscribers during the period, decreasing the number of users to 1,030,490.
Source: Wireless Federation
The Egyptian market surged through the 50% penetration barrier in Q1 09, finishing the quarter with a rate of 52.7%. In real terms, the total customer base grew to 43.57m. Quarterly net additions stood at 3.01m, making Q1 09 the third successive quarter in which the gain has exceeded 3m. On an annual basis, there was an increase of just under 12.50m - the highest figure ever recorded in the Egyptian market. Proportionate annual growth stood at 40.2%, down from 52.9% for the prior twelve-month period. In fact, this was the second lowest growth rate of the past eight quarters, the lowest being the 39.0% recorded in Q4 08. This may seem to present a somewhat ambiguous prospect for future growth; however, the graph on the right suggests that the decline in proportionate growth may have bottomed out for the time being, and that actual growth should remain above 10m per year for some time to come.
Click here to see full article
|
Market leader Egyptian Company for Mobile Services (ECMS) - a joint venture between Orascom and France Telecom - finished the quarter with 21.18m customers. Annual growth stood at 21.0%, down from 51.5% a year earlier. On a quarterly basis, ECMS, which markets its services as Mobinil, added 1.06m customers. This meant that second-placed Vodafone took top spot for net additions for the second successive quarter. It added 1.33m to finish on 18.94m, with an annual growth rate of 34.6%, down from 45.8%. However, in terms of annual net additions ECMS still managed to lead the way with a gain of 5.02m, compared to 4.87m for Vodafone.
Both ECMS and Vodafone lost market share on an annual basis, ECMS losing 1.2pp to finish Q1 09 on 47.1% and Vodafone shedding 1.8pp to finish on 43.5%. The reason for this, of course, was third player Etisalat, which added 3.0pp to finish on 9.4%. In real terms, this translates to a customer base of 4.11m. Although it did well to maintain a triple-digit annual growth rate with a 107.3% rise in the twelve months to 31st March 2009, a market share of less than 10% after eight quarters of commercial service in what was a relatively under-developed market is somewhat disappointing. |
Source: Cellular News
According to data released by Hungarian telecoms regulator the NHH, total country wireless subscribers fell by 23,323 in the month of June to 11.88 million. Pannon’s share of the subscriber market fell slightly from 34.87% to 34.73%, Vodafone’s remained almost unchanged at 21.06% compared with 21.07%, while T-Mobile’s slice of the pie grew to 44.21% up from 44.07%. Active subscriptions, however, increased from 10.63 million in May to 10.64 million in June.
Source: Telegeography

Monday, July 27, 2009
The Iranian mobile market continued to grow in the first quarter of 2009, finishing a whisker short of 50m on 49.97m. This left the penetration rate at 70.5%, up from 49.7% a year earlier. Given the increased penetration, it is unsurprising that the quarterly gain of 3.65m was well below the year-earlier figure of 6.15m. Of course, this was still an impressive uplift, and the Q1 08 gain was, moreover, an all-time market record, but this does indicate a gradual slowdown in growth in the Iranian market. Political instability subsequent to the end of the quarter may well have had a further impact on growth.
Click here to see full article
|
On an annual basis, there was a 43.6% increase in customers - again an impressive figure, but again significantly down on the year-earlier figure of 103.9%. In fact, this was the lowest annual growth recorded since Q4 04. For the seventh successive quarter, MTN subsidiary Irancell topped the market for quarterly growth, adding 2.21m to finish on 18.25m. This represented an annual growth rate of 102.2%, maintaining the triple-digit annual growth it has seen in every quarter since its launch in Q4 06. This is one of the strongest performances recorded by any mobile operator in the world in recent years. Nevertheless, Irancell remained more than 10m customers behind market leader TCI Iran at the end of the quarter.
The gap of 11.71m was down from 15.48m a year earlier, but this still suggests that it will be some time before Irancell can think about challenging TCI Iran for the lead. TCI Iran was on 29.96m at the end of Q1 09 having added 1.36m in the quarter. This compares to 2.96m (its record figure) in Q1 08. In terms of proportionate growth, the 22.2% rate recorded in the twelve months ending 31st March 2009 was down from 59.3% in the prior twelve-month period. In real terms, annual net additions were down from 9.12m to 5.45m. Irancell, on the other hand, improved from 7.95m to 9.23m. |

The remaining three operators in Iran have little market presence. The largest is Rafsanjan Industrial Complex (Taliya), which was up 39.6% annually to 1.70m, while the other two have fewer than 60k between them.
Source: Cellular News

Wednesday, July 22, 2009
Azeri online news source APA writes that the country’s largest cellco by subscribers, Azercell Telecom, has suspended interconnection with rival mobile operator Azerfon from today (22 July), due to reported unpaid termination fees. Azercell Telecom claims that Azerfon, which provides wireless services under the Nar Mobile banner, owes AZN11 million (USD13.7 million) as a result of systematic breaches of monthly payment terms from July 2008 of the Interconnection Agreement in place between the two parties. According to TeleGeography’s GlobalComms database, Azercell was Azerbaijan’s largest cellco by subscribers at 31 March 2009, reporting 3.58 million customers, while Azerfon stood in third place behind Bakcell, with a mobile subscriber base of 1.09 million at the same date.
Source: Telegeography
Vodafone is reported to have secured a license to operate a mobile network in French Polynesia in a joint venture with Pacific Mobile Telecom. Local radio reports, cited by Radio New Zealand said that the government approved the application, but no date has been set for the network launch.
Click here to see full article
|
A spokesman for PMT, Patrick Moux, has told RFO radio that the company will try to launch its service as soon as possible. There is currently a single mobile network in the islands, Tikiphone which the Mobile World estimates to have around 200,000 subscribers. |
The islands of French Polynesia have a total land area of 4,167 square kilometres (1,622 sq. mi) scattered over 2,500,000 square kilometres (965,255 sq. mi) of ocean. It is made up of several groups of islands, the largest and most populated of which is Tahiti. Total population at the August 2007 census was 259,596 inhabitants, with a GDP per capita of US$21,565 in 2005.
Source: Cellular News
Turkey followed Italy and the UK in suffering a quarterly loss to its customer base. The 1.44m decline was the largest ever seen, as well as being the first for seven years. At the end of Q1 09, the total customer base stood at 64.48m, just 3.1% above the Q1 08 total. This was the lowest growth rate ever recorded in the Turkish market and 12.3pp below the year-earlier rate. Penetration fell back below 90% during the quarter, finishing on 89.0%. However, there is every chance that a resurgence in growth will take penetration over 100% once 3G is launched, with reports suggesting that the first W-CDMA networks will be operational very soon.

Click here to see full article
|
Vodafone's woes continued in Turkey. As in Germany and the UK, it saw the greatest loss of any network, losing 1.24m to finish on 15.48m. Although it remains almost 2.9m customers ahead of third-placed Avea, this is down from a lead of 6.4m a year earlier. With the losses confined to its prepaid base, the contract percentage was up by 1.3pp year on year to 12.7%, although this was still the worst rate on the market by some distance. Moreover, this improvement in customer quality did nothing to boost ARPU, which fell 15.9% annually to TRY11.10 per month. Market leader Turkcell also lost customers, a decline of 0.60m taking its total base to 36.40m. Of course, this still gives it a lead of more than 20m over Vodafone. In addition, like Vodafone it saw an improvement in customer quality, from 18.8% contract at the end of Q1 08 to 21.4% a year later. However, also like Vodafone this did not boost ARPU, which was down 21.2% to USD10.40 - although currency movements no doubt played a role here. The only operator not to see a decline in customer numbers was Avea, which added 0.40m to finish on 12.60m, appearing to benefit directly from the losses at its competitors, especially given the introduction of MNP last year. Avea's annual growth rate was 20.0%, and as we have seen it closed the gap on Vodafone significantly during the year. Although its customer quality declined slightly, at 34.9% it remained by far the highest in the market. Meanwhile, ARPU was at TRY14.00, down 10.8% year on year. |
Source: Cellular News
In Q1 09, the UK mobile market saw its first quarterly net loss of customers for three years. The total customer base contracted by 0.56m to finish the quarter on 75.59m, equivalent to a penetration rate of 123.8%. The proportionate annual growth rate fell to 3.9% from 4.9% a year earlier, and in fact this was the second lowest rate ever seen in the UK market, the lowest being the 3.1% recorded in 2006. This may not be indicative of a long-term decline in growth, however. The Q4 06 figure of 3.1% was followed by eight quarters in which annual growth hovered around 5%, and the Q1 09 rate may prove to be a similar blip.

Click here to see full article
|
The greatest loss in Q1 09 was suffered by Vodafone, which shed 0.45m customers to take its total to 18.72m. A year earlier Vodafone was the UK's market leader (if we exclude O2's customers through its Tesco MVNO), but at the end of Q1 09 it was 0.86m adrift of O2. Although its second place remains secure, this was the biggest quarterly decline in customers Vodafone has ever seen. On an annual basis, it added just 0.18m. However, T-Mobile's annual performance was even worse, a 0.26m loss taking its total customer base back under 10m for the second time, with an end-quarter figure of 9.99m. Its Q1 09 loss stood at 0.21m. Virgin, which operates as an MVNO on T-Mobile's network, was the only other major operator to lose customers in Q1 09, a 94.3k decline taking its base to 4.02m. This was its fifth successive quarterly decline, and on an annual basis it lost 0.41m customers. The other operators may not have lost customers, but they did not perform well. O2 top-scored with a gain of just 110.6k, which took its total base to 19.58m. Tesco added around 40k to break the 2m barrier, Orange was up 32k to 16.44m and Hutchison gained half this number to finish on 4.43m. The ARPU figures provided no respite from this somewhat gloomy picture. O2 was down 19.6% to €24.20 and T-Mobile down 19.2% to €21, although the strengthening of the Euro had a part to play here. Vodafone was also down, losing 3.7% to record £20.80, whilst Orange was up 1.1% to £22.58, although its rolling annual average figures obscure the real quarterly trend.
|
Source:
Cellular News
The Asia Pacific region now contains the world's two largest mobile markets, China and India and together, these two account for 1.04bn of the world's 4.15bn mobile customers. In fact, Asia is the only region to have more than one 100m market. The positions occupied by the top two markets remain unchanged compared to this time last year, with China still well ahead, with a total of 644.8m customers (not including the SARs of Hong Kong and Macau) which would, if added, push the PRC over the 650m mark. One year ago, China was more than twice the size of the second largest market, India, but the smaller country is rapidly closing the gap. It connected over 130m new customers in the year, to reach a total of 391.6m, compared to just 88.2m in China.

Click here to see full article
|
Indonesia ended Q1 08 just behind Japan. Over the last twelve months though, 42m new customers connected in Indonesia compared to fewer than 5m in Japan and today, it is the undisputed number three in the region, with 144.6m customers. Japan has only fallen one place, but with 1.7.5m customers, its lead over fifth placed Pakistan is just over 16m. Pakistan added 13.4m connections over the year and looks set to overtake Japan, if not in the next twelve months, then certainly in the next 24. If Vietnam were to enjoy the same kind of growth over the coming year, it could just overtake Japan too. It closed the March quarter with 73.2m accounts, up 35m on the Q1 08 figure. Vietnam overtook the Philippines in so doing and indeed, all of the remaining countries on this list even though they all experienced satisfactory growth rates. The Philippines closed the quarter with 71.7m accounts, ahead of Thailand (62.7m), Bangladesh (46.3m) and South Korea (46.2m). These ten markets account for 1.68bn customers, or 92.9% of the regional total, marginally up on the 92.5% from last year. That reflects the weight of demographics as much as anything else, with these ten having a combined population of 3.48bn or slightly more than half the world's total.
|
Source:
Cellular News
The top mobile markets in East Africa and the Indian Ocean islands are amongst the most liberalised on the continent. The top three markets are Kenya, Tanzania and Uganda and they all have about 10 million subscribers.
Each of these three markets has been a laboratory for competition. For example, Tanzania has issued seven mobile licences and Uganda has issued six. The number of operators has resulted in increased investment and marketing spend in the top three markets. And in all three countries, this competition has benefited African consumers as the cost of owning and using a mobile phone has fallen.
Click here to see full article
|
Based on data gathered for a new report from Balancing Act, there have been dramatic drops in mobile charges, opening the market to a wider number of users. For example in Kenya, between Q3, 2007 and Q4,2008, calls to other subscribers on the same network fell by over half, from KS18.10 to KS8.98. Over the same period, SMS text messages to subscribers on another network fell from KS5.03 to KS3.69. Amongst the 15 countries in this report, there are really only 5 countries that have any scale in population terms: Ethiopia (83 million), Tanzania (39.5 million), Kenya (38 million), Uganda (29.5 million) and Madagascar (20 million). At the other end of the scale there are five countries and territories - Comoros, Djibouti, Mayotte, Reunion and Seychelles - with populations of below 1 million. Nevertheless, it is in the main the Indian Ocean Islands with small populations that have much higher GDP per capita than the more populous countries: Reunion (US$23,501), Seychelles (US$18,700), Mauritius (US$11,300) with a population of 1.27 million, Mayotte (US$4,900) and Djibouti (US$3,700). Tourism has driven growth in Mauritius and Seychelles and the connection to France for the territories of Mayotte and Reunion has had a similar effect.
All the other countries in this report range between US$160 (Ethiopia) to US$1,100 (Comoros). None of these countries has oil but Tanzania has natural gas reserves. The reason? The Seacom international cable started operating on 23 July 2009 and the Kenyan Government initiated project TEAMS will follow shortly thereafter. And in Q3, 2010 will come EASSy, the fibre project that started it all but is now lagging well behind in the field. In addition, France Telecom has a project called LION that will connect various of the Indian Ocean islands into these new international cable connections in October 2009: the build has been completed and it now awaits licensing approval. The mainland East African countries currently connected by satellite will see a large increase in international bandwidth used as prices come down from around US$5,000 per mbps to something more like US$500 on the new fibre connections. This cheaper bandwidth price should lead to cheaper Internet prices for consumers. |
Source: Cellular News
The number of registered cellular phones in Brazil reached 159.6 million at the end of last month, up 1.3% on the figure reported in May 2009, thanks to an aggressive marketing push by all major operators, the telecoms regulator Anatel said Monday. Net mobile additions reached 2.1 million in June, down from 2.9 million in May, it said. Vivo Participacoes, the joint venture of Spain’s Telefonica and Portugal Telecom, maintained its number one position in the domestic mobile market with a 29.3% share of subscriptions, ahead of America Movil-backed Telecom Americas (Claro) with 25.4%. Third spot was claimed by TIM Brasil with 23.7%, and in fourth was Telemar Norte Leste (Oi), which increased its market share to 21.2% in June.
Source: Telegeography

Wednesday, July 08, 2009
The South African cellular market reached a milestone of 50-million connections at the end of 2008 - but only 68% of these represented individual users, reports a study carried out by World Wide Worx, backed by First National Bank (FNB), and Research In Motion (RIM).

Click here to see full article
|
"The research will assist in amplifying investment opportunities in the technology, says Len Pienaar, CEO, FNB`s Mobile and Transact Solutions. "In South Africa, cellphones have become the most easily accessible and convenient way of offering services to remote areas, and an understanding of cellphone usage and trends is necessary to leverage the technology effectively."
"The findings of the preliminary research for the annual Mobility survey confirm that South Africa's cellular market continues to enjoy robust growth, even with market penetration at around 100%," says Deon Liebenberg, Regional Director for Sub Sahara Africa at RIM. "Our own experience reflects that it is not only the number of cellular connections that is growing, but also the applications for which subscribers are using their smartphones. Mobility is changing people's personal and business lives by allowing them to stay in touch with information, applications and other people wherever they are."
Preliminary research for Mobility 2009 was based on analysis of Government and institutional data, as well as personal interviews with key role players in the cellular sector, including network operators and wireless application service providers.
The research shows that the average number of SIM connections, or active cellphone accounts, per cellphone user in South Africa began to grow steadily after pre-paid accounts were introduced in 1996. It grew from an average of one SIM card per phone user in 1997 to 1.2 per user in 2003 and to 1.47 per user at the end of 2008. The gap between users and connections is expected to continue to grow as both consumers and businesses find more innovative approaches to cellphone usage.
"This gives the impression that every South African has a cellphone, but that is obviously not possible," says World Wide Worx MD Arthur Goldstuck, who is leading the Mobility 2009 project. "It's become clear that many pre-paid users have a SIM card for each major network, to avoid incurring the interconnection fee charged for calls between networks. The low cost of new SIM cards - as little as 50c for a starter pack - also gives anyone the ability to have more than one number."
The interconnect fee adds R1.25 to the cost of every call, and has prompted new approaches to cellphone usage in South Africa.
"Cellphone functionality has progressively grown beyond the traditional voice and SMS. With the growing trend towards cellphone banking, mobile media, mobile marketing and mobile internet access. In-depth understanding of consumer perceptions and trends is critical in addressing the needs of the consumer," says Pienaar.
"RIM looks forward to seeing further findings from Mobility 2009. The research should paint an interesting picture of how people and businesses in South Africa are using their smartphones to be more productive and efficient," says Liebenberg. "It will be particularly interesting to see what the latest trends in the mobile Internet space are. We believe that there is a massive opportunity to bring mobile Internet services to more of the country's people through affordable pre-paid services."
|
Source: Cellular News
Rwandan mobile operator, Rwandatel says that it missed its subscriber target for the first half of this year by 30%, but said that its market share had risen by 15%. According to company officials, Rwandatel had set a first half subscription target of 600,000 clients but managed only slightly above 420,000 active subscribers on June 30.
Click here to see full article
|
"This is so far good considering the perception the public had. I can say that our campaigns have been focusing on changing the mindset of the public," she said.
Management is optimistic the 1.2 million will be achieved by the end of the year.
LapGreen Networks, a subsidiary of the Libyan African Investment Portfolio, owns 80% of Rwandatel. Last year, the company signed a US$35 million deal with Huawei to revamp its landline network and replace its CDMA network with a GSM/WCDMA based platform. |
According to figures from the Mobile World, at the end of Q1 '09, the operator had an estimated 260,000 customers, compared to 1.3 million at the only other operator, MTN. Last December, Millicom was granted the country's third mobile license after paying US$60 million for the 15 year license.
Source: Cellular News

Wednesday, July 01, 2009
Digicel has confirmed it has been awarded a GSM licence in the Pacific island state of Nauru, and will become the country’s first wireless network operator when it launches in August. ‘Digicel's expansion into Nauru further adds to our Pan-Pacific presence as well as achieving the milestone of bringing a GSM network for the first time to Nauru,’ said Digicel Pacific CEO Vanessa Slowey. ‘Nauru can look forward to benefiting from a state-of-the art network, with affordable and accessible telecommunications for everyone.’ Minister for Telecommunications, Sprent Dabwido, said, ‘With no existing mobile operator to serve the 10,000 strong population, Digicel's arrival is a giant step forward for communications in Nauru and will benefit each and every individual in Nauru.’ In addition to offering voice services, Digicel will be launching a GPRS/EDGE-enabled network which will make internet access available to all areas of Nauru for the first time.
Nauru is the sixth market for Digicel in the Pacific, with existing operations in Papua New Guinea, Vanuatu, Fiji, Tonga and Samoa, and its 32nd market worldwide.
Source: Telegeography
Etisalat Nigeria has announced reaching the milestone of one million subscribers for its mobile network around seven months after launching in the country. The UAE-owned operator launched commercial GSM services in Nigeria in November 2008 in seven cities, and by the end of the year had just under 400,000 subscribers, boosted by its offer of free network-to-network calls for a six month period.
Source: Telegeography

Friday, June 26, 2009
The Hungarian mobile market continued to shrink in May, though at a lesser rate than in April. At the end of the month, the three Hungarian mobile operators had a total of 11.912 million subscribers, which is nearly 79,000 lower than in April. The National Communications Authority (NHH) also noted that in May, the number of subscriptions per 100 people dropped to 118.9 from the 119.6 recorded one month before.
At the end of May 2008, the number of subscriptions per 100 people was 114.1, while the highest recorded value until today was 121.8 at the end of December 2008.
Click here to see full article
|
Based on the number of active SIM-cards, Vodafone's market share in May dropped from 21.17 percent to 21.07 percent, while T-Mobile and Pannon market shares jumped from 43.97 percent to 44.07 percent and from 34.86 percent to 34.87 percent respectively.
In May, the number of subscribers generating sales (originating or receiving calls in the last three months) also continued to decrease, but at a lesser rate than the whole of the market. The number of clients generating sales dropped by 63,000 to 10,636,000. Vodafone's market share jumped from 21.92 percent in April to 21.94 percent; Pannon's market share increased from 33.40 percent to 33.55 percent, at the same time, however, T-Mobile's share dropped from 44.68 percent the previous month to 44.50 percent.
In May, the clients of the three mobile operators ported 4,088 numbers. According to the data of the NHH, since its introduction in May 2004, a total of 271,861 subscribers have ported their number to a different network operator. |
Source: Cellular News.
At the end of March 2009 global wireless subscribers reached 4.16 billion, an impressive 19% increase from a year earlier and not that far off the pace from what has been experienced over the last five years. However, TeleGeography's GlobalComms Insight forecasts that the average annual growth rate over the next five years will drop to 10%, and the fact that growth from 4Q 2008 to 1Q 2009 was just 4%, is one indicator of that slowdown.

Click here to see full article
|
Over the next five years it is little surprise that there will be notable differences across the regions, with annual subscriber growth rates in Africa and Asia staying comfortably in the double-digit zone, while Europe and North America will be come in at less than 5% per annum. But to truly understand the growth opportunities you need to go deeper and look at individual countries. By defining 'large' wireless markets as having at least 20 million subscribers, at the end of Q1 2009 there were 37 such countries across the world. The growth rates achieved by these 37 during the past twelve months has ranged from zero to 100%, as shown in the figure above. Clearly the growth rates at the top end of the scale are not sustainable over a long period of time, but the average annual growth rate for the group over the next five years will range from 1% to 23%.
'There is a huge range in growth rates, which presents a real challenge to companies targeting the markets,' said TeleGeography executive director John Dinsdale. 'Many will be surprised by some of the countries at the extremes of this range. For example, many countries in Eastern Europe have very rapidly moved from subscriber boom to saturation and minimal growth.'
|
Source: TeleGeography.

Thursday, June 25, 2009
The Vietnamese mobile subscribers are still enjoying lower tariffs as the operators face intense competition among each other, the Ministry of Information and Communications reportedly reveal.The country is experiencing among world’s lowest tariffs, Minister of Information and Communications Le Doan Hop said.
The Vietnamese mobile market, according to Hop, has seen some big changes in past two years. “Through the economic crisis and, earlier, high inflation, the industry’s revenues have continued to grow and the market has been expanding with the entry of many new players”, he added.
The statistics reveal, the country has added 10.4 million new subscribers in 2009, 30% more than it did in the same period in 2008.
Recently the four mobile operators in the country, Vinaphone, MobiFone, Viettel Telecom and EVN Telecom had reduced tariffs by an average of 20%.
Source: Wireless Federation.
Pakistan mobile subscriber base has reached 93.138 million in May, from 91.978 million in April, as per the figures from PTA. Mobilink leads the market with a subscriber base of 28.812 million from 28.381 million in April. Telenor Pakistan has extended its second place position to 20.481 million customers, from 20.107 million. Ufone secures third place with 19.853 million subscribers, up from 19.712 million in April. Followed to this Warid with 17.651 million customers and Zong had 6.263 million at the end of May. The subscribers of Istaphone dropped to 75,662 in May from 137,568 in April. Mobile density is reportedly 57.90 %, up from 57.10% in April.
Source: Wireless Federation.

Tuesday, June 16, 2009
The Mozambican government is reported to be planning a partial privatization of the state owned mobile network operator Moçambique Celular (mCel) the Mozambican Minister for Transport and Communications, Paulo Zucula told the local O País newspaper.
The initial sale will be for just a five percent stake, which will be offered to Mozambicans. Later sales may be opened up to overseas investors, said Zucula.
The government had planned a partial sale last year, although this was cancelled due to "organizational difficulties"
According to figures from the Mobile World analysts, the country ended last year with a shade under 5 million subscribers, representing a population penetration level of 24.3%. mCel is the dominant operator, with a market share of 71% - compared to 29% for rival, Vodacom.
A third mobile licenses is expected to be offered later this year, and Portugal Telecom has already expressed an interest in bidding.
Source: Cellular News.

Friday, June 12, 2009
Malawi's Communications Regulatory Authority (Macra) and the local arm of Zain have clashed over plans to lower phone tariffs in the country. The regulator wants to open the market up to more networks, while Zain blames high taxes and says increased subscribers would lead to lower tariffs.
Click here to see full article
|
"We believe more players would increase competition on the market and this will force the companies to reduce their tariffs for them to remain competitive. We are sure that consumers would be the ultimate beneficiaries from the increased numbers of players on the market," Macra Acting Director General Mike Kumtiya told the Daily Times newspaper. |
The country currently has two mobile networks, Zain and former incumbent, (Telekom Networks Malawi) TNM - while a two more networks have been licensed. Globally Advanced Integrated Networks (Gain) expects to launch its network within the next couple of months, while G-Mobile is still waiting to announce a launch date.
Click here to see full article
|
Zain Malawi's Managing Director Fayaz King countered the claim, saying that "Imagine at Zain, we have mounted a network that could take up to 5 million users but we currently have only 1.5 million customers. We believe that if at least 3 million people started using the Zain network, we could start enjoying the benefits of economies of scale and we can be able to extend the same to consumers through reduce taxes," |
The Mobile World subscriber database estimates that Malawi ended Q1 '09 with just over 2 million subscribers - representing a population penetration level of just 15%. Zain is the market leader with 66.7% of the customer base, with Telecom Networks Malawi (TNM) taking the remainder.
Source: Cellular News.
Pan-Caribbean wireless group Digicel has reported its first net profit since its launch in 2001. Digicel, which comprises mobile phone operations in 31 markets across the Caribbean, Pacific and Latin America, recorded a net profit of USD41 million in the twelve months to 31 March 2009, compared to a loss of USD74 million in the previous year. ‘It is an important landmark for us,’ Digicel’s chief executive Colm Delves told The Irish Times. At a pre-tax level, Digicel posted a profit of USD113 million compared with a loss of USD48 million in the previous period. Earnings before interest, tax, depreciation and amortisation (EBITDA) reached USD680 million, a 34% increase year-on-year. Revenues rose by 11% to USD1.73 billion, while its subscriber base was up 34% to 9.2 million. The company’s net debt at the end of March was USD2.7 billion.
Click here to see full article
|
Digicel said the growth in subscribers was helped by successful rollouts in El Salvador (where it now has about a million customers), Trinidad and Tobago and Suriname. It also launched in the British Virgin Islands during the year. It also has more than two million subscribers in the impoverished state of Haiti and just shy of that figure in Jamaica, giving it market shares of 65% and 75% respectively. Digicel Central America launched in Honduras and Panama in late 2008; together they signed up 1.1 million subscribers in their first five months of operation. |
Source: TeleGeography.
Zimbabwe’s mobile market leader Econet Wireless has announced that it has sourced the necessary funding to expand its network capacity to five million subscribers by the end of 2010. At the presentation of the cellco’s 2008/09 fiscal year results, CEO Douglas Mboweni said: ‘We have secured the resources, through our parent company, Econet Wireless Group (EWG), to expand capacity further, from the current 2.5 million [users] expansion programme, to go to five million.’ Under its current plan, geographical network coverage is set to be almost doubled by extending the footprint to many smaller towns and main roads whilst improving coverage in existing urban and resort areas, whilst an upgrade to 3G services is also in the pipeline. Mboweni said Econet’s financial team had travelled around the world raising funds with ‘spectacular success.’
Click here to see full article
|
Whilst in fiscal 2007/08 Econet’s income came almost exclusively from non-core investments, the financial statement this year features almost no investment income to bolster telecoms performance. Revenue for the twelve months to the end of February 2009 was USD87.9 million, and EBITDA was USD26.6 million, whilst it invested CAPEX of USD123.8 million. The company has re-valued its assets in US dollars, resulting in a depreciation charge of USD18.4 million, causing a net loss of USD2.1 million for the year. Total assets were valued at USD176.4 million whilst shareholders' equity totals USD86.8 million. Econet began charging all customers in US dollars in the last two months of the financial year, which accounted for approximately one-third of the entire year’s turnover. Dollarisation has allowed it to pay off foreign creditors, and restore normal supply and contractor relationships which had been impaired by lack of access to foreign currency because of Zimbabwe’s hyperinflationary economy. Obsolete equipment is also being updated as part of the expansion programme, according to the company. |
Econet reported that its GSM subscriber base increased by 84% in a year from 636,000 to 1.2 million at end-February 2009. It says it is currently signing up around 5,000 new customers per day, but expects to be able to increase this rate dramatically over the next few months as it installs more new network equipment.
Source: TeleGeography

Tuesday, June 09, 2009
Telecom Argentina operates Argentina's third largest mobile network by customer numbers, with 13.17m connections at the end of Q1 09. On an annual basis it was the fastest growing of the country's four networks with a growth rate of 21.0%, up from 16.9% for the prior twelve months. This is an impressive rate given that penetration in Argentina stood at around 110% at the end of the quarter.
Growth was driven principally by the prepaid sector, which was up 23.2% annually, compared to 13.9% for the prior twelve months. At the end of Q1 09 it had 8.82m customers. Contract growth, by contrast, dropped from 23.1% to 16.8%. This left the percentage of contract customers down 1.2pp at 33.0%, with an actual figure of 4.35m. The disparity in growth was particularly marked in Q1 09: prepaid quarterly net additions stood at 522k, the highest figure for two years, while contract gained just 85k, the lowest figure since Q3 03.
Click here to see full article
|
Quarterly SMS (bn), Q2 07 – Q1 09

Despite the slight weakening of customer quality, monthly ARPU remained flat at ARS40. Usage rose slightly, a 2.0% uplift taking the average number of minutes to 98 per month in Q1 09. Far more dramatic was the increase in SMS usage, with the number of text messages in the quarter up 149.5% to 7.41bn.
Telecom Argentina also operates a mobile network in neighbouring Paraguay under the brand name Nucleo. Placed second in the market behind Millicom's Tigo (Telefonica Celular), Nucleo had 1.83m customers at the end of Q1 09. Annual growth stood at 8.2%, down from 27.4%, despite penetration being below 80% at the end of 2008.
The company's domestic mobile revenues increased by 16.4% to ARS1.76bn, mainly due to a 28.1% gain in VAS revenues. By contrast, Nucleo saw quarterly revenues drop 13.1% to ARS93m. Total revenues at the Telecom Argentina group, including fixed operations, were up 14.1% to ARS2.83bn, while operating profit improved by 17.0% to ARS625m. |
Source: Cellular News.

Thursday, June 04, 2009
Dutch mobile virtual network operator (MVNO) Yes Telecom has announced it plans to enter the German wireless market in the summer of 2009. According to TeleGeography’s GlobalComms database, there are over 50 mobile resellers in Germany’s wireless market, but only one, freenet, provides serious competition to the facilities-based operators, following its takeover of main MVNO rival debitel in July 2008. At the end of March 2009 freenet boasted a wireless subscriber base of 18.53 million.
Source: TeleGeography.
Uruguayan state-owned telecoms operator Antel has announced its mobile unit Ancel has reached 1.5 million subscribers. According to TeleGeography’s GlobalComms database, Ancel is closing the gap between itself and rival cellco America Movil-owned Claro Uruguay, which had 1.459 million wireless subscribers at 31 March 2009. Ancel launched a GSM-1800 network including GPRS in Montevideo April 2004, with an EDGE upgrade initiated in the following October. Ancel first trialled 3G services in September 2005, in partnership with Chinese vendor Huawei. 3.5G services were launched in July 2007 in Montevideo and a year later its 3G network was available nationwide. Ancel plans to invest USD81 million in 2009, mainly to expand its GSM and 3G coverage.
Source: TeleGeography.
Telkom Kenya has announced that its mobile arm Orange Mobile has connected a million customers in its first eight months of operation. The company has invested over KES10 billion (USD134 million) in its network infrastructure and attributes its customer growth to its ‘value driven tariffs’. Dominique Saint-Jean, Telkom Kenya’s CEO, said, ‘The success we are celebrating today is not accidental. It has been hard won, thanks to the unceasing commitment and incredible energy of our employees, the loyalty of our customers, the support from our suppliers, the confidence from our investors and the interest from the media. So I would like to say that today is not about Telkom Kenya – it is about all of you, the people who have played such a valuable role in our shared journey to our first million customers.’
Source: TeleGeography.
A report from Bahrain’s Telecommunications Regulatory Authority (TRA) says that the sector was worth BHD303 million (USD804 million) in service revenues in 2008, up by 6.3% from the previous year, with mobile services accounting for 50% of all turnover. Telecoms revenues generated 3.7% of the Kingdom’s gross domestic product (GDP) for the year, according to the watchdog’s figures. The number of fixed lines in service increased by 8% year-on-year to 220,386 by end-December, mainly due to the growth of fixed-wireless connections, while around 70% of domestic fixed line voice traffic was accounted for by fixed-to-mobile calls.
Click here to see full article
|
Mobile subscribers exceeded 1.45 million at end-2008, up from 1.12 million a year earlier. Based on an estimated population of 1.1 million this represented a cellular penetration rate of 131%, according to the report (using an official resident population figure, the penetration rate is 193%). The penetration figure has been pushed upwards by factors including the large number of non-nationals present in the country and multiple phone/PDA ownership for personal and work usage, the TRA said. Pre-paid subscribers represented 84% of mobile users at the end of last year, the report added. Annual international outgoing voice minutes leapt by 49% year-on-year; 90% of outgoing overseas traffic in the fourth quarter was originated on mobile networks.
Total fixed broadband subscribers increased by 50% year-on-year to 110,000 at the end of December, the report continued, whilst there were just 4,000 dial-up subscribers at the same date. Broadband figures include recently launched WiMAX-based services of Zain Bahrain and Mena Telecom which, according to TeleGeography’s GlobalComms database, had signed up 20,000 and approximately 10,000 high speed users respectively by end-March 2009.
|
Source: TeleGeography.

Wednesday, June 03, 2009
The total number of mobile phones registered in Brazil reached 154.6 million at the end of last month, up 0.6% on the previous month’s figure, according to preliminary data published by the national regulator Anatel. The rise was attributed to operators increasing their focus on selling pre-paid SIMs, although Anatel noted that the total net additions of 923,000 in April fell short of the 1.3 million new users reported in March this year.
As at 30 April 2009 Vivo Participacoes, an equal joint venture of Telefonica and Portugal Telecom, continued to hold the number one position in the domestic mobile market with a 29.5% share all subscriptions. It is followed by America Movil’s Telecom Americas (Claro) unit, which claimed 25.8% at the same date, ahead of TIM Participacoes (TIM Brasil) in third with 23.6%. The fourth spot was claimed by Telemar Norte Leste’s Oi with 20.7%.
Source: TeleGeography.
Zimbabwe's smallest mobile network operator, Telecel says that it is planning for a significant expansion of its network coverage. The company says that it has already boosted capacity thanks to upgrading existing base station towers. Telecel Zimbabwe is owned by Egypt's Orascom Telecom.
Click here to see full article
|
The company recently released an additional 100,000 SIM cards onto the market following the network capacity upgrade.
“We will be targeting selected new geographic sites to extend out geographic coverage to most highway corridors, service centres and rural areas in addition to all major cities, towns, commercial and mining centres. (This) will result in even more lines being released onto the market,” the company said in a statement.
The SW Radio Africa news recently said that the cost of SIM cards has fallen to around $25 each. |
The country currently has three mobile network operators. According to figures from the Mobile World analysts, Telecel is estimated to have ended last year with around 232,000 subscribers - representing a market share of around 15%.
South Africa's MTN Group was recently rumoured to be interested in taking a 60% stake in Telecel.
Source: Cellular News.
India has passed the 400 million mark for mobile phone subscribers, although growth slowed from the record breaking figures earlier this month. The Telecom Regulatory Authority of India (TRAI) stated that a total 11.75 million telephone connections (Wireline and Wireless) were added during April 2009 as compared to 15.87 million connections added in March 2009. The total number of telephone connections reaches 441.47 million at the end of April 2009 as compared to 429.72 million in March 2009.
Click here to see full article
|
With this growth, the overall teledensity has reached 37.94 at the end of April 2009 as against 36.98 in March 2009.
The total wireless subscribers (GSM, CDMA & WLL) base stood at 403.66 million at the end of April 2009. A total of 11.90 million wireless subscribers have been added during the month of April 2009 as against 15.64 million wireless subscribers added during the month of March 2009.
In the wireline segment, the subscriber base has decreased to 37.81 million in the month of April 2009 as against 37.96 million subscribers in March 2009 registering a slight decrease of 0.15 million.
Mobile Network Operators by Subscriber Base
| Operator |
Mar '09 |
Apr '09 |
Change |
| HFCL Infotel |
385,596 |
388,285 |
-2,689 |
| MTS India |
768,640 |
599,801 |
168,839 |
| Loop Mobile |
2,204,676 |
2,164,211 |
40,465 |
| Spice |
4,171,587 |
4,133,342 |
38,245 |
| MTNL |
4,529,557 |
4,482,512 |
47,045 |
| Aircel |
19,585,299 |
18,478,325 |
1,106,974 |
| Tata Teleservices |
35,727,203 |
35,121,964 |
605,239 |
| Idea |
40,002,654 |
38,889,457 |
1,113,197 |
| BSNL |
53,174,300 |
52,144,234 |
1,030,066 |
| Vodafone |
71,541,888 |
68,768,998 |
2,772,890 |
| Reliance |
74,836,610 |
72,666,192 |
2,170,418 |
| Bharti Airtel |
96,735,306 |
93,923,248 |
2,812,058 |
| Total |
403,663,316 |
391,760,569 |
11,902,747 |
|
Source: Cellular News.

Tuesday, June 02, 2009
The UAE's two mobile networks, Du and Etisalat are reported to be in talks that could lead to network infrastructure sharing in an effort to cut operating costs.
“Talks are continuing between Du and Etisalat on sharing infrastructure,” Du's CEO, Osman Sultan in a Bloomberg interview. “The current economic situation is pushing” the companies to share infrastructure, he added.
Du has earmarked a CAPEX of US$545 million this year to expand its mobile network.
Earlier this year, Du signed a marketing partnership with Vodafone. The company is 39.5% owned by the UAE Federal Government, 19.75% by Mubadala Development, 19.5% by Emirates Communications & Technology and the remaining stake by public shareholders.
According to figures from the Mobile World subscriber tracker, du ended Q1 '09 with 2.75 million customers, of which just over a million are using its 3G network.
Source: Cellular News.
AIS is the market leader in Thailand, where penetration looks to have finished Q1 09 at around 95%. The rise in penetration has been accompanied by a decline in growth, with annual growth rates falling in each quarter since Q2 07. Although the full Q1 09 set of results for Thailand is not yet complete, it seems almost certain to be the slowest quarter since Q3 05, when there were net additions of just 0.41m. Both True Move and DTAC saw their lowest gains since that same quarter, with uplifts of 0.25m and 0.26m respectively. AIS only just managed to top these figures with a gain of 0.27m, its lowest result since Q1 06 and the second lowest this century.
Although this is a disappointing result for AIS, the fact that growth has slowed so dramatically for all the major operators in Thailand means that it is unlikely to lose its lead in the foreseeable future, barring any extraordinary developments: at the end of Q1 09, it was 8.6m customers ahead of DTAC with a total of 27.58m. Annual growth stood at 9.9%, down from 19.0% for the prior twelve month period. In real terms, annual net additions fell from just below 4m to 2.49m.
Click here to see full article
|
Quarterly Net Additions

AIS’s customer base is dominated by prepaid, which accounted for 90.3% or 24.92m of the total at the end of Q1 09. However, it saw a decline in annual growth from 23.3% to 9.5%, and net additions almost halved from 4.30m to 2.16m. By contrast, the contract segment has seen an improvement in growth compared to the prior twelve months: a loss of 0.30m customers was replaced by a gain of 0.34m, which translates to proportionate growth of 14.6% (compared to -11.5%).
Both contract and prepaid ARPU were down year on year, but prepaid fell further, a 15.6% decline taking the Q1 09 figure to THB195, only just above Q4 08’s all-time low of THB193. Contract ARPU did hit a new low of THB 677, although annually it fell by just 10.4%. Blended ARPU was down 13.9% to THB 241, equal to the historic low of Q4 08. These declines were reflected in the financial figures, with a 5.6% drop in total voice revenue to THB15.4bn, and a 4.1% decline in service revenue to THB20.5bn. EBITDA also fell by 5.0% to THB11.7bn as a result. |
Source: Cellular News.

Tuesday, May 26, 2009
The Hungarian mobile operators Pannon, T-Mobile and Vodafone have in total lost nearly 120,930 subscribers in April, taking the total subscriber base to 11.99 million, NHH reported. Pannon’s market share rose from 34.70% in March to 34.86% in April, while Vodafone’s market share also grew from 21.15% to 21.17%. Whereas T-Mobile’s market share plunged to 43.97% from 44.15% in March. The active subscriber base dropped to 10.69 million, from 10.80 million in March. Mobile penetration fell from 120.8% in March to 119.6% at end-April.
Source: Wireless Federation.
Unitel, the Angolian mobile operator, intends to expand its mobile service to 150 districts in 2009, taking the total coverage to 90%. The company said it intends also to improve the quality and to increase the capacity of the existing network.
Deputy General Director, Amilcar Safeca reportedly said that the Unitel plans to expand also its internet services, already available in the provinces of Luanda, Huambo and Huila, in order to reach more provincial capitals.
Source: Wireless Federation.
Pakistan’s mobile subscriber base has reached 91.979 million at the end of April, up from 91.442 million in March, reports Pakisitan Telecommunications Authority. Mobilink emerged as the market leader with a subscriber base of 28.282 million rising from 28.240 million a month earlier. Telenor took the second position as its subscriber base passes 20 million mark, up from 19.985 million. Ufone’s subscriber base which stood at 19.612 million in March rose to 19.713 million. Whereas Warid posted 17.511 million subscribers versus 17.376 million in March. Zong, the China Mobile subsidiary, ended April with 6.129 million subscribers, up from 5.980 million in March. Mobile penetration in the country stood at 57.10% of the population in April, versus 55.90% at 2008 start.
Source: Wireless Federation.
Brazil has added nearly 923,504 new mobile phones in April, taking the total active mobile lines to 154.5 million, up by 0.6 percent versus the year-earlier period. Of the total active lines, 126.1 million (81.60%) were prepaid and 28.43 million were postpaid. According to Anatel, market regulator, the mobile penetration in the country reached 80.98% at April end, up from 80.56% in March’09 and 66.84% in April’08.
Source: Wireless Federation.

Friday, May 22, 2009
Ancel, the Uruguayan mobile arm of Antel, has posted a subscriber base of 1.5 million. Ancel is reportedly diminishing the gap between itself and rival Claro Uruguay, which had 1.459 million wireless subscribers at 31 March 2009.
Ancel had launched its GSM network offering in Montevideo in April’04 and upgraded EDGE network initiated in October’04. Ancel had first trialled its 3G services in September’05 and had a nationwide coverage by 2008. The operator had launched its 3.5G services first in 2007.
The Uruguayan operator intends to invest USD81 million in 2009 for its GSM and 3G coverage expansion.
Source: Wireless Federation.
Peru will reach over 22.9 million mobile subscribers mark in June, with a mobile penetration of 79.3 lines per 100 inhabitants. Peru beat the forecast, which said a mobile penetration of 80% in 2011. Presently, the mobile penetration stands at 75.8%, up from 24.6% in 2006. Over the last three years, the number of mobile users has jumped by 223.6% to 21.84 million at end-March. The statistics shows that Peru has 747,235 internet subscribers and it is anticipated that figure will increase to 772,000 by June 2009.
Source: Wireless Federation.
Bharti Airtel, the Indian mobile operator, has crossed the 100Mn subscribers mark in the country. Bharti has become the world’s third largest in-country operator. The operator had 96.64 million subscribers on 31 March of this year, which means that every fourth mobile user of India is Bharti Airtel subscriber. The operator holds a 25% mobile subscriber share and 30% market share in terms of revenue.
Source: Wireless Federation.
Vodafone Portugal has ended March with a subscriber base of 5.63 million up from 5.20 million in March'08 and 5.58 million in December'08. The Portuguese mobile operator has added nearly 55,000 new subscribers at the end of Q1'09. 78.7% of the total base was the prepaid segment, generating ARPU of EUR 18.2, down from EUR 21.2 in March 2008 and EUR 18.8 at 31 December 2008.
The postpaid ARPU dropped to EUR 43.3 from EUR 50.9 in the Q1'08. Mobile voice usage reached 2.143 billion minutes in Q1'09, from 2.075 billion minutes in Q3'08. Vodafone Portugal reported full-year revenues of GBP 1.210 billion, up from GBP 1.040 billion in 2008, while its EBITDA increased to GBP 443 million from GBP 373 million.Adjusted operating profit grew to GBP 283 million from GBP 239 million.
Source: Wireless Federation.
Minister of Information and Communication, Professor Dora Akunyili remarks, Nigerians will soon enjoy reduced GSM tariff. Akunyili said this was necessary considering the fact all the operators have recouped their investments from the patronage of Nigerians.
Akunyili said the present economic recession is hitting Nigerians hard and assured that by the time discussions are finalized between the GSM operators and her office, Nigerians will heave a sigh of relief and will be able to use the
operation more effectively and confidently.
She declared that there is none among the GSM operators that can deny it has not made double what it invested in the industry in the last six years.
She said that what is remaining is how to go about the whole thing so that it will be beneficial to all just as she also said that issues of drop calls and other network problems will soon be a thing of the past as the operators have assured to improve their services.
Source: Wireless Federation.
Vimpelcom, the Russian and CIS mobile operator, has commercially launched its mobile services in Cambodia under the brand Beeline. The GSM network in Cambodia was launched by its local subsidiary Sotelco. Beeline services will initially be available across the country’s 11 largest provinces, covering around 37% of the total population. By 2009-end, the operator plans network expansion to 2/3rd of nation’s population.
Source: Wireless Federation.
Hong Kong has ended the month of February with 11.49 million mobile subscribers, rising from 10.72 million, reports OFTA. The prepaid subscriber base rose to 5.35 million, up from 4.99 million a year earlier.
Hong Kong had a 2.5G and 3G subscriber base of 3.58 million at February-end, up from 2.99 million in the year-earlier month, and the number of 3G users rose to 2.91 million, from 2.12 million.
The MVNO subscriber base dropped to 769,509 from 776,958 in 2008. Total SMS sent in a time of year reached 400.52 million in February from 308.35 million. The mobile data usage increased to 44.9 MB per 2.5G/3G mobile user in February.
Source: Wireless News.

Wednesday, May 20, 2009
Warid Telecom has gained 2.5 million active subscribers and now stands at 4th position in two years of its Bangladeshi operations. The company recently announced that the firm is ready and well equipped to help Bangladesh implement its digital network, as pledged by the new government, by 2021.
“Digital Bangladesh is an important part of Warid’s business vision. We are slowly inching to mark improvements in all spheres of our operation which would actually contribute towards implementation of the project,” Muneer Farooqui, Warid Telecom’s Chief Executive, reportedly said.
CEO announced a 50% discount on all Warid to Warid voice and non-voice services for two days in regards to anniversary celebration.
Source: Wireless Federation.

Friday, May 15, 2009
- Total African telecoms market to grow by >USD40 billion by 2013
- Low service penetration rates will allow for growth beyond five year period

As growth in the global telecoms service markets slows, Africa will be the one region which will see double-digit average annual growth rates over the next five years, according to TeleGeography's GlobalComms Insight. Spurred on primarily by a doubling of its wireless subscriber base, the total African market will grow by well over USD40 billion by 2013. At that point it will still have by far the lowest service penetration rates compared to other regions, indicating the opportunity for continued strong growth over subsequent years. Of course growth will remain in check by under-developed economies and widespread poverty among large sections of the population, a result of which is an ARPU level that will continue to lag way behind the rest of the world. Nonetheless Africa represents a strong business growth opportunity for many service providers.
TeleGeography's newest product - GlobalComms Insight - includes subscriber forecasts for wireless, broadband and fixed line markets in Africa on a country-by-country basis, as well as full analysis of the growth in market value, service penetration rates and ARPU. GlobalComms Insight provides comprehensive market forecasts and forward-looking analysis to help clients track market trends and to identify new opportunities.
Source: TeleGeography.
Singtel, the South East Asian mobile operator, has posted a subscriber base of 2.98Mn at March’09-end, up from 2.57Mn subscribers at March’08-end.
Aggregate Subscriber Base (in millions)
Optus:
March 2009 - 7.79Million
Dec 2008 - 7.63Million
March 2008 - 7.14Million
SingTel (domestic)
March 2009 - 2.98Million
Dec 2008 - 2.94Million
March 2008 - 2.57Million
Total
March 2009 - 249.4Million
Dec 2008 - 232.4Million
March 2008 - 185.3Million
Source: Wireless Federation.
Mobile penetration in UAE has risen to 193% at the Februaryf09-end, up from 182% in Septemberf09. TRA has disclosed the stats according to which Du enjoyed a greater market share of 28% from 26% six months earlier, while Etisalatfs market share dropped to 72% in February from 74% in September 2008. Etisalatfs mobile subscriber base reached 7.341Mn in Q1Œ09 whereas Du posted a subscriber base of 2.75Mn at Marchf09.
Source: Wireless Federation.
Vip Mobile, the Serbian mobile operator, has posted Q1Œ09 revenues of EUR 15.4 million, up 27.3% from EUR 12.1 million in Q1Œ08. The EBITDA loss nearly halved to EUR 6.8 million versus EUR 13.0 million a year earlier. The operating loss fell to EUR 21.4 million, from a loss of EUR 23.2 million in the Q1Œ08.
The Serbian mobile operatorfs subscriber base rose by 66.5% from a year earlier to 1 million subscribers at end-March. Vip Mobile had a market share of 10.2% at Q1Œ09 end.
Source: Wireless Federation.

Tuesday, May 12, 2009
Moroccan telecoms regulator the ANRT has issued a report for the first quarter of 2009, showing that the country’s fixed lines in service reached 3.093 million at the end of March, up from 2.711 million at end-March 2008. The latest total included 1.791 million limited mobility fixed-wireless CDMA lines, up from 1.367 million, accounting for 57.9% of the overall fixed market at end-March 2009, up from 50.5% a year earlier. The vast majority of the limited mobility lines are operated by Wana, which accounted for 58.07% of the overall fixed line market by the end of 1Q 2009, ahead of Maroc Telecom with 41.69% of all lines, and Medi Telecom (Meditel) with 0.24%. In the residential segment, Wana's market share rises to 70.16%, but Maroc Telecom still dominates the lucrative business user market, with 96.57% of the country's 381,000 fixed lines registered to companies.
Click here to see full article
|
In Morocco's cellular market, the regulator calculated that there were 23.516 million mobile subscribers at the end of the first quarter, up from 20.616 million a year earlier, translating to a population penetration of over 75%. Maroc Telecom was reported to have 14.630 million, or 62.21% of these lines, ahead of Meditel with 35.57% (8.365 million subscriptions), and Wana with 521,000 users (2.22%) all served under its 3G mobile licence. Wana is preparing to join its two rivals in the 2G mobile arena under a recently awarded 1800MHz concession. 96% of all mobile customers take pre-paid services, according to the watchdog.
Morocco’s 3G wireless broadband subscriptions (mobile and fixed-wireless) nearly quadrupled in a year to reach 339,000 at the end of 1Q 2009, with Wana taking a 62.5% share (212,000 accounts) with its CDMA2000 1xEV-DO-based services, ahead of the W-CDMA/HSDPA-based competition from Maroc Telecom (19%) and Meditel (18.5%).
The country’s fixed broadband ADSL market remains almost completely dominated by Maroc Telecom, which served 98.95% of the nation's 489,000 subscribers (up by just 0.2% y-o-y) by the end of the trimester, with Wana and others sharing the small remainder.
|
Source: TeleGeography.
Reliance ended Q1 with 72.7m mobile customers. This compares with 61.3m three months earlier and 45.8m at the end of the fiscal year 07/08, gains of 10.3m and 26.9m respectively. The company claims to be “India's largest integrated communications service provider” but the claim has something of a hollow ring when its numbers are set alongside those of Bharti Airtel. Reliance may be integrated, for what that's worth, but it just isn't as big as Bharti, either by revenues or customers. Its customer base of 77m (including Broadband) is less than Bharti's 96.7m, while its revenues - INR61.2bn in this latest quarter – fall well short of Bharti's INR98.2m.
Click here to see full article
|
It has the distinction of being the only company to offer both CDMA and GSM services in India, but we are not so sure that this is a positive, as the US standard seems to be in retreat in almost all markets globally.
Mobile Connections and Market Share

That said, with the launch of GSM services in several new circles it has taken market share in the quarter and its growth rate would make any developed world operator green with envy, as indeed would the potential in the country. The sheer scale of the market is hard to take in – Reliance covers some 500,000 towns and 90% of the country's 1.1bn population. Its move into international carrier services and domestic broadband gives it a chance of capturing much of the top end of the business market, while it also offers multimedia services under the name “Reliance Mobile World” which, from our perspective, is more than halfway towards being a great brand.
The KPIs and financials make interesting reading. Subscriber growth has not produced much in the way of revenue growth, as mobile turnover increased by just 8.2% year on year to INR45.0bn. Meanwhile EBITDA was actually down, year on year, at least at the mobile business, albeit only just, at INR16.63 against INR 16.76bn. (Given some of the promotions Reliance has been reported to have been offering to win new business, these figures are perhaps not surprising.) Reliance's MoU have dropped over the year, from 430 to 372 per cusotmer per month, and pricing pressure has reduced average rates by around 10% so that ARPUs are well down – this quarter's INR224 is nearly 30% below the INR317 of a year ago. However, churn has dropped from 1.4% to just 0.8%, which is a partial compensation. |
Source: Cellular News.
Ofcom, the UK’s telecom regulator has released the following data for the Top 4 Mobile Operators with the following observations:
- Total revenue across the UK’s four largest mobile operators declined by 2% in Q4 2008 compared to the previous quarter, reflecting a 3% fall in revenue from calls and other charges and a 2% fall in messaging revenues. There was an overall year-on-year fall in revenue of 1%.
- Total call volumes across the four operators grew by 2% quarter-on-quarter, driven by a 3% growth in call volumes to UK numbers.
- Outgoing international call volumes increased by 6% compared to Q4 2007 (0.2%) while the number of calls made while roaming abroad increased by 10%. (Direct result of lowered charges forced by EU)
- SMS and MMS volumes grew by 11% in Q4 2008, higher than any other quarter in 2008.
- The number of post-pay subscribers increased by 2% in Q4 2008, with the number of pre-pay subscribers remaining virtually unchanged (up 0.04%). Post-pay subscribers accounted for 48% of total subscribers in Q4 2008, compared to 45% in Q4 2007.
Detailed report here.
Source: Wireless Federation.
Morocco has gained 700,000 mobile subscribers in Q1, taking its total subscriber base to 23.52 million, as per the figures revealed by ANRT. The market has grown by 3.07% and mobile penetration stood at 75.43% in first quarter ended in March. Maroc Telecom (IAM) experiences a rise in its subscriber base by 1.21% to 14.63 million from 14.46 million three months ago, holds 62.21% market share in March-end. Medi Telecom, which held 35.57% market share, posted a subscriber base of 8.37 million, up 5.56%. Wana Corporate reports a rise of 19.68% to 521,000 from 435,000 subscribers, captures a 2.22% market share.
Considering the overall growth, the number of subscribers in prepaid segment has grown by 3.13% to 22.58million and postpaid segment stood at 938,000, up 1.7%. The prepaid sector accounts for 96.01% of all Moroccan mobile phone subscribers. 3G arena experiences a rise of 26.555 to 339,314 in Q1 and nearly trebled from 87,278 in the same period a year ago. Wana leads the market share in 3G market with 62.49%, followed to this is Maroc Telecom with 19.03 percent and Medi telecom share stands at 18.48%.
Source: Wireless Federation.

Monday, May 11, 2009
Cell C, the South African mobile operator, has posted a 14% growth in its revenues for the FY 2008, to ZAR8.6 billion (USD1.03 billion). EBITDA dropped to ZAR813 million for 2008, down from over ZAR1 billion in 2007.
The operator added 1.6 million new subscribers to its kitty in 2008, taking the total subscriber base to 6.4 million.
Source: Wireless Federation.

Friday, May 08, 2009
Lebanese cellco MTC Touch, managed by Kuwait-based Zain Group, has completed an infrastructure network upgrade project, expanding its network capacity to 1.2 million lines and rolled out 150 new base stations nationwide, reports AME Info. It also upgraded many existing sites across the country. As part of the project MTC Touch upgraded its Intelligent Network platform to host up to a million pre-paid 'magic' customers, and implemented a core network expansion. The company recently announced it had reached one million active customers, and claimed a 57% market share, ahead of sole rival Alfa, currently managed by Egypt’s Orascom Telecom.
Source: TeleGeography.

Wednesday, May 06, 2009
Movistar Argentina has introduced a new service dubbed as En Casa (’At Home’). The service allows the subscribers to acquire a mobile phone which is operational only at home, with a specific address defined by the user. The incoming calls are free of charge. The subscribers are charged a monthly fee, which includes airtime for voice calls, SMS or internet traffic.
After the available credit is over, the subscribers can top-up their Movistar en Casa account via Movistar Activa prepay cards or make electronic recharges. The offer is part of the Movistar Community services portfolio, which allows the operator’s mobile subscribers to call or send SMS to Movistar en Casa lines and vice-versa at 50% discounted prices.
Source: Wireless Federation.
Grameenphone, the Bangladeshi mobile operator, experienced a slow growth of 63,000 subscribers in Q1'09, taking the company's total subscriber base to 21.057 million, at March-end. Telenor, the parent company, has blamed the slower growth to rise in price of starter kits imposed last year. The number of subscribers is up by 2 million since Q1'08, showing a 6% growth in quarterly revenues in local currency. While usage and interconnect revenues grew, ARPU dropped by 13% driven by price erosion.
The EBITDA margin grew to 59.3% compared to 47.3% last year mainly due to higher revenue combined with lower subscription acquisition costs. Capex dropped in line with traffic, to NOK 281 million from NOK 433 million a year ago.
Source: Wireless Federation.
Mobile penetration in Uganda is expected to increase from 39.0 percent in 2009 to 70.7 percent by 2014, prompted by the successful liberalization of the sector and increased competition, according to a new report from Pyramid Research.
Although Uganda is one of the smallest markets in the region, it is also one of the fastest growing markets in Africa and the Middle East, notes Sylwia Boguszewska, analyst at Pyramid Research and author of the report. In the next five years, Pyramid anticipates Uganda will experience the second highest percentage increase in terms of mobile subscriptions among the African countries (after Cameroon). "Mobile penetration rose from just 1.9 percent at year-end 2002 to an estimated 39.0 percent in 2009," she says. "Pyramid expects it will increase further to reach 70.7 percent penetration by 2014, while the number of mobile subscriptions will exceed 27 million," she adds.
The Ugandan telecom sector has gone through a major transformation, notes Boguszewska. "As a result of a successful liberalization process, Uganda now boasts five mobile operators, three of which are well-established: MTN Uganda, Uganda Telecom, and Zain Uganda," she explains. "They were joined by Warid Telecom, which entered the market in February 2008, and Orange Uganda, which launched in March 2009," she adds. Anupam is due to enter soon, increasing the number of mobile operators to six.
Increased competition is driving down prices, with new entrant Warid being particularly aggressive to attract subscribers, and MTN's Zone pricing scheme has also shown high adoption. "Last year, the three mobile operators -- MTN Uganda, UTL, and Zain -- commanded 85 percent of mobile market subscribers, while Warid Telecom, despite its late entry in 2008, managed to gain a significant 15 percent market share," Boguszewska says.
Source: Cellular News.
Digicel Haiti has announced that it has reached a total of 2.1 million mobile subscribers, three years after launching its GSM network. Digicel quickly became Haiti’s largest mobile provider with an initial investment of USD260 million – the largest ever single private foreign investment in the country. Its launch lowered the cost of mobile services, and drove cellular penetration up from under 7% to over 35% today, and it claims to have a current market share of over 60%. Digicel Group is headquartered in Jamaica and incorporated in Bermuda, and has operations in 31 markets worldwide. Its Caribbean and Central American markets comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda, Bonaire, the British Virgin Islands, the Cayman Islands, Curacao, Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana, Haiti, Honduras, Jamaica, Martinique, Panama, St. Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago and Turks & Caicos. The company also has coverage in St. Martin and St. Barths. Its Digicel Pacific arm comprises operations in Fiji, Papua New Guinea, Samoa, Tonga and Vanuatu, whilst it has a deal pending to buy an operator in the Cook Islands.
Source: TeleGeography.
El Salvador mobile subscriber base has reached 6.9 million at 2008-end, reports Signals Telecom Consulting. According to Signals analyst Elias Vicente, the mobile subscriber base growth has resulted into lowered ARPU and the acquisition of a second and even third line per user.
El Salvador, in coming times intends to serve as a “laboratory market” for the launch of new service bundles and value-added multimedia services.
Fixed and wireless internet and pay-TV services will be the key reasons of growth in the domestic mobile market within the next five years.
Source: Wireless Federation.

Monday, May 04, 2009
The Commerce Commission of New Zealand (ComCom) has released its annual telecoms monitoring report, announcing that over USD882 million was spent on capital investment in 2008. The expenditure was largely accounted for by Telecom New Zealand updating its existing infrastructure to accommodate its strategic transition to an all-IP network, and NZ Communications, New Zealand’s long awaited third mobile operator – having secured 3G spectrum in 2001, rolling out the first stages of its mobile network.
The report also states that broadband subscriptions reached 915,000 by the end of December 2008, with Telecom NZ holding a 57% share of the overall market, a 4% drop since 2007. The mobile sector reported a 16% rise in call minutes over the course of the year, with mobile penetration reaching 111.9% at the end of December 2008, according to TeleGeography’s GlobalComms database.
Source: TeleGeography.
Hong Kong’s mobile data usage surged to 147 TB in January or an average 44 MB per 2.5G/3G mobile user, according the statistics available from Ofta. This shows four times and fourteen times the mobile data usage over the same period in 2008 and 2007 respectively. The subscribers of 2.5G/3G mobile phone have grown by 15% to 3.35 million in January on a year-on-year basis. The subscriber base totals to 11.43 million and penetration rate is over 163%. The growth of mobile data usage is attributable to the offer of competitive service packages by mobile network operators and the increasing popularity of smartphones available in the market, Ofta said.
Source: Wireless Federation.

Tuesday, April 21, 2009
According to a recent survey it is seen that nearly 52% of the French mobile subscribers own a handset that is capable of connecting to the internet. However, nearly 45% of the mobile phone subscribers had a mobile internet subscription and 20.5% were online with their handset at least once a week. 48% of the total surveyed said that they have upgraded their handsets in past 1 year, 36% of these have chosen 3G and 3G+ multimedia touch screen handsets. The sites which were most visited were operator portals, which accounted for 15.1 percent of visits, followed by search engines (14.2%), practical sites (13.9%), information sites (9.8%), entertainment sites (9.1%), and specialised news sites (8.7%). Nearly 21% of mobile internet subscribers said that they have visited a social networking site in the last six months, led by Facebook with 14.5% of connections. Only 8% of the total made a purchase from a mobile e-commerce site.
Source: Wireless Federation.

Wednesday, April 15, 2009
The technology story in the Caribbean & Latin America (CALA) region is simple: most US based technologies are in full retreat, while the international GSM/W-CDMA standards are proliferating. During the quarter, the number of customers connected to AMPS, TDMA and CDMA systems declined by 4.4m overall, bringing the number of disconnections so far this year to 19.9m, or 5.2% of the starting base.
Click here to see full article
|
TDMA has been hardest hit, proportionately, as the number of customers using the technology collapsed, from over 10m to not much more than 2.5m - an overall decline of 73%. The AMPS technology that was originally deployed in most of these markets has been in decline for years and we estimate that over the course of this year, more than half of the remaining users disconnected, leaving a rump of not much more than 60k, mainly in rural and remote areas of the continent.

|
CDMA networks experienced the largest drop in absolute terms. It is only two years since Vivo began selling GSM handsets in Brazil, but over that time, the number of CDMA connections has dropped from 64.9m (of which 26.0m were in Brazil) to 41.7m. The disconnection rate appears to be accelerating slightly, the quarterly average increasing from 2.7m per quarter during 2007 to 3.1m per quarter in 08. Brazil, obviously, is not the only market where the technology is in retreat, with similar – or steeper - declines being seen in Argentina, Chile, Colombia, Ecuador and Peru. Only Venezuela has seen an increase in users over the year but following CANTV’s decision to move to GSM, that is unlikely to be repeated in 09.
GSM has, predictably, been the main beneficiary. The range of low priced handsets available for this technology gives it a material advantage and over the year, it added a further 87m users, which took the regional total GSM base past 400m. GSM, of course, faces a growing “challenge” from its own 3G variant, W-CDMA. This first became available in Q2 07 although the overall base has reached just 5.3m (of which 4.9m were added in 2008).
Source: Cellular News.

Wednesday, March 18, 2009
Click here to see full article
|
Mobile penetration in Kenya's telecom market will grow by 95 percent over the next five years, a market growth that will reflect intense competition among network operators and lead to a rapid uptake of mobile data services, according to a new report from Pyramid Research. |
"Kenya shows impressive growth rates with significant opportunity," notes Dearbhla McHenry, analyst at Pyramid Research and author of the report. "By the end of 2008, Kenya had more than 15.0 million mobile subscribers, with a mobile penetration rate of 39 percent. The subscriber base is expected to rise to 29.28 million, or 66.7 percent penetration, by year-end 2013."
Increased competition is helping to fuel demand for mobile services in Kenya, McHenry says. "Until 2008, the Kenyan mobile market was a duopoly consisting of Safaricom and Zain. That has now changed with the entry of two new players - Econet and Orange. Since their entry, there has been a fierce price war with operators slashing tariffs and introducing new air time promotions, making their services more affordable for the wider population."
Total revenue of Kenya's telecom market is forecast to grow by 42 percent from $1.39 billion in 2008 to $1.98 billion by 2013, with 78 percent of the total revenue to be generated by the mobile sector. "Mobile data will be the telecom sector's fastest-growing revenue stream, increasing in revenue from $62 million in 2008 to $224 million in 2013, partly due to the launch of 3G services but also to the explosive growth of low-tech, low-margin mobile data services, particularly mobile money transfers," says McHenry.
Source: Cellular News.

Wednesday, March 11, 2009
Iraqi wireless operator Asiacell announced it has expanded its network to cover the regions of Al-Anbar and Diyala. The company’s services are now available to an additional three million potential subscribers, and now cover all of the country’s 18 governorates. Asiacell CEO, Diar Ahmed, said: ‘Today, Asiacell is at the forefront of Iraq’s mobile telecoms sector, having achieved its goal of becoming the first company to effectively bring its services to every Iraqi citizen, wherever they may be.’ Asiacell is Iraq’s second largest cellco by subscribers and was awarded a 15-year national GSM-900/1800 licence in August 2007 at the cost of USD1.25 billion. At the end of 2008 it had a wireless subscriber base of six million, up from 4.2 million a year earlier.
In a separate story, Middle East Business Intelligence has reported that Iraq’s finance ministers plan to enforce a clause requiring operators to float around 25% of their capital on the Baghdad bourse as a condition of the licences they bought in August 2007. The authorities have given the country’s mobile operators until 2010 to fulfill the new agreement. According to the report, the country’s three largest mobile companies, Asiacell, Zain and Korek Telecom, will make a significant difference to the overall capitalisation of the market, which currently stands at just USD2 billion.
Source: TeleGeography.

Tuesday, March 10, 2009
Total contracts awarded within the wireless industry for 2008 reached 550 as activity surged in Q4 according to the latest report from EJL Wireless Research.
"Nokia Siemens Networks secured 56.2% of total contract awards during the December 31, 2008 ended year, beating Huawei (15.5%) and ZTE (14.5%). Chinese OEMs captured 30% of overall contracts while each major base station vendor secured at least one win during the year," says founder and President, Earl Lum.
"Demand remained heavily concentrated in Asia Pacific while surprisingly, Latin America was the second most active region during the year. Chinese OEMs continue to dominate the CDMA2000 segment as they captured 67% of global contracts in 2008. Nokia Siemens Networks led the way with 67% of total WCDMA/HSPA/HSPA+ awards, followed by Huawei with 17.1%. Nokia Siemens Networks also led the GSM/GPRS/EDGE category with 65% of overall contracts," says Lum.
Click here to see full article
|
The base station contract analysis reports are issued on a quarterly and annual basis and provide a perspective on the global cellular/PCS base station contract awards and demand for mobile base station equipment covering all major OEMs including Alcatel-Lucent, Ericsson, Huawei Technologies, Motorola, Nokia Siemens Networks, Nortel Networks, and ZTE. |
Source: Cellular News.

Monday, March 09, 2009
Bahrain based mobile holding firm, Bintel has announced that it has been awarded a 15-year mobile operator license in Gabon - making it the fourth operator in the country. The company is expected to launch its network in the third quarter of 2009.
Click here to see full article
|
Bintel estimates its initial investment in 2009 in Gabon to be in excess of US$50 million. Bintel is targeting a 6 to 8% share of the Gabon market within its first 12 months and a 30% share within its first 10 years.
"Bintel is committed to redefining Gabon's telecommunications landscape by building a state-of-the-art mobile communications network and providing customers the most advanced mobile services," said Mr. Alawi Baroum, CEO of Bintel. "Bintel's entry into Gabon would further intensify competition in the highly liberalized domestic market, which would ultimately work to the advantage of end users who would have a wider portfolio of services to choose from and can also benefit from more competitive pricing."
According to figures from the Mobile World subscriber tracker, the country ended last September with an estimated 1.36 million mobile phone users - representing a population penetration level of 91%.
Gabon is more prosperous than most nearby countries, with a per capita income of four times the average for Sub-Saharan Africa. This is in large part due to offshore oil production. |
Source: Cellular News.

Thursday, February 26, 2009
The telecommunication Regulatory Authority of Gabon, Artel, has awarded Bintel a 15 -year mobile licence. The incumbent is expected to commence its services in the third quarter of 2009. Bintel estimates its initial investment in 2009 in Gabon to be in excess of USD 50 million. As per the terms of the agreement, the company is licensed to provide the latest voice and data services to customers in Gabon, including high-speed data and video conferencing. The licence acquisition is followed by the appointment of Gilles Villenaut as general manager for its Gabon operations. Gabon has expected mobile penetration rate to reach around 90% and in 2011 it is estimated to reach 120%. At present, Zain holds 58% of the market share, followed by Gabon Telecom with 34% and Moov stands with 8%. Bintel is intending to capture 6-8% of the Gabon Market in the first year and targets 30% share within its first 10 years.
Source: Wireless Federation.

Friday, February 20, 2009
Japanese operator, DoCoMo is launching a service which offers a local South Korean phone number to its customers roaming into that country - which it says will lower phone call costs by around 60%. Customers will also retain the DoCoMo numbers that they use in Japan.
Click here to see full article
|
The new Local Number Roaming service allows customers to obtain mobile phone numbers via DoCoMo's partner KT Freetel (KTF). By manually selecting KTF's network after starting up their phones once inside the country, they will be able to place voice and video calls for lower charges compared to using WORLD WING, DoCoMo's conventional international roaming service. In addition, there will be no charge to receive calls from any location, domestic or international.
Local Number Roaming is a result of collaborative initiatives developed by DoCoMo and KTF's joint Business and Technology Cooperation Committee.
Also announced today, KTF customers will be able to obtain Japanese mobile phone numbers through DoCoMo to take advantage of cheaper calling rates while traveling in Japan. |
Source: Cellular News.

Wednesday, February 18, 2009
Mexico has joined the growing number of countries which are requiring PrePay mobile phone users to register their details with the networks - ostensibly to help in cutting crime. The Senate passed the bill last September, and it became law this week - coming into effect from April.
Network operators have been given one year to register their existing customer base and will have to start collecting proof of identity, including fingerprints for all new sales.
In most countries which have introduced mandatory registration processes, the reported subscriber base has dropped sharply, in some cases by as much as ten percent - largely due to multiple SIM ownerships not being declared.
Source: Cellular News.

Tuesday, February 10, 2009
Wana, the Moroccan fixed line incumbent, grabs the third GSM licence in the country. Country telecom regulator ANRT reportedly said that Wana’s bid offered a perfect blend of finacial and technical techniques along with coverage, investment and pricing. Wana will operate as a GSM service provider competing against Maroc Telecom and Meditel.
Source: Wireless Federation.
Brazil finished 2008 counting 122.7 million prepaid cellulars, what represent 81.47% from the 150.6 million cellulars in the country.
Prepaid cellulars started to be sold in Brazil in 1998, by CTBC Celular, and the prepaid cellular stake in the cellular total in Brazil grew quickly until reach 80.8% in 2005. This percentage remained stable in 2006 and 2007, getting back to growth in 2008.

Click here to see full article
|
The prepaid cellulars stake in the cellular total isn't uniform in the whole country. It's bigger in the North and Northeast and smaller in the South and Southeast.
Prepaid represents more than 80% of the cellulars of the main Brazilian operators and, despite representing a smaller ARPU than the postpaid, it's a very important revenue source for these companies. Oi, for example, is the operator with the biggest prepaid percentage and smaller ARPU.
|
Source: Teleco.
The International Finance Corporation (IFC), a member of the World Bank Group, is investing US$30 million in Wataniya Palestine, as part of a US$85 million loan, to help build a mobile-phone network in the Palestinian West Bank. Wataniya Palestine is a joint venture of the Palestine Investment Fund and Wataniya Telecom, which is majority-owned by Qatar’s Qtel.
"The network being built by Wataniya Palestine will use the internationally popular GSM standard. It will help address the Palestinian territories telecommunications needs, which are critical for supporting economic growth and integration. Wataniya Palestine’s entry into the sector will improve the current low tele-density, increase competition, and help accelerate market growth.
“IFC’s investment shows a vote of confidence in the economic prospects of the Palestinian territories telecommunications sector, which is an essential element of building the local economy, creating jobs, and offering customers new, high-quality products and services,” said Allan Richardson, Wataniya’s Chief Executive Officer.
Click here to see full article
|
“Mobile telecommunications enable access to knowledge and services, innovation across sectors, and more efficiency in the delivery of government and business services,” said Mohsen Khalil, IFC Director for Global Information and Communication Technologies. “IFC is committed to promoting growth and opportunities in the Middle East by facilitating cross-border investments and transfer of capital across the region.”
IFC previously joined forces with Wataniya Telecom on an investment to expand mobile telecommunications in Maldives. In the past year, IFC has also supported Palestinian banks in housing finance, student loans, and trade finance.
|
Source: Cellular News.

Monday, February 02, 2009
Israel's Ministry of Communications has announced that it is to permit the use of MVNOs in the Israeli market. The Ministry said that several companies have already expressed their interest, with regard to all the different models existing in the world, including full MVNO.
Click here to see full article
|
Minister of Communications Ariel Attias: "The entry of additional operators to the mobile sector will change the game and will alter the balance that has prevailed among the companies in the recent years; any step taken to increase the competition in this sector, ultimately assists in reducing prices for the consumer, mainly in the private sector. We believe that the entry of more mobile operators to this market, along with the already existing number mobility, will boost the competition among the companies and will encourage them to come up with more attractive offers for the customers".
The Ministry of Communications has prepared a draft "License for the provision of mobile telephony services involving the use of a mobile telephony network of another company", and has laid down the main conditions and requirements of applying for an MVNO license.
|
Source: Cellular News.

Thursday, January 29, 2009
The European Commission says that it is earmarking €1 billion (US$1.3 billion) to achieve 100 % high-speed internet coverage for all European citizens by 2010 as part of the European Economic Recovery Plan. On average, 93 % of Europeans can enjoy a high speed online connection but in some countries broadband covers less than half of the rural population.
Click here to see full article
|
Broadband access is increasingly widespread in the EU, following substantial EU efforts and a pro-competitive regulatory framework in place since the liberalization of the telecoms sector. In December 2007, broadband connection was available to around 93% of Europeans, mostly in densely populated areas.
However 30% of the EU rural population still has no access to high speed internet.
At the start of 2008, on average, more than half of European users enjoyed advertised internet speeds above 2 Megabits per second, which is considered the minimum to enable advanced services like television over the internet, and about 10% of users had access to more than 10 Megabits per second. This compares favourably with the USA, where 37% of broadband lines offer at least 2.5 Megabits per second and only 4% have speeds equal or above to 10 Megabits per second. These are however "advertised" speeds which overestimate actual speeds. In fact, internet speed worsens when the distance between the exchanges and the location where the user is based is great and/or when several users access the internet simultaneously.
Internet speeds increase with the share of fiber-based high-capacity access technologies. Fiber accounts for 45% of all broadband subscriptions in South Korea and 39% in Japan. These numbers are similar between the EU and the US (1.4% and 1.5% respectively) but much lower than in Asia.
In terms of penetration rate (broadband take up per population), which was 21.7% in EU27 in July 2008, Denmark, The Netherlands, Sweden and Finland lead the rankings in the OECD area penetration rates above 30%. The penetration rate in the US is 25%.
The EU money will be used in addition to private investments and national funding. It means that rural areas which are not covered by existing plans to roll out or upgrade broadband will be able to participate in the web economy very soon. In particular, this means that areas that are already at an economic disadvantage will be better placed for economic recovery already in 2009.
European rural areas suffer from much lower coverage rates than urban or suburban areas and this is where the European help should focus. In some countries, even traditional telephone networks are not available in rural areas (in Bulgaria or Romania for example). In others, lack of investment and difficult geographic conditions has limited broadband coverage to less than 50% of the rural population (Greece, Poland, Slovakia). Even countries with a more developed infrastructure still have rural coverage rates below 80%. This is the case of the Czech Republic, Estonia, Ireland, Latvia and Lithuania. Finally, even in the most developed countries (Germany, France, Italy, Austria), there are still areas that, due to their geographical location or mountainous landscapes, do not enjoy the same conditions as the rest of the country.
Finally, these figures relate to the coverage of DSL, which is the most widespread access platform in Europe. But they do not take into consideration people who live too far away from telephone exchanges to have access to DSL. This is around 3% of the population in the EU15 and much more in the new Member States. Thus, there is considerable scope for investment to ensure all Europeans have the right to broadband.
|
Source: Cellular News.

Wednesday, January 28, 2009
Azerbaijan has taken a step further in lowering the mobile tariffs calling for greater savings for the consumers. According to Eliyar Temirov, officer of Azerbaijan’s Ministry of Communications and Information Technologies, the tariffs levied by operators, on an average, are higher that the tariffs in other nations. “To offset the balance in the market and to prevent unfair competition, asymmetrical regulation is exercised in the international practice by to supporting a new entrant against the established incumbent service providers. Moreover, the mobile call prices may be reduced by cutting the fees that operators levy for switching callers between each other’s networks,” he added.
The ministry has talked about this to Azercell and Bakcell, convincing them to cut down the tariffs. The Tariff Council has given a green signal to the lowering of so-called termination rates that mobile operators can charge each other to connect calls between their networks within the antimonopoly policy.
Source: Wireless News.

Monday, January 19, 2009
In a statement last night, the Lebanese government said that Kuwait’s Zain Group and Egypt’s Orascom Telecom had both been awarded one-year contracts to manage the operations of the country’s two GSM mobile networks, commencing 1 February. An extension to Zain’s contract to run Mobile Interim Company (MIC 2), under the name MTC Touch Lebanon, officially ran out last month, but the Kuwaiti group has been allowed to remain at the helm, whilst Orascom will take over the reins of MIC 1, branded as Alfa, from the Ministry of Telecoms (MoT), after the state cancelled the operating contract of Fal Dete Telecommunications, a joint venture of Deutsche Telekom subsidiary DeTeCon International and Saudi Arabia's Fal Holdings, at the beginning of December. Zain and Orascom beat off a rival bid from France Telecom. Information Minister Tareq Mitri said: ‘These two companies have...experience in the Lebanese market that allows them to manage well and positions them as the best companies to run this sector.’ According to local press, the new contracts are worth USD145 million. The privatisation of MIC 1 & 2 has been put on hold until after the next elections in May 2009.
Source: TeleGeography.

Friday, January 16, 2009
Vivo, the Brazilian incumbent, ended 2008 with a subscriber base of 44.9 million, having a market share of 29.8%, up from 27.7% in 2007. According to the telecoms regulator Anatel, Vivo’s rising market share was driven by dint of its takeover of Telemig Celular in mid-2008. Claro stood at the second spot with the market share of 25.7% a percent ahead of TIM Brasil at 24.2% market share. Oi finished 2008 with 29.9 million subscribers. As at 31 December 2008, Anatel reported 150.6 million mobile connections in Brazil, rising by 29.6 million or 24.5% when compared to end-2007. On the contrary, mobile phone sales fell 23% year-on-year in December 2008 to just 3.6 million units, showing the rising impact of the global recession.
Source: Wireless Federation.
The MVNO phenomena is growing rapidly in the Netherlands as the number of subscribers signing upto one of the country’s 50 or so virtual providers has reached 3.51 million on 30 September 2008, up by 10% year-on-year. The MVNO’s now account for 17.3% of all SIM cards on the market at the given date, up from 17.0% a year earlier.
The MVNO market in Netherlands has seen entry of new players to the market in six months uptil Sept-2008 namely, Easer Mobile, Tok Toe Mie, Youfone and Internet Overal. In addition, more entrants have since launched commercially in the country or announced plans to launch in early 2009, such as Blyk and Telesur, the Dutch group said.
Source: Wireless Federation.

Tuesday, January 06, 2009
Cellular had a record growthin 2008, surpassing 2007 in all the months between January and November.
The competion got stronger between the four main operators (Vivo, Claro, Tim and Oi) and was responsible for this growth:
- Vivo got back on growth track with GSM and consolidated its leadership in market share by the acquision of Telemig. The company is completing its national coverage by starting to operate in States in the Northeast.
- Claro overcame Tim and reached the second position in the Market Share ranking in Aug/08. Claro also reached national coverage by the beginning of its operation in the Northern region of the country.
- Tim remained in the competition during the year, even though it had lost stake in the second semester of 2008.
- Oi grew strongly in all the year by the minutes promotion with reduced prices from the "caller" campaign. This growth was accelerated in October by the beginning of its operations in São Paulo.

One of the consequencies of this competition was the growth in minutes promotions with reduced prices, or free, which led to a growth in the cellular use in Brazil. The average monthly minute use per client (MOU) jumped from 83 minutes in 3Q07 to 96 minutes in 3Q08.
3G finally was launched in Brazil and became already an alternative of broadband access. Claro was ahead and associated its brand to 3G. In the last months, Vivo accelerated the implementation of this service and now the company is competing with Claro for the leadership in quantity of covered cities (more details). In the 3G path, it's worth mentioning the lauching of iPhone 3G in brazil.
Source: Teleco.

Tuesday, December 23, 2008
Between 1990 and 2007, the telecommunications sector grew almost five times faster than the economy in Mexico and has gone a long way in reducing the economic and social difficulties in this country. Buoyed by dynamic technological progress in recent years, the telecommunications sector has attracted increased investment and productivity, providing further momentum to the economy.
New analysis from Frost & Sullivan finds that the market earned revenues of $28,994 million in 2007 and estimates this to reach $36,399 million in 2013.
"The wireless telephony traffic's growth rate was 60.5 percent in Q1 2008, an increase of more than 20 percent over Q1 2007, meaning that this is the most dynamic sector of the telecommunications industry," says Frost & Sullivan Consulting Analyst Jose Manuel Mercado. "In 2007, it contributed 6 percent to the gross domestic product (GDP); in 1990 the contribution was around the 1.1 percent."
Click here to see full article
|
This growth was possible due to the considerable advances in infrastructure, service quality, and coverage. For example, between 1990 and 2007, the investment in infrastructure was nearly $30,000 million, the whole network was digitalized, and populations with access to telephone service increased as did the number of public telephone lines. In fact, the telephone density in the country rose from 6 to 19 lines per 100 inhabitants, while mobile lines increased from 0 to 65 lines per 100 inhabitants.
Telecommunications' predominant role in the economy will be reinforced with the entry of fresh competition caused by the introduction of new regulations included in the Convergence Agreement. The pace at which operators will grow in the telecommunications sector in Mexico and the way they position themselves in their respective markets will depend on the regulator's consistency in ensuring companies' adherence to the new rules.
Number portability, interconnection agreements, and interoperability will foster an environment where emerging companies will be able to compete fiercely with the incumbents. These new rules will encourage growth as well as benefit end users. They will achieve this dual benefit not only due to the competition-induced lower tariffs, but also because of better customer and value-added services, as triple and quadruple play solutions will make telecommunications simpler and more manageable.
"Incumbent companies may try to interfere with these new norms, creating contracts that prohibit end users from changing from one company to another within a certain timeframe, thereby causing the number portability agreement to fail," notes Mercado. "The regulator's attitude and empowerment will be crucial to eliminate this legal bias." |
For instance, Telmex is starting to offer bundled services with the condition that the subscriber signs a contract that is binding for a minimum of 12 months. This contract clearly violates the number portability idea of free movement from one company to another with the same number. Once the violation by the operator is reported to the regulator, it will be stripped of its TV-Pay concession or any other concession title for triple play solutions.
Source: Cellular News.

Friday, December 19, 2008
Mobitel, Sri Lanka, has launched a new pre paid tariff named SMART Pre Paid which will enable its Sri Lankan subscribers the lowest call rates in the country.
SMART Pre Paid Tariff will offer value to existing and potential subscribers, with outgoing Voice/Video calls at Rs.1 per minute and SMS at 50 cents per message to one nominated Mobitel M Best Friend number, outgoing Voice/Video calls at Rs.2 per minute to Mobitel numbers, and Voice/Video call rates to other local Mobile or Fixed Line numbers at Rs.4 per minute 24 hours of the day. Further, this plan allows users to enjoy Incoming Free Voice/Video calls from Mobitel, Local fixed lines and overseas numbers anytime of the day.
Click here to see full article
|
Current SMART users can transfer their existing plan to this new plan absolutely free by dialling #111# on their handset, while new connections based on this plan can be purchased from the Mobitel Branch, SLT Teleshop, Sri Lanka Telecom Regional Telecom Office, Singer Mega, Authorised Mobitel dealers and Sub dealers.
|
Source: Wireless Federation.
Growth abandoned the West European cellular market in Q3 2008, as the global recession hit mobile spending patterns, according to a report issued by Strategy Analytics. While mobile data revenues continued to perform well, the voice market took a turn for the worse around the globe.
Collectively, mobile operators performed well in Q3 2008, with subscriber growth remaining very strong and profit margins stable. However, the mobile voice market did see revenue growth slow more than expected. Many operators in mature markets are recording falling voice revenues, and some operators in emerging markets such as China, Indonesia and Thailand are now finding it tough.

Click here to see full article
|
“Mobile voice revenues have been falling by around 1% per annum over the last 18 months in Western Europe, and dropped by over 3% in the third quarter,” comments Phil Kendall, Director Global Wireless Practice and author of the report. “Users are still talking more than a year ago, but they are also pocketing some of the savings offered by falling prices. Coupled with weakness in sectors such as international roaming, as companies cut back on business travel, the European mobile voice market is set for a challenging 2009.”
Susan Welsh de Grimaldo, Senior Analyst, Wireless Network Strategies, adds “Mobile data revenues grew by 20% globally in Q3 2008, and these have kept service revenues growing in many mature markets. However, even these could not save the European market last quarter from service revenue growth coming to an abrupt halt.”
|
Source: Cellular News.

Tuesday, December 16, 2008

Amidst relentless pressure on prices and a growing array of international communications services, international voice traffic continues to grow. According to new data from the annual TeleGeography study of the international voice market, international voice traffic reached 343 billion minutes in 2007, and is projected to reach 385 billion minutes in 2008.
Mobile phones have been a key driver of growth, due to subscriber growth in developing countries and the recent emergence of low-cost international mobile calling plans. In 2007, nearly one-third of international calls were placed from mobile phones, and 45% of international calls were terminated on mobiles. Current trends suggest that by 2009, more international calls will be made to mobile phones than to fixed lines.
Source: TeleGeography.

Thursday, December 04, 2008
Digicel, the largest telecommunications operator in the Caribbean and recent entrant to the Central American market, today launched operations in Panama — its third Central American market and 31st market world-wide — with an investment of US$350 million. Digicel now offers seamless mobile telecommunication services across Central America, with operations to date in El Salvador, Honduras and Panama.
According to the Panama Ministry of Economy and Finance, the Panamanian economy is expected to grow 7.5 percent by 2009. With a population of 3.4 million, mobile penetration is currently at approximately 71 percent. Having built the most modern nationwide GSM network in the country, Digicel is well positioned to maximize growth by offering service for the first time to many communities in Panama not previously served by incumbent operators.
Click here to see full article
|
The Digicel Panama network is underpinned by world-class 24/7 customer service, a nationwide network of more than 300 retail distributors and in excess of 15,000 recharge outlets nationwide. The company employs 300 people directly in its Panamanian operations as well as creating the indirect employment of 1,000 people.
“Panama promises to be a very exciting market for us and we are proud to offer the best coverage, best service and best value to the people of Panama,” said Digicel Chairman, Denis O’Brien. “Digicel is confident that it can stimulate growth in the mobile market in Panama by increasing mobile penetration within five years to 90 percent ensuring that more and more Panamanians have access to an affordable high-quality mobile network.”
Digicel won a competitive bid process for a license to operate a GSM mobile network in Panama in May 2008. With 20 years experience in telecommunications, Digicel Panama is led by Raul Burgos, whose past accomplishments include senior management positions in SunCom Wireless, Nextel, Telecorp and AT&T Wireless.
With operations in 31 markets world-wide and more than 6.4 million customers, Digicel’s investment in the Caribbean, Central America and South Pacific now exceeds US$3.4 billion. As the largest mobile operator in the Caribbean, Digicel is renowned for reshaping the competitive landscape through revolutionary offers and promotions. In El Salvador, Digicel trebled its customer base in its first year of operation to move from the fourth to the second mobile operator in the market.
|
Source: Wireless Federation.
du, second largest operator of UAE has instigated a scheme called ‘double your talk time’. Under this scheme any du subscribers who buy “Pay as you Go” line or renew his existing one for Dh55 gets double the amount back as free credit of up to Dh110. The subscribers can make use of this offer after recharges done in the form of Dh10 on every third recharge up to a maximum of Dh110, from the time of first call for new customers or renewal for existing customers.
Click here to see full article
|
According to the firm, the free credit can be utilised for all types of services - local and international calls, local and international SMS and data service and is valid for one month.
For the subscribers who uses Monthly plan, they can buy a new line for Dh62 and get free credit of Dh124. Free credit will be given as Dh31 for four months, starting from the second bill cycle.
Visitor Mobile Line customers can also reap the benefit from this offer, when they renew their line for Dh20 or when they buy a new line for Dh49.
Fareed Faraidooni, Executive Vice-President for commercial operations, said, “Our aim is to offer additional benefits to customers from time to time. The ‘double your talk time’ offer on purchase and renewal is a rewarding scheme that offers ‘double the value’ for the money spent by the customers.”
“We have made it easier and attractive for our customers to stay in touch with their loved ones. We encourage du customers to make full use of the offer, “Fareed added. |
Source: Wireless Federation.
Thanks to its One Region One Rate roaming scheme, all du mobile subscribers can enjoy calling local numbers and receiving calls at just AED 1.25 per minute, while roaming in the GCC region.
The unified rates come into effect immediately without any extra charges and will be available by default to all du customers while they roam in the GCC region. du mobile customers can choose any telecom operator during roaming in the GCC while still benefitting from this attractive scheme.
Click here to see full article
|
Farid Faraidooni, EVP Commercial, du, said, “The unified roaming tariff is a reflection of our commitment to simplify the lives of our customers. It means our customers no longer need to keep track of the various complicated roaming charges used in the GCC region.”
Further, the rates are attractive and affordable for all customers roaming in the GCC. Faraidooni said: “Roamers will enjoy low and attractive rates which makes roaming simple and affordable.”
After having launched the Haj roaming promotion which provides the benefit of free incoming calls to its mobile subscribers roaming in Saudi Arabia during the Holy period of Haj, du introduces another breakthrough innovation in the international roaming services.
While roaming in the GCC, du Monthly Plan subscribers can make and receive calls, send and receive SMS and MMS, access high speed mobile internet, use BlackBerry services and video calling.
While roaming on any operator in the GCC, du Pay as You Go ® and Visitor Mobile Line subscribers can receive voice calls and send and receive SMS. Outgoing voice calls are also available in all GCC countries with selected operators.
One region, One rate charges
• AED 1.25 per minute for local calls and any incoming call (except Haj pilgrims to Saudi Arabia who will enjoy free incoming calls till 20th December 2008)
• AED 3 per minute for calls to UAE numbers
• AED 1 per SMS
• AED 9.0 per minute for all other outgoing calls
• AED 1 per 50 KB of data usage
For more information please visit www.du.ae |
Source: Wireless Federation.

Tuesday, December 02, 2008
A new report from Arab Advisors Group analyzes and ranks 30 fixed services operators and 50 cellular operators in nineteen Arab countries. STC’s Al Jawwal, Egypt’s Mobinil and Vodafone Egypt are the largest Arab cellular operators in terms of subscribers.
With the advent of new operators and increased competition in 2008, cellular subscribers in 19 examined Arab countries reached 194.533 million. ALJAWAL and MobiNil sustained their top rankings by H1 2008, with 17.800 million and 16.328 million subscribers respectively. Vodafone Egypt ended the first six months of 2008 with 15.202 million subscribers, settling as the third largest mobile operator in the region. UAE recorded the highest cellular penetration rate by H1 2008, which stood at 198.6% followed by Saudi Arabia (123.3%). Both countries report subscribers based on active on the switch method. UAE also had the highest fixed line penetration rate by H1 2008, which stood at 29.4%.
Click here to see full article
|
On the Average revenue per use front, Qatar’s Qtel recorded the highest ARPU for fixed services, while Zain Kuwait recorded the highest ARPU for cellular services by H1 2008.
A new report, “A Scorecard of Key Performance Indicators of Arab Telecom Operators 2008” was released to the Arab Advisors Group’s Telecoms Strategic Research Service subscribers on Nov 23, 2008. This report can be purchased from the Arab Advisors Group for only US$ 2,000. The 61-page report, which has 46 detailed exhibits, provides a comprehensive analysis of the Key Performance Indicators (KPIs) of the fixed voice and mobile operators in the Arab region. The KPIs are for the year 2007 and H1 2008. The nineteen countries covered in this report are: Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Mauritania, Oman, Palestine, Qatar, Saudi Arabia, Syria, Sudan, Tunisia, UAE and Yemen. Two separate sections covered the fixed operators and the mobile operators. The report offers analytical comparisons between the service providers, by examining their performance in terms of the absolute number of subscribers, penetration rates, revenues, monthly Average Revenue Per User (ARPU), market shares, and key financial profitability ratios.
Any investment in this report will count towards an annual Strategic Research Service subscription should the service be acquired within three months from purchasing the report.
The investment can also count towards attending Arab Advisors’ sixth annual Media and Telecoms Convergence Conference on June 1 & 2 2009. More information on the conference can be seen at http://www.arabadvisors.com/Convergence/schedule.htm
Please contact the Arab Advisors Group for full information on the conference, agenda and sponsorship opportunities.
Please contact the Arab Advisors Group to get a copy of the report’s Table of Contents. The Arab Advisors Group now avails a secure online payment option for purchasing its reports.
“The Arab cellular markets continue to grow at a high pace, while the fixed line markets are either growing slowly or stagnating. By H1 2008, cellular operators added around 18 million subscribers while all the fixed line operators added a mere 1.4 million mainlines. Cellular operators in Egypt and Saudi recorded the highest subscriber additions in by H1 2008. MobiNil topped the ranks with 2.121 million added subscribers by H1 2008” Mr. Issa Goussous, Sr. research analyst at Arab Advisors Group wrote in the report. “Competition in cellular services is a main driver for growth. Several cellular operators recorded high growth rates by H1 2008. Al Madar Aljadid in Libya recorded the highest growth rate amongst all cellular operators, which stood at 57.1%, followed by UAE’s du at 53.3%” Mr. Goussous added.
The report covers cellular and fixed operators in addition to Integrated Communications Providers (ICPs) that provide both fixed and mobile services. The ICPs covered include Algerie Telecom (Algeria), Batelco and Zain Bahrain (Bahrain), Etisalat and du (UAE), Jordan Telecom Group (Jordan), Maroc Telecom, Medi Telecom and Wana (Morocco), Paltel (Palestine), Qtel (Qatar), Saudi Telecommunications Company (Saudi Arabia), Tunisie Telecom (Tunisia), Sudatel ( it provides mobile services under the brand name Sudani), Mauritel and Chinguitel (Mauritania) and Omantel (Oman).
The Arab Advisors Group’s team of analysts in the region has already produced over 1,300 reports on the Arab World’s communications and media markets. The reports can be purchased individually or received through an annual subscription to Arab Advisors Group’s (www.arabadvisors.com) Strategic Research Services (Media and Telecom). To date, Arab Advisors Group has served over 500 global and regional companies by providing reliable research analysis and forecasts of Arab communications markets to these clients. Some of our clients can be viewed on http://www.arabadvisors.com/clients.htm.
|
Source: Arab Advisors Group.
Digicel is nearing to recieve the mobile licence of Kiribati to launch GSM services in the country. The government of Kiribati approves Digicel’s proposal of an investment of over $9.3 million in deploying a network across all Kiribati’s populated islands. According to Telecommunications Authority Chief Executive Pwanouia Aberaan the finalisation of the licence is under process and the issuing of licence is expected in next three weeks.
Source: Wireless Federation.
Pan-Caribbean operator, Digicel has launched services in the British Virgin Islands (BVI) -- its 25th market in the Caribbean and Central America and 30th market world-wide. The company says that it has invested US$17 million in its network for the country.
With a population of 23,000 and mobile penetration at an estimated 90 percent, Digicel's investment in BVI focused on building a brand new state-of-the-art network that provides coverage to 98 percent of the population.
Click here to see full article
|
"We are delighted to launch in the British Virgin Islands and are looking forward to demonstrating to customers what being with the Bigger, Better Network means," Colm Delves, Digicel Group CEO, said of today's launch. "I would like to thank the Government for all of its assistance with our entrance to this market. As the third entrant, we will drive competition for the good of consumers by providing the best coverage, the best care and the best value to the people of this country. This is an exciting time for us both here in BVI -- and more widely -- as we continue to expand our global presence and delight customers with what we do and how we do it."
Digicel BVI is led by Alan Bates, who has worked with Digicel since 2003. Serving as Head of Sales and Distribution for the Dutch Caribbean region and Sales Director for Digicel Bermuda, Bates has played an instrumental role in leading the company's operations to the number one position in the market.
With a thriving tourism and financial services industry, BVI has one of the most prosperous economies in the Caribbean. BVI covers a group of 16 inhabited and more than 20 uninhabited islands, with the main islands being Tortola, Virgin Gorda, Jost van Dyke and Anegada. |
Source: Cellular News.

Friday, November 28, 2008
According to a recent surevey, South Africa has been rated as the world’s fourth fastest and Africa’s fastest growing mobile market, with a coverage on 80% of the total population, nearly 39 million users, representing a market value of US$2.4 billion. The three operators Vodacom, MTN and Cell C, have been in a cutthroat competition against each other since the launch of MNP in the market last year.
“South Africa offers an extraordinary penetration rate in this burgeoning market, one of the highest in the developing world,” said the report.
Source: Wireless Federation.

Tuesday, October 14, 2008
According to data published by Japan’s Ministry of Internal Affairs and Communications (MIC) as reported by Japan Today, mobile calls accounted for 44.8% of total hours of telecommunications traffic in the fiscal year ending 31 March 2007, eclipsing fixed line phone traffic for the first time ever. The MIC reported fixed line phone calls, excluding calls made via IP, was 43.3%. In fiscal 2006 the share of mobile phone calls was 5.7 percentage points below that for fixed line calls, but leapfrogged it a year later after Softbank Mobile introduced free call services and other rivals cut call rates in a competitive market.
Source: TeleGeography.
Mobile penetration rates are forecast to rise from 46% in 2008 to 95% by 2013 according to a new survey of 34 emerging market countries published by Tariff Consultancy. Already subscribers in the 34 countries total over 2.1 billion users (based on operator statistics as of mid-2008) which accounts for half of the world’s mobile users (based on ITU estimates). By 2013 the 34 countries will have grown to 4.3 billion mobile users and will account for around two thirds of global mobile users.
The report notes that although China and India will remain the two single largest markets throughout the period due to their large populations, the fastest growth in new mobile subscribers over the next 5 years is set to come from Afghanistan, Iraq, Cambodia and Indonesia. By 2013 Iraq is forecast to have the highest mobile penetration rate of all of the 34 countries.
Another striking feature is the deployment of 3G and HSDPA mobile networks across all regions which is likely to continue. Although 3G handset costs are currently prohibitively expensive for the mass market there is evidence of adoption by high spending user groups who are using 3G for VoIP and peer-to-peer applications as an alternative to fixed line broadband.
The use of inclusive call minutes is also increasing. Inclusive call minutes are being used as a short term customer acquisition tool, with unlimited on-net SMS or calls offered for a 24 or 48 hour period. They are being used as a retention tool with low on-net calls to particular user communities, and finally as a flat rate price differentiator across all networks where competition is severe.
The availability of new mobile licences and spectrum is continuing to attract investors as Governments seek to raise new revenue with licence auctions and existing providers look for foreign investors. New mobile operator investment is taking place in India, Cambodia, Iraq, Iran, Nigeria and Vietnam among others.
The report also noted that as markets approach maturity, mobile operators are attempting to develop new forms of distribution channel to attract the low income subscriber with lower denomination top-up cards and door to door sales and sub-agents.
“The rapid growth of mobile penetration across the world indicates that these markets will approach maturity more quickly than previously thought,” commented Margrit Sessions, Managing Director of Tariff Consultancy. “By the end of 2013 we are likely to see one SIM card for every person as the norm in most countries,” she added. “However we should be careful to over-emphasise the significance of this trend, as the incidence of multiple SIM ownership - particularly in the cites - has long been common in emerging markets as there is such a large difference between on net and off net tariffs.”
Over time pricing policies pursued by the mobile operator will need to change in order to promote greater mobile operators. Operators who continue to promote multiple SIM ownership with large differences between on-net and off-net tariffs will ironically contribute to relatively low levels of operator loyalty.
Emerging market mobile operators are likely to find that growth will come from inclusive flat rate deals for both voice and data which will drive usage as has been the case in developed markets.
“The imminent launch of mobile broadband data services provides an exciting new revenue stream as users are able to break free of low speed fixed or dial up access which will continue to have relatively poor levels of penetration. Mobile is going to become the standard for accessing the internet in many of these countries from now on,” adds Margrit Sessions.
Source: Cellular News.

Tuesday, September 30, 2008
The mobile market in the Caribbean & Latin America further polarised towards GSM technology in Q2 2008, as the total number of customers using the technology and its 3G derivative W-CDMA increased by 6.9% to almost 360m. At the end of June 2008, the GSM/W-CDMA base made up 86.3% of the regional total, up from 84.6% three months earlier.
Most of the ground was given up by the CDMA base, which decreased in size by more than 5% in the quarter to under 48m.
Click here to see full article
|
Connection growth since Q2 06 by technology

However, the AMPS/TDMA base also continued to contract, ending the period 27% down at just 5.4m, or 1.3% of the total. Rounding off the picture, the iDEN customer base grew most quickly of all in the quarter, by 7.2%, slightly increasing its share of the regional total from 0.92% to 0.94%.
Similar patterns were seen over the annual period to 30th June 2008, but obviously to a much more dramatic extent. The GSM/W-CDMA base increased in size by 40.4% over this time – well in excess of the 23.1% regional average – taking more than 10pp of market share from CDMA, TDMA and AMPS. The CDMA base saw a decline of 21.6% over the 12 month period, taking its total from 61m down to 47.8m. The figure of 2.6m connections lost in Q2 08 compares well with the average of over 3.5m lost in the previous three quarters, although there is no denying the serious and continued decline. As for the region’s remaining AMPS/TDMA networks, their ranks were depleted by more than 70% over the year, at which rate remaining numbers will be negligible by this time in 2009. |
The last 12 months have seen the advent of W-CDMA-based 3G networks across Latin America, with services now commercial in 12 markets in the region. Launches took place in three new markets in the quarter, including Brazil, where numbers were already almost 1m at the end of August after just three months. As far as Q2 is concerned, total customer numbers increased by 67.5% to almost 1.25m (the majority at this time coming from Mexico) which represents an annual improvement of over 1000%.
The introduction of W-CDMA has added to the effect of the continued rise of GSM and slowed the increase in numbers of 3G CDMA EV-DO connections considerably, the base levelling out at around 2.8m across the region.
Source: Cellular News.

Friday, September 19, 2008
Brazil’s telecoms regulator Anatel said the country was home to 138.3 million active mobile lines at the end of August, up 2.25% or three million on the previous month, and the best monthly net gain so far this year. According to data published yesterday and reported by BNamericas, Brazil’s mobile operators have collectively added 17.4 million net new mobile lines so far this year. Local press suggest the strong rise in August is likely to have been driven by strong sales ahead of the national Father’s Day celebration on 3 August.
Source: Telegeography.

Thursday, September 04, 2008
The Egyptian Company for Mobile Services (Mobinil) has launched its 3G network following several delays, which the company partially put at the door of the telecoms regulator. The company had expected to receive access to the radio spectrum on 17th January, but the radio frequencies were not released until March 27th. The company had hoped to launch its network in July, but again missed its deadline.
According to a statement from the company, Mobinil's 3G coverage Cairo, Alexandria, Sharm El Sheikh, Hurghada, Dahab, Taba, Safaga, Marsa Alam, Luxor and Aswan, in addition to the industrial zones as well as petroleum fields and business districts. It is also planned that the 3G coverage will expand to cover wider areas to achieve comprehensive coverage for almost all regions.
The network also falls back onto EDGE services when out of 3G coverage.
Click here to see full article
|
Mobinil did not just add a 3G overlay to its exiting GSM network - but says that it built an entire new mobile network. The last few months have witnessed an incredible effort to increase the number of base stations installed hiking it to more than 6,500 base stations, out of which 700 3G base stations and more than 2,100 EDGE-enabled base stations to offer wider coverage for all populated areas in Egypt.
The company says that its network CAPEX reached some 3.3 Billion Egyptian Pounds in 2007 and that figure was increased to about 4 Billion Egyptian Pounds throughout 2008.
Nokia Siemens Networks, along with Huawei have developed the 3G portion of the network, while Alcatel Lucent and Motorola cooperated with Mobinil to establish the 2G portion of the network. This is in addition to the cooperation with Cisco Systems and Ericsson to develop and enhance the network infrastructure. |
Mobinil is listed on the Cairo stock exchange (29%) - and has two main shareholders, Orascom Telecom (33.1%) and France Telecom (36.3%). The company is the largest operator in the market, and according to figures from the Mobile World database, ended Q1 '08 with just over 15 million subscribers and a market share of 51.5%.
Mobinil recently reported that its first-quarter net profit grew 14% to 451 million Egyptian pounds ($84 million) from EGP397 million a year earlier. The company's revenue also surged 27% to EGP2.3 billion from EGP1.8 billion in the first quarter of 2007.
Source: Cellular News.

Monday, September 01, 2008
Bolivian mobile operator, Telecel operating under the brand name Tigo, has launched 3G services in the country. The service has been launched in several cities in the regions of Santa Cruz, La Paz and Cochabamba.
Telecel is a subsidiary of Luxembourg based, Millicom International, and launched its network in December 2005. According to figures from the Mobile World subscriber database, the operator ended the first half of this year with just over 1.19 million customers - of which an estimated 120,000 were still connected to a legacy TDMA network at the end of March. The company has a market share of 29%.
Bolivia's Nuevatel PCS - which operates under the VIVA brand name recently announced the launch of a commercial WiMAX rev-e network in the country with coverage roughly similar to the 3G coverage being offered by Telecel.
Source: Cellular News.

Friday, August 29, 2008
APA-Tunis (Tunisia) The number of people using the mobile telephony networks reached 8.1million subscribers in June 2008 in Tunisia i.e. a telephone density of 80 subscribers per 100 inhabitants, revealed data published in Tunis.
This figure increased by 15% compared to the same period in 2007 (7.8 million subscribers) for a 12 million population.
The volume of SMS traffic increased by 30% during the first six months of the current year (80 million SMS) compared to the same period last year (61 million SMS).
These data from the ICT ministries also note an improvement of the quality of services of the mobile telephony, which enabled them to reduce the clutter and the saturation of traffic in peak periods.
This improvement is thanks to the programmes and steps implemented to remarkably ease the clutter which was reduced to 2% whereas it was over 16 % last year.
Reacting to these official figures, observers said that 8 million subscribers is "huge" compared to the Tunisian population and the teenage population.
Tunisians as well as foreign nationals in Tunisia (diplomats, co-operators, businessmen and tourists) often complained about the quality of the GSM and Internet connection, particularly in summer and during peak hours.
Tunisia has two mobile telephone operators, a public one (Tunisia Telecom) and a private one (Tunisiana).
Source: Cellular News.

Wednesday, July 30, 2008
Ethiopian Telecommunications Corporation (ETC) - the country's monopoly telecoms operator - says that it has completed the installation of the first phase of CDMA 2000 network infrastructure with 625,000-network capacity through vendor financing agreement with China's ZTE and has finalized preparation to make CDMA pre-paid service available to potential customers soon.
Click here to see full article
|
The CDMA network will have an initial 250,000 network capacity for Addis Ababa and 375,000 network capacity for regional towns.
Concerning the CDMA tariff rates, the wireless pre-paid service will have the same tariff rates as the fixed line while the mobile telephone will have the same tariff as the GSM mobile telephone. Currently, the CDMA network will be used only for pre-paid services.
When the overall CDMA project is fully completed, the country will have a network capacity for 2.4 million customers. |
ZTE recently added 1.2 million GSM lines to the network capacity to cope with demand and also a surge in usage which occurred during the recent celebration of the Ethiopian millennium. A WCDMA overlay is also planed for some parts of the network. There were several serious network failures during the upgrade work, with the mobile operator blaming ZTE for not refarming radio spectrum correctly during the commission of new base stations.
The state owned monopoly ended Q1 '08 with an estimated 1.6 million subscribers, which according to figures from the Mobile World equates to a population penetration level of just 2%.
Source: Cellular News.

Monday, July 28, 2008
Namibia’s largest cellco MTC said it has invested nearly NAD300 million (USD40 million) in its network infrastructure in the year to date, in projects including raising SMS capacity, the deployment of a transmission backbone across several areas of the country and the replacement of central switching equipment with next generation architecture. The company’s fibre-optic transmission network was extended in areas including the capital Windhoek, coastal regions and in the north, ending MTC's long-standing reliance on renting backbone capacity from Telecom Namibia. The fibre project was implemented by Nera and Ericsson at a cost of NAD76 million this year. MTC also upgraded its radio access network and wireless broadband service capabilities, in partnership with Nokia Siemens Network and Motorola, at a cost of NAD88 million. MTC's investments over the last 13 years total NAD1.6 billion.
Source: TeleGeography.
Revenues from mobile data services are set to exceed US$200 billion this year for the first time, according to data sourced from Informa Telecoms & Media. Total mobile data revenues were approximately US$157 billion in 2007.

Research from the first quarter of 2008 reveals that mobile data service revenues exceeded US$49 billion, accounting for a 42.7% y-o-y increase. This figure means that mobile operators now generate approximately one fifth of their revenue from data services; this is significant given that a general slowdown in voice revenues is forcing the pace around the importance of data services for mobile operators.
Informa Telecoms & Media estimates that non-SMS data contributed US$17.48 billion of revenue in Q108, accounting for 35.6% of total data revenues.
"Growth drivers for the increase in data revenues include the acceleration in deployment of advanced technologies, an increasingly competitive market, and of course, growing consumer demand for mobile data services driven by popular data-optimised devices such as Apple's iPhone", says Informa Principal Analyst, Nick Jotischky.
The Asia Pacific region comprises 40% of the world's data revenues (over US$20 billion in Q108), representing an above average y-o-y growth rate of 48%. The biggest regional riser, however, is the Middle East, which despite contributing just 2% of the world's data revenues in the first quarter of 2008, has seen a 91.7% y-o-y increase in this figure to US$927 million. Aiding this acceleration is the 321% y-o-y rise in the number of HSPA subscribers in the region, which reached 2.9 million by the end of March 2008.
Further next-generation deployment should also ensure rapid growth in Africa and the Americas, which accounted for just 2% and 5% of global data revenues at the end of Q1 2008. With the increased deployment of fixed wireless telephony, the popularity of EV-DO datacards continues to spread across Africa, now available in 18 markets. Similarly, in Latin America, operators are hopeful for increases in data revenues from WCDMA and HSDPA launches.
According to Informa Telecoms & Media, the operator to generate the highest non-voice revenues in the quarter is Japan's NTT DoCoMo (US$3.6 billion), having overtaken China Mobile (US$3.5 billion), which had been the largest generator of data revenues for the previous three quarters.
In terms of data as a percentage of overall revenue, Filipino mobile operator Smart Communications is the world's market leader and the only carrier to depend on non-voice revenues for more than 50% of its income, such is the high level of SMS usage in the country.
Source: Cellular News.
APA-Banjul (The Gambia) The Gambia has almost a million telephone subscribers, with over 800,000 mobile telephone and about 50,000 fix telephone subscribers, according to a report by the Public Utilities Regulatory Authority (PURA) released here Friday.
The report says that the telephone subscriber list has grown by 86 per cent in 2007, from 73 per cent in 2006. “This surge in growth is as a result of an increased register in the subscriber base of the mobile telephone sector as against the fixed line subscribers, primarily as a result of a competitive environment created by the government,” the report said. The report indicates that despite the stiff competition amongst the mobile telephone providers, they continue to increase their subscriber base. In contrast, the release said the last two years saw stagnation in the number of fixed line subscribers in The Gambia with marginal growth rate of only 20 per cent in 2006 and 9 per cent in 2007.
The report adds that telecommunications in The Gambia “is one of the most highly competitive markets in the sub-region. This is illustrated by an increase in innovative services and pricing schemes such as peak, off peak and free night calls.” The report concludes that the communications sector saw a tremendous growth from 7 percent to 25 percent in 2007, with an estimated investment in the telephone sector of US$26.3 million in 2007.
Source: Cellular News.

Friday, July 25, 2008
SMS will continue to maintain its lead as the highest revenue generator across all messaging categories, providing global service revenues of $177 billion in 2013. But in a recent report from ABI Research, regional differences will determine the success of messaging expansion into the Web, advertising, and the incorporation of mobile messaging within social networking media.
“Innovative companies are exploring opportunities for expanding mobile messaging access to Web sites as well as targeting customers with content and ads,” says principal analyst Dan Shey. “To be successful with these enhanced services, companies that supply mobile messaging products and services must understand the regional distributions for customer type, payment preferences, message delivery method, and usage.”
For instance, developed regions of North America and Europe have the highest messaging ARPUs, and send the most messages from the computer to the mobile device using IM; Asia-Pacific subscribers sign up for the most SMS alert services; and Latin Americans are heavy SMS users, but prefer pay-as-you-go for all messaging services. Additionally, these regional differences will cause established messaging suppliers to reevaluate their business models.
“Device vendors and messaging platform suppliers serving the global market will have to manage across markets where growth is king – and other markets where product differentiation is king,” continues Shey. “This is a great time for smaller companies to develop new products and services individually and in partnerships to serve the niche needs of a region or country.”
Source: Cellular News.
The market share of handsets supporting WCDMA and HSDPA networks increased remarkably in South Korea in 2007. The latest research report released by ROA Group found out that 30.7% of the handsets launched in 2007 supported WCDMA and HSDPA networks, while the figure was a mere 4% in 2006. Also the proportion of handsets supporting mobile WiMAX (WiBro) increased compared to the previous year.
In terms of manufacturers, LG released more models compared to 2006, and was able to increase its market share in the domestic market by 6%, to 26%, while that of Samsung remained the same, occupying 50% of the South Korean market. As the cut-throat competition between the manufacturers and mobile operators intensifies, the market witnessed a drop in the average retail price compared to 2006, with the market share of high-end handsets decreasing to 40.4%.
There was also a notable increase in Bluetooth installment, sub-camera, Video on Demand (VOD), Video Telephony and Digital Multimedia Broadcasting (DMB) support. More and more handsets are equipped with Universal Subscription Identity Module (USIM) card, enabling mobile payment services, and this segment is expected to grow in South Korea as cooperation between mobile operators, card issuers and commercial banks strengthens in the market.
Among form factors, ROA Group believes that slim trend will continue and the adoption of touch screen will widespread further. The expansion of WCDMA and HSDPA networks will enable more innovative multimedia services, resulting in the acceleration of mobile Internet usage and interaction between content and end-user, says David Kim, chief consultant at ROA Group Korea.
Source: Cellular News.
The number of mobile users in China, the world's biggest cellphone market, now tops 600 million, the government said, as subscribers increasingly abandon fixed lines.
Mobile phone users in the country increased to 601 million at the end of June, up by 8.6 million from the end of May, the Ministry of Information Industry said in a statement posted on its website on Wednesday.
From January to June, the nation of 1.3 billion recorded 53.5 million new cellphone users, it said.By contrast, fixed-line subscribers fell by 9.3 million in the first six months to 356 million, it said.
Mobile service is becoming more popular in the country after operators lowered tolls in March for making phone calls outside a user's registered local service area and cancelled charges for answering calls in some cities.
China has been leapfrogging into the age of mobile telephony because of the huge costs associated with installing fixed lines across a nation the size of the United States.
Source: Cellular News.

Thursday, July 24, 2008
Mobile penetration in Pakistan surpassed 50% during the second quarter of 2008, with an end-June figure of 51.0%. The total number of mobile connections at the end of the month was 88.02m. With monthly net additions averaging around 1.9m so far this year, the 90m mark looks set to be surpassed before the end of the third quarter.
However, growth has been slowing for some time now, and in June the monthly growth rate hit a new low of 1.5%. On a rolling annual basis, growth dipped below 40% for the first time since 2000, although 39.4% still represents a strong annual rate.
Orascom’s Pakistani subsidiary Mobilink remains the country’s market leader by some distance with 32.03m customers at the end of June.
Rolling Annual Customer Growth, June 06 – June 08

Click here to see full article
|
Although it has lost 5.5pp of market share on an annual basis with an end- June figure of 36.4%, in real terms its lead over its nearest rival has increased, from 12.45m to 13.91m. There is thus little prospect of Mobilink losing its first place in the near future, even if it has recorded the lowest net additions in the market (excluding Pakcom) for the past three months. By contrast, the battle for second place is fierce. Pakistan Telecom Mobile (U-Fone), the long-term runner-up, led Telenor by 3.3m customers at the end of June 2007, but Telenor reduced the deficit to 0.2m at the end of April 2008, and at the end of May it had squeezed ahead of U-Fone by 41k. However, U-Fone is clearly not giving up without a fight, and June saw it regain its lead, albeit by a paltry 25k. This amounts to just 0.1% of its 18.13m customer base, with Telenor on 18.10m.
The other two significant players on the market (excluding legacy analogue network Pakcom, which has just 0.32m customers) are Warid and Zong, a subsidiary of China Mobile. At the end of June 2007, Warid was on the brink of overtaking Telenor, having reduced the latter’s lead to just 80k. However, Warid is now firmly established as the fourth-placed operator with 15.49m customers at the end of June 2008. Zong is still a long way behind on 3.95m customers, but it is the network’s fastest growing operator with an annual growth rate of 84.4%, more than double that of the market (39.4%). |
Source: Cellular News.

Tuesday, July 22, 2008
South Africa’s Vodacom Group has reported a 6.6% increase in subscriber numbers in the twelve months to the end of June, with the operator claiming 34.6 million customers in South Africa, Tanzania, the Democratic Republic of the Congo, Lesotho and Mozambique. The company says revenues for the quarter ended 30 June were up 14.5% year-on-year. Full financial results for the period will be released next month. Vodacom is owned by Telkom South Africa and Vodafone, though the UK group is looking to increase its stake.
Source: TeleGeography.
Second quarter results from America Movil (AM) show a 25% rise in net income from the same period last year, up to MXN17.7 billion (USD1.74 billion) in the three months ended 30 June 2008. The Latin American group also added 6.1 million subscribers, with Brazil welcoming 1.9 million of those, closely followed by Mexico, 1.3 million. The additions bring AM’s total subscriber base to 165.3 million, with revenue in the second quarter reaching MXN84.6 billion (USD8.32 billion), an increase of 13.6% year-on-year. Highlights of the second quarter included the award of a 20-year wireless licence in Panama in May, bringing to 18 the total countries where AM now holds wireless concessions.
Source: TeleGeography.
Maroc Telecom has reported a 10% year-on-year rise in first half consolidated group revenues to MAD14.308 billion (USD1.985 billion), thanks to the continuing growth of its domestic and foreign mobile operations. Domestic revenues in the first half of 2008 amounted to MAD12.511 billion, up 9.8%, with mobile revenues in Morocco increasing by 12.9% to MAD8.923 billion following the full commercial launch of 3.5G voice and internet services in January. Moroccan mobile customers rose 21.3% year-on-year to reach 14.2 million at the end of June 2008, up from 13.7 million in the previous year and 13.3 million at the start of the year. Mobile ARPU in the six month period fell 8.2% year-on-year to MAD98.6, whilst average outgoing usage was maintained at approximately the same level as H1 2007. Fixed line (including internet) operations in Morocco achieved six-month gross revenues of MAD4.75 billion, up by 0.5%, as the fixed line customer base reached 1.329 million, up by 0.3% compared to June 2007. A 3.9% decrease in average monthly wireline user bills was offset by revenues of data and internet services respectively increasing by 17.3% and 9.1%. The ADSL customer base reached 482,000 lines at the end of June 2008, up 10.0% y-o-y, whilst the company claimed 14,000 Mobile 3G+ wireless broadband subscribers by that date.
Mauritel, Maroc Telecom’s Mauritanian unit, earned revenues of MAD519 million in H1 2008, down 3.7%, affected by exchange rates, despite its mobile customer base growing 32.3% to exceed one million at the end of June. Mauritel’s fixed line subscriber lines increased by 27.8% to 46,000. Burkina Faso subsidiary Onatel achieved first half sales of MAD715 million, up 9.0%, as its mobile subscribers increased by 95% year-on-year to 756,000 at end-June, mainly thanks to extended network coverage. Onatel increased its fixed line customer base by 21.5% in the period to 130,000 lines. At Gabonese unit Gabon Telecom, revenues of all business activities amounted to MAD529 million in the first six months of 2008, down 18.5% on a comparable basis mainly due to substantial price cuts carried out over the last year. Users of Gabon Telecom’s Libertis mobile phone service reached 424,000 at mid-year, up 61.2% y-o-y, whilst its fixed lines in service increased by 40.9% to 31,000.
Mobisud, Maroc Telecom’s MVNO in France and Belgium, reported total six-month revenues of MAD91 million, with a total of 155,000 customers at end-June 2008, down slightly on March, due to an ‘active customer base cleaning process’ by Mobisud France during the second quarter.
In the second quarter ended June 2008, Maroc Telecom’s consolidated group turnover rose 6.5% year-on-year to MAD7.343 billion.
Source: TeleGeography.
Taiwan’s cellular operators are expected to have signed up more than eleven million 3G handset users by the end of this year, according to a report from China Economic News Service. Chunghwa Telecom currently has around three million 3G users, having already surpassed its end-2008 target of 2.8 million, while Far EasTone (FET) has 2.2 million 3G subscribers and Taiwan Mobile has 1.8 million. Smaller operators Vibo and Asia Pacific Broadband Wireless account for another million or so 3G users between them. 3G handset users now account for more than a third of all cellular subscribers in Taiwan, though many customers with 3G-capable phones are still connected via 2G tariffs, meaning the actual 3G user base will be lower than the total given by the operators.
Source: TeleGeography.
China's CCID Consulting, has reported that with the drive of export and domestic demands, China's mobile phone output continues to grow in 2007, reaching 554 million sets, with a growth rate of 25.4%. The export volume wass 322 million sets, which accounts for 58.2% of all phones made in the country. Currently, China's global mobile phone manufacturing base is quite steady. Nokia, Motorola, Samsung and Sony Ericsson have transferred their capacities to China; because of this factor, the export volume of China's mobile phone increases 26.2%. Meanwhile, China's domestic mobile phone enterprises' capacity increases are evident, especially ZTE, Huawei and K-Touch.
Brand Structure

The size of China's mobile phone chip market reached 84.41 billion Yuan in 2007, up 23.9% over 2006.
Click here to see full article
|
As for mobile phone market's application structure, baseband processor module has the largest share, which accounts for 26.5%; with multimedia functions becoming more sophisticated, multimedia applied chip's share is 21.6%; although mobile phones' storage increases, affected by storage prices' drop and MCP applications' increase, storage's share reflects a downslide trend, which has decreased from 24.2% in 2006 to 19.4% in 2007
China Mobile Phone Chip Market

In recent years, single chip solutions' application grows rapidly; affected by this, the shares of power management chip and RF module decrease. Besides, affected by the increase of smart phones, GPS mobile phones, Bluetooth/WiFi function mobile phones and application processors, market share of wireless connection chip and other chips increases and is likely to keep increasing in future years.
Mobile Phone Chip Market in 2007

Mobile phones' baseband chip is the core of mobile phones' hardware, the integration of its components will directly affect the change of mobile phone platform's structure. Mobile phone baseband chip market can be divided into seven types, with DBB+ABB enjoying a larger market share. Chief users include Qualcomm, NXP, Agere, Broadcom, Freescale, Infineon and MTK; the next is DBB/ABB+PM, adopted by TI and ST; with the increase of low cost mobile phones, ABB+ABB+RF+PMU market grows rapidly, whose market share is 10.4%. As for market development in recent years, with integration in baseband chips, the shares of single chip solution DBB+ABB+RF+PMU and integrated application processor DBB+APP solution increase
Mobile Phone Baseband Chip Market

Excluding smart phones, the more sophisticated requirements for mobile phones lead to higher capacity requirements for chips. In order to follow this trend, mobile phone chip has two development trends: mobile phone baseband chip improves integration, which not only supports some kinds of communications standards, but also provides multimedia functions and is applied in the interface of multimedia display, image sensor and audio devices, such as MTK's 6226 solution. The other is coprocessor's integration development, which is applied in MP3 and image processing, and it will have more multimedia functions; meanwhile, mobile phones' basic communications module's single chip solution will accelerate the evolution.
Forecast on Size and Growth of Mobile Phone Chip market

Domestic Chip Manufacturers Need to be Strengthened
As for brand structure, mobile phone platform chip manufacturers have high positions such as TI, Qualcomm, Infineon, NXP and MTK. Besides, storage manufacturers such as Samsung, Intel and Spansion, and manufacturers with abundant product lines such as ST and RFMD also have important positions in the market. As for development ability, 3G chip manufacturers and application processor manufacturers have strong development abilities.
China's domestic mobile phone chip enterpises' shares are low. Because China's mobile phone chip design has a late start, its products focus on mobile phone multimedia chip, such as MP3 decoder chip, image processor chip and chord chip, and its downstream customers are domestic mobile phone production enterprises, but it is difficult to enter supply systems of international mobile phone manufacturers such as Nokia and Motorola. However, with the increase of domestic mobile phones' output and the development of multimedia mobile phones and 3G businesses, domestic mobile phone chip manufacturers have great potentials over the next few years. 3G, multimedia application and smart phones are not only impetus of mobile phone chip market, but also the development opportunities for domestic chip manufacturers.
In future years, China's mobile phone chip market will follow China's mobile phone output and enter steady growth. China's mobile phone chip market will break through 100 billion Yuan in 2009, and it is forecasted that the market will reach 146.13 billion Yuan in 2012. 2G/2.5G era mobile phones consider voice as major part, core chip is baseband. Multimedia and business application will be more and more applied in 3G era. Therefore, with the enlargement of 3G mobile phones' output, multimedia application chip, storage ship and wireless connection chip market should grow rapidly. |
Source: Cellular News.

Monday, July 21, 2008
SAO PAULO -(Dow Jones)- Brazil's two leading mobile phone companies, Vivo Participacoes and TIM Participacoes, saw their share of the local mobile phone market slip in June, while America Movil's Claro and Tele Norte Leste Participacoes, or Oi, expanded share, according to data released by telecommunications regulator Anatel Thursday.
Vivo, which is jointly owned by Spain's Telefonica and Portugal Telecom, saw its market share fall to 30.36% in June from 30.45% in May, while No. 2 operator TIM Participacoes, a local unit of Telecom Italia, saw its share fall to 25.40% from 25.60%
Claro's market share rose to 24.87% in June from 24.75% in May. Oi had 15.25% in June, up from 15.09% in May.
Cellphones in circulation totaled 133.2 million at the end of June, with net additions of 2.6 million in the month. The market continues to expand rapidly as operators chase new clients with promotions.
Source: Cellular News.
Saudi Telecom Company (STC), which is the dominant fixed line and cellular operator in the Kingdom of Saudi Arabia, has reported a second quarter net profit of SAR3.84 billion (USD1.02 billion), up 24% year-on-year. Operating profit grew 21% to SAR3.91 billion. The firm says the growth can be attributed to domestic mobile and broadband services plus higher income from its international operations; earlier this year STC acquired a 35% stake in Oger Telecom, which has cellular operations in markets including Turkey, South Africa and Romania.
Source: TeleGeography.
Saudi Arabia’s number two cellular operator Mobily has reported a 47.4% jump in net profits for the second quarter to SAR448 million (USD119.5 million), from SAR304 million in the same period last year. Operating profit was up 24% at SAR530 million, while revenues grew 25% to SAR2.54 billion. Mobily claims 39% of the Saudi cellular market, with 11.1 million subscribers.
Source: TeleGeography.
Eesti Telekom, the Estonian operator, has reported its financial results for the second quarter ended 30 June 2008, revealing a net profit of EUR6.5 million (USD10.3 million), a 6.4% fall from June 2007. Revenues fell to EUR100.1 million (USD158 million), as a result of the reduction in interconnection fees by the state regulator in November 2007. Eesti also indicated that slowing sales of telecoms equipment had impacted revenues, with the operator also confirming it is to continue its strategy of reducing personnel to cut operating costs. Wireless subscriber figures show a rise from last year, up to 755,000, and according to TeleGeography’s GlobalComms database, Eesti operates both GSM and 3G services under its Eesti Mobiiltelefon subsidiary, claiming 47% market share.
Source: TeleGeography.
At the end of June 2008 China Telecom reported 214.89 million local access lines in service, 5.44 million lower than at the start of the year. Broadband subscribers surged by 4.3 million during the same timeframe, to 39.95 million, helped by the acquisition of Beijing Telecom in June 2008. China Netcom meanwhile added 160,000 fixed line and 710,000 broadband customers to its base, to take its totals to 108.5 million and 23.35 million respectively.
In the wireless arena, China Mobile reported 414.6 million wireless customers at the end of June, an increase of 45.25 million in six months. Rival China Unicom meanwhile reported 127.6 million GSM and 43.16 million CDMA customers at the same date, up 7.03 million and 1.2 million on the start of the year respectively.
Source: TeleGeography.
Russia’s Mobile TeleSystems (MTS) said it had just under 87 million cellular subscribers across Russia and the CIS countries at the end of June, an increase of 520,000 in three months. MTS is the largest cellular operator in its home market, with 61.38 million customers at 30 June 2008, while its international operations include cellcos in Ukraine (19.13 million subscribers), Uzbekistan (4.37 million), Armenia (1.49 million) and Turkmenistan (570,000). The group also has 4.03 million customers in Belarus via a 49%-owned unconsolidated subsidiary.
Source: TeleGeography.
The number of Spanish mobile customers reached 49.44m at the end of Q1 08, with annual net additions of 2.47m. In proportionate terms, annual growth stood at 5.3%, down 2.5pp compared to the year-earlier figure. This is in line with a downward trend in growth, a trend which is hardly surprising given that mobile penetration reached 122.1% at the end of Q1 08.
W-CDMA Customers, Q2 06 – Q1 08

Spanish market leader Telefonica finished the quarter with just over 23.01m customers, having managed an annual growth rate of 5.5%. In terms of market share, it recorded a very slight improvement (0.1pp) to finish Q1 on 46.5%. Second-placed Vodafone also gained 0.1pp year on year, finishing the quarter on 29.9%. In real terms, its customer base stood at 14.79m, up 0.79m year on year. This is lower than both the previous year’s figure of 1.25m net additions and Telefonica’s 1.19m. Nonetheless, in proportionate terms Vodafone grew by 5.6%, the highest growth rate on the market excluding start-up Xfera.
France Telecom’s Amena was the slowest growing by some margin with an annual increase of just 0.2%. Having lost 0.37m customers in Q2 07, Amena bounced back with quarterly net additions of 0.23m and 0.17m in Q3 and Q4, but Q1 08 saw the loss of 7k, leaving the annual gain at a paltry 26k. At the end of Q1 08, it had 11.08m customers and market share of 22.4%, down 1.1pp year on year. Meanwhile, 3G operator Xfera gained 0.9pp but still remained a fairly insignificant presence with just 1.1% of the market, or 0.56m in real terms. Having launched services in Q4 06, it now seems too late for Xfera to make any sizeable inroads.
In fact, Xfera does not even have a 5% share of the 3G market, finishing Q1 08 on 4.6%. Vodafone is the 3G market leader with 5.26m W-CDMA connections, compared to 4.2m for Telefonica and 2.01m for Amena. Both Telefonica and Amena more than doubled their totals year on year, however, so we could see a close battle in the Spanish 3G market this year.
Source: Cellular News.
Heavy regulation can suffocate businesses. Just ask any American firm that operates under the Sarbanes-Oxley Act.
This is not to say that the market should be left to its own devices, but some governments go above and beyond the call of duty.
The Israeli Ministry of Communications continues to aggressively target its wireless industry with the intention of increasing competition between the major players, including the largest, Cellcom Israel CEL, to benefit the nation's consumers.
Cellcom was established in 1994 and went public last year. Today, it provides cellular service to roughly 3.09 million subscribers, up 23,000 from a year ago.
The firm's estimated 34% share of the market is only slightly higher than that of rivals Partner Communications PTNR and Pelephone.
Government over-regulation remains the biggest challenge facing all three competitors.
Click here to see full article
|
Regulatory Moves
Starting next year, phone carriers will have to start charging by second-long increments, instead of the 12-second increments they use now. This will trim the number of units that Cellcom can charge.
Legislation was recently passed that will limit new contracts to 18 months -- half of the length previously allowed. The government introduced an option for callers who reach voice mail to hang up within the first three seconds of a call without being charged.
In 2004, the ministry ordered a series of cuts in "interconnect" rates charged for calls between wireless and landline phones. Rates were slashed by 10% last year, and another 15% reduction took hold this year.
Because of all this, analysts see steady but not explosive growth after this year. Analysts polled by Thomson Reuters expect earnings per share in the full 2008 to hit $2.65, up 21% from last year. But they expect only 9% year-over-year growth in 2009.
"Israel is a heavily regulated market, but we've been able to address these challenges and will continue to do so," Cellcom CFO Tal Raz told IBD.
In anticipation of lower interconnect fees, Cellcom has offset the reduction in revenue by raising fees for certain subscribers. The firm is also moving ahead with "bucket" plans that will help negate losses in revenue due to the change in minimum airtime billing units.
Another change that has gone into effect is local number portability. This allows customers to switch providers while keeping the same phone number.
William Blair analyst Jeff Rosenberg expects this to increase customer turnover, or churn, while raising marketing costs to retain those subscribers.
Churn rose 150 basis points to 5.3% in the first quarter from a year ago, due in large part to local number portability and the implementation of shorter contracts.
Cellcom said earnings shot up 53% to 78 cents a share, beating views by 19 cents. A dividend was issued of roughly 74 cents a share, which is a 96% payout of net income.
Revenue increased 11% to $452.2 million, according to Thomson Reuters. Equipment revenue -- handsets and accessories -- grew 47% from a year earlier, while total services revenue was up nearly 6%.
Raz attributed the rise in revenue to a 9% increase in airtime usage. Average monthly subscriber minutes of use rose 3% to 351 minutes, reflecting increased utilization.
Cellcom cut costs by bringing some services, such as the installation of hands-free vehicle devices, in-house, as well as making changes to repair services. Also, the company was effective in reducing handset acquisition costs and handset accessory expenses to sustain margins.
Cost efficiencies as a percentage of revenue dropped from 21.4% last year to 19.4% in the first quarter this year, the company reported.
"The management team has done an excellent job in increasing efficiency in the business, managing regulatory risks and building the Cellcom brand," Rosenberg said.
But it will become increasingly difficult to outperform expectations, he says, given the significant cost savings already achieved, continuing heavy regulation and limited market growth opportunity.
Israel's wireless penetration rate is 120%, mainly because people with more than one wireless device get counted twice. Analysts estimate that out of a population of 7.3 million people, 80% own at least one mobile phone.
There is not a lot of room for increased penetration, and because of this, analysts say the story becomes one about the monthly average revenue per user. ARPU dipped slightly during the first quarter to $40.80, the company said.
"ARPU remained relatively stable year over year," Rosenberg said. "(It) was sustained largely due to an increase in (third-generation) subscribers, data and content value-added services, which helped to offset pricing competition."
Third generation refers to the data transmission capabilities over a cellular network that provide Internet access and real-time video.
Despite stifling regulation and a mature market, Raz says there still remains attractive market fundamentals, especially in data and content services.
"Strong growth can still be achieved because Israel is one of the world's most tech-savvy nations," Raz said.
Cellcom operates a high-speed downlink packet access (HSDPA) 3.5 generation network, which is the fastest high-speed content transmission available in the world.
New Customers
Last quarter, the company added roughly 104,000 net new 3G subscribers for a total of 523,000. Roughly 17% of Cellcom's total subscriber base already have 3G-capable phones. That leaves plenty of room for growth.
Revenue from data and value-added services grew 41% in the first quarter. Goldman Sachs analyst Albert Kabili expects at least a 20% compound annual growth rate for data and content during the next three years.
"Data remains highly under penetrated in Israel vs. most Western European countries that are 20% or greater," Kabili wrote in a note. "Data shows no immediate signs of deceleration."
While the majority of company's telecommunication services are mobile, Cellcom entered the fixed-line business about 18 months ago. Its landline unit leverages the fiber-optic network used by the company for mobile backhaul.
"The fixed-line business enables us to generate noncellular revenue, and it is a good source of growth going forward," Raz said. |
Source: Cellular News.

Thursday, July 17, 2008
In Q1 08, the UK mobile customer base saw its first quarterly decline for two years, shedding 119k customers to finish the quarter on 70.67m. This is equivalent to a penetration rate of 116.0%. The losses were widespread, with O2, T-Mobile, Virgin and Tesco all suffering net declines. A similar range of companies also lost customers in Q1 07, but in that quarter a strong performance from Vodafone (723k net additions) ensured that the total customer base grew; in Q1 08, however, the highest figure for net additions was Orange’s 114k. Hutchison gained 75k and Vodafone 41k, but O2 lost 79k, T-Mobile 71k, Virgin 68k and Tesco 100k.
Quarterly Net Additions, Q1 07 vs Q1 08

Click here to see full article
|
On an annual basis, the Q1 08 loss was counterbalanced by a strong Q4 07 (1.89m net additions), leaving annual growth at 5.0%, almost exactly the same rate as the preceding 12 months (4.9%). However, there was no such consistency on the operator level. Virgin was down 0.9% to 4.42m having seen 3.2% growth in the previous year. O2 managed to record a year-on- year gain in customers, but its 4.7% growth rate was less than half the year- earlier figure of 10.2%. Tesco also saw its growth rate halved, from 35.9% to 17.9%, with a quarter-end customer base of 1.65m.
On the other hand, both T-Mobile and Orange improved dramatically on the 0.9% annual growth they both recorded in Q1 07. T-Mobile grew by 4.2% to 10.24m, while Orange saw a 4.4% uplift to 15.76m. However, Orange did not make any inroads into Vodafone’s lead, which it gained in Q1 07.
Vodafone was the most consistent performer in the market, edging its 6.9% growth rate up to 7.7% to finish the quarter 0.85m ahead of Orange on 16.60m. O2 remained the market leader, however, with 20.05m customers at the end of Q1 08.
W-CDMA connections surpassed the 10m mark during Q1 08 to finish the quarter on 10.83m, up from 7.1m a year earlier. This takes the W-CDMA proportion to 15.3%, up from 10.5%. |
Source: Cellular News.

Wednesday, July 16, 2008
SAO PAULO -(Dow Jones)- The number of mobile phones in circulation in Brazil totaled 133.2 million at the end of June, up 1.9% from May, according to preliminary figures released Tuesday by telecommunications regulator Anatel.
Net additions in the month were 2.6 million.
Brazil's main operators are Vivo Participacoes, which is jointly owned by Spain's Telefonica and Portugal Telecom; TIM Participacoes, the local unit of Telecom Italia; and Claro, the local unit of Mexico's America Movil.
Source: Cellular News.
The first mobile virtual network operator (MVNO) in Cameroon has been launched under the brand name, Yemba. At a press conference organised by Providence Technologique, the company behind Yemba, General Manger, Michel Nguetsop said that the company had secured an MVNO agreement with CDMA operator, Camtel.
The MVNO has set itself an ambitious target of two million subscribers by 2010.
Camtel was expected to activate an EV-DO upgrade on its Huawei supplied fixed wireless infrastructure last September - although it is not initially clear if this has happened.
According to the Mobile World database, there are currently two active operators in the country - MTN and Orange. The two operators ended the first quarter of this year with a combined 4.9 million subscribers - representing a population penetration level of 27%.
Source: Cellular News.

Monday, July 14, 2008
Asia Pacific saw record 3G net additions in Q1 2008 as 13.3m new connections were made, taking the total to 136.3m - a 53.7% increase with respect to Q1 2007. Here we only include CDMA EV-DO, and not standard 1x connections, as 3G; including 1x connections the total rose 37.7% to 264.3m. However, the source of growth in the base was undoubtedly W- CDMA, the 3G technology of the GSM family which accounted for almost 86% of all the mobile connections in Asia Pacific at the end of March. The number of W-CDMA customers grew 74% in the year to reach 98.4m, with a record 12.3m new customers joining in Q1 2008.
Organic Growth by Technology

By contrast, the EV-DO base grew by just 17.7% in the 12 months to 31s March, as net additions dropped drastically to under 1m in each of the last two quarters.
Without doubt the most significant driver of this trend has been South Korea, where W-CDMA customer numbers exploded to reach 9.2m at the end of Q1 2008, little more than a year after commercial launch by SK Telecom and KT Freetel. These two operators both used exclusively CDMA technology previously, which means that the success of W-CDMA has had a direct impact on EV-DO connection growth, which initially levelled out, only to go into reverse in July last year. In Q1 2008, more than 0.8m EV-DO active connections were terminated on a net basis in South Korea. LG Telecom, which is sticking with the CDMA standard, finally launched an EV-DO service late last year, but this is unlikely to do much to mitigate the effects of the migration process at its two rivals.
The technology switch in South Korea also had a material impact on the market’s overall CDMA numbers, which fell by over 2.5m in the quarter and 5.8m in the year.
The result for Asia Pacific as a whole was the lowest organic growth rate in the CDMA base seen for more than six years at just 3.5%, as the total moved to 189m. This compares with an increase in the GSM/W-CDMA base of 7.2%, from 1.07bn to 1.15bn. Meanwhile, the PDC customer base - located exclusively in Japan - fell by another 15% to just 14.3m - representing less than 1% of the regional total for the first time since the introduction of the proprietary standard in 1994.
Source: Cellular News.
According to data published by Senegal’s telecoms regulator Agence de Regulation des Telecoms et Postes (ARTP), cellular penetration reached 39.09% by 31 March 2008, up from 31.93% the previous year, as the total number of active SIMs reached 4.135 million. Senegal’s two incumbent mobile operators - Orange Senegal (formerly Sonatel Mobiles/Alize) and Tigo Senegal (formerly SENTELgsm) - collectively added just 12,852 new users in the first quarter of 2008, of which Orange Sonatel, part of the Paris-based Orange group, had 2.803 million users at the end of March, up from 2.464 million a year earlier. Meanwhile, Tigo had 1.332 million clients, from 923,555 twelve months earlier. An overwhelming 99.15% of all users are on pre-paid services, the regulator said.
In the fixed line segment, ARTP said the number of lines in service dipped from 285,774 to 260,493 in the year to 31 March 2008, a teledensity of less than three lines per 100 of population. Residential lines accounted for 66.9% of national PTO Sonatel's total, while business connections made up 28.2% and public payphones 4.9%. The residential fixed line base dipped 3,085 in the first quarter of this year, although this was partially offset by a 13.96% rise (9,464 lines) in business connections to 77,281. The internet market recorded 41,099 subscriptions at the end of the first quarter of which 98% (40,250) were ADSL lines and 2% dial-up.
Source: TeleGeography.
APA-Lilongwe (Malawi) A leading mobile service provider in Malawi, Celtel, on Friday celebrated a milestone of having added one millionth customer to its ever expanding mobile network in the country.
Celtel Managing Director Fayaz King told journalists in Lilongwe that the development places the company ahead of other players as an undisputed leader of the telecoms industry in Malawi.
"We are very proud to be associated with the current development which, in turn, should go a long way to assist in the country’s economic growth," he said.
King said since the company has now surpassed the one million customer base, it is now looking forward to reaching two million customers in years to come.
Malawi is ranked Number 12 in Africa in terms of customer base, with Nigeria’s 10 million customers leading the way.
Celtel Malawi, which was established in 1999, is part of a leading Middle East and African telecoms group, Zain Group.
Source: Cellular News.

Wednesday, July 09, 2008
Operator-billed service revenues across the Africa & Middle East region are expected to rise to more than $107 billion in 2013, according to a new report from Juniper Research.
The report found that growth would be driven by mobile data services, fuelled by the greater availability and wider variety of rich-media content coupled with lower browsing costs. However, it noted that regional operator-billed voice revenues were likely to peak in 2011 and would subsequently fall away due to increasingly competitive pricing in that sector.
According to Juniper Research report author Dr Windsor Holden, "While the downward trend in regional ARPU will continue as adoption increases amongst lower-usage customers, we expect the decline in voice ARPU to be partially offset by an increase in data revenues, both amongst 2.5G and 3G customers."
The report also observed that the region was likely to witness a surge in the growth of mobile financial services, with a raft of operator-led payment initiatives such as M-PESA and mobile banking providers such as WIZZIT having already gained substantial user bases.
Other findings from the Juniper Research report include:
- The Middle East/Africa mobile user base is to grow at an average annual rate of 10.5% between 2008 and 2013
- Mobile data services are expected to contribute 24% of operator-billed service revenues in 2013, against just 9% in 2008
- Saudi Arabia will provide the largest share of cumulative regional revenues over the forecast period, followed by Nigeria
Source: Cellular News.
MANILA -(Dow Jones)- Philippine Long Distance Telephone Tuesday said the number of subscribers to its mobile service, the group's main revenue earner, has exceeded 33 million at the end of June.
The country's largest telephone company by revenue said the figure reflects a net addition of over 1.6 million subscribers in the second quarter alone.
At the end of 2007, PLDT had a total 30 million mobile phone subscribers.
No other details were provided in PLDT's disclosure to the stock exchange.
Its chairman Manuel Pangilinan earlier said the company is sticking to its guidance that this year's core profit will rise 5% to PHP37 billion despite threats from surging inflation, which threaten to damp spending and increase the company's costs.
Source: Cellular News.

Tuesday, July 08, 2008
Communications market research firm Infonetics Research reports that worldwide service provider capex (capital expenditures) totaled $248.8 billion in 2007, a 7% increase from 2006. Infonetics' report projects a spike in worldwide carrier capex in 2008, followed by a plateau in 2010 and a decline in 2011, and emphasizes that the weak US dollar is inflating current growth rates in Brazil, Canada, China, Europe, India, and Japan.
"Our capex analysis indicates we are in the fourth year of an investment phase, and we may be reaching the plateau this year in both North America and Europe, where large service providers' capital intensity (the ratio of capex to revenue) will likely be as low as 12%. Meanwhile, China and India will drive a significant jump in carrier capex in 2008 as a result of network construction projects combined with currency appreciation against the US dollar. Both countries are still posting double-digit revenue growth in their native currencies, which, converted in US dollars creates a big spike in worldwide carrier revenue as well," said Stéphane Téral, principal analyst at Infonetics Research.
Other highlights from the report:
- Telecom service providers earned a combined $1.5 trillion in annual worldwide revenue in 2007, up 10% from 2006, with currency appreciation making up the bulk of the growth, while the rest came from wireless services
- Carriers are increasingly investing in application software (vs. hardware) for media rich applications such as content, storage, and security for broadband based wireline and wireless services
- Current investment drivers for carrier spending: convergence between IT, media, Internet, and telecom, which is adding new competitive pressures to carriers, and the shift from legacy TDM to next generation IP networks
- The world's 10 largest service providers (ranked by 2007 revenue) are AT&T, Verizon, NTT, Deutsche Telekom, France Télécom, Vodafone, Telefónica, China Mobile, BT, and Sprint
- The next largest service providers include Telecom Italia, Comcast, and KDDI, which, according to their most recent growth rates, are poised to join the top 10
- The incumbent share of North American carrier capex jumped from 56% to 63% in 2007; MSOs are expected to increase their share of North American carrier capex by 2011
- The Asia Pacific telecom industry is squeezed between 2 opposite market forces: a saturated market made of Australia, Hong Kong, Japan, South Korea, Singapore, and Taiwan characterized by flat to decreasing capex, and a fast growing market driven by China and India, characterized by double digit growth for both capex and revenue
- Caribbean and Latin America (CALA) service provider revenue jumped 29% between 2006 and 2007
- Mobile infrastructure makes up the bulk of total equipment capex in 2007, accounting for about 20%, followed by voice infrastructure, optical equipment, and broadband aggregation equipment
- WiMAX equipment spending by service providers as a portion of total carrier capex has roughly doubled each year since 2004, and will continue to increase its share in the near term, driven by major WiMAX projects in the US, India, and Latin America.
Source: Cellular News.

Monday, July 07, 2008
The global BWA/WiMAX subscriber base increased by 260,246 in the first quarter of 2008, reaching a total of 1,988,246 subscribers according to figures from Maravedis.
“Even with an increase of more than 19% in WiMAX subscribers in the first quarter of 2008, operators are still waiting for the tipping point that will lead to acceleration of WiMAX adoption and deployments,” said Adlane Fellah, CEO and founder of Maravedis. “The key factors mainly centre on certification of mobile WiMAX equipment, a reduction in CPE pricing and the emergence of a device ecosystem.”
“Many operators have held back their network expansion pending the mobile WiMAX 802.16e equipment certification, which was announced in June 2008. Mobile WiMAX is a key enabler of a wider range of value-added services and product flexibility.” added Cintia Garza, co-author of the WiMAXCounts Quarterly Report.
“Of the 264 operators tracked in WiMAXCounts, approximately 50% of them are providing HIS (High Speed Internet) services only. The remaining percentage corresponds to operators that are offering different applications, such as VoIP, Video, VPN , in addition to HIS. We expect however double/triple play to become the norm in the next two years” said Robert Syputa, Maravedis Partner and Senior Analyst.
This Quarter's Key Findings:
- 65% of Operators are already commercial, 14% are trialing, 9% are planning their launch, 10% have idle spectrum and 2% have returned/lost spectrum.
- Clearwire USA remains the top operator in number of subscribers, with an estimated 443,000 subscribers in the United States at the end of Q1 2008, an increase of 12.5% compared to the 394,000 subscribers reported in Q4 2007.
- The split by subscriber type among WiMAXCounts operators was 65% residential and 35% business.
- The 3.3–3.8 GHz band is the most widely deployed, with 63% of WiMAXCounts operators deploying their WiMAX networks in this band in Q1 2008, compared to 70% of the Operators deploying in this band during Q4 2007.
- Q1 2008 BWA/WiMAX service revenue among WiMAXCounts operators totaled US$ 366 million, as compared to $US 303.65 million during the previous quarter, an increase of 20%.
- Q1 2008 recorded ARPU was US$ 48 and US$ 146 for residential and business subscribers.
- Motorola remains the leader in equipment deployed for both BWA/WiMAX CPEs
Source: Cellular Nesws.

Friday, July 04, 2008
Israel was dumped from third to fifth position in the Middle-East & Africa (MEA) penetration rankings in Q1 2008 as both the Seychelles and Qatar overtook it to line up behind the United Arab Emirates and Bahrain, which have held the top two places for the last year. If the second quarter even came close to matching the first in the UAE, then that market will have finished June with a penetration rate in excess of 200%, the rate having stood at 192.5% at the end of March.
MEA: Number of markets in each penetration band

The ownership in Bahrain was more than 20pp behind, at 172.2%, although in the last two quarters at least, the rate has been growing noticeably quicker than in the UAE. The rate in Qatar and the Seychelles has been progressing much more steadily, but both overtook Israel as penetration fell for the first time ever from 127.1% to 126.3% in Q1 08. Four other markets - Kuwait, Reunion, Saudi Arabia and Libya - boasted penetration rates in excess of 100% at the end of March 2008.
Libya became the first mainland African market to join this elite club in the quarter, as the quite remarkable rise of mobility in the country continues.
South Africa was the tenth most penetrated market at the end of Q1 08 with a rate of 96.6%, after also suffering a decline in penetration (although in this case not its first) from 97.9% in the quarter. The penetration rates of a further seven markets also lay within the fourth quartile at the end of March, these being Botswana (90%), Algeria (87%), Oman (83%), Gabon (80%), Jordan (79%), Tunisia (78%) and new entrant Mauritius (76%). Perhaps surprisingly, only three markets - Morocco, Gambia and Mauritania - finished Q1 with penetration rates between 50% and 75%. However, Iran joined them just a few days after the end of the quarter, the mobile ownership rate there having stood at 49.6% at the end of March.
Iran breaking the 50% barrier would have taken the total number of markets with penetration rates in excess of 50% to 21, after Mauritania and Gambia took the total from 18 to 20 in the first quarter. Including Iran, 50 of the 70 markets in the MEA region finished Q1 08 with penetration rates below 50%. However, progress is clear to see. At the end of Q1 07, 36 of markets had penetration rates of 25% or below, a number which fell to 25 a year layer.
Source: Cellular News.
WELLINGTON -(Dow Jones)- Vodafone New Zealand Friday said it will extend its third generation mobile network to cover 97% of the population, taking total spending on 3G infrastructure investment to NZ$500 million. The local unit of U.K.-based Vodafone PLC said its advanced mobile network would cover 97% of the places New Zealanders live and work in by 2010, up from the 63% coverage currently.
"The network extension means we'll be able to offer true broadband speeds to almost every New Zealander, and especially our rural customers, by April 2010," said Vodafone General Manager Corporate Affairs Tom Chignell. "This means broadband will be available on customers' mobiles and it can be used as a cost effective home solution, especially in areas where no land line-based broadband is available," he said. Vodafone said an enhancement of its downlink speed to 7.2 Megabits per second is currently being rolled out. In the future, peak downlink speeds will go up to 28.8 Mbps and uplink speeds 11.5 Mbps using High Speed Packet Access protocols.
Responding to the announcement, Communications Minister David Cunliffe said the country's regulatory regime has given telecommunications companies the flexibility to bring broadband to rural areas. "This announcement means that more New Zealanders will have access to high-speed internet via their home computers, laptops and on their mobile phones," Cunliffe said. "While many countries are still struggling with the removal of outdated restrictions on the use of lower frequency bands for HSPA, the flexible spectrum regulatory arrangements in New Zealand mean that the benefits of this technology can be delivered to New Zealanders now."
Vodafone is currently also ramping up competitive pressure on Telecom Corp. of New Zealand by aggressively rolling out new broadband and home phone products following regulation that split the former state-owned monopoly into three separate companies and gave rivals access to its network.
Source: Cellular News.
A survey carried out in Nigeria's capital, Abuja has indicated a growing demand in the GSM dominated market for CDMA based mobile phones. The survey, carried out by local newspaper The Tide cited the regular problems with network congestion on the GSM networks in the city for the increased interest in CDMA operators. Currently there are four CDMA operators in the city, Multi-links, Visafone, Starcomms and Reltel.
The respondents hinged their optimism on clarity of communication and affordability of CDMA phones, when compared with GSM phones.
"For instance, with as little as N1,500, you can get a phone and a line on the CDMA network, while for a GSM line, a subscriber may need to pay at least twice that amount," claimed respondents to the survey.
Mr Wakili Shehu, a telecommunications consultant said that "the technology also provides the capacity for quicker transmission of data and Internet, unlike the GSM which has limited capacity," but he warned that the use of the CDMA technology in the country was also fraught with challenges, such as limited coverage of cities and towns, unlike the GSM.
According to figures from the Mobile World database, Nigeria ended Q1 '08 with some 567,000 active CDMA subscribers - compared to some 43 million GSM users.
Source: Cellular News.
BNamericas is reporting that the Dominican Republic ended May 2008 with a fixed and mobile teledensity of 70.4%. Indotel, the country’s telecoms regulator, announced there were 6.35 million wireless subscribers at the end of May, up from 2.5 million in December 2004. Internet usage penetration is reported at 21%, with a total of 2.28 million users, more than four times the figure recorded at December 2004.
Source: TeleGeography.

Thursday, July 03, 2008
At the end of Q1 08, there were 42.3m mobile customers in South Africa, meaning it was surpassed by Nigeria as Africa’s largest market. This was mostly due to a strong quarter in Nigeria, but the loss of 0.61m South African customers in Q1 certainly helped. This decline also meant that South Africa failed to break the 100% penetration barrier, having reached 97.9% at the end of 2007; the loss of customers saw it slide to 96.6%.
3G customers: Vodacom and MTN

This still makes it the highest-penetrated sub-Saharan market, although having reached 104.9% at the end of Q1 08, Libya has become the first African market to surpass the 100% mark.
Vodacom suffered the greatest loss in real terms, shedding 0.79m active customers to slide back to 22.27m, lower even than the Q3 07 figure of 22.50m. Year on year it gained 1.70m. It remains the country’s clear market leader with 52.6% of the total, although this is its lowest figure since Q4 04. Cell C also saw a decline in customers - perhaps inevitably, given its dramatic gain in Q4 07. It lost 0.19m to slide back below 5m to 4.91m, with net annual additions totalling 1.68m. In terms of market share, it lost 0.3pp quarter on quarter but still recorded a rise compared to Q1 07, ending Q1 08 on 11.6%. Third player MTN was the only operator to gain customers on a net basis in the first quarter, finishing up 0.37m on 15.17m. Combined with the other operators’ losses, this saw it reach its highest market share figure for three years, with 35.8% of the total.
MTN has also seen its share of the 3G market rise, a 10pp year on year gain taking its Q1 08 figure to 46.2% of the total. It went through the 1m barrier during Q1 to finish on 1.12m thanks to a record-breaking 211k quarterly net additions. Vodacom finished on 1.30m. In total, the number of W-CDMA handsets grew by 163.6% year on year, from 0.9m to 2.4m.
Because of the loss of customers in Q1 - the first such quarterly decline in more than six years - annual growth slumped to 14.4%, the lowest figure since Q2 02.
Source: Cellular News.
The chart shows the fastest growing businesses in the MEA region over a twelve month view. The list includes nine of the names that feature in the Q1 08 list, with Zain Iraq coming in at Algerie Telecom Mobile’s expense. The top two places are the same in the year as they are in the quarter, with TCI’s 9.12m just shading Irancell’s 7.95m. The other really strong performances in the region were spread across five main markets - with Mobily in Saudi Arabia taking third place ahead of two Egyptian companies, three from Nigeria and one each from Iraq and Kenya.
Leading MNOs by Net Additions, year to 31st March 08

Click here to see full article
|
Mobily has defied the weight of demographics to come third and it now has the second highest market share of any second entrant in the region, behind the estimable Nawras in Oman, which heads that list with 42.5% of its national total.
Both the Egyptian companies have been given extra impetus by the arrival of a new entrant in the form of Etsalat. This launched its service in Q2 07 and has added nearly 2m customers of its own, but as is invariably the case, the incumbents are the main beneficiaries of new arrivals, at least initially. Mobinil added 5.49m and Vodafone 4.64m over the last twelve months, to take fourth and seventh places.
Nigeria, with a population of 137m was always going to become Africa’s largest market and it managed that in this last quarter. Three of the eight licensed networks feature amongst the elite list, Zain, with 5.36m adds, MTN with 4.38m and Glo with 4.27m. The numbers of these operators have been subject to some adjustment in recent weeks, after revisions related to activity levels, but are now almost certainly a fair reflection of the state of the market. That may not be quite so true in the case of Safaricom in Kenya, which was the sixth fastest growing business, with 4.6m adds. Its recent IPO documentation suggested that it uses a rather liberal definition of the word customer.
Lastly, Zain Iraq owes its place on the list to the merger of the former Orascom business with Zain’s own Atheer Telecom. The depth of demand for mobile in this region is underlined by the fact that a further 15 companies all added more than one million customers in the twelve months, while a further 21m added more than 0.5m. |
Source: Cellular News.

Tuesday, July 01, 2008
A new analysis of the mobile payments opportunity forecasts that the gross transaction value of payments made via mobile phone for digital goods (such as music, tickets and games) and physical goods (typically gifts and books) will exceed $300bn globally by 2013.
A region by region analysis by Juniper Research found that there is a significant and immediate opportunity for mobile payment services, systems, software and supporting services to underpin the processing of this value of payment transactions by 2013. With applications and service case studies, the study explores how the mobile phone is developing into a payment tool that will be used by more and more people, more and more often in future.
Report author Howard Wilcox noted: "Merchants in North America and Western Europe are just starting to realise the potential of a mobile web presence as a fourth channel to market. Retailers should be evaluating the benefits of the mobile web, and be mindful of the success of regular ecommerce sites in generating sales. They need to move quickly to exploit the opportunity presented, and ensure that they maintain ease of use for their customers who are already familiar with web shopping from their PCs."
Highlights from the report include:
- Global annual gross transaction value will grow over 5 times by 2013
- The ticketing segment will be driven by consumer usage on rail, air and bus networks as well as sports and entertainment events. This will represent over 40% of the global transaction value by 2013
- The top 2 regions (Far East and W. Europe) will represent over 60% of the $300bn p.a. global mobile payment gross transaction value by 2013 for digital and physical goods
Western Europe is currently dominated by digital goods and services sold via SMS, whereas the Far East & China region (specifically Japan) is already well established in physical goods sales over the mobile web, and has been for a number of years.
Source: Cellular News.

Monday, June 30, 2008
An EU-wide survey of 27,000 households has revealed the emergence of new consumption patterns in telecoms services in Europe. Technological progress and competition have brought more choice to European consumers as almost a quarter (24%) of households have given up their fixed telephone in favour of mobile phones while 22% of them are using their computer from home to make phone calls over the Internet.
In an increasing number of Member States, European households are using wireless access to connect to the Internet, via mobile or satellite networks. Meanwhile, 29% of European households buy bundled telecoms and media packages, an increase of nearly 10% since last year.
Nevertheless, the top priority for consumers in this fast evolving environment remains the quality of services.
Click here to see full article
|
The key findings of the survey:
- Users are increasingly switching from fixed to mobile phones with around 24% of EU 27 households just using mobile. The proportion is significantly higher in the new Member States (39%) than in the EU 15 (20%), with the exception of Finland (61%) and Portugal (48%). In some Member States this increase is accompanied by an increased use of wireless access to the Internet via the mobile phone network or satellite (Czech Republic, Slovakia, Austria and Italy).
- 22% of European households with Internet connections now use their PC for making phone calls. This figure is twice as large in Latvia (58%), Lithuania (51%), Czech Republic (50%), Poland (49%) and Bulgaria (46%).
- 29% of European households buy two or more telecom and media products from a single service provider (an increase of 9% since winter 2007), the combination of fixed telephony and Internet access being the most common.
- Almost half of European households have access to the Internet (49%) and an increasing majority enjoy a broadband connection (36% of EU 27, an increase of 8% since winter 2007). Most connected households access the Internet via an ADSL line (59%, an increase of 4% compared to last year). The main reason quoted for not having an access at home remains the lack of interest in Internet (50% of respondents).
- 22% of European households have difficulty contacting their Internet service provider about connection problems. A similar number said the cost of the support they get is not affordable.
- One in four mobile users is not always able to connect to the mobile network to make a phone call. 28% are sometimes cut off.
- More households are receiving digital terrestrial television: an increase of 5% since winter 2007 to now 12% of EU 27 households. The share of households with analogue television reception via an aerial has fallen from 45% to 41%.
- One in ten EU households receives television by more than one means (aerial, cable, satellite, Internet). The figure is even higher in France (25% of households), UK (22%), Italy (19%), Sweden (19%), and Cyprus (16%).
The survey was conducted with a sample of 27,000 representative households from 27 countries, from November to December 2007. |
Source: Cellular News.
According to the latest ROA Group report, the number of mobile WiMAX users in South Korea will increase to more than 2.5 million by 2011. The market revenues are also expected to increase to KRW65 billion (US$627 million) by 2011. Mobile WiMAX, called WiBro in Korea, was commercially launched in the country two years ago, on June 30, 2006, but due to insufficient CAPEX investment, resulting in poor service coverage and device line-up, the subscriber growth was slow, until KT started strong marketing strategies to attract subscribers in early 2007. The subscribers increased 5,600 in April 2007 to 106,000 in December 2007. In 2008, the subscribers are increasing by about 10,000 per month. In addition, KT and SKT, the two mobile WiMAX operators in Korea, have decided to expand their investment from 2008, and the mobile WiMAX market is expected to grow faster.
Moreover, the availability of VoIP will have a significant influence on subscriber addition. Currently, the biggest disadvantage with WiBro service is that it fails to provide a killer application. To become a 4G mobile technology, voice support is a must for WiBro and a necessary element for competing with HSDPA and its next generation version, LTE in 3G/4G mobile market, says Ku Kang, analyst at ROA Group.
To improve the service expansion, Electronics and Telecommunications Research Institute (ETRI) in Korea is developing NeMA (New Mobile Access), an upgraded version of WiBro. NeMA is a technology for the users who move at a high speed; at 100Mbps while moving at the maximum of 120km/h. In 2007 ETRI developed NoLA, which is LAN-based technology for the users who move at low speeds. ETRI plans to combine these two technologies and if it succeeds, the Korean market could witness next year a service that allows the users to use Internet in a moving vehicle on the highway.
Source: Cellular News.

Friday, June 27, 2008
Worldwide mobile subscriptions will rise from 3.9 billion in 2008 to 5.6 billion in 2013, according to a new Strategy Analytics report. Discounting for people with more than one subscription, more than half of the world’s population will be using mobile phones by early 2010, up from 40% at the start of this year.
3G share of subscriptions and revenues

Asia-Pacific and the Middle East & Africa (MEA) are responsible for the current surge in mobile subscriptions. Those areas will remain the engines for growth in the wireless market in the medium term, contributing to 80% of subscription growth through 2013.
“These two regions may be driving the subscription count, but they contribute much less to global revenues,” comments Phil Kendall, Director Global Wireless Practice. “Asia-Pacific and MEA account for nearly 60% of worldwide subscriptions, but less than 40% of revenues. Their increasing significance will reduce average revenues per subscription by 15% over the next five years”.
3G networks will account for half of all mobile subscriptions by 2013. Susan Welsh de Grimaldo, Senior Analyst, Wireless Network Strategies, adds, “3G technologies will reach critical mass in more regions in 2008, driving worldwide subscriber numbers close to 500 million by year end. Next year, more than one third of all service revenues will be generated by 3G technologies, even though 3G accounts for only one in six subscribers.”
Source: Cellular News.
The number of mobile connections in Argentina is almost certain to have surpassed 40m at the time of writing, having reached 39.47m at the end of Q1 08. Furthermore, if Q2 net additions match last year's figure, then penetration will have broken the 100% barrier by the end of the current quarter, with Q1's figure standing at 97.3%.
Customers, America Movil vs. Telefonica, Q2 06 – Q1 08

Annual growth stood at 21.1%, an impressive figure given the maturity of the market, although exactly half the 42.2% rate recorded in the prior twelve months. Annual net additions totalled 6.87m, while on a quarterly basis there were just 0.89m new connections due to the combined effect of first-quarter slump and high penetration.
The biggest story of the quarter was the change in market leader, with America Movil's customer base overtaking that of Telefonica. At the end of Q1, AM had 13.99m customers to 13.75m for Telefonica, compared to Q1 07 figures of 10.93m and 11.68m respectively. As the graph on the left shows, the trajectories of the two companies over the past two years made the change in leadership all but inevitable, with AM outpacing Telefonica in terms of quarterly net additions for the past eight quarters. In fact, AM's Q1 08 figure of 511k was its lowest for three years, but Telefonica had an even worse quarter with just 125k net additions, its worst result since Q3 03.
Meanwhile, third player Telecom Personal - the mobile subsidiary of Telecom Argentina - added 216k to finish on 10.88m, while Nextel reached 0.85m thanks to record first-quarter net additions of 39k.
GSM dominates in Argentina, and as in the rest of the continent its domination has been steadily increasing. At the end of Q1 08, 92.9% of the total customer base was using GSM technology, up from 86.5% a year earlier. CDMA's proportion dropped from 7.5% to 3.8%, while AMPS and TDMA connections dwindled to just 0.8% from 3.9% a year earlier. W- CDMA, which was launched by Telecom Personal in Q2 07 and by Telefonica in Q4 07, had an estimated 0.15m customers at the end of Q1, giving it 0.4% of the country's total customer base. Finally, Nextel's iDEN technology improved its share slightly, from 2.1% to 2.2%.
Source: Cellular News.
China's mobile phone accounts rise to 592 million; number of fixed-line accounts falls
China's fast-growing number of mobile phone accounts has risen more than 8 percent since the start of the year to 592 million, while demand for traditional fixed-line service is falling, a state news agency reported Thursday. The figures reflect a growing trend for Chinese customers to opt solely for mobile service. The shift has hurt fixed-line carriers, prompting Beijing to launch a massive industry reorganization to revive competition.
The number of mobile accounts in China grew by 44.8 million through the end of May, the Xinhua News Agency said, citing the Ministry of Information Industry. It said the number of fixed-line accounts fell by 6.5 million to 358 million. China has by far the world's largest population of mobile phone users. But several million have multiple phones for personal and business use, so the total number of subscribers is smaller than the number of accounts. The boom has turned China's dominant mobile carrier, China Mobile, into the world's biggest phone company by number of subscribers, with more than 400 million. Meanwhile, fixed-line carriers China Telecom and China Netcom have seen subscriber demand and profit growth slump.
That prompted Beijing to announce an industry restructuring in May aimed at creating more robust competitors to China Mobile. It would create three groups based around China Mobile, China Telecom and China Netcom, each with a mix of fixed-line and mobile assets. The government says the reorganization will clear the way for the long-awaited awarding of licenses for third-generation, or 3G, mobile service. That technology, which supports wireless video, Web surfing and other services, is expected to boost revenues for mobile carriers still further.
Source: Cellular News.

Thursday, June 26, 2008
A new report from Juniper Research says that the number of subscribers using mobile Internet services will rise from 577 million currently, to top 1.7 billion by 2013, spurred by demand for collaborative applications known collectively as 'web 2.0,' and greater 2.5/3G penetration. Putting that figure into some context, a report from Gartner earlier this week had said that the worldwide PC base would reach 2 billion by 2014 - so internet access by mobile phones will represent at around 50% of the total internet usage.
According to a new report from Juniper Research, the emergence of applications such as: Social networking; User Generated Content (UGC); Instant Messaging (IM); Location Based Services (LBS); Search calls for delivery of the mobile Internet as it was originally conceived -- i.e. an open environment in which users are able to share, collaborate and exploit content/information without any one party controlling the value chain.
This marks a fundamental shift for the industry towards the D2C (direct-to consumer) model and places growing pressure on mobile network operators (MNOs) and handset manufacturers in particular, to relinquish some of their control over the value chain, by opening up their networks/devices to third-parties.
"Major web players have already crossed the Rubicon and established themselves in the mobile domain, placing the onus on MNOs and other members of the value chain to form innovative relationships and grab a share of the new revenue streams being created," comments Ian Chard, Juniper Research Analyst and author of the report 'Mobile Web 2.0: Leveraging Location, IM, Social Web & Search 2008-2013.'
"The mobile web 2.0 market is still nascent and business models remain in a state of flux, so there is still time for players to establish fruitful partnerships that build on their strengths and are reciprocally beneficial. The window of opportunity, however, is closing."
Source: Cellular News.
Approximately 135,000 subscribers use 3G services in Argentina, reveals BNamericas quoting local newspaper El Cronista. Telecom Personal's innovation and services manager told the paper that the cellco has approximately 75,000 3G users on its books, up from 20,000 at the end of 2007. Rival operator Claro has 50,000 active 3G customers, of which 30,000 access the network via modems or PC cards. Movistar is said to have 10,000 3G subscribers. All three companies launched next generation services in 2007, and the relatively poor take-up has been attributed to lack of coverage.
Source: TeleGeography.

Wednesday, June 25, 2008
The CDMA Development Group (CDG) has announced that, as of Q1 2008, Indonesia had more than 16.3 million CDMA2000 subscribers -- making it the leader in Southeast Asia for 3G CDMA subscriber growth. The CDG attributes the increase in large part to the availability of ultra low-cost handsets and affordable tariffs, which are critical to technology and service expansion in emerging markets. "Indonesia has emerged as a prime showcase of CDMA2000's core value proposition," said Perry LaForge, executive director of the CDG. "With a dynamic combination of ultra low-cost handsets and value-added broadband services, Indonesia's six CDMA operators have boosted their revenue streams and propelled the region into the spotlight for mobile telephony and Internet growth."
Indonesia's CDMA2000 operators are Telkom Flexi (PT Telkom), StarOne (Indosat), Smart Telecom, Fren (Mobile-8 Telecom), Esia (Bakrie Telecom) and Ceria (Sampoerna Telekomunikasi Indonesia or STI). By March 2008, the total number of CDMA2000 subscribers among all six carriers exceeded 16.3 million, up from 14.4 million at the end of 2007 and 7.8 million at the end of 2006, representing annual growth rates of 53 percent and 85 percent, respectively.
Indonesia has the highest number of CDMA subscribers in Southeast Asia. "With CDMA2000, we are confident in providing a telecommunication service that is within reach by all people from all levels of society," said A.R. Martirez, Chief Executive Officer of PT Smart Telecom. "We are taking rapid steps to expand our penetration and market development through various products and services. This proves that CDMA2000 can readily fulfill all telecommunication wants and needs of customers in this country. And we demonstrate this with our value-for-money offer to the market, in terms of an economical tariff and affordable handsets, on a network that provides a pervasive yet efficient coverage. Best of all, it delivers a superior quality of service in both Voice and Data that customers expect."
Source: Cellular News.
Pioneer Consulting has published a new report which shows that a significant portion of multimedia content on mobile phones is either user generated or is simply being stored on the handset. This content, termed User Originated Content (UOC) is being increasingly shared with friends, family and contacts on social networks. With handsets starting to have Bluetooth, WiFi and WiMAX capabilities, end users can use alternative networks to share content, effectively bypassing the operator’s mobile network and the content value chain. Pioneer Consulting estimates that as a result of users sharing content and bypassing the existing value chain, $16.4 billion worth of revenue opportunity will be at risk by 2012. This is estimated to be more than a quarter of the total revenue opportunity for that year.
However, the study says that all is not lost yet and operators can play a key role in preventing this disruption from happening. To begin, mobile operators need to re-evaluate the applicability of the traditional client-server content delivery architecture in an environment where a large portion of the content originates from the handset. In addition, operators need to realize that there will be a bandwidth bottleneck between the base station and the handset due to an oversubscribed air interface, especially in the case of bandwidth heavy multimedia content.
Robert Hsieh, author of the report says that, “Mobile operators need to embrace peer to peer (P2P) methodologies within their own networks and focus on the advantages of using both assisted P2P and augmented P2P to mitigate the disruption”. Aditya Kaul, Senior Analyst, Emerging Wireless at Pioneer adds that, “P2P is generally treated with contempt by operators and has now become the 'P' word that should never be uttered. It is more of an attitude problem rather than an engineering one, and unless operators wake up to the reality of the situation, we cannot even begin to solve the problem”.
Source: Cellular News.
Pan-Caribbean operator, Digicel has announced that it has ended its fiscal year (March 31,2008) with 6.54 million customers, representing a 39 percent increase compared to the same quarter in the previous fiscal year. Operating across 23 markets, Digicel Group continues to experience organic growth in existing markets while increasing mobile penetration growth rates in new markets. In November 2007, Digicel successfully launched operations in Suriname. Digicel already has a presence in South America through its operations in Guyana and French Guiana. Its Caribbean and Latin American GSM networks also extend across the British West Indies, the Dutch Caribbean, the French West Indies, Bermuda and El Salvador.
Digicel says that it plans to further expand later this year with a pending launch in the British Virgin Islands, while Digicel Central America Holdings, a sister company to Digicel Group, prepares to launch in Honduras and Panama. These launches will expand Digicel's GSM network to 26 markets.
"We're very excited about our ability to sustain growth opportunities in existing markets while picking up momentum in new ones, and we've had one of our most successful financial years to date," said Colm Delves, Digicel Group CEO. "We will continue to put our customers first by offering them better value, world-class customer care, new technology innovations and attractive offerings based on the strength of our network."
Source: Cellular News.

Monday, June 23, 2008
According to IDC India, close to 85 million mobile phones were shipped in India between April 2007 and March 2008, compared to just under 66 million units shipped over the equivalent period a year ago. This was a record and amounts to a year-on-year growth of around 29 percent in terms of units.
Click here to see full article
|
Kapil Dev Singh, Country Manager, IDC India said, “This growth comes on the back of a burgeoning mobile services market and lower entry barriers across various customer categories, as average selling values (ASVs) of handsets continue to fall in the wake of a highly competitive landscape populated by close to 25 vendors.”
FY 2007-08 also witnessed shares of higher-level air interfaces rising. EDGE and WCDMA-enabled mobile phones contributed 15.4% and 3.1% of the total mobile phone shipments in 2007-08 compared to 7.4% and 1.2%, respectively, in 2006-07.
Naveen Mishra, Manager, Communications Research at IDC India, said, “As the need of Indian mobile phone consumers is evolving, they are demanding feature-rich devices, which can cater to their business communication requirements as well as their personal needs.”
Shipments in Q1 2008 stood at more than 22 million handsets, which amounts to around 10,000 mobile phones being shipped every hour during the quarter. In the same quarter a year ago (Q1 ’07), just under 18 million mobile phones were shipped.
Overall, Nokia retained the top spot with a market share of 52.8%, followed by LG at 10.2%, and Samsung at 8.3% in terms of units shipped during the quarter ended March 31, 2008. |
Source: Cellular News.
The total number of active mobile lines in Brazil reached 130.5 million at the end of May, up 24.2% year-on-year, according to preliminary data published by the country’s telecoms watchdog Anatel. Of the total, some 80.95% are on pre-paid options and 19.05% are on post-paid monthly contracts. Last month Brazil’s mobile operators collectively signed up a total of 2.8 million net new lines, up 2.2% month-on-month and 27.1% higher than the number of users added in May 2007. As a result, the overall cellular penetration rate stood at 68.23% at the end of last month. However, there are some marked regional differences. Distrito Federal boasted a mobile teledensity of 126.01%, the state of Rio de Janeiro was 85.09% and Mato Grosso do Sul was 83.59%. By contrast cellular penetration in the north of the country was 51.17%, the northeast was 53.91%, the southeast (75.81%, the south (74.26%) and the centre-west (85.35%).
In terms of market share, Brazilian mobile operator Vivo led the way with 30.45% of the market, compared to 30.36% in April. TIM Brasil remained in second place with 25.60%, down from 25.85% a month earlier, and Claro, a unit of Mexico's America Movil was third with 24.75%. TNL PCS (Oi) took the fourth spot with 15.09% in May, while Brasil Telecom (BrT GSM) came in fifth with 3.76%, up from 3.66% in April. In the minor rankings, CTBC Telecom Celular remained at 0.30% and Sercomtel Celular decreased from 0.06% in April to 0.05% in May.
BNamericas reports that Anatel amended its data reporting in April to reflect the incorporation of Telemig Celularby Vivo, and of Amazonia Celular by Oi.
Source: TeleGeography.
Nigeria based Globacom has sold a staggering 600,000 new SIM cards since it launched its new Glo Mobile branded network in Benin just under two weeks ago. The company says that traffic has been significant at its new retail stores as well as 3rd party outlets.
The company won a GSM operating license in the country last year and has built out its network covering the main cities, with a new switching centre in Cotonou, capital of the country.
Estimates from the Mobile World record that the country ended last year with around 1.4 million subscribers, representing a population penetration level of just 17%. By that measure, the new network has captured some 30% of the enlarged market within just a few days.
The market leader at the end of last year was MTN with just over 54% of the market, followed by Bell Benin with 21.5%. Moov comes third with 24.6%.
Source: Cellular News.

Tuesday, June 17, 2008
Nigeria based Globacom (Glo Mobile) has won a licence to operate mobile cellular service in the Republic of Ghana - just a week after the company launched its services in Benin. The company won the license in a tender auction.
Globacom's management expressed gratitude to the telecoms regulator, the NCA for the confidence reposed in the company and promised to “roll out aggressively” in the country “very shortly”.
The company is also currently bidding for a license in Togo.
Last month, the NCA also announced plans to offer number portability on both landline and mobile networks. Joshua Peprah, Director of Regulations and Licensing at NCA said “We’ve also had informal discussions with the telecom operators on this service and in principle, they have no problem with it. Their main concern has to do with the cost associated with the implementation of the service,"
However, he added that “as of now, we have not mandated the telecom operators to implement the service. The market should really be ripe for it and besides, the stakeholder consultation is still ongoing.”
If number portability is introduced, that generally assists new market entrants to take subscribers from the incumbent operators.
The country already has five operators, but according to figures from the Mobile World database, the country only had 7.6 million customers at the end of last year. That figure equates to a population penetration level of just 33%.
The five operators (and market share) are: MTN (53%), Tigo (26.7%), Ghana Telecom (16.8%), Kasapa Telecom (3.5%) & Westel (0%).
Source: Cellular News.

Friday, June 13, 2008
Japan’s leading mobile operator by subscribers NTT DoCoMo has revealed it is cutting its monthly mobile tariffs in a bid to match rivals KDDI and Softbank Mobile, as the domestic mobile price war begins to intensify. DoCoMo still controls roughly half the market but has seen its share whittled away by its rivals in the past year. This month, KDDI unveiled a JPY980 (USD9.12) per month plan to compete with number three player Softbank, which has won more subscribers than either of its larger rivals since April 2007 on the back of its low-price strategy and aggressive advertising campaigns. Reuters reports that DoCoMo is dropping its lowest tariff plan by nearly 7% to JPY980 from July to match the competition.
Source: TeleGeography.
News agency Trend Capital reports that Azerfon, known locally as Nar Mobile, deployed 55 new base stations last month, lifting overall network coverage to 80% of the Azerbaijan's territory. The cellco was granted a GSM-900/1800 licence in December 2005 and launched GSM/GPRS/EDGE services in late March 2007. It currently has an estimated 700,000 subscribers.
Source: TeleGeography.
Commerce over mobile devices such as cell phones is accelerating in the US, according to data released by The Nielsen Company. Already, 9 million US mobile subscribers say they have used their mobile phone to pay for goods or services, and half of all data users (49%) say they expect to participate in mobile commerce in the future. Nielsen Mobile presented an overview of the opportunities in mobile commerce at the Internet Retailer Conference and Exhibition.
Among the findings presented:
- As of Q1 2008, 3.6 percent (9.2 million) of US mobile subscribers use their phone to pay for goods or services
- Men are more likely than women to use their phone for commerce: 4.5 percent (4.9 million) of men and 3.0 percent (4.3 million) of women say they have made a purchase using their phone
- Adults ages 25-34 are the most likely to have made a purchase using their phone: 5.4 percent (3 million) of adults ages 25-34 have made a purchase, compared to 3.6 percent of all mobile subscribers
- 49 percent of mobile data users, those subscribers who have used one or more data features on their phone such as text messaging or the mobile internet within the past 30 days, say that it is likely they will conduct mobile commerce in the future
Mobile websites are one popular way consumers make purchases over the mobile phone. Of the 40 million active US users of the mobile web in April 2008, 5 million accessed mobile shopping and auction websites -- up 73% from April 2007, when just 2.9 million mobile users did so. Auction site eBay is the most popular shopping or auction destination on the mobile web, with 3.4 million unique visitors in April.
Purchasing items via text messaging is another growing form of mobile commerce. Some services allow consumers to send text messages to a phone number or mobile shortcode in order to be charged for goods or services directly on their mobile phone bills. Already, 6.5 million US mobile consumers say they've used text messaging to purchase an item.
"For many of the millions of consumers who are already shopping online or over landline phones, mobile commerce is an obvious and useful extension of that opportunity," said Nic Covey, director of insights at Nielsen Mobile who presented the data at the conference. "As more mobile commerce services become available and consumers develop a greater trust for phone-based transactions, we expect commerce to be an increasingly important part of the mobile experience next year and beyond."
The findings come from Nielsen Mobile's monthly Mobile Insights survey of more than 30,000 US wireless subscribers, with similar data available internationally.
Nielsen's study reveals that security is the number one concern among those mobile data users not yet participating in m-commerce:
- 41 percent of data users who do not participate in mobile commerce say security is their biggest concern
- 23 percent say they worry about being charged for the airtime
- 21 percent say they don't trust that the transaction will be completed
"As with other forms of electronic commerce, US consumers need proof that mobile transactions will be a safe, affordable and efficient complement to other modes of shopping," said Covey. "As long as retailers continue to meet those expectations, more consumers will come to view mobile shopping as a compelling and viable option."
Source: Cellular News.

Thursday, June 12, 2008
The total number of mobile connections in North America rose to 277.90m at the end of Q1 08, from 257.60m a year earlier. The penetration rate saw a 5.3pp gain to 82.5%. Obviously this figure is close to the 84.9% penetration rate in the USA, the region's largest market by some distance with 92.7% of North America's mobile customers, although it is dragged down by the low Canadian rate of just 60.5%.The other two markets in the region are so small as to have little bearing on the total penetration rate. St. Pierre et Miquelon, a group of small islands off Newfoundland which are an overseas territory of France, had 2,935 mobile customers at the end of Q1 08, and a penetration rate of 41.7%. Meanwhile, Greenland was the region's most penetrated market by some distance with 96.9% of the population owning a mobile phone, which amounts to around 55k connections.
By far the fastest growing technology in North America is W-CDMA, which saw a 336.7% gain in customers in the 12 months ending 31st March 2008. The total number of W-CDMA connections surpassed the 10m mark during Q1 08 to finish the quarter on 11.12m. This is still below the number of iDEN customers, which stood at 16.56m at the end of Q1, but with iDEN losing 5.09m customers year on year and W-CDMA gaining 8.57m, it seems likely that iDEN will lose its status as North America's third most important technology before the end of 2008.
CDMA remains the dominant standard with 52.7% of the total North American customer base, or 146.49m connections, up from 130.6m (50.7% of the total) a year earlier.
The number of GSM connections broke through the 100m barrier to reach 103.7m at the end of Q1, but growth more than halved from 15.0% in the 12 months to the end of Q1 07, to 7.0% in the subsequent 12 months, as a consequence of the success of W-CDMA. Annual CDMA customer growth was also down compared to the prior twelve months with a 4.4pp fall in the rate, although it remained in double digits with a 12.2% yearly gain.
The total customer growth rate also fell compared to the prior 12 months, from 11.6% to 7.9%. This is the lowest rolling annual growth rate ever recorded in the North American region, and we fully expect it to be the lowest rate of any region in the world in Q1 08.
Source: Cellular News.
Swedes are increasingly placing calls, surfing and sending text messages, which led to sharply increased traffic and increased revenues for mobile network operators in 2007. For the first time, total revenues from services in mobile networks exceed revenues from fixed telephony according to a report from the telecoms regulator, the National Post and Telecom Agency (PTS).
In December 2007, nearly half a million customers used mobile Internet services, a sharp increase from just over 90,000 subscriptions one year earlier. Data traffic in mobile networks has increased tenfold since 2006. Mobile users placed more, and longer, calls in 2007 and sent an average of 40 text messages per month. Revenues from mobile services totalled SEK 19.7 billion in 2007, which is an increase of some 12 per cent since 2006. Mobile Internet services, by means of USB sticks or USB modems, account for more than SEK 1 billion of such revenues.
“We take mobile telephony for granted. We are used to placing calls whenever and almost wherever we want. 2007 was the year when even broadband users could seriously consider mobile Internet services when choosing a provider,” says Marianne Treschow, Director-General of PTS.
There were nearly 2.8 million subscriptions for fixed or mobile broadband at the end of 2007, which corresponds to 62 subscriptions per 100 households. Broadband services grew by more than 30 per cent in 2007.
The content service growing the fastest in fixed broadband networks is IPTV, for which there were 355 000 subscriptions at the end of 2007, compared with 50 000 subscriptions the year before. Subscriptions for IP-based telephony in broadband networks rose by more than 50 per cent to 623 000 subscriptions.
Source: Cellular News.
EW DELHI -(Dow Jones)- Bharti Airtel, India's biggest cellphone operator by subscribers, added 2.46 million mobile users in May, data issued by an industry body showed Wednesday.
As a result, Bharti's total mobile phone user base has grown to nearly 66.83 million subscribers at the end of May, data from the Cellular Operators Association of India showed.
In May, Vodafone Essar added 1.69 million mobile phone users taking its total subscriber base to 47.47 million, said COAI, which represents the nine operators using global system for mobile communications technology.
State-run Bharat Sanchar Nigam Ltd. added 314,281 mobile phone users, taking its total subscriber base to 37 million at the end of May.
Idea Cellular added 1.1 million users and had 26.14 million mobile phone subscribers at the end of May.
Another state-run operator, Mahanagar Telephone Nigam Ltd. (500108.BY), added 66,686 mobile phone users in May, taking its total subscriber base to 3.35 million.
Source: Cellular News.

Wednesday, June 11, 2008
The Information & Communication Technologies Authority (ICTA) of Mauritius has forced the country’s telecoms operators adopt new lower rates for mobile and international long-distance (ILD) calls, following the passing of a new directive on 30 April. The new rates, which came into effect last Wednesday, include an MUR87 (USD0.032) reduction in the standard interconnection usage charge (IUC) for fixed and mobile networks, paid by carriers for every minute of communication. The ICTA had asked operators to submit revised retail tariff plans based on the lower IUC rate so that end users could benefit from less expensive calls. In the wake of a poor response, however, it said that it would ‘intervene in the interest of the general public’. To that end, the regulator is understood to have imposed a MUR87 reduction in the cost of making a mobile call to a fixed line, bringing the per-minute charge down from MUR4.35 to MUR3.48 a minute, using a pre-paid card. In the international segment calls have been cut to as little as MUR4 per minute to some destinations. Commenting on the ICTA’s move, Michel Rigot, the managing director of Outremer Telecom, said ‘Liberalisation in the telecommunications sector brings major tariff reductions along. What happened this week is a concrete example. Now, the Authority should think about introducing a real liberalisation process in other segments like internet that is still controlled by one operator, Mauritius Telecom.’
Source: TeleGeography.
Celtel Nigeria has launched a fixed payphone service targeting Nigerians unable to afford mobile phones or who live or work in places where mobile phone use is restricted. The service consists of a fixed payphone terminal and a special SIM card which can be carried about and recharged like a normal pre-paid SIM card. The operator claims the offering will help the government's Universal Access Initiative which is aimed at increasing telecoms access across the country.
Source: TeleGeography.
During the period 2007-2012, the worldwide mobile subscriber base is expected to increase by 1.8 billion. Around 67 percent of these new subscribers, i.e., a little above 1.2 billion subscribers, are expected to come from just 10 fast-growing country markets worldwide. Of these top 10 growth markets, nine have been identified as high-volume, low-ARPU [Average-Revenue-Per-User] emerging mobile markets with significant potential in the next five years.
A new report from Portio Research identified only ONE truly wealthy nation among this top 10, the United States of America, home to one of the highest ARPU rates in the world, yet also the 4th biggest growth market of the 2007-2012 period.
The US is expected to add more than 65 million mobile subscribers to the worldwide subscriber base in the period 2007-2012.
The report notes that this might look relatively insignificant compared to the massive numbers expected to be added from high-growth markets such as China (542 million) and India (282 million), but what makes the US mobile market an interesting market to study is the observation that a new mobile subscriber in the US is expected to generate between three and 13 times as much revenue expected from a new mobile subscriber in China, India and the other emerging markets in the top 10 in 2012.
Compounding this aggressive growth is the high ARPU network operators in the US achieve from their subscribers. Unlike many other mature mobile markets, where ARPU is in slow decline, in the US ARPU is forecast to remain high, even increasing slightly from 2007 levels as we move forward over the next 4 or 5 years. While the US will contribute only around 5.5 percent to the total number of new subscribers that are expected from the top 10 markets in the period 2007-2012, in terms of revenue, the country will account for around 25.2 percent of the total mobile service revenues generated by these 10 markets in 2012.
Source: Cellular News.
A recent report published by Dell’Oro Group revealed that although GSM was not the largest contributor to the growth of the total mobility infrastructure market during the first quarter of 2008, it grew nearly 10 percent over the year ago quarter. Driving the growth of the GSM market was the second largest number ever of base station shipments, exceeded only by the previous quarter, and the stabilization of equipment prices.
“For the first time, Asia Pacific represented over half of all GSM revenue,” stated Scott Siegler, Analyst of Mobility Infrastructure research at Dell’Oro Group. “Business in this highly price-sensitive region has resulted in double-digit quarter-to-quarter price reductions for the previous three quarters. Over these past several quarters, ASP’s were pushed downward as vendors sold equipment at exceptionally steep discounts in order to establish and expand their footprint in the region. This quarter, in contrast, vendors became more selective in the deals they were accepting, balancing the economics of the sale with their gain in market share. For the first time in four quarters we have seen ASP’s begin to stabilize,” Siegler continued.
The report also shows that the strong growth in GSM revenue offset the declines in the CDMA market which took a notable plunge during the first quarter.
Source: Cellular News.

Monday, June 09, 2008
The total number of people signed up to one of Vietnam’s four network operators – VinaPhone, MobiFone, Viettel and S-Fone – has passed 48 million and is closing in on the 50 million barrier, VietNamNet Bridge reports citing data published by the Ministry of Information and Communications (MIC). Of the total, around 90% are on a pre-paid option, the ministry said.
The leading operator by subscribers is Viettel with 19.42 million subscribers, followed by MobiFone with over 13.4 million, VinaPhone 12.1 million and 3.14 million for S-Fone. MIC’s Telecommunications Department calculates the totals based on the client management databases of the four network operators – a metric that it believes is more accurate than the operational figures published by the operators themselves.
Source: TeleGeography.
Local newspaper the Zimbabwean reports that mobile tariffs have gone up by more than 1,500%. Reflecting the rampant inflation being suffered by the beleagured country, NetOne subscribers will now have to part with ZWD58 million per minute for a call to other NetOne users during peak periods – a significant sum to locals but just a tenth of a dollar in US dollar terms – while calls to customers on the Econet and Telecel networks will be charged at ZWD60 million per minute and ZWD72 million per minute respectively. Telecel has also reviewed its tariffs, and calls to users on its own network are now ZWD50 million, while to customers on other networks the figure is ZWD63 million.
Source: TeleGeography.
OKYO -(Dow Jones)- Softbank's mobile phone unit claimed the top spot in terms of net subscriber growth in May, pulling in more than double the number of net contracts garnered by bigger rivals NTT DoCoMo and KDDI.
Third-ranked Softbank, which this week announced a deal to sell Apple's popular iPhone, may be starting to significantly reduce the gap between it and second-ranked KDDI in Japan's intensely competitive mobile carrier market.
Data released Friday on new subscription contracts signed by Japan's three major cell phone carriers showed that Softbank Mobile gained a net 173,700 subscribers to its mobile phone service during the just-ended month, by far outpacing the net 72,400 that KDDI gained and the 60,900 subscribers that NTT DoCoMo pulled in.
In April, Softbank Mobile also won the battle for subscribers by a significant margin, picking up a net 192,900 contacts compared with a net 96,000 gain for DoCoMo and a 118,700 net fall in subscribers for KDDI, due to the termination of its so-called Tu-Ka service.
At the end of May, Softbank had about 18.95 million subscribers, while KDDI had about 30.29 million contracts.
However, both companies still have a long way to go to catch up with market leader DoCoMo, which reported 53.54 million users at the end of May.
The race to attract new subscribers is likely to heat up over the coming months, with all three companies rolling out new products and strategies to compete in Japan's saturated mobile service market.
Earlier this week, Softbank said it would begin selling the iPhone brand in Japan by the end of the year, scoring a blow against DoCoMo, which until that point had been expected to be the first to report a deal with the U.S. firm.
Not to be outdone by Softbank's aggressive marketing campaign, which features household names Brad Pitt and Cameron Diaz using the company's products, DoCoMo late last month launched 19 handsets for its 906i and 706i series in an attempt to widen the array of phones it offers.
Source: Cellular News.
Brazil and Mexico will represent the largest opportunities in the Latin American mobile market, with a combined CAGR of 7% over the next five years. Together they will account for half of all sales in the region, says Pyramid Research in a new report. “Brazil and Mexico represent a significant proportion of the region’s mobile subscribers, accounting for 49% of the total,” comments Omar Salvador, Senior Analyst at Pyramid and author of the report.
Pyramid Research expects Brazil’s share of the region’s subscriptions to gain two percentage points. Peru will also make impressive gains, surpassing Chile in terms of overall subscriber numbers to take the number six spot in the region. Venezuela has overtaken Argentina to assume the third spot in the region. At the same time, the report found that mature markets such as Argentina, Chile and Colombia that have penetration rates above 75% - more than 10% higher than the regional average - will become smaller slices of the growing Latin American pie.
Latin America’s handset market is undergoing a transformation, with users upgrading from voice-only phones to phones with music and camera capabilities. The music category quadrupled handset sales since 2005, representing 17% of total handset sold in the region in 2007. Sony Ericsson and Nokia are the most active and successful in this segment, while other manufacturers are adjusting their portfolios to compete more effectively.
Pyramid expects the music-enabled category to almost triple in size, from 40m handsets sold in 2008 to 115m in 2012, when it will account for 58% of total handsets sales.
Source: Cellulat News.

Thursday, June 05, 2008
At the end of April, the number of mobile connections in India reached 264.19m, a 3.0% monthly increase. Excluding March 07, when Reliance suffered a net loss of over 4m due to the reclassification of its CDMA customers, this was the lowest proportionate monthly growth rate since April 2005. In absolute terms, there were 7.63m net additions in April 2008, the lowest figure for ten months. Nevertheless, this figure was 43.5% higher than the number of net additions recorded in April 2007, and in terms of annual net additions, a significant milestone was achieved: 101.82m net additions in the 12 months ending 30th April 2008, the first time the 100m mark has been passed in any market in the world.
GSM continues to dominate in India, with 73.77m net additions in the year compared to 28.05m for CDMA. At the end of April, there were 198.58m GSM customers and 65.61m CDMA. In proportionate terms, CDMA growth actually exceeded GSM growth in the 12 months ended 30 h April, with a 74.7% growth rate compared to GSM’s 59.1%; however, the CDMA figure was skewed by the reclassification of Tata’s WLL customer base as mobile in July 2007. Since then, GSM’s share of the total has been gradually increasing, reaching 75.2% at the end of April.
Bharti is the clear market leader in India with 64.37m customers, almost 17m higher than its nearest rival Reliance. Its market share has been steadily increasing, from 24.0% at the end of April 2007 to 24.4% a year later. Meanwhile, Reliance and Vodafone have been battling for second place for some time now, although Reliance has succeeded in fending off Vodafone’s challenge so far, despite the gap closing to 0.64m at the end of August 2007. At the end of April 2008, Reliance’s lead was 1.64m, with 47.42m customers compared to Vodafone’s 45.78m.
State-owned BSNL lost 0.14m customers in April but retained its fourth place with 36.26m. It lost 0.5pp market share in the month and 3.6pp annually. Meanwhile, IDEA finished on 25.04m, regaining the fifth place it ceded to Tata following the latter’s WLL reclassification.
Source: Cellular News.
Increasing adoption of messaging and content services is expected to push operator-billed data revenues in South America from $8.7 billion in 2008 to more than $23.3 billion by 2013, according to a new report from Juniper Research.
The report found that as voice revenues are coming under ever-increasing pressure from competitive pricing and regulatory intervention, operators are seeking to enhance their portfolios of on-portal content. However, it also cautioned that excessive retail price points and data download costs were continuing to restrict the development of rich media services across the region.
According to report author Dr Windsor Holden, “Although we’ve witnessed a quite remarkable surge in subscriber growth across the region over the past three years, South America continues to lag behind the rest of the world in terms of its uptake of non-voice services. And while this can in part be attributed to the historical difficulties around interoperability which delayed mass adoption of SMS services, it is also fair to say that the high cost of games, browsing and mobile video has acted as a significant inhibitor to growth”.
Nevertheless, the report expressed optimism that costs would fall and adoption rates rise, with content usage likely to receive a further boost as operators’ recently launched 3G services steadily gain subscribers.
Other findings include:
South American mobile user base is expected to rise from 411 million in 2008 to 556 million in 2013
Total operator-billed voice revenues for the region are expected to peak in 2011 at $67.3 billion and will decline thereafter
Mexico will retain the highest blended ARPU across the region throughout the forecast period, marginally ahead of Chile.
Source: Cellular News.

Wednesday, June 04, 2008
Oman was home to a total of 2.7 million mobile phones at the end of March 2008, up 9.2% from 2.5 million at the start of the year, the Khaleej Times reports citing latest official government statistics. Of the total, post-paid subscriptions accounted for 292,894 users, down 0.2% from 293,622 at the start of the year, but this was more than offset by a 10.5% rise in pay-as-you-go users from 2.2 million to 2.4 million. At the same date the country counted 115,506 internet users (+64%), of which 52,351 were dial-up accounts and 23,969 were ADSL connections. Leased line connections stood at 319 at end-March and other internet connections 1,267. During the period under review, the number of main lines in service increased marginally by 2.3% to 267,169 from 261,207.
Source: TeleGeography.

Tuesday, June 03, 2008
Hungary’s incumbent mobile operators Pannon, Vodafone and T-Mobile collectively signed up a net 208,033 new subscribers last month to boost the country’s total cellular base to 11.43 million. Of the total, 10.26 million subscriptions were classed as ‘active’ by telecoms regulator NHH at the end of April, equating to a cellular penetration rate of 113.9% (up from 111.8% a month earlier). Data published by the watchdog shows that Pannon lost market share last month, from 35.29% in March to 35.03% a month later, while T-Mobile edged its own share upwards from 43.88% to 44.20%. Third-placed cellco Vodafone also saw its slice of the pie declining slightly from 20.83% to 20.77%, NHH said.
Source: TeleGeography.
The CDMA Development Group (CDG) has announced that the CDMA industry continued its strong growth through the first quarter of 2008, increasing its customer base by almost 17% over the past year to 451 million CDMA subscribers worldwide, with CDMA2000 and CDMA2000 1xEV-DO reaching 438 million and 97 million, respectively. The Asia-Pacific (APAC) and Europe, Middle East and Africa (EMEA) regions claimed the highest year-over-year percentage subscriber growth for CDMA2000, while the Americas and EMEA experienced the highest percentage of subscriber growth for CDMA2000 1xEV-DO.
In APAC, the total CDMA subscribership (cdmaOneTM and CDMA2000) rose to 231 million, which accounts for 51% of total worldwide CDMA subscribers and marks a 30% increase from March 2007 to March 2008. North America’s 140 million subscribers claim the second highest percentage of global CDMA subscribers at approximately 31%, with CALA’s 62.8 million representing approximately 14%. In EMEA, CDMA subscribership reached 17.7 million.
Over 97% of CDMA subscribers around the world are now taking advantage of 3G CDMA2000 services. CDMA2000 grew by 38% in APAC over the past year, bringing the total number of CDMA2000 subscribers in the region to 223 million, accounting for almost 51% of the world’s users. North America is the second largest region for CDMA2000 with nearly 138 million, or 31% of the global users. In EMEA, the CDMA2000 subscriber base reached 16.5 million.
CDMA2000 1xEV-DO subscribership increased to 97 million users globally, with 52 million subscribers in North America and 39 million subscribers in APAC continuing to comprise the majority of the world’s EV-DO users at 54% and 40%, respectively. Uptake is surging in North America and EMEA where increased demand for mobile broadband raised subscribership by 74%and 123%, respectively. The CDG attributes this growth to outstanding broadband performance and, for emerging markets, 3G CDMA’s suitability across varied terrain to serve as an alternative to wireline Internet access.
To date, 38 EV-DO Revision A (Rev. A) networks are in commercial operation around the world, with another 35 networks in deployment.
Source: Cellular News.

Monday, June 02, 2008
Upwards of a million SIM cards will have started to be disconnected in Bangladesh over the weekend as they have missed a deadline to have their user details registered with the operators. The disconnected SIM cards can only be reactivated if the user provides suitable reasons for missing the registration deadline. The million number, supplied by Manzurul Alam, chairman of Bangladesh Telecommunication and Regulatory Commission (BTRC) is a significant improvement on the estimated 3 million unregistered SIM cards in circulation just a month ago. It is estimated that the majority of the remaining SIM cards are connected to the Grameenphone network.
The regulator issued a decree to the operators to force all subscribers to register their mobile accounts and provide proof of ID to the operators. The deadline for subscribers to register their details has been extended several times - but not any more. To register their SIM card - customers must produce two copies of passport size photo, passport or any photo ID card and the forms and documents given during subscription. If a retailer sells a SIM card without proof of ID they will face a fine of US$10 per infraction.
Bangladesh ended the first quarter with just under 39 million subscribers - and according to figures from the Mobile World, Grameenphone is the dominant operator with (currently) some 17.5 million customers and a marker share of just under 46%.
Source: Cellular News.

Friday, May 30, 2008
The total wireless subscriber base in Ecuador reached 10.48 million customers at the end of April, up from 8.9 million twelve months ago, reports telecoms watchdog Supertel on its website. America Movil-backed Porta leads the market with 7.23 million users (giving it a 69% share of the market), followed by Telefonica's Movistar with 2.68 million (25.6%) with locally owned Alegro PCS bringing up the rear with 565,000 subscribers (5.4%). Of the overall total, 9.45 million customers use GSM.
Source: TeleGeography

Thursday, May 29, 2008
STOCKHOLM -(Dow Jones)- Research firm Gartner Wednesday said worldwide mobile phone sales will continue to rise between 10% and 15% in 2008, but said the value of the market will be lower than expected.
The company said growth in emerging markets is pushing overall volume sales, adding that the economic slowdown and higher fuel costs are causing some customers in developed markets to delay buying new phones.
Gartner said West European mobile phone sales fell 16.4% in the first-quarter compared with the year-earlier period, the first fall in the region since Gartner began tracking device sales in 2001. Worldwide sales of mobile phones reached 294.3 million units in the first quarter, a 13.6% increase from sales last year.
Click here to see full article
|
"While sales in emerging markets continued to be driven by strong net new subscribers' growth, mature markets felt the pressure of an uncertain economic environment," said Carolina Milanesi, research director for mobile devices at Gartner. Sales of high-end devices in particular were lower as consumers turned to mid-tier devices when looking to upgrade their old phones.
She said phone manufacturers should strengthen their mid-tier offerings to cater to users who are reticent to invest in replacing their old phones while the economic environment remains challenging.
Finnish mobile phone Goliath Nokia sold 115.2 million units for a global market share of 39.1% during the quarter, a sharp gain from last year's 35.5% market share in the same period. Sales in the ultra-low-cost end in new growth markets remain Nokia's strong point.
South Korean handset manufacturer Samsung Electronics was in second position, selling 42.4 million units for a first-quarter market share of 14.4% compared with 12.4% in 2007, boosted by its quick focus on touch-screens.
Motorola saw a sharp drop in the quarter, selling 29.9 million units. The U.S. phone maker is still struggling to find a successor to its popular Razr handset. Milanesi said the new models it released in the year were not competitive enough to maintain its place in the market. Its market share was 10.2% compared with 18.4% last year.
"Motorola is unlikely to introduce many products in the second half of 2008, a time when most competitors will bring new additions to the market, so it stands little chance of winning back its number two position," Milanesi said. "It may even have to watch out for a threat from current number four player LG."
LG Electronics sold 23.6 million units and had an 8% market share in the quarter, moving up slightly from 6.2% in the same period in 2007. The company overtook rival Sony Ericsson in the quarter to become the fourth largest maker of mobile phones. Milanesi said LG needs to build a stronger smartphone portfolio, as consumers and operators are placing more emphasis on this segment.
Sony Ericsson fell to fifth place after selling 22.1 million units for a 7.5% market share, a drop from its 8.4% stake last year.
The company struggled in the first-quarter due to a weakened mid-to-higher-end device market, particularly in Western Europe. Consumer spending has slowed, due in part to the global economic slowdown.
Still, Milanesi said with new products for the second half of 2008 and with a stronger mid-tier portfolio, Sony Ericsson is in a good position to win back its fourth place in the market share rankings. |
Source: Cellular News

Monday, May 26, 2008
GENEVA (AFP)--The number of mobile phone users worldwide soared to over 3.3 billion by the end of 2007, equivalent to a penetration rate of 49%, the International Telecommunications Union said in a report Friday.
Africa showed the strongest gains over the past two years and more than two-thirds of all mobile subscribers were from developing countries by the end of 2007, the ITU said.
This is "a positive trend that suggests that developing countries are catching up," the report said.
Mobile subscription growth stood at 39% annually in Africa between 2005-2007, and 28% in Asia over the same period.
India and China added 154 million and 143 million new subscribers respectively.
The global annual average growth rate stood at 22%, the ITU said.
Click here to see full article
|
Mobile phones are eclipsing traditional fixed lines and in Africa they account for nearly 90% of all telephone subscribers, the report said.
"The continued growth in the mobile sector is matched by no-growth in the fixed-line sector. Fixed telephone penetration has been stagnating at just under 20% globally for the last years and growth has been below 1% between 2005 and 2007," it said.
While developing countries have made great strides in mobile growth, a significant "digital divide" remains for Internet use and particularly the availability of broadband connections, it noted.
High-income countries account for 66% of all fixed broadband subscribers although they only represent 16% of the world's population, while developing countries have just 1% of fixed broadband users but 38% of the global population.
"Low-income countries, where broadband access remains very low, risk falling behind in an area that is particularly important in delivering innovative applications and services," the ITU warned.
Some countries have made progress and the ITU highlighted Chile, Senegal and Turkey as states where almost all Internet subscribers have now gone high speed.
"For more people to benefit from the potential of broadband and the applications that it can deliver, governments need to do their share to ensure that high-speed technologies become more accessible as well as more affordable," the ITU urged. |
Source: Cellular News

Friday, May 23, 2008
BEIJING -(Dow Jones)- China's mobile-phone users at the end of April rose to 583.5 million, up by 8.9 million from end-March, data issued by the Ministry of Industry and Information showed.
The growth in the number of mobile users slowed in April compared with the net additions of 9.4 million in March, according to statistics issued on the ministry's Web site Wednesday.
Click here to see full article
|
China's mobile-phone users grew by a record 9.5 million in February, the statistics showed.
The mobile-phone users are customers of the two state-owned mobile service providers, China Mobile Communications Corp. and China United Telecommunications Corp.
China Mobile Communications Corp. is the parent company of Hong Kong-listed China Mobile and the world's largest mobile carrier by subscribers. China United Telecommunications Corp. is the parent of Hong Kong- and Shanghai-listed China Unicom.
Fixed-line users totaled 360 million by the end of April, down 5.4 million from end-2007, the data showed. |
Source: Cellular News

Wednesday, May 21, 2008
According to data published by the Brazilian telecoms regulator Anatel, the country had 128 million active mobile lines at the end of April 2008. of the total, 80.9% were pre-paid and 19.1% on monthly contracts. A net new 1.9 million lines were added in April, up 1.54% on the previous month and 22.5% up on April 2007, lifting cellular penetration to 66.84 active mobile lines per 100 inhabitants, the watchdog said. BNamericas reports that the highest mobile teledensity was recorded in Distrito Federal with 123 active lines per 100 inhabitants, followed by the Rio de Janeiro state, with 83.3 lines, and the Mato Grosso do Sul state with 81.3 lines.
Click here to see full article
In terms of mobile market share, Vivo still leads the way with 27.2%, albeit that the figure is down 0.08 percentage points compared to February. TIM Brasil claimed second place with a 25.9% market share, followed by America Movil’s Claro unit with 24.8%. Telemar’s Oi increased its share of subscribers by 0.18% to 14% by end-April, while fifth-spot was shared by sister cellcos Telemig Celular and Amazonia Celular with 4.22% (down from 4.29% a month earlier). Brasil Telecom improved its position marginally by 0.02% to 3.66%, CTBC Telecom Celular's share decreased from 0.31% to 0.30% and Sercomtel Celular remained stable at 0.06%.
The most popular technology in Brazil continues to be GSM, accounting for 106 million lines, or 82.7% of the total, at 30 April 2008. CDMA accounted for a further 18 million lines (14.2%), TDMA, 3.9 million (3.09%), and AMPS analogue technology had just 12,239 lines (0.01%). |
Source: TeleGeography
Five of Asia Pacific’s largest markets report monthly numbers, and in this article we present a round-up of the figures for April 2008.
Figure: Asia Monthly Customer Growth

China, the largest market in the region and the world, reached 566.69m customers at the end of April, up 20.4% year on year. GSM is the dominant technology here with 92.4% of the total, up 0.7pp year on year. Only one of the country’s two operators (China Unicom) uses CDMA technology, and the annual growth rate for this standard was much lower at 10.6%. Unicom continued to lose market share to its rival China Mobile in April, a 2.0pp annual decline taking its proportion of the total customer base to 29.7%.
India is the second largest market in the region, and as in China GSM is prevalent. The exact percentage for the end of April is not yet available as the regulatory body responsible for releasing CDMA figures is yet to publish its April data; however, we expect GSM’s share to rise above the 75.1% recorded at the end of March. GSM customers reached 198.58m, up 59.1% year on year.
Japan was the third largest market in Asia Pacific at the end of 2007, although it may well have been surpassed by Indonesia by now. At the end of April, there were 102.99m mobile connections in Japan, up 6.0% year on year. W-CDMA dominates here with 57.7% of the market at the end of April, up 11.8pp compared to April 2007.
It is possible that Pakistan will also have overtaken Japan by this time next year. At the end of April it had 85.03m customers, up 45.6% year on year. Here the technology is almost exclusively GSM, with only 0.32m analogue connections remaining.
South Korea is the eighth largest market in the region, although Bangladesh is likely to supersede it by the end of the year. There were 44.50m mobile connections in South Korea at the end of April, a yearly gain of 7.5%.
Source: Cellular News

Tuesday, May 20, 2008
In Fitch Ratings' review of 72 operators from 27 different countries, total aggregate wireless subscribers reached 1.681 billion for 2007, representing an annual growth of 17.6%, which is lower than the 2006 annual growth rate of 18.9%. However, the absolute number of new subscribers increased from 200 million in this study for 2006 to 250 million for 2007.
The annual growth rate for individual regions of this study for 2007 consisted of 10% for the United States/Canada, 8% for Western Europe, 22% for Latin America and 23% for Asia/Pacific. Interestingly, Western Europe has experienced a surge in growth compared to the 2006 growth rate of 6%, due to strong growth in Germany and Italy. The increase in growth is reflective of lower tariff rates and termination charges and more flat rate service plans. Latin America's growth rate has fallen compared to 2006 due to a larger overall subscriber base. However, Asia/Pacific continues a steady march of strong growth due, in part, to exceptional growth in India and Indonesia.
In Fitch's study, prepaid subscribers as a percentage of the total global aggregate subscriber base was 60% in 2007, up from 58% in 2006. Prepaid subscribers grew approximately 19% in 2007 versus a post-paid subscriber annual growth rate of approximately 6%. The strongest prepaid subscriber growth was in Asia/Pacific with a 2007 annual growth of approximately 27%, led by significant growth associated with India and China. The United States/Canada also experienced strong prepaid growth in 2007 at approximately 23% due to increased sales focus on this underpenetrated market segment in that region. Similarly, Latin America achieved prepaid growth of approximately 22% in a region that is nearly entirely prepaid subscribers. Prepaid penetration is highest in countries with relatively expensive and difficult to acquire fixed line services. Additionally, decreases in tariff rates have spurred prepaid wireless as a substitution for fixed-line services.
Source: Cellular News

Friday, May 16, 2008
India's Bharti Airtel has announced its achievement of crossing the 4-million customer mark in Delhi, adding that it has become the first and the only mobile operator to achieve this milestone in a Metro circle. Airtel’s journey to the 4 million landmark has been path - breaking, having added the last million in just 14 months.
In the year ahead, Airtel says that it will continue to focus and build on its network and customer service. Airtel currently has an extensive network of cell sites across Delhi and NCR and plans to increase them by over 26 % in FY 08-09.
Mr. Shashi Arora, CEO- Airtel Delhi circle, (Mobility) Bharti Airtel, said, “The 4 million milestone speaks volumes of the trust that our customers have in the Airtel brand. This achievement is a testimony of our ability to offer innovative and affordable services like Super Lifetime, Re 1 Local tariff, reduced STD and Roaming tariffs etc. As we move forward, I take this opportunity to reiterate our commitment to provide high-quality services and value for money products to our customers.”
Source: Cellular News.
MEXICO CITY -(Dow Jones)- Mexico's wireless subscribers rose to 71 million at the end of March, up from about 59.4 million in the year-earlier period, according to data from the country's four mobile operators.
Market leader Telcel, a unit of Latin America's largest mobile phone company America Movil, said in its first-quarter earnings report that its subscriber base grew 14.7% on the year to 51.5 million.
Click here to see full article
|
Telcel's market share fell to 72.5%, from 75.7% at the end of March 2007 amid competition from the local unit of Spain's Telefonica.
America Movil is controlled by Mexican billionaire Carlos Slim, who also owns Mexico's largest fixed-line phone company, Telefonos de Mexico.
Telefonica Moviles Mexico, which operates under the Movistar brand, increased its number of clients 42.3% to nearly 13.3 million at the end of the quarter, which boosted its market share by three percentage points to 18.7%.
The No.3 operator, Grupo Iusacell, which is owned by Mexican media and retail tycoon Ricardo Salinas Pliego, saw its subscribers grow 16.2% to just under 4 million.
Iusacell has tried to differentiate itself from its larger rivals in recent years by offering third generation, or 3G, mobile telephony services such as wireless broadband and streaming video.
Telcel has responded by launching its own 3G services, and at the end of the first quarter it had 3G networks operating in 16 cities with plans to expand its coverage throughout the year.
The country's smallest operator, Nextel Mexico, a unit of wireless carrier NII Holdings, had about 2.3 million clients at the end of March, up from 1.7 million a year earlier.
Nextel is a niche player offering push-to-talk services that allow multiple users to communicate with each other at the same time.
Analysts say Mexico's wireless industry still has plenty of room to grow, with penetration at about 68% compared to other Latin American countries such as Argentina and Chile, where penetration levels are over 85%.
Mexico's federal telecommunications regulator Cofetel plans to auction radio spectrum in the 1900MHz and the 1.7GHz-2.1GHz bands later this year with the hope of attracting at least one new mobile operator to boost competition in the sector.
Existing operators, however, have found it tough going against Telcel, whose size, financial strength and business acumen have allowed it to maintain its hefty lead over rivals.
Mexico's antitrust agency, the Federal Competition Commission, or CFC, has launched two separate investigations into the mobile telephony industry in the last six months after Telefonica accused Telcel of anti-competitive practices.
The CFC, which expects to wrap up the probes by the middle of this year, has the power to levy fines against companies that abuse their market power to stifle competition.
The telecommunications regulator Cofetel can set the rates a company charges rivals to complete calls on its network if the CFC finds the company to be a dominant player in its market. |
Source: Cellular News.
Kenya's new government is considering a new law to require all mobile phone subscribers to register their identities with the network operators. The move, proposed in a private members bill by Yatta MP Charles Kilonzo is reported to be in response to threats sent by SMS during the recent post-election violence in the country.
Click here to see full article
|
MPs are supporting the move - which would require an amendment to the Kenya Communications Action Order.
Many countries - mainly in Asia - have mandated similar moves for claimed security reasons. One interesting side effect of the move in most countries is a drop in the declared subscriber base as a percentage of the base with multiple SIM cards choose not to register their handset.
A project underway in Bangladesh at the moment threatens to cut the subscriber base by as much as 3 million customers according to recent claims from the telecoms regulator.
In Kenya, the move could be doubly interesting though - as Safaricom refuses to divulge how many of its subscribers are active - saying that it has an internal figure which even its recent share offering prospectus did not clarify.
Figures from the Mobile World database show that Safaricom ended last year with a declared 10.6 million subscribers, compared to 2.1 million for Celtel. |
Source: Cellular News.

Thursday, May 15, 2008
The global market for Mobile Web 2.0 will be worth US$22.4 billion in 2013, up from US$5.5 billion currently, according to a new report by Juniper Research. Embracing social networking & User Generated Content (UGC), mobile search and mobile IM (Instant Messaging), Mobile Web 2.0 provides a framework for delivery of collaborative applications, further enhanced and contextualised via LBS (Location Based Services).
Click here to see full article
|
The advent of the prosumer
In its latest report, Juniper examines how a fundamental shift in Internet usage patterns is shaping Mobile Web development, driving subscriber adoption and forcing structural changes within the industry. At the core of this evolution is the user as a creator and consumer of content (i.e. the prosumer), and the 'social web' -- which describes a wide variety of social computing tools enabling users to develop detailed Web identities, create online communities and communicate with like-minded individuals.
"Combining the power of the social network map -- namely: 'who I know, how I know and where I know' -- with that of mobility, presents the greatest opportunity for revenue generation of any of the applications as defined within Juniper's Mobile Web 2.0 framework," states Ian Chard, Juniper Research Analyst and author of the new report. "The phone is carried with us most of the time and contains a huge amount of personal data, making it a logical extension for the social network and a host of other collaborative Web 2.0 applications being mobilised."
Other findings from the report:
- Total global revenues for mobile social networking/UGC will rocket from $1.8bn in 2008, to $11.2bn in 2013, accounting for 50% of the market, while growth in mobile search and mobile IM will be more measured
- Service revenues will account for the lion's-share of total Mobile Web 2.0 revenues, although mobile advertising represents a significant opportunity
- Far East & China, Western Europe and North America dominate the global market for Mobile Web 2.0, but will be surpassed by the developing regions over the forecast period
Fresh Challenges
Despite the new opportunities for players across the value chain, Mobile Web 2.0 creates fresh challenges over and above those typically associated with mobilising Internet applications. MNOs must adjust to advertising-sponsored strategies and accommodate partnerships with Web-based players, while device manufacturers and technology vendors must somehow find the means to stitch together what is at present, a highly-fragmented market. Any player in Social Web is also subject to regulatory measures concerning privacy and data retention. |
Source: Cellular News.

Tuesday, May 13, 2008
At the Canalys Navigation Forum in Taipei this week there will be a lot of discussion by industry experts about the future of Taiwan’s role in both the global and Asia-Pacific regional markets for satellite navigation solutions. But Taiwan’s local market will also be considered, with the first presentation of results from a new survey of over 1,000 Taiwan consumers, which explores the local opportunity for GPS navigation and location-based services on mobile phones and portable navigation devices (PNDs).
Click here to see full article
|
“Taiwan is already at the heart of the worldwide GPS navigation market when it comes to manufacturing devices,” said Rachel Lashford, manager of Canalys APAC, “Understanding the impact that mobile phone solutions will have on the PND market globally is critical to these manufacturers, but understanding the local market is also important. Taiwan was the fourth largest market for GPS navigation solutions in the Asia Pacific region last year, and was the second fastest growing smart phone market in the region in Q1 2008.”
The Canalys survey found very high awareness of satellite navigation among Taiwanese consumers, with more than 80% being familiar with what satellite navigation could do. The idea of searching for directions on the web and printing them out was also well established, with 60% saying this was either the first or second most common method they used to plan a route when travelling to a new place for the first time. |
“When asked which services they were interested in having on their mobile phone, whether for free or at a small ongoing cost, maps and navigation came top,” added Canalys analyst Daryl Chiam. “This was much more popular than having television or music on the phone, and these were some way ahead of services that are spreading out from use on the PC, such as web browsing, e-mail and instant messaging. We find that, although consumer mobile application preferences can vary quite a lot by country, having maps, location and navigation information is usually at, or very near, the top of the list.”
Click here to see full article
|
80% of the regular road users surveyed said they got stuck in traffic at least once per week, with a third saying it happened every day and a fifth saying it occurred every time they travelled. Despite this, only a quarter of those who got stuck in traffic jams would be prepared to pay a small monthly fee for a service that used traffic information to route them around the congestion.
“Very few say they have 'no need’ for such a service, but there is also an expectation that, as technology improves, these services should be free,” Chiam continued. “Another service that consumers said they would find useful is having information about the locations of available car park spaces in the vicinity. Where consumers are not prepared to pay for location-based services, the location or advertiser may have to carry some of the cost in expectation of gaining that consumer’s business. Identifying what application functionality should be built in for free and what can command additional revenue will be important for vendors and service providers as location-based services and GPS devices evolve.” |
Source: Cellular News.
In recent years WCDMA subscriptions have grown apace: from 18 million at the end of 2004 to 170 million at the end of 2007. ABI Research forecasts that figure to rise to 740 million by the end of 2013.3
Click here to see full article
|
“WCDMA is on its way towards proven success,” says Jake Saunders, ABI Research vice president, “but there are still challenges and hurdles to overcome. In particular, operators find that expanding WCDMA coverage in the 2100 MHz band into low-density urban and rural areas is very costly in the current competitive environment.”
Spectrum refarming poses challenges for operators and regulators:
- Existing GSM 900 MHz infrastructure can introduce interference into UMTS 900 MHz networks, so guard band and transitional zones may be needed;
- Operators may need to carefully manage voice and data traffic loads between the 900 and 2100 MHz bands to ensure there are no dropped connections resulting in loss of revenue;
- Not all operators have 900 MHz spectrum; therefore refarming of GSM spectrum bands that are coming to the end of their license terms is needed to ensure that they are allocated to everyone fairly.
|
Some of the benefits of spectrum refarming are:
- Radio wave propagation loss is less, so fewer base stations are required;
- Improved in-building penetration: over 70% of phone calls are now made indoors;
- Greater likelihood of rural coverage. Rural communities do not want to be separated by the “3G Divide.”
Click here to see full article
|
National and regional regulators and standards bodies are acting to modify mobile phone service legislation to allow the deployment of WCDMA access in the 900 MHz band. WCDMA has achieved a reasonable foothold in most markets, but the economics of deployment need to be addressed. Competition and lower than expected returns on investment are decelerating the rate of additional coverage.
“Operators are trying to evolve their services to meet the needs of their customers, both corporate and consumer,” adds senior analyst Nadine Manjaro. “Market conditions, and the nature and range of services that operators thought they would be offering to their 3G customers, have changed as well. Deploying WCDMA in the 900 MHz band helps operators to be more versatile.” |
Source: Cellular News.
Venezuela had a total of 24.4 million mobile subscribers at the end of March 2008, up by 24.5% compared with 19.6 million a year earlier, giving the country a cellular penetration rate of 88.5%, according to telecoms regulator Conatel. The watchdog also reported that total mobile traffic across the networks of the three national cellcos Movilnet, Movistar and Digitel increased by 33.5% year-on-year in the first quarter.
Source: TeleGeography.
India's state-owned Bharat Sanchar Nigam Limited (BSNL) has set out the rules for a massive 93 million line GSM cellular order - with 21 million of those lines to be
3G - worth an estimated $6.5 billion and believed to be the largest cellular tender available in the world today.
Click here to see full article
|
The tender - actually a series of tenders - is expected to create a mad stampede by vendors seeking the business, just as happened when BSNL issued a tender for 45.4 million lines in 2006 and 18 companies rushed in to vie for the business (TelecomWeb news break, April 10, 2006). The 2006 tender was never fully awarded, instead becoming mired in political controversy. BSNL eventually awarded a 15 million line deal to state-owned vendor ITI Ltd. and a $1 billion deal to Ericsson for 13 million lines. Nokia Siemens was offered an $875 million deal that it declined because of the lowball price.
This time around BSNL has set up some strict qualification rules on who can bid, limiting that to companies that in the past have done GSM rollouts of at least 20 million lines and annual revenues of at least $2 billion. Bidders must also be able to provide proof of having set up between 2-5 million 3G lines across a minimum of two countries. Winning bidders also face a caveat that they manufacture the GSM EDGE Radio Access Network (GERAN), which forms the core of the networks equipment, by themselves rather than subcontracting that job.
Even with all those conditions it leaves the field open to what will no doubt be vigorous competition. Ericsson, Nokia Siemens Networks, Motorola, Nortel Networks, Alcatel- Lucent, Huawei and ZTE are all known to be eligible - and all are said to have already been sent packages with tender details. They have until July 16 to place their bids, and estimates are that it will be 6-8 months until winners are declared.
As a sidelight, Motorola had been disqualified from the 2006 tender because of a clause requiring that bidders be profitable, a controversial clause that Motorola bitterly protested to no avail. The new tender has no such clause.
One highly controversial clause, however, is still there and mandated by the Indian government: About 30 percent of the contract, or 31 million lines, must go to ITI. It wasn't clear, though, if that 30 percent is included in the 93 million line count, or whether it will be on top of that count - in which case BSNL is building an even more massive 124 million line upgrade. In any case, BSNL has asked the government to drop that requirement, so far to no avail. If the requirement remains it looks like an instant massive win for Alcatel-Lucent, which supplies gear to ITI.
The tender also includes a series of caveats that make it impossible for any one company to win an order for more than 50 million of the lines. For starters, according to details posted on the BSNL web site, the order is being broken up geographically into four tenders. Vendors will get to bid for 25 million lines each in India's western, north and southern zones and for 18 million lines in the east. No vendor will be allowed to win more than two of the zones.
In a bid to further intensify competition, BSNL divided each tender into four components: 2G lines, 3G lines, infrastructure and operating and business support systems (OSS & BSS). Companies can bid individually for any of the four components, and a company can also bid for all the components. The also potentially opens up the bidding to third party infrastructure and IT service providers, rather than only to suppliers who can do the entire job. |
Putting the size of the BSNL tender in perspective, as of the end of March, BSNL had 36.21 million GSM subscribers and 4.58 million CDMA-based fixed-wireless subscribers. That puts it fourth in size the Indian market behind Bharti Airtel, Reliance Communications, and Vodafone Essar. BSNL blames its line count in large part on its failure to get all the lines it wanted in 2006, leaving it capacity-constrained in the face of more nimble and rapidly growing private carriers. It also blames from ITI, and by implication Alcatel Lucent, for delays in receiving equipment.
Dramatizing just how hot Indian cellular market growth has become, the BSNL contract is equivalent to around 40 percent of the country's entire current mobile subscriber base. The total now stands at a bit more than 260 million subscribers, of whom 75 million are CDMA and the majority GSM.
Source: TelecomWeb.

Monday, May 12, 2008
The UAE's second national operator (SNO) Du has admitted that one in five of its subscribers have never used their account, according to Dubai business daily the Kipp Report. According to the operator, the total number of mobile customers at 31 March 2008 was around 1.7 million, out of which 354,000 subscribers had not made a call or sent a text or picture message during the first three months of their subscription.
The Telecoms Regulatory Authority defines an ‘active subscriber’ as one who has made or received a call, or sent an SMS or MMS, within the last 90 days. Du is hoping that its admission will be seen as an act of transparency and will win favour for the brand. Thanks to giveaway promotions many UAE users signed up for Du account, but continue to use their Etisalat number.
Du released the active subscribers' numbers along with its first quarter results. The company reported revenues for the quarter ending 31 March 2008 of around USD20 million, an increase of 18% over the previous quarter and 313% compared with the first quarter of 2007, during which it first launched services. Du’s bottom line for the first three months of 2008 was a loss of around USD16 million, compared with a loss of USD40 million incurred in the final quarter of 2008.
Source: TeleGeography.
Uganda’s newest wireless network operator, Warid Telecom, has announced the launch of a new calling plan that allows customers to place calls to other Warid users and to only pay for the first two minutes of use, no matter how long the call. ‘Effective this month, the first two minutes of a phone call will be chargeable and the rest will be free,’ Zul Javaid, Warid's country general manager, told reporters.
Source: TeleGeography.
The Chittagong Hill Tracts (CHT) region in south-eastern Bangladesh has finally been brought under coverage of mobile phone services with the launching of test operations by state-owned Teletalk in the Bandarban, Rangamati and Khagrachhari districts, reports local newspaper The Daily Star. The three hilly districts, which border India and Myanmar (Burma) and have a population of over a million, are reportedly the last in Bangladesh to be connected to mobile networks. Local sources also said private operators have begun installing base stations in the CHT.
Source: TeleGeography.
According to a new report from the Australian Communications and Media Authority (ACMA), 90% of Ozzie household consumers have both a fixed line phone and mobile phone; of those households, 45% prefer to use mobiles for voice calls even when at home. The report also showed that just 10% of households with a fixed line did not have a mobile, while 20% of household consumers have used or are using a VoIP service.
Source: TeleGeography.
Bangladesh based Warid Telecom has announced plans to invest around US$250 million over the next twelve months to expand its network coverage. The company, which only launched its service a year ago is already the country's fourth largest operator by subscriber numbers.
"We haven't reached the optimum level in terms of subscriber acquisition," said Warid's CEO, Muneer Farooqui, adding, "Our strategy is to go ahead with best quality network. So, we have no intention to have a huge number of subscribers if we fail to provide them best services only."
Farooqui also called on the government to lower the BDT800 (US$11.80) tax on each SIM card sold - which was only introduced in 2004 - as it was slowing the expansion of mobile services into rural areas. "This tax is tremendously affecting our business," he said.
The operator launched its network with coverage in 28 districts, which has now been expanded to include 61 districts - out of 64 for the country as a whole.
The country already has six operators - and according to figures from the Mobile World, ended last year with just under 34.4 million mobile subscribers - which is still a population penetration level of just 22.6%. Also worth noting is that while the country has six operators, only four of them are of any significant scale, Grameenphone (15m), Banglalink (6m) and Aktel (7m) and finally, Warid Telecom (2.1m). The two remaining long term incumbents, Citycell and Teletalk barely add up to 2 million customers between them.
The country is currently under military controlled emergency law, and it is expected that democratic elections may be held later this year. Brig General (Retd) MA Malek who head the Ministry of Telecommunications is a military appointment.
Vodafone has also been reported to be seeking an investment opportunity in the country - generally thought to be through a buyout of the 30% shareholder in Aktel, textiles group AK Khan for around US$300 million.
Source: Cellular News.

Thursday, May 08, 2008
Bangladesh's operators face the loss of a collective 3 million subscribers as a deadline to register each active SIM card by the end of this month will not be extended. Manzurul Alam, chairman of Bangladesh Telecommunication and Regulatory Commission (BTRC) told reporters that "the re-registration deadline won't be extended anymore,"
Click here to see full article
|
The regulator issued a decree to the operators to force all subscribers to register their mobile accounts and provide proof of ID to the operators. The deadline for subscribers to register their details has been extended several times - but not any more.
The operators say that they expect to be able to register the bulk of the remaining 3 million SIM accounts - and will only be allowed to reconnect unregistered SIM cards under exceptional circumstances if they miss the deadline.
The regulator estimates that of the 3 million unnacounted for SIM accounts, some 2.7 million are connected to one operator - Grameenphone.
To register their SIM card - customers must produce two copies of passport size photo, passport or any photo ID card and the forms and documents given during subscription.
If a retailer sells a SIM card without proof of ID they will face a fine of US$10 per infraction. |
Bangladesh ended the first quarter with just under 39 million subscribers - and according to figures from the Mobile World, Grameenphone is the dominant operator with (currently) some 17.5 million customers and a marker share of just under 46%.
Source: Cellular News.

Wednesday, May 07, 2008
A report by New Zealand's Broadcasting Standards Authority has found that nearly half of the country's children (42%) use a mobile phone. The report also found that New Zealand children are savvy media users and that while there has been an explosive growth of media devices in homes in the past few years, television remains the principal form of entertainment.
The research was carried out by Colmar Brunton for the Broadcasting Standards Authority (BSA) and involved interviewing more than 600 children aged between six and 13 and their primary caregivers.
Ninety nine percent of children watch TV programmes, 84% play computer or video games, 62% use the internet and 42% use a cellphone.
BSA Chief Executive Dominic Sheehan said "Not surprisingly, the research reveals that children are interacting with new media, like cell phones, MP3 players and the internet, in high numbers. However, there are marked inequalities in access to new media, with Pacific and Maori children, in particular, falling behind Asian and Pakeha children."
The report also noted that 89 percent of Asian children and 77 percent of Pakeha children use a computer at home with access to the internet compared with just 53 per cent of Maori children and 38 per cent of Pacific children.
The full report is available on the BSA website.
Source: Cellular News.
According to new a research report from the analyst firm Berg Insight, the number of cellular network connections used for machine-to-machine communication will grow from 37.5 million connections in 2007 at a compound annual growth rate (CAGR) of 37.9 percent to 186 million connections in 2012.
GSM and legacy technologies currently dominate the market and accounted for about 71 percent of the total number of active connections at the end of 2007. CDMA was the second largest technology with a strong foothold in North America and parts of Asia-Pacific. WCDMA has so far primarily been adopted for machine-to-machine applications in Japan. Elsewhere the adoption is held back by high component costs and limited network coverage.
Berg Insight has found that machine-to-machine applications today in general correspond to between 1-3 percent of the reported number of mobile subscribers in developed markets. In Sweden and Finland the share is closer to 10 percent due to extensive use of GPRS for meter reading applications.
Click here to see full article
|
However, Berg Insight forecasts that vehicle telematics applications will dominate the machine-to-machine cellular market in most parts of the world and account for more than half of all network connections in 2012.
“Safety and security concerns - manifested either in public regulations or customer preferences - is tipping the balance in favour of massive rollouts of telematics applications by the global automotive industry”, says Tobias Ryberg, senior analyst, Berg Insight. “In North America, OnStar already gives peace of mind to millions of drivers. Europe is well on the way to introducing the eCall automatic emergency call system and several Latin American countries are considering mandatory tracking devices on all new cars to combat epidemic vehicle crime.” |
Source: Cellular News.

Tuesday, May 06, 2008
France’s mobile operators and MVNOs added a net 373,000 new mobile users in the first three months of this year to take the total mobile subscriber base to 55.731 million at the end of March. According to data published by the industry watchdog Arcep, by the start of April the pre-paid base stood at 18.875 million, down 173,900 on the previous quarter, while contract users grew by 546,900 to 36.856 million. The country’s MVNOs accounted for close to 70,000 net additions in 1Q08, to end the period with a total of 2.671 million customers, in a period in which mobile number porting reached 305,900. Arcep said total mobile revenues on mainland France reached EUR5.46 billion (USD8.44 billion), up 3.2% year-on-year, while average monthly ARPU was EUR35.60, down from EUR35.80 in Q407, but up marginally from EUR34.50 in the first quarter of 2007. SMS traffic climbed 47% year-on-year to 6.913 billion messages as voice traffic increased by 7.2% to 35.58 billion minutes.
Source: TeleGeography.

Monday, May 05, 2008
Web monitoring firm, Nielsen has reported that mobile Internet extends the audience reach of many leading Internet sites by an average of 13 percent over home PC traffic alone. For some categories, such as weather and entertainment, the extended reach can be even greater.
Click here to see full article
|
The cross-platform insights come from a new report from Nielsen that integrates data from Nielsen Mobile and Nielsen Online to show the unduplicated, unique audience for more than 200 leading Internet sites across the PC and mobile Internet space. Nielsen’s data show that for many Internet publishers, mobile Internet increases the overall size of their audience.
“The data demonstrate that the mobile Internet can not only increase the frequency of visits to a website, but also grow the overall size of the pie,” said Jeff Herrmann, Vice President of Mobile Media, Nielsen Mobile. “Publishers can now monetize their total cross-platform audience, and advertisers will better understand the efficiency and incremental value of mobile Web traffic.”
Nielsen released data that show - by category - how mobile traffic increases, or “lifts,” Internet audience levels. Weather sites get a strong lift from mobile, meaning there are people who access the sites over their phone but not over their home PC, while shopping sites have a mostly duplicated audience, meaning that mobile users who access shopping sites on their phone likely also do so over their home PC: |
According to Nielsen, 87 million U.S. mobile users subscribe to mobile Internet services, and more than one in ten mobile subscribers (13.7 percent) actively uses mobile Internet each month. TotalWeb integrates data from Nielsen Online and Nielsen Mobile to report how this growing segment uses both mobile devices and PCs to access the Web.
Click here to see full article
|
Nielsen collects TotalWeb data through a survey of active mobile Internet users in Nielsen Online’s MegaPanel, the world’s highest quality metered Internet panel. Members of the panel have their Internet access and behavior via mobile devices and PCs analyzed to provide site-level reporting of unique audience, active reach, unduplicated audience, audience overlap, and demographics across platforms.
“Unduplicated measurement of the total Internet audience will help AccuWeather.com show advertisers the value of our cross-platform audience,” said Dave Wrieden, Executive Director at AccuWeather.com, which received a 43 percent audience lift from mobile Internet users. “Nielsen’s TotalWeb service is the only product that gives us that number and so is an important advancement in Internet audience measurement.”
Category Average Lift
Total 13%
Weather1 22%
Entertainment 22%
Games 15%
Music 15%
Email 11%
Sports 10%
Business/Finance 4%
Social Networking 3%
Search 2%
Shopping/Auctions 1% |
Source: Cellular News.

Friday, May 02, 2008
Fighting increasing competition in the pre-paid market, T-Mobile USA has introduced a new pre-paid calling plan, ‘Pay By The Day’. The plan costs USD1 per day and allows users to place calls for USD0.10 per minute. Users also get unlimited daytime calls to other T-Mobile numbers and unlimited nationwide, off-net calls in the evenings.
Source: TeleGeography.
Vodafone UK has revamped its mobile internet tariffs and henceforth, contract customers will no longer need to buy an additional internet bundle for £7.50 but instead every plan will automatically include internet access. Customers will get up to 500MB of data traffic per month included with their existing tariffs.
Price plans start at £25 and customers who select a £40 or higher price plan will also for the first time have the choice of unlimited texts, unlimited landline calls or unlimited Vodafone to Vodafone calls.
Click here to see full article
|
“Our customers want simplicity and services that are easy to select, buy and use. Today with our new price plans Vodafone customers have the confidence to browse for as long as they need with no extra costs when checking their e-mail, visiting their favourite social networking sites or making a final bid on eBay,“ said Ian Shepherd, director of consumer for Vodafone UK. “This will make Vodafone not only the network of choice for voice and text but also the internet. And what’s more, all customers who visit a store to sign up to the new plan will benefit from Vodafone’s simple two minute set up for email so that they can leave the store up and running.”
Since launching the internet on mobiles last summer Vodafone has witnessed the growth in consumers’ appetite for email, instant messaging, and social networking as well as more general services such as Google search.
Top 4 searches on the Vodafone Mobile Internet (VMI) (ranked by most searched first)
- Facebook
- Bebo
- eBay
- Windows live Hotmail
Top 10 mobile internet sites on VMI (ranked by most visited first)
- Facebook
- Google
- BBC
- MSN
- Bebo
- Sony Ericsson
- Yahoo
- MySpace
- Windows live Hotmail
- YouTube
|
Source: Cellular News.

Wednesday, April 30, 2008
Data published by ITU's Market, Information and Statistics Division highlights continued high growth rates in the mobile market, and particulaly in developing regions. By the end of 2007, over 70% of the world's mobile subscribers were from developing countries. A positive trend, since in 2006 developing countries represented 67% of all mobile subscriber. Five years earlier, in 2002, they represented less than 50%. Africa remains the region with the highest growth rate (32% in 2006/2007) and mobile penetration in Africa has risen from just one in 50 people at the beginning of this century to almost one third of the population today. Africa’s mobile penetration of 28% compares to 37% in Asia, 72% in the Americas, and 110% in Europe. [The latter number, which surpasses the 100 percent mark, confirms that mobile subscriber data do not strictly correspond to mobile phone users. Double counting takes place, especially when one person owns multiple SIM cards and when operators do not identify active subscribers.]

In absolute numbers, China and India are the countries that have added the greatest number of mobile subscribers during the year - some 86 million and 68 million, respectively.
Mobile cellular is increasingly dominating the telephone market and worldwide, mobile subscribers represent no less then 71 percent of all (fixed and mobile) telephone subscribers. In Africa, this percentage is close to 90 percent. The continued growth in the mobile sector is matched by no-growth in the fixed line sector, which has been stagnating at just under 20% globally for the last years. Exceptions include some developing countries, such as Nigeria. Africa’s most populated country has been able to increase fixed-line penetration from below one, to over 4% within five years, mainly through fixed-wireless systems.
ITU's Internet and broadband data suggest that more and more countries are going high speed. By the end of 2007, over 50 percent of all Internet subscribers had a high speed connection. Dial-up is being replaced by broadband across developed and developing countries, including Senegal, Chile and Turkey, where broadband subscribers represent over 90 percent of all Internet subscribers. At the same time, major differences in broadband penetration levels remain and the number of broadband subscribers per 100 inhabitants varies significantly between regions. While broadband penetration stood at less than one percent in Africa, it had reached much higher levels in Europe (16%) and the Americas region (10%). The difference in the uptake of broadband is also reflected by the regional distribution of total broadband subscribers.

Some of ITU's key World Telecommunication/ICT data, encompassing over 200 economies worldwide, for the fixed line, mobile cellular, and Internet/broadband market, are available through the ITU's ICT Eye , the one-stop shop for ICT information and statistics. For more information on ITU's World Telecommunication/ICT Indicators, see: World Telecommunication/ICT Indicators Database.
Source: ITU.
The number of mobile connections in South Korea reached 44.27m at the end of March 2008, with just under 260.0k net additions in the month. This was 21% lower than the March 2007 figure of 329.1k. On a quarterly basis growth was also down, with net additions of 768.5k in Q1 08 compared to 904.1k in Q1 07, and proportionate growth falling from 2.2% to 1.8%. However, the Q1 08 growth rate was higher than the rates recorded in both Q1 05 and Q1 06, and on a rolling annual basis the growth rate of 7.7% was the third highest over the past three years behind the 7.8% and 8.2% rates of Q3 07 and Q4 07 respectively.
Monthly Churn Rates, April 2007 - March 2008

Click here to see full article
|
This is despite the fact that penetration hit exactly 90% at the end of March.
The South Korean market remains highly segmented, with market leader SK Telecom (SKT) over 8m customers ahead of nearest rival KT Freetel (KTF). At the end of March, SKT had 22.37m customers compared to 13.94m for KTF, while third-placed LG Telecom (LGT) was around 6m adrift on 7.96m. LGT had the highest annual growth rate with a 10.3% yearly uplift to customer numbers, while SKT recorded a 7.9% rate and KTF 6.0%.
On a quarterly basis, the rankings for net additions were in line with the market rankings: SKT led the way with 402.6k, ahead of KTF with 219.4k and LGT with 146.5k. This represented a turn-around for KTF, which was behind LGT for net additions in both Q2 and Q3 07. Year on year, however, KTF lost 0.5pp market share to hit 31.5%, while LGT was up 0.5pp to 18.0%.
In one respect competition has increased in South Korea: both SKT and KTF recorded their highest ever monthly churn rates, while LGT saw its highest rate since January 2005. KTF’s March 08 rate of 6.1% was 2.1pp higher than the March 07 figure, while LGT was up 0.6pp to 4.5% and SKT up 0.4pp to 3.6%. Both SKT and KTF saw gross monthly additions top 0.9m and gross monthly disconnections top 0.8m for the first time ever, while LGT saw its highest ever figure for gross monthly disconnections (0.35m) and its second highest for gross monthly additions (0.40m).
Clearly South Korean mobile customers are becoming more and more choosy as they switch between operators at unprecedented levels. |
Source: Cellular News.

Tuesday, April 29, 2008
Media Analyst Screen Digest has just published its latest report and says that it believes the market for rich media advertising on mobile will reach US$2.79 billion by 2012, with global mobile TV advertising accounting for the lions share at US$2.44 billion. In terms of the formats that will deliver this revenue, there are those that will deliver, and those that will disappoint.
Rich media mobile advertising market forecast by region

Click here to see full article
|
By 2012 advertising will account for over 20% of mobile TV revenues, but without its own metrics it will struggle to be considered a stand alone advertising channel. Free-to-air broadcast markets such as Japan and South Korea will offer bigger advertising opportunities than markets where mobile TV will be offered as paid subscriptions to the consumer, such as North America and most of Europe. Mobile Video-on-Demand advertising will be small in comparison, reaching US$336 million in 2012 by supporting extracts from popular programmes and sponsoring recurring content such as news and weather forecasts.
In terms of delivering advertising revenues, Screen Digest believes that games, UGC and music will disappoint. However, these formats will provide a valuable source of innovative marketing opportunities for brands aspiring to connect and interact with their customers. For example, Screen Digest predicts that by 2012 over 60 million ad-funded mobile games will be downloaded per year worldwide.
More ubiquitous than the PC, mobile offers the opportunity to send personalised messages to people in all markets. Advertising sent via the mobile phone reaches the recipient directly, wherever they are, at any time and location, offering effective targeting as well as interactivity and consumer engagement.
Yet despite these benefits, mobile advertising is very much in its infancy. Julien Theys, one of the authors of the report notes the factors that are holding back the mass market take up of mobile advertising: “Data pricing structures, handset and mobile web usability, content quality and the lack of audience metrics to measure effectiveness are preventing mobile advertising from reaching its market potential. Although we expect these hurdles to be overcome in the coming years, mobile media advertising will have to compete with search, display, messaging advertising as well as many innovative uses of mobile in marketing campaigns.”
View from GroupM: An emerging format with potential
The advertising executives surveyed in GroupM’s agencies in 25 countries were positive about the capabilities offered by mobile advertising, in particular targeting by location, interactivity and high response rates. To date only 15% had used mobile advertising, either as a stand alone or integrated campaign, underlining Screen Digest’s view that this is an emerging technology. Of those agencies that had trialled mobile advertising, 75% had used mobile content at least once as a promotional item, while 67% had at least once placed an ad in rich media. The reasons given for not incorporating it into ad campaigns included poor user experience and usability, handset limitations and the lack of clear measurement metrics.
David MacQueen, Head of Mobile and co-author of the report concludes “Mobile advertising, and mobile rich media advertising in particular, is a growing industry with a rapidly evolving landscape. Nokia, Microsoft and Google have been very active in developing mobile advertising operations, either internally or through external acquisitions. The potential is huge, and some of the world’s largest companies are vying for control of what they see as the next major advertising medium.” |
Source: Celluar News.
Orange UK has unveiled its third Digital Media Index, a detailed report examining trends in customer consumption of digital media. The latest findings reveal a sharp increase in mobile internet access alongside traditional fixed line broadband.
Key findings from the spring report include:
- Mobile internet becomes part of day-to-day life - with a 35% increase in page impressions
- Mobile TV takes off - with an 87% increase in the total hours viewed
- Video downloads gain momentum - having doubled in the last year
- Single music track downloads reach new heights - with a record-breaking 289,000 tracks downloaded in December alone
- Text messaging becomes more popular than ever - with over 1.3 billion messages sent a month - an increase of 21%
Matthew Kirk, Director of Portals for Orange, said: “The mobile phone has truly taken its place as a multimedia content device. The popularity of mobile TV, music and gaming has surged as customers use the mobile internet alongside home broadband to stay connected wherever they are. It really is the third screen in our lives for entertainment, communication and information alongside the TV and the PC ”.
These figures are in comparison to the second Orange Digital Media Index released in November 2007.
Source: Cellular News.
The Association of Telecom Companies of Nigeria, ATCON has called on the telecoms regulator to formulate plans to force new and existing customers to register their PrePay SIM cards. Citing security issues in a country with limited central services, the association believes that the move would not impact on privacy and would help fight crime.
Click here to see full article
|
It is unusual for a telecoms trade body to call for such a move - as it is usually mandated by governments against the wishes of the operators. It could be that the association is simply trying to preempt a plan by the government which it has heard about and wants to drive the legislative process rather than leaving it to the politicians.
The proposals, explained by the Association President, Dr Emmanuel Ekuwem would require all new subscribers to provide proof of identity when subscribing to a new SIM card. Existing subscribers would have six months to register their existing SIM cards or face disconnection.
The Association of Telecommunications Companies of Nigeria (ATCON) is a professional, non-profit umbrella organisation of all telecommunication companies in Nigeria. |
Source: Cellular News.
The Netherlands’ incumbent fixed and mobile operator KPN Telecom has reported a 3.5% annual rise in first-quarter core net profit, driven by strong growth at its international mobile operations, and says there are strong indications that its Dutch businesses are beginning to bottom out.
Click here to see full article
|
Reuters reports that KPN posted earnings before interest, tax, depreciation and amortisation (EBITDA) of EUR1.23 billion (USD1.9 billion) in the three months ending 31 March 2008, up from EUR1.19 billion the year before, in line with analyst estimates of EUR1.23 billion in a Reuters poll. KPN’s international mobile division reported core earning growth of 7.1%, while growth in its home market climbed 2.1% despite intense competition from alternative telcos and cable TV operators. KPN attributed the gain to benefits resulting from its acquisition of IT services company Getronics last year, which helped drive up revenues by 22% to EUR3.57 billion, compared with an average forecast of EUR3.61 billion. KPN chief executive Ad Scheepbouwer said his company was optimistic that net income from Dutch operations would begin to rise again on a comparable basis. ‘There are many factors - the net line loss that continues to go down, the growth in IP services, TV and of course the cost reductions,' he said, adding ‘We're optimistic that this thing is turning around.’ |
Source: TeleGeography.
For the first time, there is now more than one mobile service for every Australian, with 21.26 million mobile phone services in operation at 30 June 2007, a 7.6 per cent increase from 19.76 million the year before, according to the Australian Communications and Media Authority.
A significant increase in 3G mobile customer numbers helped drive that growth, which was in contrast to a small but continued decline in fixed-phone services over the last financial year.
‘There are now more than 4.5 million 3G mobile services in Australia, a 192 per cent increase between 30 June 2006 and 30 June 2007,’ said Chris Chapman, ACMA Chairman.
The number of fixed services dropped from 11.26 million to 10.92 million between 30 June 2006 and 30 June 2007. The number of payphones in operation in Australia (both Telstra operated and privately operated) dropped by 8,368, to 49,862.
In 2005-06 almost a million new geographic numbers were allocated by ACMA. In 2006-07, geographic numbers were predominantly allocated for VoIP services – 2.89 million out of a total 3.23 million. This increase is a sign of competition and the entry of new VoIP providers into the Australian market requiring a supply of numbers for services across the country.
Internet subscribers were another area of communications services growth. There were 6.43 million internet subscribers in Australia, made up of 2.09 million narrowband and 4.33 million broadband subscribers (to the end of March 2007). Domain name registrations also grew: 795,368 .com.au registrations in the year compared with 612,918 the previous year.
The full report can be downloaded from the Australian regulators website.
Source: Cellular News.

Thursday, April 24, 2008
Batelco has posted a 10.8% year-on-year rise in net profit to BHD27.4 million (USD72.7 million) for the first quarter of 2008, on revenues that were driven up 17.4% by overseas operations to BHD78.1 million. A company official said that the Bahraini former monopoly achieved a milestone of over 700,000 mobile subscribers in the Kingdom by the end of March, whilst its consolidated group mobile user base reached 3.3 million. Foreign operations now contribute approximately a third of Batelco’s revenues and more than 20% of its operating income.
Batelco also announced that its pre-paid wireless customers can now enjoy mobile broadband services on handsets, laptops and datacard-equipped devices at maximum downstream connection speeds of 3.6Mbps. The operator has expanded its HSDPA-based O-Net Mobile Broadband service to the pre-paid segment following a contract-only launch at the beginning of this year.
Source: TeleGeography.

Wednesday, April 23, 2008
It is clear that the Asia Pacific region is a GSM stronghold, with 1.075 billion of the total 1.36 billion connections using that system and a further 85 million using 3rd Generation W-CDMA. These numbers compare with 1.003 billion and 75.0 million at the end of Q3 07 and 817.6 million and 48.3 million one year earlier, implying annual growth rates of 32% and 77% respectively.
Asia Pacific: Customers by Technology

However, GSM is not the only force in the market and for the moment at least, CDMA is still gaining ground.
It closed the quarter with 182.9 million connections, up 8.2% on the quarter and 21% on the year. The US technology may be wilting in other markets, but its presence in India gives it a lifeline here. How long this will continue though is not clear. In Australia, the technology will become extinct next week as Telstra is finally allowed to shut down its network in favour of its new “NextG” W-CDMA alternative. Reliance, India’s largest CDMA operator now has over 6 million of its 41 million total connected to GSM systems, while even more worryingly, South Korea seems to be moving away too. At the end of 2006, there were just 30k W-CDMA customers out of a total base of 41 million. At the end of 2007, this number had leapt to over 6 million, with CDMA declining to 37.6 million.
In total, there are five other technologies in use within the AsiaPac region, but all five are in clear decline. There are now fewer than 100,000 customers connected to first generation analogue technology (represented by AMPS, ETACS and NMT). This compares with over 700k three years ago. Other second generation technologies are not faring well either. The US TDMA standard has now almost completely disappeared with fewer than 350k connections in total, while Japan’s PDC system is in steady decline, losing another 2.7 million customers this quarter to end at 16.76 million.
Source: Cellular News.

Tuesday, April 22, 2008
From data by CCID Consulting, the sales volume in China's mobile phone market is 150 million units in 2007, which is 24.1% more than that of 2006. If black- market mobiles from smuggling, unregistered brands and other illegal products are counted, the number exceeded 200 million in 2007.
Sales & Growth Rate of China Mobile Market 2000-2007

In 2007, over 60% of users changed their mobiles with over 90 million mobiles sold for this purpose. The reasons could be attributed to faster function upgrades, higher performance- price ratio, shorter product life cycle, and customized service by the network operators. The number of new subscriber reached a new record in recent years with over 86 million new subscribers in 2007 and over 7 million per month.
Click here to see full article
|
According to their statistics, new subscribers mainly come from rural markets and 3rd/4th-level cities.
CCID says that the competition of products on the market will be rather fierce while the China mobile market is developing on a large scale. The homogeneity, price wars, and sinking channels will direct consumer behavior, and manufacturers will turn from seizing market share to chasing profit. The certificate of mobile authority and the launch of the China 3G mobile market will stimulate market competition and create concentrated market share in already-advantaged brands and less market share in small brands. It will also create competitive cooperation among manufacturers, distributors and network operators. |
Source: Cellular News.
Mobile payment is a service at an early stage with an expected 32.9 million users worldwide in 2008, growing to 103.9 million users in 2011, according to Gartner. Short Message Service (SMS) is the dominant mobile payment technology today, driven by mobile money transfers, and it will remain the dominant technology through 2011.
Click here to see full article
|
Gartner defines mobile payment as paying for a product or service using mobile technologies, such as SMS, Wireless Application Protocol (WAP), Unstructured Supplementary Service Data (USSD) and Near Field Communications (NFC). It excludes telebanking by using a mobile phone to call the service center, as well as mobile ticketing where the ticket value has been prepaid and stored on the phone. The payment is made via the phone, although not necessarily over a wireless network, as in the case of NFC. Examples include merchandise purchase, payment for parking or transit, paying monthly bills and paying for money transfers.
"Mobile payment could bring revenue opportunities for carriers and, potentially, banks if deployed properly," said Sandy Shen, research director at Gartner. "The business case is more obvious for mobile carriers than banks; however, banks can justify the investment if they look at mobile as an extension of their existing channels and bundle payments with additional banking services."
"The service is easier to justify in emerging markets, where many people are unbanked or underbanked, and there are few payment options," Ms. Shen said. "In developed markets, mobile payment is likely to start as a loyalty scheme, as an extension of existing services. However, banks should be aware of alternative services from nonbanking institutions, such as PayPal and Obopay, that can compete on lower fees and faster transactions and that are more proactive on the mobile front. These could threaten the lucrative card business should momentum build up." |
Asia/Pacific has the most mobile payment users with a projected 28 million users in 2008, accounting for 85 percent of the worldwide total. Western Europe is expected to have 499,000 users in 2008, and North America is projected to have 1 million users.
Click here to see full article
|
"Asia leads the world in the uptake of mobile payment and will continue to do so for the foreseeable future," Ms. Shen said. "There are three main reasons for this, the first being the early launch of such services in the region, led by the Philippines and Japan. Secondly, there are some significant developing markets in the region, such as China and India, with large numbers of mobile users and insufficient banking and payment infrastructure. Thirdly, Asia is ahead of the world in mobile service development due to the receptive attitude of the end user, who is more willing to try new services."
North America and Western Europe will see slower uptake of mobile payment because of the more established nature of the payment infrastructure in those regions and a higher sensitivity to security. However, Gartner expects that the arrival of advanced mobile payment technologies, such as NFC, has the potential to speed up service adoption as consumers associate the "cool factor" and convenience with contactless mobile payments. |
Source: Cellular News.

Monday, April 21, 2008
Taiwan's Institute for Information Industry has issued a report on the telecoms market and says that 3G subscriptions reached 6.91 million at the end of last year - representing a rise of 16.5% and a total base of 28.5%. 2G subscriptions fell by 4.2 % to 15.9 million. The Institute anticipates that 3G subscriptions will top 10 million, or 40% of the total base by the end of this year.
The population penetration level reached 105.8 percent.
The Institute also reported that text messaging volumes rose by 26% to 1,256 billion in the fourth quarter of last year. The average subscriber sent just over 54 text messages during the quarter and 18 text messages per month.
Mobile internet access increased by 7.8% to 11.86 million and nearly half of all mobile phones sold included mobile internet services. Just over 55% of mobile internet access is carried out via a 3G handset, compared to 32% being carried out over a GPRS network.
Source: Cellular News.
A very complex mobile value chain and a growing business reliance on mobile products have created the need for services that help businesses maximize the value of their mobile investments. In a recent report from ABI Research, mobile device management (MDM) services are forecast to grow from $583 million in 2007 to over $20 billion by 2013, for a compound annual growth rate of 80%.
Click here to see full article
|
Mobile device management services include policy development, procurement and asset management, billing audit and reconciliation, enhanced customer care, device/content security, and additional services that are vertical- and occupation-specific. According to principal analyst Dan Shey, “The range of services needed to manage a business’s mobile investments requires inputs from many different wireless equipment and services providers including operators, MDM platform vendors, IT services providers, telecom expense management firms, and mobility management services firms. All want to be part of the action.”
But the biggest disruptors for the market have yet to make their mark on the industry. Mobile device management platforms are slowly evolving with more and more capabilities for mobile device management services. Their increasing functionality on a growing base of device platforms automates many important mobile device management processes. Not only can these platforms be employed by many value chain suppliers, but more importantly, businesses can acquire and use these platforms themselves.
Shey concludes, “Operators are the dark horses in this race: they provide and appropriate revenues for nearly all mobile capabilities, they already use MDM platforms, and they value the mobile business customer highly. MDM platforms, and the possible participation scenarios of the mobile operator, beg the question: ‘Who will manage?’” |
Source: Cellular News.
Given the explosive growth in mobile communications, India, through its use of a variety of wireless technologies, aims to reach 500 million subscribers by 2010, according to private sector and government officials attending a Commonwealth Telecommunications Organisation (CTO) conference in Kerala, India. India forecasts that its current level of 240 million subscribers will be doubled within less than two years, thanks to the policies being implemented by the Government of India, especially for universal access in rural and suburban areas.
Click here to see full article
|
The effort to connect rural communities is an important issue for ICT operatives in Asia, as regulators, governments and other stakeholders see the urgency of harnessing ICTs to bridge the digital divide and further create new market opportunities for the private sector in Asia.
As a diplomatic inter-governmental ICT organisation, the CTO has assembled regulators, Ministers of Communications and ICT giants to map rural connectivity in this explosive, high-growth market. The forum outlined the latest elements of rural ICT developments, while creating networking opportunities for the industry elite from across the entire value chain.
Commenting on the success of the conference, Dr. Ekwow Spio-Garbrah, the CEO of the CTO, said: “In our view at the CTO, the central challenge facing the development community in the ICT arena is how to connect the unconnected. In most developing countries, the unconnected are in the rural areas, hence the critical importance of our series of conferences in Africa and Asia on connecting rural communities. These events have been very helpful to our member governments, ICT regulators and industry executives in appreciating the right combination of policies, legislation, regulation, operational strategies, unique business models, innovative financing mechanisms and other local ownership and management arrangements that make rural connectivity initiatives sustainable.” |
Source: Cellular News.

Friday, April 18, 2008
Pakistan's mobile operators have blocked some 1.36 million SIM cards since the beginning of the year after their owners failed to register them as is now required. In addition, even subscribers who did register their details had a limit of 10 SIMs per person imposed and any additional SIM cards were cut off.
Click here to see full article
|
A Pakistan Telecommunication Authority (PTA) official told the Dawn newspaper that despite the media campaign had been suspended in the first week of this month, the authority will continue to carryout surveys/ground checks of outlets (franchisees/retailers) on a regular basis and mobile companies will be held responsible for any violation on part of registered or unregistered franchisees or retailers.
The regulator issued a requirement last year forcing all mobile phone users to register their details with the phone operators - and a clarification was issued in February to the operators to make the registration process easier.
According to figures from the Mobile World database, Pakistan ended last year with some 76.9 million subscribers, so the loss of 1.36 million subscribers if evenly distributed amongst the operators, while not insignificant is unlikely to be catastrophic.
In related news, India has alleged that Pakistan’s nine mobile phone towers erected along the border have security-related implications. Tests carried out by the Ministry of State for Home Affairs tested 44 locations inside the Indian border and reported to have found mobile signals from the Pakistani operators leaking across the border at 39 location. |
Source: Cellular News.

Thursday, April 17, 2008
Just as search became critical on the desktop, search will become increasingly important in the mobile space. The growth of consumer options to search on-deck and off-deck, SMS, and via branded or white-label search providers in the mobile domain has created opportunities for advertisers to reach consumers through sponsored search opportunities. ABI Research believes mobile search advertising growth will be driven by this escalating array of options, as total search-related mobile advertising expands from $813 million in 2008 to $5 billion by 2013.
Click here to see full article
|
“We are seeing strong growth of mobile search services within an on-portal and off-portal context,” says ABI Research director Michael Wolf. “However, given the constraints of mobile platforms and the specific needs of mobile users, mobile search services – and the integration of advertising - need to be thought out carefully by branded providers, white-label search vendors, and carriers.”
The growth of mobile-search-related advertising will be strong across many regions, with Asia-Pacific showing the greatest overall gains. On-portal, off-portal, and SMS-based search will be important drivers of search-related advertising, with total SMS searches growing from 13 billion in 2008 to over 76 billion by 2013.
“Branded providers such as Yahoo and Google see the importance of the mobile platform, as the overall population of Internet users on mobile devices exceeds that of PC-based Internet users,” continues Wolf. “While mobile search incorporates more contextually relevant information such as location, consumers will increasingly look to search as a way to discover content and pertinent information that could drive purchasing behavior. Providers that can supply the most applicable solutions tailored toward mobile users will ultimately win in the marketplace.” |
Source: Cellular News.
A new report by Juniper Research into the mobile financial services sector has found that the number of consumers accessing banking services and products via their mobile phones will reach 816 million by 2011, a tenfold increase on the number using such services in 2007.
The report found that financial institutions are delivering an increasing variety of products in the mobile environment including financial information services, funds transfer, bill payment and presentation, account management and customer service.
According to the report, the annual number of global mobile banking transactions will rise from 2.7 billion in 2007 to 37 billion by 2011, as a greater number of services are deployed worldwide. It adds that increased consumer confidence, due to the enhanced security measures that are being utilised in mobile financial services will be crucial to greater service usage levels.
Click here to see full article
|
However, the report cautioned that a number of hurdles to service deployment and user adoption have yet to be overcome, including financial regulation, payment transaction costs, revenue share issues and customer support difficulties.
Other findings from the report include:
- The China/Far East region will have the greatest number of users of mobile banking services, followed by Western Europe and the Indian sub- continent
- Financial information services will be the most popular banking product offered via the mobile
- Worldwide average financial transaction values are expected to nearly double over the 2007-2011, rising by more than 4x in many emerging markets
|
Source: Cellular News.
The number of cellphones in circulation in Brazil totaled 125.8 million at the end of March, up 1.36% from February and 23.2% higher than the same month one year before, according to preliminary figures released Wednesday by telecommunications regulator Anatel.
Net additions in the month were 1.69 million. In the first quarter, net additions reached 4.83 million.
Click here to see full article
|
"The strong growth seen in 2008 is due at least in part to the practice of selling multiple subscriber identity module, or SIM, cards per subscriber, which artificially inflates the number of wireless subscribers and net additions." Morgan Stanley said in a research report.
"As a result, we believe revenues and earnings before interest, taxes, depreciation and amortization, or Ebitda, growth may not follow subscriber growth at the same pace. So far, we have not seen this trend, but we will be following close as wireless operators report first quarter results over the next few weeks," it added.
Brazil's main operator are Vivo Participacoes, which is jointly owned by Spain's Telefonica and Portugal Telecom; TIM Participacoes, the local unit of Telecom Italia and Claro, the local unit of Mexico's America Movil. |
Source: Cellular News.
According to new data from the Bangladesh Telecommunications Regulatory Commission (BTRC), the country’s mobile operators added 1.38 million new subscribers in March 2008 to raise the total user base to 38.93 million. The figures show that market leading Telenor subsidiary GrameenPhone’s subscriber base increased by 610,000 in March to reach 17.81 million; Orascom Telecom’s Banglalink’s customer base grew by 430,000 to 8.31 million; Telecom Malaysia International Bangladesh (AKTEL) signed up 90,000 users to take its total to 7.45 million (after slipping behind Banglalink in the first two months of the year); Warid Telecom Bangladesh (which launched in May 2007) has already firmly established itself in fourth place with 2.79 million subscribers at the end of March, up from 2.6 million in February; SingTel-backed CityCell (the only CDMA operator in a GSM-dominated field) added 50,000 users to end the month with 1.56 million; and finally state-owned Teletalk was reported to have 1.01 million customers, compared to a million the month before. The latest growth figures bring the impoverished country’s cellular penetration rate to an estimated 27%.
Source: TeleGeography.
Russia's largest mobile phone operator, Mobile TeleSystems (MTS), has reported that net profit for 2007 almost doubled to USD2.07 billion compared to USD1.08 billion in 2006. Revenue for the year ended 31 December 2007 increased 29% to USD8.25 billion from USD6.38 billion. Consolidated OIBDA grew 31% to USD4.223 billion, with OIBDA margin amounting to 51.2%, up from 50.6% in 2006. Subscriber numbers across the group's operations rose 13% to 85.77 million, while it gained 6.21 million new subscribers in Russia during 2007.
On a quarterly basis, MTS’s net profit more than quadrupled in the final three months of the year to USD460 million compared to USD110 million in same period of 2006. This was less than analysts had anticipated, but revenues, which rose to USD2.33 billion in the period from USD1.81 billion a year ago, were higher than forecasted. MTS said monthly ARPU rose to USD10 in Russia in the fourth quarter.
MTS said it expects revenues to grow by at least 25% in 2008, fuelled by an increase in the demand for voice services and a higher consumption of extra services and data transfer. The company plans capital expenditure of up to USD2.5 billion for the year.
Source: TeleGeography.

Wednesday, April 16, 2008
The total number of mobile connections in the UK surpassed 70 million during the fourth quarter of 2007, finishing the year on 70.99 million. In total there were 4.10 million net additions during the year, up from 1.35 million in 2006, while on a proportionate basis the annual customer growth rate almost tripled from 2.1% to 6.2%. This was due in part to the one-off loss of 1.30 million customers in 2006 as a result of T-Mobile's change in policy regarding active users, but even if we discount this there would have been an increase in customer growth in 2007. This is despite the fact that penetration is well over 100%: at the end of 2007, in fact, the penetration rate had reached 116.5%, up from 110.1% a year earlier.
Customers and Annual Customer Growth Rate

Monthly ARPU - Top Four Operators
Click here to see full article
|
The key to the year's strong customer growth was the performance of Vodafone, which added 2.06 million active customers, over half the total net additions for the market in 2007. It finished the year with an estimated 16.75 million active subscribers, up 14.1% year-on-year, compared to a 0.9% decline in 2006.
Vodafone was the only operator to record double digit customer growth in 2007, although Hutchison was not too far off with an 8.4% annual growth rate. Market leader O2 - the only operator to record over 10% growth in 2006 - saw a 4.4pp drop to 6.7% in 2007. However, it still managed to record a 0.2pp increase in market share to 28.4%, as well as breaking the 20 million barrier in Q4 to finish the year with 20.13 million active customers.
Vodafone saw the greatest gain in market share, however, adding 1.6pp to reach 23.6%.
Orange, which saw its second place taken by Vodafone in Q1 07, lost 0.8pp of share in the year to finish on 22.1%. It added just 0.31 million customers in 2007, down from 0.48 million in 2006, and ended the year with 15.64 million connections. In fourth place, T-Mobile saw its fifth successive yearly decline in market share, ending 2007 down 0.5pp on 14.5%. It did at least manage a net gain in customers, although the increase was only 0.26 million.
Virgin, which operates as an MVNO on T-Mobile's network, was the only operator of the top six to see a net loss of customers in 2007, dropping 31.4k as a result of a poor performance in the first half of the year. It lost 0.5pp of market share in the year to finish on 6.3%. Finally, Hutchison added 0.24 million in the year to finish on 3.11 million, with market share up 0.1pp at 4.4%.
The 2nd chart offers a comparison of the ARPU figures for the top four operators. It should be noted that since not all four publish a quarterly average for monthly ARPU, certain adjustments have been made for the sake of comparability: T-Mobile's figure is only released in Euros, so has been converted to pounds sterling using the relevant exchange rates, while Orange's monthly figure has been derived from the annual average that it publishes. The chart demonstrates that O2 has maintained the highest ARPU figure of the top four for the past three quarters, the increase in ARPU in 2007 suggesting that the company has been focusing on increasing customer value rather than on raw customer growth. Vodafone, by contrast, has paid for its strong customer growth with a fall in ARPU. Meanwhile, the upward trend of T-Mobile's ARPU has seen it match Orange's Q4 07 figure of £22.10, although both companies' figures should be approached with a degree of caution for the reasons stated above. |
Source: Cellular News.

Tuesday, April 15, 2008
A report published by Pyramid Research says that mobile data will account for 29 percent of the global mobile service revenue in 2012, up from 19 percent in 2007. Clearly, the mobile data opportunity is soaring: the 2007 mobile data revenue was more than double what it was in 2004, and Pyramid Research expects it to double again to $300 billion by 2012.
The report also said that more than 60 percent of worldwide mobile data revenue will come from developed markets through 2012, despite the fact that 85 percent of the world's population lives in emerging markets. However, mobile data revenue in emerging markets will grow more than 50 percent faster than developed markets from 2007 to 2012
Mobile data revenue outlook, 2007 to 2012: Developed vs. emerging markets

Click here to see full article
|
In emerging markets, 3G and WiMAX will provide Internet connectivity to many consumers for the first time, partly due to a lack of viable fixed alternatives. Asia-Pacific will generate the highest mobile data revenue throughout the forecast period, and Africa and the Middle East will grow the fastest.
Across the developed regions, North America will experience the fastest growth in mobile data revenue, spurred by the United States, which will rake in the largest revenue from mobile data services, followed by Japan and China. India's mobile data revenue will grow fastest from 2007 to 2012. By 2012, India will have moved ahead of most developed nations to become the fourth largest market for mobile data revenue with more than $14 billion. Other fastest growing markets include Pakistan and Brazil.
Compared with emerging markets, data ARPS (average revenue per subscriber) is five times higher in developed nations, and the difference gets even greater in those markets where operators provide flat-rate data bundles and promote 3G. In emerging markets, the growth of data ARPS will be hindered by an increasing majority of prepaid subscriptions, and pricing for 3G services and handsets. We expect 71 percent of subscriptions in developed markets to use 3G handsets in 2012 compared with only 10 percent in emerging markets. The operators that generate the highest data ARPS are focused on 3G data services and offer flat-rate data bundles; they include Hutchison Whampoa's 3 in several markets including the United Kingdom and Australia as well as Japanese operators NTT DoCoMo and KDDI.
SMS will continue to generate the highest share of global mobile data revenue through 2012 and will make a larger impact in emerging markets. However, SMS revenue as a percentage of mobile data revenue will decline throughout the forecast period, as other data services - made possible by the rollout of next generation networks - gain further traction.
Slower 3G rollouts in emerging markets will likely hold back the growth of non-messaging data services. In 2012, in emerging markets, SMS will still comprise 45 percent of data ARPS in contrast to less than a quarter in developed markets. From 2007 to 2012, we expect the growth rate for SMS revenue in emerging nations to be almost three times as high as that of developed nations. |
Source: Cellular News.

Monday, April 14, 2008
While a large number of phones today still use browsers with very limited web browsing capabilities, many smartphones are incorporating browsers that support the latest capabilities such as AJAX and RSS, as well as websites optimized for viewing on a mobile device. ABI Research sees this segment of the mobile browser market accounting for the vast majority of growth over the next five years, as the open-Internet browser (OIB) segment for mobile grows from 76 million in 2007 to nearly 700 million browsers delivered in 2013.
Click here to see full article
|
“The focus today for mobile browser developers is to take advantage of the latest web standards while also developing solutions tailored towards the unique experience of using a browser on a mobile phone,” says research director Michael Wolf. “The most recent commercial solutions from Opera, Openwave and ACCESS, as well as those using open source solutions such as Webkit, are targeted towards allowing consumers to access content on the web without limitations due to browser constraints.”
Still, it’s important to note that despite the best efforts of browser vendors and handset manufacturers, web usage on mobile devices has a significant distance to go in closing the gap with PC-based browsers. The absence of important plug-ins such as Flash on many handsets and the constraints of many phones compared to the PC mean that even OIB browser vendors such as Skyfire continue to see a need for server-assisted architectures for transcoding and web acceleration.
“There is a lot of development momentum for web content on mobile phones,” adds Wolf. “The move towards web-based applications means browser and web services engines will become increasingly important for mobile, whether these are in a commercial browser implementation or a customized widget. Ultimately, the long-term trend away from native applications to web-based applications means browser and web services engines will be increasingly important components in the mobile environment.” |
Source: Cellular News.
MUMBAI -(Dow Jones)- Indian telecommunications operator Bharti Airtel added 2.31 million mobile phone subscribers in March, industry data showed Friday.
As a result, Bharti's total mobile phone user base has grown to 61.98 million subscribers at the end of March, according to data released by the Cellular Operators Association of India.
In March, Vodafone Essar added 1.57 million mobile phone users taking its total subscriber base to 44.13 million, said COAI, which represents the 10 operators using the global system for mobile communications technology.
State-run Bharat Sanchar Nigam Ltd. (BSNL) added 1.64 million mobile phone users, taking its total subscriber base to 36.21 million at the end of March.
Idea Cellular added 1.13 million users and had 24 million mobile phone subscribers at the end of March.
Another state-run operator, Mahanagar Telephone Nigam Ltd., added 120,020 new mobile phone users in March and has a total subscriber base of 3.24 million
Source: Cellular News.

Thursday, April 10, 2008
Iran had the fifth fastest growing mobile market in the MEA region in 2007, with the number of subscribers almost doubling year on year from 14.33m at the end of 2006 to 28.51m at the end of 2007. In absolute terms, no market in the region gained more new connections than Iran in 2007.
This extraordinary growth (a 98.9% annual increase) can be attributed to the launch of Irancell in the final quarter of 2006. Having added 0.15m customers in its first two months of operation, Irancell surpassed the 1m barrier during Q1 07, and during Q4 it went through 5m to finish the year on 6.01m customers. This represents a phenomenal annual growth rate of 3800%. On a quarterly basis, the 61.5% growth of Q4 was the lowest rate seen so far, but this was still higher than the year-on-year increase recorded by market leader Telecommunications Company of Iran (TCI).
Iran: Quarterly Net Additions, Irancell and TCI

Click here to see full article
|
Until the launch of Irancell, TCI completely dominated the Iranian market.
Although its monopoly was broken in 2001, tight restrictions were imposed on the other operators: Mobile Telecommunications Company of Esfahan and Telecommunication Kish Co. have highly specific local licences with limits of 20k and 35k customers respectively, while Rafsanjan Industrial Complex (Taliya) is a BOT (Build, Operate, Transfer) business which has a cap of 2m customers. This ensured that TCI’s market share never dropped below 94%. However, since the end of 2006, TCI’s market share has fallen from 95.3% to 74.7%, with Irancell claiming 21.1% of the market at the end of 2007.
Nevertheless, in real terms TCI gained more new customers in 2007 - 7.64m compared to Irancell’s 5.85m - and it remains over 15m customers ahead of its rival with a year-end base of 21.30m.
Looking ahead, Irancell will almost certainly continue to eat into TCI’s market share, but it is unlikely that it will be in a position to challenge its lead in 2008. However, in both Q3 and Q4, Irancell recorded higher figures for net additions than TCI with 1.74m in Q3 and 2.29m in Q4 (compared to 1.71m and 1.80m for TCI) and should this trend continue, we could see some very close competition indeed by the end of 2009. With penetration at 40.8% at the end of the year, there is certainly plenty of potential for growth. |
Source: Cellular News.
The trade body, 3G Americas has announced that the world now has 3 billion mobile phone users based on the GSM family (inc UMTS), based upon research and projections by Informa Telecoms and Media. Today, 88% of the world's 3.5 billion mobile wireless subscriptions are to the GSM family of technologies.
By comparison, there are only 850 million personal computers worldwide, forecast to reach 2 billion in the year 2015 (Forrester, June 2007). Three billion GSM based subscriptions is nearly triple the number of people accessing the Internet around the world, 1.1 billion. Fixed landline phones number just over this, at 1.3 billion globally. The closest technology in terms of number of electronic devices is the number of television sets. But even that number falls a full billion short of the 3 billion GSM family milestone, with an estimated 2 billion television sets in use today (Source: Communities Dominate Brands blog, Tomi Ahonen, January 2007).
Click here to see full article
|
Chris Pearson, President of 3G Americas, commented, "The rapid uptake of GSM mobile wireless technology is unprecedented. Three billion subscriptions -- nearly half of the world's population -- is a milestone that is unmatched in terms of volume and affect on people's lives. The GSM family of technology's expansive scope is a central reason we will continue to thrive as the market leader for mobile broadband with HSPA, and in the future, LTE."
GSM Family of Technologies Growth in the Americas
From March 2007 to March 2008, GSM added over 100 million subscriptions in Latin America and the Caribbean for a total of more than 332 million subscriptions and a wireless market share of 83%, according to estimates by Informa Telecoms and Media. As of April 2008, there are 19 commercial HSDPA networks launched in 11 countries of this region. New launches of HSDPA occur almost on a weekly basis, and operators such as Telcel continue expansion with current commercial HSDPA deployments in 16 cities in Mexico.
In North America, operators continue upgrading and expanding their HSDPA networks. Rogers in Canada announced today their commercial launch of HSPA at 7.2 Mbps in several cities, making them the first operator in the Western Hemisphere to announce this upgrade. AT&T's HSDPA coverage is being extended from more than 270 major markets today to 350 leading cities by the end of the year, and the network is undergoing upgrades to HSPA as well. AT&T today reports average customer speeds of 600-1400 Kbps for HSDPA mobile broadband service, and this continues to increase with network improvements. |
Source: Cellular News.

Wednesday, April 09, 2008
Click here to see full article
|
Over 450 telecommunications professionals gathered in Dar es Salaam, Tanzania for the opening of East Africa Com, the region's annual event for the telecommunications industry. The conference started with a keynote presentation from Bashar Arafeh, Celtel International's COO for the East Africa region, who was keen to point out that "East African markets, being currently under market average, hold plenty of room for growth."
He explained how Celtel is leveraging its regional presence and international ambitions to improve networks and offer innovative services, such as the pioneering 'one network' regional roaming plan. He highlighted the importance of a strong brand to take full advantage of market opportunities, and explained that the future move to Zain will help make the brand a fully global one rather than a pan-African group.
He was followed by Dietlof Mare, CEO of Vodacom Tanzania, who also described the great opportunities for telecommunications companies in Tanzania, thanks to political stability, high GDP growth (around 7%, higher than in the rest of Africa), and a penetration rate that is still increasing sharply.
On the other hand, he described the challenges faced by large operators in the rollout of their networks: lack of infrastructure, power issues, increasing fuel prices. Despite those challenges, he described what he thought were the key success factors for Vodacom's leadership in the market: building quality networks (including 3G/HSPA and WiMAX in the main cities for corporate custoemrs) and developing services that meet the customers' needs. As an example, he announced the launch of Vodafone's M-Pesa payment service (pioneered in Kenya by Safaricom) at the end of the month in Tanzania.
Many Tanzanians - like most of their neighbours in Kenya, especially in rural areas - have difficulty accessing conventional bank accounts and M-Pesa is seen as a convenient way to send money. Safaricom recently said that in the 11 months since it launched M-Pesa in March 2007, it had handled 9.3 billion Kenya shillings (US$147.9 million).
Vodacom Tanzania is 65%-owned by South Africa's Vodacom with the rest held by private Tanzanian investors. |
Africa's GSM mobile subscriber base is expected to jump by 20% to 316 million between now and the end of the year. GSM Africa, the African arm of world body GSM Association, said at the conference that penetration was expected to top 34% by the end of the year, from 29% at the end of 2007.
The number of subscribers will rise from 263 million to 316 million this year, Vitalis Olunga, Chairman of GSM Africa, said in a presentation at East Africa Com. Olunga said GSM networks were comprised of a bulk of service providers on the continent, with an average of about 140 live networks at the end of 2007.
Click here to see full article
|
Growth in mobile telephony has been swift in Africa, where fixed-line networks have been largely patchy in many countries and subscribers are often subjected to bureaucratic red tape before being connected.
Both speakers from Celtel and Vodacom Tanzania mentioned competition and the resulting price decline as a major challenge in the markets. Mare pointed out that new players dropping prices affect long term profitability and the investment level necessary for future network deployment in a market.
Arafeh, on the other hand, welcomed the entry of two new operators in Uganda. One of them, Warid Telecom, was represented by its CEO Zul Javaid at the conference, who described its launch and future strategy in the market. Other speakers in the first day plenary included representatives of Tanzania's regulator TCRA, MTN Uganda, Ericsson, Huawei, and Vimpelcom |
Source: Cellular News.
Third generation mobile technologies accounted for their highest ever share of net additions in Middle East & Africa in Q4 2007 with 9.8% of the total - up very slightly on the 9.7% registered in Q3 2007. The trend in MEA so far shows that 3G additions in the fourth quarter of the year are generally weaker as a proportion of the total, following the pattern established in Europe. This may be due to the fact that fourth quarter sales tend to be driven by the Christmas market (and to some extent the Ramadan market, as some of the Ramadan period tends to fall in October) which generally involves the sale of lower-value cards and handsets, often as gifts.
% net additions W-CDMA, Q4 04 - Q4 07

Click here to see full article
|
However, after a decline in the proportion of net additions accounted for by 3G between the third and fourth quarters of both 2005 and 2006, the market became sufficiently strong in 2007 to avoid a repeat performance.
In absolute terms 3G customer numbers exceeded 20m in MEA at the end of 2007, with over 12m W-CDMA connections and over 8m CDMA2000 lines. For those who prefer a stricter definition of "3G", EV-DO customers crept over the 1m mark in later December, bringing the total on this basis to around 13.2m. |
The vast majority of customers in MEA use GSM technology, although the percentage of the total base accounted for by GSM slipped below 95% for the first time in four years. At the end of 2003, 2.2pp of the 5pp remainder was accounted for by analogue networks, 2.4pp by CDMA and 0.3pp by iDEN. At the end of 2007, the handful of remaining analogue services contributed just 0.03% of the overall total, iDEN just 0.18% and CDMA 2.1%, whilst the largest part of the remainder was accounted for by W-CDMA with 3.1% of the total.
Bundling this together with GSM, we find that the GSM family maintained a 97.67% share of the market between the third and fourth quarters of 2007, although it lost 0.11pp of share over the 12 months to 31st December due to the fact that the CDMA connection base grew faster, by 56.1% to the GSM family's 41.1%.
Non GSM/W-CDMA Customers, by Technology

Source: Cellular News.
Argentine mobile operator Claro, owned by Mexican giant America Movil (AM), expects to invest USD1 billion within the next three years, reports BNamericas, quoting an interview with AM CEO Daniel Hajj in local paper La Nacion. The executive said the investment will be chiefly geared towards the expansion of the 3G network and new platforms. Claro, until last month known as CTI Movil, expects to obtain additional spectrum to achieve its expansion programme in the country, Hajj said. Rival cellco Movistar Argentina, owned by Spain’s Telefonica, was obliged to return 35MHz of spectrum in the 850MHz band as a condition of the merger of its two local units Movicom and Unifon in 2005. Hajj said Movistar should have returned the frequencies by the end of 2007, and called on the government to launch international bidding once the spectrum becomes available. Claro hopes to obtain the additional allocation to increase its penetration in the Buenos Aires area. In the meantime, the cellco expects to deploy 250 additional base stations this year.
Source: TeleGeography.

Tuesday, April 08, 2008
ABI Research is forecasting that global GSM subscriber growth to slow from a year-on-year rate of over 22% in 2006/07 to 14% in 2008/09, mainly due to the increased migration of subscribers to UMTS 3G technologies. UMTS (including HSDPA) experienced a nearly 83% year-on-year growth rate in 2006/07. ABI Research expects global GSM subscriber numbers to show a negative growth rate starting in 2013, as by then GSM will become less attractive compared to the cheaper 3G services; there will also be losses due to the proliferation of mobile WiMAX and 4G networks.
“Within the GSM subscriber population, EDGE is expected to maintain a high growth rate following increased deployments in emerging markets,” says Asia-Pacific vice president Jake Saunders. “Nonetheless, GSM (including EDGE and GPRS) is still expected to have the highest number of subscribers of all mobile technologies, with a 70% global market share in 2013 (dropping from 78% in 2007.)”
Meanwhile the W-CDMA (including HSDPA and HSPA) global market share is expected to increase from a little over 5% in 2007 to nearly 14% in 2013.
Click here to see full article
|
The CDMAone and iDEN subscriber bases, on the other hand, have been diminishing quickly in the last five years, and by 2010 most subscribers to these technologies will have migrated to either GSM or CDMA2000 networks. CDMA2000 (including EVDO) has not experienced as high growth rates as UMTS.
“CDMA2000’s growth rate is expected to decline,” adds research analyst Hwai Lin Khor, “particularly with the increased talk of CDMA2000 operators adopting LTE in their 4G roadmaps. However, ABI Research expects that CDMA2000 technologies, particularly the 450 MHz implementation, will remain attractive for rural coverage due to their wider network range.” |
Source: Cellular News.

Monday, April 07, 2008
Russia’s largest cellular operator, Mobile TeleSystems (MTS), will report revenues of more than USD8 billion for 2007, up 25% on the 2006 figure. Though full financial statistics have still to be released for 2007, MTS says its annual sales growth beat its own forecasts of around 22%. MTS had 85 million mobile subscribers in Russia and the CIS at the end of 2007, including 57.4 million in its domestic market. Last week MTS was reported to have made a USD1 billion offer to acquire smaller rival SMARTS Group, though the company has still to comment on the reports.
Source: TeleGeography.
Nokia India expects that the country will have 500 million mobile phone users by 2010 - with 60 million of them having mobile video capability and 100 million using mobile music services. Speaking at the Goafest conclave, vice-president and managing director Nokia India, D Shivakumar, salso said that half the subscribers would be accessing the internet via their mobile phone.
He said, “Mobile phones are not just about voice anymore. Services delivered through mobiles would open up a big opportunity for the advertisers in India with a huge untapped potential.”
He broke the market down into three core sections. The top end of the market will be limited to some 50 million customers with mid-range but value oriented customers making up some 150 million subscribers. The third tier, he said is unique to India and would be dominated by low cost basic handsets with minimal functionality.
Source: Cellular News.
According to a Harris Interactive survey, the use of cell phones is increasing and traditional landline telephone coverage is decreasing. In fact, one in five US adults do not have a landline and only 79 percent currently do. One in seven adults now uses only cell phones. Furthermore, while the use of cell phones among younger segments of the population has been widely reported, the technology is becoming increasingly popular among older populations as well. Remarkably, about half of U.S. adults who only use a cell phone are 30 or over. One-third of 18 to 29 year olds only use a cell phone or the Internet for making phone calls.
These are some of the results of a special analysis of four surveys conducted online between October 2007 and January 2008 by Harris Interactive. In total 9,132 adults were surveyed. This data was then weighted where necessary to bring it into line with the total population.
Specifically, the research finds that:
- Almost nine in ten (89%) of adults have a wireless or cell phone. This represents a significant increase from 77 percent in October - December 2006 when The Harris Poll conducted a similar analysis;
- Almost eight in ten (79%) adults say that they have a landline phone. This is down slightly from 81 percent in 2006;
- About one is six (15%) of adults use the Internet, sometimes referred to as VoIP of Voice-Over-Internet-Protocol, to make telephone calls. This is basically unchanged from 16 percent in 2006.
- Three-quarters (75%) of U.S. adults are using multiple approaches to making telephone calls. This is a substantial increase from 67 percent in October - December 2006.
- Fourteen percent (14%) are only using their cell phone (up from 11% in 2006).
- Just 9 percent (down from 18% in 2006) of U.S. adults only use a landline phone.
- Six percent (6%) are only using a cell phone and VoIP.
Click here to see full article
|
The Demographic Profile of "Cell Phone Only" Users:
Consistent with their findings last year, those who use a cell phone as their only telephone service tend to be younger than the general population - in fact, about half (49%) are between the ages of 18 and 29. This percentage has decreased from 2006, when 18 to 29 year olds made up 55 percent of the cell phone only population, as older individuals become somewhat more comfortable with using a cell phone as their only type of telephone service.
Additionally, as compared to the general population, cell phone only users are:
- Less likely to be age 40 or older (29% versus 60% of the general population)
- More likely to have at least some college education (60% versus 53% of the general population)
- More likely to be male (57% versus 48% of the general population)
- More likely to have household income less than $15,000 (16% versus 9% of the general population)
- Less likely to have household income of $75,000 or more (28% versus 37% of the general population)
Changes in the demographic profile of cell phone only users, compared to 2006
The profile of those who use a cell phone as their only telephone service remained quite stable compared to last year. However, there were some minor changes, which are as follows:
- 18 to 29 year olds account for a smaller proportion of this group compared to last year (49%, compared to 55% last year). This does not mean that 18 to 29 year olds are less likely than in 2006 to use a cell phone only. In fact, the incidence of cell phone only usage among 18 to 29 year olds actually increased slightly (32% of 18 to 29 year olds use a cell phone as their only telephone service, compared to 26% last year). It simply means that the cell phone only usage also increased among older individuals, resulting in that group now accounting for a greater proportion of the cell phone only population than it did in 2006;
- Those with household income of $75,000 or more now account for a greater proportion of cell phone only users compared to 2006 (28%, compared to 22% in 2006);
Comparing The Harris Poll to National Health Interview Survey
The Centers for Disease Control recently released the preliminary results from its January to June 2007 National Health Interview Survey. This large, respected survey is conducted in-person continuously throughout the year to collect information on health status, health-related behaviors and health-care utilization. In addition, this survey includes information about household telephones and wireless or cell phone usage.
Even though The Harris Poll was conducted using a different method (online) than the NHIS (in person), the results are statistically similar on many measures. Note that:
- The NHIS found that 13 percent of U.S. adults used only a cell phone. The Harris Poll finds the figure to be a similar 14% percent;
- The NHIS and The Harris Poll found statistically similar findings with regard to the incidence of cell phone only usage among most, but not all, demographic groups.
The two studies diverge in their findings with regard to some groups:
- The Harris Poll found the incidence of cell phone usage among those with college degrees or higher education to be 14 percent, whereas the NHIS found this incidence to be 11 percent;
- The Harris Poll found the incidence of cell phone only usage among Black/Non Hispanic respondents to be 9%, whereas the NHIS found this incidence to be 14 percent;
- The Harris Poll found the incidence of cell phone only usage among students to be 30 percent, whereas the NHIS found this incidence to be 21 percent.
So What?
Those who use a cell phone as their only telephone service account for just 14 percent of the total population of US adults, and this proportion is on the rise. Moreover, this group has distinct demographic characteristics. In particular, 18 to 29 year olds - an important demographic group for many companies - account for about half of those who indicate using cell phones as their only telephone service, reducing the likelihood of reaching this group via traditional telephone surveys. While these young adults continue to be the group most likely to use a cell phone as their only phone, older adults, and those with household income of $75,000 or more, now account for greater proportions of those who use a cell phone only, compared to 2006.
It will be important to continue to monitor the size and demographic make-up of the cell phone only population in order to make knowledgeable choices about the most appropriate mode and sample sources for survey research, particularly when 18 to 29 year olds are a key component.
There are two implications to this research.
First, new technologies are often first adopted by younger segments. However, the rapid adoption rates we are seeing here will likely reshape the entire communications landscape within the next decade. Second, the fact that so many 18 to 29 years are only using cell phones and the Internet has important implications for companies and other organizations that are trying to communicate with this important segment of the population. This also hold true with those who conduct survey research who have relied on traditional methods (i.e., telephone landlines) for reaching this group. The survey research and marketing industries need to recognize that the Internet and cell phones, not landlines, are likely to be the wave of the future for contacting this age group. |
Source: Cellular News.

Friday, April 04, 2008
Taiwanese 3G mobile operator Vibo Telecom yesterday said that it planned to lower its capital spending by 44% this year to focus on further improving its network coverage with the aim of reaching 98% of the population by the end of 2008. The celco plans to spend TWD2 billion (USD66 million) mainly on adding new 3G base stations and upgrading some existing base stations to the HSDPA 3.5G standard. In 2007, Vibo spent TWD3.6 billion on new equipment. The company currently has 4,500 base stations nationwide, and hopes for another 1,000 to be operational by year end. It has about 600,000 subscribers at present and is planning to have more than one million by the end of this year. Company President Chang Feng-hsiung said that Vibo hopes for revenues of TWD6 billion in 2008, which would be a 43% increase on last year's TWD4.19 billion. The company is also considering a new round of share sales to raise funds for operational expenses.
Source: TeleGeography.

Thursday, April 03, 2008
US wireless trade group, the CTIA has announced today that as of December 2007, its industry survey recorded more than 255 million wireless users. This represents a year-over-year increase of more than 22 million subscribers. The industry’s 12-month record for subscriber growth was reached in 2005, when 25.7 million new users came online.
Click here to see full article
|
“Wireless technology has deeply embedded itself into the fabric of our lives; changing the way we interact with the world around us,” said Steve Largent, President and CEO of CTIA-The Wireless Association. “Today more than 84% of America has embraced the wireless revolution, and the new industry survey results clearly show that wireless is the communications tool of choice for consumers. Year after year, the wireless industry continues to evolve, innovate, compete and grow at a rapid pace, and it looks like 2008 is right on track with this impressive trend.” |
The survey also recorded record-breaking six-month wireless service revenues of $71 billion. Wireless data service revenues for the entirety of 2007 rose to more than $23 billion. This represents a 53% increase over 2006, when data revenue was $15.2 billion. Wireless data revenues for the year 2007 amounted to about 17% of all wireless service revenues, and represent money that consumers spend on non-voice services.
According to the survey, text messaging continues to be enormously popular, with more than 48 billion messages reported for the month of December 2007 alone - 1.6 billion messages per day. This represents an increase of 157% over December 2006. Wireless subscribers are also sending more and more pictures and other multi-media messages, with nearly 4 billion MMS messages sent during the second half of 2007 alone, compared with 2.7 billion sent over the course of the entire year in 2006.
Other highlights of the survey include: wireless customers using more than 2 trillion minutes in 2007, up nearly 18% over 2006.
Source: Cellular News.

Tuesday, April 01, 2008
Taiwan’s largest cellular operator by subscribers, Chunghwa Telecom, says it is cutting its 3G tariffs in order to boost take-up of its high speed services. The firm is hoping to see a 50% increase in UMTS customers in 2008 to end the year with 3.3 million subscribers. Cross-network anytime tariffs for 3G customers will fall to as low as TWD0.06 (USD0.001) per second, according to a report from the China Post. Chunghwa is also offering increased maximum bundled minutes and further discounts on 3G handsets.
Source: TeleGeography.
Worldwide mobile advertising is projected to surpass $2.7 billion in 2008, up from $1.7 billion in 2007, but the market has developed slowly and obstacles remain, according to Gartner. Ease of use and relevancy to consumers are two important factors that must be addressed to help build momentum in the mobile advertising market.
Click here to see full article
|
“Innovative developments, such as minimizing the number of keystrokes required to access information, using the phone’s camera to improve the overall user experience and tying content or shopping location relevancy to advertisements will move the market forward,” said Tole Hart, research director at Gartner. “To encourage users to accept advertisements, advertisers must improve the way search results are managed on the handset so that the experience is painless and rewarding to end users.”
“There are a number of players that can benefit from the mobile advertising market moving forward, including brands, merchants, carriers, banks, and bill paying agencies,” said Andrew Frank, research vice president at Gartner. “An important attribute of mobile advertising will be relevancy because the device is very personal to the consumer. All parties win when greater relevancy occurs. The market and consumer will gravitate to content and advertisement messages that are relevant to them.”
The mobile advertising market has generated a lot of hype for a variety of reasons: number of handsets, capabilities of the phone and the major Internet portals entering the market. However, the industry must still overcome several problems to drive the market forward. Some of the impediments to growth include slow adoption of multimedia, lack of consumer acceptance, lack of metric transparency, immaturity of standards, diversity of platforms, form factor issues, cross-media integration priorities and the complexity of the value chain, inventory of content, privacy, education and ease of accessing content.
“Many of these issues will be resolved during the next two years, but the make-or-break question of mobile advertising is: Will customers accept advertisements, and can brands and advertisers drive revenue via mobile advertising?” Mr. Hart said.
While effective targeting can dramatically improve response rates to advertisements, Gartner analysts said this may require existing knowledge of customers' demographics, an opt in to the brand's advertisements, location sensitivity, or contextual relevance to the content delivered.
“Advertising often runs the risk of being perceived as junk mail or a privacy violation, so advertisers must use such targeting techniques with care,” Mr. Frank said. “However, sponsored content has proven successful in other media. There are several companies working on providing mobile content integrated with advertisements. In addition, location has long been thought of as a factor for relevancy, but to date precision has been limited as the capability and the cost of GPS has been too high, along with the low penetration of GPS phones.” |
Despite challenges to the market, the industry is still poised for consistent growth. By the end of 2011 worldwide mobile advertising revenue is forecast to surpass $12.8 billion.
Source: Cellular News.
New market data released by ABI Research shows that about 440 million Wi-Fi chipsets will be shipped over the course of 2008. This represents a tenfold increase over the number shipped in 2003; but over the same five-year period, the revenues they produced have multiplied by only five.
Click here to see full article
|
"The tenfold increase in Wi-Fi chipset shipments since 2003 paired with a fivefold increase in revenues in the same period clearly highlights the falling average selling prices (ASPs) that we have seen as this market further matures," says senior analyst Philip Solis. "Although ASPs got a small boost last year due to the introduction of higher-priced 802.11n chips, in general prices have fallen by about half, even though we’re moving to more complex chipsets that increasingly use OFDM and MIMO technologies for 802.11n."
In 2007, Broadcom was the leading Wi-Fi chipset vendor. The company even widened its market lead over its competitors as it gained market share in the laptop segment. |
The growth areas for this market in coming years will be found where Wi-Fi chips are embedded in more and more device types. Wi-Fi IC vendors should tailor their strategies accordingly. Consumer electronics (home theater equipment, gaming devices, portable media players), mobile handsets and computer peripherals will all see increased rates of Wi-Fi penetration. "While CE products will initially see more Wi-Fi inclusion," Solis continues, "we expect that by 2011 they will be overtaken by mobile handsets. Mobile Internet devices (MIDs) will become increasingly significant as well."
Source: Cellular News.

Monday, March 31, 2008
Brazilian mobile operator Vivo has announced a tripling of its planned investment for 2008 to BRL6.07 billion (USD3.48 billion), up from BRL1.92 billion in 2007. It is not clear, however, if the proposed capital expenditure for the current year includes the BRL1.3 billion acquisition of rival carrier Telemig. Vivo’s CAPEX is considerably higher than the figures announced by rivals TIM Brasil (BRL3.6 billion) and Telecom Americas’ Claro unit (BRL700 million).
Source: TeleGeography.
A novel idea to take voice and data services to the most rural areas could see Vodacom and MTN paid subsidies to do the job. The operators have to promise high-quality services even the poorest people can afford in return for having up to 80% of infrastructure subsidised. But the cost will not hit taxpayers as the cash will come from the Universal Service Fund, to which the operators themselves contribute.
Click here to see full article
|
The plan was mooted by the Universal Service and Access Agency of SA after the failure of efforts to help small black companies take telecoms services to poor, rural areas. CEO James Theledi said the big commercial players were rightly hesitant to tackle some of those areas as they were expensive to reach and had no potential to generate revenue.
Even where mobile operators had made inroads, the services were still expensive, and offered only voice calls rather than data.The agency handed millions of rands in grants to small black companies that won licences to operate in underserviced areas, but many fizzled out. Only one is actually still operating.
They had lacked the cash, training and experience to be successful, Theledi said, while regulatory issues and delays in allocating spectrum also fuelled their failure. The only solution was to offer incentives and subsidies to commercial players, he said.
|
The agency rates 27 areas as underserviced. In one, Umzinyathi in KwaZulu-Natal, 64% of the population has no electricity, 94% no landlines and 69% no cellphones.
Click here to see full article
|
Fresh research will calculate what it will cost to provide full voice and data coverage. "If R50m is required in one area the subsidy could be R35m to R40m," Theledi said. "If 27 areas need R40m each we will say this is the money required from the Universal Service Fund." The subsidies could be launched next year through open tenders, and the company requesting the smallest subsidy and promising the most affordable services would win.
|
Last year, US$32.5 million sat idle in the Universal Service Fund as the Treasury refused to hand it over until the agency submitted sound business plans. The cash comes from an annual levy of 0.2% on revenue generated by each telecoms company.
Source: Balancing Act.
According to a new report from Portio Research, forecasts predict that 2008 will be the year that the worldwide mobile industry becomes a one Trillion US Dollar industry. For an industry to go from zero to USD 1 trillion in just 20 years is a staggering achievement, equal to a CAGR of almost 30 percent sustained for 20 years, an achievement previously unequalled by any other industry at any time in human history.
2007 became the year to see worldwide mobile handset shipments exceed 1 billion for the first time, and as 2008 begins so the world also crosses the highly significant 50 percent mobile penetration point, and the industry enters a year where gross industry revenues are set to reach 1 trillion Dollars. This is truly an exciting time to be in the mobile and wireless industry.
Click here to see full article
|
As mobile voice prices have declined and margins have come under intense pressure, network operators have been forced to look at non-voice services to win new customers and boost margins. A wide variety of value-added non-voice services have emerged, from messaging and mobile music, to email, mobile TV and video downloads, location based services, games, gambling and mobile payment services. |
In 2007, worldwide, non-voice services accounted for 18.9 percent of total mobile services revenues, and this figure looks set to keep growing, reaching more than 25.5 percent by the end of 2012. To put that in context, worldwide consumer spending on non-voice mobile services in 2012 will exceed US$251 Billion - more than a quarter of a trillion Dollars per annum.
Click here to see full article
|
In 2008 the researchers estimate MNOs worldwide will collect total revenues of US$874.3 billion. Interestingly, voice and SMS get little publicity in the mobile world these days. Just take a look at the conference agenda for the annual Mobile World Congress in Barcelona in February 2008. Looking down the list of topics covered in the 4 day conference, all the talk is about mobile TV and video, HSPA, mobile IM, DRM, mobile finance, mobile search, social networking, data pricing and mobile enterprise solutions.
All of these are exciting growth areas and most of these topics offer a great deal of promise for the future. But amid all this excitement, there is barely one mention of voice as a subject, and barely any mention of SMS as an application, yet voice and SMS generate 90 percent of the total service revenues flowing into this industry right now, and it’s predominantly voice and SMS that have built this US$1 trillion business over the last 20 years. |
Portio Research's forecasts show that in 2008, 88.9 percent of total MNO service revenues worldwide will come from voice and SMS, and that figure is likely to remain as high as 85 percent even by the end of 2011. But that still leaves more than US$161 billion from data services in 2008, rising to over US$251 by 2011.
Source: Cellular News.
Ka-ching, ka-ching. European wireless carriers are being told to expect 50 percent of the population to use their mobile handsets to access the broadband Internet by 2012. But most carriers won't be able to handle it alone.
An ongoing report series from Exane BNP Paribas and Arthur D. Little also says wireless service providers "have a job to do" in catching up with consumer expectations regarding mobile broadband, and part of that work will lead to greater fixed-mobile network integration. Carriers will experience huge growth in mobile broadband traffic - as is already seen in some advanced countries like Austria.
To accomplish this, mobile operators will be partnering with fixed-infrastructure providers, with Arthur D. Little and Exane BNP Paribas forecasting that 20 percent of mobile broadband traffic could be carried through fixed networks.
Click here to see full article
|
"Wireless providers can expect to enjoy re-accelerating revenue growth (2.6 percent per year between 2007 and 2012), but the integration of fixed infrastructure into their networks will have a negative impact on their margins," the report says. "Revenue streams from products that converge fixed and mobile broadband will increasingly be the focus of new product development for both mobile operators and fixed broadband providers."
Last year, the authors predicted that "within the next two to three years, Internet players could compete with mobile operators." This year, however, they say telecom providers "are facing the tightening grip of fast-growing global Internet giants on Internet services and on the monetization of online advertising plus the increasing pressure from global hardware manufacturers who also want to develop revenue streams from Internet and content service. As such, operators will struggle with developing revenue streams from Internet services and advertising. The bulk of their revenues and profits will continue to come from connectivity."
"We believe that mobile broadband offers large opportunities for value creation at all levels of the value chain but, while telecom operators have traditionally occupied a prime spot in the value chain, they face fast-moving competition from sophisticated global giants coming from the Internet and hardware worlds," comments Jean-Luc Cyrot of Arthur D. Little's TIME Practice. As such, to create opportunities for growth in an "all-IP" environment, telecom carriers can't avoid collaboration with these global giants.
The report also notes domestic consolidation will continue this year, especially among fixed providers. As a result (and this is important), the number of fixed and mobile network operators in each of the European markets will fall progressively from seven to four - on average. "In particular, sub-scale broadband providers will be under mounting pressure as a result of the move to triple-play, fiber and mobile broadband competition," it adds.
Beyond local market consolidation, a wider-ranging pan-European consolidation could be on the cards. The report outlines two scenarios for the sector: the "Access Specialization" scenario that could benefit small, aggressive providers; and the "Pan-European Consolidation" scenario that has larger operators scooping up the smaller providers. According to Antoine Pradayrol, head of the telecom team at Exane BNP Paribas in London, "It is increasingly clear that larger multi-country operators have an advantage in negotiating with Internet giants and device manufacturers. This could become a very powerful rationale for pan-European consolidation of telecom operators." |
Source: TelecomWeb.
Cubans finally will be allowed to have their own cellphones, under a decree issued today by new Cuban dictator Raoul Castro, who has been busily lifting some of the more onerous restrictions imposed by his older brother.
The move follows permission from Raul for the population, starting next week, to buy PCs, DVD players and other consumer-electronics gear and various appliances. Toasters will be available on the island starting in 2010, for instance, for the first time in more than a decade.
Cuba has had cellular service - both TDMA and GSM - but it has been restricted to companies, foreigners and top government officials. Coverage, outside of Havana and some major cities, is spotty at best and generally nonexistent. At least some Cubans, however, are said to have managed to circumvent the rules, generally by getting non-Cubans or others with the right to a phone to subscribe for them. But the bottom line has been that cellular penetration on the island nation has remained the lowest in the Western Hemisphere as a result of the long-standard ban.
Click here to see full article
|
News of the change of heart appeared as a small item in this morning's issue of the Communist Party newspaper Granma, which reported that telecommunications monopoly Empresa de Telecomunicaciones de Cuba S.A. (ETECSA) - partially funded by Italcom - said it would allow the general public to sign prepaid wireless contracts.
Somewhat amusingly, the Cuban government gave tacit consent to those who had managed to obtain cellphones despite the ban on such ownership. "In the next days, the public will be informed of the procedures for changes of title for Cuban citizens who to date have acquired cell phones indirectly, and the initiation of new contracts for interested Cubans," ETECSA said.
There was, though, one hitch to the ETECSA announcement. Prepaid subscribers will have to hand over so-called "Cuban Convertible Pesos," a form of "hard" currency worth 24 times the regular pesos in which Cuban state employees are paid. Given that the average monthly state salary is 408 pesos, worth a little less than $20 (less than the price of a nice Cohiba, if you can find one), that's not going to leave much left for the average Cuban to buy cellular service for now (however, housing, education, health care, basic food needs and much else is free). ETECSA did, though, hold out hope that, at some indeterminate time in the future, it would start accepting regular pesos for service. |
Source: TelecomWeb.

Friday, March 28, 2008
Sales of mobile data cards, which enable broadband access in laptops via a service provider's mobile data network, are forecast by Infonetics Research to nearly quadruple between 2007 and 2011, when they will reach $2.9 billion.
Click here to see full article
|
According to Infonetics' new report, these mobile data cards could threaten the WiFi hotspot market as HSDPA and EV-DO-based mobile broadband becomes more available, more affordable, and a higher performance choice.
"The mobile data services market is becoming more competitive, as mobile operators try to recoup their investments in 3G networks and drive up flattening ARPU (average revenue per user)," said Richard Webb, directing analyst for WiMAX, WiFi and mobile at Infonetics Research. "Currently, mobile data services are generally too expensive for mass market adoption, but that will change with the increasingly extensive rollout of high speed HSDPA, the launch of new data plans offering increased download limits, and better subsidies for mobile data cards. The iPhone has proven that if the user experience is right, users will take advantage of mobile devices for Internet sessions."
As mobile data plans become more affordable, the report says, consumers will use mobile data cards to enable download of Internet- based content (MP3s, games, video clips) to mobile devices and for transferring user-generated content (photos, video clips, etc.). A small proportion of consumers will use a mobile data plan as their primary means of broadband access. |
Other highlights from the report:
- Worldwide mobile subscribers topped 3 billion in 2007
- Worldwide mobile data subscribers will accelerate dramatically over the next few years, reaching 144 million by 2011
- Worldwide sales of smartphones reached $36.7 billion in 2007
- Sales of mobile broadband routers are forecast to nearly quadruple between 2007 and 2011
- In 2007, Nokia continued its strong lead in the mobile phone market, with 35% of worldwide revenue share, followed by Samsung and Motorola
Source: Cellular News.

Wednesday, March 26, 2008
CEO Marwan Al-Ahmadi has revealed that Zain Saudi Arabia plans to start operations by June of this year, over a network initially covering 53% of the population. Roaming agreements with rivals Saudi Telecom Company (STC) and Mobily will be sought to increase coverage further, although the executive did add that Zain planned to be fully dependent on its own infrastructure within the next three years.
Source: TeleGeography.

Tuesday, March 25, 2008
India's Telecoms Regulatory Authority (TRAI) has reported that a total of 8.49 million telephone connections have been added during February 2008 as compared to 8.74 million connections added in January 2008. The total number of telephone connections reaches 290.11 million at the end of February 2008 as compared to 281.62 million in January 2008. The overall tele-density is 25.31% at the end of February 2008 as against 24.63% in January 2008.
In the wireless segment, 8.53 million subscribers have been added in the month of February 2008 as against 8.77 million subscribers added in the month of January 2008. The total wireless subscribers (GSM, CDMA & WLL(F)) base stood at 250.93 million at the end of February 2008.
Click here to see full article
|
It may also be noted that the TRAI thinks that India is likely to become second largest wireless network in the world after China in the first half of April 2008.
According to CTIA website ( a Association of Wireless operators in US), the current subscriber base of USA is 256 million. US is adding about 2-3 million subscribers in a month where as China is adding around 6-7 million subscribers in a month. India's monthly wireless subscriber addition is highest in the range of 8-9 million a month. Thus the TRAI expects that India's wireless subscriber base during the first half of April 2008 will surpass that of USA and will become second largest wireless network in the world.
Not only this, the total subscriber base (wireless + wireline) of India will also cross 300 million mark in April 2008.
In the wireline segment, the subscriber base has slightly decreased to 39.18 million in the month of February 2008 as against 39.22 million subscribers in January 2008. |
Source: Cellular News.
APA-Accra (Ghana) Ghana's parliament on Wednesday passed a controversial bill that will see mobile phone users pay a tax of one US cent for every minute they call.
The bill, introduced by the ruling New Patriotic Party, was described by a section of Ghanaians as obnoxious and calculated to stifle their ability to communicate freely.
The government explained to parliament that the implementation of the bill will enable it generate more revenue for development and also sustain the National Youth Employment Programme, which is near collapse as a result of inadequate funding.
However, the minority in parliament led by the National Democratic Congress party opposed the bill, saying that not all people in the country used mobile phones and the implementation would mean preventing people from talking more on mobile phones.
Parliament has tasked Ghana's National Communication Authority to ensure that mobile phone operators comply with the new legislation.
Source: Cellular News.
Research firm, IDC says that the telecommunications data services market in emerging Asian countries (defined as Bangladesh, Pakistan, Sri Lanka and Vietnam) is projected to collectively grow at a compound annual growth rate (CAGR) of 36% from 2007-2011. The data segment, which includes mobile data services, fixed line corporate data and Internet access services, grew strongly at 258% year-on-year in 2006, reaching US$952 million.
Click here to see full article
|
Emerging Markets, Data vs Voice

While these four country markets will remain generally voice-centric throughout the forecast period, revenue share of the data segment will improve significantly from 17% in 2006 to over 30% by 2011.
Karen Rondon, Research Manager for IDC’s Philippines Telecommunications Research, said, "Corporate customers and consumers in the emerging Asian countries are highly cost-sensitive, and benefits and returns on investments are measured on a short-to-medium term. Services that require small immediate spending while providing immediate benefits would be most attractive to end-users." |
The mobile data segment from the four countries is anticipated to escalate at 41% CAGR from 2007-2011, driven by expected growth in SMS usage. As more high-speed networks become available, other data revenue, apart from SMS, will rise in significance in the coming years.
Click here to see full article
|
Fixed lines data, on the other hand, will grow at 24% CAGR from 2007-2011. The corporate data landscape will continue to be concentrated on dedicated leased lines throughout the forecast period, although take-up of IP-based services will gradually increase. Meanwhile, favorable government policies in the four countries will help boost IAS (Internet Access Services) take-up in the long term, increasing market awareness and education of the various Internet access services available.
In countries such as Bangladesh, a growing number of citizens who are migrating abroad could potentially drive future adoption. These citizens are becoming more and more exposed to modern telecommunication facilities and, through constant communication with families back home, would aid in encouraging adoption of various telecommunication services, including Internet access. IDC expects XDSL and prepaid dial-up services will be the most preferred Internet services in the emerging Asian country markets. |
Source: Cellular News.
A third GSM network operator has launched was Albania last week. Eagle Mobile, a joint venture between Turkish Calik Holding, Turkish Telecom and the Albanian State has launched with coverage in Tirana and Durres cities, the territory between and country's the only International Airport.
The company says that it now covers about half the country's population, using infrastructure supplied by Huawei and Amdocs.
93 percent of the employees of Eagle Mobile are Albanian, and the company plans to create a field of activity for more then 1000 Albanian people.
The country currently has two mobile operators, Vodafone and AMC. According to figures from the Mobile World, the country ended last September with some 2.2 million subscribers, representing a population penetration level of 61%
Albania is a parliamentary democracy that is transforming its economy into a market-oriented system. The Albanian capital, Tirana, is home to 750,000 of the country's 3.6 million population. As a result of the opening of the country in the post-communist era, Albania is now undergoing a development boom as its telecommunications, transport and utilities infrastructure is being revamped.
Source: Cellular News.
Earlier today, figures released by the Telecom Regulatory Authority of India (TRAI) point to that country becoming the second largest wireless market in the world by the end of April.
More than 8.5 million wireless subscribers were added in February, compared with 8.77 million subs who cut the cord in January. The total wireless subscriber base (GSM, CDMA & WLL[F]) stood at 250.93 million at the end of February.
Currently, China is the world's largest wireless network, and it's adding between 6 million and 7 million subscribers every month. According to CTIA-The Wireless Association, the current U.S. wireless subscriber base is 256 million. The United States is adding between 2 million and 3 million subscribers in a month, while India's monthly wireless subscriber addition is highest, in the range of between 8 million and 9 million a month, TRAI says.
Click here to see full article
|
The subscriber bases (in millions) of China, the United States and India for the last four months are portrayed in the chart below:
|
Country |
Nov-07 |
Dec-07 |
Jan-08 |
Feb-08 |
|
China |
521.36 |
527.97 |
534.58 |
540.50 (estimated) |
|
United States |
251.94 |
255.32 |
257.45 |
260.50 (estimated) |
|
India |
225.46 |
233.63 |
242.40 |
250.93 (estimated) |
On the wireline side, a total of 8.49 million telephone connections were added last month, compared with 8.74 million connections added in January. The total number of telephone connections reached 290.11 million at the end of February compared with 281.62 million in January. The overall tele-density was set at 25.31 percent at the end of February, compared with 24.63 percent in January.
On the broadband side (=256 Kbps download), the total broadband subscriber base in India hit 3.47 million at the end of February, compared with 3.24 million at the end of January. |
Source: Telecom Web.
The number of mobile connections in Pakistan squeezed past the 80m barrier in February, reaching 80.001m at the end of the month. In Issue 105 of The Mobile World Briefing, we remarked that growth seemed to be slowing in Pakistan and the latest result confirms this impression: the figure for monthly net additions (1.26m) was the lowest since November 2005.
February 2008's figure was almost half that of February 2007, when there were 2.20m new connections. Moreover, February represented the second consecutive month with fewer than 2m new connections, the first such occurrence in two years.
Click here to see full article
|
Monthly Net Additions (000), July 05 - Feb 08

Market leader Mobilink, Orascom's Pakistani subsidiary, finished February with 31.06m customers. Although it remained over 14m customers ahead of its nearest rival Pakistan Telecom Mobile (U-Fone), its 0.4pp decline in market share to 38.8% at the end of February made it 24 straight months of market share loss. U-Fone gained 0.2pp in the month to hit 21.1% with 16.85m customers, but Telenor was up 0.5pp to 20.0% and narrowed the deficit in real terms to less than 1m. Telenor's figure of 665k monthly net additions was the best in the market for the second successive month, and it took its total subscriber base to 16.02m.
Fourth-placed Warid also put in a good performance in February with 406k new connections taking its total to 13.61m, but this was not enough to gain any market share and it remained flat on 17.0%.
Meanwhile, China Mobile subsidiary Paktel followed three consecutive months of double-digit proportionate growth with an 8.9% decline, shedding 210k connections to hit 2.15m. Clearly the extraordinary growth witnessed in the period between October 07 and January 08 - during which it more than doubled its subscriber base - was unsustainable. |
Source: Cellular News.

Thursday, March 20, 2008
Pan-African cellular operator MTN has reported a 42% jump in revenues for 2007 to ZAR73.1 billion (USD10.3 billion). Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 42% to ZAR31.8 billion, though increased finance charges and a higher tax charge saw net profits fall from ZAR12.1 billion in 2006 to ZAR11.9 billion last year. The MTN group recorded 61.4 million subscribers at 31 December 2007, a 53% increase from 40.2 million at end-December 2006. The total includes 14.8 million customers in its domestic market of South Africa and 16.5 million in Nigeria. Average revenues per user have declined across most of MTN’s operations following increases in lower usage pre-paid customer numbers.
Source: TeleGeography.
China Mobile has announced that its net profit rose 31.9% in 2007 to RMB87.06 billion (USD12.31 billion) on the back of strong subscriber growth and improved airtime usage. China's largest mobile operator said turnover in the twelve months ended 31 December 2007 grew 20.9% to RMB356.96 billion from RMB295.36 billion a year earlier. Earnings before interest, tax, depreciation and amortization (EBITDA) rose 21.6% to RMB194 billion, while earnings per share rose 31% to RMB4.35.
Operationally, the world’s largest wireless network operator added 68.11 million net new subscribers during the year to take its total to 369.34 million. Monthly average minutes of use per customer was 455 minutes, up from an average of 381 in 2006, while monthly ARPU was steady at RMB89.
Source: TeleGeography.
BNamericas, citing a report from the regulator Conatel, reports that the number of wireless subscribers in Venezuela at the end of 2007 stood at 23.8 million, up from 18.8 million twelve months previously. Mobile penetration correspondingly jumped from 68.9% to 86.8%. CANTV unit Movilnet remained the largest operator by subscribers, with a 39.9% market share at the end of the fourth quarter, down from 40.7% quarter-on-quarter. In second place was Telefonica-owned Movistar with 39.6%, down from 40.5%, while the third largest cellco, Digitel, boosted its share of the market to 20.5% from 18.8%. In the fixed telephony segment the country ended 2007 with 5.1million subscribers – giving a penetration rate of 18.5% – compared with 4.2 million twelve months before. Broadband connections meanwhile totalled 858,000 at the end of 2007 compared with 759,856 at end-2006.
Source: TeleGeography.
The number of active mobile phone lines in Brazil reached 124.1 million by 29 February 2008, up 1.02% on the previous month, and 22.7% higher than the figure recorded at the end of February 2007. According to preliminary data published by the regulator Anatel, more than 1.26 million cell phones were added in February this year.
Source: TeleGeography.

Wednesday, March 19, 2008
SAO PAULO -(Dow Jones)- The number of cellphones in circulation in Brazil totaled 124.1 million at the end of February, up 1% from January and 22.7% higher than the same month one year before, according to preliminary figures released late Monday by telecommunications regulator Anatel.
"In our view, the strong growth we've seen so far in 2008 is due at least in part to the practice of selling multiple subscriber identity module, or SIM, cards per subscriber, which artificially inflates the number of wireless subscribers and net additions," Morgan Stanley said in a research report. "As a result, we believe revenues and earnings before interest, taxes, depreciation and amortization, or Ebitda, growth will not follow subscriber growth," it added.
Brazil's main operator are Vivo Participacoes, which is jointly owned by Spain's Telefonica and Portugal Telecom; TIM Participacoes, the local unit of Telecom Italia and Claro, the local unit of Mexico's America Movil.
Source: Cellular News.

Tuesday, March 18, 2008
Kuwait’s National Mobile Telecommunications Co (Wataniya) has reported a 51.5% rise in profit for 2007 at KWD80.7 million (USD282.6 million) on revenues of KWD407.6 million, up 26% year-on-year. The firm, which is a subsidiary of Qatar Telecom, is predicting further rises in profits and revenues in 2008. 52% of sales came from Wataniya’s domestic market in 2007, with the remainder from its operations in Tunisia, Saudi Arabia, Algeria and the Maldives. Wataniya had 9.54 million subscribers across its mobile operations at the end of December.
Source: TeleGeography.
Indonesian fixed wireless service provider Bakrie Telecom ended 2007 with 3.82 million subscribers, up 147% from 1.55 million a year earlier, reports Antara News. The gains helped drive a 112% rise in revenue to IDR1.29 trillion (USD140.7 million), up from IDR607.07 billion the previous year. Net income soared 98% from IDR71.7 billion to IDR144.3 billion as Bakrie expanded its network service to 17 more cities, bringing the number of cities it covers to 34. It hopes to have signed up 14 million customers by 2011 and plans to deploy a further 1,000 base transceiver stations this year alone. The operator has set aside 63% of this year’s allocated CAPEX of USD232 million on network expansion and says it will spend approximately USD600 million until 2010 on improving its networks and services.
Source: TeleGeography.

Monday, March 17, 2008
Viet Nam News, a national English daily, has revealed Viettel has slashed off-peak call charges by 75% as it seeks to ignite demand and attract more users. The military-run cellco said the new charges were down to VND500 (USD0.03) a minute for calls between Viettel subscribers and VND1,000 for calls to other networks – the lowest rates in a highly competitive market. Managing director Tong Viet Trung said that the company was able to make such drastic price cuts because its network and services were running at optimal levels, enabling them to reduce operating costs. ‘We hope promotion will increase the number of Viettel subscribers from 15 million to 22 million by year end,’ he added. According to TeleGeography’s GlobalComms database Viettel is the country’s largest wireless operator by subscribers. It plans to install an additional 4,000 base transmission stations in 2008, bringing the total number to 10,000.
Source: TeleGeography.
Indonesia’s leading telecoms operator by subscribers and revenues PT Telekomunikasi Indonesia (Telkom) says the number of people signed up to its fixed wireless access (FWA) service ‘Flexi’ will climb to ten million users this year, up from 6.4 million at the end of 2007, leapfrogging its traditional copper-wire based service which had 8.7 million users at the same date. Telkom’s fixed line subscriber base has been climbing relatively slowly for a number of years, and is now being overtaken by wireless alternatives which are cheaper and quicker to deploy. The incumbent also owns a 65% stake in Indonesia's biggest cellular operator by subscribers Telkomsel, which had 47.9 million clients at the end of 2007, up 35% year-on-year.
The limited mobility Flexi service has become increasingly popular on the back of a number of high-profile marketing initiatives, said Telkom vice president for public and marketing communication, Eddy Kurnia, as quoted by Thomson Financial. The operator’s latest offer, ‘5 Get 5’, targets users in Sumatra, Central Java and Yogyakarta, Kalimantan and East Indonesia, allowing them to send a minimum of five SMS and get a bonus of five for free.
Source: TeleGeography.

Friday, March 14, 2008
The Asia-Pacific mobile video services market is expected to see huge growth potential as mobile operators continue to spend millions on developing innovative services and content to arrest the declining average revenue per user (ARPU). Mobile TV, essentially an extension of mobile video services, in particular is seen as a new killer application that could potentially bring alternative source of revenues for carriers.
New analysis from Frost & Sullivan finds that the mobile video services market - covering 12 Asia-Pacific countries ex-Japan - earned revenues of over US$440 million in 2007 and estimates this to reach US$1.88 billion by end-2013, at a CAGR (compound annual growth rate) of 27.4 percent (2007-2013).
While South Korea (which accounted for 87 percent or US$383.7 million of the revenues in 2007) will remain as the biggest market for mobile video in Asia-Pacific (outside of Japan), other potential leading markets include Singapore, China, Hong Kong, Taiwan, Australia and New Zealand.
Click here to see full article
|
"Amid the growing interest in triple-play and mobile advertising, mobile TV has been the buzzword in the Asia-Pacific mobile and wireless market," notes Frost & Sullivan industry analyst Shaker Amin. "The recent spate of trials and the commercial launches of broadcast networks in Japan and South Korea indicate that the mobile TV fever could well catch on throughout the Asia-Pacific region."
Two of the regions most mature mobile markets, South Korea and Japan, have introduced mobile TV broadcast services (ahead of the other Asia-Pacific countries) built on homegrown standards. South Korea spearheaded the DMB (Digital Multimedia Broadcasting) standards, launching S-DMB (Satellite Digital Multimedia Broadcasting) and T-DMB (Terrestrial Digital Multimedia Broadcasting) in 2005. While Japan launched ISDBT (Integrated Services Digital Broadcasting - Terrestrial), or 1-seg, in 2006.
South Korea is expected to hit mass adoption in mobile video services between 2008 and 2010, when the rest of Asia-Pacific joins the commercial broadcast TV service bandwagon.
Other markets that have commercially launched DVB-H mobile TV broadcast services include Vietnam's VMC (Vietnam Multimedia Corporation) in September 2006, and Philippines' Smart Communications in February 2007.
In the rest of the Asia-Pacific markets, digital video broadcast-handheld (DVB-H) and MediaFLO remain most commonly selected for trials. In China, T-DMB (a different version from South Korea's) and CMMB (China Multimedia Mobile Broadcasting), both homegrown standards, are being deliberated for the country's national mobile TV broadcast standard.
Pricing however remains the biggest hurdle to a wider uptake of mobile video and TV services. In 2007, the total mobile ARPU in Asia-Pacific stood at US$16.8 (including Japan), largely due to the region's lower disposal income.
Furthermore, mobile TV broadcast service (multicast) requires compatible handsets, which are not widely available throughout Asia-Pacific as yet. In markets where an impending launch is expected, mobile handset manufacturers are still in the midst of finalizing handset requirements with the major mobile operators.
"In most markets, mobile video service becomes especially expensive when a user exceeds the stipulated amount of data in a 'flat-rate' plan," says Amin. "Considering that this is a major restraint to greater uptake, mobile operators could follow the example of South Korean operators who have implemented an 'eat-all-you-can' flat-rate for data charges to encourage adoption." |
Source: Cellular News.

Thursday, March 13, 2008
A new report from Juniper Research has found that the combination of greater 3G adoption and a marked increase in rich media, made-for-mobile content will drive mobile entertainment revenues to $47.5 billion by 2010.
However, the Juniper report cautions that entertainment service adoption will be retarded unless improvements are made in areas such as the user interface, network coverage and the excessive cost of data services. It also notes that in some mobile areas -- such as gambling, adult content and some social networking services -- national and international legislation could either adversely impact on growth, or in some cases prevent any service deployment.
Click here to see full article
|
According to report author Dr Windsor Holden, "Traditionally, services such as ringtones and wallpapers accounted for the bulk of mobile entertainment services. However, usage patterns are changing rapidly with the increasing availability of more sophisticated and attractive content such as streamed and broadcast video, social networking services and multiplayer games, which have been designed specifically for the mobile environment."
Additionally the Juniper report finds that the China and Far East region currently provides the largest market for Mobile Entertainment services and contributes around 41% of global revenues. Despite rapid growth in developing markets, the Asia Pacific region is forecast to retain its leadership through to 2012, when it will still contribute 33% of global revenues. |
Source: Cellular News.
Orange France announced yesterday the launch of a 3.5G HSDPA-based service for corporate customers in Lyon. The new product promises to double downlink connection speeds for users from 3.6Mbps up to a maximum 7.2Mbps. The company says deployment of faster HSDPA in other major towns and cities across France should be underway by the summer. The operator is hoping to reach 71% of the population with 3.5G coverage by the end of 2008. It also says it is looking to achieve 99% population coverage with EDGE and to have deployed 30,000 Orange Wi-Fi hotspots. Orange is offering the new package as part of its Business Everywhere solutions. It is launching with three mobile handsets compatible with 3G+ (HSDPA at 7.2Mbps and HSUPA) which can also be adapted to laptop computers using USB key (Huawei E270), PCMCIA Card (Option GX 301) and PC Express Card (Huawei E870).
Source: TeleGeography.

Tuesday, March 11, 2008
According to MIC (Market Intelligence Center), an ICT industry research institute based in Taipei, global mobile phone subscribers hit 3.1 billion in 2007, thanks mainly to the continuing increase of prepaid subscribers with double SIM cards and corporate clients in the US and European markets. With the global mobile phone penetration rate reaching approximately half of the global population, growth momentum of global subscribers is expected to slow down after 2008.
The CAGR (Compound Annual Growth Rate) of global mobile phone subscribers is expected to reach 7.9% during the period 2007-2012, boosting the number of global mobile phone subscribers to 4.5 billion in 2012, with penetration rate hitting 64.7%, up from 46.8% in 2007.
First-generation analog mobile phone systems will be shut down entirely by the end of 2008. TDMA system now prevailing in the Americas is switching to GSM or WCDMA system, as some mobile operators such as AT&T Mobility have implemented different roaming charges.
Click here to see full article
|
Along with the gradual maturity of WCDMA infrastructure and the rollout of "3G for All" promotional programs in major countries, growth of global GSM/GPRS/EDGE system subscribers is expected to slow down gradually, according to MIC Industry Analyst Eddie Tsai. Their number did grow further in 2007, thanks to emerging market demand. Mr. Tsai stated that WCDMA/HSDPA system will take over converted subscribers of GSM/GPRS/EDGE, boosting its market share to 24.7% in 2012 from 6.7% in 2007. 154 3.5G HSDPA commercial networks have been installed in 71 countries worldwide, further attracting subscribers with its mobile broadband advantage.
As mobile operators have yet to fully embrace the 3.9G UMB (Ultra Mobile Broadband) standard, CDMA2000 1x EV-DO subscribers are still expected to score a 31.9% CAGR during the period 2007-2012. However, global CDMA 2000 1x EV-DO subscribers will start to decline from 2009, due to the fact that Australian telecom operators Telstra and Hutchison decided to abandon CDMA and switch to WCDMA for cost concerns. Consequently, global CDMA subscribers are expected to reach 492 million in 2012, with a 10.9% market share.
After LTE (Long Term Evolution) was selected by the GSM Association as the next-generation mobile communications standard, major mobile operators NTT DoCoMo, Verizon Wireless, and Vodafone decided to embrace LTE, with Qualcomm's UMB lagging far behind. Apparently, the GSM system - including GSM, GPRS, EDGE, WCDMA, HSPA - has got an upper hand over UMB in the market. LTE is expected to enter commercialization in 2011. The CDMA system, including CDMA/EV-DO/UMB, will be limited due to global roaming problems. |
Source: Cellular News.

Monday, March 10, 2008
Figures from the Bangladesh Telecommunication Regulatory Commisssion (BTRC) show that the country had 36.42 million mobile subscribers at the end of January 2008, an increase of more than two million in just one month. GrameenPhone led the way with a total of 16.88 million mobile customers, followed by Sheba Telecom (Bangalink) with 7.45 million and TMIB (Aktel) with 7.28 million subscribers. Bringing up the rear, Warid Telecom ended January with 2.37 million, PBTL (Citycell) with 1.45 million, and Teletalk with one million customers.
Source: TeleGeography.
Bharti Airtel plans to use the expertise of Singapore Telecommunications (Singtel) to roll out third generation services in Sri Lanka, The Economic Times reports, quoting the telecom major's president of mobile services, Sanjay Kapoor. The cellco, which is 30%-owned by SingTel, hopes to launch 2G and 3G mobile services in the country by September. Last year, Bharti Airtel secured a licence to become Sri Lanka's fifth GSM-based service provider.
Source: TeleGeography.
Hong Kong-based mobile operator SmarTone has reported that its fiscal first-half net income rose more than threefold to HKD161 million (USD21 million) after customers increased spending on high speed mobile data services. In the six months to end-December 2007 mobile service revenue increased by 10% year-on-year to HKD1.707 billion and EBITDA registered 26% growth to HKD551 million. The 3.5G operator’s data contribution to total turnover climbed to 22.1% compared to 17.1% in the same period of the previous year. Revenue from multimedia services accounted for two-thirds of total data turnover. Blended ARPU in the six months was up 7% at HKD238, while post-paid ARPU rose 11% to HKD283; the post-paid churn rate improved slightly to 2.1% in December 2007. SmarTone’s customer base reached 1.108 million at the end of December, up from 1.077 million at the end of June, following a dip in the total from 1.093 million at end-December 2006. However the company reported that its 3G/3.5G customer base continues to expand and currently accounts for 40% of post-paid users, up from 30% last June. It added that CAPEX in fiscal 2007/08 is likely to increase by 15% year-on-year to HKD450 million as it focuses on enhancements to its GSM/W-CDMA/HSPA network.
Source: TeleGeography.

Thursday, March 06, 2008
Thailand's four main mobile network operators, AIS, DTAC, True Move and Hutch has jointly announced plans to offer a special tariff to low-income people which will be managed by the government's Commerce Ministry.Thana Thienachariya, chief commercial officer of DTAC, told the Bangkok Post that the cards would feature a single tariff plan targeting low-income customers. The tariff will be known as "Blue Flag", which corresponds to other government subsidy schemes which are also known by blue flag names.
However, Mr Thana said the plan would depend heavily on market leader Advanced Info Service (AIS) as it would result in additional costs for smaller operators such as True Move and Hutch, who already faced operating losses.According to figures from the Mobile World database, the country's largest operator, AIS ended last September with some 23.2 million customers, followed by DTAC with 14.9 million, True Move (11.2 million) and Hutch with just 884,000.
Source: Cellular News.
Orange and Tigo Senegal added 688,725 new users in the fourth quarter of 2007 to boost the country mobile total to 4.123 million at the end of the year. According to the country’s telecoms regulator Agence de Regulation des Telecoms et Postes (ARTP), cellular penetration reached 38.97% by 31 December 2007, up from 28.19% the previous year. Orange Sonatel, part of the Paris-based Orange group, had 3.004 million users at the end of December 2007, up from 2.443 million in September. Meanwhile, Tigo had 1.118 million clients, from 991,631 three months earlier. An overwhelming 99.17% of all users are on pre-paid services, the regulator said.
Source: Balancing Act.
Safaricom has completed a test run for an HSDPA service that it says will enable subscribers access the Internet faster. HSDPA will be used to deliver the service that will include mobile video conferencing and video phone.
To get connected to the service a subscriber will require a special 3G enabled SIM card plugged into a computer modem. Safaricom chief executive officer, Michael Joseph, said the service would increase access to high speed Internet in the country.
Initially, subscribers will be able to access their data at a speed of 3.6 megabytes per second but this, he said, will be upgraded to 7.2 megabytes per second. Dubbed 'Bambanet,' the service will be available on both prepaid and post paid basis.Through the post-paid system, a subscriber will have to pay Sh5,999 for the modem and a special 3G SIM card, and sign a contract of two years. There will also be a monthly access fee of Sh1, 999 for 700 megabytes and a subscriber will pay a charge of Sh12.60 per megabyte.
On the prepaid mode, a subscriber will have to pay Sh12,500 for the 700 megabytes, receive free 700 megabytes for not more than a month, and pay Sh12.60. The costs could reduce when the company starts using fibre optic. Safaricom has spent US$20 million to roll out the service. So far it has built 75 third generation sites within Nairobi. The company intends to roll out the service first in Nairobi, followed by Mombasa by April then Kisumu.
(Source: Business Daily)
Source: Balancing Act.
As mobile telephone subscribers search for cheaper and affordable call tariffs, scores of people in the eastern province of Rwanda have subscribed to Vodacom Tanzania.
The strong signals the company has and the free airtime the telecom company is offering to all its subscribers has lured some Rwandans near the Tanzania border to subscribe to Vodacom, abandoning their MTN lines. Vodacom has also lowered the calling rates to other networks to give its clients more freedom to talk, according to Kabayija, a 'Vodacom agent' in Kayonza district. Rwandans in districts of Nyagatare, Gatsibo, Kayonza and Rwamagana can now call for four minutes freely. Subscribers on pay standard spend Tzs200 (Frw93)-whereas MTN Rwandacell charges Frw100.
Prices of smuggled Vodacom sim packs have also soared from Frw1,000 to Frw5,000. (about Tzs10,000) There are claims that MTN, with the largest coverage in eastern province is affected negativly, as sales of its products have dropped. "I no longer buy MTN airtime vouchers. Sim pack agents say sales have drastically dropped," a resident of Kabarole who was using a Vodacom line claimed." But The New Times was not able get comment from MTN officials as some could not answer their phones. However, a source close to MTN Rwanda management say Vodacom and MTN are about to enter a roaming deal, where subscribers on the two networks will not have to switch sim cards. In Kayonza and Rwamagana towns, dealers of Vodacom products were openly luring more Rwandans to get connected to the Tanzanian network. An official in Rwandatel said his company 'is not worried about the competition.'
(Source: The New Times)
Source: Balancing Act.
The total number of 4G subscribers worldwide, including both LTE and WiMAX, is expected to exceed 90 million in 2013, but a number of milestones must be passed en route, according to a new forecast from ABI Research. At the end of 4Q 2007, says the firm, there were nearly 3.4 billion mobile subscribers worldwide, with 2.7 billion on GSM/EDGE/GPRS networks.
Click here to see full article
|
Worldwide WCDMA subscriber numbers hit 180 million in 4Q 2007. ABI Research expects migration to HSPA+ to begin in early 2010, and migration to LTE will commence by the middle of the same year. Vice president Asia-Pacific Jake Saunders comments, "We forecast the total number of WCDMA subscribers (including HSPA) to approach 720 million in 2013."
Research analyst Hwai Lin Khor adds, "Some operators may not be ready to move on to LTE, as the peak data rates of 100 Mbps downlink and 50 Mbps uplink are achievable only with a 20 MHz spectrum band. That is a luxury that most operators may not have, and many may be content with the capabilities of HSPA+ or settle for suboptimal LTE data rates with whatever they have at the time."
"While the long-term roadmap for CDMA2000, especially in relation to UMB, looks more uncertain, CDMA operators are taking advantage of current upgrade possibilities," notes Saunders. Many have upgraded portions of their networks to EV-DO Rev A during 2007 while new CDMA entrants start with Rev A. ABI Research expects the total number of CDMA2000 subscribers (including 1x and various versions of EV-DO) to approach 800 million by the end of 2013. |
Source: Cellular News.
Turkey’s largest mobile operator by subscribers Turkcell has reported full year 2007 net profit that rose by 54% year-on-year to USD1.35 billion, as consolidated revenues climbed 35% to USD6.3 billion. The GSM provider’s annual EBITDA reached USD2.6 billion, up 44.3% on its 2006 figure. Turkcell’s group subscriber base grew by 19.5% on an annual basis to 47.1 million (35.4 million of them in Turkey) as of 31 December 2007, with domestic annualised monthly ARPU rising by 18% year-on-year to USD14.3 (USD12.1), and average monthly minutes of usage (MOU) amongst Turkish subscribers increasing by 9% to 76.3 minutes (70.3). Turkcell’s Ukrainian subsidiary Astelit’s revenues increased by 191% in 2007 to USD256 million (USD88 million). Turkcell also owns stakes in four other GSM operators in partnership with TeliaSonera via their shared joint venture Fintur International. Fintur majority-owns market leading cellcos in Georgia, Azerbaijan and Kazakhstan (Geocell, Azercell and GSMK respectively), plus the second largest operator in Moldova, Moldcell.
Source: TeleGeography.
Brazilian telecoms operator Tele Norte Leste Participacoes, which trades as Oi, has reported a 49% year-on-year rise in net income for the three months ended 31 December, to BRL911.5 million (USD544.5 million) from BRL613.3 million a year earlier, the company said in a statement.
Click here to see full article
|
Revenues rose 0.9% y-o-y to BRL4.48 billion, while financing costs fell 74% to BRL65 million and net debt dropped to BRL2.68 billion. Oi said it used cash to cut debt by 45% while low interest rates also helped cut borrowing costs. Tele Norte Leste is understood to be readying a BRL5.2 billion bid for rival telco, and the country’s third largest operator, Brasil Telecom. If successful, Oi will create an enlarged entity with around two-thirds of the country’s fixed line base – helping it to compete with rival telcos controlled separately by Telefonica of Spain and Mexico’s billionaire entrepreneur Carlos Slim.
In 2008 Oi intends to invest BRL4 billion (excluding acquisitions) to expand and upgrade its fixed line and mobile networks. At least one-third of the money set aside will be used to enable Oi to launch mobile services in Sao Paulo and to upgrade its existing wireless infrastructure to provide video and high speed data downloads. A spokesperson for the firm said: ‘We will start our 2G and 3G operations in Sao Paulo by July. We already offer corporate voice and data solutions in this area but we don't offer mobility yet. We firmly intend to become the number one player in the Sao Paulo mobile telephony market thanks to our powerful convergence of services and to all the innovative products we already offer in other states’. |
At the end of 2007 Oi counted 14.2 million main lines in service, down 1.2% year-on-year, while its broadband user base climbed 35% to 1.52 million. The operator’s mobile arm recorded 16 million subscribers by the start of 2008, a 22% increase on the previous year. Oi hopes to increase its mobile base to 18 million users by end-2008 and hopes to sign up roughly 600,000 high speed internet customers to end the year with 2.1 million. The landline base is expected to fall to 14 million by the year end.
Source: TeleGeography.

Tuesday, March 04, 2008
Senegal’s two incumbent mobile operators - Orange Senegal (formerly Sonatel Mobiles/Alize) and Tigo Senegal (formerly SENTELgsm) - collectively added 688,725 new users in the fourth quarter of 2007 to boost the country mobile total to 4.123 million at the end of the year. According to the country’s telecoms regulator Agence de Regulation des Telecoms et Postes (ARTP), cellular penetration reached 38.97% by 31 December 2007, up from 28.19% the previous year. Orange Sonatel, part of the Paris-based Orange group, had 3.004 million users at the end of December 2007, up from 2.443 million in September. Meanwhile, Tigo had 1.118 million clients, from 991,631 three months earlier. An overwhelming 99.17% of all users are on pre-paid services, the regulator said.
In the fixed line segment, ARTP said the number of lines in service dipped from 282,573 to 269,088 in 2007, a teledensity of less than three lines per 100 of population. Residential lines accounted for 69.1% of the total, while business connections made up 24.9% and public payphones 6%. The internet market recorded 39,113 subscriptions at the end of the year of which 97% were ADSL lines and 3% dial-up.
Source: TeleGeography.

Thursday, February 28, 2008
America Movil's 2008 mission: Bring next-generation, 3G mobile phone services to much of Latin America.
Why the 3G push from the region's biggest wireless firm? America Movil's AMX best years of subscriber growth are likely behind it. In 2008, America Movil forecasts that it'll add about 20.5 million net new subscribers, down 28% from last year's 28.6 million.But as subscriber growth wanes, America Movil expects to boost revenue and profit by selling more 3G services.
Click here to see full article
|
"Latin America's mobile operators are running out of new people to sell to, but data services -- especially from 3G launches -- will continue to propel top-line growth and handset sales," said analyst Wally Swain of the Yankee Group, a research firm.
America Movil will face competition. Other wireless firms in Latin America, including Spain's Telefonica TEF and Luxembourg-based Millicom International Cellular MICC, are upgrading to 3G networks in several countries, analysts say.
America Movil launched 3G services in Brazil and Argentina in late 2007, and in Mexico just this month.
It's aiming to upgrade wireless networks to 3G in five or so more countries this year. Its 3G services will be available mainly in big cities.
The carrier plans to sell a wide range of Internet, music and video services over 3G networks. On Feb. 12, America Movil announced a deal to provide YouTube's video clips to customers with 3G phones.
"3G will bring a real broadband Internet experience to mobile," Swain said. "It's a good way to keep business and high-end users happy."
America Movil says it will spend $4 billion on network upgrades in 2008, about the same as last year. The 3G investment will pay off, according to Carlos Garcia Moreno, America Movil's chief financial officer.
"We feel that people are going to spend a little bit more on data (services)," he said on America Movil's Feb. 6 earnings conference call with analysts.
Besides cell phone customers, America Movil will sell 3G services to laptop computer users.
That's a good strategy, says Pali Research analyst Walter Piecyk, because much of Latin America still lacks high-speed Internet connections via landline hook-ups.
"It's not about bringing iPhones (and other high-end cell phones) to Latin America," Piecyk said. "It's all about 3G data cards (for laptops). It's about the people who don't have broadband access in homes."
Based in Mexico, America Movil ended 2007 with 153.4 million wireless customers. Over the past five years, improving Latin American economies upped consumer incomes, making wireless phones more affordable. That helped drive America Movil's U.S. stock, which has risen for most of the past six years.
But wireless penetration is now high in many Latin American countries. In Argentina about 96% of the population uses a cell phone, says the Yankee Group. In Chile it's about 86%.
Wireless penetration is still below 65% in Brazil. It's a hotly contested market.
Telefonica and Portugal Telecom co-own Vivo, Brazil's biggest wireless firm. America Movil beat analyst forecasts in 2007 by adding 6.8 million customers. It ended the year with 30.2 million customers in Brazil, up 27%.
In 2007, America Movil's profit rose 32% to $5.4 billion. Company executives have warned that the U.S. economy's slowdown could slow Latin America's growth in 2008, with wireless services getting pinched.
America Movil still sees strong wireless demand in Colombia, where penetration is below 75%, and in Peru, where less than half the population has cell phones.
A key market is Mexico, which has 60% wireless penetration, and where America Movil leads with 50 million subscribers.
America Movil faces tough competition in Mexico from Telefonica, analysts say. And Mexico's regulators might open up the wireless market to new entrants.
"In more mature markets and regions, America Movil will have to explore new ways of generating revenue growth," said Raymond Yu, an analyst at market research firm Ovum.
He says demand for 3G services is still iffy.
Analysts say it's unclear if America Movil is interested in expanding outside of Latin America. It tried to buy a stake in Europe's Telecom Italia TIA last year.
America Movil's U.S. unit, TracFone, added 1.6 million customers in 2007, ending the year with 9.5 million. TracFone leases network capacity from AT&T T . America Movil is controlled by billionaire Carlos Slim.
Slim is a frugal owner, says Piecyk. America Movil waited until prices for 3G network equipment and phones fell before deciding to ramp up services, he says.
Source: Cellular News. |
The CDMA Development Group (CDG) has announced that CDMA subscribers grew to more than 431 million, and CDMA2000 grew to more than 417 million during last year. The Asia-Pacific (APAC) region added the most net subscribers, and Europe, Middle East and Africa (EMEA) grew the fastest by percentage.
CDMA2000 subscribership among the 250 networks worldwide grew 16% in 2007, including strong sales figures for broadband EV-DO devices and services. The EV-DO subscriber base grew from 55 million to 90.5 million in 2007, achieving a compound annual growth rate of more than 64%.
APAC and North America claimed the majority of customers, with 49% and 32% of the global market, respectively. APAC added 6.2 million in Q4 2007 to reach 211 million subscribers, making it the largest net growth region in the world. North America alone has more than 137 million CDMA subscribers. APAC and EMEA saw the greatest year-over-year growth, with 24% and 60%, respectively. Other highly-concentrated regions for CDMA are India with more than 61 million subscribers, China with 42 million, and Indonesia with 14 million. In addition, more and more operators in emerging countries are reaching the one-million CDMA subscriber mark. For example, Angola's Movicel, Morocco's WANA, Starcomms of Nigeria, PTCL in Pakistan, Sudatel and Yemen Mobile all saw subscribership race past this milestone in 2007.
The CDG also noted that 2007 also saw an explosion in the availability of both low- and high-end devices. More than 350 devices were introduced on a commercial basis. Today, more than 82 very low-end (VLE) CDMA2000 handsets (under US$50 wholesale) are available globally from 19 suppliers.
Perhaps most important to the designation of 2007 as a critical year for CDMA is the number of CDMA2000 1xEV-DO Revision A (Rev. A) deployments that took place. At the beginning of the year, only three operators had deployed Rev. A technology. Now, 26 operators worldwide have upgraded to Rev. A and another 31 operators are in the process of upgrading. Operators with working Rev. A networks have witnessed a substantial increase in their data revenue.
In addition, CDMA has found a home in new spectrum allocations. China Unicom made a successful bid to operate 3G in Macau and rolled-out its first CDMA2000 1xEV-DO network there in October. PCCW-HKT Telephone won a 15-year license to deploy and operate CDMA2000 in the 800 MHz band in Hong Kong. Meanwhile, several operators in the United States are considering CDMA2000 to offer Advanced Wireless Services (AWS) in the 1.7/2.1 GHz frequency band.
On the 450 and 700 MHz fronts, the International Telecommunications Union (ITU) reached a decision to use the two bands for 3G and next-generation mobile services.
Source: Cellular News.
The Ecuadorian regulator Supertel has reported customer numbers for the end of 2007 just short of the 10m mark, as the total count increased to 9.98m during the year. Net additions over the 12 months to 31st December 2007 amounted to 1.47m, the lowest figure recorded since Q1 2005, whilst on a proportionate basis rolling annual growth fell to an all-time low of 17.2%. These trends are less remarkable when noting that penetration in Ecuador reached 72.1% at the end of 2007, after an increase of almost 10pp in the year.
America Movil’s Conecel pulled further ahead of its two competitors in 2007, registering 87.5% of the year’s net additions and extending its market share from 66.5% to 69.5% in the process. Its position was helped by the fact that its main rival, Telefonica’s Otecel, has floundered somewhat this last year, adding just 92k customers on a net basis over the 12 months: this equates to proportionate growth of just 3.7%, against 22.7% at Conecel. In fact, Telefonica actually lost customers in Ecuador in the fourth quarter, according to data from Supertel, its base falling from 2.66m to 2.59m in the three months to December.
Whether the company itself agrees with this version of events has yet to be seen, as Telefonica does not publish its own figures until this Thursday.
The third operator in the Ecuadorian market is Telecomunicaciones Móviles del Ecuador, or Allegro PCS, which finished the year with 450k customers. This gave the operator a 4.5% share of the market, up from 4.2% at the end of 2006. (As with market-leader Conecel, Allegro’s gain also came at the expense of Telefonica, whose own share fell from 29.3% to 25.9% of the total base during the year.) The fourth quarter of 2007 was significant for Allegro PCS as it saw the introduction of GSM technology by the company, which has hitherto been an exclusive proponent of the CDMA standard.
The development leaves CANTV as the only CDMA-only operator in Latin America, until later midway through this year, that is, at which point the renationalised Venezuelan carrier is due to launch its own GSM overlay network.
Penetration vs Proportionate Annual Growth

Source: Cellular News.

Wednesday, February 27, 2008
SAO PAULO -(Dow Jones)- The number of cellphones in circulation in Brazil totaled 122.8 million at the end of January, up 1.5% from December and 22% higher than the same month one year before, according to figures released late Friday by telecommunications regulator Anatel.
Net additions in the month were 1.88 million. Brazil's leading cellphone operator Vivo Participacoes' share of the local cellphone market fell slightly in January. The company still maintained its lead with 27.44% of the market in January from 27.68% in December. TIM Participacoes, Brazil's No. 2 operator, had its market share increase to 26.10% in January from 25.85% in the month before. Market share for third-placed operator Claro fell slightly to 24.84% in January from 24.99% in December. Oi, or Tele Norte Leste Participacoes' market share rose slightly to 13.32% from 13.21% in December. Vivo is jointly controlled by Spain's Telefonica and Portugal Telecom. Claro is owned by Mexico's America Movil, and TIM is controlled by Telecom Italia.
Source: Cellular News.
Mexico's largest wireless provider America Movil launched its new third-generation broadband wireless network Monday in 15 cities, with expectations that the service will become profitable by the end of the year.
Click here to see full article
|
"We're investing a very strong amount to get the network off the ground, but we believe it will yield returns in coming months or by the end of the year, when we have sufficient coverage," said Marcos Linares, head of marketing at America Movil's Mexican unit, Telcel. |
At a press conference, company officials said they expect the third-generation, or 3G, network to expand its coverage to 350 Mexican cities by the end of the year.
America Movil is Mexico's biggest wireless service provider, with 50 million subscribers. The company plans to invest $4 billion a year over the next three years to upgrade its network to 3G across Latin America.
Click here to see full article
|
The network's new features include broadband Internet, video phone-call capability and streaming Internet video, as well as an online music store with more than 200,000 songs.
Officials said 3G is fully compatible with the existing Telcel network, allowing users to switch back to the network when they leave areas of 3G coverage.
Mobile phone penetration in Mexico is currently around 65% and is expected to reach 80% in coming years, officials said.
Telcel said earlier this month that it selected Ericsson to supply the network, including base stations, network controllers and software. |
Source: Cellular News.
Thai communications and media holding group Shin Corp, controlled by Singapore's Temasek, has reported that its net profit in 2007 decreased by 6.3% to THB3.1 billion (USD101 million), on revenues of THB22.8 billion, down by THB142 million year-on-year. The firm’s share of the net results of leading Thai mobile network operator Advanced Info Services (AIS) contributed 30.2% of total revenues. AIS, which has already reported its results separately, finished the year with a total of 24.1 million GSM users, an annual rise of 23%. In Laos, Lao Telecommunications Company (LTC), 49%-owned by Shin’s Shenington Investments unit, saw mobile subscribers increase by 28.7% year-on-year to 700,306 at the end of December, primarily due to expansion following increased marketing activities targeted at low-usage subscribers. LTC’s mobile ARPU increased by 10% whist its number of fixed PSTN subscribers increased by just 0.1% in the year. In Cambodia, Camshin, wholly owned by Shenington Investments, increased its mobile user base by 72.1% in 2007 to 469,514, again driven by marketing aimed at low-end pre-paid customers. Camshin’s mobile ARPU decreased 12.1% on an annual basis, primarily as a result of the introduction of promotional packages following increased competition. Shin Corp also has a stake in Thailand’s largest dial-up ISP, CS Loxinfo, which launched ADSL services in 2006.
Source: TeleGeography.

Monday, February 25, 2008
The number of registered mobile phones in Ghana topped the seven million-mark by the end of 2007, according to new data published by the regulator, the National Communication Authority (NCA). The watchdog’s figures show that the country recorded quarterly net growth of 8.4% in the last three months of the year, boosting the country total to 7,604,053 by 31 December. Local industry watchers predict, however, that the sector could soon reach saturation levels, leaving the four main cellular operators to slug it out for market share. The NCA reports that MTN Ghana was the market leader by the start of 2008 with 4,016,132 subscribers, ahead of Millicom Ghana (Tigo) with 2,023,091, while GT-OneTouch and Kasapa Telecom took third and fourth place with 1,275,764 and 289,066 subscribers respectively. Tigo topped the list in terms of net subscriber additions in 4Q07, however, signing up a net 426,640 new users compared with 143,743 for MTN and 21,456 for Kasapa Telecom. Meanwhile, Ghana Telecom’s mobile arm OneTouch recorded a net loss of 4,493 users in the last three months of the year, with a proportion of the net decline being attributed to subscribers having their lines cut or deactivated from the network.
Source: TeleGeography.
Reliable sources indicate that Vodacom is close to signing a deal with Libyan-owned Lap Green to take over its recently purchased operations in Rwanda and Uganda. A draft of the agreement clearly indicates that Vodacom would take over a majority stake and have technical control, whilst Lap Green would remain a significant minority shareholder.
If the deal comes off, it would make sense of much that so far has not made much sense. Libya’s Lap Green clearly has not lacked for money but has so far only sent in a small number of its own management personnel. As one person in the ISP sector in Uganda observed:"Not much has happened on the practical side and there’s no sign of change yet." From the Vodacom perspective, it would offer them two new territories after a long period of no new acquisitions.
The mobile market in Uganda is clearly the larger prize with an estimated 4.5 million subscribers. Currently, utl is the smallest player after MTN with 1.25 million subscribers and Celtel with 1.2 million subscribers. The Celtel operation, which used to be in poor shape, is now powering ahead and becoming a serious challenger for market leadership.
The latest entrant Warid seems to have acquired 20-30,000 subscribers in its two week existence but does not yet seem to have set the market alight. MTN introduced a pre-emptive 14% drop in its tariffs and Warid opened with slightly lower tariffs. Competitors acknowledge that it has good network coverage but that it has no particular local insight and only a narrow product range. Prices still seem set to fall further and there is the makings of a price war when the fifth operator HITS finally enters the market. Optimistically, this might be in May of this year.
Meanwhile, Uganda is only the latest country to join the 3G arms race. Both Celtel and MTN are installing 3G, although the latter is only likely to have it in Kampala and around Entebbe Airport. MTN has 65,000 subscribers on a combination of its EDGE upgrade and its Wi-MAX fixed broadband locations in 51 Ugandan towns. Achieved download speeds on both are in the region of 250 kbps. It has found that introducing a 3G network has meant finding new sites to ensure sufficient coverage.
As MTN’s CEO Erik van Veene told us:"We are really doing a couple of laps round the track before the fibre cable arrives." It hopes to be able to offer cheaper local pricing so as to encourage local hosting and content.
Source: Balancing Act.
Vodacom-Mozambique (VM), the second cell phone operator in the country, lastTuesday claimed that it has increased its share of the mobile phone market to 40 per cent. Speaking at a lunch in Maputo with journalists, itschairman Hermenegildo Gamito said that by January of this year it had reached about 1.5 million subscribers - which is well over 40 per cent of the estimated 3.3 million cell phone users in the country.
Vodacom's last published figures were the interim results for the six month period ending on 30 September 2007, and these showed a client base of slightly less than 1.1 million, which at the time was estimated to be 38 per cent of the markets. If Gamito's figures are accurate, the company has added an extra 400,000 clients in four months - a growth in the client base of 36 per cent.
Gamito added that 3.3 million is only 16 per cent of the Mozambican population "from which we may readily conclude that the penetration of mobile telephony in Mozambique is still regarded as rather weak".
(Source: Agencia de Informacao de Mocambique).
Source: Balancing Act.
India's telecoms regulator, TRAI has reported record growth for the country's mobile phone operators. In January, they signed up 8.77 million new subscribers - which broke the record of 8.17 million set only the month before.
The total wireless subscribers (GSM, CDMA & WLL(F)) base stood at 242.40 million at the end of January 2008. In the wireline segment, the subscriber base has slightly decreased to 39.22 million in the month of January 2008 as against 39.25 million subscribers in December 2007.
The total number of telephone connections reaches 281.62 million at the end of January 2008 as compared to 272.88 million in December 2007. The overall tele-density is 24.63% at the end of January 2008 as against 23.89% in December 2007.
Breakdown of subscriber numbers:
Bharti Airtel 57,417,625
Reliance 42,566,333
Vodafone 41,145,413
BSNL 37,986,440
Tata Teleservices 22,541,429
Idea 21,954,685
Aircel 9,933,815
Spice 3,942,828
MTNL 3,284,804
BPL Mobile 1,256,534
HFCL Infotel 268,830
Shyam Telelink 102,995
Source: Cellular News.
World’s biggest telecommunication company Vodafone has unveiled a new service in Spain, which enables its mobile consumers to turn their handsets into a fixed telephone at home.
Click here to see full article
|
Customers can now save on average 24 percent on their fixed telephony bill by signing up for the service nicknamed as “Vodafone In Your Home.”
The new service is an attempt by Vodafone’s Spanish subsidiary to push into the fixed-line market and claim larger slice of the market from former monopoly Telefonica.
|
Vodafone is about to start selling the service hoping to reach 9.6 million homes which have no broadband Internet access.
Click here to see full article
|
Consumers do not necessarily have fixed telephone to sign up for the service, Vodafone made it clear in a press statement issued last week.
All they have to pay is a monthly fee of EUR 3.
Customers who want a fixed telephony number can pay EUR 15 a month which also includes unlimited calls to one chosen fixed line. They will be charged cheaper rates when the mobile is receiving calls at home and can then opt for any other mobile tariff for other calls.
The service will allow clients to use their mobile phones as if they were fixed-line phones when they are at home.
|
Vodafone launched similar services in other European countries such as Germany, Italy, Portugal, and Greece, where it now has 4 million fixed-line customers.
Click here to see full article
|
Speaking at 3GSM (News - Alert) World Congress in Barcelona a couple of days ago, Vodafone Spain’s Chief Executive, Francisco Román, said, “At Vodafone Spain, we continue to bet on the gradual substitution of fixed telecommunications by mobile. Voice traffic over mobile networks is already higher than over fixed lines and it is possible that this will carry on accelerating in the coming months”
Over a year ago, Vodafone Spain launched its Vitamina Tariff for private customers and last year launched Vodafone Office for freelancers and small businesses, which now has 800,000 customers.
|
Source: Wireless Federation.
APA-Maputo (Mozambique) South African-based mobile phone company, Vodacom-Mozambique (VM) has announced a 40 percent share in Mozambique's mobile phone market, five years after entering the market.
The chairman of Mozambique's second cell phone operator, Hermenegildo Gamito, said that by January 2008, VM had reached 1.5 million clients, which is over 40 percent of the estimated 3.3 million cell phone users in the country.
"We now have a market share of 40 percent in Mozambique, that is 3.3 million, and is only 16 percent of the Mozambican population from which we may readily conclude that the penetration of mobile telephony in Mozambique is still regarded as rather weak", he said at a business lunch with Mozambican journalists in Maputo, the country's capital.
"VM is working with government bodies to improve the business environment for mobile telephony, with the aim of allowing greater access to existing services", Gamito added.
Vodacom, a subsidiary of the South African Vodacom Group, was awarded a mobile network license in 2002 to become the second cellular operator in the country after paying U$$15 million for the license to compete with mCel, which is owned by the Mozambican government and a German company Detecon.
Source: Cellular News.

Friday, February 22, 2008
India's Reliance Communications has announced acquisition of Uganda based Anupam Global Soft, a company holding Public Infrastructure Provider License (PIPL) and Public Service Provider License (PSPL) issued by Uganda Communications Commission. The company says that following the acquisition - for an unspecified amount - it plans to spend up to US$500 million on building out the telecoms network.
Under the existing Licenses, Reliance Communications targets to offer Mobile, Fixed Line, Internet, National and International Long Distance services, in addition to WiMax and Wi-Fi services in Uganda.
Click here to see full article
|
This company has received Spectrum allocation and plans to launch its Mobile services by end of 2008.
Punit Garg, President, Global Business, Reliance Communications said, “Uganda telecom market is similar to what India was 8 years back. Our expertise in managing among worlds largest integrated telecom network, and deep understanding of diverse consumer segments makes us confident to achieve a significant position to add further value for our 2 million shareholders.”
Reliance Communications says that it has ambitious global expansion plans and is concentrating on opportunities in emerging Asian and African markets.
|
Figures from the Mobile World database note that the population penetration level in Uganda had reached 13.3% at the end of September - compared to the 10% figure reported by Reliance for the end of last March.
Source: Cellular News.
China Mobile, the world's largest operator by subscriber numbers has announced plans to seek overseas expansion and is considering setting up an MVNO in the saturated European market, along with industry favourite - the emerging markets of Asia and Africa.
Henry Ge, chief representative of China Mobile UK, told the Financial Times that the company would focus on three areas: emerging markets; overseas Chinese customers wanting to keep in touch with home; and "the short-term visiting market", which included travelling business customers and the growing number of Chinese tourists.
Vodafone has built up a 3.3 percent stake in China Mobile over a couple of purchases and has a representative on the company board of directors.
Last year, the China Mobile's unlisted parent company took control of Pakistan based Paktel for US$460 million and announced plans to spend a similar amount on improving the network.
Source: Cellular News.
BNamericas, quoting a study by local consultancy Prince & Cooke, reports that revenues from Argentina's telecoms market totaled ARS24 billion (USD7.6 billion) in 2007, an increase of 25% compared to 2006. The study found that revenues were driven by the mobile telephony and internet segments. Mobile revenues surged 42% last year compared to 2006 while the internet sector experienced 40% growth. The cellular market accounted for 45% of total turnover. The country ended 2007 with 2.6 million broadband subscribers, and approximately 800,000 additions are expected this year.
Source: Telegeography.
Kuwait’s National Mobile Telecommunications (Wataniya) has reported a fourth quarter profit of KWD21.3 million (USD77.96 million), down almost 8% year-on-year, though profits for the full year were up 50% at KWD80.7 million. Revenue for 2007 stood at KWD407.6 million. Majority owned by Qatar Telecom, Wataniya is Kuwait’s second largest cellular operator, with around 1.2 million subscribers and a 43% share of the overall market at the end of 2007.
Source: TeleGeography.
MADRID -(Dow Jones)- The number of mobile phone lines in Spain rose 7.3% in 2007 to a total of 50.2 million, the telecommunications regulator CMT said Wednesday.
At the end of the year, Spain had a mobile telephone penetration rate of 112%, or 112 lines per 100 people, the CMT said.
Of the 3.4 million new cellular lines added last year, Vodafone's Spanish unit picked up roughly 40% of them, followed by Telefonica with 35%.
TeliaSonera's Spanish unit, Yoigo, had 18% of the new mobile lines while France Telecom's operator Orange added 16%.
The remaining new lines were picked up by Spain's smaller low-cost MVNO operators, which buy airtime from the larger operators.
Source: Cellular News.
Monthly net additions in the Indian GSM market were the highest ever recorded in January 2008, according to the latest data from the Cellular Operators Association of India (COAI). Including estimates for Reliance, whose reporting still lags by a month, GSM net additions increased in number to 6.54m in January – beating the previous best of 6.24m set in August 2007.
Cumulative customer growth rate since 07/07

Click here to see full article
|
The new connections made in January 2008, which were almost one third more numerous than those made in January 2007, took the national total for GSM customers to 178.8m from 172.2m at the end of December. Proportionately, however, growth is slowing: the 3.80% increase in January 2008 fell below the rate recorded in January 2007 (+4.74%) and, indeed, all but two other months last year.
As the 1st chart shows, market leader Bharti Airtel beat its own monthly net additions record for the second successive month in January, as new connection numbers reached 2.25m from 2.20m in December. Perhaps the more striking trend is that Bharti’s success seems to be coming at its largest rival Vodafone’s expense: in January 2008, Vodafone Essar’s net additions fell for the sixth successive month, from a high of 1.69m in July 2007 to 1.28m. Vodafone’s market share of net additions has also fallen over the last six months from 28.0% in July 2007 to just 19.6% in January 2008, although averaged over the period the figure works out at 23.6% - just above its current market share of the total customer base of 23.0%. By the same token, whilst Bharti’s share of net additions over the last six months is in excess of its current market share, it is not greatly so, at 34.3% to 32.1%.
Relatively speaking, the best performers were Reliance Telecom, with a 5.2% share of net additions against 3.6% of total customers, and Aircel, with a 7.5% share of net additions against a 5.6% share of the overall base. This is also evident from the proportionate growth figures, which show Reliance leading the field with a 43.7% increase since 31st July and Aircel close behind with a 38.7% uplift. The chart below shows the growth of India’s GSM operators to the end of January 2008, indexed relative to the size of their base at the end of July 2007.
GSM net additions by operator

|
Source: Cellular News.

Wednesday, February 20, 2008
The number of mobile phone subscribers in Egypt reached 30.047 million at the end of 2007, up from 29.368 million in November and 18.001 million at the end of 2006, according to figures from the ICT ministry. Mobile penetration was at 40.62 percent of the population at year-end. Fixed-line density increased marginally to 15.2 percent at the end of 2007 from 15 percent a year earlier, while internet use was at 11.7 out of every 100 inhabitants versus 8.3 in 2006. Internet use rose to 8.62 million users, versus 8.29 million in November. The number of ADSL users increased to 427,085 from 394,875 in November and was more than double the figure at the end of 2006.
Source: Wireless Federation.
The latest figures from the Pakistani telecoms regulator show that the mobile market in Pakistan grew to 78.74m customers at the end of January. The figure for monthly net additions of 1.86m was 17% down on the January 2007 total, and also represented the second lowest figure for two years, the lowest being the 1.52m recorded last October.
Orascom's Mobilink continues to dominate the market with 30.89m customers at the end of January, but it has lost market share in every month since February 2006 and January's 0.6pp fall saw it hit 39.2%, its lowest percentage since 2002. Pakistan Telecom Mobile (U-Fone) remained in second place with 16.44m customers at the end of January. However, in the last 6 months Telenor Pakistan has narrowed the deficit considerably, from 3.5m at the end of July to just over 1m at the end of January.
Monthly Net Additions by Operator

Click here to see full article
|
In terms of market share, January saw Telenor just 1.4pp behind at 19.5%, compared to a 5.8pp gap at the same point in 2007. In fact, Telenor was in fourth place behind Warid in January 2007; a year later, Telenor had 15.35m to Warid's 13.38m. Telenor took 40.6% of Pakistan's total net additions in January with 754k, over double the next best figure of 374k, recorded by China Mobile subsidiary Paktel.
In terms of proportionate growth, however, Paktel was by far the fastest growing in January with an 18.9% increase in customer numbers. Paktel's performance in the past three months has been extraordinary: it has managed to more than double its subscriber base since the end of October, from 1.06m to 2.36m. November's figure of 721k new connections - a staggering 68.2% monthly growth rate - was particularly impressive, and pushed national net additions over 3m for the first time since the start of monthly reporting in June 2005. The sixth operator in Pakistan is Pakcom, which had 0.32m customers at the end of January, but which has had its licence revoked by the national regulator PTA Pakistan as a result of its failure to keep up with licence payments.
Despite November's bumper crop, growth seems to be slowing in Pakistan. The fourth quarter of 2007 saw a 9.8% growth rate, the lowest since Q2 03 and the tenth successive decline in quarterly growth. Moreover, annual growth of 58.7% was less than half the 123.8% recorded in 2006. With penetration at 45.0% at the end of 2007, there is plenty of potential for further growth, but it seems unlikely that 2008 will be able to match the 28.44m new connections recorded in 2007. |
Source: Cellular News.

Tuesday, February 19, 2008
Wireless phone company Vodafone has dialed up mobile banking in -- surprise -- developing countries, not rich nations.
Vodafone's VOD service lets cell phone users transfer small sums of money via text messaging.
It's targeting developing countries in Asia and Africa, where most people don't have bank accounts, but cell phone use has soared.
Click here to see full article
|
In Kenya, Vodafone already has signed up 1.6 million customers for the money-transfer service it launched just a year ago.
Last week, Vodafone expanded the service into Afghanistan by partnering with Roshan, that country's biggest wireless firm. Vodafone aims to set up mobile money-transfer services in other developing countries, including India.
"There's potential for mobile banking and payment services in emerging markets because the banking infrastructure just isn't there, but wireless networks are present in broad swaths of these countries," said Daniel Winterbottom, an analyst at market research firm Informa. "People have more access to phone services than they do to banking facilities."
Using cell phones to perform financial transactions isn't a new idea. Wireless firms have eyed mobile banking and "wallet" services for years as a way to boost profit.
They've trotted out services that let subscribers check account balances, pay bills, transfer funds or use electronic money as a cash substitute at retail outlets.
But mobile banking has yet to catch on in the U.S. and Europe. Even in South Korea and Japan, usage is modest compared with popular music and gaming services.
Vodafone, though, sees a need in emerging markets, where brick-and-mortar banks are hard to find outside big cities, analysts say.
The U.K.-based carrier says that typical users of the money-transfer service are workers away from home. They might work in big cities and need to whisk money back to their families in rural areas.
Wireless firms are searching for ways to boost revenue from nonvoice services in developing countries, says Nitesh Patel, an analyst at Strategy Analytics.
"There's pressure on them to find ways of creating more value for customers," Patel said. "Mobile banking services are a way to do that."
In Kenya, Vodafone affiliate Safaricom has set up 1,800 sales agents for the money-transfer service. They include retail outlets where cell phone users normally buy prepaid airtime minutes as well as at gas stations and convenience stores.
Customers bring in real cash, making a deposit to the sales agent that acts as a virtual bank. The money is then credited to the customer's account.
The service sends a text message to the intended recipient of the money. To get the money, a recipient has to go to a nearby sales agent registered with Safaricom.
Vodafone partnered with Citi-bank C to develop the text messaging-based money-transfer service, Patel says.
Almost 20% of Safaricom's 9.2 million subscribers have signed up for the M-Pesa service.
"What we've established in Kenya is that there's a strong appetite (for M-Pesa) in a country where typically large numbers of the population have no bank accounts," said James Moberly, Vodafone's senior manager, mobile payments.
Safaricom is a joint venture between Vodafone and state-owned Telkom Kenya.
Vodafone takes a commission on the money transferred. The commission ranges from 3% to 5%, depending on the amount, analysts say. Vodafone's M-Pesa competes with Western Union WU and other transfer services.
In Afghanistan, where Vodafone doesn't operate its own network, Moberly says Vodafone will share revenue with Roshan and sales agents.
Less than 3% of Afghanistan's population has a bank account, says Altaf Ladak, Roshan's chief operating officer. Roshan has certified 50 sales agents in four cities for the money-transfer service. It plans to have 200 by year-end, says Ladak. Roshan has 1.7 million subscribers.
Vodafone says it might launch the money-transfer system in India, where it has nearly 40 million customers. Patel says Vodafone probably will roll out the service in Eastern Europe as well.
Other wireless firms are moving into mobile financial services in emerging markets.
In the Philippines, Smart Communications has pioneered some mobile banking services, Patel says. Smart is a subsidiary of Philippine Long Distance Telephone PHI.
While Vodafone provides money transfers within the same country, Smart enables migrant workers to send money back to their home countries. Last month, Smart announced a deal with China Banking Corp. and Alahli Bank to serve Filipino contract workers in Saudi Arabia.
|
Source: Cellular News.

Friday, February 15, 2008
A new research study published by the Center for Global Development has looked at the impact of mobile phones on the prices of farm produce in the African country of Niger - which faced serious food shortages in 2005. In theory, the increasing use of mobile phones should have improved distribution efficiency and hence lower the variations in prices around the country. The study set out to see if that was the case.
Click here to see full article
|
With an estimated 85 percent of the population living on less than US$2 per day, Niger is the lowest-ranked country according to the United Nations’ Human Development Index. The majority of the population consists of rural subsistence farmers, who depend upon rainfed agriculture as their main source of income. Grains (primarily millet and sorghum) are dietary staples, accounting for over 75 percent of food consumption. These commodities are transported from farmers to consumers through an extensive system of markets that run the length of the country, which is roughly three times the size of California.
As grain markets occur only once per week, traders have historically traveled long distances to potential sales markets to obtain information on supply, demand and prices. Between 2001 and 2006 though, cell phone service was phased in throughout Niger, providing an alternative and cheaper search technology to grain traders and other market actors.
To test the predictions of the theoretical model, the researchers use a unique market and trader dataset from Niger that combines data on prices, transport costs, rainfall and grain production with cell phone access and trader behavior. They first exploited the quasi-experimental nature of cell phone coverage to estimate the impact of the staggered introduction of information technology on market performance.
The results provide evidence that cell phones reduce grain price dispersion across markets by a minimum of 6.4 percent and reduce intra-annual price variation by 10 percent. Cell phones have a greater impact on price dispersion for market pairs that are farther away, and for those with lower road quality.
It is worth noting how important this is - as during the 2005 food crisis, areas where food was plentiful had prices some 20% lower than in famine areas, which in such a poor country had a serious impact on the ability of people in famine struck areas to afford to buy staple foods. At the time of the food crisis, only 24 percent of the markets in famine regions had cellphone coverage, as compared to 83 percent of markets in plentiful regions.
As a grain trader operating in Zinder noted, "(With a cell phone), I know the price for US$2, rather than traveling (to the market), which costs US$20."
A factor which should be noted that improved distribution results in fewer surpluses in some regions and shortages in others - which flattens the price difference between markets. So in surplus areas the price rises, and in famine areas - the price falls. This obviously benefits those in dire need in the short term, but there is also a long term economic benefit for the country as a whole as there is more price stability and that makes it easier for families and traders to plan ahead for their financial budgets.
The primary mechanism by which cell phones affect market-level outcomes appears to be a reduction in search costs, as grain traders operating in markets with cell phone coverage search over a greater number of markets and sell in more markets.
The results suggest that cell phones improved consumer and trader welfare in Niger, perhaps averting an even worse outcome during the 2005 food crisis.
Source: Cellular News. |
The number of mobile subscribers in Pakistan reached a total of 78.74 million at the end of January versus 76.88 million subscribers in December. According to figures from the Pakistan Telecommunication Authority, Mobilink had the highest number of subscribers with 30.88 million subscribers, followed by Ufone with 16.44 million subscribers, Telenor with 15.35 million subscribers and Warid with 13.38 million subscribers. The mobile density was 48.96 in January compared to 48.61 in December. The number of fixed-line subscribers in Pakistan totalled 4.83 million in December. PTCL had the highest number of subscribers with nearly 4.69 million subscribers followed by NTC with 106,336 subscribers, NayaTel with 13,500, Worldcall with 10,008 and Union Communication with 3,500 subscribers. The number of wireless local loop subscribers rose to 2.20 million at the end of January, compared to 2.12 million in December. PTCL had the highest number of WLL subscribers at 1.27 million. TeleCard, World Call, and Wateen had 0.46 million, 0.39 million and 11,792 subscribers respectively. The new operators Burraq and Mytel had only 190 and 138 users respectively. The total fixed teledensity was 4.45 for January, which was comprised of 3.06 fixed density and 1.39 WLL density.
Source: Wireless Federation.
Belgium's second largest operator by customer numbers, Mobistar, has reported its Q4 07 results, which suggest that it finished the year strongly, adding a record 155k new connections in the final quarter of 2007. This takes its total customer base to 3.49m, with net additions of 337k in the year, up from 240k in 2006. On a proportionate basis, annual growth rose to 10.7% from 8.2% in 2006.
However, these headline figures do not tell the whole story. In fact, most of the growth in 2007, and particularly in Q4, was attributable to 'third party' MVNO customers. In terms of annual net additions, 193k - 57% of the total - were in the MVNO segment, while in Q4 the figures were 112k and 73%. If we strip out new connections to MVNOs, a very different picture emerges. In the retail segment, there were only 145k net additions in 2007, compared to 226k in 2006, while annual growth in this segment was down to 4.6% from 7.8% in 2006.
Click here to see full article
|
Of course, Mobistar does benefit to a certain extent from growth in MVNOs which use its own network, but it might well be concluded that MVNOs are having a deleterious effect on the growth of its own customer base, as the following chart suggests.
Mobistar's financial figures reflect the less than impressive performance of the retail segment. Annual mobile revenues were down 3.6% in 2007 to €1,435m, while mobile EBITDA saw an even greater decline, with a 4.6% drop taking the 2007 total to €593m. The decline in revenues can be explained partly by a significant fall in ARPU, with average monthly ARPU for 2007 down 10.9% year on year to €34.5.
Net additions, MVNO vs Retail

Source: Cellular News.
|

Thursday, February 14, 2008
Recently published figures from the Japanese telecoms regulator show that the trend established in the latter half of 2007 continued in the first month of 2008, with Softbank extending its run of market-leading performances to nine months. In fact, Softbank's January figure of 201k new connections represented 59.8% of the total net additions for Japan, the highest percentage it has ever claimed. KDDI's combined au and Tu-Ka offerings added 83k while DoCoMo managed just 20k, lower even than startup 3G operator eMobile, which added 33k.
Of course, the level of stratification in the Japanese market means that DoCoMo's lead is nigh-on unassailable in terms of overall customer numbers, with 53.17m connections at the end of January compared to 29.64m for KDDI and 17.81m for Softbank. However, DoCoMo's market share continues to slide inexorably downwards, with a 0.2pp drop in January taking it to 52.7%. This compares to 54.8% a year earlier. KDDI gained 0.6pp year on year, although it has been stuck on 29.4% since August, while Softbank finished on 17.7%, a 1.2pp yearly gain.
In total, the Japanese market reached 100.86m customers at the end of January, with the level of W-CDMA penetration up to 55.1% from 41.6% a year earlier.
Percentage of monthly net additions by operator

Source: Cellular News.

Thursday, February 07, 2008
Korean market leader SK Telecom finished 2007 with 21.97m customers and a market share of 50.5%, up 0.1pp compared to the end of 2006. Quarterly net additions of 0.36m brought the annual total to just under 1.7m, an 8.4% annual growth rate. Revenue growth lagged behind customer growth slightly, a 6% rise taking the 2007 total to KRW 11,286bn. However, operating income was down 16% to KRW 2,172bn, and this impacted EBITDA, which was down 5% compared to 2006 at KRW 4,024bn.
One of the most remarkable aspects of SK Telecom's figures is the growth in the W-CDMA customer base, which we estimate to have reached 2.68m at year-end.
This represents an astonishing growth rate of 8847%, with the customer base at the end of 2006 standing at just 30k. However, this still leaves it short of KT Freetel's figure for 3G customers, which was 3.21m at the end of 2007 having launched in January 2007.
Clearly the appetite for 3G services in Korea is enormous. With 14% of Korea's total mobile customers owning W-CDMA handsets at the end of 2007 - up from 0.1% at the end of 2006 - it will be interesting to see how long it takes for 3G penetration to rise to the levels seen in Japan, where it currently accounts for more than half of the total.
Customers by Technology Standard

Source: Cellular News.
Morocco finished 2007 with 20.029 million mobile subscribers, up from 19.188 million in September and 16.005 million at the end of 2006. Mobile penetration has now reached 65.66 percent of the population, versus 53.54 percent a year ago, according to the figures from market regulator ANRT. Out of the total base, only around 800,000 use postpaid services, while the remainder are prepaid. Maroc Telecom has a 66.54 percent share of the market, while Meditel holds 33.46 percent. The number of fixed-line users meanwhile has grown to 2.394 million from 2.266 million in September and 1.266 million at the end of 2006. Fixed penetration rose to 7.85 percent. The number of internet subscribers rose 7.6 percent over the fourth quarter and 31.6 percent over the full year to reach a total 526,080 at the end of 2007. ADSL accounts for 90.6 percent of all subscribers, while plans for 256 Kbps make up 43.6 percent of all ADSL users.
Source: Wireless Federation, from ANRT.
Vodacom Group, the Vodafone associate based in the Republic of South Africa, has announced its December quarter numbers. It's total base has risen by 4.7% in the quarter, to a total of 33m. Using an estimate of the activity level in the main market of South Africa, these numbers would change from 33m to around 32.1m, which would imply a slightly faster growth rate, of 4.8%. South Africa obviously accounts for the majority of this base - 23.3m or 73% of the total on an active basis - with the balance being spread across four other networks, in Tanzania, Mozambique, the Democratic Republic of the Congo and Lesotho.
Other than the DRC, which managing only 2.9% growth to 3.27m, all the others outpaced their parent in proportionate terms, with growth rates of 7.3% in Tanzania, 9.9% in Lesotho and 11.9% in Mozambique. The chart below shows the recent trend in the overall base.
Venture Customers, EOP (000s), Q1 05 - Q4 07

Click here to see full article
|
The South African company has been looking to improve the quality of its base in the recent past and hence the focus on activity. It disconnected about 1.9m inactive customers half way through the year, recording a net decline of 1.3m registered customers in Q3, but an increase of over 0.5m on an active basis. The net result is an improvement in prepaid ARPU, which has increased from ZAR59 to ZAR62, a rise of 5.1%. Despite a small decline in contract spend, from ZAR487 to ZAR 485, the blended average managed a 3.4% rise. The cull has also improved the churn numbers, though it has to be said that there is still huge scope for further improvement.
Vodacom SA's contract base is about as loyal as any, with a disconnection rate of just 8.1%, but its prepaid customers are fickle: the quarterly churn rate, when annualised, amounts to 49.4% to leave the blended ratio at 43.6%. It is small comfort that the prior quarter's numbers were 51.9% and 45.9% respectively.
Vodacom's non-South African operations all generate materially lower ARPUs, but with the exception of Lesotho, this is not offset by lower churn. It isn't possible to generalise as the four markets have produced divergent results. In the DRC, churn was up from 43.3% to 46.1% while ARPUs declined from ZAR64 to ZAR59. This was the worst result, but Mozambique also saw rising churn - from 57.3% to 59.6%, while ARPUs were flat at ZAR27. In Tanzania and Lesotho, Vodacom saw rising ARPU. In the first case, ARPU edged up from ZAR48 to ZAR50, while churn fell back 0.8ppt to 46.0%, while in the second, ARPU improved by ZAR2 on the quarter to ZAR74, up ZAR2 on the quarter while churn crept up by 0.2ppt, but at 18.1%, this won't cause undue concern.
The future ownership of this business remains slightly uncertain. During 2007, Vodafone attempted to acquire the 50% it does not own in this business, without success. As predicted in a recent issue of The Mobile World Briefing, the recent bid from Saudi Oger for Telkom South Africa has apparently, brought this issue back to life again. Saudi Oger's offer assumes that Telkom would be merged with its own Cell-C (the number three mobile operator in South Africa) which would require Telkom to divest its stake in Vodacom. This is a simpler proposal than the rather complex three way deal involving MTN and we imagine Vodafone will be doing all it can to promote it. |
Source: Cellular News.
France added nearly 2 million new mobile phone users in the fourth quarter of 2007, taking the total to 55.4 million (87.6% of the population), according to telecommunication regulator Arcep. MNOs had 50.7 million customers and around fifteen MVNOs had 4.88 percent combined market share at the end of the year. Of the total number of mobile phone subscribers, 53.3 million are in mainland France, where the penetration rate is 87.1 percent, and 2.1 million are in overseas territories (103.5%). Postpaid plans were used by 36.3 million consumers at the end of last year, compared to 19 million on prepaid. SMS traffic rose to 37 per month in the fourth quarter from 31.1 in the third. Communication time slipped to 33.4 billion minutes from 34.6 billion, respectively. ARPU rose to EUR 35.80 per month in the third quarter, compared to EUR 35.20 in the second. This compares to EUR 37 at the end of 2006. Mobile number portability rose to 321,800 numbers in the fourth quarter, up 21.6 percent on the preceding quarter.
Source: Wireless Federation, based on Arcep.

Tuesday, February 05, 2008
The Government has launched a credit scheme of a cellphone-per-household aimed at bridging the communication gap in rural areas.
Click here to see full article
|
The initiative kicked off recently in Musanze District, Northern Province. The Minister in the Office of President in charge of Science, Technology, and Research, and Information Communication Technology, Prof. Romain Murenzi, presided over the event that attracted a number of executives from stakeholders in the project.
Murenzi said that the move will ensure a smooth run towards Vision 2020. "This initiative of bridging the communication gap in rural Rwanda is one of key projects that are gradually coming to fruition," he said. The minister expressed gratitude towards the Public-Private-Partnership (PPP) model. He said that the involvement of a telecommunication company- MTN and Rwanda Development Bank (BRD) played a big role in the implementation of the initiative. |
Through the efforts of the initiative, the cost of a mobile phone has been slashed from Frw28,000 (US$52.55) to Frw13, 000 (US$24.40). The relaxed credit scheme will enable a person to own a phone and pay only Frw1,000 (US$1.88) per month in a period of 13 months. Over 53,000 handsets have so far been dispatched to 15 out of 30 districts. Celestin Karabayinga, the mayor of Musanze District, described the initiative as milestone in rural development. He appealed to the suppliers to increase the number of phones to meet the increased demand as a result of fruitful agricultural harvests in the Northern Province.
Source: Balancing Act, from The New Times.
Vodacom saw a dip in the pace at which new customers are joining its network in South Africa, with 958,000 signing up in the past three months against 1.5-million just before Christmas a year ago.
The cellular operator is also seeing slower growth in its other operations, adding 519,000 new users in the third quarter to December to the previous December quarter's 870,000. Its biggest slowdown came in the Congo, where its subscribers inched up just 2.9%, well short of the 15% surge enjoyed a year ago. Its networks in Tanzania and Mozambique added fewer customers than they did in the third quarter of last year, with only its tiny network in Lesotho enjoying stronger growth to reach a total of 332,000 customers.
Vodacom is now serving 33-million people, up 4,7% since September, as it connected 4.8-million new users. But that growth is offset by their constant hopping between rival networks, so overall its user base rose by just 600,000 from 31.6-million in September. In South Africa, it now serves 24.2-million users, but its rate of growth fell to 4.1% from 7,3% a year ago.
Yet it remains well ahead of MTN, which claims 14-million users in SA, meaning Vodacom has an estimated 55.6% of South African users. MTN outstrips Vodacom overall, however, with 55 million customers throughout Africa and the Middle East.
Source: Balancing Act, from Business Day.

Monday, January 28, 2008
The worldwide mobile phone market passed a new milestone in shipments by recording over 300 million devices shipped during the fourth quarter, while experiencing slower year-over-year growth for 2007. According to IDC, the 334.0 million handsets shipped during the holiday quarter was a new record for the industry, and was up 15.3% over last quarter.
For the entire year, total shipments reached 1,144.1 million units in 2007 with 12.4% overall growth. Nokia once again led vendors in shipments throughout the year, although some shakeup in the vendor rankings did occur. Samsung, which had been the number three vendor in the industry, surpassed Motorola during 2007 to capture the number two spot.
Top Five Mobile Phone Vendors, Worldwilde Full Year 2007 Results

Source: Cellular News.

Friday, January 25, 2008
The United Kingdom has been expelled from the list of the world's ten largest markets by Pakistan, as the South Asian market moved on to a total of 70 million customers by the end of Q3 2007, ahead of the UK with 69.3 million. Of course, the UK figure takes into account active customer numbers wherever possible, whilst the Pakistani number does not and almost certainly masks a very significant degree of inactivity. However, the change in the ranking - which uses active numbers wherever possible - is symbolic of current developments in the industry.
Italy also lost a place this quarter, slipping from eighth place to ninth, giving way to Indonesia, which moved up another place having been responsible for relegating the UK to tenth place in Q1 2007. Further down the ranking France also gave ground, this time as not one but two Asian markets - in the shape of the Philippines and Thailand - moved past it to take 15th and 16th places.
Meanwhile looking to the top 20, we find there was only one new entrant, Nigeria, which leapt from 22nd place to 19th in Q3 2007, knocking South Korea to 20th and ousting previous number one South Africa from the top 20. South Africa's status as the world's 20th largest market lasted just three months, as it only overtook Poland to enter the ranking in Q2 2007.
Click here to see full article
|
20 Largest Global Markets by Customer Base

The world's largest market, China, crossed the 500 million customer barrier in Q3 2007 to end the quarter with just under 506 million mobile customers. It is followed in second place by the United States, which missed out on the quarter-billion mark at the end of September by 1.8 million but went on to achieve the milestone in the first half of Q4 2007.
Third placed India also reached a milestone of its own as it broke the 200 million customer barrier to end the third quarter on 205.4 million customers. India took third place in the ranking from Russia in Q1 2007, and at the current pace of growth it should overtake the United States to take second place before 2008 is out. This year should also see Indonesia advance again to take Germany's seventh place, whilst new top-ten entrant Pakistan is also likely to overtake Italy to take ninth place.
The top ten world markets accounted for 52.6% of the global mobile customer base at the end of Q3 2007, down slightly from 53.5% a year earlier. Widening the net to the top 20, the proportion again falls from 71.0% at the end of Q3 2006 to 69.4% at the end of Q3 2007. This is a reflection of the fact that the combined subscriber base of the top 20 markets grew by only 21.4% in the year ending 30th September 2007 - considerably slower than the 30.9% growth seen when aggregating the results from markets in positions 21-225.
At the end of Q3 2007, only five markets worldwide had exceeded a total of 100 million customers, although Japan joined this exclusive club just a few weeks after the end of the period, in November. In overtaking France, both the Philippines and Indonesia broke the 50 million customer barrier in the quarter, reaching totals of 51.3m and 50.2m respectively. The result was that, of the top 20, 17 markets had exceeded the 50 million customer barrier by the end of Q3 2007, including the five aforementioned 100m+ markets.
Moving the bar lower to 20m customers, we find 35 markets qualify, Canada being the most recent addition in Q3 2007. A total of 13 more markets boast customer numbers into eight figures, Kazakhstan, Iraq and Belgium all having broken the 10m customer barrier between the end of June and the end of September, whilst Libya and El Salvador both exceeded 5m in the same period. Looking further down the list, Togo, Guinea, Gabon and Montenegro were the freshmen of the 1m+ customer club in Q3 2007, taking the number of members at the end of the quarter to 135.
|
Source: Cellular News.

Thursday, January 24, 2008
The number of mobile subscribers in Bangladesh reached 34.037 million at the end of December, up by 1.027 million in a month, and a rise of over twelve million since the start of the year, according to the latest figures from the Bangladesh Telecommunication Regulatory Commission (BTRC). GrameenPhone remains the market leader with 16.48 million customers, up from 15.15 million at the end of September, while Banglalink (aka Sheba Telecom) ended the year with 7.08 million subscribers, up from 6.02 million at the start of the fourth quarter, and double its figure at the beginning of 2007. This growth pushed Orascom-owned Banglalink into second place in the market, overtaking Telecom Malaysia subsidiary AKTEL, which lost 600,000 net customers in 4Q to end December with 6.40 million users, according to the regulator’s figures. UAE-backed Warid Telecom acquired 2.15 million customers - taking fourth place - in just eight months after launching in May 2007. Pacific Bangladesh Telecom Limited (CityCell), the only CDMA operator in a GSM-dominated sector, continued to steadily increase its subscriber base to 1.41 million by end-December, up from 1.32 million at the end of 3Q. State-run Teletalk had 850,000 subscribers on 31 December, up from 720,000 a month earlier, and 400,000 at end-2006, although previous claims had put its estimated subscriber base at a million by end-September 2007.
Source: TeleGeography.
Namibia’s second mobile operator Cell One has announced that it has rolled out its GSM network to Karasburg, Khorixas and Omaruru, and its services have now reached all 13 regions of the country. According to chief marketing officer, Ivar Talmoen, Cell One covered around 70% of the country by the end of last year and continues to expand its footprint on a weekly basis. Powercom (trading as Cell One) launched commercial mobile services in Windhoek in March 2007, breaking the monopoly of incumbent provider Mobile Telecommunications.
Source: Wireless Federation.

Wednesday, January 23, 2008
PARIS -(Dow Jones)- SFR, France's second-largest mobile-phone operator, Tuesday said it has signed up 250,000 subscribers in two months to contracts allowing them unlimited Internet use on their mobile phones.
About 52% of the subscriptions are new customers while the remaining 48% are SFR customers who have changed contract, the company said in a statement.
The number of clients significantly exceeds SFR's initial target of 100,000, the company said. SFR is 56%-owned by Vivendi while Vodafone Group holds the remaining 44%.
Rival operator France Telecom's chief executive said Jan. 11 that the company's Orange brand had sold about 70,000 of Apple's iPhone handsets at the end of 2007, having forecast sales of nearly 100,000.
The iPhone is different from other handsets, though, as operators don't subsidize its price.
Source: Cellular News.

Monday, January 21, 2008
Caribbean-based mobile telecommunications operator Digicel ended 2007 with more than 6 million customers. The company has also announced that its total investment exceeded USD 1.9 billion across the region and it has also opened new business operations in Suriname, Guyana and El Salvador. In December 2007, Digicel was also granted a mobile licence to operate a GSM network in the British Virgin Islands. The company also introduced a new line of mobile handsets called Coral that is accessible to consumers across almost all Digicel markets. Digicel is also expanding its customer offerings, continuing to roll out technology services such as its Personal Broadband Service through WiMAX technology.
Source: Wireless Federation.

Friday, January 18, 2008
The number of people with a mobile phone in Brazil climbed 21.08% in 2007 to 120.98 million, according to preliminary figures published by the telecoms regulator Anatel. Of the total, around 81% were pre-paid users and 19% were on monthly contracts, it said. Although the overall pace of mobile subscriber growth is slowing, Anatel noted that 4.66 million new customers were added in December alone.
Portugal Telecom and Telefonica’s joint venture wireless operator Vivo maintained its leading position in the sector with a market share of 27.68%, up from 27.60% in November, ahead of Telecom Italia’s TIM Brasil unit with 25.85% (down from 25.88%) and America Movil-backed Telecom Americas (Claro) in third with 24.99% (24.98%). The fourth place operator was Oi with around 13%.
Source: Telegeography, based on Anatel.

Thursday, January 17, 2008
Pakistan ended 2007 with 76.61 million mobile phone users, up from 74.59 million in November, according to figures from market regulator the PTA. Mobilink was market leader with 30.66 million customers, followed by Ufone with 16.66 million. Telenor Pakistan is third with 14.60 million, while Warid finished the year with 13.21 million. Mobile teledensity reached 48.42 percent at the end of the year, versus 39.94 percent at the start of 2007.
Source: Wireless Federation.
The launch of Etisalat in Egypt in the second quarter of 2007 was much anticipated, not least because more than eight years of duopoly in Egypt had seen the rate of mobile ownership climb to just one-quarter. At first glance, the addition of a third player appears to have energised the market, with net additions topping 3 million for the first time ever in Q2, and Q3 setting a new record of 3.73 million. The size of the total market stood at 26.99m at the end of September 2007, up from 15.87m a year earlier - a growth rate of 70%.
In addition, both Mobinil and Vodafone posted their highest ever figures for net additions since the launch of Etisalat, Vodafone claiming 1.32 million in Q2 and Mobinil 1.82 million in Q3. Of course, Etisalat itself also contributed to the growth of the market, gaining almost 0.7 million customers in Q3 to reach a total of 1.30 million, compared to 11.97 million for Vodafone and 13.72 million for Mobinil.
Egypt: Proportionate Customer Growth, Q4 04 - Q3 07

Etisalat's arrival has undoubtedly had a positive effect on the Egyptian mobile market, but the above figures may exaggerate the level of its impact somewhat. A glance at the proportionate growth rates yields a less dramatic picture. In each of the two quarters since Etisalat's launch, growth has been at around 16%, a respectable figure but not a particularly impressive one given that penetration was just 25.1% at the end of Q1. Moreover, when Etisalat's contribution is factored out the combined growth rate of the other two operators is around 13% in the first three quarters of 2007, which is roughly the same level as in 2005. Of course, there is a strong possibility that quarterly growth would have remained in the single digit figures recorded in Q1 and Q2 06 had a third player not launched, but this does not alter the impression that neither Mobinil or Vodafone has quite shaken off the ‘comfortable duopoly' mindset.
At the end of Q3, penetration in Egypt stood at just 33.5%. This is by far the lowest rate across the five North African nations, with Morocco in fourth place on 57.9% and Libya the most penetrated on 86.2%.
Source: Cellular News.
Morocco's Maroc Telecom has commercially launched a 3G/HSDPA service in the country's main cities the company has announced. The company was originally awarded a 3G license in May 2006, along with competitors, Medi Telecom and Maroc Connect.
The 3G coverage is currently available in the cities of Rabat, Casablanca, Mohammedia, Agadir, Fès, Marrakech, Kenitra, Tetouan, Tanger and Essaouira.
Figures from the Mobile World database reports that Maroc Telecom ended last September with around 12.8 million customers - and a market share of 66%.
Maroc Telecom, a 51% subsidiary of France's Vivendi, with the remainder listed on the Casablanca and Paris stock exchanges. The company also holds 51% of the historic operators in Mauritania (Mauritel), Burkina Faso (Onatel) and Gabon (Gabon Telecom).
Source: Cellular News.
After a comparatively quiet second quarter, the mobile market in the Middle East and Africa has bounced back with a record number of new customers. Over 32 million net additions were made in the three months to end September, some 2 million more than were connected in the previous best quarter, Q4 2006. As has been the case for most of this year, the bulk of the growth has come from Africa, rather than the Middle East, with Egypt, Nigeria, Kenya and South Africa producing the strongest gains. The most notable exception to this generality is Iran, where additional competition is spurring growth.
Since the last review of the region, there have been a number of adjustments to the data, most notably in Nigeria where the regulator has supplied new data on the market. The result is that Glo Mobile, the independently owned operator, is now credited with a larger share of the national total and in fact, market leadership. Its Q2 numbers have been revised upwards to just over 15 million, enough to give it fourth place in the region last quarter, ahead of MTN Nigeria. As a result of this, the proportion of the region’s customers connected to the ten market leaders has risen from around 43% to 47%. However, the regulator’s numbers show that there is a growing issue with inactivity in the country: of the 46.2m connections at the end of September, nearly 8m – or 17% - were inactive.
Top 10 MNOs by Customers

The list of the ten largest companies in the region is, once again, unchanged as far as constituents are concerned. However, there are several positional changes. The top two are not affected - Vodacom SA remains the market leader in the region, with 22.5 million active customers, ahead of TCI of Iran – but third and fourth have swapped places and last quarter’s seventh has dropped to ninth this time. Vodacom has undertaken a major cull of inactive connections in the last quarter, severing some 2.9 million from its list. In the light of this, it is no surprise that the registered base has dropped by some 1.3 million (to 23.3m) though of course, the activity rate has improved from 88.6% to almost 96%.
Second placed TCI continues to grow rapidly, encouraged by the arrival of genuine national competition in the shape of MTN Iran. TCI added 1.7 million new connections in the quarter to take its total to 19.5 million. On the face of it, this looks like a good result, but it has to be seen in context: this is in fact TCI’s slowest quarter for a year and MTN Iran bettered its 1.71 million total by the best part of 0.25 million, taking a majority of net additions for the first time. Third place in the region goes to Glo Mobile, which was sixth at the start of the year but has apparently now overtaken MTN Nigeria as the market leader. This move leaves STC, the Saudi number one, down in fourth place, with 15.8 million customers.
MTN subsidiaries take both fifth and sixth place this quarter, as they did last. MTN Nigeria is now the largest single unit within the group, ahead of MTN South Africa. The Nigerian company added nearly one million new connections to end the quarter with 14.99 million subscribers, while the South African company added 0.67 million, to reach a total of 14.1 million. The four remaining companies on the list are all in North Africa. Mobinil, the FT/Orascom joint venture in Egypt, has risen from eighth to seventh after adding 1.8 million new connections, while Maroc Telecom has also moved up one place and now has a total of 12.8 million. This leaves it marginally ahead of Orascom Algeria, which, despite adding over 700k new connections had fallen from seventh to ninth, with 12.7 million customers. The final place on the list goes to Vodafone Egypt, which, although it failed to match the pace set by Mobinil, nonetheless added an impressive 1.2 million new customers to close the quarter with 12.2 million.
Mobile ownership continues to spread across the region. At the end of June there were over 60 networks with more than one million customers; three months later that number has risen to over 70, with many of these being multi-million operations. All of the top 15 operators have more than six million customers and the three of these in 11th, 12th and 13th places overall - Algeria Telecom Mobile, Celtel Nigeria and Safaricom Kenya – have over nine million. At their current growth rates, all three will pass the ten million mark in the current quarter.
Source: Cellular News.
Caribbean based operator, Digicel says that it ended last year with more than six million customers, a total investment exceeding US $1.9 billion across the region and new business operations in Suriname, Guyana and El Salvador. The company's measurement is based on an approach of a subscriber only being defined as "active" if that subscriber had a chargeable event in the last 30 days.
"Digicel's progress in 2007 reinforced our position as the Caribbean's leading mobile service provider and demonstrated delivery of sustained growth in our current markets, strategically expanding operations in new markets and providing exciting, first-to-market technology innovations to all of our customers," said Colm Delves, Digicel Group CEO.
Significant inroads were also made by Digicel's sister company, Digicel Pacific. The company launched in Papua New Guinea in July 2007, and the Tonga operator TONFON was acquired in November while Digicel Samoa continues to enjoy steady growth. The Governments of Fiji, Vanuatu and several other countries in the Pacific have committed to license Digicel Pacific shortly.
"2007 was a phenomenal year of growth for Digicel," added Colm Delves. "As we look ahead to 2008, we are very excited about further strengthening our presence in current markets, strategically expanding our business operations in new markets and continuing to bring new technology innovations and products to all of our customers."
Source: Cellular News.
The number of mobile connections in Nigeria finished just 10k shy of 44m at the end of Q3 07, and penetration broke through 30% to finish on 32.4%. Net additions totaled 16.90m in the 12 months ending 30th September 2007 and annual growth stood at 62.4%, only marginally below the 63.6% rate recorded a year earlier.
In quarterly terms, the market grew by 14.6%, with a record 5.62m net additions.
Glo Mobile overtook MTN to become the Nigerian market leader in Q2 07, although it had edged ahead briefly in Q4 06 with a lead of 4k at the end of the year. At the end of June 2007 its lead was 1.1m, and three months later it had grown to 3.0m, with 18.01m customers to MTN’s 14.99m. In terms of market share, Glo posted a figure of 40.9% at the end of Q3, giving it a 6.8pp lead over MTN. Glo achieved this result through two excellent quarters with net additions of 2.77m in Q2 and 2.87m - its best ever result - in Q3. In total, it added over 8.55m new connections in the year, compared to 4.61m for MTN.
Nigeria: Quarterly Net Additions

In fact, as the above chart shows, Celtel has also had an excellent quarter, claiming a clear second place for net additions with 1.91m to finish the quarter with a total customer base of 9.88m. In proportionate terms, it posted a quarterly growth rate of 24.0%. The fastest growing operator in Q3, however, was CDMA operator Starcomms, which launched at the end of March. Although it has yet to make a significant impact on the market with just 0.9% market share at the end of Q3, it did claim top spot for quarterly growth with a rate of 28.9%. It finished Q3 just short of 0.4m customers. The fifth operator in the market is Nigerian Mobile Telecommunications (Nitel), which has been in decline for some time with three successive quarterly losses. At the end of Q3 07, it had 0.72m customers, having lost over 0.55m in the year. However, with new owners in place at Nitel, there is finally a glimmer of hope for this business and we will follow developments with a keen interest in 2008.
Source: Cellular News.

Tuesday, January 15, 2008
Spain added 182,263 mobile phone subscriptions in November 2007, taking the toal to 49.58 million mobile lines, or 110.9 lines per 100 inhabitants, according to telecommunication regulator CMT. Of the subscribers, 50.7 percent (92,407) signed with Vodafone, 30.2 percent (55,043) chose Yoigo, 10.9 percent (19,867) went with Telefonica Movil’s Movistar, and 1.6 percent (2,916) chose MVNOs. Mobile number portability rose by 7 percent to 328,455 lines in November 2007 compared to November 2006. Telefonica added 18,269 ported numbers and Yoigo added 18,150. Orange had lost 21,945 net lines to portability, followed by Vodafone with 12,131, Euskaltel with 359 and the remainder of MVNOs lost 1,987.
Source: Wireless Federation base on CMT.
Guatemala’s telecoms regulator Superintendcia de Telecomunicaciones (SIT) has announced that the country’s three cellular operators signed almost three million subscribers between them during 2007, ending the year with 10.15 million customers in total. The growth was fuelled by cut-price mobile packages hitting the market. The regulator says that Millicom subsidiary Comcel led the market at end-2007, closely followed by America Movil’s local unit, Claro. Third-placed operator Movistar, which is backed by Telefonica of Spain, claimed around 25% of all subscribers.
Source: Telegeography, based on SIT.

Monday, January 14, 2008
APA – Douala (Cameroon). Over five million Cameroonians or more than 40 percent of the population have access to fixed and mobile telephony, the Telecoms regulatory agency (ART) revealed Thursday.
These are the aggregated figures as of 31 December 2007 from the country's three telecoms operators - the state-owned fixed and cellular operator Cameroon Telecommunication (CAMTEL), as well as French Orange and South Africa's Mobile Telephon Network (MTN), two multinational outfits specialising in mobile telephony.
ART director Jean-Louis Beh Mengue said "the migration to 8-digit numbers six months ago opened new prospects for the development of telecommunications in Cameroon."
The new numbering scheme, which has a capacity of 80 million lines, is expected remain operational until 2030.
ART said other entrants could join the markets, especially in the mobile sector.
The regulator aims at streamlining the market with sanctions on illegal V-SAT operators.
A 2008 action plan prioritises the launch of a space segment, infrastructure mutualisation, as well as reduced costs of telecoms.
Currently, a minute's call costs an average 180 CFA francs, with 200 CFA francs in peak hours and 160 CFA francs during low traffic, while SMS messages remain unchanged at 60 CFA francs.
Sources said the number of cellular subscribers is 5 million, against 400,000 fixed line registered users.
Source Cellular News.
South Korea's Korean Investment Services has reported that during 2007, the three local mobile operators had net additions numbering 3.3 million. Considering annual net additions were only 1.76 million in 2005 and 1.86 million in 2006, the 2007 result was quite exceptional, caused by stiff competition for subscriber attraction and 3G marketing.
Although all three companies could not avoid seeing eroded profitability due to higher marketing costs, sign-ups gained in 2007 should contribute to sales growth from 2008.
SK Telecom and LG Telecom were relatively strong in subscriber attraction over the last year. In particular, as SK Telecom sought to defend its market share of 50.5% from the beginning of last year, its annual market share of net additions exceeded 50% for the first time since 2003. LG Telecom was also successful with 0.8 million net additions by focusing on 2G subscriber attraction in contrast to KTF, which concentrated its marketing efforts on early 3G services.
Handset sales: Dropped slightly MoM

In December, the number of mobile telecom subscribers reached 43.5 million with the service penetration rate up to 89.3%.
The number of 3G service subscribers grew by 0.9 million in December to reach 5.7 million, or 13.1% of all mobile signups. SK Telecom attracted 466,314 net additions to its 3G service, beating KTF’s 431,108 for the fourth straight month. In cumulative numbers, SK Telecom and KTF have 2.5 million and 3.2 million, which account for 9.3% and 20.3% of total subscribers, respectively.
The research firm said that it expects that the cumulative numbers to reach 16.5 million by the end of 2008 and 27.5 million by 2009. LG Telecom, which should start full-fledged 3G service this year, should accelerate the migration.
Source: Cellular News.
Tigo, the GSM network operator in Ghana said at a recent press conference that its subscriber base has now passed the two million mark. This compares with roughly 3.9 million for the largest operator in the country, MTN. The company attributed its subscriber growth to efforts to reduce congestion on the network last year.
|
Mr. Ransford Nyarko, the Marketing Manager of Tigo said that "this is not to say that apart from the peak season Tigo does not have the capacity to reduce congestion before and after the peak season."
In an interview with The Chronicle, the Cooperate Affairs Manager of Tigo, Ms. Anita Erskine said, the success story of Tigo is base on the fact that the network engineering has being improved and as well as intense marketing also contributed to the current success.
|
Figures dated last September from the Mobile World record that ScanCom/MTN ended with 3.87 million customers - followed by Millicom/Tigo (1.5 million), Ghana Telecom (1.44 million) and finally Kasapa Telecom with 248,000 customers.
Source: Cellular News and the Chronicle.
Click here to see full article

Thursday, January 10, 2008
Ecuador finished November with a total 9.814 million mobile subscribers, according to market regulator Suptel. Porta remained the largest operator, with 6.75 million customers versus 5.45 million a year earlier. Movistar’s base grew to 2.63 million from 2.41 million, and Alegro increased its subscriber numbers to 429,000 from 326,000. Since September, Suptel has applied a definition of subscribers as active when using services in the past 90 days.
Source: Wireless Federation, based on Suptel Report.

Wednesday, January 09, 2008
At the end of September, there were 20 networks in the world with more than 30 million customers. Eight of these were in the Asia Pacific region including the largest and the second largest. Six of the 20 come from just two countries, China and India, and these six together account for over 650 million customers, or nearly 21% of the global total.
In previous issues, when reviewing this region, we have noted that the weight of demographics limits the number of changes in the order of the top ten operators and this continues to be the case. The one change this quarter is that Bharti has now overtaken Telkomsel in Indonesia to take fourth place with a total of 48.9 million customers at the end of the period. It is poised to jump another place in the current quarter (at DoCoMo's expense) as the recently-published November numbers show the Japanese operator has added just a handful of new customers since the end of the quarter, to stand at 53.03 million, while the Indian number one has taken on a further 4 million to reach 52.96 million, less than seventy thousand below the company that was for almost all of the last century the clear global leader.
Asia Pacific, Leading MNOs (m)

Click here to see full article
|
DoCoMo's reign came to an end after mergers in China brought a sufficient number of provinces into China Mobile's orbit. That was seven years ago, after which China Mobile went on to become not just the largest national operator but the largest mobile company overall, measured by customer numbers. It retains that position today and as before, China Unicom is still in second place in the league of national operators. Only regulatory intervention or some extraordinary reorganisation is likely to threaten China Mobile's dominance, but rumours of dismemberment continue to surround Unicom and the company's management has issued a press release denying any imminent structural change. One suggestion which seems plausible is that the company will divest its CDMA network, ahead of a formal decision on 3G, with China United being tipped as the possible buyer. This would create a major new force in the region, as the CDMA company is, in its own right, the 12th largest network in the world.
Of the other companies in the regional top ten, two are Japanese (the other being KDDI, in ninth place, with 28.7 million customers), one is Indonesian, one Pakistani and the remaining four Indian. These are shown in the graph below: we have truncated the scale to allow a more meaningful comparison between China Mobile and all the rest.
Source: Cellular News.
|

Monday, January 07, 2008
Bangladesh's telecoms regulator, the Bangladesh Telecommunication Regulatory Commission has published subscriber data for last November, as supplied to them by the operators. The country itself ended the month with 33.1 million subscribers, which equates to a population penetration level of around 22%. The market added a net 770,000 new subscribers in the month of November.
Grameenphone remains the market leader by a considerable margin, with 16.01 million subscribers. Second and third place are almost neck and neck, with Aktel on 6.53 million and Banglalink a shade behind on 6.51 million.
The remaining three operators are Warid (1.95 million), Citycell (1.38 million) and last is Teletalk with just 720,000 subscribers.
Source: Cellular News.
Uruguay added 1.43mn mobile lines in the first eleven months of 2007 to total 3.2mn, local newspaper El País reported.
At the end of 2006, the country had 2.05mn mobile lines.
At the end of November, Ancel, the mobile unit of state-owned telco Antel, had 1.25mn subscribers, Telefónica unit Movistar Uruguay had 1.2mn subscribers while CTI Móvil, a unit of Mexican giant América Móvil, had almost 746,000.
Click here to see full article
|
Carlos Blanco, analyst with Signals Telecom Consulting, said 2007 was the first year in which mobile telephony contributed more revenues than fixed, adding that mobile operators were now challenging Antel's dominance of broadband services.
According to Blanco, the mobile operators offer similar broadband speeds and rates with 3G as Antel does with ADSL but they have the added advantage that their service is available on mobile devices.
In December, local telecoms regulator Ursec gave additional numbering to operators Movistar and CTI Móvil.
Signals Telecom Consulting has predicted Uruguay will end 2007 with a mobile penetration rate of 76.5%, which is likely to grow to 100% by 2011.
Source: Cellular News.
|
The declining prices of mobile handsets and low connectivity costs have helped in doubling internet access through cellphones this year.
The latest Telecom Regulatory Authority of India (Trai) figures showed that the number of Indians using their mobiles (both GSM and CDMA) to access the internet has more than doubled from 16 million in 2006 to 38 million in 2007.
There were 2.69 million broadband subscribers as on October 30 this year. Besides, of the 22 million PCs in the country, around 30-40 per cent have internet access.
Click here to see full article
|
This implies that internet access through mobiles is at least three times more than that through PCs and nearly 19 times more than broadband. The GSM and CDMA players registered a double-digit growth in users accessing the internet through mobile phones. Among the 50.91 million Bharti-Airtel subscribers, as on Oct 2007, about 35 per cent access the internet through their handsets. “Around 10 per cent of this user base accesses the net through mobile handsets in any quarter,” said a company spokesperson. The company said the user base has been doubling over the last three years. In the last 12 months alone, thee has seen a 70 per cent growth in this user base. Anil Ambani-owned Reliance Communications (RCom) claims that 10 million users visited its Reliance Mobile World every month since July 2007 to try out new applications. Krishna Durbha, head business and marketing, application solutions and content, RCom said, “This shows a tremendous interest among the people to use mobile devices to access the internet. We believe this is growing at a conservative estimate of 10-15 per cent across industry.” Analysts said the next stage of growth would be the usage of data on handsets. The mobile data revenues are expected to outpace those of voice services and contribute to about a fifth of the total revenues in the country by 2011, doubling year on year, said research firm Gartner. Mukul Khanna, vice president, Spice Telecom, said, “Data usage is becoming a large pie in value-added services. Its growth rate will be 50-60 per cent more than that of traditional content in the next few years.” Spice Telecom recently launched Spice TV for its subscribers. While subscribers can watch live cricket matches on their handsets (it is the official telecom partner of Indian Cricket League), they can also view NDTV, Times Now, Zoom and cartoon networks. “About 10-15 per cent of Spice’s total user base browses the net through handsets. We are expecting at least 25-30 per cent to do so in the first three months,” added Khanna. The choice with regard to content is restricted to checking e-mails, search, downloading ringtones, wallpapers and images, games, e-ticketing and instant messaging.
Source: Wireless Federation.
|

Friday, December 21, 2007
Although the 100% penetration level was reached in Q1 of this year, mobile growth has not slowed to any great extent and in fact, the third quarter saw more new connections than either of the earlier quarters, with 20.14m new connections, against 14.5m in the second and 16.3m in the first. Curiously, the 20m figure is almost exactly the same number as in both Q3 06 and Q3 05, when net additions totalled 20.4m and 20.2m respectively.
If the normal seasonal pattern is repeated in Q4, then the final period of the year should see something between 25-30m new connections, enough to take penetration up to 110%. This reflects the fact that it is now quite commonplace to have more than one mobile account - one for work and another for domestic use. Add to this a small but growing number of machine to machine SIMs and a steadily increasing number of datacards or 3G USB devices, remove inactives where appropriate and clearly, there is no immediate prospect of a cessation of growth.
Top 20 European MNOs by Customers

Click here to see full article
|
At the end of the second quarter, Europe's ten largest MNOs had a combined total of just over 270m customers, or nearly 40% of the total market. After a couple of minor restatements, that now emerges as 269m, or 39.6%. This number has crept up to just under 275m at the end of September, while the proportion has continued to drop, to 39.2%. This reflects a steady, if un-dramatic, broadening of the customer base across a growing number of operators. In fact, only one the ten largest MNOs increased its share of the European total (Kyivstar in Ukraine, by 0.6%) but even here, the rise reflects a bounce back from the poor second quarter performance, when the company lost 0.8%. Only two others - Vodafone's subsidiaries in Italy and Turkcell - maintained their overall market share (at 4.16% and 4.97% respectively) while all the others experienced a drop.
Worst affected was T-Mobile Germany, which gave up 125bp of share, from 5.05% to 4.92%.
In fact, T-Mobile's German business actually added to its overall base and remains the clear market leader in Germany, but not in Europe. Once again, TIM Italy has recaptured the lead in the market and it is now the only operator in the region with more than 5% of the European market. T-Mobile has in fact fallen to third, as Turkcell equalled TIM's 1m new connections to take second place with a total to 34.8m.
There is only one other change in the top ten, Kyivstar moving up from eighth to swap places with Telefonica Spain.
Broadening the focus, to the top 20, we see the same basic trends. The largest 20 operators account for 61.5% of the European total, compared to 62.0% at the end of both March and June, which translates to an absolute value of 430.6m. Perhaps surprisingly, there is only one change in the bottom half, with Vodafone Turkey and WIND Italy swapping places. At the end of June, Vodafone Turkey was in 17th place while WIND was in 14th - after the former added nearly 800k new connections and the latter, just 100k. The chart below shows the top 20 over the last three quarters.
Turning next to the quarterly growth rates, all ten companies on the list of the fastest growing operators added more than 0.5m new connections in the quarter, with four adding one million or more.
The company with the greatest number of new connections was one of the smaller European operators, Astelit in Ukraine, which added 1.3m new customers to its base, to take its total to 7.6m. However, this number shrinks somewhat if active numbers are used and on this more conservative basis, the increase was just 0.7m - still enough for a top ten place but not first. Kyivstar of the Ukraine came second, with 1.06m adds, which was nearly, but not quite enough to maintain is share of this volatile market. TIM and Turkcell both connected one million new customers to share third place. Below these four come three Vodafone subsidiaries, from Germany, Italy and Turkey, which added 920k, 840k and 780k respectively to take their totals to 32.5m, 29.1m and 15.7m. In eighth place, Orange Romania didn't quite manage the three quarter million mark, with 0.74m adds, while both E-Plus and O2 Germany, in ninth and tenth place, added 0.65m and 0.61m respectively.
On reflection, these are impressive numbers for businesses that are operating in a 100%+ market.
Source: Cellular News.
|
We have recently updated our forecasts for the Chinese market and like many of you we are following the prospective development of high-speed networks closely. Since Q1 2005, China has been growing at an average of 4% quarter on quarter. Contrast this with a more mature market like the USA which has averaged 2% growth on a quarterly basis since Q3 last year. Today, China represents 40% of Asia Pacific cellular connections, and 16% of the World cellular connections. If the market follows the pattern we believe it will next year, it can add another 100 million connections and reach 46% market penetration in just 5 more quarters.
Figure 1: China: Cellular connections and market penetration

Click here to see full article
|
China Mobile has been reporting quarterly growth around 21% year on year since Q1 2007 and has already passed 350 million connections. China Mobile is a telecom giant and this success is mainly due to its expansion in rural areas. In contrast, most Western operators are focusing on customer base retention as they compete in markets with penetration often above the 100% mark.
2007 was the year of intense focus surrounding which technology Chinese operators should adopt to launch high-speed services. We expect 2008 finally to be the year of implementation and predict the Chinese government will issue 3G licenses in early 2008. China Mobile has invested in TD-SCDMA network, trialling the homegrown network in 10 of the biggest cities. We can expect China Mobile to launch a series of new services running on the high-speed network in time for the Olympics Games in Beijing, next Summer. In that case, and assuming a fast deployment of the network across the country starting mid 2008, the operator’s TD-SCDMA subscriber base could represent 5-6% of its total connections by 2010.
Figure 2: China Mobile: Technology migration

As an illustration of the opportunities around data usage in China, China Mobile has generated, from its GSM network, 13.8 billion RMB from non-SMS data business overt the first half of 2007. It has also increased MMS usage by 77.5% between 1H2006 and 1H2007. Migrating to TD-SCDMA is an opportunity to generate high revenues from data services such as Internet access and video calling. Such scenario assumes that devices are ready on time for next August, widely available and affordable. A number of manufacturers, from ODMs to OEMs, are already showing devices coming out of their TD-SCDMA platforms, some already looking like the notorious iPhone.
High-speed services: A tale about network coverage
Network coverage is the fundamental factor that will drive the mass adoption of high-speed services, by means of an example, we look at AT&T in USA. Increasing WCDMA network coverage has focussed on the biggest urban areas. For instance, a look at the AT&T coverage map of the US territory gives a clear view of its WCDMA coverage.
Figure 3: AT&T Mobility: Coverage map, USA

Increasing CAPEX in order to improve network coverage is crucial for an operator which aims at offering a wider range of data services. For that matter, AT&T has recently announced a plan to deploy and increase capacity of its WCDMA network during the first half of 2008. This strategic move follows the recent focus on AT&T’s WCDMA HSPA launched in early 2007. By improving its network coverage, AT&T’s WCDMA cellular connections are expected to take over GSM connections by 2010. WCDMA HSPA connections can account for more than half of the total WCDMA connections by that time frame.
Figure 4: AT&T: Technology migration

In a press release published in early December, AT&T announced that 'since 2004, the company has invested nearly 230 million USD on wireless network enhancements to expand coverage, add capacity and grow its 3G network in South Carolina'. However, in Q4 2006, the operator's CAPEX reached over 2 billion USD and its recurring revenues over 8 billion USD. This would suggest that since 2004, AT&T's network expansion would represent just over 10% of its capital expenditure.
China Mobile 2007 CAPEX budget is just below 100 billion RMB, and aims at attracting new customers, launching new data services and improving network coverage. Over the first half of this year, the operator’s CAPEX represented 30% of its operating revenues.
Source: Wireless Intelligence.
|

Thursday, December 20, 2007
Brazil was home to more than 116.3 million mobile phones at the end of November, up 1.4%, or 1.62 million, from the end of the previous month and 19.5% higher than the figure recorded at end-November 2006, according to data published by the telecoms regulator Anatel.
Source : Telegeography based on report from Anatel.
The vast majority of Europe's mobile customers are contained within its eight largest markets – France, Germany, Italy, Poland, Spain, Turkey, Ukraine and the UK. Together, these account for nearly 500m of the 700m total, or just over 70%. The largest of these is Germany, with a total of 89.15m at the end of the quarter, while the smallest is Poland which closed the period on exactly 40m mark.
However, there are marked differences in penetration levels across the eight and also, some notable differences in growth rate.
Italy remains by far the most heavily penetrated market, with a level of ownership equating to some 143% of its population, nearly 25ppts more than the second country on this list, Spain. Both are obviously popular holiday destinations, which, given the quarter in question, might inflate the numbers to a degree but thee is little evidence to support this - certainly, neither market has ever seen a fourth quarter slump of the kind that we see in some of the Balkan states.
Subscriber base - Q3 06 – Q3 07

Click here to see full article
|
During the quarter, France took Turkey's place at the bottom of the table. It has been the slowest growing of the eight for several years now and only showed a 0.1ppt improvement in this period, to close at 82.2% penetration. Quite why it should be so far below Italy (60.5ppts) or indeed Germany (26.0ppts) remains a mystery - it is not as though the French are taciturn by nature. It is one of only two markets in Western Europe with a penetration of less than 100% (the other being Belgium) and at the current rate of growth, the 100% mark will not be reached until the Christmas quarter of 2011.
Italy is interesting in that it seems to add about 3ppts of additional penetration in each quarter, almost irrespective of circumstances. None of the other markets are quite so consistent, though the UK and Poland both come close. Perhaps the other highly here is what is happening in Germany - for years, this was one of the dullest markets in Europe, with sub-100 penetration, despite an early start (cellular services were first launched in September 1985).
Penetration rates - Q3 06 – Q3 07

Having broken through the 100% barrier, Germany appears to be accelerating, with over 3ppt gains in both of the last two quarters. Another year at the same pace and it may well overtake the UK.
Between them, these eight markets added 13m new customers in the quarter (65% of the European total) but as the previous paragraph might imply, this growth was by no means evenly distributed. The French market increased by just over 74k, one tenth the gain seen in Spain, which was itself the second slowest growing country. Elsewhere, the level of growth ranged from 1.3m in Poland to 2.6m in Germany. Proportionately, the Ukraine heads the list, having added over 5ppts of penetration in the quarter alone. Unsurprisingly, France takes last place.
Source : Cellular News.
|

Wednesday, December 19, 2007
APA-Bangui (Central African Republic) At least three mobile telephone operators provide services in each member-state of the Central Africa Telecoms Regulations Association (ARTAC) and telephone penetration has reached 13.2 percent.
ARTAC chairman Valeri Saï said in Bangui on Thursday that about 93.3 percent of the telephone owners are mobile telephone consumers and 1.7 percent fix telephone users.
He was speaking at the second general assembly of the ARTAC, which opened on Wednesday in Bangui.
Click here to see full article
|
Saï said the sub-region has made some progress with the opening of the telecommunication market to competition, noting that the sub-regional operators use their foreign partners’ services to sell their intra-community traffic.
"The volume of the intra-community traffic is not high. It falls on us to ponder on the ways and means to improve the sub-regional indicators," he said.
Central African Republic Telecommunications Minister Fidel Gouandjika urged the ARTAC to use telecommunications to achieve regional integration and ensure a balance between the market requirements and national interests.
Gouandjika said the member-states should embark on eliminating problems hindering free competition to enable the sub-region to become a leader in the digital revolution.
Created in November 2004, the ARTAC regroups the member-states of the Central African Monetary and Economic Community (CEMAC) and the Economic Community of Central African States (CEEAC). Telephone penetration reaches over 13 percent in Central Africa.
Source: Cellular News based on ARTAC.
|
The island nation of Cape Verde is due to get a second GSM network next week when T+ launches its services on the main island of Santiago - with national coverage due by the second half of 2008. The country currently has a monopoly operator, Cabo Verde Telecom.
The chairman of the board of the company, Marco Bento, told MacauHub that T+ would offer "competitive prices" and would be an alternative for mobile communications.
T+'s shareholders are Teylium Telecom (70%), Alexander group Telecommunications (15%) and Marco Bento (15%). Ericsson provided the network infrastructure.
T+ plans to invest US$50 million over the next three years, including US$15 million for 2007-2008 and plans to create 100 direct jobs and 500 indirect jobs.
The Mobile World reports that the incumbent operator, Cabo Verde Telecom had 134,000 subscribers at the end of September 2007 - which equates to a population penetration level of 32%.
Most of the nation's GDP comes from the service industry. Cape Verde's economy has grown since the late 1990s, and it is now considered a country of average development. Cape Verde has significant cooperation with Portugal at every level of the economy, leading it to link its currency first to the Portuguese escudo and, in 1999, to the euro.
Map of Cape Verde

Source: Cellular News based on Mobile World, MacauHub and T+.
The number of mobile subscribers in Senegal reached 3.434 million at the end of September, up from 3.320 million in June and 2.641 million a year earlier. According to the figures from market regulator ARTP, mobile penetration reached 32.46 percent and 99 percent of mobile customers were prepaid users. Orange is market leader with 2.443 million customers, up from 2.401 million in June, while Sentel, part of the Millicom group, increased its base to 991,631 in September from 918,830 in June. On the internet market, just 0.33 percent of the population or almost 35,000 people were registered users. Of the total, 96 percent used ADSL. Fixed-line penetration meanwhile was at 2.63 percent, or 278,119 lines, and has been falling for the past six months.
Source: Wireless Federation, based on figures of ARTP.
The top 10 network operators in the Caribbean & Latin America region now all have over 10m customers as 10th placed Telecom Personal of Argentina crossed the 10m customer barrier in the quarter. The composition and order of the top 10 has remained unchanged throughout 2007, with Telecel in Mexico leading from Vivo and TIM in Brasil. Telcel has pulled ahead of its rivals, extending its lead over Vivo from 12.0m customers at the end of September 2006 to 16.2m customers a year later, whilst TIM closed the gap between it and its domestic rival from 4.6m to 2.2m customers during the year.
The top five operators - the ranking completed by Claro in Brazil and Comcel in Colombia - all have more than 20m customers and together had a base of 157m customers at the end of Q3 2007, a year on year increase of 16.9% - some way short of the 23.8% regional average.
The operators occupying positions five to ten in the ranking were considerably faster growing, pushing up the annual growth rate to 20.7%, although this still meant that the proportion of the continental total accounted for by the top 10 fell from 62.9% to 61.4% over the course of the year.
Top 10 Operators by Customers

Click here to see full article
| In terms of net additions, Telcel Mexico also claimed top-spot with 6.80m in the year to 30th September - almost 1m more than second placed Claro Brazil which recorded 5.81m new connections. TIM Brazil was in third place with an increase of just over 5m, whilst Brazilian market leader Vivo was way down in eighth place with just 2.59m net additions in the 12 month period. America Movil's Colombian subsidiary Comcel was the most notable under-performer, claiming ninth place with 2.50m net additions. All of the members of the top 10 ranking of markets by customer numbers make an appearance in the top 10 ranking by annual net additions, with the exception of Telemar (TNL PCS) in Brazil, which found itself 11th for the year ending September 2007.
Top 10 Operators by Net Additions Q3

Taking its place in the top 10 at number seven was Telefonica Moviles Peru, the region's 14th largest operator by customers. Telefonica's Peruvian business did even better in the net additions ranking for the third quarter, attaining sixth place with 0.86m new customers, and beating its much larger Mexican sister business which registered 0.84m net additions in the process. Giving way this time was CALA's tenth largest operator by customers, Telecom Personal of Argentina, which fell to 15th in the quarterly ranking with 0.28m new connections.
Top 10 Operators by Net Additions Year to Date

Leading the quarterly ranking was America Movil's Claro Brazil with 1.73m new customers, from rival TIM with 1.68m. Telcel Mexico was third with 1.40m, ahead of a revived Telemar with 1.27m in fourth place and a resurgent Vivo in fifth place with 1.08m. In addition to the Telefonica businesses in Peru and Mexico, CTI Argentina, Telefonica Argentina and Comcel Colombia round off the top 10 in eighth, ninth and tenth places respectively.
Source : Cellular News. |

Thursday, December 13, 2007
ALGIERS (AFP)--Algeria has 25 million mobile phone subscribers, compared with just 54,000 seven years ago, the minister for the post and telecommunication services said Monday.
The penetration rate has now reached 75% of the population, according to a tally compiled at the end of September by industry-sector firms. In 2000, before the liberalization of the state monopoly in the telecommunications sector, the figure stood at 0.26%.
The blossoming of the industry is a result of fierce competition between the three operators in the country, which spent $47 million promoting their products, according to the minister, Boudjemaa Hiachour.
Those three competing operators are Mobilis, subsidiary of the former state operator Algeria-Telecom; Djezzy, subsidiary of the Egyptian conglomerate Orascom; and Nedjma, subsidiary of the Kuwaiti firm Watanya.
Djezzy claims more than 12 million network subscribers, with Nedjma on around four million. Mobilis currently has 9.5 million users, its commercial and marketing director, Lounis Belharath, told AFP.
Meanwhile, according to Hiachour, Algeria now has around three million fixed-line telephone subscribers, compared with 1.6 million in 2000.
By the end of September nearly 120,000 Algerians had high-speed Internet connections, with a total of four million being connected to the Web.
Source : Cellular News, based on the statement of Algerian Government.
The Dominican Republic ended the third quarter of 2007 with an overall telephony penetration rate of 65.5%, including both fixed and mobile lines, the country's telecoms watchdog Indotel said in a statement.
The country ended September with 903,335 fixed lines in service resulting in an overall penetration rate of 9.9% while penetration of mobile telephony reached 55.6%.
The country ended the period with 287,163 internet subscriptions meaning penetration of 18.1%.
Source: Cellular News, based on the statement of Indotel.

Wednesday, December 12, 2007
Japanese mobile operator Softbank Mobile again led in subscriber additions in November, adding 191,600 new customers to end the month with a total of 17.40 million subscribers. Figures from the Telecommunications Carrier Association further show that Softbank was followed by KDDI, which posted net adds of 65,400 comprising 107,200 new au subscribers while the company shed 41,900 TU-KA customers, in-line with the termination plans. KDDI had 29.01 million au subscribers and 399,000 TU-KA users at the end of the month. NTT DoCoMo added 36,300 new subscribers, of which 15,300 were 2in1 subscribers, to reach a total of 53.02 million. DoCoMo ended November with a total of 183,100 2in1 subscribers. The 2in1 service allows a single mobile user to have two phone numbers and e-mail addresses for a flat monthly fee. Newcomer Emobile saw its mobile customer base stable at 122,300. Together, the mobile operators added 305,100 new customers and there were 99.97 million mobile users in the country. The number of PHS users in the country fell by 56,300 to 4.85 million. Willcom lost 21,600 customers to end the month with 4.60 million and NTT DoCoMo, which plans to terminate its PHS service next year, shed 34,700 PHS subscribers and now has a total of 251,800 PHS users.
Source : Wireless Federation, based on figures from Telecommunication Carriers Association.

Monday, December 10, 2007
By 30th September 2007, about 7.7 millions Tanzanians had a telephone service according to figures published by the regulator, the Tanzania Communications Regulatory Authority (TCRA). This is an increase of about 12% from June 2007. Mobile telecommunication is by far the largest part of the market (98%) compared to fixed line services (2%).
While the population of Tanzania is growing at the rate of 2.7% annually, the annual number of Tanzanian buying a telephone service is growing at an average rate of 47%. However, at least 80.6% of Tanzanians still do not have a telephone service.
Market share amongst operators has remained broadly stable. Vodacom is leading the market in terms of number of subscribers with 48% of all subscribers (50% last June). Celtel ranks the second with 29% (28% last June) followed by Tigo with 13%, (12% last June), Zantel (7%, the same as in June) and TTCL with 3% (2% last June).
Source: Balancing Act 383, 07.12.2007.
The number of SMS message send by Germans is expect to grow from 22.5 billion in 2006 to more than 23 billion during this year, according to the German federation for ICT and new media Bitkom in a release to celebrate the fifteenth birthday of SMS. The average number of SMS message sent by German inhabitants has grown from 44 in 1999 to 280 in 2006.
Source : Wireless Federation, based on Bitkom
release.
The Dutch mobile market is on track for 5 percent growth in services revenues in 2007, but could see a slowdown in 2008. In the third quarter of 2007, mobile services revenues grew 1.1 percent from Q2 and were up 4.3 percent from a year earlier, to a total EUR 1.620 billion. The market added 471,000 new customers in the quarter, for a total 18.914 million at the end of September.
Market leader KPN had the best performance in terms of subscriber additions in the quarter with 293,000 new connections, while number two Vodafone added just 2,000 new customers. T-Mobile also underperformed, adding just 1,000 new customers, while its merger partner Orange gained 38,000 customers, of which almost half were postpaid. MVNOs such as Tele2, UPC and Lycamobile also performed well in postpaid, boosting their combined postpay market share to 4.7 percent from 3.1 percent a year ago.
Revenue growth in the third quarter came from the postpaid market, which posted a 7.0 percent rise in services revenues compared to a year ago, to EUR 1.37 billion. Prepaid revenues were down 8.6 percent from a year earlier, with all four network operators showing lower prepay revenues. Non-voice services such as SMS and data also helped revenue growth in Q3, increasing 21.6 percent from the year-earlier period to EUR 337 million. Voice revenues meanwhile fell versus Q2 and showed only a small rise year-on-year, to EUR 1.28 billion.
Source: Wireless Federation.
The Canadian market looks set to reach 20 million customers by the end of the year, having added 0.54 million customers in Q3 to hit 19.54 million at the end of the quarter. Traditionally Q4 is the strongest quarter of the year, so it will be surprising if Canada does not break the 20 million barrier in the current quarter. This impending milestone should not be treated with anything like jubilation, however, since the Canadian market is still extremely underpenetrated by reference to its socio-economic peers, with a rate of just 58.4% at the end of Q3. Since Q3 06, penetration has only risen by 4.2pp, and the total market has grown by just 8.7%.
In terms of market rankings, nothing has changed since the end of Q3 06.
Rogers remains the market leader having broken through the 7 million barrier in Q3 to finish the quarter on 7.16 million, while closest rival Bell Mobility surpassed 6 million to finish on 6.02 million. Third-placed TELUS had 5.41 million customers at the end of Q3 while regional operators Sasktel and MTS had 0.43 million and 0.38 million respectively.
Click here to see full article
|
Quarterly Customer Growth, Top Three Operators, Q2 06 - Q3 07

Although the market remained clearly segmented with no sign of any imminent changes, there has been some movement in terms of the gaps between the top three operators. At the end of Q3 06, the difference between first-placed Rogers and second-placed Bell was almost exactly the same as that between Bell and TELUS, at just under 0.83 million. Since then, Rogers has extended its lead over Bell to 1.13 million, while TELUS has narrowed the deficit between it and second place to 0.62 million. Its annual growth rate of 10.9% was the highest in the market, and was almost double that of Bell (5.6%). Rogers posted a respectable 9.5%, while its quarterly rate of 3.5% was the best of any operator in 2007 so far. Moreover, quarterly net additions of 243k almost matched the Q4 06 figure of 245k. Both TELUS and Bell were well behind with figures of 135k and 137k respectively, although Bell will be delighted with this result since it is the first quarter in which it has beaten TELUS since Q2 05.
In terms of annual net additions, however, TELUS is still well ahead with 532k compared to Bell's 317k - although market leader Rogers leads the way with 621k.
As the chart shows, Rogers was by far the fastest growing of the top three in Q3 07, repeating its performance of Q3 06. Despite beating TELUS in terms of net additions, Bell did not manage to outpace its rival in terms of proportionate growth, recording a rate of 2.3% to TELUS's 2.6%. The chart also shows that all three operators are subject to the same seasonal variations, but TELUS has put in the most consistent performance of the three, taking first or second place for quarterly growth in each of the past six quarters.
This is even more impressive given that it has a significantly higher blended ARPU than Bell, with a quarterly average of Can$64.8 per month at the end of Q3 compared to Bell's Can$56.0. Having said that, Bell has shown a Can$3 improvement compared to Q3 06, while TELUS has lost Can$0.9. Moreover, Bell's Q3 07 figure was its highest ever. Rogers does not release a blended ARPU figure, but its contract and prepaid figures both represented record highs of Can$75.2 and Can$18.2 respectively. As we commented in Issue 79 of The Mobile World Briefing, it is imperative for the operators that they maintain this growth in ARPU in the absence of significant expansion in their customer bases.
Having said that, by this time next year the criteria for success in the Canadian market may have altered quite dramatically, since the Canadian government has recently announced that it is preparing to allow the entrance of a fourth nationwide operator, with a spectrum auction pencilled in for May of next year.
Source: Cellular News.
|

Thursday, December 06, 2007
GSM customer numbers in North America topped 100m in early September to reach 100.52m by the end of the third quarter, 1.97m up over the three months. Connections to networks operating using the global standard have more than doubled in number over the last three years, having stood at just under 50m at the end of Q3 2004. Over that time-frame GSM has been without doubt the fastest growing technology in the North American market; however, over the last year it has in fact been the slowest growing. In the year to 30th September, GSM customer numbers rose by 9.7%, which is the lowest ever recorded growth rate for the technology, and the first time the annual figure has dropped below 10%.
Before CDMA stalwarts get too hot under the collar, however, we should point out that this is of course because of the huge increase in W-CDMA 3G customers in the US market. Taking the GSM and W-CDMA bases together, the increase in customers amounted to 16.8% in the year to 30th September 2007 - well above the regional average growth rate of 10.2% and 1.2pp in excess of the percentage increase in the number of CDMA customers in North America over the 12 month period.
Click here to see full article
|
Customers by Technology, Q3 04 - Q3 07

The growth rate in the CDMA customer base improved from 14.9% for the 12 months ending 30th June to 15.6% for the 12 months ending 30th September, taking the total base to 136.6m at the end of Q3 2007. CDMA customers make up the 51.0% majority of customers in North America, a proportion that has risen from 48.6% over the last year after the above average growth in subscriber numbers. However, GSM/W-CDMA networks did almost as well, despite starting with a customer base only just over three quarters the size, accounting for 40.2% of the North American market by customers at the end of Q3 2007, 2.3pp on the year before.
The above average growth in both the CDMA and GSM families is of course explained by the fact that North America has not one but two legacy technologies in decline. In the year to 30th September there was a 60% reduction in AMPS/TDMA numbers to under 4m and also a 14.6% decrease in iDEN numbers to under 20m.
3G Customers by standard, Q3 04 - Q3 07

If we were to include SprintNextel's "dual technology" handsets in the United States (which we currently count as CDMA, this being the other technology) the iDEN figures would look a little more healthy, but the trend is undeniable. Strictly speaking there is also a third atrophying technology in the North American region in the form of the NMT standard network still operating in Greenland, although this played host to only 850 or so customers at the end of Q3 2007.
The fastest growing technology in the region in the year to September was W-CDMA, despite having only two active supporters in the form of AT&T Mobility and Rogers Wireless. Given that the base a year ago amounted to just 0.44m, however, this feat is hardly surprising.
AT&T accounts for the vast majority of the growth and has done a tremendous job this year, increasing the size of the base in the first nine months of the year almost ten-fold. Customer numbers were up by almost 2m in Q3 2007 to almost 7m, rising to over 7m with the inclusion of Rogers. The total number of additions and conversions to the global 3G standard at AT&T exceeded the number of its own net additions by almost a third in the first nine months of 2007, with over 6.2m new W-CDMA connections compared with a net increase of just 4.7m in the base as a whole. The US market leader still has some way to go before it can match the 3G penetration of nearest rival Verizon, but is not far off out-doing third-placed Sprint, at least if a stricter definition is applied and only EV-DO enabled connections are counted.
Overall, CDMA2000 1x customers still outnumber W-CDMA customers by more than 13 to 1, although this ratio is down from 216 to 1 at the end of Q3 2006. In terms of EV-DO customers, the ratio has gone from 42 to just 5.6 over the same time period, despite a doubling of the base to over 39m in the year.
Source: Cellular News. |

Wednesday, December 05, 2007
According to figures published by the regulator, the Tanzania Communications Regulatory Authority (TCRA), the number of Tanzanians with mobile phones reached 7.562 million by 30 September 2007, up from 6.720 million at the end of the previous quarter. Vodacom led the way with 3.693 million customers, ahead of Celtel with 2.251 million, Tigo (992,036) and Zantel (553,975). In the fixed line sector the incumbent, Tanzania Telecommunications Company Limited (TTCL), reported a drop in the number of main lines in service from 169,135 to 160,964 in the same period.
The TCRA said that while the population of Tanzania is growing at the rate of 2.7% per annum, the annual number of Tanzanians subscribing for a telephone line is currently rising by around 47% per year. Nonetheless, it notes there is still a huge gap in terms of universal telecoms access, and says that at least 80.6% of the population do not have a telephone line at all – either fixed or mobile.
Source : Telegeography, based on the figures of TCRA.

Monday, December 03, 2007
Mexico's telecommunications sector saw revenues grow 31.1% in the third quarter of 2007 compared to the same period last year, making it the strongest quarter in seven years, the country's telecoms regulator Cofetel said in a statement.
According to Cofetel's production sector index ITEL, the telecoms sector outstripped the local economy 8.4 times in Q3 versus 2Q07. The economy grew 3.7% in the third quarter versus Q2.
Cofetel attributed the growth to an increase in mobile phone and trunking traffic as well as the strengthening of competition in the satellite communications segment, the statement said.
Some 2.36mn mobile phone users were added in the quarter, reaching a total of 64.35mn, or a teledensity of 60.8 lines for every 100 inhabitants.
Boosting mobile phone calls were a reduction in rates and growing popularity of text messaging.
In the quarter, the trunking segment saw its strongest growth in five years due to more competitive promotions and increasing coverage in the country.
Source: Cellular News based on Cofetel's statement.

Friday, November 30, 2007
Brazil's mobile operators are likely to achieve 100% coverage of the country by the end of 2009, local press reported, citing information from telecoms regulator Anatel.
Today, mobile coverage is limited to cities with more than 30,000 inhabitants, according to the report.
Anatel expects coverage of neglected areas to get a boost this year as a result of upcoming auctions for mobile licenses dedicated to small towns and municipalities. The idea is to start bidding at minimum prices that are much lower than sought on previous occasions.
Mobile operators are not obliged by local regulations to contribute to universal access, and prefer to provide services in densely populated areas, whereas the concession contracts of fixed line operators include obligations to provide coverage in neglected areas.
According to Anatel, the mobile penetration rate in the country was 60.4% at end-October, compared to 59.5% at end-September.
Source: Cellular News.

Thursday, November 29, 2007
The Indian mobile market reached a total of 213.1m subscribers at the end of October, a monthly increase of 7.86m subscribers. This is the third highest monthly total for net additions ever recorded in India, with July and August taking the top two places. In terms of annual growth, the number of mobile customers in India has grown by 64.4% in the 12 months to the end of October, which equates to an astounding 83.5m new connections. 64.0m of these were GSM customers, with 19.4m new CDMA customers.
India: Monthly Customer Growth Rates, Top Four Operators

Click here to see full article
|
Compared to the end of October 2006, GSM's share of the market has increased from 73.8% to 75.0%, and with 5.9m new GSM customers in October it also took approximately 75% of the month's net additions.
In terms of individual operators' performances, Bharti is still the clear market leader, passing the 50m mark in October to reach 50.9m customers at the end of the month. With 13m more customers than its nearest rival, its lead appears to be unassailable - for the foreseeable future at least. The battle for second place is much more hotly contested, with Reliance only 1 million customers ahead of Vodafone on 37.9m. This compares to a gap of just under 6m customers at the end of October 2006. Much of this reduction was due to Reliance's loss of over 4m customers in March as a result of the implementation of a customer re-verification programme in India, but even since then Vodafone has managed to narrow the deficit. Having said that, October was the first month since February in which Reliance actually managed to increase its lead. For the prior six months, Vodafone had been gaining on its rival by an average of 0.17m per month, reducing the difference to just 0.55m in September. However, Reliance upped its game in October, posting its highest total for net additions in over a year, and it appears to have fended off the possibility of a drop in the ranking for a few months at least.
In terms of market share, Reliance added 0.2pp in the month to reach 17.8% at the end of October, while Vodafone lost 0.1pp and finished on 17.3%; this compares to 21.0% for Reliance and 16.4% for Vodafone at the same point in 2006. Bharti's market share has risen by 1.8pp year on year, adding 0.1pp in each of the past four months.
Meanwhile, fourth placed operator BSNL has been steadily losing market share. It finished October down 2.6pp yearly on 14.7%, with October the eighth successive month in which it lost share. Its market ranking is secure for the time being, however, with a gap of over 11m customers separating it from Tata in fifth place.
The chart shows the monthly customer growth rates of the top four operators over the past six months. Vodafone was the fastest growing operator amongst the top four from May to September inclusive, but its October figure for net additions (1.23m) was its lowest since March, and it slipped to third place as a result with a rate of 3.4%. Bharti has remained fairly consistent with only a slight decline in growth over the past four months, recording 4.2% in October compared to 4.8% in May. Given the size of its customer base this is an impressive result, and with net additions of over 2m in each of the past four months, Bharti will be proud of its performance despite the slight fall in the growth rate.
India: Monthly Customer Growth Rates, Top Four Operators

Reliance's October figure of 1.69m net additions was, as we have previously noted, its best result for over a year, and this propelled the second-placed operator from third to first in the growth rankings. BSNL remained in fourth place with an October growth rate of 2.4% but it has shown some improvement over the past six months. On a yearly basis, it is actually ahead of Reliance, having expanded its customer base by 39.4%, a rate that is 0.2pp above that of Reliance.
Bharti is the fastest growing of the top four on an annual basis with a 77.9% increase in its customer base, although Vodafone is not far behind on 73.4%. Both of these figures are considerably above the total market growth rate of 64.4%, with the total yearly growth of the top four combined a little below this at 57.7%. |
Source : Cellular-News.

Wednesday, November 28, 2007
The CDMA Development Group (CDG) has announced that the total cumulative cdmaOne and CDMA2000 subscriber base reached 421.4 million after growing by 20 million net subscribers in Q3 2007. The CDG also reports that the 3G CDMA2000 subscriber base has reached 400.4 million.
"The CDG is pleased to witness the continued rapid growth and strength of CDMA," said Perry LaForge, executive director of the CDG.
The CDG said that APAC and North America account for the majority of CDMA subscribers, with APAC claiming 49%, and North America 32% of the worldwide total. The APAC and EMEA regions saw the greatest percentage of year-over-year growth, with the CDMA footprint increasing by 32% and 44% respectively.
The CDG also reported dynamic growth for CDMA2000, which now comprises approximately 95% of all CDMA subscribers, up from 93% last quarter, and approximately 70% of all 3G subscribers worldwide.
CDMA2000 1xEV-DO finished the quarter at 83 million subscribers, an increase of eight million since last quarter and 38 million since last year (Q3 2006). Furthermore, enterprises, small businesses and consumers increasingly demand the advanced mobile broadband services enabled by CDMA2000 1xEV-DO Revision A (Rev. A). The number of operators committed to deploying or who have already deployed Rev. A has more than doubled in the past eight months.
Source: Cellular News, based on the announcement by CDMA Development Group.
DIRSI (Regional Dialogue on the Information Society) has released the final draft on its report about mobile phones and poverty in Latin America and The Caribbean. The report abstract notes that access to telephony for low-income groups is largely based on different strategies of use around mobile telephony.
The main goal of this research project was to understand the strategies employed by the poor in Latin America and the Caribbean to access and use mobile telephony services, as well as to identify the major market and regulatory barriers for increased penetration and usage. More generally it investigated how access to mobile telephony contributes to improving the livelihoods of the poor.
Most common cost-reduction strategies (% of users)

The results show that mobile telephony is highly valued by the poor as a tool for strengthening social ties and for increased personal security, and that it is beginning to prove useful for enhancing business and employment opportunities. Overall, the results suggest that the economic impact of mobile adoption by the poor is mediated by social capital variables such as the strengthening of trust networks and improved coordination of informal job markets.
Interestingly, the level of shared ownership found was relatively low: in most cases users own their own handset and service. The notable exceptions are Colombia and Peru, where a healthy service resale market in urban areas (with very competitive tariffs) reduces ownership incentives.
Main reason for not using SMS services

They also highlight the urgent need to rethink public policies that are premised on the mobile phone as a luxury good. For the poor, mobile telephony has long become the most cost-effective and accessible alternative.
The report is based on over 8,000 face-to-face interviews were conducted with individuals aged 13 to 70 residing in low-income households in Argentina, Brazil, Colombia, Jamaica, Mexico, Peru, and Trinidad and Tobago.
The full report (pdf file, 20 pages, lots of charts) can be downloaded for free from the DIRSI website.
On the web: Regional Dialogue on the Information Society.
Source: Cellular News, based on report by DIRSI (Regional Dialogue on the Information Society).

Tuesday, November 27, 2007
The number of mobile phones sold in Germany is expected to grow by 6 percent from 34.4 million in 2006 to 36.5 million during this year, according to the German federation for ICT and new media Bitkom. At the same time, mobile revenue will grow by 2 percent from EUR 4.1 billion in 2006 to EUR 4.2 billion this year, as the growing number of mobile customers offsets only partially the drop in mobile minute fees. The mobile penetration is expected to grow from 104 percent in 2006 to 109 percent at the end of this year. A recent survey executed by Forsa for Bitkom shows that Germans increasingly use or want to use mobile internet applications, with navigation mentioned by 36 percent followed by information about traffic jams by 31 percent. Both news and bus/train time tables were mentioned by 26 percent followed by weather news by 24 percent. The survey also found that around 20 percent of German mobile users will use mobile internet services by 2010.
Source: Wireless Federation.
Brazilian mobile carrier Vivo had a 27.61 percent market share in October, while its major competitor TIM had 25.88 percent. The figures from regulatory agency Anatel show TIM edging higher from the previous month and a small drop in Vivo’s share. Claro was the third largest player in Brazil with 25.89 percent share, up from September, while Oi had 13.27 percent and Telemig Celular/Amazonia Celular had 4.41 percent. The technology GSM is the leader in the country with 86.6 million access lines, or 75.52 percent share. CDMA has 22 million accesses (19.26%) and TDMA has 5.9 million accesses (5.20%).
Source: Wireless Federation, based on press release by Anatel.

Thursday, November 22, 2007
ITU data suggest that the number of mobile cellular subscribers surpassed the 3 billion mark – close to 50 percent of the world’s population – in August 2007. Mobile growth rates have been high across almost all regions and the number of subscribers has grown between 20 to 30 percent globally since 2000, when they stood at 12 percent. In many developing regions, including Africa, where fixed lines remain very limited, the mobile success story has been critical for enhancing access to telecommunications. During 2006 alone, Africa added over 60 million mobile cellular subscribers to its subscriber base and the continent’s mobile growth rate has been close to 50 percent annually over the last years.

At current growth rates, global mobile penetration is expected to reach 50 percent by early 2008. While in theory this would imply that every second person owns or uses a mobile phone, the statistic needs some clarification. Indeed, double counting takes place when consumers subscribe to multiple services. Also, operators’ methods for counting active prepaid subscribers vary, often inflating the actual number of people that use a mobile phone. On the other hand, some subscribers, particularly in developing countries, share their mobile phone with others, thus spreading its benefits. Finally, and despite high growth rates in the mobile sector, major differences in mobile penetration rates still exist between regions and within countries.
A look at the BRIC economies, shows that Brazil, Russia, India and China – four economies that are expected to have an increasingly important impact in terms of population, resources and global GDP share – alone represent almost one billion mobile subscribers in 2007; that is almost one third of the world’s total. Add the mobile subscribers in the USA, Japan and Indonesia, and the total number of subscribers in these seven countries add up to half of the world’s total.

Source: ITU.