Orange has become the latest operator to launch Joyn services on its domestic network

French mobile operator Orange has become the first in the country to launch Joyn rich communications services. The announcement makes France the ninth country to introduce Joyn, while 14 operators in total have pledged their support to the GSMA-backed initiative.

Back in April Orange said that its iOS and Android OTT communications app, Libon, would become Joyn-compatible and offer RCS services once it has deployed Joyn services across Europe.

Using the app, Orange customers are able to take advantage of free HD quality voice calls over 3G or wifi, instant messaging, cloud backup services and personalised visual voicemail from their Android devices. Person to person services require both parties to have the app installed.

Upon making the app Joyn-compatible, further functionality will become available within the app, such as chat and group chat, files transfer and on-call content sharing. Later this year customers in France will be able to use Joyn services natively on their mobile phones. Orange customers using Sony Xperia Z, HTC One and Samsung Galaxy S4 will be able to buy these devices with Joyn services built into the phones and from 2014, Joyn will be available across the majority of Android and Window handsets currently available to consumers in France.

Orange was one of the three operators to launch Joyn services in Spain in November last year. However, despite the operator support behind the initiative, business systems firm SAP Mobile Services has warned it will only be the very biggest international players that deploy the technology in their own networks. The rest will look to cloud-based offerings to fulfil their needs.

“Only the biggest operators in world will deploy RCS in their networks. Beyond the top five or ten operators globally, the rest of the industry will look for a hosted solution,” John Sims, president of SAP Mobile Services, recently told telecoms.com.

“Everything that is cloud based reduces time to market. Instead of having to go through certain processes to deploy software in their own network, operators are able to collapse that time, as well as pay for it on a per-use basis so that it matches revenue more closely,” Sims added.

Ali Agan

In February of this year, Telecoms.com interviewed KCell CEO Vasel Aral, who steered the Kazakh operator through a successful IPO in late 2012. Aral was recently appointed to President of BA Eurasia within KCell’s parent TeliaSonera and his replacement is Ali Agan.

Here Telecoms.com speaks with Agan, who has risen through the ranks of TeliaSonera Group and most recently held the post of CEO of Ucell.

Drawing on experience of working in several Central Asian markets, both in service provisioning and distribution, Agan says a variety of viewpoints have given him unique insight into his role.

Because most Kazakh consumers are on 2G, with only limited adoption of 3G services, Agan is focused on driving data usage and championing next generation technologies like LTE. Interestingly, he does not see much future for voice—a bold stance for any mobile operator CEO, despite the industry-wide trend towards data usage.

“Needless to say, voice is already history,” he says, right at the start of our conversation. “Even though we are still generating most of our revenues from voice, data is definitely the future. So we will do everything required to expand the data business and increase data quality. This will be mainly through 3G but I’m also interested in getting into 4G,” he adds.

In this regard Kcell will continue to benefit from the experience of its parent company, he says. “We’re lucky to have worked with TeliaSonera Sweden which was the first commercial LTE operator in the world, and at Azercell I launched 3G and 4G, so we will be expanding in the coming years.

“Right now we’re in the process of obtaining a [4G] licence. With 3G the data share of revenue at KCell is 13 per cent and my focus is to increase the share of data of revenue because there is an enormous appetite for data,” he says. “Although the biggest share of revenue is coming from voice today, tomorrow data will be the biggest contributor. So we need to invest in coverage of broadband.”

KCell is pressing the government for a timescale on LTE licence allocation but a date has yet to be set. Given the time needed to draft the terms and conditions of the licences it may be some time before they become available.

Agan’s desire to accelerate the process is based on his belief in the positive effect that new technology will have on his ARPU. “Being owned by TeliaSonera we have the advantage of our parent’s experience with LTE. If you look at ARPU on LTE it is not even comparable with what you see from conventional subscribers,” he says.

While Kcell waits for its licence, though, the LTE ecosystem will expand. “We are aware that the terminal portfolio needs to be expanded and this is an obstacle that needs to be overcome,” he says. “In Kazakhstan about 50 per cent of the total devices in our user base support 3G. But in most countries in this region it is in the low 20s. But just think about devices or demand for mobile data ten years ago, and compare that to how the market is rapidly expanding now.”

But while operators in Western Europe struggle to devise tariffing strategies to make LTE pay for itself, Agan is relaxed about this element of his business.  “If you know your customer behaviour, then coming up with new tariffs, products and services shouldn’t be an issue,” he says. “The demography of the Kazakhstan market is still quite young compared to other markets – 50 per cent of the population is under 20 and at the same time GDP on a year on year basis is increasing. The situation in this region is not as challenging as in Western Europe.”

That young demographic will be quick to adopt services from internet players that place great demand on the KCell network.  So how does Agan see his relationship with the powerful players in consumer internet?

“We do and will continue to work with content providers,” he says. “Our strategy is not like other network operators in that we are not getting into the content business itself, so we will form partnerships with OTT players. But, speaking for the industry in general, the biggest players in the OTT space are using the network and sooner or later there will arise some way of mutually benefitting both in terms of revenue,” he says.

“Consider that the network is a highway, and the operator spends billions of dollars to build this highway. My revenue model is a toll booth on the highway so I charge traffic on a per car basis, but if you have a big truck then I have to charge more, that’s the only way,” he adds.

Luiz Fernando de Castro Bourdot, director access engineering at Embratel Brasil

Luiz Fernando de Castro Bourdot, director access engineering at Embratel Brasil is taking part in a panel discussion on Day Two of the Broadband LATAM conference taking place on the 2nd and 3rd July at the at the Grand Hyatt, Sao Paulo, Brazil. Ahead of the show we find out more about Embratel is getting ready for the data surge ahead of the sporting events taking place in the country in the next few years.

Can Brazil meet the demand for data that the World Cup and Olympics are going to bring?

Yes, absolutely! The telecom providers in Brazil are very well positioned to provide excellent services to the athletes, press and the public in general. Those services will be available through fixed line, mobile and wifi access. Embratel has been working intensely on those and other large events such as the World Youth Day. As the official telecom provider for the Olympics, Embratel is deploying a massive backbone to provide all venues with plenty of data, voice and video capacity.

Is Brazil ready for FTTH investment or is copper still the main focus?

It is clear that today the most efficient deployments are based on hybrid networks. For the hybrids networks you can see any sort of combination of fibre and a more cost effective “last yard”. It can be twisted pair, coaxial or radio. A pure FTTH network is still restricted to very specific markets and not for mass deployments. At Embratel the investment is focused on fibre. However, in our case, we are dealing with a fibre-to-the-business network, which has its own requirements and dynamics. I believe it will take some years before FTTH takes the lead as the architecture of choice for large scale broadband networks.

What are the challenges of preparing for 4G LTE in Brazil?

Given that 3G has already induced the use of a massive optical Ethernet backhaul infrastructure that will carry easily all 4G traffic, I believe the big challenge will be to build the additional sites necessary for  proper service coverage, while dealing with various restrictions, such as  environmental and local municipality legislation.

What is the most exciting development you expect to see in broadband over the next 12 months?

For sure it is the advent of 4G. Mobile broadband use is more than double that of fixed-line. The impact of breakthrough 4G technology cannot be exaggerated. I hope the conditions will be there to enable this new technology to enjoy a fast adoption rate.

Why are you keen to attend the Broadband LATAM conference?

Our industry is undergoing many technological evolutions and transformations, many of them very disruptive. It affects the way we plan and build networks and also the way we design and sell services. My expectation is to learn from the other service providers about how they dealing with such challenges.

Martijn Blanken, MD of Telstra Global

Martijn Blanken, managing director of Telstra Global, told the CommunicAsia event in Singapore that the idea of ‘owning’ a customer as a sure path to financial success is also flawed, and that CSPs would do better to focus on what he called the core telco basics.

“The best way to achieve success is by focusing on customer experience to achieve financial outperformance and working in concert with partners,” said Blanken. “Getting the basic elements right, like having solid network coverage, is a pre-requisite to success, along with ensuring secure and high quality services.”

Blanken added that the threat from over-the-top (OTT) players is very real in some sectors, but for everyone else there is enormous potential, as they are driving traffic and activity on networks and platforms, and in many cases actually boosting revenues.

The Telstra Global exec also had some words of advice for incumbents struggling to keep prices low enough to attract customers and service quality good enough to retain them, stating: “I believe that for those markets where you can’t win, wholesale is better than no sale.”

Tilgin’s Flexible Premises Solution is starting to win orders

Norwegian regional service provider Enivest has ordered fibre-to-the-home (FTTH) solutions from Swedish firm Tilgin to simplify the deployment and maintenance of FTTH connections for its subscribers.

The Flexible Premises Solution chosen by Enivest includes fibre termination units, home gateways and an auto configuration server – all part of ongoing efforts to reduce field visits and offer self-installation options to its customers.

Eric Hjelmestam, vice president of solution management & marketing at Tilgin, said: “Today, our concept is a reality, a solution we can deliver to our clients. It provides our customers a solid business case; the flexible premises business case.”

Neelie Kroes, European Commissioner for the Digital Agenda

European Commissioner Neelie Kroes has expanded on her plans to create a single telecoms market within the EU and has confirmed that she does not want to get rid of national regulators.

The European Commissioner for Digital Agenda and VP of the European Commission noted that the EU has already taken action on mobile roaming by removing barriers, making prices fairer, and introducing choice. However, she wants to develop quick solutions that further build on what has already been achieved and to abolish roaming charges altogether.

“I don’t want to needlessly centralise into new institutions,” she said in a speech published Monday. “I don’t want to grab powers or rights “just because”. Even if that were desirable, and even if ultimately successful, it would take too long to achieve, by which time it might anyway be out of date.”

She said that instead she wants to review all the barriers the telecoms market currently faces and bring them down “pragmatically, achievably and fast”, arguing that the EU economy “cannot afford to wait”.

Kroes added that the European Commission is sourcing the ideas of those working in the industry, and that the EC wants to be transparent and open about its plans.

According to Kroes, operators find it too hard to break into new markets as they need separate authorisations under separate systems for each country of operation.

“A “passport” would mean that if you can operate in one member state, you can operate in any member state without extra bureaucracy; just like in other sectors that enjoy the single market boost, from banking to broadcasting,” she said.

“But to travel across borders, you don’t just need a passport: you need a road. The same goes for telecoms: you need a network. We will make it easier to run a network across borders, with better interconnections and new access products.”

Kroes also said that “the spectrum map of Europe is so uncoordinated, it looks like a plate of spaghetti” and that handset makers largely ignore the European market when planning the launches of their new devices. This makes it harder to plan and bid across borders: when each country’s auction or sale takes place at different times, under different conditions, she added.

Operators shouldn’t have to deal with a mess of different rules, regulators and remedies in each member state either, Kroes argued.

“And we should have consistent rules to safeguard the open internet, so bright ideas don’t get blocked or throttled. But without banning premium services – so the sector can innovate to provide new ideas, and consumers have the chance to enjoy something extra.”

Instead of worrying about a predicted two per cent drop in revenue as a result of roaming charges being abolished, smart telcos will look hard at the opportunities presented by a customer base that’s far more willing to use their phone abroad, according to Adhish Kulkarni, CMO at mobile marketing firm Lumata. He believes that consumers are now more likely to buy additional bundles to use apps, surf the mobile web, or call and text when abroad.

“Operators could also explore new revenue sources by providing additional services through local partners,” he said. “It’s when significant market or legislative changes take place that operator’s investments in loyalty marketing pay off. Not just because customers are more likely to trust or stick with you, but because you have another important and valid reason to talk to them, as well as an established channel through which to do so.”

Johan Dennelind, incoming CEO at TeliaSonera

European mobile operator group TeliaSonera has announced the appointment of CEO of South African operator Vodacom International Johan Dennelind as its next president and CEO.

Dennelind fills the position vacated by Lars Nyberg, who stepped down from his role in February this year amid a corruption scandal surrounding the firm’s operations in Uzbekistan.

Acting CEO Per-Arne Blomquist will remain in that role until September 1 before returning to his previous role as executive vice president and CFO. This will be Dennelind’s official start date, although he will be “available for the company” from July 1, 2013, TeliaSonera said.

Dennelind has almost 20 years’ of experience in the telecommunication industry. During his time at Vodacom, and before that at Norwegian operator group Telenor, he has “proven that he can successfully lead organisations in significant change processes within an international environment,” according to TeliaSonera chairman Marie Ehrling.

“With Per-Arne Blomquist now returning to his role… we are securing continuity in the business whilst through Johan Dennelind also providing a fresh start,” she added.

The end of Nyberg’s tenure was marred by corruption allegations involving operations in Uzbekistan. Law firm Mannheimer Swartling was assigned to make an assessment of the allegations and published a review that did not find that TeliaSonera had been involved in bribery or money laundering. The law firm did, however, criticise TeliaSonera for failing to conduct a sufficiently in depth analysis into the identity of the local partner in Uzbekistan before investing.

Head of group communications Cecilia Edström has also announced that she will leave her position during the summer of 2013. She has held the role since May 2008.

Huawei reportedly currently has 140,000 staff

Chinese kit vendor Huawei has taken on the field and civil maintenance and management of Vodafone’s xDSL and mobile networks in Spain. The five year contract sees Huawei taking on 103 Vodafone employees who will be put on the vendor’s payroll.

Huawei will be in charge of the preventive and corrective maintenance of the mobile access network infrastructure and telecommunications equipments, which includes 2G, 3G and access transmission equipment.

The vendor will also operate and maintain any mobile access network future equipment, including the infrastructures deployed by other manufacturers.

Huawei’s relationship with Vodafone in Spain dates back to 2006 when the two firms signed a first contract for 3G equipment provisioning.

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Clearwire directors have unanimously voted to recommend an offer from Dish Network

The board of directors at US wimax (and proposed LTE) operator Clearwire has unanimously voted to recommend an offer from US satellite provider Dish Network, rather than mobile operator Sprint. Dish Network has offered to acquire all outstanding common shares of Clearwire at a price of $4.40 per share while Sprint offered just $3.40 per share.

Clearwire’s Board voted for Dish based on recommendations from its Special Committee; a group consisting of independent, non-Sprint-affiliated directors.

Sprint will still remain the controlling shareholder in the company though, even if all outstanding common shares are sold to Dish, as it would still have 50.4 per cent of the voting shares and 68.2 per cent of the equity.

In related news, Japan’s Softbank increased the value of its own offer for Sprint by $1.5bn to $21.6bn earlier this week in an attempt to seal shareholder acceptance of the deal. As well as increasing the total amount payable the deal has been restructured to give shareholders an additional $4.5bn.

Softbank’s share in New Sprint (the holding company which will own Sprint if the deal goes through) rises to 78 per cent under the amended offer.

O2 plans to outsource around 3,500 jobs in customer service call centres in Bury, Glasgow, Leeds and Preston Brook to Capita.

UK operator Telefónica O2 has hit back at the Communication Workers Union’s (CWU) criticisms of its plans to make 1,000 employees redundant and transfer around 2,500 staff to outsourcing firm Capita.

The operator told Telecoms.com that the deal with Capita means that employees being transferred to the outsourcing firm will see no change to where they work or their terms and conditions while their salary will be protected.

O2 added that Capita will offer employees a guarantee of job security for two years, which is something that the operator could never commit to itself.

The operator said that one of the drivers behind the deal is that it is seeing a significant decline in the numbers of customers contacting it by phone; O2 now takes one million fewer calls from customers per month than it did two years ago, a spokesperson said, claiming it has only 65 per cent occupancy in its call centres. Customers are instead increasingly relying on social media and online customer care portals to contact the firm.

“By making this decision now, we have been able to secure the best outcome for our people,” the spokesperson said.

O2 added that as part of the deal it also offered discretionary voluntary redundancy to offer employees the opportunity to consider their options and choose the path which suited their personal circumstances.

“These are not compulsory redundancies. They relate to our well-publicised commitment of offering discretionary voluntary redundancy, the terms of which have proved an attractive option for a number of people expressing a wish to leave and has allowed them the opportunity to choose the path which suited their personal circumstances,” the spokesperson said. “We’re now going through the final stages of letting those who applied know what the next steps are.”

Telkom has written down the value of its assets by R12bn ($1.2bn) following a review by its board

South African operator Telkom has written down the value of its assets by R12bn ($1.2bn) following a review by its board. The operator said the decision to revalue it’s assets is important in enabling it to become competitive and efficient.

“We are committed to transforming Telkom’s financial performance,” said Sipho Maseko, group CEO at Telkom who took the over from former CEO Nombulelo Moholi in April of this year after leaving Vodacom, where he was COO. “This will require bold and decisive action. Tough and urgent decisions will have to be made, particularly regarding costs and the decommissioning of unprofitable services.”

Maseko added that the operator will accelerate the upgrade of its network in the medium term, and this will be essential for improvingservice delivery, efficiency and competitiveness.

The Telkom board explained that reasons it wrote down its assets, which included the extensive time period that shares have been trading at a lower value to its net asset value (NAV) and the fact that obsolescence of some of its legacy assets.

The migration of services from legacy assets to assets that are based on new technologies which will rapidly escalate over the next few years and further reduce the returns from some of the above noted legacy assets.

The impairment charge is a non-cash item and it will not impact the firm’s cash flow, said Telkom, adding that  after the impairment, the NAV per share is circa R34.

Cyrille Joffre, Network CTO, Monaco & Islands Cable & Wireless

Cyrille Joffre, Network CTO, Monaco & Islands Cable & Wireless,  is taking part in a panel discussion in the Backhaul Summit track on Day Two of the LTE World Summit, taking place on the 24th-26th June 2013, at the Amsterdam RAI, Netherlands. Ahead of the show we quiz him on his views on the challenges that are thrown up by HetNet deployments.  

What’s your vision of a Hetnet enabled future network and how soon will it become a reality?

Hetnets are seen as a key parameter in the high data usage areas and a crucial part of the in-building coverage equation, and promise to alleviate data traffic stress at the macro level. More importantly, the tech will enable better business cases by leveraging specific heterogeneous deployments such as “Licensed Femto”, “Bring Your Own Wi-Fi”, and “SP Carrier Wi-Fi” in different scenarios (both offload and onload) for residential, SMB/SME, metro and hotspot.

Spectrum and mobility are two fundamental characteristics of wireless networks, best defined respectively by ‘scarcity’ and ‘unpredictability’. I therefore envision that HetNets (i.e. a multi-layer, multi-mode, multi-band network architecture by common definition) help bridge these some gaps. As for Wi-Fi, unlicensed radio resources could be blurred with licensed cellular resources at user data session level (already demonstrated in labs). That would prove to be spectrally efficient and also to remove complexity for devices in connecting the network, as well as in QoS management, and as a result delivering a better user experience. Markets such as the USA are driving HetNets and consequently we keep a close eye at that momentum.

I’ve heard the opinion that the dedicated backhaul required for every small cell installed will destroy the economic benefits that they bring in terms of offload. What’s your view?

The answer to that question depends is very much driven by local market considerations. There are multiple backhaul technology options available at different cost per gigabyte and with different operational issues. The fact that small cells may not require a ‘five nine’ carrier grade mark may also relax some pressure on the business case. Finally, operator capability to monetise some of the business cases listed above will play a role.

Practical difficulties in obtaining planning rights will severely limit the practical use of small in the real world? To what extent do you fear this will be true?

The reality is that small cells only improve mobile experience if you place them in close proximity to subscribers trying to access the network. Whether operators have experience with street-level site acquisition and/or aesthetics is a question. Negotiation, approvals, and fees vary between councils and regions but we have seen some local councils making deals with operators for street furniture. Other interesting street-level issues also emerge such as that power to street lamps is shut off at seven AM in most cities, and no operator would enjoy a small cell blackout every morning. And once the small cell is fixed onto a lamp post, climbing that lamp post every time a fault occurs becomes cumbersome for a technician. Site planning will be key.

Why is the LTE World Summit such an important show for you to attend?

As fixed and mobile service providers for both residential and business segments, LTE plays a key role for our businesses, and not only mobile. This summit is also the place to get a flavour of what your peers are doing, the good and the not so good. Finally, you will probably be exposed to the latest 5G labs testing happening worldwide!

Vodafone has confirmed it is in preliminary talks with German cable group Kabel Deutschland regarding a possible takeover

Vodafone has confirmed that it is holding preliminary discussions about a possible acquisition of German cable group Kabel Deutschland. UK-based Vodafone stressed that there is “no certainty that any offer will ultimately be made nor as to the terms on which any such offer might be made”.

The acquisition has been rumoured for some time and Emeka Obiodu, principal analyst for telco strategy at  Ovum said the prospective deal has won attention because of the diversification from Vodafone’s core mobile offering that it represents.

“It used to be fairly straightforward to predict what Vodafone would do. It wanted to be big, and was a buyer of assets rather than a seller. It also didn’t do fixed telecoms, TV, or cable,” Obiodo said.

“However, under its current management, Vodafone’s actions are less ideological and the group has made significant efforts to adapt to changes in the industry. The group’s mobile-only mantra has been shelved and its infrastructure-light strategy for fixed telecoms has been rethought.”

Obiodu added that, if it does acquire Kabel Deutschland, Vodafone will become the largest TV provider in Germany, which is the operator’s largest market.

“Vodafone’s pragmatism provides further evidence that European telcos are now in survival mode and that anything that helps them to overcome the challenges they face is fair game.”

Vodafone already offers TV services as part of a triple-play offering in the Netherlands and Portugal.

Orange CEO Stéphane Richard

Orange group CEO Stéphane Richard is being held in custody in France as part of an investigation into alleged corruption dating back to 2008.

The case does not involve Orange (formerly France Telecom). Richard previously worked in the French Finance Ministry and he faces questions relating to his role in a 2008 payment made to businessman Bernard Tapie.

Richard’s detention was extended by 24 hours on Tuesday by the Court of Justice of the Republic, which investigates ministerial misconduct in France. France Télécom’s deputy CEO and chief financial officer Gervais Pellissier will undertake his responsibilities in his place.

Orange officially changed its name from France Telecom last month, having used the brand name for market facing activities since 2000.

Softbank and Sprint hope that the improved offer will win over shareholders.

Japan’s Softbank has increased the value of its offer for US carrier Sprint by $1.5bn to $21.6bn in an attempt to seal shareholder acceptance of the deal. As well as increasing the total amount payable the deal has been restructured to give shareholders an additional $4.5bn.

Softbank’s share in New Sprint (the holding company which will own Sprint if the deal goes through) rises to 78 per cent under the amended offer.

Sprint’s board of directors has given this latest offer its unanimous support, having ended negotiations with US satellite provider Dish Networks on the basis that Dish did not “put forward an actionable offer”. Dish, which laid a $25.5bn bid for Sprint on the table in April, said it would consider its “strategic options”.

“The amended agreement delivers more upfront cash to Sprint stockholders, while still achieving our goal of creating a well-capitalized Sprint that is better positioned to bring meaningful competition to the US market,” said SoftBank CEO, Masayoshi Son.  “Our transaction offers significant value for Sprint stockholders and the opportunity to realize that value in just a few weeks, without the risks associated with any other potential transaction.”

The increased return to shareholders will be covered in part by the additional $1.5bn and in part by a $3bn reduction in the $8bn that had been set aside under the original terms to strengthen the Sprint balance sheet.

Sprint and Softbank reiterated that they expect the deal to close in July.

Earlier this week it was reported that Softbank was considering a bid for US operator T-Mobile, should its bid for Sprint prove unsuccessful.

Telus has abandoned its efforts to acquire smaller Canadian operator Mobilicity

Canadian operator Mobilicity has announced that its proposed acquisition by Telus has been officially abandoned.

Telus agreed to acquire Mobilicity in May for $380m, pending regulatory approval. However, last week Canada’s government blocked Telus’ application to acquire Mobilicity’s spectrum licences, effectively scuppering the deal.

Mobilicity will now revert to its previously announced strategy, the end game of which remains its acquisition. The plan will be voted on by debtholders at a meeting on June 25, 2013.

There is some hope for the Canadian operator as rival Wind Mobile has indicated that it now wants to open talks to buy Mobilicity, according to CEO Anthony Lacavera.

“We are certainly interested in re-opening the discussion with Mobilicity,” he said.

ZTE has teamed up with China Mobile to make what it claims is the world’s first ever VoTD-LTE call

Chinese kit vendor ZTE has teamed up with the nation’s leading mobile operator China Mobile, and US semiconductor firm Marvell Technology Group to make what it claims is the world’s first voice over TD-LTE (VoTD-LTE) call.

The call was conducted on China Mobile’s network in Guangzhou, using 5-mode, 13-band smartphones powered by Marvell’s chipsets. The network uses ZTE’s TD-LTE technology and core IMS platform.

ZTE said that the successful VoTD-LTE call in Guangzhou will help accelerate the adoption of voice services on TD-LTE networks, and usher in the TD-LTE full-service era.

China Mobile has 737.5 million subscribers as of March 2013, according to Informa’s WCIS, almost three times as many as second-placed China Unicom.

Put the date in your diary now for the inaugural LTE Voice Summit, taking place on October 1st-2nd at the Hilton Paddington, London. Click here NOW to download a flyer.

Telefonica launches digital security firm

Spanish operator group Telefónica has launched a digital security company in a bid to drive innovation in security in the telecoms sector.

The operator has appointed security expert Chema Alonso as CEO of the firm, which it has called Eleven Paths. Alonso will bring several colleagues from the company he founded, Spanish security firm Informática 64, with him. He will report directly to CEO of Telefónica Digital Matthew Key.

According to Telefónica, Eleven Paths intends to “radically changing the way products are developed in this area”. The firm will be run as an autonomous business unit within Telefónica Digital in an effort to facilitate fast and innovative product development.

“ The digital world is changing the rules and security services need to adapt to this new challenge very fast,” said Alonso. “For us, the agreement means having the ability to create professional solutions in a faster and increasingly globalised market like the world of security. Threats are growing daily, as is the integration of our lives into the digital world; without a global platform like Telefónica Digital, with a strong presence in all layers of the internet, it is nowadays impossible to create these kinds of innovative security solutions.”

Seong-Mook Oh, President, Network Group, Korea Telecom

Seong-Mook Oh, President, Network Group, Korea Telecom, South Korea is delivering an opening keynote speech on Day Two of the LTE World Summit, taking place on the 24th-26th June 2013, at the Amsterdam RAI, Netherlands. Ahead of the show we get a comprehensive update on KT’s cutting-edge LTE deployment and why its CCC architecture brings it a competitive advantage.

What major developments have there been with regards to the LTE industry in your region this past year?

In the past year KT’s LTE network covered 99 per cent of the population in Korea. The traffic volume of our LTE networks has surpassed that of our 3G network, even though the only a quarter of KT’s subscribers are on LTE. This impressive deployment has been accomplished over the past year using the CCC (Cloud Communication Center) architecture, the most simple network deployment architecture, as far as I know. In the CCC architecture, all the RUs (Radio Unit) are connected to DU (Digital Unit) pools located in the centralisation center via through optic cores. The signals from multiple RUs are processed all together to optimise the radio performance and mitigate the inter-cell interference. To introduce more carriers in the near future, the optic cores and DU processing pools will be reused and RUs will be installed at a local cell site via the plug-in method. In addition, KT launched a VoLTE and PSVT (Packet Switched Video Telephony) service, which provides the HD-Voice and HD-Video service.

What are the chief technical challenges you are facing?

LTE is very sensitive to inter-cell interference due to the nature of OFDM-based systems. In a conventional architecture inter-cell interference control has limitations due to the delay and low speed between eNodeBs. KT’s CCC is a radical solution designed to resolve these inter-cell interference problems. However, the growing demand for higher data rates and the increase of LTE subscribers requires additional solutions such as carrier aggregation and femtocells. Through our close collaboration with several vendors we are trying to discover the optimal solutions. Our so-called “Connect & Development” method is focused on inter-eNodeB cooperation, which is the basis for carrier aggregation and HetNet technology.

The LTE World Summit, the premier 4G event for the telecoms industry, is taking place on the 24th-26th June 2013, at the Amsterdam RAI, Netherlands. Click here to download a brochure for the event.

What are the key techniques for network optimisation in LTE and what effect can it have on the customer experience?

Most of our customers’ dissatisfaction comes from cell-edge regions where the QoS is very low, due to the inter-cell interference, causing missed or dropped calls. In order to enhance cell-edge performance we have introduced new techniques named “JT (Joint Transmission)” and “CS (Coordinated Scheduling)”. These two technologies reduce inter-cell interference, but should be selectively used according to the network load. In the case of heavy traffic load, we should mainly focus on CS and in the case of low traffic, JT is beneficial as it improves throughput by increasing the signal strength. All these procedures come under the umbrella of SON (Self Optimized Network) technology.

Is VoLTE part of your plans and what benefits will it bring both to operators and consumers?

We have already commercialised VoLTE services. The “Idle to Active” time in 3G networks is about 2-3 seconds, and therefore the call set-up time for mobile-to-mobile is about 4-6 seconds. However, in LTE networks, the “Idle to Active” time is less than 100ms. Therefore, if you make a VoLTE call, the called party will respond within 1 second as well as it will make a connection to network within 100ms. In addition, the high voice quality of AMR-WB using 23kbps is very attractive to our customers. When using CSFB as an interim solution for voice service, PS calls also uses 3G networks during the voice calls causing user inconvenience due to the low 3G data speed. From the operator viewpoint, VoLTE will make it easy to reach an all-IP service, which will reduce the OPEX compared to conventional infrastructures.

Pricing for LTE is a controversial subject. Are operators getting it right?

ARPU of 3G smartphone users is $40. However, an ARPU of LTE user is about $50. That is, with LTE networks we can expect ARPU increase by 20 per cent. Recently, KT commercialised an LTE Unlimited price plan at $95 compared to the unlimited 3G data service tariffs that start from $54. However, there are many concerns regarding unlimited price plans on LTE. That policy was driven mainly by the competitive market situation in South Korea.

Do you think that LTE offers great opportunities for monetisation or does it present challenges?

One opportunity for LTE is its high-data rate and low latency, which guarantees QoS for streaming and interactive services. Content is easily accessible with LTE smartphones and “virtual goods” can be monetised and delivered via LTE networks. For example, we can provide a better or guaranteed QoS for users viewing adverts. New LTE-based services such as eMBMS and RCS also offer an opportunity for monetisation. KT is preparing for eMBMS pre-commercial services within this year. However, if operators lose the right to control QoS due to the regulation issues, operators will face some challenges for sustainable growth and should make an effort to develop a new ICT (Information Communication Technology) business model.

In order to offer a more competitive service than the OTT players KT is leveraging CCC for ICT business. CCC is a kind of domain-specific cloud technology, based on virtualisation. By unifying the platform for radio and several application services into CCC, we can provide cross-layer optimised services between applications and radio. For example, we can utilise user contexts such as user ID, traffic content, QoS, location, and the radio environment to provide the most suitable service to our customers. I expect that all these services will offer a great monetisation opportunity to mobile network operators.

Where do small cells fit into your plans?

Most of KT’s mobile network infrastructure already consists of small cells. This is because the small cell is key to meeting capacity demands and removes coverage holes in a cost effective way. With the advent of smartphones and the exponential growth of data traffic, CCC-based small cells for 3G and 4G have been playing a significant role. The inter-site distance of these small cells is no more than 100m in Seoul, whereas the coverage of macro cell in rural areas is around 1-2km.

As an in-building solution KT has developed business femtocells, targeting both data offloading for capacity and in-building coverage. The business femtocells have been deployed at public places such as cafe and markets for public subscribers. We are currently developing a home femtocell and will introduce some calling plans for private subscribers. Following mass deployment, we expect more than ten per cent of traffic will be off-loaded to femtocells in the near future, compared to the current data off-load of less than one per cent. In addition, the business and home femtocells will co-operate with CCC to reduce the inter-cell interference.

What do you think will be the most exciting new development in LTE in 2013?

From the viewpoint of network development, KT plans to introduce inter-band carrier aggregation and expand the system bandwidth up to 20MHz from 10MHz. This will enable us to double the maximum date rate to compete with wired broadband and generate new business opportunities for all the mobile related industries such as M2M, streaming and cloud services.

 This year, our evolved CCC network (LTE WARP Advanced) will support advanced CoMP technology. A DM-RS (Demodulation Reference Signal) based on JT (Joint Transmission) technology will expand the JT areas into the cell edge using the different PCIs (Physical Cell ID). Furthermore, CS (Coordinated Scheduling) will be expanded into the heterogeneous network with the component of CCC-based small cell solutions such as picocell and femtocell through an X2 interface.

 From the viewpoint of service development, KT will introduce application and radio converged services provided in CCC. For example, accessed information is frequently kept in CCC that is physically and logically closer to the user side. By reducing the amount of traffic on EPC, WAN links, and overburdened Web servers, caching provides significant benefits to reduce TCO and service delays. I expect that more application services such as LBS based smart dialling and local community services will be accommodated in CCC in future.

Vodafone has not paid any corporate tax in the UK for the second year in a row

UK operator group Vodafone has not paid any corporate tax in the UK for the second year in a row, the firm revealed in its annual report.

This is despite generating revenues of more than £5bn in its home market. The group paid over £2.5bn in corporate tax in other countries.

Vodafone said it was able to forego paying corporate tax due to allowances for the investment it made in its network, on spectrum and in interest payments.

However, the firm noted that it paid £882m in other UK taxes and contributions during the year.

The operator group is also currently in dispute with the Indian government, over a $2.2bn tax bill. The Indian government cabinet this week approved a non-binding proposal in an effort to begin conciliation process.