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ASEAN: consumers seeking to improve the performance of ISPs and mobile operators

[bangkokpost] Consumer groups are pledging a new Southeast Asia-wide battle against unfair business practices by telecom giants.

The activists, led by a non-profit consumer network, the Southeast Asian Consumer Council (SEA-CC), wants to force governments to improve access to internet and mobile phone services.

They were speaking at the close of a three-day conference held in parallel with the annual meeting of Asean telecommunications regulators here.

“Telecommunications is a transnational issue important enough for regulators to hold such an annual meeting, which is always well attended by business,” said Jiraporn Limpananont, SEA-CC’s chairwoman.

Regional cooperation among activists was vital for getting consumers a better deal, she said. The meeting drew more than 50 consumer advocates from eight countries – Thailand, Indonesia, the Philippines, Malaysia, Singapore, Hong Kong, Australia and Spain. They found consumers have many problems in common.

These include billing inaccuracies, unfair charges, spam messages via mobile phones and spam emails, and difficulties in settling disputes.

Consumers, especially those in developing nations, have been offered poor quality services such as limited network coverage, calls which fall off the network, and slow delivery of messages.

Indah Suksmaningsih, of the Indonesian Consumers’ Organisation, said consumers were also forced to receive unwanted marketing messages from operators and other businesses.

Saree Aongsomwang, secretary-general of Thailand’s Foundation for Consumers, said activists would work together to demand basic standards in telecommunications services for the region.

“We’ll demand businesses, especially international ones, offer customers in Asean countries the same standard that consumers in developed countries get, and to be more socially responsible,” she said.

Consumers could lose out when Asean free trade agreements come into effect early next year, said Seah Seng Choon of Singapore.

“Whole markets in certain areas including e-commerce will open as a result of the change, and businesses will be able to do whatever they want without barriers,” he said.

Fight looms with telecoms giants over unfair trade

Brazil: Mobile broadband will overtake fixed, with rapid growth of data cards

[PRNewswire] Mobile broadband will surpass fixed broadband in Brazil by 2011, reaching nearly 27 million data card users in 2014 from 1.5 million in 2008, according to a new report from Pyramid Research (www.pyr.com), the telecom research arm of the Light Reading Communications Network (www.lightreading.com).

Brazil’s Brave New Mobile Broadband World: The Rise of Data Cards examines the potential of mobile broadband computing devices to reach significant adoption levels in Brazil and mobile broadband’s prospect of surpassing fixed broadband in the near future. The 12-page report provides Pyramid Research’s five-year forecast on data cards adoption in Brazil and discusses the strategies of the main mobile players, including two case studies: Claro and Oi. The report discusses the latent demand for broadband in Brazil and points to it as one of the key drivers for our positive mobile broadband estimates.

Data cards are set to become an important driver of broadband adoption in Brazil. Operators should be prepared for strong, sustained growth going forward as mobile broadband becomes a true alternative to fixed broadband in Brazil, notes Fernando Faria, analyst at Pyramid Research and author of the report. “According to Anatel, the number of mobile data devices in May 2009 was nearly 4.3 million, which represents roughly 30 percent of the total broadband market, already a clear indicator that there is significant pent-up demand still in the marketplace,” he says. “Pyramid expects mobile broadband to surpass fixed broadband in Brazil by 2011 and to reach nearly 27 million data card users in 2014, from 1.5 million in 2008, a 62 percent CAGR,” he adds.

The value proposition for mobile broadband is unquestionable: Data cards offer an easy way to connect in a variety of locations with competitive speeds. “Besides this, there are a few other aspects people are starting to pay attention to in Brazil, such as shorter installation time fewer hurdles with LAN compatibility and absence of wires and cabling, to name a few,” says Faria. Although mobile broadband is considered to be more expensive than fixed broadband, as data cards reach significantly higher adoption levels, it becomes financially viable for mobile operators to drop prices.

“Despite this immense potential, Pyramid is observing an early issue with an unexpectedly high churn rate in mobile broadband service, which we credit to the ‘frustration effect,’ ” explains Faria. “Provided operators keep improving network quality to address a few early coverage issues, data cards could become the dominant broadband access device in Brazil,” he says.

Mobile Broadband to Surpass Fixed Broadband in Brazil by 2011, finds Pyramid Research
see also an excerpt of the report

China: Telecoms market growth, with 3G and with rural adoption of 2G will overtake Japan to become the largest market in Asia

[PRNewswire] Fueled by mobile penetration into the rural market and by uptake of 3G services, China’s telecommunications market will generate $187 billion by 2014, surpassing Japan to become the largest telecommunications services market in Asia, according to a new report from Pyramid Research (www.pyr.com), the telecom research arm of the Light Reading Communications Network (www.lightreading.com).

Communications Markets in China offers a precise profile of the country’s converged telecommunications, media, and technology sectors based on proprietary data from our research in the Chinese market. It provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies such as WiMax, IPTV, and VoIP. Published annually, this executive study provides a comprehensive view of the Chinese communications market by analyzing key trends, evaluating near-term opportunities and assessing upcoming risk factors.

China’s telecommunications market generated US$110 billion in 2008, making it the second largest telecommunications services market in Asia/Pacific after Japan, notes Daniel Yu, analyst at Pyramid Research and author of the report. “Given continued demand for connectivity and rising adoption of mobile and fixed broadband services, the Chinese market will increase at a compound annual growth rate of 8.8 percent between 2009 and 2014, reaching $187 billion by 2014, surpassing Japan as the largest telecommunications services market in Asia,” Yu says.

“China, like many emerging markets, is becoming an increasingly mobile market, adding 71.2 million mobile subscriptions in 2008, roughly 12 percent of all additions worldwide and second only to India’s 113.3 million net additions,” says Yu. Mobile service revenue growth will be supported by a penetration increase from 58 percent at year-end 2009 to 80 percent at year-end 2014. Pyramid expects mobile services to account for more than 76 percent of total services revenue in China by 2014.

Despite the declining rate of growth in the economy, Pyramid Research expects the mobile industry to experience healthy growth in 2009 as mobile operators roll out 3G networks and extend coverage to rural areas. “China Mobile, for example, is dedicating 30 percent of its total Capex on 2G network expansion, and 70 percent of the allocated portion will be used in the rural market,” Yu says.

China will Surpass Japan in 2011 to Become Largest Telecom Services Market in Asia, finds Pyramid
see also an excerpt of this report

USA: Verizon Wireless has proposed relaxing the provision of national roaming to smaller rivals

[Reuters] Verizon Wireless would be willing to make a compromise on roaming service agreements with smaller mobile operators, according to a letter it sent on Wednesday after pressure from U.S. lawmakers.

The venture of Verizon Communications (VZ.N) and Vodafone Group (VOD.L) said it was proposing a new rule in response to lawmakers’ concerns that current roaming regulations put small service providers at a disadvantage.

When phone users travel outside the coverage area of their own service provider’s network, roaming agreements allow them to use another carrier’s network.

Currently, wireless providers are not required to offer roaming services to rivals in areas where those rivals own wireless airwaves but have yet to build network coverage, according to Verizon Wireless, the No. 1 U.S. mobile service.

But the company said in the letter, obtained by Reuters, that it would support a new law requiring it to provide rivals with roaming services in places it is not currently obliged to offer such services.

It suggested a time limit of two years for the requirement, except when special conditions applied that could make some operators eligible for a third year of roaming services.

Smaller rivals such as Leap Wireless (LEAP.O) have complained about rules governing roaming.

However, Leap’s director of government affairs, Laurie Itkin, said roaming agreements with time limits would not be enough.

“Verizon itself has relied on roaming agreements for over two decades as it built out its network and acquired competitors, but now has unilaterally decided that its remaining competitors are only entitled to roaming for two or three years,” Itkin said in an emailed statement.

Verizon’s letter which was sent to representatives Rick Boucher, Henry Waxman, Joe Barton and Cliff Stearns, appeared to be the company’s second effort in a week to preempt regulatory changes by making its own proposals.

Last week, Verizon offered to limit its exclusive handset deals to help smaller companies.

This came after pressure from U.S. lawmakers and small carriers and reports that the Department of Justice was taking a preliminary look at whether agreements between operators and phone makers were anti-competitive.

Verizon Wireless proposes roaming rule change

Kenya: Country Among Top States With Robust Telecoms Secto

[business daily] Innovation and increasing investment in telecoms has raised consumer access to services and pushed Kenya to recognition as one of the world’s most creative users of the mobile phone.

The country joins Uganda and Tanzania atop the list of African countries that have highly competitive mobile phone sectors which have led to increased gains for consumers and their economies.

“Each of these three markets has been a laboratory for competition. The number of operators has led to increased investment and in all three countries, this competition has benefited African consumers as the cost of owning and using a mobile phone has fallen,” says a new report, titled African Telecoms and Internet Markets by regional research house Balancing Act.

Each of the three countries have over 10 million mobile subscribers — the biggest numbers regionally — who have benefited from reduced calling charges and exposure to unique products such mobile money transfer solutions which are becoming the grease that the economies shall look to for future growth.

In particular, Kenya’s increasing reliance on telecommunications has translated to larger economic gains for the country.

The sector currently contributes 2.8 per cent of the country’s Gross Domestic Product (GDP) and analysts expect that contribution to rise to 15 per cent in the next three years on the back of increased tax revenues from mobile operators and the sector’s direct and indirect contribution to the economy.

Telecommunications has become a key employer of Kenyans, with 50,000 working directly within the sector and nearly 700,000 involved in related businesses.

“It is now widely accepted that the communications sector will create a more economically viable Kenya. The sector has the potential to contribute upto 50 per cent of the country’s GDP,” said Dr Bitange Ndemo, Information Permanent Secretary.

Safaricom still maintains the lion’s share of the market, with 78 per cent of all mobile users on its network, while Zain commands over 18 per cent.

Telkom Kenya and Essar share the remaining percentage.

Meanwhile, the report points to last year’s mobile price war instigated by rising competition for mobile voice customers as the cause of a significant decrease in calling charges that spurred increased consumer spending and investment by mobile players.

Between the third quarter of 2007 and the end of 2008, calls to other subscribers on the same network fell by over half, from Sh18.10 to Sh8.98.

Renewed focus on data or internet services has led more players to angle their products to include data services, a move that Balancing Act believes will inspire further growth in the sector.

“The mainland East African countries currently connected by satellite will see a large increase in international bandwidth used as prices drop from around $5,000 per megabyte per second to something close to $500 on the new fibre connections.

This cheaper bandwidth price should lead to cheaper Internet prices for consumers,” said Balancing Act.

The emergence of a unified licensing framework that allows industry players to offer a variety of communications services has led to the growth of the internet sector.

Each country now has several hundred thousand subscribers who access the Internet using their mobile phone.

Country Among Top States With Robust Telecoms Sector