Posts Tagged ‘upgrade’
UK: consumers prefer to cut back on dining out than buying broadband, mobile telephony
Customers are looking to save money on communications and media deals but are still willing to pay up for services that enhance the experience, such as digital video recorders and mobile broadband.
Britons are shopping around more, signing long-term contracts in exchange for cheaper payments, and bundling services such as TV, phone and telephony, Ofcom’s Communications Market Report said.
“Despite the recession, people are spending more time watching TV, using their mobile phone or accessing the Internet,” said Ofcom partner Peter Phillips.
“Meanwhile, we are becoming more canny about the way we pay for these services (and) as well as getting better deals we are demanding more control.”
In the first quarter of 2009, 46 percent of consumers took a bundle with two or more services from one operator, such as pay TV groups BSkyB and Virgin Media, up from 39 percent a year earlier.
For mobile phones, some 70 percent of users said they would rather retain their existing handset than upgrade if it meant a cheaper deal.
But the report showed that despite the pressure on spending, consumers were still prepared to pay for services that enhanced the experience, such as digital video recorders, high definition television and mobile broadband.
According to the report, more than a quarter of UK homes had a digital video recorder, while consumers with faster broadband access were also catching up on programs via online catch-up sites.
More than 2 million households had access to a high definition service, according to the report, and 17.6 million HD-ready sets, in nearly 9 million households, have been sold in the UK.
Almost 70 percent of homes took broadband by the end of the first quarter of 2009, up from 58 percent a year ago, while more than one in 10 households had access to mobile broadband.
Of those taking mobile broadband, three quarters also had access to fixed-line broadband, showing the two services can complement each other.
While online, some 19 million Internet users visit Facebook, spending an average of nearly 6 hours per month on the site, although those in the 15 to 24 age group were spending less time on social networking sites in general, down from 55 per cent in the first quarter of 2008 to 50 per cent in 2009.
There were 2.6 million Twitter users by May 2009 — up from 0.1 million on the previous year.
USA: AT&T reports significant growth in use of its Wi-Fi hotspots in Q2 2009, fueled by smartphones
In the second quarter, AT&T handled nearly 15 million Wi-Fi connections on its network — a 41 percent increase over the first quarter. With approximately 25.6 million connections so far in 2009, AT&T Wi-Fi connections this year have already surpassed the 20 million connections seen in all of 2008.
Additionally, the number of customers with Wi-Fi access as part of their AT&T service continues to grow. AT&T broadband connections — which include both wireline broadband and wireless LaptopConnect cards — grew by 209,000 in the second quarter to reach 16.9 million in service. AT&T includes unlimited Wi-Fi access with qualifying AT&T High Speed Internet plans, 3G LaptopConnect plans and with select smartphone plans.
Wi-Fi Connections Increasingly From Smartphones Versus Laptops
In the second quarter, 49 percent of the total connections were made by integrated devices. This is an increase of 41 percent over the first quarter 2009 — a significant shift that tracks with the growth of Wi-Fi enabled devices.
“Our Wi-Fi network is a competitive differentiator for AT&T and a major value for our customers,” said David Christopher, chief marketing officer, AT&T Mobility and Consumer Markets. “We include unlimited Wi-Fi access with the majority of our broadband and smartphone plans, and our customers are clearly taking advantage of it. It’s another reason that twice as many smartphone customers choose AT&T than any other carrier.”
AT&T Investing in Wi-Fi Network
Since the beginning of the year, AT&T quadrupled its Wi-Fi network authentication capacity in preparation for increased sessions, the ongoing rise in consumer demand for Wi-Fi, and to ensure reliable performance on the network.
“Our customers want both speed and mobility,” said Angie Wiskocil, senior vice president, AT&T Wi-Fi Services. “They love the convenience that AT&T Wi-Fi offers, and we continue to enhance our Wi-Fi network, expand our portfolio of Wi-Fi enabled devices and extend our hotspot footprint to offer the best customer experience.”
Also in the second quarter, AT&T made several Wi-Fi enhancements and formed strategic relationships including smartphone-friendly upgrades to the Giants Digital Dugout Wi-Fi portal at AT&T Park in San Francisco, which serve to enhance the fan experience at Giants home games, and a strategic agreement with Barnes & Noble bookstores nationwide to provide complimentary Wi-Fi to any customer that visits a store.
AT&T’s Wi-Fi network complements its wired broadband and wireless 3G networks, offering Wi-Fi connectivity in more than 20,000 hotspots in the U.S. — including retail stores, restaurants and airports from coast-to-coast.
Largest Wi-Fi network claim based on non-municipal company and owned and operated hotspots. An 802.11 b/g enabled device required.
AT&T Sees Significant Rise in Wi-Fi Hotspot Connections During Second Quarter
see also A full list of AT&T Wi-Fi locations
Ghana: Mobile penetration at the end of 2008 was close to 50% and could reach 60% in 2009
Ghana Ended 2008 With A Mobile Penetration Rate Close To 50%
Europe: Commissioner Reding set out priorities for the future, including mobile payments, electronic invoicing and cloud computing
The commissioner was nominated for a third five-year term by her native Luxembourg earlier this week, although it isn’t yet clear whether she will be able to keep the telecom portfolio under a new commission formed in the autumn.
Speaking at a gathering organised by Brussels-based thinktank The Lisbon Council, Reding said her first priority for the next commission would be to create a legal framework to make it easier for consumers to access digital content wherever it is produced in Europe. This would include an E.U.-wide licensing system for copyright and other intellectual property rights in online services and E.U. rules to encourage the digitalization of books, she said.
Another priority would be the creation of a safe system for mobile payments.
“We have more than 500 million mobile users in Europe. This means Europe has the economies of scale that will allow transforming the mobile phone into an electronic wallet,” she said.
Consumers would be able to buy tickets at a train station, sodas from a vending machine or flowers in a shop, she added.
In addition, Europe should encourage small businesses to go digital by creating an E.U. “cloud computing” system, similar to systems that exist in the U.S.
“In Europe we have 23 million small and medium-sized businesses accounting for 100 million jobs,” Reding said. “But only 9% use electronic invoices and only 11% have technology-based human resources management.”
Cloud computing would mean small businesses could download business software from the Internet for a small monthly fee rather than buying it outright and having to upgrade and maintain it.
Another priority, Reding said, was for companies to make better use of digital technology so as to cut their carbon dioxide emissions, for example by using video conferencing instead of air travel.
During her speech, the commissioner also urged E.U. countries to speed up their switchover from analog television broadcasting to digital as a stimulus for economic recovery.
“I call on all EU governments: Don’t wait until 2012, the EU-wide deadline for the final digital switch-off to bring these benefits to businesses and citizens act swiftly now,” she said.
The commissioner has long been an outspoken supporter of the switchover, as it frees up airwaves to be used for other business ventures such as mobile broadband.
The switchover would increase the value of the spectrum by between EUR150 billion and EUR200 billion, she said.
Converged services are the marketing strategy employed by service providers today to grow revenues and subscriber base, and reduce churn
“Bundling two or more services such as fixed voice, broadband, mobile and pay TV into attractive price plans has proven to result in less customer churn than single-service offerings,” says Frost & Sullivan senior industry analyst Kamlesh Kalwar. He cites Hong Kong’s PCCW which has managed to keep churn rate below one percent since introducing its converged services.
Kalwar further reckons that single-service telco offerings may soon be a thing of the past as tomorrow’s consumers are likely to demand fully converged services from a single provider as a result of changing lifestyles and technology convergence.
New analysis from Frost & Sullivan (http://www.communicationservices.frost.com), Asia-Pacific Converged Services Market Potential, reveals that approximately 20.8 percent of households across 14 Asia-Pacific countries subscribed to dual-, triple- and quadruple-play (quad-play) services in 2008 for total bundled billings of US$58.7 billion. By 2014, residential bundled-service revenues are expected to hit US$88.3 billion.
Dual-play services, typically fixed-line and broadband, are the most commonly contracted bundles at present, with 10.8 percent of residential users.
Triple-play services (fixed-line, broadband and TV) however are likely to see greater adoption in the longer term to account for 11.4 percent of residential subscribers in 2014; while dual-play subscriptions drop to 10.2 percent household penetration and quad-play (fixed-line, TV, broadband and wireless) expected to grow nearly two-fold to 4.9 percent.
Kalwar argues that three forms of convergence are driving the delivery of bundled or multiple services to a single user – convergence of networks, content and devices.
Network convergence: Thanks to IP (Internet protocol), existing networks are capable of delivering a multitude of services – such as a broadband network enabling applications like Internet, TV and VoIP (voice over Internet protocol) – with just an incremental upgrade to the core network. Operators are banking on this opportunity to up-sell their services and increase average revenue per user (ARPU) and customer stickiness.
Content and device convergence: The increased mobility of present-day consumers dictates the need for multiple access points to the same content. Similarly, the sophistication of devices available today supports consumers’ expectations for ubiquitous access to such content.
Given this, Kalwar believes that converged services present obvious benefits to both service providers and users, “Converged services is expected to be a critical strategy for communication service providers in the mid- to long-term.
“Apart from meeting customers’ demands with attractive price points while maintaining ARPU and retaining customers, telcos are also able to roll-out loyalty programs to reward subscribers and offer one-stop customer service
centres and consolidated monthly billings for users,” he adds.
Kalwar cautions however that pricing alone is just part of the battle. “Quality of service, timeliness of market entry and [type of] content will also make or break an operator’s converged offerings. StarHub, for example, has virtually cornered the pay TV market in Singapore with its exclusive content rights and early introduction of services,” he says, adding however that content and broadcast regulations vary country to country, of course.
In addition, in just 30 months since mid-2006, Telstra has very swiftly transformed from a single-service operator to offering bundled quad-play services to its subscribers. In June 2008, Telstra held a commanding 58.5 percent share of
the pay TV market in Australia through its 50-percent owned FOXTEL, after the cable TV network’s viewers tied to Telstra-bundles grew to 30.6 percent the same year.
The company also upped the ante on its retail store experience introducing its interactive T[life] stores in November 2007. The result – a 71 percent increase in revenues from postpaid subscriber net additions and a 31 percent increase in total sales net additions, within a year of operations.
Frost and Sullivan: Converged Services A Natural Play For Telcos

