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France: 92% of the population has a mobile phone according to ARCEP

[Reuters] The number of mobile users continues to rise in France with 91.8 percent of residents subscribing to wireless services as of end-June, up from 88.1 percent a year ago, the telecoms regulator said on Wednesday.

French wireless operators, including Orange, Bouygues Telecom and SFR, together attracted 678,000 customers during the second quarter, raising the total number by 1.2 percent against the same period last year.

In 2008, quarterly growth reached 0.5 percent year-on-year, Arcep said.

Mobile virtual network operators, (MVNOs) which buy minutes wholesale from incumbents, counted 2.9 million subscribers by the end of June, giving them a market share of 5.3 percent against 4.6 percent at the same time last year.

As of June 30, France had 58.905 million wireless service subscribers.

In France, 92 percent of residents use a mobile

USA: mobile ringtones maket contracts in recession

[emediawire] According to a recent analysis from SNL Kagan, ringtone sales shrank last year as subscribers learned how to add ringtones to handsets with no direct purchase through their carriers.

U.S. Mobile Music Market by Revenue to Labels
We estimate this category grew at a 37% CAGR from 2005 to 2008, from $77 million to $199 million.
Ringtone sales declined 24% in 2008 versus 2007, from $714 million to $541 million, causing overall U.S. mobile music revenues to post an annual decline — a first for a U.S. mobile content category. Ringtones’ share of the total U.S. mobile music market fell from 80% in 2005 to 63% in 2008.

Although the popularity and use of ringtones remains strong, many subscribers have found ways to bypass labels and carriers, or “sideload” music — editing MP3 files and transferring these user-generated ringtones to handsets. SNL Kagan expects labels will begin pricing ringtones lower to rekindle demand lost to sideloading.

So what’s the next revenue generator for mobile music? “When we ask mobile music insiders what will replace ringtone revenues, RBTs (ringback tones) are most often mentioned,” said SNL Kagan wireless analyst John Fletcher. “We estimate this category grew at a 37% CAGR from 2005 to 2008, from $77 million to $199 million.”

Other mobile music services expected to grow in importance going forward include full-track download services and ad-supported mobile streaming radio. Overall, the U.S. mobile music market grew at a 20% CAGR from 2005 to 2008.

This report was published in SNL Kagan’s Wireless Investor feature and is available via the SNL Kagan Unlimited Information Service. For more information on SNL Kagan Unlimited, contact Sales at 866.296.3743; SNLKaganSales (at) snl (dot) com.

Shrinking Ringtone Sales Lead to Decline in U.S. Mobile Music Market

USA: the stimulus of $7billion for broadband will be too little to achieve its goals

[business week] Access to telecommunications networks for all Americans has been the centerpiece of U.S. information policy for 75 years. Now the U.S. government is endeavoring to equip every citizen with broadband Internet access. But the $7.2 billion Congress has allocated for the plan may not stretch as far as lawmakers envision.

The economic stimulus package, officially known as the American Recovery & Reinvestment Act of 2009, directs the Federal Communications Commission to construct a “national broadband plan” and provides $7.2 billion to the Agriculture Dept. and Commerce Dept. for grants and loans for broadband deployment and related projects.

In doing so, Congress kicked off a race for government broadband money and a debate over how to achieve universal broadband access. Ironically, the money will likely be gone before the broadband policy is in place.

Part of what’s slowing the process of rolling out broadband networks to remote rural and unwired urban areas are debates over how fast the networks should be, how much it will cost to provide universal broadband service, and who will pay for it.

A Leap in Data Capacity
Broadband connections allow the fast flow of information that permits people to send e-mail, shop online, and retrieve information from the Web at high speeds. Broadband Internet access also lets PC users exchange videos, music, and other large digital files. To get an idea of the leap in data capacity we’re talking about, standard phone system voice calls transmit data at the rate of about 10,000 bits per second. But digital videos require bandwidths of about 2 million bits per second. Applications such as online “distance learning” classes need even more.

Some companies and consumer groups have advised the FCC to set a goal for national broadband speeds of 10 million to 20 million bits per second. Meeting that goal will require network speeds 20 to 100 times faster than is typical in today’s networks, which were designed for voice or one-way video distribution. Upgrading, extending, and adding to today’s networks will require enormous capital expenditures.

The problem is, nobody really knows how much capital will be needed. The broadband goal isn’t yet defined, and the U.S. doesn’t have an accurate count of how many households lack Internet connections or are “underserved” by slower networks.

Part of the government’s stimulus money will go toward defining this “broadband gap.” Closing the gap could be more expensive than the country expects, however, and will depend on several technical and geographic factors.

A More Realistic Estimate

Many estimates say that about 40 million U.S. households may be unserved or underserved by broadband networks and that providing those homes with broadband connections will cost about $1,500 per household. That comes to $60 billion at minimum, since this math excludes the money consumers will need to spend to acquire PCs and other computer gear.

The $60 billion estimate also excludes the cost of bringing users who are in areas served by slow broadband connections up to the emerging national standard. Our best estimate of the minimum capital requirement is about $120 billion. This assumes substantial provision of wireless Internet service to rural homes and elsewhere, which is contingent on making available more radio spectrum.

It’s clear the $7.2 billion stimulus package funding won’t go very far, even if all the money is used for network investment. And that won’t likely happen, since the Recovery Act says the money also needs to be used for things such as consumer education and maps that show which areas are least served.

Some public interest groups urge more government funding and call attention to efforts of state, local, and foreign governments to build networks with tax funds. But the fiscal realities are discouraging.

To Spread Broadband, $7.2 Billion Isn’t Enough

Haiti: Political and economic turmoil have held back development of the telecommunications sector

[official wire] The Haiti – Telecoms, Mobile and Broadband profiles the fixed-line, mobile and broadband markets in Haiti.

Haiti’s economic and social indicators are still far lower than the average for Latin America and the Caribbean. The political and economic turmoil of recent years has kept Haiti’s telecommunications sector as one of the least developed in the world. In early 2009, Haiti’s fixed line teledensity was amongst the lowest in the world, at less than 2%.

Fixed-line services are provided by state-owned monopoly operator Telecommunications d’ Haiti (Teleco), a branch of the Ministry of Public Works, Transport and Communications. Teleco is inefficient and poorly managed. There is a lack of accountability and questionable business practices.
Although in mid-2007 the government announced its decision to privatise Teleco, by late 2008 Teleco was still government owned and with the economy still reeling from significant hurricane damage, it appeared unlikely for the privatisation to return to the national agenda during 2009.

Given the stagnating fixed-line infrastructure and poor fixed-line penetration rates, mobile is likely to remain the principal form of telecommunications for the short-to-medium term. In the longer term growth can also be expected to come from wireless broadband solutions such as WiMAX.

This report contains overviews, analyses and statistics of the Haitian fixed-line, mobile and broadband markets.

Key highlights:
• In early 2008, Comcel in partnership with Alcatel-Lucent, launched a WiMAX network under Comcel’s 3.5GHz licence.
• Haiti’s mobile market continued to enjoy strong growth during 2008, reaching a penetration level of almost 40%by September, up from 18% in 2006.
• Digicel’s subscriber growth in Haiti remained robust during 2008, with Digicel accounting for approximately 63% of the mobile market by September-2008.
• In August and September 2008, Haiti experienced a series of devastating hurricane, with economic damage and loss estimated to be over $900 million, approximately 15% of GDP.
• Following the crippling effect of the hurricanes of Haiti’s economy, the privatisation of Teleco appeared to have slipped from the government’s agenda.

Haiti Telecommunications: Stagnating Fixed-line Infrastructure And Poor Fixed-line Penetration Rates
see also Haiti – Telecoms, Mobile and Broadband

ASEAN: consumers seeking improvement in terms of service from ISPs and MNOs

[bangkokpost] Subscribers and users of the internet and mobile phone services in Thailand and in other Southeast Asian countries are victimised by identical problems.

As these services are run by just a handful of operators, consumers are left with limited options to accept whatever packages are on offer.

This way users are either being directly or indirectly ripped off and “deceived” by the unfair practices of telecom giants, concluded consumer advocates and telecom experts at Thursday’s conference on telecommunications and consumer protection in Chiang Rai.

Led by the Southeast Asian Consumer Council, delegates from Thailand, Indonesia, the Philippines, Malaysia and Singapore joined their counterparts from Hong Kong, Australia and Spain to discuss the related problems at length, from billing inaccuracies to spam marketing messages, and ways to solve them.

What was worse was, they said, while consumers have been taken advantage of by the industry, little has been done by the business sector and regulators to provide them with better services and prevent potential health impacts.

Their message is: Unless national regulators and governments step up pressure on telecom giants, consumers will continue to bear the brunt of unfair practices and risk sicknesses like developing cancerous brain tumours.

In Thailand, about 90% of mobile phone users choose pre-paid services, says the National Telecommunications Commission. Currently, there are 58 million mobile phone numbers in use in the country.

But all the current operators offer non-refundable, time-limited prepaid packages, meaning users involuntarily lose their money if they cannot use up all the credit.

“Buyers may be unaware that this is unfair because the credit unused each time may not be that high,” said NTC commissioner Sudharma Yoonaidharma.

“But there are tens of millions of pre-paid users in Thailand. This means there could be up to a hundred thousand baht of unused credit, as free revenue, going into the pockets of operators,” he said. “This is the money that should be returned to buyers.”

Earlier, DTAC, a Thailand-based mobile network operator, charged its post-paid customers a reactivation fee should they want to resume the service terminated due to late payment. The NTC later ordered it to scrap the practice after countless complaints from consumers.

In the Philippines, the level of customers being ripped off by telecom giants is excessive, said Filipino delegate Reilee Joy Dulay. Common complaints include deceptive and exorbitant rates, a pricing scheme and expiration dates on prepaid cards, she said. Mobile phone users there are charged for each unsolicited or spam message sent by the operator. The situation is not much different in Indonesia where there are just 12 operators providing services for 230 million people, said Indah Suksmaningsih of the Indonesian Consumers’ Organisation.

Operators mislead people through advertisements. Buyers, therefore, are not well-informed of hidden terms and conditions on charges, she said.

For the internet, the conference was told the cost of broadband service in the Philippines is too high and thus a heavy burden for low- to medium-income people. Internet users in Indonesia have to put up with poor quality of services. In Thailand, the government recently asked the operators to halve their pricing of broadband services only to receive a cold response.

What is the same for the three countries is the telecom industry is dominated by just a handful of operators, leaving buyers with limited choices.

“The number of users continues to increase dramatically while that of service providers has rarely expanded over the past years,” said Mr Sudharma of the NTC.

The problem is that investment in infrastructure development in this industry is high, meaning there is room for only a limited number of players, he said.

This market domination is what really allows the operators to force unfair conditions on consumers, he said.

Seah Seng Choon, executive director of the Consumers Association of Singapore, agreed, saying national governments needed to bring about more liberalisation to encourage more providers in this sector.

While businesses enjoy less competition in this highly profitable industry, the majority have not invested that much in improving the quality of their services.

The conference was told that users have had to tolerate poor quality services, such as having their communications cut off without warning, or asked to pay more for high-speed internet only to receive a lower level service instead.

What is more worrying, said electrical engineer Sumeth Vongpanitlerd, is that operators are not willing to invest more to safeguard the health of users.

As wireless and mobile technologies cannot do without the installation of relay antennas at the community level, electro magnetic radiation released by the antennas could endanger the health of those regularly exposed to it, he said.

Though there is no scientific proof that it can cause headaches and brain cancer, health experts have not ruled out the possibility, he said.

But operators can minimise the risks by increasing the number of antennas as that could reduce the radiation’s density level. “Operators don’t want to do that because they would have to invest so much more. If this is obliged by law, potential health risks would be eliminated. It’s up to the government whether it wants to take action,” he said.

Telecom operators in hot water – Conference agrees users being ripped off