FCC turns up heat on mobile operators in US

Regulatory authorities in the United States are taking a closer look at anti-competitive business practices. Mobile operators now find themselves being scrutinized for practices involving exclusivity arrangements signed with phone manufacturers. Also coming under examination are roaming and interconnection arrangements for data services. Operators like AT&T and Verizon own considerable segments of land-line networks and it is widely felt that this creates a conflict-of-interest, delaying the wider rollout of mobile Internet services.

Aussie regulator pushes for stricter separation of Telstra units

 

Regulators more willing to put telcos under the lens

Presently attempting to work through a large backlog of articles. The article that is the basis of this post continues to keep the spotlight on the regulatory changes being proposed for Telstra. Australia’s incumbent operator is squarely in the sights of Australian regulators:

Australia’s competition watchdog said imposing a tough structural separation regime on Telstra Corp. (TLS.AU) is the only way to guarantee an equal playing field during the transition to a planned multibillion dollar national broadband network but the company argues there’s no need for such a move.

This calls for looking at regulatory issues comes while Australia attempts to roll out the $43 billion NBN:

Do monopolies have an interest in thwarting broadband plans?

In recent weeks, this site has focused a great deal on the situation with Telstra in Australia. It’s because this drama has so many dimensions worth analyzing. A key development was the court ruling against Telstra on the improper use of Optus client information. Telstra used information it had access to as wholesale service provider to assist its own retail unit in targetting Optus customers.

These smaller developments are contributing to what is going to be a very dramatic overhaul of telecommunications policy down under.

Optus Chief Paul O’Sullivan on why he thinks Telstra will try to delay roll-out of the new broadband network proposed by the Government:

“The incentives for Telstra to delay a roll-out of a new high-speed broadband network or to try to re-monopolise a high-speed broadband network remains,” he said.

“The fundamental drivers of most companies’ behaviour lie in their underlying economics and in their competitive position. In Telstra’s case that drives them to very notable characteristics.

“First of all, they have a very strong incentive to delay the roll-out of any competitive infrastructure which levels the playing field in services to the home.”

The news from Australia should only make us wary of FINTEL. Is the upcoming announcement in July merely rhetoric of change from their part, when all that’s really being done is securing FINTEL’s competitive position? As wholesale provider of bandwidth to Vodafone, Digicel, Kidanet, etc. they say that market forces and competition will drive down prices. But, looking at what the Optus CEO is saying and the court ruling on the improper use of customer information, it is becoming harder and harder to believe FINTEL.

As developments in Australia prove, without competition in the operation of the underlying network, pricing of services will remain high.

Will mobile and fixed broadband Internet offerings converge?

In developed countries with high rates of broadband Internet usage in homes, mobile Internet will be seen as a separate category from fixed broadband offerings. In the UK, incumbent operator BT is adding mobile broadband to its consumer packages, positioning the technology as a complement to fixed broadband:

BT Total Broadband customers can now get up to 8Mbps cellular broadband including 1GB of monthly data usage. The lowest option costs £15.65 per month over 18 months for both fixed and mobile broadband, with BT claiming HSDPA download speeds of 7.2Mbps.

In developing/majority world countries, where broadband Internet usage rates are low, consumers are less likely to see the services as complementary. As speeds on next-generation wireless networks catch up to what is typically expected of wired connections like cable, there will be less of a distinction between the two types of service. Already there are devices on the market that blur the distinction between fixed and mobile Internet service and hint at the exciting possibilities convergence will offer down the road.

Novatel’s MiFi 2200, a 3G Wi-Fi router.

The New York Times recently covered the Novatel MiFi 2200, a device that will be made available from Verizon in North America in mid-May.  It is a new take on existing cellular-modems as  the device uses a cellular 3g signal from a mobile network to create a portable Wi-Fi hotspot anywhere you take the device. The Wi-Fi signal covers about a 30ft. radius and can be shared with up to 5 users.

What is incredible about this device is that Verizon even suggests that the MiFi device could be used as a primary family Internet service at home. Just two short years ago, sharing a cellular-modem account was discouraged by the same provider–a real sign of the maturation of the ability of 3g networks to carry greater traffic.

Mobile Internet offerings from operators like Vodafone and Digicel are to be expected and do not come as a surprise for anyone. Leadership at TFL should take notice of the BT case. Combining mobile Internet, fixed Internet, voice, and IPTV in a consumer package could make TFL Fiji’s first triple-play or quad-play threat.

It’s a beautiful day in the neighborhood: Unwired Fiji’s WiMAX move and news from Asia-Pac

Unwired Fiji has selected Motorola to deploy its next-generation WiMAX network in Fiji. A very positive development. Coming in front of the July 17th announcement, it’s proof that operators are willing to invest in considerable upgrades that expand network coverage and increase performance.

From Communications Direct:

Motorola announced today that it has been selected by Uniwired Fiji to design and deploy an end-to-end 8012.16e-based WiMAX network to upgrade and provide increased capacity to the operator’s existing network for expansion of network coverage and capacity.

In the Philippines, The National Telecommunications Commission (NTC) has allowed Globe Telecom to ‘make permanent its mobile internet service for post-paid subscribers’. The company offers monthly subscriptions starting at PHP149 (USD3.1), giving ten hours of mobile internet. A low-priced introductory service option is critical for expanding Internet usage in the population.

Governments are reassessing regulations toward telecommunications as they look for investment in next-generation wireless networks. In Vietnam, significant reforms are being put in place, including provisions for foreign-ownership of network infrastructure. According to a  Telegeography update:

… the country’s draft Bill of Law on Telecommunication has been put forward for discussion at the National Assembly Steering Committee. If passed, the bill will allow private companies to build network infrastructure for the first time and will open up the telecoms market to foreign investors, as part of Vietnam’s commitment to the World Trade Organisation (WTO).

In the Asia-Pacific region, there’s a great deal of activity that impacts the deployment of wireless networks and services. Again we see governments taking steps to change policies and increase investment in next-generation networks.  A nation like Vietnam opening itself up to outside investment in telecom infrastructure is a sign of how old attitudes  are making way for new pragmatism.

Glimpses of July 17th Announcement

Two more months and then we'll know what the beast looks like

Until the announcement on July 17th of the 2nd round of telecom sector liberalisation, we are like the people in this picture, only able to  guess at the parts of the elephant. We have already seen what competition in mobile means, and on that day, we will be given the road map for how Internet will advance in Fiji.

So, as we attempt to piece together what the elephant looks like, let’s take a look at what Dionisia has for us over at FijiLive:

The deregulation of international access, scheduled for July 17 this year, is phase two of the process. It will mean that any domestic reseller of telecommunication services may directly source its international bandwidth needs without going through FINTEL, as was previously the case.

Her article was very informative and helps us get a better understanding of how FINTEL is positioning itself with regard to future competition and government regulation.  By getting out ahead of government calls for liberalisation of the international gateway they hope to avoid more serious measures that government might push.

Huawei to invest in PNG infrastructure

China’s leading telecommunications company, Huawei Technologies, will invest in Papua New Guinea’s telecommunications infrastructure. According to a leading PNG daily, the decision is a “a demonstration of confidence in the Pacific island country’s economy”.

Huawei also signed a memorandum of understanding with the PNG officials for plans that include providing assistance setting up an Integrated Government Information Service (IGIS). The IGIS would help PNG Government deliver e-govt. services such as passport and visa applications, tax and medical rebates, vehicle registration, etc.

Untangling the SPIN about submarine cable projects

Landing a submarine cable is no small task (Source: SPIN presentation)

An Up-to-date primer on the state of submarine cable projects in the Pacific Region is titled Trans-Pacific Capacity: Possible New Price War? It includes a section that heavily references the South Pacific:

The latest construction wave began in 2006 and has been centered on the Asian and Pacific Regions. The current round of activity started with the Gondwana, Australia to New Caledonia system,Telstra’s Australia to Hawaii system and six new trans-Pacific cables. These new cables are the Trans Pacific Express, Asia American Gateway, FLAG’s Eagle, Next Generation Network, and the Unity cable projects (Source: TMC).

Out of these six projects, only one faces significant delay: