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Even in a down economy, consumers are unwilling to let go of telecom services
Ofcom, the UK regulator, released a study of national telecommunications use bringing some interesting facts up for discussion. Telecom services play a greater role in our lives and when it comes to prioritizing spending in difficult economic times, users are more keen to view their mobile phones, broadband Internet connections, and digital TV subscriptions as necessities rather than luxuries.
When it comes to prioritizing spending:
Consumers were more likely to cut back on dining out (47%) and holidays (41%), over cutting back on mobile phone use (19%), TV subscriptions (16%) or broadband services (10%).
Two days ago, this site featured a write-up of a Spaceflight Now article that made several claims about O3b Networks. I received an email from O3b Networks CEO, Greg Wyler, where he clarified aspects of the original article.
Since any negativity, even in this remote and barren part of the blogosphere, could possibly have an impact on the fate of O3b Networks, I have decided to delete my previous post. O3b’s efforts are critical to improving the connectivity situation for the Pacific Islands and if this blog played some role in hindering their efforts, then I could not have that hanging on my conscience as I have a great deal of respect for what Greg and his crew are trying to accomplish.
You will not find those assertions repeated on this site, but if you are interested to know, you can follow the link to the Spaceflight Now article.
The response from Greg Wyler, via email:
O3b Networks secured an alternative launch vehicle well before the bankruptcy filing due to Sea Launches inability to meet its contractual obligations. The statements attributed to Sea Launch are not accurate so we cannot comment on why they said them.
Again from Greg, on the alleged downsizing of the O3b satellite fleet:
The O3b Networks system has a scalable fleet based on demand, and customer contracts have exceeded projections every quarter. For instance at the end of Q2 we posted approximately 571m of backlog which is significantly above plan and demonstrates the absolute need for low cost, low latency backhaul.
For now, it appears the launch is on track and will allow O3b to launch service as scheduled, by late 2010. With demand for O3b’s services greater than anticipated, the launch of the 2nd set of 8 satellites also looks like it will become reality. With a constellation of 16 satellites, O3b Networks will provide low-cost, low-latency backhaul service for developing countries that right now have no access to such service.
Thanks to the hard work of Dionisia Tabureguci, the Coconut Wireless has been featured in July’s edition of Pacific Islands Business Magazine. It is a matter of great pride for me to have to this site referred to in a publication like Islands Business. It’s all part of an effort to give the public a better understanding of how telecommunications affects the future of our islands.
Recently, I came across this article via the Radio New Zealand website, that included the following:
If you read about functional separation on this website, then you have a very solid understanding on one of the most important regulatory tools for enabling competition in telecommunications. The UK and New Zealand have successfully implemented functional separation on their incumbent operators. Australia is very close on their heels.
From a CommsDay report, we learn:
In Australia, the Department of Broadband, Communications and Digital Economy has hired a BT director to provide a $60,000 consultancy on functional separation.
Telcos no longer see managing networks as a key competency
Sprint Nextel announced plans to outsource network services to Ericsson earlier this month. This news is of interest for several key reasons. Signing the seven-year, $5 billion deal, Sprint became the first U.S. telecom provider to contract with a third party for network management. Sprint has historically maintained very tight control of its network. Outsourcing of network management is increasingly gaining interest of telecoms as they seek to shift their focus from the engineering of networks to the products and services that will win them customers. Announcement of this deal followed closely on the heels of similar deals entered into by BT, Deutsche Telekom, Vodafone and China Mobile.
There will be 250 million mobile Internet subscribers by the end of 2009. A post on GigaOm goes into great depth about the state of wireless broadband. By September of this year EMEA (Europe, M. East, Africa) will have 60 million subscribers, North America 37 million, and Asia-Pacific will have 56 million mobile broadband users. All indicative of the reality that mobile broadband will be a key gateway for users to get onto the Internet.
These are all signs that the emerging wireless broadband network — regardless of the networking protocol is good for innovators and innovation. More entrepreneurs should be thinking about leveraging this wireless broadband platform in a more meaningful fashion. In developing and emerging markets, this could see technology helping people overcome everyday struggles and generate whole new sectors to economies.
The graphic below helps put the emergence of mobile broadband in context:
Click to view in High-Resolution
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.
From Pacific Business News Online, we have news on a conference on Micro-finance. There have been many recent posts on mobile phones and the impact they can have on the delivery of financial services. In the Pacific, it is key to unlocking the potential of our people. Delivery of these services should be a key benchmark for measuring the success of telecom sector liberalisation.
There is a great deal of interest to make this work in the Pacific:
IFC (International Finance Corporation) is the principal sponsor of Pacific Microfinance Week 2009, a week-long series of events, meetings and gatherings of a range of organisations and individuals that share an interest in promoting the provision of inclusive and sustainable financial services in the Pacific. IFC’s Access to Finance programme forms part of a regional Advisory Services program to improve private sector development in the Pacific. The governments of Australia, Japan, and New Zealand are IFC’s donor partners.
Events like these will hopefully generate interest and bring about movement. Improving access to finance is really one of those key areas that we should seek to strengthen expertise–it really is a key benefit that this technology can provide.
More dissension in the ATH family. Several tipsters forwarded me an email that has recently been circulated by KIDANET support. It appears that Connect is blocking email messages originating from KIDANET users. This is an unfortunate development and one we hope is resolved quickly. The era of liberalisation should be marked by fair competition, not petty displays such as this.
Regulatory authorities must be vigilant against this type of behavior and should have the ability to slap fines and other sanctions in a timely manner.
Here is the email: Read the rest of this entry »
A new market research report for the telecoms sector in New Zealand has been released on the website companiesandmarkets.com. The title for the publication is “2009 New Zealand – Telecoms and Overview & Analysis” and the executive summary can be found here.
The report provides a great deal of insight into the telecoms sector in New Zealand. It finds that the total New Zealand market grew by 2% to $7.1 billion for the year up to June 2008. BuddeComm predicts that the total New Zealand telco market will grow around 2.3% in 2008/09 and 3.5% in 2009/10, although these growth rates could be up to 1% lower, depending on the severity of the global financial crisis.
New Zealand and the United Kingdom are the only countries in the world that have enacted functional separation as a regulatory tool. Citing many of the same reasons given on this site, the report states emphatically that implementation of this regulatory measure has benefitted users in New Zealand tremendously:
Even Telecom New Zealand has itself admitted that functional separation has already begun to stimulate competition in New Zealand. Existing participants now have the opportunity to extend their activities, and additional competitors now have more opportunity to enter the market which has previously been dominated far too much by Telecom. Smaller competitors now have more attractive wholesale arrangements coming into place and this will put further pressure on prices, which have historically been far too high due to Telecom’s overwhelming market dominance.
In Fiji, it’s FINTEL’s dominance over the international gateway that most closely resembles our New Zealand counterparts. The first stages of sharing under liberalisation are being implemented. However, until the prescription of functional separation is handed down from regulators, we will not reap the kind of benefit that New Zealand is experiencing now. Interestingly, even the incumbent operator in NZ acknowledges that the regulatory measure has been a positive development. How long before we see these steps being taken in Fiji?
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