European Market

EHF-a new frontier?

Paul Rasmussen — Fri, 23 Jan 2009 12:34:56 -0500

A European Union research group has been exploring the potential for wireless communications in the spectrum between 30 to 300 GHz--the Extra High Frequency (EHF) bands. The group, which is known as Integrated Photonic mm-Wave functions for Broadband Connectivity (IPHOBAC), has been working particularly on communications in the 60 GHz band. This spectrum could be used to deliver broadband services to users who cannot be served by fixed line ADSL. The group has already carried out field trials and has successfully demonstrated reliable connectivity at this frequency, delivering 10 Gbit/s of data throughput in 25 mm/hour of rain over a one kilometre link. The IPHOBAC co-ordinator Andreas Stohr, a professor at the University of Duisburg-Essen, said that even in worse rain conditions, of 85 mm/hour, the link could still provide 99.9999 per cent availability at a range of up to 600 metres. The 60 GHz band is of considerable interest as a number of countries have approved it for unlicensed use. If suitable transmitters and receivers can be developed 60 GHz could become as popular as the unlicensed spectrum at 2.4 GHz. The EU sees 60 GHz as a solution for connecting rural communities to broadband services but in reality it is more likely to be used to deliver greater competition in urban areas.

For more on this story:
- go to The Register

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Moves to toughen up EU roaming bill

Paul Rasmussen — Wed, 14 Jan 2009 11:40:49 -0500

European Union proposals for capping roaming charges, which are expected to severely impact operator revenues, could be toughened if one European MP gets his way. The legislation currently winding its way through the European Parliament will cap the cost of roamed text messages to 11 Euro cents from July, down from around 29 Euro cents at present. The cost of mobile data downloads will also be capped at one Euro per megabyte.

However, the Romanian Euro MP responsible for steering the bill through Parliament thinks that in some respects it does not go far enough. Adina-Ioana Valean says operators should not charge roaming customers for receiving voice mail messages in the same way as the new bill bans charging for receiving roamed SMS messages. Valean also wants to go further than EU telecoms commissioner Viviane Reding with regard to mobile data download charges. Instead of Reding's proposed one Euro per megabyte, Valean wants the wholesale price of roamed data to be capped at 0.0001 Euro cents per kilobyte. Given the complexity of the EU legislative process it is difficult to determine whether Valean's proposals will become law but predictably they have already been condemned by operators who feel the entire bill is too interventionist.

For more on this story:
- go to Silicon.com

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EU slashes cost of text roaming

Paul Rasmussen — Fri, 28 Nov 2008 10:41:43 -0500

As anticipated, European Union telecoms ministers have agreed the cost of sending an SMS when roaming within the EU bloc should be reduced. They have recommended the cost of a roaming text message be capped at eleven Euro cents. The recommendation still requires the approval of the European Parliament but this is expected to be a formality.

Once approved the measures will come into effect July 1, just in time to benefit tourists during the peak holiday period. Currently the average price for sending an SMS whilst roaming in Europe is 29 Euro cents so the new regime is likely to have a significant impact. The ministerial council also recommended a cap of one Euro per megabyte on data roaming charges.

For more on this story go to The Register and The Inquirer

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Blocking of mobile VoIP: EU interrogates MNOs

Paul Rasmussen — Fri, 14 Nov 2008 11:11:37 -0500

Each European MNO is being questioned by the European Union (EU) as to how they treat mobile VoIP calls over their networks. The involvement of the EU has been driven by operator clauses in their contracts that either block or exclude mobile VoIP traffic and as a consequence of European competition laws.

Operators had been requested to supply the EU anti-trust authorities with answers as to what "tools they used to control, manage and block, slow down or otherwise restrict or filter Internet-based voice calls."

While some operators such as KPN and Hutchison 3G publicly support mobile VoIP calls, with 3 selling handsets specifically designed to work with the Skype service, other MNOs either obstruct or ban outright the use of the technology across their networks. Last year, VoIP provider TruePhone threatened to sue Vodafone after the operator was alleged to be blocking calls over its VoIP network.

For more on this story go to:
Cellular News

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Future mobile broadband services jeopardised by regulation

Paul Rasmussen — Fri, 04 Jul 2008 13:38:46 -0400

Europe's mobile industry is cutting back spending on new networks and services as a growing regulatory burden from the European Union puts profitability under pressure. To justify the imposition of retail price caps, the European Commission has claimed that mobile operators are making excessive profits, but the European mobile industry's return on capital employed was just 9 per cent in 2006 compared with more than 20 per cent in software, pharmaceuticals and several other sectors, according to management consultancy A.T. Kearney. article

T-Mobile cuts data roaming charges

Mon, 23 Jun 2008 06:59:58 -0400

The cost of data roaming across Europe will fall dramatically from July 1, at least for some customers. T-Mobile has announced it will slash roaming rates for Internet access and mobile broadband usage by 80 per cent from that date. Data calls using a USB dongle or data card will fall from £7.50 to £1.50 per megabyte. In addition, from August 30, T-Mobile will reduce the cost of sending an SMS from EU countries from 40 pence to 25 pence, a cut of 38 per cent. For international voice and SMS services, from August 1, T-Mobile will be introducing bundles comprising minutes and texts, structured to give customers control over the use of their allowances and the costs of roaming. Interestingly, July 1 is the date when EU telecoms commissioner Viviane Reding intends to introduce new regulations to cut the cost of data roaming within Europe.

For more on this story:
- go to Mobile News and Silicon.com

Related stories:
Call for EU to slash European data roaming costs. Article
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Reding hints at called party pays for Europe

Thu, 19 Jun 2008 06:59:58 -0400

EU telecoms commissioner Viviane Reding has sent shivers up the backs of European mobile operators by suggesting that she was not opposed to the called-party-pays business model. In an interview with the Financial Times Reding said that the European cellular market was continuing to develop and there was no reason to stick with existing pricing models just for the sake of it. She did temper her remarks somewhat by adding that business models were for operators to decide rather than the European commissioner. It has always been an article of faith amongst the European mobile community that the rapid development of the European cellular market was mainly due to the use of the calling-party-pays business model. The alternative business model has been standard in the U.S. since the inception of the mobile market and called-party-pays has also been widely adopted across Asia. European operators would try to suggest that the slower development of the U.S. market was due to the implementation of called-party-pays but in reality there is little to support this thesis. Technology issues and differing market conditions are probably the reasons behind the slower growth of the U.S. market which in any event is now catching up fast. Industry watchers believe this latest statement from Reding is part of the EU's ongoing drive to cut the cost of using mobile phones whilst traveling. Voice roaming charges for mobile phone users have already been capped and data charges are due to meet the same fate from July 1st. It is claimed that introducing called-party-pays would further reduce mobile phone charges to end users.

For more on this story:
- go to The Register and TelecomTV

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Spain targeted by Mexico's Slim

Thu, 12 Jun 2008 06:59:56 -0400

Having backed away from acquiring a Spanish mobile licence three years ago, the owner of America Movil, Carlos Slim, has again declared an interest in entering the Spanish market.

Speaking at a press conference in New York, Slim said that his company had an interest in participating in the Spanish telecoms market under the right conditions. This renewed attention to the European sector, according to industry observers, is likely driven by investigations by Mexican authorities into antitrust activities in the fixed-line and wireless markets. Slim's America Movil is used by over 70 per cent of wireless subscribers in Mexico.

Spain's former state phone company Telefonica is Slim's main competitor in Latin America (albeit a distant second), where it has wireless and fixed-line operations in most of the region's major markets. However, the revelation that it might have a new--and aggressive, competitor, in its home market is a distraction Telefonica does not need given its ambitions to expand into other regions.

For more on this story:
- read Total Telecom and Telecom TV

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Cracks showing in FT's bid for TeliaSonera

Thu, 12 Jun 2008 06:59:55 -0400

Despite some analyst support for France Telecom's (FT) bid for TeliaSonera, there are growing signs that it might need to look elsewhere, with Brussels-based Belgacom being put forward as a more tolerable alternative. The major hurdle for FT is the downward slide of its share price since rumours surfaced mid-April of a likely bid--the shares have slipped 17 per cent in this two-month period.

Further complications have arisen with fresh speculation that Telenor might make a bid for TeliaSonera, albeit that this plan would likely collapse under the weight of regulatory obstacles, a backlash against Nordic job losses and political complications.

FT's financial director, Gervais Pellissier, has taken an aggressive line with respect to the bid by threatening to walk away from its proposed €26.5 billion takeover of TeliaSonera unless the operator rapidly signaled its interest in a tie-up. Pellissier also admitted that FT could withdraw its offer if its share price started to plunge amid continuing uncertainty over a deal. However, Ovum's John Molony has painted a more positive picture of the strategic reason for a merger between FT and TeliaSonera.

For more on this story:
- read AFX News , The FT and Ovum's analysis

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What's behind FT's interest in TeliaSonera and Telenor? FT/TeliaSonera story

France Telecom needs to up its bid for TeliaSonera

Mon, 09 Jun 2008 06:59:58 -0400

Having finally made a bid for TeliaSonera, France Telecom (FT) is now being lambasted by the analyst community for pitching the price much too low. The offer of SKr56.22 for each TeliaSonera share is seen as needing to be above SKr60 to grab the attention of the major shareholders.

However, FT is determined to play hard ball claiming it won't raise the offer and is prepared to walk away unless there is a positive answer within 15 days. 'We have other options', said FT CEO, Didier Lombard.

Adding to the sense of mystery, Lombard hinted that FT might be prepared to alter certain "non-monetary" elements of the scheme, but declined to say what these would be.

Two major shareholders in TeliaSonera, the Swedish and Finnish governments, are said to be relaxed about the situation and speculated that FT's bid would encourage higher bids from other telecoms firms.

The Swedish government has the added political pressure of having sold shares in TeliaSonera to nearly 10 per cent of the population in an initial public offering at SKr85 each. One banker close to the deal has warned that, unless a much higher bid is made, this public embarrassment could see the Swedish government declining to accept FT's SKr56 offer.

For more on this story:
- read AFX News and The FT

Related stories:
France Telecom up against Swedish Army over TeliaSonera sale. FT story
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