Broadband

Mobile backhaul equipment market to jump 60% in 2009 to US$5.9bn

Paul Rasmussen — Fri, 20 Nov 2009 10:13:19 -0500

Mobile backhaul equipment investments jumped a healthy 59 per cent in 2008 to US$3.7 billion worldwide, and Infonetics Research is forecasting another 60 per cent jump in 2009 to US$5.9 billion

"We see no letup in the mobile backhaul equipment market, as service providers around the world continue to upgrade their networks to handle the rapidly growing number of mobile broadband subscribers and their bandwidth-heavy habits. More than 100 operators are now deploying HSPA, with a coming wave of HSPA+ upgrades, WiMAX, and LTE, all to handle the skyrocketing mobile data traffic. And the most cost-effective way to do that is to transition from TDM to packet IP/Ethernet, which is driving the mobile backhaul equipment market," explains Michael Howard, principal analyst for carrier and data centre networks at Infonetics Research.

While Ericsson continues to lead the microwave mobile backhaul equipment market with about a quarter of worldwide revenue, there remains plenty of opportunity for smaller, more nimble players such as Harris-Stratex, Ceragon and DragonWave to drive innovation and eat into the market share of the larger players. Article

Mobile data growth is recession proof, claims Orange exec

Paul Rasmussen — Fri, 13 Nov 2009 12:46:54 -0500

The seemingly unstoppable demand for mobile internet access and data services appears to be recession proof, said the global head of France Telecom's Orange mobile business, Olaf Swantee.

He has stated that 24 per cent of its mobile customers were using 30Mb of data per month, compared with just 17 per cent of the customer base who were using 25Mb in February this year, and it includes customers who took pay-as-you-go and pay monthly contracts. It does not include mobile broadband customers.

While Swantee admitted that voice traffic in mature markets was reaching ‘stabilisation', "non-voice revenues seem to be quite recession proof, with music services very successful, and have exceeded expectations."

However, Swantee accepted that the growth of mobile data and the recent trialling of high definition voice services would put pressure on their network, but said they had invested in their 3G infrastructure accordingly.

Of note were comments made by the FT Orange exec concerning network sharing and mergers. Swantee claimed that FT would look for such deals where it made sense in other markets - hinting that the group was looking at potential in-country consolidation opportunities.

For more on this story:
Reuters

Mobile broadband will drive service revenues

Ian Channing — Fri, 11 Sep 2009 12:00:48 -0400

Mobile operator service revenues in 2008 were up 13 per cent on the previous year hitting US$624 billion. Infonetics Research forecasts that this number will reach US$877 billion in 2010, driven largely by mobile broadband service-derived revenues which are predicted to more than double in the period to 2013.

Voice will continue to be a major factor with voice service revenues expected to grow slowly through 2013, driven largely by continuing subscriber growth in developing markets and the shift from fixed to mobile voice in developed countries. The good news for mobile operators currently planning to expend considerable capital on upgrading to LTE is that service revenues from this source will grow rapidly reaching US$41.7 billion in 2013. In the same time frame W-CDMA/HSPA service revenues will be almost five times that of CDMA 1xEV-DO, as the majority of worldwide mobile subscribers are on GSM networks.

The number of mobile broadband subscribers is forecast by Infonetics to hit one billion by 2013.

For more on this story go to Cellular News

UK customers short changed on mobile download

Paul Rasmussen — Fri, 12 Jun 2009 12:30:24 -0400

Mobile broadband users in the UK are not getting anything like the download data speeds being promoted by ISPs.

A survey by broadband monitoring company Epitiro reports that mobile broadband customers received, on average, just 24 per cent of advertised download speeds, equal to just under 1Mbit/s, compared to the 3.6Mbit/s claimed by most UK ISPs. Mobile web browsing was 34 per cent slower than through equivalent ADSL fixed line connections. Part of the problem appears to be capacity limitation as the survey found that average download speeds almost doubled when tests were carried out in the early hours of the morning.

The Digital Britain report, due out shortly, will recommend that the whole of the UK be served with minimum broadband speeds of 2Mbit/s. The problems of delivering fixed line ADSL to remote areas will require the deployment of mobile broadband. The findings of the Epitiro survey would seem to suggest that mobile broadband will struggle to deliver the data download speeds recommended by Digital Britain.

For more on this story:
ITPro, Silicon.com and 3g.co.uk

Which service providers are best positioned to grow?

Paul Rasmussen — Fri, 08 May 2009 09:50:54 -0400

Despite a global recession and approaching saturation in some markets, new research from GlobalComms Insight predicts both wireless and broadband subscribers will grow at more than 10 per cent per year over the next five years. This results in no fewer than 2.5 billion net new subscribers by the end of 2013. However, growth in the value of the telecoms services market will not keep pace with subscriber growth. The bulk of subscriber growth will come from countries where GDP per capita is under US$3,000 per year. Despite the best efforts of service providers to maintain or increase ARPU, global telecoms service revenues will grow less than 5 per cent annually-less than half the rate experienced over the past five years. Article

Vodafone and O2 go head-to-head to acquire German broadband operator

Paul Rasmussen — Thu, 02 Apr 2009 09:42:00 -0400

In an effort to shift their reliance on mobile voice revenues, Vodafone and O2 are both actively considering making a bid for the German Internet provider HanseNet. The German ISP, which has more than 2.3 million customers, has been put up for sale by its owner, Telecom Italia, which is struggling to reduce its debt and wants to withdraw from international markets.

Market analysts believe the deal would make sense for either company, giving Vodafone the opportunity to compete more effectively against Deutsche Telekom and also reduce Opex cost, while for O2 the deal would transform its standing in the German broadband market and allow it to become a real contender.

However, the bids--which need to be submitted before the end of the month--might fall well short, given the current funding climate, of the €1 billion that some market watchers believe HanseNet is wanting as a minimum price. The head of Vodafone Germany recently commented that consolidation was overdue in the German broadband market, and would only look at acquisition opportunities if the pricing made sense.

Indications that building the necessary funding for such a purchase might be troublesome came from Turkcell which had been considering an offer for HanseNet. However, the company has now declined to bid.

For more on this story:
The Telegraph

Vodafone Germany hints at broadband plans, as sales forecast to dip

Paul Rasmussen — Wed, 04 Mar 2009 13:05:26 -0500

With a saturated mobile market, Vodafone Germany would appear to be repositioning itself as an integrated communication provider, and has suggested it wants to play a bigger role within the DSL and broadband cable market.

The company's German CEO, Friedrich Joussen, said that he saw growth potential in data revenue and DSL: "Outsourcing of telecoms services was also a growth story, and these services already contribute roughly 40 per cent of Vodafone Germany's annual sales."

Joussen also suggested the consolidation in the fixed broadband market would start within the next one to three quarters, but was unclear how this process would develop, although recent market rumours have mentioned Vodafone as a possible buyer of cable network providers. The Vodafone executive confirmed support for the idea of collaborating with competitors like Deutsche Telekom in building broadband networks in Germany. However, Joussen declined to elaborate on future partnership projects.

Looking at more immediate issues, Joussen said that his subsidiary might see a ‘slight dip' in sales for the coming year. "Nobody believes that the financial crisis won't affect telecoms. The economic crisis is already affecting parts of our sales, though that's not dramatic given total annual sales of almost €10 billion."

For more on this story:
EasyBourse

Consumer backlash prompts mobile broadband revamp

Paul Rasmussen — Wed, 05 Nov 2008 12:30:49 -0500

Negative feedback from subscribers who signed up for mobile broadband packages has stirred O2 into making pricing and service changes, together with the more unusual step of offering a 'Happiness' guarantee.

O2 became aware of subscriber dissatisfaction following a cross-network consultation that revealed the startling fact that 20 per cent of mobile broadband users were unable to access the service despite claims from the MNOs that they offered 90 per cent coverage in the UK. Ten per cent also complained they had been misled by their mobile operator on the available throughput, whilst around a third said the ongoing cost of mobile broadband had been higher than they expected.

In an attempt to redress these issues, O2 is now offering a network coverage checker to enable potential users to establish the likelihood of them connecting to the service from their desired location, and the company's standard 3GB download limit contract has been reduced to €20 per month.

In addition, the company has launched a 50-day Happiness guarantee that provides mobile broadband subscribers with an escape clause allowing them to terminate their contract at any time if they are unhappy with the service.

For more on this story go to:
The Telecom

Related articles:
T-Mobile forced to withdraw mobile broadband advert
Quarter of broadband homes to be mobile-only by 2013. Study

Uncompetitive--Virgin Media's new mobile broadband offering

Paul Rasmussen — Wed, 01 Oct 2008 11:57:26 -0400

Having just signed a six-year extension to its MVNO contract with T-Mobile, Virgin Media has taken the plunge into the burgeoning mobile broadband market with a deal that might appeal to its 4 million existing customers. However, its ambitions of recruiting new subscribers looks slim given how the deal is priced.

The company is offering an 18-month contract with a 3GB monthly bandwidth limit for only £15 per month, a price that also includes a free USB dongle. Virgin also talks of mobile broadband speeds of up to 3.6Mbps, considered by many to be an ambitious number.

By comparison, 3 UK is offering a 5GB monthly limit for £15--which can be obtained by existing subscribers for half price.

However, what might balance this out in the minds of consumers is the expectation that Virgin Media will shortly offer the first five-play package on the market combining TV, phone, fixed broadband, mobile broadband and handset.

For more on this story:
- go to IT ProPortal

Related articles:
Virgin signs six year extension with T-Mobile. Virgin story
Vodafone stymies Virgin Mobile's Indian venture. Virgin India story

3 reaches mobile broadband milestone

Paul Rasmussen — Fri, 25 Jul 2008 11:38:09 -0400

3G-only mobile operator 3 has signed up one million mobile broadband customers in its territories across Europe. The company says that since it launched its service in 2007 it has seen phenomenal growth from customers who are using the mobile service both to supplement and replace their fixed line broadband services. Despite the success of its mobile broadband service 3 expressed concern at the continuing high cost of data roaming in Europe. "Typical retail roaming prices are literally hundreds of times what customers expect to pay domestically. A European consumer might pay around one Euro cent per megabyte at home, yet pay a premium of 360-times that simply to cross a border," commented Christian Salbaing, Managing Director European Telecoms at Hutchison Whampoa. Salbaing urged the European Commission to take action to bring clarity and value to data roaming in the same way it had with voice roaming in 2007. 3 allows its customers to use their domestic price plans when roaming on to its sister networks in Europe, enabling them to access the Internet for a fraction of a Euro cent. As a result data roaming volumes on 3's European networks have increased by 2500 per cent over the last twelve months.

For more on this story:
- go to 3g.co.uk and Mobile Europe

Related story:
3UK aims to double its subscriber base by 2012. Article