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DAS the way to do it on the Underground

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Warning – typical London-centric media post coming up, although there may be some relevance to other cities with equally decrepit underground infrastructures. Like…er. Oh fair enough. One typical London-centric media post coming up.

The topic of London Underground equipping its underground stations and tunnels with mobile coverage raised its head this week, with news that the operators have been talking to Transport for London about looking again at how it could be done.

You may hate the thought of mobile coverage on the London Underground, but mobile coverage specialist ADC certainly does not. This is because covering the London Underground infrastructure with mobile coverage could be good business for ADC, which is proposing its DAS (Distributed Antenna Systems) products as a good solution for providing underground coverage.

John Spindler, VP of product management, said, “Using technology like DAS is ideal for providing coverage in hard to reach areas like underground tunnels, without adversely affecting services or infrastructure. A DAS main hub and expansion hubs are relatively easy to install while discreet remote antennas can be fitted into existing wall cavities and utility areas.  These systems are highly scalable meaning that cost and complexity of the project can be mitigated by effectively splitting it in two – the stations and the tunnels.  In addition, this scalability will allow DAS systems to run LTE once the UK begins to roll out 4G services.”  

It occurs to me that one thing people do when they’re sitting in a train carriage and have 10 minutes to kill is “do data” of some kind. They might watch a quick bit of video, catch up to email, or get online to Facebook and look at some photos of their younger selves. Some will inevitably also want to make a call to confirm their ensuing lateness at a coming meeting, or similar.

Although DAS is an excellent coverage solution, I asked it it could also provide the capacity required to provide a full service environment to moving trains of entertainment-hungry commuters?

Spindler said yes.

“DAS can meet any capacity requirement and does it more cost-effectively than small cells because all of the capacity can be placed in one central location (a basestation “hotel”) and backhauled from there, rather than having to place femtocells, picocells or microcells all over the space and having to backhaul each one,” he said. “In addition, because a DAS simulcasts all available radio channels (from the centralised basestation) to every antenna, DAS is actually more effective in delivering capacity when and where it is needed.  And when more capacity is required in the future, the operator can simply add additional radio resources at the central location and that capacity is automatically distributed over the DAS. In addition to these benefits, subway deployments also benefit specifically from a DAS because the system requires virtually no maintenance once installed, and all of the management can be done remotely, saving the time and hassle of going to individual radio units to maintain them.”

So, if the Underground does get the nod to go mobile – it could be that DAS is the way to do it.

7 layers first to validate Agilent Technologies equipment, LTE signaling conformance test cases

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7 layers, a global group of test and service centers for the wireless communications industry, is said to be the first accredited organization to validate LTE signaling conformance test cases (also known as protocol conformance test or PCT) for the Agilent N6070A series Signaling Conformance Test and E6621A PXT Wireless Communications Test Set.

The validation process focuses on the highest priority tests, necessary for reliable interoperability of LTE equipment. 7 layers validation of the Agilent test solution is invaluable for equipment developers, accredited test laboratories and network operators to verify that protocol implementations conform to core 3GPP LTE specifications.

“We have already had in-house experience with the LTE technology and the validation of test cases, and were pleased to use this knowledge for the validation of LTE protocol test cases with the Agilent portfolio”, explains Mohamed El-Fikri, validation specialist at 7 layers. “A straightforward process validated a total of 53 LTE protocol test cases for GCF (Global Certification Forum),establishing the Agilent solution in a commanding position for LTE conformance testing.”

“The speed and support provided by 7 layers has been indispensable in bringing our signaling conformance test solution to market,” said Guy Séné, vice president and general manager of Agilent’s Microwave and Communications Division. “Their understanding of the validation process combined with their knowledge of wireless technologies, especially LTE, has allowed us to bring validated Agilent equipment with LTE test cases to market quickly”.

Validation of the Agilent solution allows new and existing PXT users to extend the capability of the PXT to provide pre-conformance and conformance test capability in accordance with the 3GPP LTE standards. Engineers gain greater insight into the complex LTE protocol and conformance issues when using the N6070A series, which includes a Windows-based user interface allowing operators to run defined test campaigns and providing results in an intuitive graphical logging screen backed by detailed results data.

CSG makes bid for Intec: Update – Intec CEO explains bid

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Would create world’s second biggest BSS company – but could see counter offer

CSG Systems has made a splash in the BSS world by agreeing a deal to buy interconnect and billing specialist Intec Systems.

The deal would make the combined company the second largest BSS provider globally, a spokesperson told Mobile Europe. Intec had annual revenues of $169 million in 2009, and has 1,600 employees. CSG had 2009 revenues of $500 million.

However, the relatively low bid price compared to Intec’s 52 week high may tempt other industry players to make a counter-offer, analysts have said.

The deal values Intec at $372 million, at 72p a share. CSG’s bid document says this is a premium of 25.6% on the average Intec price in the three months leading up to the bid offer, and a 44% premium on the closing price on 22 July 2010. However, Intec’s shares have a 52 week high of 120p – recorded in January 2010.

Intec shareholder General Atlantic, which holds 11% of Intec’s share capital, is committed to accepting the deal, although that undertaking will lapse if a third party makes a better offer for the shares. Intec’s directors are recommending the deal.

Numis Securities analyst David Toms said in a research note that “the price feels very low to us.” The note added that Numis thinks there is a “reasonable chance of an industry counterbidder.” Investec said the bid was below its expected 80p-90p range. There was no indication which company would want to add Intec’s solutions to their current portfolio, however.

An Intec spokesperson said, “The Intec directors do think it’s a good deal and it works brilliantly from an operational point of view. There’s very little overlap from a product or customer point of view.”

Andrew Taylor, CEO of Intec, said in a statement that the company faces “increasingly difficult market conditions” and needed to achieve the scale and relevancy that its customers are demanding.

Expanding on that to Mobile Europe, Taylor said that the BSS world has been a tough environment for a couple of years now, as operators face a margin squeeze driven by mobile broadband network investments.

“Operators have been feeling those difficulties in their business models for 9-12 months and it’s something that we see continuing in the short to medium term,” Taylor said. This cost and margin squeeze, added to macro and local economic conditions, has contributed to the tough BSS environment.

“The board thinks this bid creates certainty for shareholders and creates a much more relevant and strong business,” Taylor said.

The acquisition would add Intec’s 400-strong customer list, which includes 60 of the top 100 operators, to CSG’s strengths in US cable and broadcast billing management.

CSG said that it will merge Intec’s solutions into CSG’s Advanced Convergent Platform, extending CSG’s outsourced business model. In CSG’s view, Intec gives it a sizeable international (non-US) platform, as well as enhancing its software and professional services business. As such, Intec will “form the base” for CSG’s international operators, CSG said.

Camille Mendler of Yankee Group said, “Intec has built a blue chip client base, but the challenge now is retention and upsell. The BOSS market is no longer a cottage industry of clever startups. It’s becoming a land of giants battling for wallet share among telcos with a horizontal suite play. Put Amdocs and Telcordia in this crowd with CSG-Intec, but also look at upstarts AsiaInfo and Huawei which can throw keen pricing into the fray.”

Peter Kalan, CEO of CSG said in a statement, “We believe that both Intec’s broad suite of solutions aimed at fixed mobile and next generation networks and CSG’s extensive customer interaction management suite will be attractive to one another’s customer base as well as service providers worldwide.”

CSG said it “intends to offer employment to all Intec employees “with limited exceptions related to executive management”. It also said it reserves the right to reorganise the enlarged group as strategy evolves.

 

Mobile broadband, content and data services are key to helping operators combat falling retail revenue, says report

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Retail telecoms revenue in Western Europe will continue to decrease – by 5% between 2010 and 2015, according to the latest report from global telecoms, media and IT adviser Analysys Mason. However, the report offers some optimism, stating that operators can strengthen their position by focusing on two main growth areas: mobile broadband, and mobile handset content and data services.

“The party is well and truly over; there is no overall growth left in Western European retail telecoms services,” explains Rupert Wood, Principal Analyst at Analysys Mason and co-author of The Western European telecoms market: trends and forecasts 2010–2015.

“Averaged out, end users show no willingness to pay operators more per month. Even if they are prepared to pay more for their total communications experience – and the jury is still out on whether they are – an increasing proportion of that total spend will go to other parties, primarily device vendors, but also ‘over-the-top’ players.”

According to the report, fundamental changes in the cost base of providing telecoms services have brought this about. The widespread adoption of flat-rate pricing models has led consumers to expect that their bills will not rise, and has created a climate in which it is increasingly difficult for operators to derive more value from new services than they lose from legacy ones.

According to report co-author Yanli Suo-Saunders, Senior Analyst and leader of Analysys Mason’s Mobile Broadband research programme, mobile operators should strengthen their position in the two main growth areas: mobile broadband, and mobile handset content and data services.

“Demand for these services will grow as a result of increased service adoption and usage, as content and handset functionality improve. Tiered-pricing structures will enable operators to monetise the higher-end smartphone users while also encouraging entry-level service adoption,” Suo-Sanders explains.

Co-author Wood adds, “The best way to defend fixed retail revenue in the long term is to position broadband at the centre of the consumer proposition. Keeping voice charges artificially high or separate from broadband charges has only a short-term revenue benefit, and encourages abandonment of fixed-line services in the long term.”

The report states that the overriding focus for this decade should be on efficiency: network sharing, risk sharing, consolidation, convergence and outsourcing will be the key principles for operators’ strategies.

Few important new revenue streams have appeared as yet, but customer loyalty and trust, and the use of vastly more customer data, will be at the centre of those that do emerge, says the report.

GSA confirms HSPA reaches over 70% global country penetration

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HSPA (High Speed Packet Access) mobile broadband systems are now commercially available in more than 70% of the world’s countries, according to the GSA.

Alan Hadden, President, GSA said: “HSPA is by far and away the most successful mobile broadband system. Its commercial availability in 150 countries and territories is a significant milestone and has been achieved less than 5 years since the first HSPA network was launched.”

The path to mobile broadband began with 3G/WCDMA. According to a new report released by the Global mobile Suppliers Association (GSA), over 99% of WCDMA operators have deployed and commercially launched HSPA.
 
HSPA is now commercially launched on 365 networks in 150 countries, it says. When this figure is added to the number of networks currently in deployment or being planned, it takes the number of operators committed to HSPA network investments to 407 in 156 countries.

60% of HSPA networks support a peak downlink data rate of 7.2 Mbps or higher.

HSPA Evolution (HSPA+) is the next step on the roadmap. Widespread market acceptance of dongles, PCs with embedded HSPA connectivity, and smartphones are pushing data consumption to unprecedented levels. A related report from GSA now released is said to show how HSPA+ systems are meeting these challenging requirements and enabling operators to deliver an improved user experience with higher data capacities and user throughput, and reduced latency at lower cost. 127 HSPA+ network commitments in 59 countries provide the evidence, according to the GSA report.

73 HSPA+ networks are now commercially launched, in other words, by 1 in 5 HSPA operators:

* 60 commercial HSPA+ networks support a peak downlink data speed of 21 Mbps
*  8 commercial HSPA+ networks support a peak downlink data speed of 28 Mbps
*  5 commercial HSPA+ networks support a peak downlink data speed of 42 Mbps

GSA anticipates that around 100 HSPA+ systems will be commercially launched by end 2010.

42 Mbps HSPA+ is commercially reality on 5 networks which have deployed two 5 MHz carriers (DC-HSPA+). At least another 25 operators have committed to deploy 42 Mbps. Some operators have already committed to deploy 84 Mbps as a further evolution step.

Uplink speeds are also increasing. More than one third of HSPA operators have commercially introduced HSUPA (High Speed Uplink Packet Access). A total of 124 operators have launched HSUPA in 63 countries, with a further 10 networks currently deploying the technology in an additional 4 markets. 51 HSUPA systems support a peak uplink data rate of 5.8 Mbps or higher.

The next evolutionary step in mobile broadband capacity will come with LTE, which has already been launched in Europe and the United States.

Consumers place trust in operators on mobile ads

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Operators second only to family in “most trusted” list; MMS preferred to SMS

Research has suggested that subscribers trust mobile operators almost as much as they do their own friends and family.

The IAB – the trade body for mobile and online advertising – and the DMA – the trade association for direct marketing – investigated attitudes towards messaging-based advertising. They found that operators are very well paced to provide a trusted place for advertisers to send their messages to new customers. Consumers’ trust of operators was second only to friends and family, according the survey response.

Another interesting point from the survey was that amongst those opted in to operator databases and exposed to messaging campaigns, it was the MMS ads that had the most impact. Clare Messenger, head of commercial development for mobile messaging for Orange said that this was because consumers prefer the richer, more creative experience that MMS can offer.

Whilst both the SMS and MMS to opted in operator databases drove an increased awareness and recall of the brand, MMS recall rate amongst the opted in operator databases was over 3 times that of the SMS.

Perhaps less surprising was the finding that consumers are far more likely to be more positive (246% more positive, to be precise) about mobile advertising when they are opted in to an operator database. Shaun Gregory, Managing Director of O2 Media, said that customer satisfaction with the opt-in method had been part of the reason for the operator driving over a million opt-ins and 1,000 campaigns in the year since it launched.

“In the year since we launched O2 More we have seen our base grow rapidly and this has very much been down to the relevancy of the messages customers receive. I believe it is all about gaining the trust of the customer. I am delighted this study has shown there is a desire for customers to opt-in to, alongside some well needed validation that messaging is the ‘premium style’ inventory of mobile marketing, and indeed should be commanding a well needed premium,” Gregory said.

The study found 5 main barriers to getting consumers to opt-in to mobile messages from brands, which form the basis for a series of guidelines from the IAB and DMA to help advertisers and agencies engage further with the mobile audience.

1. Awareness: 32% of consumers did not know about this type of service, or the benefits associated.  The IAB and DMA recommend promoting the offering using existing relationships and touchpoints, and welcoming consumers with an initial message once you have their details.
2. Perceived cost: This remains one of the most significant barriers to getting consumers to opt-in, with many believing that it will cost them money to receive messages from brands – 71% of respondents were wary of any costs that may be associated. It is essential that marketers are exceptionally clear in their communications with consumers of the costs associated with mobile messaging, which are often zero and should consider making responses also free.
3. Relevance: If consumers are to accept brand messages on their mobile devices, they remain adamant that these offers should be relevant and targeted – 71% saw unwanted messages from brands as a real barrier to opting-in. Brands have a real responsibility to let consumers know what kinds of messages they will be receiving, with a clear activation and retention programme.
4. Control: As always, consumers are keen to retain control over the mobile messages they receive from brands – 70% of respondents were concerned about having no control over what was sent to their phone, whilst 61% were worried about not be able to opt-out once having opted-in.  Whilst reassuring consumers about the frequency of mobile messages is important, brands are required to adhere to the ‘Universal Stop’ policy, which makes unsubscribing easy.
5. Privacy: In line with digital communications in general, consumers are very conscious of sharing personal information – 64% of those surveyed did not want to opt-in to SMS or MMS because they thought they may have to share personal details. From the outset, brands need a clear communication to give consumers confidence that their privacy will be protected, and ask permission before sharing details with any third parties.

You can see more information release from the IAB here.

Want an i-Pad roaming tariff?

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MACH tool promises more personalised roaming offers

Mobile operators that are losing out on roaming revenue, because users are too afraid to use data whilst roaming, could be helped by the release today of a Retail Roaming Solution from MACH.

The MACH software uses business intelligence data to improve the level of knowledge an operator gains about a specific use, potentially enabling operators to offer subscribers tailored roaming packages based on their usage patterns or even their mobile phone model.

MACH claims that operator statistics indicate that more than 40% of roamers actually switch off their mobile data connection when travelling abroad – a lost revenue opportunity for operators. The solution accesses subscriber level information to be able to analyse roaming patterns and provide subscribers with more tailored roaming packages.

Morten Brøgger, Chief Commercial Officer at MACH said, “With the granular business intelligence provided by our solution, MNOs will be able to offer a range of bespoke roaming tariffs. Corporate users fond of using their iPad on business trips could, for example, be offered an ‘iPad tariff’ with price reductions structured around their unique requirements.  In the mobile telecoms industry, knowledge of the subscriber is the key to opening innovative revenue streams. With our Retail Roaming Solution we have enabled MNOs to do just that for their roaming business”.

The solution’s re-pricing capability means that roaming tariff transparency and flexibility can be supported without the need for time-consuming changes to pricing in operators’ billing systems, allowing new roaming tariffs to be delivered rapidly. While policy controls allow MNOs to implement subscriber centric usage thresholds to encourage a greater take up of roaming services, in particular data usage.

Mark Newman, Chief Research Officer at Informa Telecoms and Media, commented, “With the non-SMS data roaming market projected to grow by a massive 246% by 2015 (Informa Telecoms and Media: Global mobile roaming forecasts 2010-2015) those mobile operators that can react quickly to enable and encourage greater uptake of data roaming stand to profit greatly.  MACH’s Retail Roaming Solution addresses this requirement well by giving MNOs the subscriber-level business intelligence they need to optimise their roaming business.”

 

 

Mobile operators to generate $67bn through roaming by 2015, says research

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The global roaming market is expected to grow by 86% between 2010 and 2015, delivering revenues of US$67bn, or 6.3% of total mobile service revenues by the end of this period, according to Informa Telecoms & Media’s latest research. Although revenues are expected to see a slowdown until at least 2012 as a result of the economic downturn and customer cost saving initiatives, a marked upturn is expected from this point onwards as markets recover and as mobile data roaming becomes increasingly prevalent, says Informa.

“Data roaming, new pricing models and technologies, as well as regulation are just some of the forces that will transform the roaming market over the next five years,” commented Paul Merry, Senior Analyst at Informa Telecoms & Media. “Bill shock remains a major issue for mobile roaming users in those markets where pricing regulation has not been implemented. Moreover, the legacy of bill shock is such that even in regulated markets there is a perception that mobile data roaming is expensive. Overcoming this sensitivity will take time but is critical.”

“EU regulations, which limits spend to €50 per trip, are a step in the right direction toward encouraging mobile data roaming use but €50 remains a very high amount for the majority of users, especially the main target market for roaming services in developed markets – the leisure users,” he added.

Mobile data roaming is expected to show substantial growth due to the popularity of App Stores and the ongoing success of smartphones, delivering a 28% CAGR or a 246% increase for the five-year period, it says.

Roaming is predominately used by enterprise segments that generate around 65% of total roaming revenue, and are highly price inelastic. In contrast consumers are an underpenetrated roaming segment and are highly price elastic. Therefore enterprise customers will be more resilient to the economic downturn seeing a CAGR of 17% compared with just 5% for leisure users over the forecast period, says Informa.

Western Europe will remain the largest roaming market, says the research, delivering approximately 41% of roaming revenues by 2015, followed by Asia Pacific developing with approximately 18% and North America with approximately 10%.

What does Austria tell us about 2.6GHz auctions?

After the completion of Austria’s auction of spectrum in the 2.6GHz band – spectrum that will be used for LTE – we were contacted by Graham Friend at Coleago Consulting, who wanted to share his thoughts on what the auction results might mean for other upcoming auctions.

Friend’s overall points are that the license conditions may have depressed bids, and that you cannot draw a direct line between demand and supply in terms of bid value. Although Friend finds that there is little this auction can tell us about other auctions, there is always the point that regulators might want to consider whether coverage conditions are necessary or desireable.

Here is Friend’s note in full. You can contact him at graham.friend@coleago.com.

Austrian 2.6GHz spectrum auction results show some consistency with previous auctions but the picture is still confusing

“The Austrian regulator RTR concluded the auction of 140MHz of paired spectrum and 50MHz of unpaired spectrum raising proceeds of €39.5 million from the four incumbent operators Telkom, Hutchison, T-Mobile and Orange. The benchmark for the paired spectrum of approximately €0.04 is at a similar level to the results from the German auction which also saw the 4 incumbents secure spectrum but 4 times lower than the Danish auction, another market with 4 existing operators. Whilst relative levels of spectrum supply relative to operator demand is often a significant determinant of spectrum prices achieved at auction it is clearly not the full story.

“Austria has one of the most competitive and developed mobile broadband markets in Europe and the need for capacity should have pushed prices higher. However, unusually the RTR attached roll-out requirements to the 2.6GHz band requiring 25% of the population to be provided with coverage with a downlink of 1 MBit/s and 256 KBit/s on the uplink by no later than December 2013. This represents an onerous requirement for operators as it will require them to deploy LTE sooner than perhaps they might have preferred. The coverage requirements will have depressed auction prices. Attaching coverage requirements to the 2.6GHz spectrum is unusual as coverage is usually addressed through lower frequency spectrum bands such as 900MHz and 800MHz as the propagation characteristics of the lower bands are more suited to providing coverage. The mix of strong demand and onerous roll-out conditions mean that the auction results provide little additional insight for regulators and operators who have yet to auction the spectrum.

“The relative prices for paired and unpaired spectrum also remains confusing as Hutchison paid less in total for its paired and unpaired spectrum (a total of 65MHz) compared to T-Mobile which only acquired 40MHz of paired spectrum. This outcome is however more likely to be due to the algorithm (effectively a second price rule) used by the regulator to determine the final prices.

“The use of second price rules, where the highest bidder wins but only has to pay the amount of the 2nd highest bidder, tends to result in more economically efficient allocations of spectrum but it can lead to interesting variations in price for similar lots. For example Telkom paid 20% more for the same amount of spectrum as Hutchison and T-Mobile paid 40% more on a €/MHz/Pop for its 40MHz of paired spectrum than Orange paid for its 20MHz and the difference is unlikely to be explained in full by differences in spectral efficiencies of LTE in wider bands
As countries such as Switzerland, Spain and the UK prepare to auction spectrum in the 2.6GHz band the Austrian auction provide some insight into the potential value of the spectrum but considerable uncertainty remains.”

Samsung Apps reaches 10 million downloads in Europe

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Samsung has announced that Samsung Apps, its mobile and TV application store, has passed the 10 million download mark in Europe.

Samsung Apps was launched in September 2009 in selected European and Asian countries – including the United Kingdom, France, Germany and Italy. Samsung Apps are available now in 109 markets worldwide, including 34 countries across Europe.

The Top 3 most popular Samsung Apps downloaded in Europe are: 1) Need for Speed Shift  2)  Magic Torch  3)  My Mirror

Need for Speed Shift is a car racing game, available in English, French, German, Italian and Spanish, that enables users to try and defeat the world’s top professional drivers, on circuits ranging from London to Chicago and Dubai, while Magic Torch transforms your phone into a flashlight. My Mirror is a utility that lets users study their reflections in a mirror.

The Samsung Apps Store offers an array of applications, including games, social networks, e-books and health-related services. Samsung plans to drive the creation of more locally-customized applications. It will also integrate relevant local information, designed to reflect cultural characteristics and provide a more enriching, tailored service to users globally.

Samsung says it will continue to drive Samsung Apps by introducing further bada-powered devices, following the success of the Samsung Wave, the first smartphone based on Samsung’s own bada platform. The Samsung Apps will expand to accommodate new smartphones and automatically display the relevant application catalog available for a user’s specific phone model.

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