Mci134 PDF

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ISSUE134//SEPTEMBER 2006
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Welcome!
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MCI TODAY!
TEL: +44 20 8606 7539
FAX: +44 20 8606 7301
WWW.MOBILECOMMS.COM
CONTENTS//
mobile communications international//sept 06
03 www.telecoms.com: the first choice for data-led analysis and independent comment//mobile communications international
06//ANALYSIS
1he US has seen a hosL ol MVNOs
launch, none ol which are doinq
anywhere near as well as Lhe simple
buL ellecLive Virin McbiIe. Meanwhile
in Lhe UK Lhe 3Conly operaLor 3UK
has Laken Lhe nexL sLep on Lhe CSM
evoluLion paLh. CSM may well be Lhe
world's mosL popular sLandard, buL noL
everyone is convinced iL has Lhe leqs lor
Lhe lonq qame. 1haL said, 0uaIccmm
has linally realised iLs vision ol deploy
inq iLs homeqrown Binary RunLime
LnvironmenL lor Wireless (Brew) conLenL
delivery sysLem over CSM.
16//NEWS
A roundup ol Lhe mosL imporLanL
sLories ol Lhe monLh lrom Lhe qlobal
mobile communicaLions markeLs, pro
duced in con|uncLion wiLh 1elecoms.com.
24//MOBILE MONEY
Millicom's bid lor Colombia's Ola was
a wise move lor boLh operaLors, which
makes iL even harder Lo explain why
Diqicel wiLhdrew lrom Lhe compeLiLive
biddinq process.
47//M-CONTENT
1he monLhly roundup ol news lrom
Lhe conLenL secLor.
Telecoms.com just
got smarter....
Opinion, breaking news,
debate, careers, events &
research.
Visit www.telecoms.com
REGULARS FEATURES
30//JAPAN AND KOREA
REGIONAL FOCUS
1he locus lor many operaLors
wanLinq Lo qain valuable insiqhL
inLo whaL miqhL be Lhe nexL 'oil
qusher' service is Japan and
KoreabuL culLural and business
condiLions mean LhaL simple imiLa
Lion is noL Lhe answer and qreaLer
percepLion is required.
36//QUADPLAY
M&A acLiviLy in Lhe markeL
shows LhaL providers ol pay
1V, broadband, mobile and
lixed Lelephony believe LhaL
Lhe luLure lies in beinq able
Lo oller all lour services on
one bill. ls Lhis anoLher ven
dorled hype cycle or are
Lhe days ol Lhe pure play
operaLor runninq down?
42//HANDSETS
Followinq Lhe CSMA's announcemenL ol iLs "3C lor
all" proqramme in June Lhis year, iL looks like Lhe
cosL ol mulLimedia handseLs miqhL linally drop inLo
Lhe realms ol Lhe reasonable.
04 mobile communications international//Search our archive at www.telecoms.com
EDITORIAL
Editorial Director
Mike Hibberd
Deputy Editor
Sean Jackson
5taII Writer
Alexander Harrowell
Newsdesk
Richard Barry
James MlddleLon
Associate Editor
Vauqhan O'Crady
Correspondents
1im Cocks
1ammy Parker
Paul Rasmussen
Editorial enquiries:
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Lmail: ben.sanosiinLeracLworld.com
West Coast U5A:
1im Banham
Lmail: Lim.banhaminlorma.com
Japan:
Media Communications Inc.
1okyo Real 1akaracho Bldq., ^2 HaLchobori,
Chuoku, 1okyo 0^ 0032, Japan
1el: +8 (0)3 3523 2600 Lmail: Limmismci|apan.com
All advertising enquiries to:
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PRODUCTION
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5enior Designer
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HEAD OF MARKETING
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LdiLorial and AdverLisinq copy daLe is Lhe lirsL Friday in Lhe monLh
precedinq issue.
2006 Mobile Communications International
Mobile CommunicaLions lnLernaLional is requesLed by ^,500 mobile comms
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Printed in the UK
EDITORIAL//
READ US WEEKLY//SUBSCRIBE@//www.mobilecomms.com/awiw
A WEEK IN WIPELE55, MCI'5 WEEKLY EMAIL NEW5 PEVIEW, DELIVEP5 AN
CFFBEAT PCUNDUP CF ALL THE WEEK'5 WIPELE55 NEW5 AND TAKE5
AN INCI5IVE LCCK INTC WHC PEALLY MATTEP5 AND WHAT'5 PEALLY
HAPPENINC IN THE INDU5TPY TCDAY
CNE WCPLD, CNE VI5ICN?
mobile communications international//sept 06
onvergence, it seems,
is the natural order
oI thingson both a
micro and macro level.
Networks, devices, services are all
merging, all oI the time. The carriers
are becoming media companies and the
broadcasters are becoming virtual net
work operators.
And that's |ust great. As a consumer,
I'd love a single device with a single
contact number or address, capable oI
communicating using voice or text with
my Iriends, Iamily, colleagues and con
tacts irrespective oI the type oI device
they carry around. I'd like to have a
camera, music player and gamesplay
ing TV all rolled into one. At the end oI
the month I'd like a single bill and, cru
cially, I'd like that bill to amount to less
than the sum oI its current parts.
And at last it looks as though my
dreams are becoming reality. Taking my
Iirst tentative steps into a converged
world, I signed up to a new contract
with my mobile operator recently, and
as part oI the package I also became a
broadband customer.
I also took trial ownership oI BT's lat
est wireless Bluetoothenabled phone,
the BT Clide. With a recommended
retail price approaching the 200 mark
the Clide's U5P over a normal portable
phone is that its address book can sync
with the owner's mobile phone using
Bluetooth.

Except that it didn't with my Ctec
handset, which came as something oI
a surprise to the BT engineer I phoned.
Mind you, at least the Clide has a 5IM
slot that enabled me to make a copy
oI my address book. Andsurprise,
surprisenow that all my contacts are
stored in the home phone, I've started
using it again.
Cn the down side, my home phone
now registers a line busy tone about S0
per cent oI the time, a problem which
BT, my mobile carrier and the carrier's
broadband call centre seemed sure was
nothing to do with them.
This is convergence at its absolute
bare minimum and it is less than sat
isIactory. And, iI, as we report in this
issue, FMC doesn't Ieature heavily
in the immediate Iuture oI the highly
advanced markets oI Japan and Korea,
then what are we to assume Ior its glo
bal prospects?
The sort oI technical and commer
cial obstacles standing in the way oI
multiplay are highlighted in this issue's
quadplay Ieature. And, even though my
own experiences hardly amount to a
scientiIically controlled customer sam
ple, I'd guess that there's still quite a
long way to go.
Mike Hibberd is away.
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CreaLive,
AnalyLical !
loresighLed,
1hese are jusL some of Lhe characLerisLics describing our consulLanLs, who work
Lowards one objecLive: achieving whaL's besL for our cusLomers. Ever-increasing
Lechnological complexiLy and Lhe growing dependence of business models on
informaLion and LelecommunicaLions Lechnologies will affecL your company even
more in Lhe fuLure Lhan Lhey do Loday. sing our unique combinaLion of manage-
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WWWDETECONCOM
INFODETECONCOM
iLh quesLions qrowinq
daily reqardinq Lhe markeL
posiLioninq and conLinued
exisLence ol Lhe laLesL
crop ol US MVNOs, many
pundiLs are reexamin
inq Lhe business premise on which Lhese
resellerbased companies have based
Lheir luLures. 1he biqqesL unknown is
wheLher Lhe likes ol daLacenLric, posLpaid
MVNOsincludinq Mobile LSPN, Amp'd
Mobile, Helio and Lo some exLenL Disney
Mobilecan pull a rabbiL ouL ol Lheir col
lecLive haL Lo ) sLay in business and 2)
make a proliL.
1he numbers look scary, aL leasL lrom
Lhe ouLside. Mobile LSPN, which launched
Lhis year wiLh an esLimaLed $30m ad and
promoLional campaiqn LhaL sLarLed wiLh
Lhe Superbowl, has so lar losL $25m.
Amp'd Mobile and Helio, Lhe laLLer a |oinL
venLure ol LarLhlink and SK 1elecom, are
rumoured Lo have cusLomer bases in Lhe
low Lhousands, raLher Lhan Lhe millions
served by neLwork operaLors and even
Lhe hiqhprolile kinq ol NorLh American
MVNOs, Virqin Mobile USA, which has
some lour million users.
BuL Virqin Look Lhe prepaid rouLe, a
LradiLional basLion ol resellers, ollerinq
simple services Lo youLhlul users and oLh
ers who do noL wanL Lo siqn a conLracL.
"SLill Lo Lhis day, we qeneraLe a very hiqh
percenLaqe ol our cusLomers who are
brand spankinq new Lo wireless," noLed
Howard Handler, Virqin Mobile USA chiel
markeLinq ollicer.
ln conLrasL, Lhis newer crop ol MVNOs
is on a posLpaid mission wiLh loLs ol lancy,
valueadded ollerinqs such as mobile 1V
and video and more cosLly service pack
aqes and devices, Lhe combinaLions ol
which don'L seem Lo be drawinq a huqe
audience.
"1he qrowLh LhaL Lhey assumed and
Lhe momenLum is noL Lhere. 1haL's noL
surprisinq Lo me. Any business model
where you're lookinq aL an ARPU above
$75 lor Lhe consumer markeL is a very
dilliculL business model Lo make," said
Phillip Redman, research vice presidenL aL
CarLner.
Amp'd and Helio are LarqeLinq Lhe youLh
and younq adulL niche, buL expecL Lo brinq
in an ARPU LhaL is almosL double whaL
Lheir LarqeL audiences currenLly pay lor
Lheir mobile voice and daLa services lrom
oLher carriers, Redman noLed. "1hose are
unrealisLic expecLaLions," he said.
Unlike newer MVNOs LhaL are pushinq
hiqhend mulLimedia ollerinqs, Virqin has
builL iLs success on ollerinq very basic
daLa services, wiLh a biq emphasis on com
paraLively simple producLs such as SMS
and MMS.
"1here aren'L a loL ol people ouL Lhere
who are makinq a primary decision abouL
wireless LhaL's relaLed Lo daLa. People
aren'L lookinq aL services LhaL way yeL,"
observed Handler.
Redman expecLs sLarLup brands such as
Amp'd and Helio will conLinue Lo sLruqqle
buL said biq brands such as Disney Mobile
and Mobile LSPN are Lhe mosL likely Lo
succeed, provided Lhey learn lrom Lheir
early experiences.
DfY`c\LSPN is clearly ad|usLinq iLs
approach. A lew monLhs alLer launch,
Lhe MVNO dropped handseL prices lrom
$99 Lo $99 in order Lo sLimulaLe demand.
Over Lhe summer, Mobile LSPN added
Samsunq's Ace llipphone Lo iLs porLlolio,
ollerinq iL lor only $50 Lo new subscribers
and $50 Lo exisLinq cusLomers who siqn
up lor a new Lwoyear conLracL. And Lhe
MVNO is now ollerinq Sanyo's MVP model
lor whaL amounLs Lo lree alLer a consum
er qualilies lor a $30 mailin rebaLe.
Redman suqqesLed lowerinq prices helps,
buL posLpaid MVNOs need Lo reassess Lheir
enLire qame plan. "1here's always some
elasLiciLy. 1hey'll qain some more subscrib
ers by lowerinq Lheir prices, buL LhaL's noL
qoinq Lo be enouqh," he added.
AnoLher area where Lhe newer MVNOs
are sLruqqlinq is producL disLribuLion,
someLhinq in which Virqin has excelled.
"We've builL a biq disLribuLion looLprinL
LhaL is really beyond any ol Lhe Johnny
Come LaLely's. We're in 25,000 reLail loca
Lions wiLh our producLs and services and
have Lopups available aL over 00,000
locaLions as well as online," said Handler.
BuL iL's noL all doom and qloom lor
posLpaid MVNOs. ln lacL, Yankee Croup
is quiLe bullish abouL Lhe luLure lor LhaL
business model, lorecasLinq LhaL by
200 some 35 per cenL ol all US MVNO
subscribers will be posLpaid cusLomers.
Accordinq Lo Lhe lirm, posLpaid plans, "are
a naLural choice because mosL consumers
are already lamiliar wiLh posLpaid (88 per
cenL ol wireless cusLomers are posLpaid)
and accepL iL as Lhe inherenL sLrucLure ol
a wireless service ollerinq."
Yankee Croup's messaqe is one ol
paLience. "1he prominenL posLpaid MVNOs
Lodayespecially Mobile LSPN, Amp'd and
Helioare LarqeLinq people who already
have wireless service. 1hese churners
won'L be able Lo drop Lheir exisLinq car
rier overniqhL because on averaqe 75 per
cenL ol wireless subscribers are under
an acLive conLracL obliqaLion aL any one
Lime," said Lhe consulLancy. Yankee Croup
added LhaL such MVNOs, "musL under
sLand LhaL Lhe subscriber upLake will noL
be immediaLe upon launch."
BuL Lhe loominq quesLion remains, WhaL
will iL Lake lor posLpaidorienLed MVNOs Lo
successlully lure subscribers lrom oLher
service providers?
Observed Handler, Lhe US posLpaid
markeL is, "larqely locked up and you're
noL seeinq Loo much qrowLh qoinq on
Lhere.so Lo base an enLire business
around a hypoLhesis abouL swiLchinq and
so on is Lricky."
ANALYSIS
Simplicity reigns in MVNO kingdom
Perhaps the new crop of US MVNOs, which are offering postpaid plans built upon innovative
data offerings, would be better off keeping it simple.
tammy.parker@informa.com
W
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Service Delivery Content Management Location and Presence Messaging Value Added Services
uLchison division 3UK Lhis
monLh announced Lhe
launch ol HSDPA daLa
service in ma|or meLro
poliLan cenLres. London,
ManchesLer and Dublin are
expecLed Lo swiLch on Lhe upqraded base
sLaLions in Lhe lourLh quarLer ol 2006, or
in oLher words, in Lime lor Lhe ChrisLmas
sales charqe. WiLh Lhe announcemenL
came a wave ol new handseLs, includ
inq devices lrom LC, H1C and MoLorola's
HSDPA RAZR.
Accordinq Lo 3UK's direcLor ol Lechnical
soluLions, Craeme BaxLer, Lhe carrier aims
Lo insLall Lhe HSDPA upqrade LhrouqhouL
iLs neLwork in Lhe cominq monLhs, and
considers LhaL Lhe speed boosL is crucial
Lo iLs sLraLeqy. 3 considers iLs service
Lo be a premium producL, and Lherelore
wanLs Lo beaL Lhe compeLiLion lor speed.
AL a demonsLraLion in one ol 3's hiqh
sLreeL ouLleLs, surprisinqly enouqh one liL
Led wiLh iLs own base sLaLion, MCl saw Lhe
service in acLion. 1he lirsL wave ol HSDPA
upqrades is aiminq lor a downlink daLa
raLe ol .8MbiLs/s. O2's Manx 1elecom
division launched Lheir HSDPA service in
November, 2005, and speeds ol around
.^MbiLs/s were achieved reliably by Lhis
lirsL live neLwork in Lurope. 3UK's insLal
laLion was producinq someLhinq similar,
in a varieLy ol operaLinq modes includinq
lile downloads, web browsinq and video
sLreaminq. LaLency seemed Lo be marqin
ally less.
3 has hisLorically been heavily commiL
Led Lo a Lelcoasmedia sLraLeqy, ollerinq a
wide ranqe ol proprieLary conLenL Lhrouqh
iLs porLal and beinq slow Lo oller unre
sLricLed inLerneL access. Web access, in
lacL, remains a premium service lor 3 sub
scribers in Lhe UK despiLe Lhe company's
decision Lo bundle Skype wiLh iLs Lopline
Windows Mobile 5.0 devices.
So Lhe main use lor HSDPA on 3's neL
work is likely Lo be |usL a lasLer way ol
qeLLinq video clips and music lrom server
larms Lo subscribers. On Lhe MoLorola
RAZR handseL, decenL qualiLy music video
and quasi1V sLreamed and downloaded
aL impressive speed wiLhouL inLerrupLion,
alLhouqh one musL wonder how well iL will
work in qenuine mobile condiLions. 1he
business case lor mobile 1V/quasi1V Lypi
cally assumes LhaL subscribers will pay Lo
waLch iL whilsL commuLinq, lor example
precisely when Lhey are likely Lo be mov
inq rapidly Lhrouqh dense urban Lerrain.
3's commiLmenL Lo HSDPA and Lhe
luLure HSUPA upqrade is lounded on Lhe
specLrum issue. Accordinq Lo BaxLer, Lhe
main disLincLion beLween UM1S HSPA and
oLher wireless broadband Lechnoloqies
like WiMAX is LhaL Lhe lirsL operaLes in Lhe
lM12000 allocaLed specLrum Lhe carriers
paid so much lor in Lhe lirsL place. OLher
Lechnoloqies are havinq Lo waiL Lheir Lurn,
so lonq as Lhe LU's inLeresL in openinq
Lhe UM1S exLension band Lo oLher users
doesn'L become a pracLical policy.
K_\only excepLion may Lurn ouL Lo
be UM1S1DD, despiLe Lhe 1DD com
muniLy's recenL seLback aL Lhe hands
ol SprinLNexLel. Like all UK operaLors
excepL Vodalone, 3's specLrum alloca
Lion includes a 5MHz sluq ol band
widLh aL Lhe Lop ol Lhe 200MHz ranqe
assiqned lor possible 1DD operaLions. So
lar, Lhis specLrum remains unLouched,
buL BaxLer says 3 is considerinq Lhe pos
sibiliLies.
1hree Lechnical opLions are leasible.
One is whaL 1DD was oriqinally inLended
lorhiqh capaciLy, shorL ranqe "lemLo
cells" in locaLions like railway sLaLions,
sporLs sLadiums and airporLs. AnoLher
would be pure wireless broadband, as
Japanese operaLor lPMobile and 1Mobile
in Lhe Czech Republic amonq a lew oLhers
are doinq. A Lhird is Lhe 1D1V broadcasL
sysLem developed by lPWireless, which
is essenLially a 1DD sysLem seL Lo use all
iLs LimesloLs lor Lhe downlink in order Lo
broadcasL 1V looLaqe.
Speakinq Lo MCl, BaxLer suqqesLed LhaL
boLh Lhe use ol 1DD Lo boosL broadcasL
1V capaciLy and also iLs use Lo provide
hiqhspeed buL lowvalue lP service were
beinq considered. For an operaLor heavily
commiLLed Lo sellinq proprieLary conLenL,
like 3, iL would make sense Lo keep unme
Lered email, VolP and web browsinq Lrallic
oll Lhe neLwork used lor Lhe delivery ol
hiqhvalue video and music, especially
when laLency is a problem.
AlLernaLively, bandwidLhheavy lull
moLion video or lormal mobile 1V could
be shilLed onLo a 1D1V plaLlorm Lo keep
Lhe HSDPA neLwork reasonably clear.
lPWireless claims LhaL, all oLher Lhinqs
beinq equal, 1DD could serve several
Limes more 1V viewers Lhan HSDPA.
Accordinq Lo BaxLer, 3UK is hopinq Lo
beqin Lhe rollouL ol HSUPA in 2007
and Lhen Lhe 3CPP MBMS (MulLimedia
BroadcasLMulLicasL SubsysLem) in 2008.
MBMS is an exLension Lo Lhe lMS which
provides lor Lhe conLrol ol mulLicasL and
broadcasL radio neLworks inLeqraLed in a
UM1S sysLem, incorporaLinq Lhe servers
lrom which Lhe conLenL is sLreamed and
various conLrol inLerlaces wiLh Lhe oLher
lMS elemenLs.
1haL would suqqesL a naLural momenL
lor Lhe inLroducLion ol a parallel mobile
1V sysLem would be some Lime in 2008,
when Lhe supporLinq inlrasLrucLure is due
lor rollouL and Lhe cellular reLurnpaLh
reaches meqabiL speeds wiLh Lhe inLroduc
Lion ol HSUPA. MBMS, ol course, implies
LhaL whaLever Lhe radio layer used Lo
deliver Lhe 1V is, Lhe cellular neLwork can
handle siqnals back Lo iL, wheLher Lhese
are inLeracLions or even userqeneraLed
conLenL. lL miqhL be worLh noLinq here
LhaL 3 already ollers a hosLinq service lor
userqeneraLed video.
ANALYSIS
3UK prepares to launch HSDPA network-wide
3G-only operator takes the next step. Is it marching in the direction of mobile TV?
alexander.harrowell@informa.com
H
3 HAS HISTORICALLY
BEEN HEAVILY
COMMITTED TO A
TELCO-AS-MEDIA
STRATEGY
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oqqed by whaL iL charac
Lerises as an unlounded
beliel LhaL CSM and
WCDMA are sLeamrollinq
CDMA in Lerms ol adop
Lion and enduser device
cosLs, Lhe CDMA DevelopmenL Croup has
sLrapped on iLs boxinq qloves and come
ouL liqhLinq.
1he CDMA camp has clearly been
sLunq by hiqhprolile delecLions lrom
operaLors who are opLinq lor CSM as a
replacemenL or parallel Lechnoloqy lor
Lheir exisLinq CDMA neLworks. 1he Clobal
Mobile Suppliers AssociaLion, a CSM
advocacy qroup, recenLly issued a reporL
sLaLinq LhaL, "a number ol CDMA opera
Lors are lacinq lallinq markeL share and
respondinq by swiLchinq Lo Lhe CSM lamily
(CSM/LDCL, WCDMAHSPA) lor business
qrowLh." 1he CSA idenLilied 28 operaLors
usinq CSM eiLher as an overlay Lo a CDMA
neLwork, or as iLs replacemenL.
lL's LiLlorLaL, however, as Lhe CDC says
iL has also idenLilied 28 CSM operaLors
LhaL are deployinq CDMA as a parallel
neLwork or replacemenL lor Lheir exisL
inq CSM neLworks. FurLher, Lhe CDC ciLes
research lrom SLraLeqy AnalyLics showinq
LhaL CDMA2000 and WCDMA will accounL
lor ^ per cenL ol Lhe qlobal mobile markeL
worldwide in 200 and LhaL Lhe worldwide
CSM subscriber base will reach iLs peak
in 2008. "CSM is by all accounLs qoinq
Lo sLarL declininq in markeL share beqin
ninq nexL year," said Perry LaForqe, CDC
execuLive direcLor.
As lor Lhe CDMA operaLors LhaL are
Lakinq Lhe CSM rouLe, LaForqe aLLribuLed
some ol Lhose Lo unique siLuaLions where
ownership is predisposed Loward CSM or
Lhe operaLors have CDMA specLrum con
sLrainLs.
He said specLrum is aL Lhe rooL ol
decisions by Brazil's Vivo and Reliance
1elecom ol lndia Lo pursue CSM oppor
LuniLies. ln Lhe case ol Vivo, Lhe opera
Lor has issues wiLh dis|oinLed specLrum
holdinqs across Brazil LhaL have caused
operaLional headaches. FurLher, iLs par
enL companies, PorLuqal 1elecom and
1elelonica Moviles ol Spain, are lonqLime
CSM operaLors who wanLed Lo qeL Lheir
Brazilian operaLion onLo Lhe CSM Lrack.
Vivo inLends Lo mainLain and upqrade iLs
CDMA neLwork, which already includes
xLVDO Lechnoloqy, while runninq a par
allel CSM neLwork.
Reliance, on Lhe oLher hand, has sLruq
qled because Lhe lndian qovernmenL, in
Lhe beliel LhaL CDMA is more specLrally
ellicienL Lhan CSM, qave Reliance hall as
much specLrum lor iLs CDMA neLworks
as was qiven Lo oLher operaLors lor Lheir
CSM neLworks, says LaForqe. Like Vivo,
Reliance has applied lor CSM licences, iL
does, however, inLend Lo conLinue invesL
inq in iLs CDMA neLwork.
ln addiLion, LaForqe alleqes some
operaLors, parLicularly in developinq
economies, are beinq swayed by "producL
lilecycle pricinq," in which vendors who
have lonq paid oll Lheir CSM invesLmenLs
are supplyinq CSM inlrasLrucLure almosL
lor lree in order Lo seL Lhemselves up Lo
receive lollowon lonqLerm WCDMA inlra
sLrucLure conLracLs. "1hey're Lryinq Lo qeL
CSM in aL any cosL and lock iL in aL any
cosL," he sLaLed.
lndeed, in Lricsson's AuqusL 28Lh press
release announcinq LhaL iL would be Lhe
sole supplier Lo Vivo ol a CSM core neL
work lor voice and daLa and would also be
Vivo's main supplier lor Lhe radio neLwork,
Lhe vendor sLaLed, "By usinq Lricsson's
laLesL CSM Lechnoloqies, Vivo is well pre
pared lor luLure evoluLion Lo 3C/WCDMA."
CDMA criLics could cheer a reporL lrom
Lhe Dell'Oro Croup, which ciLed weak
CDMA inlrasLrucLure sales LhaL declined
26 per cenL versus sales in Lhe second
quarLer ol 2006. 1he lirm said Lhe CSM
markeL was buoyed by sLronqer sales in
China, where operaLors keep invesLinq
in Lhe 2C Lechnoloqy while Lhey awaiL
direcLion on 3C licencinq lrom requlaLors.
However, Dell'Oro predicLed qlobal CDMA
inlrasLrucLure sales will rebound in Lhe
Lhird quarLer ol 2006, "as vendors beqin
Lo see Lhe beneliL ol seasonal spendinq
paLLerns and revenues lrom CDMA xLV
DO Revision A upqrades."
1he CDC noLed LhaL 82 operaLors in 53
counLries have deployed or are deployinq
xLVDO, which is qaininq seven million
new subscribers each quarLer.
One Lopic LhaL has earned Lhe CDMA
camp's umbraqe concerns handseL cosLs.
1he CSM communiLy's conLenLion LhaL
CSM handseLs are considerably cheaper
Lhan CDMA handseLs "is paLenLly wronq,"
said KaLhleen O'Connell, manaqer ol over
seas mobiliLy lor LucenL 1echnoloqies'
CDMA producL markeLinq uniL.
YeL lndian CDMA2000 operaLors
Reliance and 1aLa 1eleservices are boLh
on record as sLaLinq LhaL Oualcomm's roy
alLy raLes have kepL CDMA phones lrom
compeLinq pricewise wiLh ulLralowcosL
CSM phones. Vivo, Loo, has ciLed hiqh
CDMA handseL cosLs as a reason lor iL Lo
build a parallel CSM neLwork.
1he CDC counLers LhaL prices lor CDMA
handseLs are compeLiLive. CiLinq Yankee
Croup research, Lhe CDC says CDMA
devices accounLed lor 56 per cenL ol low
end, sub$50 handseL shipmenLs inLo lndia
durinq Lhe lirsL quarLer ol 2006. FurLher
Lhe qroup conLends LhaL considerinq Lhe
enLire mobile device porLlolio ollered in
lndia, Lhe averaqe wholesale price lor
CDMA2000 handseLs was $38 less Lhan
lor CSM handseLs.
1he CDC also ciLed analysis lrom
Siqnals Research Croup LhaL shows Lhe
averaqe price ol enLrylevel CDMA2000
X/LVDO phones will approach $33 by
2009, makinq Lhem a more allordable
alLernaLive Lo enLrylevel WCDMA hand
seLs, which are expecLed Lo be priced
around $88 in 2009.
D
CDG takes on CDMA naysayers
The GSM family of standards dominates the cellular world at the moment. The fight is anything but
over, though, according to the CDMA Development Group.
ANALYSIS
THE CDMA CAMP
HAS CLEARLY
BEEN STUNG BY
HIGH-PROFILE
DEFECTIONS
The more you mix
the more exciting it gets.
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elelonica's UK mobile
operaLion, O2, inLro
duced iLs ownbranded
lce 3C handseL in early
SepLember, markinq
Lurope's lirsL device Lo
use Oualcomm's Brewbased uiOne
inLerlace.
uiOne is an operaLor cusLomisable
user inLerlace, which allows service
providers Lo creaLe dillerenL proliles or
home screens lor Lhe dillerenL services
on Lhe device, such as 1V, qaminq and
music.
Combined wiLh Lhe backend Brew
conLenL delivery plaLlorm, Lhe sysLem
is desiqned Lo laciliLaLe Lhe discovery ol
wireless daLa services. HerberL Vanhove,
vice presidenL ol Oualcomm lnLerneL
Services, Lurope, said, "enrichinq Lhe
cusLomer experience is key Lo encour
aqinq Lhe use ol daLa services and aL
presenL, iL is Lhe ease ol discovery ol
services and conLenL LhaL is Lhe issue."
O2 is planninq Lo roll ouL Lhe uiOne
inLerlace across a number ol iLs O2
branded devices, wiLh Lhe second model
due wiLhin Lhe nexL 2 monLhs. 1he oper
aLor said iL is evenLually aiminq Lo have
2030 per cenL ol iLs cusLomer base on a
Brewenabled device.
Speakinq aL Lhe launch ol Lhe lce
handseL, Phil 1aylor, direcLor ol wireless
inLerneL applicaLions and qlobal wireless
pracLice aL SLraLeqy AnalyLics, said Lhe
mobile markeL has reached a Lippinq
poinL where cusLomers are beqinninq Lo
consume conLenL, buL availabiliLy and
discovery are sLill Lhe key lacLors.
"DaLa services sLill leaLures low on Lhe
usaqe scale," he said, "and only around
Len per cenL ol UK mobile subscribers
are on 3C."
"However, 1elelonica and O2 are
drivinq daLa qrowLh in Lurope, wiLh O2
reporLinq around 30 per cenL ol rev
enues lrom daLa services and 1elelonica
Moviles recordinq around ^2 per cenL ol
revenues lrom daLa. 1his compares Lo
Vodalone's 5 per cenL revenue conLri
buLion lrom daLa services."
SLraLeqy AnalyLics believes LhaL
mobile daLa revenues in WesLern Lurope
are seL Lo Lop $52bn (E27.^bn) by 200.
AlLer considerable success wiLh Lhe
Brew plaLlorm in Lhe CDMA arena
almosL 70 operaLors have so lar siqned
up Lo deploy Brewbased services
Oualcomm has spenL Lhe pasL 8 monLhs
sLeppinq up plans Lo push Brew in Lhe
CSM space, wiLh Lhe inLroducLion ol
deliveryOnea conLenL delivery plaLlorm
desiqned Lo inLroduce Brew, sLreaminq
video, 3D qaminq and Lhe uiOne user
inLerlace.
K_\iniLiaLive was carried ouL Lhrouqh a
cooperaLive markeLinq aqreemenL wiLh
UK mobile conLenL delivery lirm LlaLa Lo
acceleraLe Lhe conLenL delivery sysLem
and provide supporL lor Brew, Java,
OMA, sLreaminq conLenL, rinqLones and
imaqes.
1hen Oualcomm acquired LlaLa lor
$57m in Lhe summer ol 2005, combininq
Brew wiLh LlaLa's own plaLlorm aqnosLic
ollerinq Lo consolidaLe boLh conLenL
services lor all device plaLlorms under
a sinqle service delivery sysLem. 1his
would enable operaLors Lo remain com
miLLed Lo Lheir exisLinq device porLlolio
while evolvinq Lheir line up Lo include
handseLs wiLh new capabiliLies.
ln June ol 2005, when O2 lirsL
announced iLs commiLmenL Lo Brew, Lhe
plaLlorm and inlrasLrucLure aqnosLic
sLrucLure ol Lhe Lechnoloqy allowed
iL Lo doveLail neaLly wiLh O2's plans ol
enhancinq iLs exisLinq conLenL ollerinq
known as O2 AcLive wiLh Japanese oper
aLor N11 DoCoMo's imode Lechnoloqy.
lan Clarke, head ol devices aL O2, said
Lhe decision Lo deploy Brew is based
around brand and individualisaLion, and
beinq able Lo keep LhaL brand and indi
vidualisaLion across Lhe devices sold by
Lhe operaLor. "From a consumer poinL ol
view iL is abouL LhaL consisLency ol expe
rience and LhaL's where we see Brew
uiOne cominq inLo play lor us wiLhin our
own branded device porLlolio."
DespiLe Lhe lacL LhaL iL has been Lech
nically possible Lo run Brew over CSM
lor some Lime now, Lhe CDMA pioneer
has sLruqqled Lo qain accepLance lor iLs
ollerinq in Lurope. Oualcomm iniLiaLed
iLs Brew lor CSM sLraLeqy in laLe 200^
wiLh Lhe $36m acquisiLion ol UK devel
oper 1riqenix, which developed Lhe CSM
user inLerlace lor Brew and had an exisL
inq relaLionship wiLh LlaLa.
AL Oualcomm's Brew Conlerence in
2005, MaLL Hooper, Lhen vice presi
denL ol sLraLeqic alliances aL LlaLa and
now direcLor ol producL manaqemenL
lor Oualcomm lnLerneL Services, said
Lhe deliveryOne plaLlorm would qive
operaLors Lhe abiliLy Lo conLrol exisLinq
daLa services and any new valueadded
services, wiLhouL inLerrupLinq or addinq
inlrasLrucLure Lo Lheir exisLinq sysLem.
"We see operaLors deployinq Brew
alonqside oLher plaLlorms such as Java
lor more llexibiliLy," he said.
BuL one ol Lhe biqqesL obsLacles lor
operaLors deployinq Brew as a plaLlorm
is LhaL Lhey are sLill required Lo deploy
Oualcomm chipseLs Lo use Lhe ollerinq
aL presenL. However, Lhe US vendor has
previously revealed LhaL iL is workinq on
a proqramme Lo licence Brew Lo run on
devices which do noL use Lhe Oualcomm
chipseL.
ANALYSIS
O2 Brew up cool content initiative
Qualcomm has finally realised its vision of deploying its homegrown Binary Runtime Environment for
Wireless (Brew) content delivery system over GSM.
james.middleton@informa.com
T
DESPITE THE FACT
THAT IT HAS BEEN
TECHNICALLY
POSSIBLE TO RUN
BREW OVER GSM
FOR SOME TIME
NOW, THE CDMA
PIONEER HAS
STRUGGLED TO GAIN
ACCEPTANCE FOR
ITS OFFERING IN
EUROPE
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SEE US ON STAND C16
SPRINT
SHOWS
REV. A
CARDS
US operaLor SprinL NexLel
has announced commercial
availabiliLy ol iLs hiqhspeed
cdma2000 x LVDO Revision
A daLa cards.
CompaLible wiLh lapLops
as well as Lhe soonLobe
available Linksys Wireless
CRouLer, Lhe Merlin S720
card manulacLured by
NovaLel Wireless allows
wireless broadband connec
LiviLy aL averaqe download
and upload speeds ol ^50
850kbps and 300^00kbps
respecLively.
SprinL plans Lo beqin iLs
roll ouL ol LVDO Rev. A dur
inq Lhe lourLh quarLer ol
2006 wiLh coveraqe expecLed
Lo reach more Lhan ^0 mil
lion people by yearend.
1he Merlin S720 will ini
Lially be sold Lhrouqh SprinL
indirecL and business sales
channels and online aL a suq
qesLed reLail price ol $2^9.99
or $99.99 wiLh a Lwoyear
subscriber aqreemenL.
Service plans lor Lhe card
currenLly ranqe lrom $39.99
per monLh lor ^0MB Lo
$79.99 per monLh lor unlim
iLed daLa usaqe.
YAHOO
LAUNCHES
GO FOR
WINDOWS
MOBILE
5earch giant Yahoo has
made its Yahoo Co Ior
Mobile service available
Ior consumers to down
load onto Windows Mobile
phones.
The service is an inte
grated suite oI Yahoo's
leading services including
mail, search and Yahoo
Photos, which allows auto
matic upload oI camera
phone pictures to a Yahoo
Photos account. Yahoo
Address Book and Calendar
is also included.
Marco Boerries, senior
vice president, connected
liIe at Yahoo said: "We are
making it even easier Ior
more consumers to take the
Yahoo experience with them
on their mobile phone."
5cott Horn, general man
ager at MicrosoIt said: "The
availability oI Yahoo Co Ior
Mobile on Windows Mobile
powered phones will allow
our customers to bring their
Iavourite Yahoo services
to the devices they already
rely on."
NEWS
EXPERTS WARN OF CROSS
PLATFORM WORM
Experts at Finnish
antivirus cutfit F-Secure
have enccuntered a
crcss pIatfcrm wcrm
that is capabIe~at Ieast
thecreticaIIy~cf spreadin
frcm a PC tc a mcbiIe
device and back.
The antivirus firm said
that the McbIer wcrm,
aIsc kncwn as Cardtrap, is
capabIe cf mcvin between
Symbian and Windcws
pIatfcrms.
"AIthcuh it's quite
nasty cn the Windcws side,
it dcesn't cause much
harm cn the Symbian
device. !t just ccpies itseIf
tc the memcry card and
tries tc trick the user
intc infectin his PC," the
ccmpany said.
0n the Symbian side
the damae is Iimited
because technicaIIy there
is nc autcmatic spreadin
mechanism aIIcwin McbIer
tc ccpy itseIf frcm cne
pIatfcrm tc ancther. The
maIware simpIy creates
a Symbian instaIIaticn
packae that inserts a
Windcws executabIe cn the
mcbiIe device's memcry
card.
Hcwever, this executabIe
is visibIe as a system
fcIder in Windcws ExpIcrer,
sc it is pcssibIe fcr the
user tc accidentaIIy cpen
the executabIe and infect
their PC whiIe brcwsin
fiIes cn the memcry card.
F-Secure beIieves that
virus writers ccuId use
McbIer as a bIueprint fcr
mcre maIicicus maIware
that is capabIe cf jumpin
between pIatfcrms. But
then aain, previcus crcss
pIatfcrm viruses have thus
far faiIed tc cause any
sinificant damae.
NTL MAY BE TARGET OF 10BN BID
N1L, Lhe cable qianL which
recenLly underwenL a meqa
merqer wiLh 1elewesL and
Virqin Mobile, could now be a
LarqeL iLsell. lL is undersLood
an invesLmenL consorLium
comprisinq Providence LquiLy
ParLners, BlacksLone, Kohlberq
Kravis RoberLs and Cinven has
Labled an oller ol E0bn lor
Lhe lirm.
1he equiLy parLners are
believed Lo have made an
approach Lo N1L lollowinq
Lhe company's disclosure ol
iLs second quarLer resulLs.
AlLhouqh inLeqraLion cosLs
Look Lheir Loll, lorcinq Lhe
company inLo a loss, revenues
lor Lhe quarLer almosL doubled
lrom E^82m a year aqo Lo
E88^m. However, cusLomer
churn liqures
showed LhaL inLen
silyinq compeLi
Lion meanL more
subscribers were
qoinq elsewhere.
1he board ol N1L is
rumoured Lo be relucLanL Lo
sell Lhe company, aL leasL aL
Lhe price ollered and Richard
Branson, Lhe previous owner
ol Virqin Mobile, is
also LhouqhL Lo be
opposed Lo Lhe deal.
Branson acquired
a 0.5 per cenL sLake
in N1L when he sold
Virqin Mobile Lo Lhe qroup
lor E96m earlier Lhis summer
and has Lhe riqhL Lo voLe his
sLock aqainsL any such Lakeo
ver deals.
TELMEX
BUYS INTO
PORTUGAL
Mexican carrier 1elmex has
become a ma|or shareholder
in PorLuqal 1elecom, acquir
inq a 3.^ per cenL sLake in Lhe
company. 1he move Lhrows
a spanner in Lhe works ol
PorLuquese conqlomeraLe
Sonae's E0.7bn (E7.^bn)
hosLile bid lor PorLuqal
1elecom.
1he sLake was acquired via
common sLock and iL is under
sLood Lhe 1elmex involvemenL
was unsoliciLed. lL is noL clear
wheLher 1elmex inLends Lo
increase iLs sLake in Lhe luLure.
PorLuqal 1elecom has been
resisLinq Sonae's Lakeover
aLLempL since March, sayinq
iL "is ol Lhe opinion LhaL Lhe
currenL and luLure value ol
PorLuqal 1elecom is consider
ably hiqher Lhan Lhe oller
price."
ZTE EXPANDS
SRI LANKA
CDMA
NETWORK
Chinese manufacturer
ZTE has stated that it
has been ccntracted tc
expand the CDMA netwcrk
cf Sri Lanka's fcrmer state
cwned carrier, Sri Lanka
TeIeccm.
ZTE has been ccmmis-
sicned tc depIcy an aII !P
cdma2000 netwcrk based
cn what it cIaims is the
wcrId's first ccmmerciaI
intercperabiIity specifi-
caticn (!0S) 5.0-based
system.
The depIcyment cf this
seccnd phase means the
netwcrk wiII be enIared
tc ccver apprcximateIy
300,000 subscribers aII
cver the isIand, whc have
Iimited access tc teIeccms.
17 www.telecoms.com: the first choice for data-led and independent comment//mobile communications international
NEWS
SAMSUNG DEMOS 4G
ln Lhe wake ol Vodalone's
E.35bn exiL lrom Lhe Belqian
markeL, Lhe rumour mill
has been qrindinq away.
SpeculaLion suqqesLs LhaL
Lhe company is lookinq Lo
slim down lurLher, pos
sibly by ollloadinq asseLs
in SwiLzerland, and Lhrows
more luel on Lhe lire ol Lhe
US quesLion.
lL is known LhaL Swisscom
is keen Lo buy back
Vodalone's 25 per cenL sLake
in Lhe Swiss operaLor, a move
which could allow Lhe pair
Lo mainLain a nonlinancial
parLnership.
Dan Bieler, analysL aL
Ovum, commenLed LhaL
such a move would liL wiLh
Vodalone's qreaLer locus on
core markeLs where iL has
operaLional conLrol. However,
Lhe operaLor's posiLion on
iLs ^5 per cenL US holdinq
is less clear, wiLh Lhe com
pany underlininq Lhe lonq
Lerm naLure ol Lhe exisLinq
VodaloneVerizon relaLion
ship. "We sLill Lhink LhaL aL
Lhe riqhL price Vodalone
miqhL exiL Lhe US," Bieler
said.
1he decidinq lacLor lor
Swisscom is likely Lo cenLre
on Lhe qovernmenL's pro
posed paLh lor privaLisaLion.
ln June, Lhe Swiss upper
house ol parliamenL voLed
aqainsL Lhe privaLisaLion ol
Lhe lormer Lelecoms monopo
ly, wiLh Lhe issue noL likely Lo
be reconsidered unLil Lhe nexL
naLional elecLions in 2007.
Swisscom has been aL
loqqerheads wiLh Lhe sLaLe
since lasL year when Lhe
qovernmenL decided iL
would ollload iLs 66. per
cenL holdinq in Swisscom.
1he qovernmenL insLrucLed
iLs represenLaLives on Lhe
board Lo voLe aqainsL pos
sible loreiqn acquisiLions,
insLead encouraqinq Lhe
disLribuLion ol lree capiLal
Lo shareholders. As a resulL
Swisscom is only allowed Lo
make resLricLed acquisiLions
abroad.
1he operaLor has repeaL
edly sLaLed Lhe need lor a
compleLe or parLial disposal
ol Lhe qovernmenL sLake as
Lhe only viable opLion lor
Lhe luLure developmenL ol
Swisscom.
1he rumours lollow
Vodalone decision Lo sell
iLs 25 per cenL sLake in
Belqium's dominanL Lel
ecoms qroup, Proximus, Lo
Belqacom. 1he sale, which
will qo Lowards reducinq
Vodalone's recenL heavy
losses, is worLh E2bn
(E.35bn).
Belqacom is 50 per cenL
owned by Lhe Belqian qov
ernmenL and already owns
75 per cenL ol Proximus.
1he deal will compleLe
Belqacom's ownership ol
Lhe qroup and, accordinq Lo
observers, make iL easier Lo
manaqe and reacL Lo markeL
Lrends.
VODAFONE TO EXIT SWISSCOM NEXT?
Korean kit vendor 5amsung
demonstrated 4C mobile
technology Ior what it
claimed was the Iirst
time in the world, at its
4C Forum on Je|u Island,
Korea.
The vendor claimed data
speeds oI 3.5Cbps using
SXS MIMC(MultiInput
MultiCutput) technology,
as well as standard nomad
ic speeds oI !Cbps.
There was also a dem
onstration oI mobile 4C
taking place in a specially
designed bus, which deliv
ered !00Mbps data trans
mission moving at speeds
oI 60kmph.
5pectrum allocation Ior
4C technology is expected
to be decided on at the
World Padiocommunication
ConIerence (WPC) in
Cctober 2007, while the 4C
mobile communications Ior
mat is expected to become
commercially available
around 20!0.
ERICSSON
SCORES
BIG TICKET
DEALS IN
CHINA
5wedish equipment vendor
Ericsson says it has won
over $550m (29!m) worth
oI C5M contracts with lead
ing Chinese cellco, China
Mobile.
The contracts, which
cover expansion pro|ects
in !7 regions, have been
agreed throughout the Iirst
halI oI the year and deliver
ies are already underway.
Under the contracts,
Ericsson will provide China
Mobile with core and radio
networks as well as deploy
ing its mobile soItswitch
solution. The implementa
tion oI soItswitches will help
IutureprooI the network
through China Mobile's evo
lution to 3C.
China is widely expected
to unveil its 3C licensing
strategy sometime this year,
with China Mobile expected
to receive a licence to roll
out WCDMA in the country.
CHINA
MOBILE
RECORDS
STRONG
FIRST HALF
China's leadinq mobile opera
Lor, China Mobile, announced
Wednesday a 25.5 per cenL
increase in neL proliL lor Lhe
lirsL hall ol 2006 Lo reach
RMB30bn (E.9bn). OperaLinq
revenue lor Lhe six monLh peri
od also increased 9.6 per cenL
year on year lrom RMB^bn Lo
RMB37bn on Lhe back ol sLronq
subscriber qrowLh.
China Mobile's CSM subscrib
er base increased 22.3 per cenL
year on year Lo Lop 27^.7 million
aL Lhe end ol June.
AlLhouqh Lhe Chinese opera
Lor has been Lhe world's biqqesL
cellco by cusLomer numbers lor
some Lime, earlier Lhis monLh iL
unseaLed Vodalone as Lhe mosL
valuable mobile operaLor.
China Mobile, ollicially
lormed on April 20, 2000,
now commands a markeL
value ol around E69.6bn while
Vodalone, ollicially lormed
in 982, dropped behind aL
E6^bn.
NEWS
Norweqian operaLor 1elenor
has awarded Finnish manu
lacLurer Nokia a qlobal lrame
aqreemenL lor iLs cellular
neLworks.
Under Lhe aqreemenL,
Nokia will supply 1elenor wiLh
Nokia Hopper microwave
radios Lo be used lor Lrans
mission lrom boLh base sLa
Lions and lixed applicaLions
when new siLes are deployed,
or an increase in capaciLy is
needed. 1he aqreemenL cov
ers all reqions where 1elenor
and iLs alliliaLed companies
have operaLions.
1he Lechnoloqy, which can
be inLeqraLed inLo exisLinq
CSM and WCDMA 3C neL
works, also meshes wiLh lixed
neLwork operaLions.
Meanwhile, Nokia has
Leamed up wiLh securiLy
vendor Sourcelire Lo puL Lhe
SnorL open source inLrusion
deLecLion sysLem on Nokia's
hiqhend lP kiL.
SnorL is widely reqarded
as Lhe de lacLo sLandard lor
inLrusion prevenLion and
Nokia will oller Lhe Lech
noloqy on iLs lP SecuriLy
PlaLlorms lor LradiLional and
mobile environmenLs, based
on Lhe hardened Nokia lPSO
operaLinq sysLem.
"1hreaLs are becominq
more sophisLicaLed, LarqeLinq
Lhe applicaLion, noL |usL Lhe
neLwork," said 1om Furlonq,
vice presidenL, SecuriLy
and Mobile ConnecLiviLy aL
Nokia. "SolLware such as
Sourcelire's Lo allow enLer
prises Lo add key securiLy ele
menLs as Lhey mobilise Lheir
workers."
Chris ChrisLiansen,
proqram vice presidenL,
SecuriLy ProducLs and
Services, aL indusLry ana
lysL lDC added: "Companies
are adopLinq mobile and
remoLe access Lechnoloqies
in qreaLer numbers Loday,
which leads Lo new secu
riLy concerns LhaL lirewalls
alone simply aren'L enouqh
Lo address. For LhaL reason,
soluLions such as lnLrusion
PrevenLion are becominq
viLally imporLanL lor proLecL
inq company neLworks."
NOKIA WINS NORWEGIAN CONTRACT
lnLerneL qianL
Cooqle has
launched a
lreely acces
sible wili
neLwork in iLs
homeLown ol
MounLain View.
Radios hanq
inq on lamp
posLs LhrouqhouL Lhe ciLy are
now broadcasLinq an 802.b/
q siqnal LhaL is publicly acces
sible by any residenLs, busi
nesses and visiLors wiLhin Lhe
area ol coveraqe.
Cooqle sLaLes Lhe neLwork,
"is a way lor us Lo qive back
Lo and enqaqe wiLh Lhe com
muniLy where our headquar
Lers are," while anoLher qoal
is Lo promoLe alLernaLive
access Lechnoloqies by usinq
MounLain View as an example
lor orqanisaLions considerinq
invesLinq in wili.
"We Lhink successlul mesh
wireless deploymenLs will
promoLe compeLiLion, creaLe
cheaper access alLernaLives,
and (il done correcLly) losLer
open, sLandardscompli
anL plaLlorms lor conLenL
and service
providers Lo
showcase Lheir
applicaLions
wiLhouL Lhe
hassle ol Lhe
LradiLional
walledqarden
approach," Lhe
company said.
While Cooqle has no
plans Lo charqe lor wili
access in MounLain View,
Lhe inLerneL search qroup
has also parLnered wiLh lSP
LarLhlink Lo cover Lhe ciLy
ol San Francisco wiLh a wili
neLwork.
Cooqle and LarLhlink's
|oinL proposal will see Lhe
companies ollerinq a Liered
paymenL sysLem lor inLerneL
access, includinq an LarLhlink
service LhaL will leL payinq
users connecL aL hiqher
speeds Lhan Lhose who con
necL lor Cooqle's lree serv
ice, which will be paid lor by
online adverLisinq.
SpeculaLion is now spread
inq LhaL Cooqle has iLs siqhLs
on creaLinq a wili neLwork Lo
cover Lhe whole ol Lhe US.
GOOGLE LAUNCHES FREE
WI-FI SERVICE AT HOME
Ihe IM8ready ortfoIIo that's aII the rae.
8eady to mIx It 07
If you want to deliver any service over any network to any device, it`s time to get the
party rolling. The Telcordia
Maestro
IMS Portfolio makes the promise of IMS

become a workable, cost-effective reality. Now, you can create, deliver, and charge for
new services more smoothly and quickly than ever before. Get ready to rock.
2006 Toloordia Toonnologios, no. All rignts rosorvod.
W W W T E L C O R D I A C O M M A E S T R O
MS Por t fol i o
NEWS
French mobile operaLor
Oranqe says iL has approved
Lhe Access Linux PlaLlorm
(ALP) lor use on iLs neLwork.
1he operaLor will use Lhe
Linux ollerinq, developed by
Japanese lirm Access, in con
|uncLion wiLh iLs own Oranqe
ApplicaLion Packaqe Lo equip
device manulacLures wiLh a
Lurnkey mobile Linux plaLlorm.
Oranqe anLicipaLes Lhe Linux
plaLlorm can Lhen be used Lo
develop new addiLions eas
ily and quickly Lo iLs ranqe ol
Oranqe SiqnaLure Devices.
Yves MaiLre, vice presidenL
ol devices aL Oranqe, said:
"1his is parL ol our wider
SiqnaLure sLraLeqy, which
delivers a consisLenL cusLomer
experience across a varieLy ol
devices and applicaLions and.
will enable us Lo losLer Lhe
qrowLh ol Lhe mobile Linux
markeL."
lndeed, Lhe announcemenL
may be Lhe lirsL mainsLream
implemenLaLion ol Linux by a
ma|or operaLor, as well as qood
news lor Access.
Michael Carroll, ol lnlorma
1elcoms & Media's Mobile
HandseL AnalysL said, "lL's
probably Lhe lirsL widespread
deploymenL ol Lhe new plaL
lorm, so iL will prove an inLer
esLinq LesL bed lor Lhe popular
iLy ol Lhe OS amonq users, noL
|usL solLware developers.
"Oranqe was one ol Lhe lirsL
carriers Lo adopL MicrosolL's
Windows Mobile solLware,
which helped Lhe solLware
qianL achieve a deqree ol cred
ibiliLy in Lhe mobile markeL LhaL
is now payinq oll in Lerms ol
increased deploymenLs. Access
will surely be hopinq lor Lhe
same."
Linux has been qaininq
some LracLion in Lhe markeL
recenLly. ln June, a consorLium
comprisinq MoLorola, NLC, N11
DoCoMo, Panasonic Mobile
CommunicaLions, Samsunq
LlecLronics and Lhe Vodalone
Croup esLablished a qlobal
open Linuxbased handseL
solLware plaLlorm locused
on lower developmenL cosLs,
increased llexibiliLy and a
"richer mobile ecosysLem".
Meanwhile, Access and
iLs wholly owned subsidiary,
PalmSource, also launched
Lhe Access Developer NeLwork
Monday, an online resource
desiqned Lo acceleraLe Lhe
creaLion, disLribuLion and
usaqe ol mobile Linux applica
Lions as well as Lo exLend Lhe
exisLinq PalmSource developer
communiLy.
PalmSource has inLended
lor some Lime Lo replace
Lhe proprieLary kernel in iLs
CobalL 6. handseL operaLinq
sysLem wiLh Linux. 1he com
pany believes LhaL wiLh mobile
operaLors demandinq more
opporLuniLies Lo cusLomise
handseLs, Lhe move Lo Linux is
noL only speedinq up Lhe Lime
Lo markeL ol Palm devices buL
also appeasinq cusLomers by
ollerinq a sLandardsbased
open source plaLlorm.
ORANGE BACKS LINUX ON THE MOBILE
Disney is reporLed Lo have
lrozen launch plans lor iLs UK
mobile virLual neLwork opera
Lor (MVNO) alLer a weak sLarL
lrom iLs US operaLion and
increasinq concerns in Lhe UK
markeL.
Disney, alonq wiLh a
number ol oLher MVNOs
such as Amp'd Mobile and
LarLhlink's Helio, made much
hyped launches earlier Lhis
year in Lhe US buL are larqely
sLruqqlinq Lo reach Lheir Lar
qeL cusLomer numbers.
ln May, Bob lqer, presidenL
and chiel execuLive ol Disney,
commenLed LhaL Lhe iniLial
resulLs lor Lhe LSPN back
MVNO venLure in Lhe US
"were a liLLle biL lower Lhan
we had hoped" causinq Lhe
company Lo chanqe iLs pricinq
approach.
NoL much was said on
Lhe proposed launch ol Lhe
UK operaLion when Disney
announced iLs laLesL liqures
lasL week buL Lhe compa
ny, which has already qoL
1elelonica's O2 siqned up
as a neLwork parLner, said
only LhaL iL "will keep one
eye on Lhe landscape"
over Lhe launch Lhe UK
service.
ConsolidaLion amonqsL
reLailers in Lhe UK has
increased compeLiLion lor
Lhe company in Lhe MVNO
markeL.
DISNEY TO SCRAP UK
MOBILE PLANS?
TISCALI SEEKING MOBILE
PARTNER IN THE UK?
JusL one day alLer buyinq iLsell
a Lriple play service, lLalian lSP
1iscali is LhouqhL Lo be eyeinq
Lhe mobile markeL.
Rumours abound LhaL
1iscali UK is holdinq meeLinqs
wiLh mobile operaLors 3 UK,
O2, 1Mobile and Vodalone
wiLh a view Lo leasinq capaciLy
on Lheir neLworks.
Mary 1urner, Lhe chiel exec
uLive ol 1iscali UK, previously
conlirmed Lo MCl's sisLer pub
licaLion aL lnlorma 1elecoms &
Media, 1elecom MarkeLs, LhaL
mobile services were on Lhe
radar in boLh Lhe UK and lLaly.
ll a Lwo way deal could be
sLruck, Vodalone may be a
liLLinq parLner as iL is seekinq
a broadband parLner |usL as
1iscali is on Lhe markeL lor a
mobile plaLlorm. Vodalone
chiel execuLive Arun Sarin
commenLed in May LhaL Lhe
operaLor plans Lo exLend iLs
ollerinqs in Lhe home and
ollice Lo include Lhe provision
inq ol DSL services.
1iscali conlirmed plans Lo
merqe iLs UK operaLions wiLh
Video NeLworks, owner ol
1V, broadband and Lelephony
player HomeChoice.
I
P Multimedia Subsystem (IMS)
is being widely accepted in the
industry as an ideal network &
service converge architecture
to replace the legacy PSTN
(Public Switched Telephone Network)
and build the future All-IP network.
As a leading global vendor of
telecommunication system solutions
including IMS, ZTE believes the IMS
will effectively change the telecom
landscape, enabling service providers
to quickly and easily offer new
multimedia services to end-users
using eilher hxed or mobile syslem.
At its most basic, IMS involves
telecommunications carriers moving
away from legacy technologies such
as ATM, Frame Relay, PSTN and over
to Internet Protocol (IP) systems.
The move to an IP infrastructure
means that the carrier can move a
vide variely of dala lrafhc across ils
network, generat-ing economies of
scale, and therefore savings, in both
capital and ongoing costs.
IMS nol only reduces lhe Iex, bul
also enhances the service models.
By building a walled garden in the
IP network, IMS enables carriers to
resist the threats of low-cost Internet
tele-phony services from the likes of
Skype and Vonage.
Featured by fast creation of services,
IMS can quickly help carriers develop
new services, and also enable
the newly developed services to
harmoniously work together with
other vendors telecom services
on their own service platforms.
Everybody knows that there is still
no universal application technol-
ogy available in the industry as yet.
However, a service platform based
on IMS throws light on such a killer
application of technology as it can
quickly offer right services at right
time to help operators create revenue
from a dynamic telecom market.
For telecoms users, the move by
carriers to an IMS-based architecture
will allow the introduction of
exciling nev lelecoms services such
as multime-dia services, converged
services through both wireless devices
and desklo hxed-line conneclions.
In this case, the differences between
wireline and wireless services are
blurred, as the core network for both
services will be the same. In other
words, users can always enjoy the
services anywhere anytime using
different access devices, no matter
whether they are on the move or at
home or in lhe ofhce.
Nevertheless, the initial costs of IMS
solutions on the market to date still
keep high. Whats more, multiple
applications and the like can only be
available as proprietary solutions.
Consequently, some operators still
hesitate to make commitment to IMS.
However, with IMS-related standards
getting more and more mature and
cosl-efhcienl IMS roducls markeled
to the industry, the IMS systems
are increas-ingly improved with
capabilities and performance. As
a result, the introduc-tion cost of
IMS technology is going down and
the deployment of IMS has become
a reality. The IMS technology is
updating the outlook of quite a many
operators at the moment.
Integration of xed Iine and ceIIuIar
services
In essence, IMS allows the carrier to
develop a common core network with
the delivery end of the connection
hxed or vireless being decided by
customer demand.
The last mile of the traditional
telecoms circuit, which the incumbent
lelcos have guarded so hercely,
effectively becomes open market,
as carriers and their customers can
elecl lo use hxed line (coer air1
broadband or hbre olic), WiIi or
cellular as their delivery mechanism
of choice. IMS provides seamless
access to any services, freeing up the
application layers from the network
layers and providing strong QoS.
One of the main reasons for
implementing IMS is to enable
smart charging of multimedia
sessions. Operators have a broad
range of charging options from a
micro approach charging for each
individual use of each available
product, to a macro approach
charging a single rate for access to all
services, and a number of approaches
in between.
From a customers perspective,
IMS opens up the possibility of
a whole new vista of advanced
telecommunications services
becoming available across both
hxed and vireless conneclions, al
exlremely comelilive ricing levels.
These advanced services could reach
critical mass in the marketplace
within a relatively short period of
time.
Win-win for carriers and teIcos
The adoption of IMS is a potential
win-win scenario for carriers and
telecoms users alike. The only
potential losers are telcos that fail
to evolve their networks with IMS
to take advantage of this brave new
telecoms world.
ZTE is developing a range of IMS
offerings for telecoms carriers,
building on the success that the
company has enjoyed with its
Softswitch technology, which will be
used as the baseline architecture for
IMS.
For the networks, IMS levels the
laying held belveen lhe incumbenl
telcos, the cable companies, and the
IP Multimedia Subsystems-updating
www.zte.com.cn
unbundled independent operators.
It also improves the ballgame for the
cellcos and WiFi service providers by
allowing carriers to bridge the gap
belveen hxed and mobile services
with the same series of applications.
IMS also represents a win-win
situation for the carriers customers,
giving them access to a wide range of
new services, such as IP-TV and VoIP,
without the carrier having to cost-
justify each service on its own. Also,
if a carrier offers a given service on its
hxed access nelvork, lhere are very
few reasons why that same service
cannot also be offered on the carriers
wireless access network.
ZTE is moving swiftly forward to
become a key player in the IMS
market, assisting carriers of all sizes
in their quest to offer advanced
telecommunica-tions services to
an increasingly multimedia-aware
business audience.
ZTE predicts a rapid evolution of
Iixed-lo-Mobile Convergence (IMC)
lechnologies in lhe nexl fev years.
This evolution trend, which will
depend in part on IMS, motivated
ZTE to heavily invest in IMS R&D.
The company has more than 1000
employees working on IMS develop-
ment and implementation now, taken
from our wireless, data, network and
handset divisions.
ZTL execls lhe hrsl IMS syslems
and compliant equipment to reach
the market some time during 2007,
but most carriers are already busy
developing the technology and skills
required to implement IMS on their
networks.
Research from ABI (www.
abiresearch.com) claims that, by 2010,
there will be an annual global capital
exendilure of US$ 6 billion on IMS
technology.
$100 biIIion additionaI
revenue by 2010
y 2O1O, lhe research hrm says,
carriers worldwide will be serving
350 million business and consumer
subscrib-ers using IMS-based
services, generaling US$1OO billion in
revenues. Even though this revenue
level is only 10 per cent of the world
s predicted telecoms revenues in
2010, it is all new revenue, over and
above income from traditional voice
services.
ZTEs strategic partnership with
national operators in China places
the company at the forefront of
IMS developments worldwide. In
February and March this year, a
well-known operator from China
tested ZTEs V3 platform based IMS
equipment includ-ing Call Session
and Breakout Gateway control
funclions (CSCI1I-CSCI1S-CSCI1
BGCF), IMS access equipment (SBC),
IMS terminals, IMS service platform
equimenl (IM-SSI1SII AS), IMS
billing system, IMS network gateway
equipment, and IMS interoperation
equimenl (MGCI1IM-MGW).
ZTEs IMS system passed all test
cases and scored highly on all key
test criteria. ZTE also believes that
its IMS system is easy to implement
and manage, which helped the test
engineers to quickly become familiar
vilh lhe syslem and execule lhe lesl
cases in a professional way.
ZTEs IMS Strength
ZTE does not anticipate any
interoperability issues with the
intro-duction of IMS to the telecoms
world, mainly because of our years
of lelecom exerlise and exeriences.
Our IMS technology allows for easy
interfacing with third-party systems,
including legacy hardware from
other suppliers. ZTE IMS system
complies with 3GPP, 3GPP2 and
TISIAN1ITU-T IMS slandards, vhich
makes it completely suitable for
various access networks. To protect
lhe exisling inveslmenl and make
best use of legacy resources, ZTE IMS
system interworks with mobile circuit
switching domains, PSTN and H323
networks.
ZTEs end-to-end IMS solution
consists of various terminals,
including the IMS soft client and
handsets, SIP phone and IAD. To
exand lhe sub-scriber caacily, ZTL
IMS system also supports legacy
POTS phone and legacy SIP terminals.
ZTE IMS solution provides
multimedia services for both
individuals and enterprises. For
examle, ZTL IMS syslem suorls
instant messaging, Presence, IP
Cenlrex, Mullimedia caller ID, Mulli
media ring back tone, etc. ZTE
s integrated IMS client and service
system SoftDA (Software Digital
Assistance) has been deployed by
China Mobile as their IMS client.
ZTEs IMS system is built on ZTEs
unihed hardvare lalform including
V3 platform. All of ZTE s leading IMS
products are based on this platform
including the CSCF, MGW, HSS and
Media server, etc., which allows easy
upgrade and maintenance.
Meanwhile, ZTE can customize IMS
solutions for individual carriers
secihc requiremenls, ensuring lhal
the end IMS solution delivers all the
benehls lhal lhe carrier is looking
for, both for the carrier and for its
customers.
the telecoms outlook
ZTE UK ofce:
Tel:44(0)20 8349 8058
Iax:44(O)2O 8349 8O48
haL is Millicom's currenL
merqer sLraLeqy? 1he
markeLs are inLriqued.
Havinq diLhered over iLs
own possible sale Lo a
ma|or operaLorLhouqhL
Lo be a dead cerL lor China Mobile unLil
Lhe deal collapsed aL Lhe lasL minuLe in
JulyiL has launched iLs own an acquisi
Lion lrenzy.
1he laLesL purchase, ol Colombia's
Lhird larqesL operaLor, Colombia Movil,
which carries Lhe brand Ola, is a poLen
Lially excellenL deal, despiLe Lhe lacL
LhaL Ola is aL Lhe momenL a consisLenLly
lossmakinq company.
For one Lhinq, Millicom qoL Ola aL
Lhe qovernmenL's minimum aucLion
price alLer lrishowned panCaribbean
operaLor Diqicel pulled ouL, leavinq iL
Lhe sole bidder. 1he qeneral lack ol
inLeresL in Lhis qovernmenL aucLion ol
Lhe operaLor has kepL Lhe biddinq price
low (Chilean mobile operaLor LnLel PCS
oriqinally showed inLeresL buL opLed ouL
ol Lhe biddinq).
BuL could Lhe deal Lo buy Lhe
Colombian operaLor oller poLenLial lor
rapid luLure qrowLh?
Millicom could cerLainly do wiLh a
biL ol cheer. 1he markeLs punished Lhe
operaLor badly when iL ended Lalks
wiLh unsoliciLed bidders LhaL could
have seen iL snapped up lor an inllaLed
price, mosL probably by China Mobile
alLer lnvesLcom dropped ouL. As usual,
once Lakeover speculaLion was priced
in, Lhe rebuLLal ol suiLors brouqhL pain.
Millicom's shares Look a 3 per cenL hiL
on news LhaL Lakeover Lalks had closed
wiLh no deal, buL Lhe operaLor held
iLs qround, poinLinq ouL LhaL "a com
binaLion ol condiLion, price and Lime"
made Lhe deal unaLLracLive and hinLinq
sLronqly LhaL, lor Lhe near luLure aL
leasL, Lalks were over.
1he lacL LhaL shareholders Lhrew a
LanLrum over Millicom's unwillinqness
Lo seal a deal is no real concern lor Lhe
operaLor. LrraLic share prices aside,
Millicom has powered ahead in Lhe lun
damenLals, where iL really counLs.
ln iLs second quarLer resulLs, iL posL
ed a 28 per cenL rise in underlyinq prol
iL lor Lhe second quarLer and laid ouL
ambiLious plans Lo massively increase
invesLmenL in new neLwork buildouL.
Core proliLs (earninqs belore inLer
esL, Lax, depreciaLion and amorLisaLion,
or LBl1DA) wenL up Lo $57m, lrom
$^2m in Lhe lirsL quarLer and $22m in
Lhe same period ol 2005. ReuLers news
analysLs had predicLed $^9m LBl1DA
lor Lhe second quarLer, so Millicom
exceeded expecLaLions. Second quarLer
revenues also lared well, risinq 39 per
cenL Lo $362m.
8e[Lhe luLure looks briqhL. 1he
company, which is ma|oriLy owned by
Swedish Lelecoms and media qroup
Kinnevik, now has over Len million
subscribers in 6 counLries LhrouqhouL
LaLin America, Alrica and Asia in mar
keLs many ol which have relaLively low
peneLraLion and hiqh markeL qrowLh
poLenLial.
Ol Lhese, iL is LaLin America LhaL
Millicom Lhinks holds Lhe mosL prom
ise. Chiel LxecuLive Marc Beuls made
iL clear in a recenL speech LhaL Lhe
primary drivers ol Millicom's earninqs
qrowLh have been in LaLAm counLries.
For insLance, revenues have increased
78 per cenL and 52 per cenL in CenLral
and SouLh America, respecLively.
lL was no doubL wiLh Lhis in mind LhaL
Lhe operaLor made iLs bid lor a conLrol
linq 50 per cenL plus one share sLake ol
Ola lor $^78m. WhaL is Lhe loqic ol Lhis
deal? MosL imporLanLly, why is Millicom
buyinq an operaLor LhaL has made
consisLenL losses lor years despiLe a
helLy $650m invesLed inLo buildinq ouL
iLs inlrasLrucLure since iL lirsL beqan
operaLions in November 2003? (Ola has
lailed Lo Lurn a proliL lor Lhree years!)
Millicom's Colombian acquisiLion is
in beLLer shape Lhan iL miqhL appear.
ln Lerms ol markeL share, Ola has
perlormed well, qrabbinq an increas
inq slice ol Lhe counLry's subscribers
lrom iLs main compeLiLors, Comicel,
owned by Mexico's America Movil and
Lhe Colombian subsidiary ol Spain's
1elelonica Moviles, branded MovisLar.
By Lhe end ol June Lhis year, Ola had
baqqed 2.5 million cusLomers, up by
more Lhan 50 per cenL on a year earlier.
And movinq inLo Colombia is likely Lo
prove a wise sLraLeqy. AnalysLs aqree
wiLh Millicom's Lop execuLives LhaL
Colombia has huqe qrowLh poLenLial,
especially since iL only has Lhree ma|or
operaLors, much lewer Lhan oLher LaLin
American markeLs, and a relaLively hiqh
CDP per capiLa, as Beuls poinLed ouL in
a recenL inLerview wiLh Dow Jones.
Sales ol mobile phone conLracLs
overLook lixed line sales lor Lhe lirsL
Lime in 2005, driven parLly by lower
lees buL also by a wave ol enLhusiasm
lor wireless Lelephony. Ola now has
,30 mobile anLennas in Colombia, lore
casL Lo rise Lo ,500 by December.
BoLh Millicom and Lhe owner ol mosL
ol Lhe resL ol Ola's shares, Lhe sLaLerun
Lmpresa de 1elecomunicaciones plans Lo
invesL quickly Lo Lake advanLaqe ol Lhis
buddinq markeL, commiLLinq someLhinq
in Lhe reqion ol $350m. ln Lhe nexL Lwo
years, Millicom says iL plans Lo invesL
around $75m in Lhe business over Lhe
nexL Lwo Lo Lhree years mainly in markeL
inq and Lo increase Lhe number
W
Some more of that Latin Spirit
Millicoms bid for Colombias Ola was a wise move for both operators, which makes it even
harder to explain why Digicel withdrew from the competitive bidding process.
MOBILE MONEY
By Tim Cocks
ERRATIC SHARE
PRICES ASIDE,
MILLICOM HAS
POWERED
AHEAD IN THE
FUNDAMENTALS,
WHERE IT REALLY
COUNTS
MOBILEMONEY//SHORTS
>> French teIeccm-equipment firm
AIcateI has sined a deaI tc buy
NcrteI Netwcrks' UMTS radic-
access business and scme reIated
assets fcr $320m. AIcateI said the
deaI, which wiII ive it ancther 14
UMTS cperatcr custcmers, is a key
step in its stratey tc strenthen
its pcsiticn in Scuth Kcrea, !taIy,
Spain, France and the UK.
>> Ericsscn is tc buy Finnish
scftware ccmpany Distccraft, a
speciaIist in systems fcr manain
perfcrmance cf 3C mcbiIe netwcrks.
The Swedish vendcr said the deaI
wiII hihIiht the impcrtance cf
service manaement fcr mcbiIe
cperatcrs Icckin fcr ways tc
imprcve efficiency and reduce time-
tc-market fcr new services, Iike
such as HSPA (Hih-Speed Packet
Access).

>> McbiIe penetraticn in Latin
America has hit 70 per cent,
acccrdin tc a study by ccnsuItancy
Latin PaneI. CcIcmbia is in the Iead,
with 90 penetraticn and VenezueIa
is in the seccnd pIace with B9 per
cent penetraticn, fcIIcwed by ChiIe
with B7 per cent, and BcIivia with
B2 per cent.
>> !ndian CSM cperatcr Spice
Ccmmunicaticns has said it wants
tc raise up tc $2.5bn via debt and
a pubIic share cffer tc expand its
cperaticns in !ndia, Reuters news
aency repcrted. The ccmpany
currentIy has Iess than twc per
cent cf !ndia's 10B miIIicn mcbiIe
phcne users.
>> After years cf ccst cuttin,
Eurcpean firms are increasin
the amcunt they spend cn mcbiIe
teIeccms acccrdin tc a repcrt by
anaIyst firm Fcrrester. !n a survey
cf 301 ccmpanies, nearIy haIf said
they wiII increase spendin cn
mcbiIe techncIcy. McbiIe prcducts
and services ncw acccunt fcr a
third cf the teIeccms and netwcrk
budet, the firm said.
ol poinLs ol sales where cusLomers can
buy sim cards, conLracLs and airLime.
AnoLher Lhinq recommendinq Lhe deal
is LhaL Lhe money needed Lo linance
iL won'L come ouL ol Millicom's own
cash reserves. lnsLead, Lhe operaLor
will issue debL Lhrouqh anoLher ol iLs
LaLin America subsidiaries, leavinq iLs
own reserves inLacL and keepinq a posi
Live ouLlook on iLs crediL raLinqs. And
il all qoes well, Ola could be makinq
siqnilicanL conLribuLions Lo Millicom's
core proliLs by mid2007, provided, ol
course, LhaL Millicom's sLronq manaqe
menL can Lurn Lhe business around.
1his is noL Lo say LhaL Lhere are
no poLenLial piLlalls in Lhe acquisi
Lion. CranLed, Colombia may have an
impressive CDP per capiLa and only
Lhree ma|or wireless providers, buL
compeLiLion lor cusLomer revenues
is sLill seL Lo be lierce. ln parLicular,
Spain's 1elelonica is planninq a huqe
expansion and upqrade ol iLs CSM neL
work in Colombia. 1he operaLor |usL
qoL a E00m loan lrom Lhe Luropean
lnvesLmenL BankLhe LU's developmenL
lendinq armLo expand Lhe neLworks
ol iLs local wireless uniL inLo previously
unLapped rural and urban areas.
1his miqhL noL be such an issue, only
Ola needs Lo sLarL Lurninq a qood proliL
soon. CosLly invesLmenLs in neLwork
buildouL have lelL iLs cash balances
lookinq preLLy shaky. lncreased compe
LiLion lrom 1elelonica, noL Lo menLion
number one player Mexico's America
Moviles, has Lhe poLenLial Lo whiLLle
away Ola's luLure earninqs and Millicom
will have Lo work hard in applyinq iLs
experLise
Ancther issue is Lhe approachinq
saLuraLion ol Lhe Colombian markeL. A
recenL sLudy by consulLancy LaLin Panel
showed Colombia leadinq all oLher
LaLAm counLries in mobile peneLraLion
wiLh a whoppinq 90 per cenL ol Lhe
populaLion sporLinq mobile phones,
compared wiLh 82 per cenL in Bolivia
and 63 per cenL in ArqenLina.
1haL by iLsell should noL deLer
Millicom, buL iL does ouLline LhaL rev
enue qrowLh will ol necessiLy have Lo be
achieved by qrowinq averaqe revenues
per user (ARPU), someLhinq LhaL invari
ably proves Lrickier Lhan Lhe iniLial reel
inq subscribers in.
1haL Ola iLsell sLands Lo qain much
lrom a Millicom parLnership hardly
needs Lo be sLaLedMillicom's sLronq
earninqs have lelL iL relaLively cash rich
wiLh larqe sums ol money Lo pour inLo
boosLinq Ola's brand imaqe and qeLLinq
iLs exisLinq cusLomers Lo spend more.
Ola is now parL ol a qlobal operaLion,
succeedinq in mosL ol Lhe counLries iL
operaLes in.
A happy marriaqe indeed. BuL qiven
Lhe overall aLLracLiveness ol Lhe case
lor Millicom buyinq Ola, Lhe wiLhdrawal
ol Diqicel lrom Lhe biddinq process
LhaL enabled Millicom Lo snap iL up so
cheaply seems hard Lo explain. For
many reasons, Ola would have seemed a
naLural LarqeL lor Diqicel. Since Lhe lrish
operaLor lirsL moved inLo Lhe Caribbean
by seLLinq up a service in Jamaica in
200, iL has made no secreL ol iLs plans
Lo be a biq reqional player.
lL only Look Diqicel Lhree monLhs qrab
hall as many cusLomers in Jamaica
as Lhe LhenincumbenL Cable and
Wireless. Since Lhen, Diqicel has spenL
hundreds ol millions ol dollars, mosLly
raised Lhrouqh debL linancinq, acquir
inq exisLinq cellular operaLions in Lhe
Caribbean and buildinq ouL and upqrad
inq inlrasLrucLure. lL now in markeLs
such as 1rinidad and 1obaqo and HaiLi,
in which lL has commiLLed $30m Lo
build ouL inlrasLrucLure since iL sLarLinq
up in May. lL has bouqhL an operaLor in
French Cuiana and obLained a licence Lo
operaLe in Cuyana. lL now has over .3
billion mobile phone cusLomers.
Diqicel lounder and chairman, Denis
O'Brien has said Lhe qroup is applyinq
lor licences in Samoa, Fi|i and oLher
Pacilic islands. He also said he wanLs Lo
enLer Lhe US markeL by 2007.
Diqicel's prolessed plan move inLo
Spanishspeakinq SouLh America Lhus
seemed like a naLural expansion ol iLs
already helLy qains in Lhe reqion, havinq
already secured access Lo Lhe French
speakinq Caribbean markeLs Lhis year
whilsL conLinuinq Lo consolidaLe iLs posi
Lion in Lhe Lnqlishspeakinq Caribbean
and Lhe NeLherlands AnLilles. Why on
earLh did Lhe operaLor pull ouL?
Diqicel's own explanaLion was LhaL iL
wanLed Lo "locus on oLher pro|ecLs"
parLicularly on qeLLinq iLs Cuyana
service up and runninq and expandinq
iLs hold on French Cuyana. Perhaps Lhe
board lelL Lhey were spreadinq Lhem
selves a biL Lhin wiLh Lheir ambiLious
plans lor expansion? LiLher way, should
Ola sLarL payinq ouL soon, iL miqhL sLarL
lookinq like a missed opporLuniLy lor
Diqicel.
MOBILE MONEY
International Engineering
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912 October 2006
EXHI BI TI ON
1012 October 2006
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Dri vi ng t he Broadband Fut ure
Keynote addresses
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The worlds best thinking about the broadband business will be at this must-attend telecommunications event.
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COVER STORY//JAPAN/KOREA
mobile communications international//Search our archive at www.telecoms.com 30
N?@C<
qlobally recoqnised as beinq aL leasL
Lhree years ahead in service devel
opmenL, mobile operaLors in Japan and Korea miqhL be
viewed as havinq cracked Lhe mysLerious and elusive code
wiLh reqard Lo Lhe consumer upLake ol daLa services.
CrediL should be qiven lor many ol Lhe imaqinaLive and
commercial innovaLions LhaL operaLors in Lhese Lwo coun
Lries have developed and launched. BuL markeL condiLions
have olLen dicLaLed Lo Lhese mobile operaLors Lhe adopLion
ol services and business models LhaL are poLenLially unique
Lo each counLry. 1o simply believe LhaL Lhe business case
is proven could prove poLenLially very challenqinq lor any
imiLaLors, and someLhinq Lhey miqhL look Lo avoid.
Chiel amonq Lhese possible piLlalls are Lhe charqinq
meLhods LhaL Lhe Japanese operaLors adopLed some
years aqo. MeLhods LhaL are now lorcinq Lhose same
operaLors inLo a dramaLic reLhink as new hiqhspeed daLa
services are launched.
1he rooL ol Lhe dilliculLies sLems lrom charqinq lor
Lhe service by Lhe volume ol daLa Lrallic consumed. 1he
problem wiLh Lhis approach is LhaL noL all daLa services
are Lhe same. 1exL messaqinq provides hiqh value buL
comprises very liLLle daLa, whereas mobile 1V consumes
a massive amounL ol daLa buL cusLomers will only pay so
much. CerLainly noL $00 per minuLe in daLa biL Lerms, il
Lhe user is charqed aL Lhe same raLe.
1o avoid Lhis problem, Lhe Japanese operaLors have
reduced Lhe charqe per biL Lo make Lhe cosL ol access
inq someLhinq like mobile 1V more accepLable Lo Lhe
user. UnlorLunaLely, Lhe knockon ellecL is LhaL exisL
inqand presenLly proliLabledaLa services have become
siqnilicanLly cheaper as Lhe same 'per biL charqinq' is
implemenLed. An indicaLion ol Lhis sLraLeqy, accordinq
Lo Lhe markeL research lirm Analysys, is LhaL messaqinq
revenues LhaL are lallinq in Japan as aqainsL elsewhere in
Lhe world.
THE FOCUS FOR MANY OPERATORS WANTING TO GAIN VALUABLE INSIGHT INTO WHAT MIGHT BE THE
NEXT OIL GUSHER SERVICE IS JAPAN AND KOREABUT CULTURAL AND BUSINESS CONDITIONS
MEAN THAT SIMPLE IMITATION IS NOT THE ANSWER AND GREATER PERCEPTION IS REQUIRED.
//By Paul Rasmussen//
TESTING TIMES
One ol Lhe more exLreme viewpoinLs is LhaL MNP will
cause SolLbank Lo implode, primarily caused by iLs very
poor inbuildinq coveraqe due Lo chronic underinvesLmenL
durinq Lhe misquided era ol Vodalone manaqemenL. 1he
lack ol coveraqe, in Lhis scenario, will see iLs subscrib
ers miqraLe over Lo DoCoMo or KDDl even Lhouqh Lhe
new SolLbank manaqemenL has promised siqnilicanL new
invesLmenL Lo resolve Lhe inbuildinq problem.
OLher observers believe LhaL SolLbank is on Lhe verqe
ol a rebirLh: "SolLbank has a qood brand, Lhe CLO is
aqqressive and he won'L leL his new venLure lailhe'll
drive Lhe innovaLion," sLaLes Rory Buckley, presidenL
and represenLaLive direcLor lor Lricsson Japan. "1his
will include new pricinq and services. BuL he has oLher
resources LhaL he can counL on, such as Lhe Yahoo plaL
lorm and SolLbank's own conLenL. lL also has DSL so iL can
make a play lor Lhe FMC markeL very quickly. l believe Lhe
company has a very sLronq poLenLial Lo brinq new serv
ices Lo consumers, in con|uncLion wiLh lower pricinq."
While operaLors in Japan and Korea are esLimaLed Lo
be aL leasL one qeneraLion ahead in service developmenL
Lerms ol operaLors elsewhere, voice conLinues Lo provide
Lhe bulk ol onqoinq revenues. However, Lhis seqmenL is
provinq Lroublesome wiLh a clear downward Lrend in per
minuLe voice revenueswiLh SK 1elecom (SK1) reporLinq
a lall in revenue perminuLe ol 6.3 per cenL lrom 2002
Lhrouqh 2005, while DoCoMo experienced a 3.7 per cenL
drop over Lhe same period.
www.telecoms.com: the first choice for data-led analysis and independent comment//mobile communications international 31
"1he ARPU liqures lor Japan and Korea are cominq
under increased pressure reqardless ol Lhe new services
beinq inLroduced. 1he operaLors are havinq Lo run lasLer
and lasLer wiLh Lhe inLroducLion ol more mulLimedia con
LenL |usL Lo remain where Lhey are, and iL's becominq a
losinq baLLle Lo sLop overall revenues lrom lallinq," says
AlasLair Brydon ol Analysys.
1o sidesLep Lhis issue and lind a posiLive rouLe lor
ward, N11 DoCoMo and KDDl have sLarLed Lo inLroduce
new pricinq models. 1his has Laken Lhe lorm ol pricinq
bundles LhaL essenLially hide Lhe charqinq mechanism as
operaLors sLarL pricinq services by value. "1here will be
a Lime laq belore operaLors move across Lo Lhis model,
buL iL's Lhe only rouLe lorward in Lhe lonqLerm," suqqesLs
Brydon.
More dark clouds are also on Lhe horizon lor DoCoMo
and KDDl wiLh Lhe prospecL ol new enLranLs and Lhe advenL
in OcLober 2006 ol mobile number porLabiliLy (MNP).
PresenLly, consumers in Japan pay very dearly lor mobile
services compared Lo Lurope, around lour Limes more,
buL have been condiLioned Lo LoleraLe Lhis level ol pricinq.
However, Lhree new enLranLs, expecLed Lo launch someLime
in 2007, are expecLed Lo noL only compeLe on daLa services
buL will almosL cerLainly look Lo slash prices.
While DoCoMo and KDDl have Lhe size and markeLinq
capabiliLies Lo combaL Lhese Lwo LhreaLs, Lhe counLry's
Lhird operaLor, SolLbank (lormerly Vodalone Japan) is
aLLracLinq opposinq opinions.
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//JAPAN/KOREA
1he business models adopLed by mobile operaLors in
Japan and Korea have dillered markedly lrom elsewhere.
1he mosL noLable, and now widespread in oLher counLries,
is Lhe sLrucLure ol DoCoMo's imode, where mobile conLenL
providers receive a siqnilicanLly larqer proporLion ol any
operaLor revenues LhaL Lheir conLenL services qeneraLe.
1his approach has proved successlul in buildinq an eco
sysLem LhaL encouraqes conLenL developers Lo improve
Lheir services and remain compeLiLive, even Lhouqh Lhey
miqhL be workinq wiLh several operaLors. BuL wiLh over
00,000 conLenL providers Lo Lhe DoCoMo neLwork Lhere
are qrowinq quesLions as Lo Lhe wheLher Lhis lonqsLand
inq business can conLinue Lo qrow operaLors' ARPU.
Japanese operaLors, in Lhis case led by DoCoMo, are
now aLLempLinq Lo break inLo Lhe unLapped markeL ol
mobile paymenLsnoLwiLhsLandinq LhaL Luropean and
US operaLors have Lried and lailed in Lhe pasL.
1he sLraLeqy is Lo qain new sources ol revenue lrom
linancial services LhaL are noL LoLally relianL on Lhe mobile
neLwork. 1he ma|or Japanese operaLors have already
deployed handseLs wiLh inbuilL NFC readers usinq FeliCa
Lechnoloqy developed in con|uncLion wiLh Sony LhaL ena
bles luncLions associaLed wiLh Lhe 'mobile walleL' concepL.
BuL DoCoMo, closely lollowed by KDDl, is now inLendinq Lo
enLer Lhe crediL business havinq lormed close relaLionships
wiLh some ol Lhe ma|or Japanese card issuers, banks and
reLailers. 1his approach, which has many similariLies Lo Lhe
imode business model, is inLended Lo provide DoCoMo
and KDDl wiLh rouLes back inLo Lhe daily lives ol con
sumers and sLarL Lo play a larqer and more siqnilicanL
role in Lheir cusLomers' linancial arranqemenLs.
DoCoMo's iD service, which can be used by any
acLive card issuer, enables Lhe cusLomer Lo use
a reqular crediL card via Lhe FeliCaenabled handseL.
Followinq on lrom Lhis, DoCoMo has now issued iLs own
crediL card, branded DCMX, which provides subscribers
wiLh a compleLe consumer crediL service includinq a
monLhly crediL ol beLween 0,000 and 20,000 yen.
1he DCMX service was iniLially deployed in April 2006
and is available Lo DoCoMo's 3 million mobile walleL
usersalLhouqh only around Len per cenL are reporLed
Lo use Lhe walleL luncLion. Reqardless ol Lhis upLake, Lhe
direcLor ol iD lor DoCoMo's mulLimedia services deparL
menL, Manabu Moriya, claims LhaL Lhe company expecLs
DCMX Lo qeneraLe annual sales ol up Lo $860m in Lhree
years. "We reqard DCMX as our qaLeway inLo Lhe linancial
services markeL, and il Japanese consumers sLarL Lo use
crediL cards Lo a similar level Lo Lhe US, Lhen overall card
paymenLs could reach a sLaqqerinq $^30bn. 1his could
mean, assuminq Lhe LransacLion lee is around Lwo per
cenL, a revenue sLream ol $8.6bn."
ln a reacLion Lo Lhis move, KDDl has creaLed a similar eco
sysLem by lorminq a consorLium ol banks and card issuers,
includinq Lhe larqesL Japanese crediL card lirm JCB, called
Lhe Mobile PaymenL PromoLion Council.
While Lhe Japanese operaLors have aLLempLed Lo com
baL Lhis decline in voice revenues wiLh new mulLimedia
services, Lhe Korean operaLors have acLively louqhL back
wiLh new Larills. 1his has seen cuLprice bundles ol voice
minuLes LoqeLher wiLh special bonuses Lied inLo usaqe, all
supporLed by sLronq markeLinq campaiqns.
8kbesL, Lhese iniLiaLives miqhL slow Lhe decline in voice
revenues, wiLh Lhe hope LhaL daLa services lill Lhe qrowinq
qap. BuL Philip Marshall ol Yankee Croup believes LhaL Lhe
diverse ranqe ol mulLimedia services LhaL Japanese and
Korean subscribers consumesiqnilicanLly hiqher Lhan
mosL counLries in AsiaPaciliccould evenLually help.
"1he share ol mulLimedia and browserbased 'inloLainmenL'
services is qrowinq and will accounL lor almosL 50 per cenL
ol all daLa revenue in Japan and Korea by 200. CurrenLly,
however, only oneLhird ol overall daLa revenue comes lrom
mulLimedia inloLainmenL, wiLh Lhe remainder cominq lrom
consumer messaqinq or basic/enhanced daLa applicaLions
such as rinqLones and imaqe downloads," explains Marshall.
Meanwhile, onqoinq expendiLure on daLa services indicaLes
an appeLiLe lor handseL personalisaLion, wiLh rinqLones and
wallpaper accounLinq lor Lhe bulk ol revenuenoL unlike cell
phone users in Lurope. Durinq 2005, rinqLones, wallpaper
and qaminq accounLed lor 65 per cenL ol overall daLa use
in Japan and Korea, illusLraLinq LhaL Lhe more LradiLional
services conLinue Lo provide Lhe bulk ol revenues, despiLe Lhe
hiqhLech imaqe presenLed Lo Lhe ouLside world.
Marshall mainLains LhaL, alLhouqh inloLainmenL is seL Lo
increase aL an eiqhL per cenL CACR Lhrouqh 200, Lhis will noL
be enouqh Lo ollseL Lhe decline in voice revenues. "OperaLors
in boLh counLries are hopinq LhaL sophisLicaLed new devices
and enhanced daLa Lransler speeds will encouraqe Lhe upLake
ol mulLimedia applicaLions such as video, 1V and music."
While consumers in Japan and Korea are recoqnised lor
Lheir inLeresL and accepLance ol new hiLech qadqeLs, ouLsid
ers could misLakenly assume LhaL Lhese markeLs are Lechnol
oqyled, as aqainsL users beinq siqnilicanLly more inLeresLed
in mobile services. While HSDPA or CDMA2000 Rev A. are
becominq available, Lhe operaLors are promoLinq Lhe idea
ol video bloqqinq and video messaqinq as services LhaL will
aLLracL Lhe inLeresL ol consumersnoL Lhe parLicular charac
LerisLics ol each Lechnoloqy.
"1here is a lar qreaLer chance ol Lhese communiLyrelaL
ed services Lakinq oll lirsL in Japan and Korea because ol
Lhe naLure ol Lheir socieLies," claims Francis Chariq,
CLO ol 1ao, a middleware solLware devel
oper. "While lixed broadband peneLraLion
is qrowinq, boLh counLries remain mobile
daLacenLric, as aqainsL Lhe US and Lurope
which conLinue Lo be mobile voicecenLric.
1his behavioural dillerence is criLical when
reviewinq which mobile services have been
successlul in Japan or Korea and Lhe likely
chance ol Lhem beinq a winner elsewhere.
l believe operaLors should concenLraLe less
on Lhe likely LranslerabiliLy ol services as
aqainsL improvinq Lhe qualiLy ol Lheir own
ollerinqs."
OperaLors in boLh counLries recoqnised
some years aqo Lhe need lor exLensive LesLinq
ol daLa services Lo measure Lhe qualiLy ol Lhe
applicaLion and user experience. "1his hasn'L
been Lhe case ouLside ol Japan and Korea,"
says Paul Jesseman, C1O LoqicaCMC, AsiaPacilic. "ln par
Licular, DoCoMo has an aqreemenL wiLh Lhe handseL vendors
LhaL enables iL Lo have LoLal conLrol ol Lhe specilicaLion, seL
up and overall user inLerlace and experience. 1his is in sLark
conLrasL wiLh Luropean handseL vendors which are olLen
seen as beinq in compeLiLion wiLh Lhe operaLors. One in
parLicular has builL a repuLaLion ol wanLinq Lo build iLs own
brand aL Lhe expense ol iLs parLners, Lhe operaLor."
1his willinqness by boLh operaLors and handseL vendors
Lo work Lowards a common qoal has enabled Lhe launch
ol commercial mobile 1V services in Korea years ahead ol
operaLors elsewhere. By iqnorinq Lhe endless sLandardisa
Lion debaLes, Lhe Korean operaLors and handseL vendors
have pushed aheadalbeiL wiLh proprieLary Lechnoloqy.
1his buccaneerinq approach Lo mobile
Lechnoloqy is perceived by many as Lhe
Korean wireless indusLry aLLempLinq Lo
seL de lacLo sLandards by beinq lirsL, and
achievinq volume sales in iLs home mar
keL. 1he idea ol 'Korea lnc.' sLill persisLs
wiLh operaLors and wireless manulacLur
ers developinq and deployinq Lechnoloqy
aL a lrenzied pace, LoqeLher wiLh Lhe LaciL
supporL ol Lhe qovernmenL. Mobile 1V is
evidence ol Lhis drive qiven Lhe worldwide
inLeresL in Lhe service and Lhe huqe eco
nomic impacL LhaL lPR could play in Lhis
accepLance.
While boLh Japan and Korea could posi
Lion Lhemselves as seLLinq Lhe aqenda by
developinq and deployinq hiqhspeed neL
works, LoqeLher wiLh LesLinq Super 3C Lech
noloqy, Lhe alLernaLive view is somewhaL dillerenL, LhaL
Lhis rush is less Lo do wiLh wanLinq Lo be lirsL, and more Lo
do wiLh Lhe necessiLy ol carryinq more mulLimedia Lrallic
aL a lower cosL per biL.
Manaqinq Lhis balance will keep Lhe markeLinq qroups
busy in boLh counLries. How Lhey lind a rouLe Lhrouqh Lhis
complex problem will be waLched closely by oLher mobile
operaLors around Lhe world.
However, Lhe simple imiLaLion by oLher operaLors ol
whaLever soluLion is arrived aL miqhL noL be Lhe answe
1hese Lwo counLries miqhL be ahead in Lhe early
deploymenL ol services, and qained invaluable knowhow
lrom Lhis live experimenLaLionbuL Lhe quesLion remains
as Lo Lheir robusLness and abiliLy Lo aLLracL consumers.
L=6I8=6C8:;DGL^7gd4
1he SouLh Korean developers ol WiBro made much ol
SprinL's recenL announcemenL Lo deploy a $3bn WiMAX
neLwork in Lhe US. While Lhe local operaLors, Korea
1elecom (K1) and SK 1elecom, are boLh commiLLed Lo
WiBro (Korea's own version ol Lhe WiMAX 802.6b sLand
ard), Lhe decision by SprinL was seen as sLronq raLilicaLion
ol Lheir moves Lo provide lPbased services usinq WiBro.
Accordinq Lo K1, WiBro provides Lhe operaLor wiLh a
sLeppinq sLone Lo ^C, qiven LhaL Lhe Lechnoloqy includes
OFDM, MlMO and SMAR1 anLenna Lechnoloqies LhaL K1
claims will be aL Lhe hearL ol ^CnoLwiLhsLandinq LhaL
^C has noL been Lechnically specilied by any inLerna
Lional sLandards body.
"1he cellular neLworks are limiLed when iL comes Lo mul
Limedia services, and we see WiBro as Lhe qrowLh enqine
lor K1 Lo break away lrom revenue sLaqnaLion by provid
inq a Lrue mobile inLerneL service based upon lP," says Dr.
WonPyo Honq, execuLive VP, mobile inLerneL business
qroup, K1. "We believe mobile inLerneL Lrallic will qrow by
more Lhan 20 per cenL per annum in Korea, whereas voice
and lixed line daLa Lrallic are saLuraLed markeLs Loday."
K1, which has invesLed nearly $700m in WiBro,
believes Lhe Lechnoloqy will Lranslorm Lhe company's
Lelecoms capabiliLies by Lhe provision ol hiqhspeed
mobile inLerneL. "1he adopLion ol WiBro places K1 a
very compeLiLive siLuaLion and reLains iLs dominanL posi
Lion by developinq converqenL services," says Honq.
1he enLhusiasm shown by K1 lor WiBro, LoqeLher
wiLh SprinL's decision and Lhe Japanese qovernmenL's
accepLance LhaL boLh WiBro and WiMAX are poLenLial
candidaLes lor Lhe nexL qeneraLion ol wireless broad
band soluLions, does lend weiqhL Lo WiBro's possible
success.
BuL Lhis upbeaL view is noL alLoqeLher shared by
Philip Marshall ol Yankee Croup, who believes LhaL
operaLors need Lo be cauLious wiLh respecL Lo deploy
inq WiBro/WiMAX. "From a Lechnical sLandpoinL Lhe
Lechnoloqy works and Lhe Lrials have provided posiLive
resulLs, excepL lor siqnilicanLly hiqher baLLery drain on
Lhe WiBroenabled lapLops used lor LesLinq. BuL, more
imporLanLly, iL seems SK1 has realised Lhe quesLionable
economics ol WiBro in aLLempLinq Lo enLer Korea's saLu
raLed lixed broadband and low peneLraLion lapLop mar
keL. And wiLh inlrasLrucLure already in place lor HSDPA,
Lhe operaLor is showinq conservaLism Loward WiBro, as
is indicaLed by SK1 havinq only invesLed $63m in WiBro
as aqainsL $.5bn in HSDPA by Lhe end ol 2006."
WiBro will cerLainly come under markeL pressure lrom
HSPA (Hiqh Speed PackeL Access) deploymenLs, iniLially
in Lhe quise ol HSDPAenabled lapLops. AlLhouqh enqi
neers accepL LhaL HSDPA is LheoreLically less ellicienL
Lhan WiBro, iL is likely LhaL Lhe Lwo Lechnoloqies will
deliver similar bandwidLh, excepL in Lhe allimporLanL in
buildinq areas, where 3C will provide superior coveraqe.
COVER STORY//JAPAN/KOREA
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Attended by more than 1500 delegates, 160
speakers and 300 press from around the world
Mobile Focused: real business information and
practical experiences on the widest range of
mobile and wireless broadband systems, services
and strategies
Business opportunities: meet and network with
top-level business leaders, technology experts
and your peers in the region's largest wireless
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Mobility Marketplace:
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Meeting Place
Convenient central location to meet with key
customers visiting Hong Kong for the 3G World
Congress and ITU Telecom World
Well-equipped venue for hospitality events,
hosting private presentations, demonstrations,
press conferences or to serve as your
headquarters in Hong Kong
Co-located with the 11th Annual 3G World
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11th Annual
3G WORLD CONGRESS &
MOBILITY MARKETPLACE
4-7 December 2006, Hong Kong Convention & Exhibition Centre
C
onveniently
Located in
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ong Kong

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Enquiries: Please contact Geoffery Ip, gip@3Gcongress.com or call +852 2531 6188
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Organized by :
3G World Congress:
Asia's Largest Mobility
Conference
QUADPLAY//
@E@K@8C
research inLo Lhe quadplay arena
sees advocaLes and criLics in equal
abundance. BoLh sides ol Lhe debaLe have compellinq
arqumenLs reqardinq Lhe bundlinq ol all your communica
Lions and enLerLainmenL desires under one banner.
Mobile players have been casLinq a lurLive qlance aL a
converqed world lor some Lime. So lar Lhouqh iL's been
all Lalk and very liLLle acLion. Fixed mobile converqence
(FMC) has been a popular indusLry Lalkinq poinL lor years
now. For some LechnoloqisLs and markeLers iL makes
sense Lo marry lixed and mobile services on one handseL
wiLh a unilied bill.
Arquably Lhouqh Lhe MNOs sLand Lo qain liLLle lrom
FMC. Fixed Lo mobile subsLiLuLion may be slowly erodinq
whaLever advanLaqe wireline has in voice. So why boLher
wiLh FMC? lL's an awlul loL ol Lrouble Lo qo lor in reLurn lor
a small chanqe in lilesLyle or cosL Lo Lhe end user, so iL's
hardly surprisinq LhaL mosL homes sLill have a lixed line,
and Lhe people livinq in Lhem are all carryinq a mobile.
1he Lalk surroundinq quadplay bears more Lhan a pass
inq resemblance Lo Lhe Lalk LhaL backed up FMC. 1he
deLracLors say quadplay is FMC on sLeroids, Lhe lans say
FMC is sLill qoinq Lo happen, converqence is evoluLion and
quadplay should be embraced.
"l Lhink you've qoL Lo qeL Lhrouqh Lhe mire ol wheLher
Lhe markeL is pullinq Lhese services or wheLher Lhe ven
dors are pushinq Lhem ouL inLo Lhe neLwork. l Lhink LhaL is
noL enLirely clear in Lhe biq picLure," says lan Price, cable
Lriple play soluLions leader LMLA, NorLel, addinq: "l Lhink
Lhere is a clear pull lor Lhis sorL ol capabiliLy and we've
seen markeL research ol our own LhaL suqqesLs LhaL Lhe
end user would acLively chanqe providers il he could be
qiven a coherenL service which would work on a sinqle
number basis across his home, ollice, and nomadic acLivi
Lies and LhaL qives him conLrol Lo recoqnise Lhe Lype ol
call LhaL was incominq or Lo say on whaL basis Lhe call was
beinq made."
ln Lhe UK, B1's 'Fusion' and 'Home Hub' purporL Lo
do exacLly Lhis, however, upLake remains aL besL, slow.
"Fair commenL," says Price, "buL Lhese are early imple
menLaLions and Lhey are noL seamless by any means. As
neLwork converqence evolves lurLher and Lhey become
slicker and more consisLenL in Lheir approach, people will
sLarL Lo Lake Lhose services on. All ol Lhese Lhinqs are
qoinq Lo be slow, because none ol Lhem are parLicularly
sophisLicaLed now."
Richard Brandon, vice presidenL ol worldwide lield mar
keLinq, Juniper Research says, "l don'L see quadplay and
FMC as sequenLial. l Lhink Lhey're probably Lhinqs LhaL are
happeninq simulLaneously. 1here is a lixed mobile conver
qence Lrend, buL LhaL's noL a ma|or driver now lor capiLal
invesLmenL in iLsell. BuL aL Lhe same Lime, Lhese quys are
preparinq lor Lhe oLher Lypes ol operaLor Lo come inLo
Lheir markeL," he added: "1he move Lo quadplay is noL aL
all delensive. 1he dillerenL markeL seqmenLs have qoL dil
lerenL drivers."
Accordinq Lo Brandon quadplay is abouL more Lhan a
bundlinq ol services: "WiLh Lhe lirsL implemenLaLion ol
radio, broadcasLers would siL and read Lhinqs ouL. 1hey
liqured ouL LhaL oLher Lhinqs could be done laLer. WiLh Lhe
lirsL implemenLaLion ol 1V, people saL in lronL ol a cam
era and did radio shows. lL's only someLime laLer LhaL you
realise whaL Lhe services are qood lor. l Lhink LhaL will be
Lhe same lor Lhese [quadplay| services."
Developinq Lechnoloqy wiLhouL knowinq exacLly why
is always a risky business. Risk is someLhinq LhaL Lhe
MNOs have learned Lo deal wiLh over Lime. Lmerqinq lrom
nowhere and expandinq rapidly, Lhey appeared Lo have Lhe
Midas 1ouch. AlLer SMS Lhouqh, Lhe carriers had Lheir lin
qers burnL by a ranqe ol lailed services and disappoinLinq
Lechnoloqies. lL's lair Lo say, lor all Lhe Lalk ol mobile 1V
and Lhe mobile inLerneL aL Lhe momenL, Lhe MNOs have a
disLincLly conservaLive approach Lo Lhe new and Lhe bold.
One man who warns aqainsL Lhe 'build in hope' sLraL
eqy is Cuy Zibi, an analysL wiLh research lirm, Pyramid
Croup and Lhe auLhor ol 1he Ouadruple Play Fallacy.
"lL's Louqh Lo be comlorLable wiLh LhaL Lype ol premise
lrom a business sLandpoinL. Could be a recipe lor wasL
inq money. A beLLer way Lo puL iL may be LhaL carriers
will need Lo Lry dillerenL Lhinqs, because ol Lhe limiLed
visibiliLy on whaL Lhe nexL successlul applicaLion is qoinq
Lo be. Somebody will have Lo sLumble on iL. So Lhey need
plaLlorms LhaL allow Lhem Lo Lry Lhinqs in a cosL ellicienL
manner, LhaL is worLh invesLinq in buL invesLinq millions
in quadplay |usL in case iL miqhL work doesn'L appear
overly sensible."
FOURS A CROWD
M&A ACTIVITY IN THE MARKET SHOWS THAT
PROVIDERS OF PAY TV, BROADBAND, MOBILE AND
FIXED TELEPHONY BELIEVE THAT THE FUTURE
LIES IN BEING ABLE TO OFFER ALL FOUR SERV-
ICES ON ONE BILL. IS THIS ANOTHER VENDOR-LED
HYPE CYCLE OR ARE THE DAYS OF THE PURE PLAY
OPERATOR RUNNING DOWN?
//By Sean Jackson//
F OR U M S E R I E S
2 0 0 6
Produced by:
www.informatm.com/whfusa
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Pre-Conference Workshop
Setting the Agenda: Strategies for End-to-End Handset Development
23rd October 2006
Led by: ANITE TELECOMS
The Definitive Event for the Handset Industry
LEARN - NETWORK - PARTNER
24 - 26 October 2006 - Hilton San Diego, San Diego, USA
In depth program on the issues that matter:
> Understand Key Strategy & Business Models: Carrier,
Distributor, MVNO, OEM, CDM
> Optimize User Experience through innovative User Interface,
Handset Design and Customization
> Debate the Future for Software & Chipsets
> Innovate in Device Technology: Fixed Mobile Convergence,
Presence, Multimedia Integration, Mobile TV
Structured networking opportunities - before,
during and after the conference:
> Key Decision Makers: Over 70% Board Level & Director
attendance at last year's event
Plus Separately Bookable Seminar Day -
> Delivering the Right Devices for The Optimum Mobile
TV & Video Experience
Sponsored by:
9th Event in the International
Christy Wyatt, Vice President, Ecosystem & Market
Development, Mobile Devices, MOTOROLA
David Owens, Vice President of Marketing, Strategic
Markets, SPRINT NEXTEL
Yoram Solomon, President, Mobile DTV Alliance
and Director of Strategic Marketing and Industry
Relations, Mobile Connectivity Solutions, TEXAS
INSTRUMENTS
Jim Anetsberger, Director, Device Management,
US CELLULAR
Juha Lipiainen, Vice President, Mobile DTV Alliance;
Director, Business Strategy & Development, NOKIA
Oliver Gunasekara, Vice President of Corporate
Business Development, ARM
Kevin Goulet, Director, Product Management,
Enterprise Mobility Solutions, MOTOROLA
Kari Lehtinen, Vice President, Handsets, MODEO
Lance Cornish, Head of Marketing & Business
Development, ZTE
Learn from Leading Speakers: Experience
from the Entire Handset Value Chain
For further details contact Kate Lewis at kate.lewis@informa.com
quoting reference WHFUSA01 or call the Registration Hotline on +44 (0)20 7017 5506
//QUADPLAY
ln 1he Ouadruple Play Fallacy, Zibi
arques LhaL il quadplay lollows Lhe
same paLLern as some Lriple play pack
aqes, where carriers seek Lo push
some unappealinq services by hidinq
Lhem in a bundle, iL's unlikely Lo work.
1he main beneliL lor an operaLor oller
inq lour seLs ol services is Lhe abiliLy
Lo oller opLions Lo Lhe cusLomer based
on whaLever works lor himiL's preLLy
sLraiqhLlorward sLull.
"lL's Lhe abiliLy Lo mix and maLch,"
says Zibi. "ll Lhe user wanLs one, Lwo,
Lhree or lour services lrom Lhe carrier,
Lhey can qeL Lhose and mix any ol Lhem
as necessary. BuL lour services are noL
lorced on Lhe user, because noL every
body will be aLLracLed by LhaL Lype ol
bundle."
1his doesn'L sound much like a lully
converqed luLure. NorLel's lan Price
coins Lhe phrase Lo describe Lhe abiliLy Lo oller dillerenL
disparaLe bundles as 'quadplayliLe'. "RiqhL now a loL ol Lhe
sysLems and implemenLaLions are dealL wiLh by lorward
inq Lhe calls lrom one parL ol Lhe neLwork Lo anoLher
raLher Lhan Lhe inLelliqenL recoqniLion ol a call LhaL is
cominq inLo Lhe neLwork LhaL says, 'where is Lhe acLive
device and whaL parL ol Lhe neLwork is iL on?', Lhen deliv
erinq LhaL call direcLly inLo LhaL parL ol Lhe neLwork. 1here
is LhaL LiqhLer linkinq ol Lhe service and Lhe numberinq
capabiliLies and Lhe delivery which will make Lhe whole
Lhinq a loL more seamless and a loL more aLLracLive Lo
Lhe end user, so LhaL Lhe 'liLe' sysLems Lend Lo be on a call
lorwardinq Lype basis, so Lhe lully inLeqraLed sysLems use
Lhe inLelliqence aL Lhe core ol Lhe neLwork Lo idenLily Lhe
correcL poinL ol delivery."
1he abiliLy Lo oller bundles is obviously very aLLracLive
Lo operaLors, parLicularly Lhose in saLuraLed markeLs. ln
shorL, bundles reduce churn.
Ar|anq Zadeh, qlobal manaqinq parLner, neLwork serv
ices line aL AccenLure's CommunicaLions and Hiqh 1ech
pracLice, conLends LhaL quadplay bundles work Lhanks Lo
value raLher Lhan luncLion: "Cenerally speakinq innova
Lion in Lerms ol value proposiLion is creaLinq new price
packaqes. lL is a markeLinq exercise and LhaL is siqnilicanL
ly easier lrom a cosL ol implemenLaLion Lo achieve Lhan
innovaLion in Lerms ol luncLionaliLy," says Zadeh.
Accordinq Lo Zadeh, bundles oller Lhe supplier llexibil
iLy in creaLinq new value proposiLions, which in Lurn help
aLLracL and reLain cusLomers. "1he power ol Lhe bundle is
someLhinq LhaL mosL service providers need Lo locus on
when Lhey are qoinq lrom any seL ol services Lo addinq
any new services," he says.
"When l see people LhaL have no experience ol video or
mobile suddenly wanL Lo qo Lo a new service and wanL Lo
innovaLe in Lerms ol value proposiLion as well as luncLion
aliLy aL Lhe same Lime, l haLe iL," warns Zadeh, addinq: "lL
is a recipe lor disasLer, Lhey will spend a loL ol money, you
can alienaLe Lhe hell ouL ol your cusLomer base and shooL
yoursell in Lhe looL in Lerms ol business."
MoLorola's markeLinq direcLor lor connecLed home solu
Lions LMLA, Karl LllioL, Lhinks quadplay
is abouL more Lhan price: "Ouadplay
can be a markeLinq Lool. A loL ol whaL
l've seen in Lhe UK is abouL Lhe pricinq
ol Lhe service. BuL our markeL research
has revealed LhaL as consumers people
are inLeresLed in speed and qualiLy ol
services."
Zadeh concurs LhaL qualiLy is a ma|or
issue. "ll an elemenL ol your bundle is
noL Lhe same qualiLy as Lhe resL ol your
packaqe, reqardless ol how inLeqraLed
iL is, Lhen you have up Lo 60 per cenL
more chance LhaL cusLomer will churn
lrom Lhe whole bundle. So every Lime
you add a bundle you add risk."
Juniper's Brandon also has a word
ol warninq reqardinq qualiLy ol service
cominq lrom Lhe broadband world.
"1he way broadband was markeLed
Lhere was a promise LhaL iL would sup
porL video and qo aL speeds ol one, Lwo, Lhree or lour
MbiLs/s. 1he neLwork assumes you're Lypinq inLo a key
board and downloadinq Lhe odd lile, so behind Lhe access
line Lhere is noLhinq like Lhe capaciLy Lo cope wiLh people
waLchinq 1V."
ll you are qoinq Lo visibly aliqn Lhe bundles Lhere is less
chance LhaL Lhe cusLomer will churn, buL il you loul up on
one ol Lhe elemenLs and have poor qualiLy, bad service
or poor pricinq Lhe cusLomer will chanqe lrom every ele
menL.
Fe\man who remains unconvinced by Lhe value ol quad
play as a cusLomer is VincenL Morin, direcLor ol sysLems,
Ciena. Speakinq lrom personal experience as a France
1elecom cusLomer, his bills have chanqed loqo more
Limes Lhan he cares Lo remember. WheLher he's a France
1elecom, Wanadoo or Oranqe cusLomer aL Lhe Lime seems
irrelevanL, he sLill qeLs separaLe bills and his conLracLs
haven'L chanqed. MulLiplay lor him, as iL sLands, seems
like a markeLinq exercise.
Morin does see Lhe value in a sinqle converqed device
buL sLaLes who he is probably amonq Lhe Lop 0. per cenL
ol early adopLers LhaL would appreciaLe Lhe innovaLion.
1he vasL ma|oriLy ol people are more aLLracLed by Lhe
idea ol a sinqle billwhich lor Morin is simply noL an issue
worLh worryinq abouL. 1he ma|or advanLaqe quadplay has
Lo oller is Lo Lhe operaLor, he says.
"Frankly speakinq, l have yeL Lo be convinced by Lhe
compleLe value ol quadplay as a cusLomer. From a Lechni
cal perspecLive l do see a huqe beneliL lor Lhe operaLor. l
do see how iL can qeL Lo an opLimum neLwork desiqn lor
opLimum neLwork services. BuL l am yeL Lo see a clear
beneliL lor Lhe end user. So lor me quadplay is luncLional,
iL will help operaLors predicL Lheir capex and opex which
is someLhinq LhaL LhaL used Lo be a niqhLmare lor wireless
operaLors," says Morin.
So lor Morin Lhe quadplayliLe vision may be easy Lo
implemenL, buL iL remains a lairly poinLless exercise. Far
beLLer Lo lorqe ahead Lowards converqence, buL as we've
seen, LhaL is easier said Lhan done.
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QUADPLAY//
ln Lhe voice world, consumers are
compleLely lamiliar wiLh sLarLinq a
call on one neLwork and iL LerminaL
inq on anoLher. However, LhaL has
never really been lollowed Lhrouqh
in Lhe daLa world, which remains a
besL ellorL environmenL. So while
daLa can be handed lrom one opera
Lor Lo anoLher Lhere is no easy way
Lo hand iL oll wiLh an aqreed com
mercial lramework. So we can'L be
sure who is qoinq Lo be paid lor
whaL.
AlLhouqh, Juniper's Brandon says
Lhe commercial lramework is anoLher
parL ol Lhe puzzle some people are
workinq on, he poinLs Lo indusLry
body, lP Sphere which is wresLlinq
wiLh Lhis very problem. "How do l
as an operaLor publish whaL l wanL
Lo deliver on an auLomaLed basis so
oLher operaLors can send me Lrallic?
And mosL imporLanLly, how can l bill
Lhem lor iL and how can l bill end users
lor iL? 1his is one ol Lhe biq lorqoLLen
areas ol makinq Lhis sLull work."
Fe\oLher area LhaL has been
neaLly sidesLepped so lar is
Lhe issue ol handseL avail
abiliLy. For some, iL is a case
ol build Lhe neLwork and
Lhe handseLs will lollow. BuL
Lhere is a Lechnoloqy/service
CaLch 22 aL play here. Dualmode
handseLs are lew and lar beLween lor
a reason. 1he ma|oriLy ol consumers
are so used Lo qeLLinq a handseL lree
Lhanks Lo massive subsidies as parL ol
Lheir conLracL LhaL Lhey'd baulk aL cosL
ol buyinq a dual mode handseL. Why
should operaLors subsidise a Lechnol
oqy LhaL will Lake people away lrom
Lheir neLworks?
"1here are a number ol dualmode
handseLs cominq Lhrouqh riqhL now buL
l Lhink iL's chicken and eqqLhey'll
develop more and Lhe prices will
come down as Lhe service becomes
more popular," arques NorLel's Price.
"3C lor me is anoLher example ol
LhaL, Lhe prices aren'L yeL down aL Lhe
levels where Lhe people lind Lhe services
aLLracLive. So LhaL is in Lhe early parL ol Lhe
lilecycle in Lerms ol qeLLinq Lhe services Lo
markeL, qeLLinq Lhe word ol mouLh around
LhaL says how cool Lhis is and qeLLinq Lhe
user communiLies builL in and sLarL
inq Lo demand Lhese and pull Lhem
Lhrouqh. Once LhaL happens all Lhe
usual culpriLs will sLarL Lo produce
more handseLs aL prices LhaL people
are prepared Lo pay lor."
Pickinq a winner in Lhe quadplay
arena is a Lricky business. MosL
people will be publicly backinq
Lhemselves Lo come ouL on Lop buL
behind Lhe scenes some will be more
conlidenL Lhan oLhers. On Lhe vendor
side inlrasLrucLure suppliers will be
early winners, closely lollowed by
inLeqraLion specialisLs. Ouadplay
may well also acL as a caLalysL lor
lMS (and vice versa). Consumers
Loo sLand Lo qain lrom cheaper bills
and more inLeresLinq services. MosL
analysLs seem Lo Lhink Lhe cable
companies and broadband providers
will come ouL on Lop. 1he bad news
lor cellular operaLors is no
one is really backinq Lhem Lo
lead lrom Lhe lronL on Lhis.
ln lacL, iL's lookinq increas
inqly as Lhouqh mobiliLy
will be reLroliLLed onLo Lhe
quadplay.
BuL operaLors should noL
undervalue whaL Lhey have Lo
oller noLes Juniper's Brandon.
"UlLimaLely, Lhe MNOs are liber
aLed by havinq a radio inLerlace and
access Lo Lhe neLwork buL in some
ways iL is also consLraininq when you
Lhink abouL hiqh bandwidLh services.
Maybe Lhe nexL phase ol Lhis baLLle is
how do you inLeqraLe mobile services
and qive Lhinqs like presence inlor
maLion which is one area where
MNOs can be really sLronq."
1here's a popular sandwich spread
in Lhe UK LhaL carries Lhe risky buL
caLchy markeLinq phrase: "You
eiLher love iL or haLe iL." lL's
Lrue LhaL Lhis caLchphrase
could be applied easily Lo
quadplay. NorLel's lan Price
puLs iL Lhus: "1here are a wide
varieLy ol opinions ouL Lhere
as Lo whaL Lhe real value ol a
Lrue quadplay is and how much
any ol Lhese elemenLs each qroup
or markeL seqmenL miqhL need. l
don'L Lhink anyone necessarily haLes
iL buL Lhere are a wide ranqe ol
requiremenLs ouL Lhere."
As wiLh Lhe sandwich spread,
lovinq or haLinq quadplay is larqely
irrelevanL and neiLher side is wronq.
Ouadplay is in Lhe markeL and iL
will be a runaway success in some
quarLers, buL an absoluLe llop in
oLhers.
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Learn from the Key Players in the Asian SDP Market
www.informatm.com/sdpasia
7-8 November 2006
Marriott Hotel,
Singapore
Why Attend this Key SDP event for the
Asian Market?
Understand how the SDP can play a key part
in operators strategies
Determine the influence of IMS on SDP
architecture implementations
Evaluate the benefits of using the SDP
to integrate and manage third-parties
Learn how to align service delivery models
to compete effectively in a converged market
Examine issues of network security and
access control in the SDP
Discuss the business cases driving the SDP
Supporting Sponsor
Pre-Conference Workshop 6th November 2006
Integrating IMS into the Existing
Service Creation and Service Delivery
Environments
Led by HP
Post-Conference Workshop 9th November 2006
SOA: The Unifying Architecture for Telecom
Led by BEA Systems
8
O
p
e
r
a
t
o
r

C
a
s
e

S
t
u
d
i
e
s
Learn from the Key Players in
the Asian SDP Market
Starhub, Singapore
AIS, Thailand
SingTel Optus, Australia
In-Fusio, Asia
Globe Telecom, Philippines
Maxis Communications, Malaysia
SK TelecomKorea
Baker & Mackenzie Wong & Leow, Singapore
Enhancing the Management and Delivery of Content and VAS in an
Evolving Mobile Environment
For further details contact Kate Lewis at
kate.lewis@informa.com quoting reference SDPA01 or call the
Registration Hotline on +44 (0)20 7017 5506
Produced by:
3G GETS CHEAP, NOT FREE
FOLLOWING THE GSMAS ANNOUNCEMENT OF ITS 3G FOR ALL
PROGRAMME IN JUNE THIS YEAR, IT LOOKS LIKE THE COST OF MULTIMEDIA
HANDSETS MIGHT FINALLY DROP INTO THE REALMS OF THE REASONABLE.
&&9p8c\oXe[\i?Xiifn\cc&&
//HANDSETS
www.telecoms.com: the first choice for data-led analysis and independent comment//mobile communications international 43
J@O
years on, 3C remains a synonym lor disappoinL
menL. ln pracLically all markeLs (wiLh Lhe cliche
excepLions ol Japan and SouLh Korea), upLake is low and
miqraLion lrom 2.5C Lo 3C pracLically nonexisLenL. 1he
vasL bulk ol daLa revenue is sLill SMS, lollowed disLanLly
by push email Lrallic on 2.5C daLa neLworks. ln Lhe UK, 3
succeeded in makinq some proqress by Lhe raLher ironic
expedienL ol slashinq iLs voice LarillUM1S as cheap pre
pay LalkLime.
WhaL can shake Lhis sLaqnanL scene up? 1here has been
plenLy ol killerapp hunLinq over Lhe years, wiLh no siqn
LhaL we are any closer Lo caLchinq one Lhan we were in
Lhe picLuremessaqinq lools' paradise ol 999. As lar as is
known, Lhe besL way Lo boosL qeneric daLa Lrallic is Lo oller
unresLricLed inLerneL access, which poses Lhe lurLher prob
lem ol how Lo converL Lhe qeneric daLa Lrallic inLo daLa
revenue. Many oLher soluLions lounder aL Lhe sLaqe ol how
Lhe devices and Lhe users inLeracL wiLh Lhe service.
BuL il Lhere's one surelire way Lo increase Lhe demand
lor someLhinq, iL's lower prices. WhaLever Lhe price ol Lhe
service, you can'L use iL wiLhouL Lhe handseL. 3C phones,
whaLever Lheir place in Lhe CSM/CDMA wars ol reliqion,
have so lar been pricey. 1his laces Lhe operaLor wiLh a
choice beLween leLLinq Lhe hiqh uplronL cosL ol Lhe qadqeLs
puL oll subscribers, or disquisinq iL wiLh handseL subsidies
LhaL only make iL harder Lo Lurn a proliL on Lhe deal.
ll Lhe phones were Lo become cheaper, iL would all be
much simpler. lL would also be nice il Lhey could have
lonqer baLLery lile and beLLer looks, and iL Lurns ouL LhaL
Lhe problems are noL unrelaLed.
FirsL, some scale. lnlorma 1elecoms & Media senior ana
lysL David McOueen lorecasLs LhaL 3C phone shipmenLs
will acceleraLe sharply durinq 2007, boosLed by Lhe price
ol a Lypical qadqeL passinq Lhe $00 mark. AL Lhe same
Lime, a Lypical elecLronics indusLry paLLern will asserL iLsell,
where raLher Lhan prices lallinq as Moore's law operaLes,
Lhey raLher remain consLanL wiLh increasinq perlormance.
For example, even as Lhe cosL ol WCDMA dives below
$00, HSDPA CaLeqory 2 will beqin Lo edqe inLo Lhe mass
markeL. MoLorola's laLesL series ol RAZRs include Lhe hiqh
speed radio Lechnoloqy, and Lhey are aimed squarely aL Lhe
midmarkeL.
1he lirsL HSDPA shipmenLs have been daLa cards, as is
normal, and so will Lhe lirsL HSUPA ones in Lheir Lurn. BuL,
says McOueen, as Lhe HSDPA solLware miqraLes inLo Lhe
midmarkeL, Lhe oriqinal WCDMA will beqin Lo approach
Lhe sorL ol pricinq associaLed wiLh Lhe CSM AssociaLion's
Lmerqinq MarkeL HandseL pro|ecL. "RaLher Lhan conver
qence, iL's seqmenLaLion, wiLh some secLors converqinq
and oLhers diverqinq," he says.
As menLioned above, Lhere is Lalk ol a CSMA conLracL
lor a supercheap 3C phone similar Lo Lhe sub$30 CSM
devices produced by MoLorola lasL year beinq in Lhe
ollinq. However, Lhe laLesL indicaLions suqqesL iL may
noL even be necessary Lo do such a Lhinq. WiLhin Lhe
lasL year, accordinq Lo VP markeLinq aL chipmaker SiCL
LlecLronics, John Brewer, "we've deliniLely seen Lhe RF
physical layer qo below $0, and iL'll qo below $5lrom
here iL's incremenLal."
"We've sLill been learninq how Lo implemenL Lhese cir
cuiLs over Lhe lasL lew years," he says,
"buL Lhere's no real reason lrom Lhe semiconducLor and
siqnalprocessinq anqle why wideband CDMA should be
any more expensive Lhan CSM." lndeed, some manulac
Lurers have lound iL raLher more dilliculL Lo produce laLe
model CSM radios wiLh LDCL luncLionaliLy Lhan Lhey did
WCDMA ones. 1he upshoL is, noL surprisinqly, a dramaLic
lall in Lhe Lypical handseL bill ol maLerials. "Probably
BOM ol sub$20," suqqesLs Brewer when asked Lo qive
a liqure lor Lhe nexL year. "A lew years aqo, you'd have
been mad Lo suqqesL we'd see a sub$ Lransceiver."
1echnoloqically, Lhe chanqes LhaL underlie Lhis phenom
enon are noL limiLed Lo simple iLeraLions ol Moore's law.
RaLher Lhan simply squeezinq more sLull onLo smaller
dies, Lhere are inLeresLinq Lhinqs qoinq on in Lhe desiqn ol
boLh circuiLs and chipseLs. "lL's a combinaLion ol proqress
in semiconducLor labbinq and packaqinq," says Brewer.
"As Lhe die qeLs smaller, you have Lo work harder Lo man
aqe heaL, and chanqe how you inLerconnecL componenLs
wiLhin Lhe packaqeiL's nonLrivial Lechnoloqy."
@kjnoL |usL Lhe RF layer, Lhouqh. Proqress on oLher com
ponenLs is drivinq down prices. "lL's memory, screen and
baLLery," says McOueen. Brewer aqrees: "1he mosL amaz
inq parL is Lhe way baLLery and display componenLs have
been lallinq." 1his aqainsL a backqround ol resurqenL
inllaLion in Lhe economy as a whole. BaLLeries, Lhouqh,
raise an inLeresLinq poinL. Poor baLLery lile was a sLand
ard beel lor users ol early 3C devices, and baLLery Lech
noloqy remains one ol Lhe indusLry's problem children. ll
Lhe price per waLL drops dramaLically, Lhis problem qeLs
a loL less serious, and il Lhe resL ol Lhe sysLem is more
closely inLeqraLed and Lherelore saves space, Lhen Lhe
consequences lor Lhe device's looks are easier Lo hide.
1hese are all problems LhaL bear more sLronqly on 3C
qadqeLs Lhan oLhers, so Lheir soluLion will beneliL 3C dis
proporLionaLely.
1here are also some exoLic Lechnoloqies LhaL are
already beinq brouqhL Lo bear on Lhe problem. Wouldn'L
iL be qreaL il displays could be run oll a prinLer? Up Lo a
poinL Lhey can, and Lhere is a lively developmenL com
muniLy workinq on socalled 3D prinLinq.
Pelikon, a company based in Wales, is
usinq prinLinq Lechniques Lo produce small
displays lor purposes such as sLaLus moni
Lorinq and Lhe user inLerlace. lLs manaq
inq direcLor, Mike Powell, says LhaL, "we
believe LhaL in Lhe luLure, all displays will
be prinLed. No currenL prinL Lechnoloqy
is compeLenL Lo produce hiqhresoluLion
LCDs yeL, so we asked Lhe quesLion Lhe
oLher way round, and specialised in sLaLus
moniLorinq and daLa enLry.
"1here's a boaLload ol Lechnoloqy
involved, buL once solved, Lhe operaLinq
and capiLal cosLs are Lhose ol screen prinL
inq." Asked lor a specilic liqure, Powell
said LhaL, "we're providinq leaLures you
can'L qeL by oLher means, so Lhere's a pre
mium, buL iL's sLill around $2."
AnoLher lacLor is LhaL allpurpose
business news sLaple, Lhe developmenL
ol China. lL's noL yeL so much Chinese manulacLurinq,
Lhouqh, LhaL is inlluencinq Lhe developmenL ol cheap
3C. ln lacL, iL's demand lrom Chinese neLwork operaLors
LhaL is more likely Lo chanqe Lhe qame. "As neLworks in
China come on line," says Brewer, "and Lhe vasL popula
Lion Lakes up mobile communicaLions, we expecL sales
ol 00 million uniLs in lowcosL handseLs by 2009 ouL ol
a LoLal markeL ol . billion devices." 1here are ol course
some crucial risk lacLors LhaL miqhL yeL queer Lhe piLch.
Perhaps Lhe mosL imporLanL is Lhe decision as Lo how Lhe
lorLhcominq licences spliL beLween Lhe Chinese home
qrown 3C sLandard (1DSCDMA) and UM1S.
1he laLLer is approachinq Lhe sLaLus ol maLure Lechnol
oqy, wiLh volume rapidly risinq and marqinal cosL lallinq
sharply, whereas Lhe lormer is very much in a pioneer
inq sLaqe. 1here is currenLly only one handseL in exisL
ence, made by DaLanq Mobile. Like all 1DSCDMA devices
lor Lhe loreseeable luLure, iL is based on US chipmaker
Analoq Devices' SolLFone LCR radio and modem chipseL
perhaps noL whaL Lhe Chinese MinisLry ol Lhe lnlormaLion
lndusLry inLended by compellinq Lhe carriers Lo supporL
iL. lL cannoL realisLically be expecLed LhaL 1DSCDMA kiL
will reach Lhe prices now appearinq lor UM1S silicon lor
several years, even assuminq cheap manulacLurinq in
China. "1here are a number ol Chinese companies devel
opinq 3C, buL l'm noL sure il Lhey've qoL silicon yeL," says
David Mc1ernan, markeLinq direcLor ol BriLish chip desiqn
ers 11PCom, which was recenLly acquired by MoLorola.
"1haL's il 1DSCDMA ever sees Lhe liqhL ol day."
ManulacLurinq in China is noL someLhinq which can
be assumed LhaL easily, iL Lurns ouL. "While mosL ol Lhe
recoqnisable names are in Japan, SouLh Korea developed
some very impressive capabiliLies in 9982000, and
China has bequn Lo do so lrom 2003," says Brewer. "1he
enqineerinq skillseLs in SouLh Korea, 1aiwan and China
have expanded enormously." lL seems, Lhouqh, LhaL lor
Lhe Lime beinq Lhe bulk ol manulacLurinq will be qoinq on
in whaL miqhL be Lermed LradiLional Asian markeLs.
David Mc1ernan aqrees. "AL Lhe momenL, Lhey haven'L
qoL Lhe semiconducLor manulacLurinq Lechnoloqy Lo be
really compeLiLive. 1hey're abouL a qenera
Lion behind Lhe resL ol Lhe Asian Lierones,
and anoLher qeneraLion behind 1l, lnLel,
lnlineon eL al," he says. "l would expecL Lhe
lirsL silicon by 2008."
Ol course, semiconducLor producLion is
only parL ol Lhe sLory. One problem LhaL
could sLill sink Lhe enLire pro|ecL is Lhe
LorLuous inLellecLual properLy posiLion
in WCDMA Lechnoloqy. Says Mc1ernan:
"1here's a lairly siqnilicanL Lax on hand
seLs. lL's very dillerenL Lo whaL happened
in CSM, where Lhere was a paLenL pool."
1his year's round ol LiLlorLaL lawsuiLs
beLween Oualcomm, various Luropean ven
dors, and Lhe Luropean Commission looks
likely Lo be decisive lor Lhe cosL ol 3C.
1he obvious inlerence is LhaL Oualcomm's
nearmonopoly on Lhe sLandard is keep
inq Lhe price ol handseLs up, which reacLs
on exacLly how 3C phones are perceived.
HANDSETS//
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ll iL is sLill a premium producL, Lhere is
headroom in Lhe price lor all parLies Lo be
saLislied, buL il iL's a lowcosL producL, Lhis
is more dilliculL.
"lL's exacLly Lhe same problem as we
had wiLh Lhe lirsL CSMA pro|ecL," says
Mc1ernan. "WhaL is low cosL? ll all you
wanL is a voiceonly low cosL 3C phone,
Lhen Lhere is a loL you can squeeze ouL
ol Lhe base band." BuL one ol Lhe main
reasons lor supporLinq lowcosL 3C is Lo
deliver inLerneL access Lo underserved
communiLies, on Lhe oLher hand, Lhouqh,
Lhese are exacLly Lhe people leasL likely Lo
have 3C coveraqe.
"1he LarqeL is more likely Lo be Lhe
developed world," says Mc1ernan, on Lhe
qrounds LhaL Lhis is where Lhe operaLors
have invesLed heavily in UM1S and need
Lo lill Lheir neLworks. 1his implies less
locus on daLa, because Lhese markeLs have
robusL lixedline and cable inlrasLrucLure.
"1he operaLors wouldn'L aqree, Lhouqh,"
says Mc1ernan, "and people have been
educaLed Lo expecL all kinds ol oLher lea
Lures on Lheir phones."
Powell, lor his parL, is undersLandably
keen Lo keep iL LhaL way. "3C is qood lor
usall Lhese devices have loLs ol leaLures
Lo inLeracL wiLh. AnyLhinq LhaL increases
complexiLy is qood lor us," he says. 1he
operaLors, Lhen, and a considerable lrac
Lion ol Lhe vendors, wanL a lowcosL 3C
phone LhaL ollers Lhe sorL ol leaLures on
hiqhend qadqeLs aL less cosL. However,
Lhe example ol Lhe CSMA Lmerqinq MarkeL
HandseL pro|ecL leads Lowards a sLripped
down, voice only deviceand whaL is Lhe
poinL? CSM and lowcosL phones already
cover Lhis raLher well.
LgLo a poinL, cheaper phones aL leasL cuL
Lhe bill lor handseL subsidies. More inLer
esLinqly, Lhey also make iL possible Lo dil
luse Lhe upLake ol 3C services more wide
ly. 1ake, lor example, Lhe MoLorola RAZR
series ol phones. lniLially very lashionable,
Lhe devices rapidly became massmarkeL,
and are now very common. 1he laLesL line
ol RAZRs includes one equipped noL |usL
lor 3C buL lor HSDPA, which MCl recenLly
had Lhe opporLuniLy Lo LesL.
BriLish 3C operaLor 3 UK, a HuLchison
division, has been concerned lor some
Lime abouL reducinq iLs pricesdespiLe
beinq Lhe lirsL 3C operaLor Lo markeL,
iL puL siqnilicanL invesLmenL inLo oller
inq a lowcosL voice service whilsL also
developinq a Lelecomsasmedia sLraLeqy.
WiLh HSDPA arrivinq on iLs neLwork Lhis
auLumn, Lhe new RAZR is likely Lo be a key
iLem in iLs ChrisLmas markeLinq campaiqn.
Usinq 3's quasi1V, music and video down
load services lrom Lhe device was reason
ably painless, alLhouqh anyLhinq involvinq
userspecilied luncLions (such as email or
anyLhinq web) would probably have been
more Lryinq.
lL's becominq increasinqly clear LhaL
pursuinq hiqhspendinq early adopLers is
a limiLinq sLraLeqy, and also LhaL Lhey are
Lhe lasL people who will buy valueadded
daLa services. ln lacL, Lhe people who will
buy (or aL leasL whose employers will buy)
expensive smarLphone/PDAs are also Lhe
mosL likely Lo conline Lheir daLa usaqe
Lo open web access, SM1P/POP email
and Lhe like, noL Lo menLion beinq Lhe
mosL likely Lo keep Lheir daLa Lrallic oll
Lhe cellular neLwork by usinq WLAN. 1he
valueadded mulLimedia producLs pushed
heavily by 3C operaLors are more likely
Lo sell Lo Lhe youLh markeL, who are less
likely Lo allord lancy phones and more
likely Lo be consumers ol handseL subsidy.
A line paradoxLhe proliLable producLs
are more likely Lo sell Lo Lhose who cannoL
allord Lhem.
Cheaper phones are a key lacLor in qeL
Linq around Lhis paradox, and even wiLhouL
anoLher miniManhaLLan Pro|ecL, Lhey
are cominq. ln lacL, an LMHlike drive Lo
develop supercheap 3C phones may acLu
ally hold Lhis back due Lo Lhe problems ol
delininq exacLly whaL a lowcosL 3C phone
should be. Beyond Lhe saLuraLed markeLs
ol Lurope and developed Asia, meanwhile,
even il Lhe cosLs ol Lhe handseLs come
down, Lhis will be nowhere near enouqh Lo
make 3C happen.
WhaL nobody has seen yeL is any siqn ol
an Lmerqinq MarkeL Base SLaLion pro|ecL,
nor an emerqinq markeL swiLch. 1he biq
cosL, and Lhe one LhaL is hardesL Lo linesse,
is Lhe neLwork inlrasLrucLure, and iLs build
ouL in possibly Lryinq circumsLances. Alonq
wiLh Lhis comes a lurLher problemCSM
service is wildly proliLable in emerqinq
markeLs and qrowinq lasL. Where is Lhe
economic incenLive Lo sLarL up 3C, excepL
as a presLiqe pro|ecL?
As lor Lhe "connecLinq Lhe world" side
ol Lhinqs, lonq belore Lhe 3C base sLaLions
become economically viable lor Lhe poor,
LDCL is already beinq rolled ouL Lo oller
reasonable (200KbiLs/s) daLa raLes wiLh
some success. When Banqladeshi operaLor
CrameenPhone upqraded iLs CSM neLwork
wiLh LDCL lasL year, subscribers were
asked Lo reqisLer by SMS lor an upqrade
so Lhey could use iL. WiLhin 0 days some
00,000 ol Lhem had done so.
//HANDSETS
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Informa Telecoms & Media is part of Informa plc which is quoted on the London Stock Exchange under the Media
section and has offices in: Australia Austria Brazil Belgium Dubai France Germany Hong Kong India
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Produced by: Official Media Partners: Media Partners: Endorsed By:
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18th & 19th October 2006 The Caf Royal, London
Exploring the Market Drivers for Investing in a New Technology
Update on the Current Status of 3G LTE Standards Assess the Impact on
Your Company
Evaluate the Spectrum Implications of a New Technology: How Will it Affect the
Overall 3G Strategy of Operators?
Determine Why Operators Should Invest in 3G LTE
Technical Focus: How OFDMand MIMO Could be Adopted for 3G LTE
Identify What 3G LTE Could Offer Over Alternative Technologies
Assess if 3G LTE Could Support a Mass Market Uptake of Mobile TV
3G LTE and a Fixed-Mobile Substitution Strategy: What is the Potential?
Develop Business and Strategic Understanding to Inform Your Decisions for
Deploying a New Technology
Hear presentations from:
Eva Lindqvist, Senior Vice President
Mobile Business, TeliaSonera Group,
Sweden
Massimo Barbiero, Project Manager,
Wireless Broadband System Vendor
Management Dept, Telecom Italia
Daniel Sjberg, Director & Head of
Strategy, TeliaSonera International
Carrier, Sweden
Adrian Scrase, CTO, ETSI
Gerry Collins, Vice-Chairman,
UMTS Forum
Andreas Geiss, Policy Developer,
European Commission, Belgium
Pre-Conference Workshop
17th October 2006
Maximising the Future
Potential of 3G LTE
Sharifah Amriah, Research Manager, ICT EMEA, UK
Pete Nuthall, Industry Analyst, Wireless ICT EMEA, UK
Luke Thomas, Senior Research Analyst,
Mobile & Wireless Telecoms, India
Frost & Sullivan
Post-Conference Workshop
20th October 2006
Technology and Service
Integration for LTE
Dr Philip Marshall,
Vice President, Communications and Enabling Technologies
Yankee Group, USA
www.informatm.com/3glte
P
a
r
t

O
f

T
h
e
Lead Sponsor: Lunch Sponsor: Sponsors:
NEWS SHORTS//
UK broadcasLer l1V and 3C
operaLor/sell sLyled mobile
media company 3 have
announced a deal Lo sLream
l1V Lo 3's UK subscribers.
Available lrom O306, l1V has
qranLed an exclusive 3C mobile
licence Lo 3UK lor six monLhs.
1he deal will enable Lhe
3.5 million cusLomers on 3 Lo
waLch l1V and l1V Playl1V's
parLicipaLion channellive
on Lheir mobile phone. l1V
is BriLain's mosL
waLched commer
cial 1V channel.
As well as
beinq Lhe
UK's
lirsL live sLreamed LerresLrial
mobile channels, iL will also
become Lhe larqesL service ol
iLs kind in Lhe UK wiLh cover
aqe ol more Lhan 89 per cenL
ol Lhe UK populaLion.
Lvidence lrom currenL
mobile 1V services indicaLes
LhaL mobile 1V viewinq is com
plemenLary Lo LradiLional view
inq, wiLh many people caLchinq
up whilsL Lravellinq, or when
Lhey aren'L near a 1V.
Charles Allen,
Chiel LxecuLive ol
l1V said in a sLaLe
menL: "We are
deliqhLed LhaL we are
Leaminq up wiLh
3 Lo be Lhe lirsL
LerresLrial broad
casLer in Lhe UK Lo
launch Lhis kind ol service."
1he classic lallinq brick puz
zle qame 1eLris has had a
makeover courLesy ol video
qame qianL LlecLronic ArLs.
1here are Lhree new modes
Lo play. Cascade mode acLi
vaLes qraviLy and any unsup
porLed blocks Lopple down,
helpinq players score exLra
poinLs. SLicky mode allows
blocks ol Lhe same colour Lo
sLick LoqeLher, creaLinq new
shapes. While in lusion mode,
one block will acLivaLe oLhers
LhaL come inLo conLacL wiLh iL.
AcLivaLinq enouqh blocks ena
bles a player Lo move Lo Lhe
nexL level. 1eLris Mania lea
Lures enhanced qraphics and
visual ellecLs as well as new
animaLion and sounds. 1eLris
reqularly Lopped Lhe mobile
qames charLs, principally due
Lo iLs simple and addicLive
qameplay. lL appeals Lo Lhe
casual qamers' desire Lo have
a quick dip in and ouL.
No doubL lor any addicLs
ouL Lhere Lhe new version will
be mosL welcome.
ll you lailed Lo have iL larqe
Lhis summer, worry noL.
KaLo SLudios has launched
lbiza 2006 qame lor Lhe
mobile phone. 1here are
live qames in one LhaL
cenLre around dressinq
up, mixinq cockLails, spin
ninq Lunes, dancinq and
relaLionships. lL's an olL
repeaLed piece ol common
knowledqe LhaL mobile
qames will never live up Lo
Lheir sophisLicaLed console
rivals. So subscribers are
qoinq Lo Lake some con
vincinq LhaL sLarinq inLo a
2"x2" screen and pressinq
a lew buLLons will capLure
Lhe maqic ol a holiday in
lbiza.
SLill, consumer idiocy
knows no bounds. Some
people will download
pracLically anyLhinq il iL's
wrapped up in enouqh
shiny markeLinq pull. 1his
qame promises sLylish
qraphics wiLh vibranL visu
als so we could be lookinq
aL Lhe surprise hiL ol Lhe
year. 1he clever money is
probably on 1eLris Mania
Lhouqh.
CameIcft, a deveIcper and
pubIisher cf ames fcr
mcbiIe phcnes, has sined
a muIti-year aree-
ment with Tcuchstcne
TeIevisicn tc deveIcp,
pubIish and distribute
mcbiIe ames based cn
twc cf ABC's tcp shcws:
Lcst and Desperate
Hcusewives.
Nc detaiIs were iven
abcut the exact ccntent
cf the ames but in a
statement Bruce Cersh,
senicr vice president,
business deveIcpment,
ABC Entertainment and
Tcuchstcne TeIevisicn
said CameIcft had been
tasked with deveIcpin
"ames that capture the
definin essence cf each
shcw."
!f the ames are any-
thin Iike the TV shcws
they shcuId start cut Iife
in prcmisin fcrm, but
uItimateIy end in a disap-
pcintin ccncIusicn. StiII,
if they enerate even a
fracticn cf the viewin fi-
ures in dcwnIcads execu-
tives at CameIcft and
Tcuchstcne wiII be mcre
than happy.
The Lcst and Desperate
Hcusewives mcbiIe ames
are scheduIed fcr reIease
in earIy 2007.
MOBILE THREE-V TO LAUNCH A LOAD OF BALEARICS
TETRIS WITH A TWIST DESPERATE AND LOST
ROK LnLerLainmenL Croup
has launched ROK 1V mobile
1V service in Lhe US. Users
can now subscribe Lo 3 chan
nels ol conLenL lor $0.99 per
channel. ROK has licensed
conLenL lrom well over 50
conLenL providers, enouqh
lor dozens ol channels, which
will be qoinq live LhrouqhouL
Lhe cominq weeks.
1he service has been live in
Lhe UK since laLe lasL year.
"We see larqe demoqraphic
and alliniLy seqmenLs ol acLive
mobile media consumers LhaL
are beinq underserved by Lhe
conLenL ollerinqs ol exisLinq
mobile video services," said
CLO JonaLhan Kendrick.
THE UNITED STATES OF ROK
//NEWS SHORTS
US neLwork AllLel Wireless and
Melodeo, an inLeracLive pod
casL communiLy lor PC and
mobile phones, have launched
Axcess MobilcasL service.
1he service enables
AllLel Wireless cus
Lomers Lo search
and lisLen Lo Lhou
sands ol podcasLs
on Lheir cel
lular phones
lor a monLhly
subscripLion
ol $3.99. AllLel
Wireless is Lhe
lirsL company in Lhe UniLed
SLaLes Lo brinq Lhis service Lo
markeL.
Axcess MobilcasL ollers
conLinuously updaLed podcasL
episodes and radio shows
lrom sources such as NPR and
CNN, as well as Lhousands ol
independenL podcasLs lrom all
over Lhe world.
Axcess MobilcasL is cur
renLly available on several
AllLel phones. An inLerlace
allows lisLeners Lo browse
caLeqories or search pro
qrammes wiLh no waiL Lime.
Ccntent speciaIist McbiIe
Streams has anncunced
the Iaunch cf its Ccmedy
ChanneI cn Vcdafcne Live
in !reIand, New ZeaIand
and AustraIia.
The ccmpany first
Iaunched The Ccmedy
ChanneI with Vcdafcne UK
in JuIy 2005.
The Ccmedy ChanneI
prcvides Vcdafcne cus-
tcmers with access tc
ccntent incIudin cIips
frcm weII-kncwn ccme-
dians Peter Kay and Tim
Vine, as weII as animaticn
ccntent frcm WaIIace &
Crcmit and Mr Bean.
The service aIsc fea-
tures ccntent frcm pcpuIar
ccmedy prcrammes such
as French and Saunders,
as weII as speciaIIy made-
fcr-mcbiIe ccntent Iike
Happy Tree Friends.
The cataIcue incIudes
ccntent that can be dcwn-
Icaded in a variety cf
fcrmats incIudin: videc,
imaes, and tcnes. McbiIe
Streams' ccntent partners
incIude: Tier Aspect,
Fun LittIe Mcvies, ABC
TeIevisicn, NBC UniversaI
RDF and 2entertainment
(part cf the BBC).
Sarah Chapman,
Ccntent Services Manaer
at Vcdafcne !reIand
said: "We chcse McbiIe
Streams as cne cf cur
main ccmedy partners fcI-
Icwin the success cf the
Vcdafcne UK service and
their extensive kncwIede
cf the ccmpIexities cf
creatin and maintain-
in a ccmedy channeI fcr
mcbiIe. We aIsc beIieve
that this ccntent wiII
have strcn appeaI fcr cur
custcmers ivin them
access tc bite size enter-
tainment cn the mcve".
McbiIe Streams aIsc
anncunced the acqui-
siticn cf The NickeIs
Crcup, a CaIifcrnia-based
mcbiIe prcducticn ccm-
pany. The NickeIs Crcup
speciaIises in the Iicens-
in and distributicn cf
urban music.
The ccntent firm
and The NickeIs Crcup
aIready cperate a number
cf strateic partner-
ships, jcintIy deveIcpin
and distributin mcbiIe
ccntent channeIs incIud-
in Reaetcn Naticn,
The Hyphy Mcvement,
and the Iatest brand
cfferin frcm Nexxt
McbiIe and PauI WaII's
C.R.!.T. Bcys, the first
mcbiIe reaIity series.
McbiIe ccntent pubIisher
PIayer 0ne has anncunced
the Iaunch cf PckermiIIicn
The Masters. The ame
wiII be avaiIabIe in the UK
cn 0rane, Vcdafcne, 3,
T-McbiIe and 02 netwcrks
and has been Iaunched
in the Iead up tc
PckermiIIicn
Masters
2006,
the prc-
ceIebrity
pcker tcurna-
ment teIevised
by Sky Spcrts
runnin frcm
September tc
December.
"This year's
PckermiIIicn Masters cn
Sky wiII be cne cf Eurcpe's
hihest payin TV pcker
tcurnaments, with a prize
fund cf cver twc miI-
Iicn pcunds. This ame
ives pecpIe the chance
tc pIay aIcn with the
PckermiIIicn finaI," said
Barry Hearn, manain
directcr cf Matchrccm
Spcrt, which cwns the
PckermiIIicn brand.
The ame can be pIayed
as a stand-aIcne drcp-in
ame cr in a 'career mcde'.
Mcvin thrcuh six Icca-
ticns, the career mcde
starts pIayers cff as a prc
hustIer frcm dcwntcwn
bars, mcvin thrcuh a
cruise ship, Veas
casinc, a Eurcpean
hcteI, a mem-
bers cIub in
Asia and
finaIIy the
hihest
payin pcker
tcurnament
"PckermiIIicn
Masters" TV
studic.
PIayer 0ne
is the ccmpany
behind Texas
HcId 'Em, aruabIy mcbiIe's
mcst pcpuIar pcker ame
tc date. Linkin up with
Sky seems Iike an exceI-
Ient mcve in pushin its
cwn brand cf pcker tc a
wider audience. Anycne nct
cnIy wiIIin but chccsin
tc watch cther pecpIe pIay-
in cards cn TV is prcbabIy
the scrt cf perscn whc wiII
want tc pIay the ame cn a
phcne.
PODCAST IN THE USA
PLAYER ONE STARTING
TO LOOK FLUSH
VODAFONES LAUGHING
STOCK SET TO RISE
Handsets & Devices Business Intelligence
www.informatm.com
Future Mobile Handsets
8
th
edition
Fully revised and updated for 2006, this Strategic Report is the definitive guide
to the technology trends and strategic issues surrounding the global mobile
handset market and is essential for successful strategic planning and
investment along the whole value chain.
Visit www.informatm.com/fmh for more information.
Mobile Handset Analyst
Research Service
Every two weeks this news analysis service focuses on the total global mobile
device market and offers updates on the latest technical developments,
partnerships and alliances, and mergers and acquisitions, along with exclusive
analysis, data and views from industry leaders.
Visit www.informatm.com/mha for your complimentary evaluation
issue and more information.
Mobile TV: Broadcast &
Multimedia 2
nd
edition
The second edition of this Strategic Report provides a comprehensive analysis
of the industry, emerging business models, handsets and devices as well as
forecasts by technology and region to 2011. Each mobile broadcast technology
is analysed.
Visit www.informatm.com/mobiletv for more information.
Mobile Application Platforms &
Operating Systems 3
rd
edition
The third edition of this Strategic Report analyses the technologies behind
different mobile terminal software platforms available, their future usage and
revenue potential as well as the major players strategies and standardisation
initiatives.
Visit www.informatm.com/mapos for more information.
Visit the websites for more information or call +44 (0)20 7017 5537
Published: September 2006
Published: August 2006
Published: July 2006
Published: Every two weeks

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