40
Find more information about the Telecom Asia Awards and Telco Strategies 2012 at www.telcostrategies.com To attend this event: JP Chirayath - [email protected] +65 6395 4597 Sponsorship opportunities: Gigi Chan - [email protected] +852 2589 1338 For information about the Telecom Asia Awards: Joseph Waring - [email protected] Organizer Official Media Telco Strategies 2012 15th Annual Telecom Asia Awards and Executive Conference April 18-19, 2012 Bangkok Transformation and Strategies for Growth The search is on for Asia’s best-run telecom carriers with the 15th Annual Telecom Asia Awards – the region’s longest-running and most prestigious telecom industry awards. The 2012 awards include an executive-level conference - Telco Strategies 2012 - which brings together leading thinkers from Asia’s telecommunication operators for knowledge sharing and to celebrate the industry leaders of the past year. The combination of awards and conference makes this the must-attend telco event in Asia.

Telecom Asia 201111

Embed Size (px)

Citation preview

Page 1: Telecom Asia 201111

Find more information about the Telecom Asia Awards and Telco Strategies 2012 at

wwwtelcostrategiescom

To attend this event JP Chirayath - jchirayathquestexasiacom +65 6395 4597

Sponsorship opportunities Gigi Chan - gchanquestexasiacom +852 2589 1338

For information about the Telecom Asia Awards Joseph Waring - jwaringquestexasiacom

Organizer

Official Media

Telco Strategies 2012 15th Annual Telecom Asia Awards and Executive Conference

April 18-19 2012 Bangkok

Transformation and Strategies for GrowthThe search is on for Asiarsquos best-run telecom carriers with the 15th Annual Telecom Asia Awards ndash the regionrsquos longest-running and most prestigious telecom industry awards

The 2012 awards include an executive-level conference - Telco Strategies 2012 - which brings together leading thinkers from Asiarsquos telecommunication operators for knowledge sharing and to celebrate the industry leaders of the past year

The combination of awards and conference makes this the must-attend telco event in Asia

TAA2012_hseadindd 6 10262011 134 PM

As ian Te lecoms Bus iness and Techno log y l www te lecomas ia ne t l Oc tNov 2011

M2M barriers bull Enterprise opportunity bull Twisted radio waves bull Obstacles to consolidation

Taking Apps to the Next LevelThe biggest trends reshaping the apps sector

Inside

3G in VietnamVicious price competition makes 3G a commodity

Published By

Next wave of China vendorsA new class of makers is growing quickly and expanding overseas

Billing amp OSS Special Report

Subscribe to Asiarsquos best daily telecom news service wwwtelecomasianet

Contents Volume 22 Number 9 OctNov 2011

12

2337

16 3820

5

Coverstory

12 Taking apps to the next levelThe apps landscape itself is constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business

feATure

China Vendors

16 Next waveThe booming FTTH market is fueling the next-generation of telecom makers They are quickly targeting overseas market after finding success at home

M2M

18 Barriers to growthRegulators in SEA need to step in to remove roadblocks that are slowing M2M growth

Country focus Vietnam

20 faster but cheaperVicious price competition makes 3G a commodity Operators need to push back with branding to show value

BilliNg amp OSS SpeCiAl

Analyst View gartner

24 Narrowing the customer gapViewpoint

26 Adapting to business changeAnalyst View KpMg

28 indiarsquos new telecom policy shows visionCloud Services

30 Core requirements for iaaS

COluMNS

Tanner

5 No longer virtualInteractive displays such as digital signage will shift peoplersquos behaviors as they go mainstream forum

32 Opportunity in the enterpriseChinarsquos enterprises have been slow to mobilize their applications Will telcos move in to fill the gap

poulos points

37 More than the sum of its partsOffering web apps cloud services and security can be a powerful combination for telcos keen to add value to the pipe

2 OctNov 2011 Telecom Asia wwwtelecomasianet

Subscribe to Asiarsquos best daily telecom news service

wwwtelecomasianet

Managing Director Jonathan Bigelow jbigelowquestexasiacom

Group Editor Joseph Waring jwaringtelecomasianetGlobal Technology Editor John C Tanner tannertelecomasianetSenior Reporter Melissa Chua mchuaquestexasiacomOnline Editor Fiona Chau fchautelecomasianet

Art Director Dick Wong dwongtelecomasianetProduction amp Web Manager Pauline Wong pwongtelecomasianet

Group Publisher Gigi Chan gchantelecomasianet Regional Account Director APAC Jessie Cheung jcheungquestexasiacomAsst Sales amp Marketing Manager Candace Ho choquestexasiacom HR amp Admin Manager Janis Lam janislamquestexasiacomww

Accounting Manager Nancy Chung nchungquestexasiacom Accountant Ivy Chu ichuquestexasiacomAccounting Assistant Cannis Wong cwongquestexasiacom Accounts Clerk Mavis Chan mchanquestexasiacom

Circulation amp Distribution Director John Lam jlamquestexasiacomAssistant Circulation Manager Allie Mok amokquestexasiacom Senior Circulation Assistant Shipman Kwok skwokquestexasiacom

Contributors Canberra Dylan Bushell-Embling London Michael Carroll Tokyo Mike Galbraith

Editorial and publishing officeQuestex Asia Ltd13F 88 Hing Fat Street Causeway Bay Hong KongTel +852 2559 2772 Fax +852 2559 7002Website wwwtelecomasianetSubscription Hotline +852 2589 1313 Subscription Fax +852 2559 2015E-mail customer_servicetelecomasianet

Questex Media Group LLC275 Grove Street Newton MA 02466 Tel +1 617 219 8300President amp Chief Executive Officer Kerry C GumasExecutive VP amp Chief Financial Officer Tom CaridiExecutive Vice President Tony DrsquoAvinoExecutive Vice President Gideon Dean

TELECOM ASIA (ISSN 1681-181x)is circulated to telecommunications carriers (PTTs) and to the communications departments of businesses industries and others who use and operate commercial and private networks It is edited for planning engineering and operational managers responsible for the design installation marketing and mainte-nance of public or private telecom systems and networks

TELECOM ASIA (USPS 019-325) is published ten times yearly by Questex Asia Ltd 13F 88 Hing Fat Street Causeway Bay Hong Kong All copies distributed in PRC are free of charge Subscription rates 1 year HK$480 (Hong Kong only) US$86 (within Asia) and US$96 (outside Asia) 2 years HK$840 (Hong Kong only) US$152 (within Asia) and US$168 (outside Asia) SingleBack issue (if available) HK$50 per copy (Hong Kong only) US$9 (within Asia) and US$10 (outside Asia) plus US$5 handling charge per order Print-ed in Hong Kong Postage paid in Hong Kong US Mailing Agent International Mail Distribution Inc A Division of Security Delivery Service 52-09 31st Place Long Island City NY 11101-3229 Periodicals postage paid at Long Island City NY copy 2011 Questex Media Group LLC All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical including photocopy recording or any information storage or retrieval system without permission in writing from the publisher

POSTMASTER Send address changes to 13F 88 Hing Fat Street Causeway Bay Hong Kong

Total circulation 13959Qualified Circulation 12126 Non-Qualified Circulation 1833

Source Jun 2008 BPA Statement

SAleS CONTACTSAsia pacificGigi Chan group publisher Questex Asia LtdTel +852 2589 1338 fax +852 2559 7002 e-mail gchanquestexasiacom

Jessie Cheung Questex Asia LtdTel +852 2589 1310 fax +852 2559 7002 e-mail jcheungquestexasiacom

JapanYoshiomi Okamoto EMS IncTel +81 3 3327 5756email callemsworldodnnejpm

North America amp eMeAZena CoupeacuteTel +44 1923 852537 fax +44 1923 839765 email zcoupequestexcom

TaiwanVirginia Lee Spacemark Media ServicesTel +886 2 2522 2282 fax +886 2 2522 2281 email smediams5hinetnet

firstmile

6 Twisted tech Researchers boost spectrum capacity by twisting radio waves

Show report Asian Carriers Conference

34 Whatrsquos next Telcos struggle in search for new revenue streams

iNDuSTrY ANAlYSiS

7 Chinarsquos cellcos look to europe for growth8 regulations hold back move to consolidation in

india9 long-term impact of Thai floods on supply

chains to take weeks to assess

NeWS MAp

10 Asian telecoms this month Asia news round-up

regulArS

8 insight

33 Telecom Career

36 events Calendar

38 Backpage Briefing

ONLINE SECTIONS

wwwtelecomasianet HigHligHTS

Daily News Our broad coverage of Asian and global telecom news

wwwtelecomasianetnews

CommentaryIn-depth analysis from Telecom Asiarsquos senior editors and leading telecom research firms including Ovum Maravedis ACG Research and more

wwwtelecomasianetcommentary

BloggeryMissives on telecom trends and the wireless future from John Tanner Tony Poulos Joseph Waring and Michael Carroll

wwwtelecomasianetblog

BusinessWeek Online Tech coverage from the global business magazine

wwwtelecomasianetbwol

White Papers Vendors hold forth on latest technology concepts

wwwtelecomasianetwhitepapers

Events This yearrsquos trade shows and conferences

wwwtelecomasianetevents

Telecom Asia China editionIn-depth news analysis opinion white papers and case studies for telecom professionals and executives in China

httpcntelecomasianet

IndustryViewThe inside view from industry execs

wwwtelecomasianetindustryview

Follow us on

4th Annual Telecom Asia Readersrsquo Choice Awards

Country FocusGet the latest news and trends on China and India ndash the two fastest growing telecom markets in the world

China Focus ndash wwwtelecomasianetchinaIndia Focus ndash wwwtelecomasianetindia

Voting was closed on October 24 and winners will be announced at a cocktail ceremony on December 1 in Singapore

wwwtelecomasianetrca11

Top 10 handsetsTelecomasianet together with Gfk Asia brings you the monthly updates on the top 10 mobile phones and smartphones in Asia

wwwtelecomasianettagtop+10+handsets

Next-gen TVThis bi-weekly e-newsletter gives you updates and insights on the latest tech trends and developments from the TV sector covering everything from IPTV and mobile TV to video delivery and HD

wwwtelecomasianet

4 OctNov 2011 Telecom Asia wwwtelecomasianet

John C Tanner l TANNer

This monthrsquos cover story looks at five of the biggest trends technologies and developments that we believe will in-fluence the evolution of the mobile

app as we know it Due to the usual limitations of time and space of course itrsquos not a compre-hensive list And one development thatrsquos worth expanding on is the concept of the multi-screen experience ndash ie the ability to access content re-gardless of what screen itrsquos being accessed from (TV smartphone tablet whatever)

We do touch on that a little bit via In-Statrsquos prediction that five years from now tablets will be the primary video device for users even inside the home and that 60 of both smart-phone and tablet users will use those devices to watch OTT video at home That highlights an interesting shift in the concept of mobile video which was originally imagined as an on-the-go service but appears to be morphing into a re-definition of video consumption in the home

In-door consumptionWersquove already seen this in markets like

South Korea where mobile TV users watch a lot of their favorite dramas at home and oth-ers use their mobile TV devices as a companion device to the living room screen Thatrsquos now happening in other markets as well which is why Yoav Schreiber senior analyst for digital media infrastructure at Current Analysis re-cently observed that the biggest multi-screen video market opportunity is ldquoheavily focused on delivering video applications and lsquoTV ex-periencesrsquo for consumption on companion devices in the homerdquo including smartphones PCs and tablets

There are naturally challenges to achieving that particularly in terms of monetization (ie how do you package that and how do you ac-commodate advertisers) data caps (because video will eat those up faster than you can say ldquoDonrsquot touch that dialrdquo) and content protection (oh you know)

But the point is that more and more cus-tomers are already accustomed to interact-ing with multiple screens And thatrsquos going to impact how players across the value chain ap-proach new content services (which is one rea-son cloud-based content is generating so much

buzz at the moment) Another fascinating aspect thatrsquos worth

highlighting is the emergence of the ldquofifth screenrdquo

Digital signage has been touted for a while now as both another potential revenue stream for operators (think M2M) and a new way for advertisers to interact with consumers at spe-cific locations via technologies like Bluetooth QR codes augmented reality or even SMS

But look at digital signage within the cul-tural context of the multi-screen paradigm and it becomes something more than an animated billboard or a public TV panel

Jan Chipchase ndash an executive creative direc-tor of global insights at frog design and creator of the FuturePerfect blog ndash has pointed to Seoul as an experiment in this regard pondering in a recent article how peoplersquos perceptions and behaviors will shift as dynamic interactive dis-plays become the norm

For example local discount store retail chain Home Plus launched a ldquovirtualrdquo super-market ndash a screen in a subway station that dis-plays life-sized grocery items that customers can purchase online by snapping the QR code of each item Home Plus says its online sales have gone up 130 since it started trialing the store

Because the service involves logging and tracking consumer purchasing data Chipchase highlights the privacy implications of this kind of scenario in which ldquoScreens will read us we will not only read themrdquo Thatrsquos worth empha-sizing within the larger discussion of collect-ing and securing consumer data The fact that digital signage servers have been demonstrated to be as hackable as (say) Sony PlayStation net-work only highlights the point

But the broader point is that interactive digital signage is going to happen anyway ndashindeed itrsquos happening already from simple things like posting text messages and Tweets to Jumbotron screens to online shopping and AR apps that transform displays into interactive playgrounds As the technology and consumer behaviors evolve therersquos a fascinating oppor-tunity here to incorporate the fifth screen into coming cultural norm of the multi-screen ex-perienceTA

John C Tanner is global technology editor ndash jtannerquestexasiacom

The future of multi-screen culture

Look at digital signage within the cultural context of the multi-screen paradigm and it becomes something more than an animated billboard or a public TV panel

wwwtelecomasianet Telecom Asia OctNov 2011 5

Twisted tech could boost RF bandwidth 100x

I trsquos no secret that one of the biggest topics in the mobile broadband sec-tor is spectrum Mobile operators are not only looking to get more

spectrum for LTE ndash particularly in the coveted 700-MHz band ndash but also to get more out of spectrum they already have hence the growing interest in refarming the 1800-MHz bands for LTE by players like StarHub Telstra CSL and Indosat

Therersquos a number of technologi-cal solutions on the horizon to milk as much spectral efficiency out of spec-trum as possible from small cells to advanced MIMO solutions But a team of researchers in Europe have hit upon something a little more radical to boost capacity in a radio signal by ndash literally ndash giving it a twist

Research led by Italian astrophysicist Fabrizio Tamburini and Swedish physi-cist Bo Thideacute claims to have found a way to increase spectrum capacity by twisting radio waves The ldquotwistingrdquo part stems from the application of orbital angu-lar momentum (OAM) a century-old discovery which states that electromag-netic fields can transport not only energy and linear momentum but also angular momentum to radio beams OAM has already been applied to laser optics but not to RF technology until recently

As the abstract of the teamrsquos re-search paper explains ldquoWe have shown experimentally that it is possible to propagate and use the properties of twisted non-monochromatic incoherent radio waves to simultaneously transmit to infinity more radio channels on the same frequency band by encoding them in different orbital angular momentum states This novel radio technique al-lows the implementation of at least in principle an infinite number of channels on one and the same frequency even without using polarization or dense cod-ing techniquesrdquo

What that essentially means is that itrsquos possible to leverage OAM to twist a

radio wave into a vortex which creates distinctly shaped sub-frequencies that can be used to transmit and receive data without interfering with one another Result a potential 100x increase in band-width for wireless broadband (although Tamburini says that in theory an OAM vortex could generate sub-frequencies to infinity)

Tamburini and his team success-fully tested the technology in the field in Venice this past June beaming two radio signals from an offshore island to Piazza San Marco a little under 500 meters away

The next step will be to miniatur-ize the antenna technology to make it suitable for mobile devices and also to increase the distance of the signal

That wonrsquot be easy says Brough Turner founder of wireless mesh ISP netBlazr and former CTO and co-found-er of Natural MicroSystems and NMS Communications who noted on his blog that the researchers twisted their waves by bouncing an RF source off a spiral-formed reflector

ldquoThis is a cool experiment but yoursquod need a set of reflectors one per channel each with slightly different depths of their spirals to begin mak-ing wireless capacity gainsrdquo Turner observed ldquoTo make this commercially viable we need an antenna that can create several different orders of vortex in the same physical spacerdquo

But once thatrsquos accomplished Turner added ldquothe resulting separate channels could be used directly with MIMO elec-tronics and an antenna that fits in limited space much as 2x2 MIMO systems use horizontally and vertically polarized an-tennas that fit in the same physical spacerdquo

Turner said that while we probably wonrsquot be seeing 100x wireless capacity gains anytime soon the vorticity effect could be used to create up to 8x gains within the next decade ldquoThis is an area to watchrdquo TA

Vacancy rates drop sharply

STATSNAP

Demand for colocation will continue to grow at a runaway pace defying the fragile global economic climate researchers believe New data from TeleGe-ography shows that available colocation space is shrinking rapidly in several major markets

In Washington DC for example only 16 of retail colocation space is currently vacant with available space falling 36 in the 12 months to September 2011 Vacancy rates fell 26 in London over the same period

Retail colocation providers are scrambling to build new sites to keep up with this demand

Hong Kong providers alone have added more than 400000 square feet of new space over the past two years

In New York more than 13 million square feet of new retail colocation space has been constructed over this time

The majority of the providers surveyed by the research firm ndash including more than 70 in Hong Kong and 80 in Seattle ndash also indicated that they have further growth ambitions

ldquoItrsquos unlikely that the pace of expansion will slow anytime soonrdquo TeleGeography analyst Jon Hjembo said ldquoWhile operators are adding capacity vacancy rates in a number of metro markets we surveyed remain under 25rdquo

Colocation demand soars in major markets

firST Mile edited by John C Tanner

Source TeleGeography

6 OctNov 2011 Telecom Asia wwwtelecomasianet

iNDuSTrY ANAlYSiS

Chinese operators look west for growth

Two of Chinarsquos leading telcos are boosting their global expansion ambitions through partnerships with leading European operators

but they are focusing on very different areas to achieve those goals

China Telecom is allying with France Telecom in a deal covering IP-based VPN services while rival China Unicom has paired with Telefonicarsquos new digital division to develop global machine-to-machine (M2M) standards

The partnership ndash one of the first by the new Telefonica business ndash pri-marily covers developing cross-border technical specifications for M2M com-munications based on jointly produced and maintained platforms However it also provides opportunities for the pair to jointly buy equipment test stand-ards and conduct thorough market analysis

Each carrier will market the M2M platforms to players in markets including smart transport energy connected cars and smart cities The pair may also open the door to additional operators to boost the global potential of their standards and platforms

Telecomrsquos deal with France Telecom is similar in depth but covers access to and management of IP-based VPNs for business subscribers in domestic mar-kets and parts of Africa and the Middle East where France Telecom currently operates

A key element of the collabora-tion is an agreement to jointly develop networks The work has the potential to improve links between Europe Asia Pacific and Africa with the pair agreeing to explore new terrestrial and submarine cable links between the three continents

Telecom chairman Wang Xiaochu says working with France Telecom is ldquoan important part of the companyrsquos foreign

cooperation strategyrdquo and will help it re-alize ldquothe ambition of servicing custom-ers globallyrdquo

Wangrsquos ambition is also served by a Wi-Fi roaming element of the deal which sees France Telecom offer China Telecom customers access to its network of hotspots in Europe and vice-versa

France Telecom chief Steacutephane Rich-

ard was pleased to have closed a deal with Telecom noting it is an ldquoimportant step forwardrdquo for his firm

ldquoBoth parties are set to benefit from close cooperation by enabling each other to provide better customer access and services in our respective regionsrdquo Rich-ard says TA

ndash Michael Carroll

wwwtelecomasianet Telecom Asia OctNov 2011 7

iNDuSTrY ANAlYSiS

gtgt Mobile security spend to hit $3b by 2015Investments in mobile security will reach $7598 billion in 2011 and climb 44 per year through to 2015 Calanys estimates that only 4 of smartphones and tablets had some kind of mobile protection installed in 2010 but that this will rise to 20 by 2015 Mobile client security ndash such as anti-virus firewall messaging security web threat security VPN functionality and encryption ndash will outperform the market with an expected average growth of 546 per year until 2015 While North America has traditionally led mobile security adoption due largely to the presence of data compliance regulations investments in Western Europe are poised to rise sharply For Asia Latin America and MEA the boom will start in 2013

Canalys mobile security analysis wwwcanalyscom

gtgt LTE uptake a slow burnThe worldrsquos mobile operators are mostly taking a quiet approach to deploying LTE networks but as the ecosystem progresses subscribers to FD- or TD-LTE networks will near 80 million by the end of 2013 As a result of strong operator demand devices for both flavors of LTE are expected to flood the market over the next few years ABI Research predicts This inflow will drive subscriber interest and adoption Spectrum constraints are influencing LTE deployment decisions in many markets ndash as is the case in Saudi Arabia where all three operators recently launched TD-LTE services using 25-GHz spectrum originally intended for Wimax Singaporersquos M1 has likewise deployed FDD LTE on the 18-GHz band first slated for 3G usage

4G subscriber device and networks market datawwwabiresearchcom

gtgt DPI equipment spend to poised tripleThe service provider deep packet inspection equipment market will more than triple from 2011 to 2015 by which time global sales will top $16 billion The runaway growth is being driven by mobile operatorsrsquo eagerness to enable more granular traffic management and the flexibility to provide tiered or value-added services To accommodate these demands analytics on the subscriberrsquos services applications and behavior will become an integral part of DPI solutions over this period The market is in for particularly strong growth in APACrsquos emerging markets as operators encounter the congestion issues accompanying rapid subscriber growth

Service provider deep packet inspection products wwwinfoneticscompr20111H11-DPI-Deep-Packet-Inspection-Market-Highlightsasp

gtgt Mobile VoIP to pose growing threatRelationships between mobile operators and VoIP service providers are likely to remain frosty through to at least 2016 Juniper Research estimates that smartphone apps will account for four-fifths of the worldrsquos 640 million mobile VoIP users by this time and partnerships between cellcos and VoIP companies will remain rare VoIP specialists will instead pursue partnerships within the movers and shakers in social media Uptake of mobile VoIP services will be faster in the developed markets as there is a direct correlation between adoption and the rollout of 3G or 4G networks

Mobile voice amp video callingwwwjuniperresearchcom

India paves road to consolidation

After two years of stagnating earnings and cutthroat competition consolidation in Indiarsquos crowded mo-bile sector appears all but inevitable but is being held back by existing regulation

The Indian government is well aware that a 14-operator market is shaping up to be unsustainable and in October took several steps to facilitate mergers ndash but at the same time threatened action that would make life even more difficult for telcos

The nationrsquos Department of Telecom (DoT) published a draft of the New Telecom Policy a proposed far-reaching overhaul of existing regulations (See Analyst View on page xx)

Among numerous changes the government has suggested doing away with a restriction on mergers if it would result in the number of competing operators in a telecom circle falling below six proposing instead to base the minimum number of operators on the population in a given area

The DoT earlier suggested introducing an exit policy for newer operators including a possible mechanism for the government to buy back spectrum licenses for those wishing to give up on the sector

But even as the department moved to help reduce the number of operators it raised objections to initiatives some operators have taken on their own to address the problems caused by overcrowding

The strong demand for already-in-short-supply 3G spec-trum during last yearrsquos auctions ensured no operator ended up with pan-Indian spectrum In a bid to address this major players Bharti Airtel Vodafone and Idea Cellular forged a 3G roaming deal that would allow them to use each othersrsquo networks in areas where they lack spectrum

But in October the DoT threatened to object to this deal on the grounds that it may violate license conditions The operators dispute this claiming that their permits allow roaming agreements

Operatorsrsquo financial problems would also be exacerbated by a proposal in the New Telecom Policy to scrap inter-circle roaming charges forcing operators to charge a single rate for calls anywhere in India

Some analysts estimate that operator could lose a com-bined $400 million in revenue from such a move

The department in October also reportedly sent notices to five major operators ndash Bharti Vodafone Idea Reliance and Tata Teleservices ndash accusing them of misreporting revenue to pay lower license fees The DoT wants operators to pay fees based on revenue figures derived by the comptroller and auditor general of India All five dispute the charges TA

ndash Dylan Bushell-Embling

8 OctNov 2011 Telecom Asia wwwtelecomasianet

INSIGHT ONE MONTHrsquoS TELECOM RESEARCH

The floods that have ravaged much of central Thailand have left the countryrsquos industrial estates in ruins Heavy indus-

try especially the automotive sector has taken a huge hit with optimistic estimates saying it will be at least three months before manufacturing can resume

The hard drive industry is devastated with Western Digital the worldrsquos largest drive maker seeing its Thailand opera-tions now under a sea of mud and water Toshiba Canon Sony Nikon and a whole raft of other names also have been af-fected Even Applersquos Tim Cook has said that the supply chain disruptions will hit Apple hard

But the real damage will not be known until the often secretive supply chains are exposed as the flood waters finally subside in a few weeksrsquo time

One company Stars Microelectronics clearly illustrates the nature of the prob-lem as it threatens to derail many high-end touch-screen handset shipments

Stars is a specialist in capacitative screens and surfaces supplying finished touch screen assemblies to the leading handset makers in Taiwan and Korea and even white capacitative clickwheels used in a certain companyrsquos music player Many high-end touchpads for notebooks are also assembled there and more re-cently have also expanded into tough-ened glass capacitative screens

The company does not make the ca-pacitative films nor the circuitry nor the glass But it takes the glass from Europe the capacitative layer from Japan and the chips from everywhere in the world and assembles them into a sub-component that is in turn assembled into a phone somewhere else The added value in the chain is speed flexibility and the ability to run smaller batches than would other-wise be the case

Then there are countless Japanese chip makers that have seen their factories and cleanrooms flooded to the ceil-

Measuring the damage

ing Many have broken down crying in public partly out of despair partly out of anger at conflicting messages from the authorities One minute the Prime Minister was reassuring investors that the industrial estates would be protected the next people were running for their lives as a wall of water bore down on them

Come back in a monthThe outlook is not good Some of the

worst hit universities have postponed the beginning of term until the end of No-vember and even that may be optimistic given the scale of repairs needed

On the other hand the lack of information squabbling politicians and general mistrust of media has led to a boom in social network usage and cel-lular traffic as people shun government propaganda and instead turn to rely on new media and first-hand accounts from Facebook and Twitter

Frost amp Sullivan has said that Face-book growth originally forecast at 132 year on year will increase to 150 be-cause of the floods making Thailand the third fastest growing Facebook country after India Currently 17 of its popula-tion of 65 million is on Facebook

Leading telco AIS has seen traffic jump by 70 Traditional copper infra-

structure has not fared well under the on-slaught of water but the cellular networks have proven quite resilient AIS has lost only 67 of its 13000 base stations as of the last week of October If anything the redundant networks among the three ma-jor operators borne out of mistrust and inability to share infrastructure rather than by design has managed to keep most of the flood victims connected

Once the flood waters recede the question is what will be rebuilt and how will the global tech giants reassess risk planning in this day and age of global warming and extreme weather patterns

And what of planning the next-generation networks Thailand has like many other countries been moving toward a national broadband network for backhaul run by the incumbent state enterprise telcos Cynics say that is be-cause successive governments are quoting national security concerns as an excuse to create a monopoly on backhaul and milk the industry now that the visible retail sector will soon need to be liberalized But would this crisis change the minds of her leaders to a more distributed if more expensive series of redundant networks Or will the next natural disaster leave everyone cut off in the dark TA

ndash Don Sambandaraksa

wwwtelecomasianet Telecom Asia OctNov 2011 9

asian telecoms this month

BeijingHuawei is blocked from bidding for another US tender ndash this time for a public safety network ndash due to alleged national security concerns

The US ambassador to the WTO meanwhile calls on China to explain its criteria for blocking access to some for-eign websites raising concerns about censorshiprsquos impact on international competition

China Telecom and France Telecom strike a VPN and Wi-Fi sharing deal while China Unicom and Telefonica team up for M2M

ZTE moves to sell its controlling stake in Congo-Chine Telecom to Orange to divest the distraction from its core infrastructure business and avoid competing with its own customers

BangkokSevere flooding in Thailand disrupts fixed broadband networks and threatens to do the same to the component supply chain but mobile networks stand up remark-ably well

AIS puts the final touches on plans to offer roaming services to its customers through state-owned TOTrsquos 3G network

Hong kongPCCW Solutions wins a $465m deal with the Social Welfare Department to re-place the aging Computerized Social Security System

DelHiThe telecom ministry unveils its proposed new telecom policy including a plan to scrap inter-circle domestic roaming charges

The ministry blocks Qualcommrsquos petition for an ISP license to ac-company the BWA spectrum it paid $1b for last year but later re-neges after Qualcomm challenges the decision

The dispute between Norwayrsquos Tel-enor and JV partner Unitech over the management of GSM operator Uninor escalates

ZTE confirms it has won a deal for part of a TD-LTE rollout by Bharti Airtel but the operator is rumored to be planning to divide the remaining deals across multi-ple vendors

DHakaTelenor disputes a $400m tax bill from the government arising from a dispute covering subsidiary Grameenphonersquos revenue share on the sale of SIM cards

10 OctNov 2011 Telecom Asia wwwtelecomasianet

movements

Seoul KT is revealed to be in the final stages of talks to acquire a 20 stake in South Africarsquos Telkom for around $582m

z The iPhone 4S initially disappoints pundits with its similarity to the prior model but goes on to shatter Applersquos own launch-weekend sales records

z The 3GPP industry body 3G Americas claims that the next evolution of HSPA could push the peak theoretical transfer rate up to 336 Mbps

z Apple succeeds in stymieing Samsungrsquos plans to launch the Galaxy Tab 101 in Australia as Samsung is said to pip Apple as the top-selling smartphone vendor in the previous quarter

z Nokia swings to a pre-tax loss of over $200m as an increase in low-end phone sales fail to make up for a continued steep decline in smartphone sales

z Ericsson reports marginally higher profit for the third quarter and higher sales but its cash flow plummets due to its underperforming JVs

z Sony buys out Ericssonrsquos half of Sony-Ericsson for $15b

z RIM is hit with a three-day messaging service outage that at various times affects parts of the US Europe Africa India and the Middle East

z Chipmakers Sequans and Fujitsu Semiconductor forge an alli-ance to develop LTE baseband chips with multimode 2G3GLTE RF transceivers

z The GSMA estimates that the APAC mobile market will be worth $447b by 2020 accounting for the lionrsquos share of the worldrsquos $12tr market

z In another long-term prediction Gartner suggests that tablets could replace smartphones as the go-to device for consumers to have in their pockets in five to ten years

z Fitch Ratings cuts its outlook on two Italian operators ndash Wind and Telecom Italia ndash as the countryrsquos debt woes seep through to local busi-nesses

z The Mobile Entertainment Forum claims that more consumers ac-cess mobile internet services on a daily basis than browse on fixed-line connections

z Yahoo takes aim at the feature-phone market in emerging Asian nations with partnerships to embed its internet services into mobile chipsets bound for the devices

z Virgin Media commences a trial of 15-GHz broadband using new cable access technology from Cisco suggesting the war between cable-cos and telcos for subscribers is heating up

z Texas Instruments provides a lower than anticipated forecast for Q4 sales in an indication that the chip industry is still facing financial problems

z Google indicates it may complement its 1-Gbps fiber network pilot in parts of the US with a similar trial in a European country

z IBM picks sales head Virginia Rometty to become the companyrsquos first female CEO in its 100-year history

SyDneyTelstra shareholders reluctantly accept an $11b deal with the govern-ment to phase out the operatorrsquos fixed-line wholesale business and migrate its fixed-line customers to the NBN

Commonwealth Bank plans to introduce an NFC payment service for Android and iOS devices integrating an NFC chip into special cases for phones that lack an internal one

SingaporeM1 and Verizon Business complete a two-year joint fiber rollout project in northern and western Singapore

kuala lumpurP1 becomes Malaysiarsquos third operator ndash after Celcom and Maxis ndash to sign a deal to offer services on Telekom Malaysiarsquos open-access HSBB network

mumBaiStruggling state-owned BSNL asks to be let out of its mandate to

deploy Wimax ndash except in rural areas ndash in a market due to be dominated by TD-LTE

TokyoKDDI reports a 48 gain in Q3 profit but this is not enough for the operator to revise its forecast of a 2 decline for the full year

NTT Com is said to be planning to invest close to $16b to expand its cloud computing capabilities outside of Japan

manila Conglomerate San Miguel arranges to pay around $35m to up its stake in Eastern Telecom to a controlling 78 from an effective 40

PLDT buys a controlling stake in mobile rival Digitel in a deal worth around $16b after finally convincing regulators to accept the deal by offering to give up 10-MHz of spectrum

wwwtelecomasianet Telecom Asia OctNov 2011 11

COVer STOrY

Taking apps to the next levelDemand for mobile apps shows no sign of letting up over the next five years but the apps landscape itself is a work in progress constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business from tablets and mobile OS developments to web apps and augmented reality

John C Tanner

12 OctNov 2011 Telecom Asia wwwtelecomasianet

More coverage of

Mobile Apps

A huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another application

The fragmented mobile OS landscape that apps develop-ers must navigate is in flux as existing OS platforms are be-ing combined and even aban-

doned and new ones keep popping upThis year alone wersquove seen HP aban-

don its WebOS platform while both Nokia and Intel have abandoned the MeeGo OS project Intel is now backing Tizen a new open-source OS from the Linux Foundation and the LiMo Foun-dation that recycles some components of MeeGo and is based on the Samsung Linux Platform that LiMo uses for its open-source mobile OS

Meanwhile speculation about the fate of WebOS ndash and the possibility of companies like Facebook and Amazon taking it over ndash highlights the desire by content-driven companies to gain more control of the mobile OS platform rath-er than ride on top of someone elsersquos

ABI senior analyst Aapo Markkanen says Facebook needs its own OS because of the growing ubiquity of mobile so-cial networking ldquoA huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another applicationrdquo

Other web players are already doing just that In July Chinarsquos Alibaba Cloud Computing unveiled its own cloud-based mobile OS ndash dubbed Aliyun OS ndash as well as the first device that will run on it the K-Touch Cloud-Smart Phone W700 Aliyun supports Android apps web apps and cloud services such as email search weather updates and mappingnavigation tools though the ultimate goal for Alibaba is to develop a smartphone strategy for its e-commerce business

Also in July Mozilla revealed plans to develop an OS called Boot to Gecko which will be based on the Gecko en-

and both native and HTML5 developer environments as well as BlackBerry Runtime for Android Apps

The bad news for developers says Ovum chief telecom analyst Jan Daw-son is ldquothe adoption of QNX across the entire line in the coming months and years also means that RIM is leaving its traditional BlackBerry developers high and dryrdquo Dawson says existing develop-ers will have no choice but to start from scratch with an entirely new develop-ment environment

gine that drives its Fire-fox browser Develop-ment projects for Boot To Gecko include new web APIs linking OS and device capabilities like text cameras Blue-tooth and NFC chips to content

The good news is that there is some uni-fication of sorts in pro-gress most notably Googlersquos Android 40 ndash aka Ice Cream Sand-wich ndash which brings the smartphone and tablet versions of Android into a single version

ldquoBy creating a sin-gle version of Android Google is making it easier for develop-ers to modify their apps and take ad-vantage of the larger screens of tablets which should stimulate the creation of apps designed for Android tabletsrdquo Nick Dillon devices and platforms ana-lyst for Ovum said in a research note

RIM has done something similar with the recent launch of its new flag-ship BBX platform which merges the BlackBerry 7 smartphone OS with the QNX OS for its PlayBook tablets BBX will support BlackBerry cloud services

Mobile OS landscape The goalposts keep changing for developers Also even Alibaba has one now

wwwtelecomasianet Telecom Asia OctNov 2011 13

COVer STOrY

Native apps are the de facto format for the current apps boom but thatrsquos ex-pected to change with the development of web apps

ndash apps hosted in the cloud that run on the browser and thanks to features within the HTML5 standard can func-tion like native apps even when the de-vice is offline Indeed web apps are at the heart of Googlersquos long-term mobile ambitions ndash so much so that its com-mission fee for apps developers is a paltry 5 (compared to Applersquos 30)

The appeal of web apps is dead simple theyrsquore OS-agnostic which means apps developers can reach a much broader base of users with-out having to write separate apps for

iOS Android BlackBerry WP7 Bada LiMo etc How broad Letrsquos put it this way according to ABI Research over 21 billion mobile devices will have HTML5 browsers by 2016 compared to 109 million last year

Even though the World Wide Web Consortium (W3C) says the HTML5 standard wonrsquot be finished until the end of the decade 25 HTML5 features currently in development will be in wide use within the next three to five years says ABI senior analyst Mark Beccue ldquoWe expect HTML5 features in categories such as graphics multi-media user interactions and data stor-age to be widely adopted sooner rather than laterrdquo

But that doesnrsquot mean web apps

will be competing with those plat-forms or with native apps in general Beccue adds ldquoHTML5 adoption is go-ing to accelerate because it will be a key differentiator in the smartphone OS war I believe that Apple will be the key driver of HTML5 and consequently a primary benefactor as wellrdquo

Ovumrsquos Nick Dillon adds that the rise of web apps wonrsquot spell the end of either native apps nor the app storefront model ldquoApp stores offer a familiar environment for consumer to discover download and purchase apps and we anticipate that the major-ity of app stores will list a mix of both HTML5 and native applications in their catalogues in the futurerdquo

Web apps

Apps for feature phones

HTML5-enabled cloud apps wonrsquot kill native apps or kill app stores

23 billion feature phones in 2016 = major apps opportunity

The apps phenomenon has been limited to smartphones and more recently tablets for fairly obvious reasons But for all the talk about increasing

smartphone adoption as lower-priced models hit the shelves feature phones will remain the largest handset segment for some time Ovum forecasts the number of feature phones worldwide to reach 23 billion in five years which will account for 63 of the market

Thatrsquos a huge untapped market for apps developers limited to smartphone OSs and demand is such that Ovum predicts the feature-phone apps rev-enues will top $1 billion by 2016

Part of that growth will come from larger handset manufacturers operators and third parties offering improved dis-tribution channels for feature phones which have been lacking until recently

says Nick Dillon of Ovum Also de-velopers will leverage existing software options like JavaME Nokia web widg-ets and Opera Mini widgets to develop simple web apps before moving on to HTML5 as more feature phones ship with compatible browsers (see above)

Meanwhile therersquos the ongoing work of the WAC (Wholesale Applica-tions Community) which opened shop in February with eight operators and 12000 apps WAC is creating APIs aimed at runtime environments and browsers with the goal of building an OS-agnos-tic wholesale storefront ecosystem and billing platform that can bring feature phones into the apps ecosystem

WAC has been quiet since its Febru-ary launch But last month WAC CEO Peters Suh said in a blog post that ldquoa number of WAC member operators in Asia are on track to launch services in

Q4 2011 across a range of devices and a number of application storefrontsrdquo

Suh also said that WAC is devel-oping its suite of operator supported network APIs (starting with in-app payments) ldquowhich are currently be-ing implemented by a select number of developers with the aim of opening this up to a wider audience over the coming monthsrdquo Suh said WACrsquos network API service offering would be available in early 2012

WACrsquos network API for in-app pay-ments is well-timed According to app marketplace analytics firm Distimo in-app purchases account for a whopping 72 of iPhone app revenues (compared to just 28 a year ago) Close to half of those in-app payments were via free apps More remarkably less than 5 of all iOS apps even offer in-app pur-chases

14 OctNov 2011 Telecom Asia wwwtelecomasianet

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 2: Telecom Asia 201111

As ian Te lecoms Bus iness and Techno log y l www te lecomas ia ne t l Oc tNov 2011

M2M barriers bull Enterprise opportunity bull Twisted radio waves bull Obstacles to consolidation

Taking Apps to the Next LevelThe biggest trends reshaping the apps sector

Inside

3G in VietnamVicious price competition makes 3G a commodity

Published By

Next wave of China vendorsA new class of makers is growing quickly and expanding overseas

Billing amp OSS Special Report

Subscribe to Asiarsquos best daily telecom news service wwwtelecomasianet

Contents Volume 22 Number 9 OctNov 2011

12

2337

16 3820

5

Coverstory

12 Taking apps to the next levelThe apps landscape itself is constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business

feATure

China Vendors

16 Next waveThe booming FTTH market is fueling the next-generation of telecom makers They are quickly targeting overseas market after finding success at home

M2M

18 Barriers to growthRegulators in SEA need to step in to remove roadblocks that are slowing M2M growth

Country focus Vietnam

20 faster but cheaperVicious price competition makes 3G a commodity Operators need to push back with branding to show value

BilliNg amp OSS SpeCiAl

Analyst View gartner

24 Narrowing the customer gapViewpoint

26 Adapting to business changeAnalyst View KpMg

28 indiarsquos new telecom policy shows visionCloud Services

30 Core requirements for iaaS

COluMNS

Tanner

5 No longer virtualInteractive displays such as digital signage will shift peoplersquos behaviors as they go mainstream forum

32 Opportunity in the enterpriseChinarsquos enterprises have been slow to mobilize their applications Will telcos move in to fill the gap

poulos points

37 More than the sum of its partsOffering web apps cloud services and security can be a powerful combination for telcos keen to add value to the pipe

2 OctNov 2011 Telecom Asia wwwtelecomasianet

Subscribe to Asiarsquos best daily telecom news service

wwwtelecomasianet

Managing Director Jonathan Bigelow jbigelowquestexasiacom

Group Editor Joseph Waring jwaringtelecomasianetGlobal Technology Editor John C Tanner tannertelecomasianetSenior Reporter Melissa Chua mchuaquestexasiacomOnline Editor Fiona Chau fchautelecomasianet

Art Director Dick Wong dwongtelecomasianetProduction amp Web Manager Pauline Wong pwongtelecomasianet

Group Publisher Gigi Chan gchantelecomasianet Regional Account Director APAC Jessie Cheung jcheungquestexasiacomAsst Sales amp Marketing Manager Candace Ho choquestexasiacom HR amp Admin Manager Janis Lam janislamquestexasiacomww

Accounting Manager Nancy Chung nchungquestexasiacom Accountant Ivy Chu ichuquestexasiacomAccounting Assistant Cannis Wong cwongquestexasiacom Accounts Clerk Mavis Chan mchanquestexasiacom

Circulation amp Distribution Director John Lam jlamquestexasiacomAssistant Circulation Manager Allie Mok amokquestexasiacom Senior Circulation Assistant Shipman Kwok skwokquestexasiacom

Contributors Canberra Dylan Bushell-Embling London Michael Carroll Tokyo Mike Galbraith

Editorial and publishing officeQuestex Asia Ltd13F 88 Hing Fat Street Causeway Bay Hong KongTel +852 2559 2772 Fax +852 2559 7002Website wwwtelecomasianetSubscription Hotline +852 2589 1313 Subscription Fax +852 2559 2015E-mail customer_servicetelecomasianet

Questex Media Group LLC275 Grove Street Newton MA 02466 Tel +1 617 219 8300President amp Chief Executive Officer Kerry C GumasExecutive VP amp Chief Financial Officer Tom CaridiExecutive Vice President Tony DrsquoAvinoExecutive Vice President Gideon Dean

TELECOM ASIA (ISSN 1681-181x)is circulated to telecommunications carriers (PTTs) and to the communications departments of businesses industries and others who use and operate commercial and private networks It is edited for planning engineering and operational managers responsible for the design installation marketing and mainte-nance of public or private telecom systems and networks

TELECOM ASIA (USPS 019-325) is published ten times yearly by Questex Asia Ltd 13F 88 Hing Fat Street Causeway Bay Hong Kong All copies distributed in PRC are free of charge Subscription rates 1 year HK$480 (Hong Kong only) US$86 (within Asia) and US$96 (outside Asia) 2 years HK$840 (Hong Kong only) US$152 (within Asia) and US$168 (outside Asia) SingleBack issue (if available) HK$50 per copy (Hong Kong only) US$9 (within Asia) and US$10 (outside Asia) plus US$5 handling charge per order Print-ed in Hong Kong Postage paid in Hong Kong US Mailing Agent International Mail Distribution Inc A Division of Security Delivery Service 52-09 31st Place Long Island City NY 11101-3229 Periodicals postage paid at Long Island City NY copy 2011 Questex Media Group LLC All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical including photocopy recording or any information storage or retrieval system without permission in writing from the publisher

POSTMASTER Send address changes to 13F 88 Hing Fat Street Causeway Bay Hong Kong

Total circulation 13959Qualified Circulation 12126 Non-Qualified Circulation 1833

Source Jun 2008 BPA Statement

SAleS CONTACTSAsia pacificGigi Chan group publisher Questex Asia LtdTel +852 2589 1338 fax +852 2559 7002 e-mail gchanquestexasiacom

Jessie Cheung Questex Asia LtdTel +852 2589 1310 fax +852 2559 7002 e-mail jcheungquestexasiacom

JapanYoshiomi Okamoto EMS IncTel +81 3 3327 5756email callemsworldodnnejpm

North America amp eMeAZena CoupeacuteTel +44 1923 852537 fax +44 1923 839765 email zcoupequestexcom

TaiwanVirginia Lee Spacemark Media ServicesTel +886 2 2522 2282 fax +886 2 2522 2281 email smediams5hinetnet

firstmile

6 Twisted tech Researchers boost spectrum capacity by twisting radio waves

Show report Asian Carriers Conference

34 Whatrsquos next Telcos struggle in search for new revenue streams

iNDuSTrY ANAlYSiS

7 Chinarsquos cellcos look to europe for growth8 regulations hold back move to consolidation in

india9 long-term impact of Thai floods on supply

chains to take weeks to assess

NeWS MAp

10 Asian telecoms this month Asia news round-up

regulArS

8 insight

33 Telecom Career

36 events Calendar

38 Backpage Briefing

ONLINE SECTIONS

wwwtelecomasianet HigHligHTS

Daily News Our broad coverage of Asian and global telecom news

wwwtelecomasianetnews

CommentaryIn-depth analysis from Telecom Asiarsquos senior editors and leading telecom research firms including Ovum Maravedis ACG Research and more

wwwtelecomasianetcommentary

BloggeryMissives on telecom trends and the wireless future from John Tanner Tony Poulos Joseph Waring and Michael Carroll

wwwtelecomasianetblog

BusinessWeek Online Tech coverage from the global business magazine

wwwtelecomasianetbwol

White Papers Vendors hold forth on latest technology concepts

wwwtelecomasianetwhitepapers

Events This yearrsquos trade shows and conferences

wwwtelecomasianetevents

Telecom Asia China editionIn-depth news analysis opinion white papers and case studies for telecom professionals and executives in China

httpcntelecomasianet

IndustryViewThe inside view from industry execs

wwwtelecomasianetindustryview

Follow us on

4th Annual Telecom Asia Readersrsquo Choice Awards

Country FocusGet the latest news and trends on China and India ndash the two fastest growing telecom markets in the world

China Focus ndash wwwtelecomasianetchinaIndia Focus ndash wwwtelecomasianetindia

Voting was closed on October 24 and winners will be announced at a cocktail ceremony on December 1 in Singapore

wwwtelecomasianetrca11

Top 10 handsetsTelecomasianet together with Gfk Asia brings you the monthly updates on the top 10 mobile phones and smartphones in Asia

wwwtelecomasianettagtop+10+handsets

Next-gen TVThis bi-weekly e-newsletter gives you updates and insights on the latest tech trends and developments from the TV sector covering everything from IPTV and mobile TV to video delivery and HD

wwwtelecomasianet

4 OctNov 2011 Telecom Asia wwwtelecomasianet

John C Tanner l TANNer

This monthrsquos cover story looks at five of the biggest trends technologies and developments that we believe will in-fluence the evolution of the mobile

app as we know it Due to the usual limitations of time and space of course itrsquos not a compre-hensive list And one development thatrsquos worth expanding on is the concept of the multi-screen experience ndash ie the ability to access content re-gardless of what screen itrsquos being accessed from (TV smartphone tablet whatever)

We do touch on that a little bit via In-Statrsquos prediction that five years from now tablets will be the primary video device for users even inside the home and that 60 of both smart-phone and tablet users will use those devices to watch OTT video at home That highlights an interesting shift in the concept of mobile video which was originally imagined as an on-the-go service but appears to be morphing into a re-definition of video consumption in the home

In-door consumptionWersquove already seen this in markets like

South Korea where mobile TV users watch a lot of their favorite dramas at home and oth-ers use their mobile TV devices as a companion device to the living room screen Thatrsquos now happening in other markets as well which is why Yoav Schreiber senior analyst for digital media infrastructure at Current Analysis re-cently observed that the biggest multi-screen video market opportunity is ldquoheavily focused on delivering video applications and lsquoTV ex-periencesrsquo for consumption on companion devices in the homerdquo including smartphones PCs and tablets

There are naturally challenges to achieving that particularly in terms of monetization (ie how do you package that and how do you ac-commodate advertisers) data caps (because video will eat those up faster than you can say ldquoDonrsquot touch that dialrdquo) and content protection (oh you know)

But the point is that more and more cus-tomers are already accustomed to interact-ing with multiple screens And thatrsquos going to impact how players across the value chain ap-proach new content services (which is one rea-son cloud-based content is generating so much

buzz at the moment) Another fascinating aspect thatrsquos worth

highlighting is the emergence of the ldquofifth screenrdquo

Digital signage has been touted for a while now as both another potential revenue stream for operators (think M2M) and a new way for advertisers to interact with consumers at spe-cific locations via technologies like Bluetooth QR codes augmented reality or even SMS

But look at digital signage within the cul-tural context of the multi-screen paradigm and it becomes something more than an animated billboard or a public TV panel

Jan Chipchase ndash an executive creative direc-tor of global insights at frog design and creator of the FuturePerfect blog ndash has pointed to Seoul as an experiment in this regard pondering in a recent article how peoplersquos perceptions and behaviors will shift as dynamic interactive dis-plays become the norm

For example local discount store retail chain Home Plus launched a ldquovirtualrdquo super-market ndash a screen in a subway station that dis-plays life-sized grocery items that customers can purchase online by snapping the QR code of each item Home Plus says its online sales have gone up 130 since it started trialing the store

Because the service involves logging and tracking consumer purchasing data Chipchase highlights the privacy implications of this kind of scenario in which ldquoScreens will read us we will not only read themrdquo Thatrsquos worth empha-sizing within the larger discussion of collect-ing and securing consumer data The fact that digital signage servers have been demonstrated to be as hackable as (say) Sony PlayStation net-work only highlights the point

But the broader point is that interactive digital signage is going to happen anyway ndashindeed itrsquos happening already from simple things like posting text messages and Tweets to Jumbotron screens to online shopping and AR apps that transform displays into interactive playgrounds As the technology and consumer behaviors evolve therersquos a fascinating oppor-tunity here to incorporate the fifth screen into coming cultural norm of the multi-screen ex-perienceTA

John C Tanner is global technology editor ndash jtannerquestexasiacom

The future of multi-screen culture

Look at digital signage within the cultural context of the multi-screen paradigm and it becomes something more than an animated billboard or a public TV panel

wwwtelecomasianet Telecom Asia OctNov 2011 5

Twisted tech could boost RF bandwidth 100x

I trsquos no secret that one of the biggest topics in the mobile broadband sec-tor is spectrum Mobile operators are not only looking to get more

spectrum for LTE ndash particularly in the coveted 700-MHz band ndash but also to get more out of spectrum they already have hence the growing interest in refarming the 1800-MHz bands for LTE by players like StarHub Telstra CSL and Indosat

Therersquos a number of technologi-cal solutions on the horizon to milk as much spectral efficiency out of spec-trum as possible from small cells to advanced MIMO solutions But a team of researchers in Europe have hit upon something a little more radical to boost capacity in a radio signal by ndash literally ndash giving it a twist

Research led by Italian astrophysicist Fabrizio Tamburini and Swedish physi-cist Bo Thideacute claims to have found a way to increase spectrum capacity by twisting radio waves The ldquotwistingrdquo part stems from the application of orbital angu-lar momentum (OAM) a century-old discovery which states that electromag-netic fields can transport not only energy and linear momentum but also angular momentum to radio beams OAM has already been applied to laser optics but not to RF technology until recently

As the abstract of the teamrsquos re-search paper explains ldquoWe have shown experimentally that it is possible to propagate and use the properties of twisted non-monochromatic incoherent radio waves to simultaneously transmit to infinity more radio channels on the same frequency band by encoding them in different orbital angular momentum states This novel radio technique al-lows the implementation of at least in principle an infinite number of channels on one and the same frequency even without using polarization or dense cod-ing techniquesrdquo

What that essentially means is that itrsquos possible to leverage OAM to twist a

radio wave into a vortex which creates distinctly shaped sub-frequencies that can be used to transmit and receive data without interfering with one another Result a potential 100x increase in band-width for wireless broadband (although Tamburini says that in theory an OAM vortex could generate sub-frequencies to infinity)

Tamburini and his team success-fully tested the technology in the field in Venice this past June beaming two radio signals from an offshore island to Piazza San Marco a little under 500 meters away

The next step will be to miniatur-ize the antenna technology to make it suitable for mobile devices and also to increase the distance of the signal

That wonrsquot be easy says Brough Turner founder of wireless mesh ISP netBlazr and former CTO and co-found-er of Natural MicroSystems and NMS Communications who noted on his blog that the researchers twisted their waves by bouncing an RF source off a spiral-formed reflector

ldquoThis is a cool experiment but yoursquod need a set of reflectors one per channel each with slightly different depths of their spirals to begin mak-ing wireless capacity gainsrdquo Turner observed ldquoTo make this commercially viable we need an antenna that can create several different orders of vortex in the same physical spacerdquo

But once thatrsquos accomplished Turner added ldquothe resulting separate channels could be used directly with MIMO elec-tronics and an antenna that fits in limited space much as 2x2 MIMO systems use horizontally and vertically polarized an-tennas that fit in the same physical spacerdquo

Turner said that while we probably wonrsquot be seeing 100x wireless capacity gains anytime soon the vorticity effect could be used to create up to 8x gains within the next decade ldquoThis is an area to watchrdquo TA

Vacancy rates drop sharply

STATSNAP

Demand for colocation will continue to grow at a runaway pace defying the fragile global economic climate researchers believe New data from TeleGe-ography shows that available colocation space is shrinking rapidly in several major markets

In Washington DC for example only 16 of retail colocation space is currently vacant with available space falling 36 in the 12 months to September 2011 Vacancy rates fell 26 in London over the same period

Retail colocation providers are scrambling to build new sites to keep up with this demand

Hong Kong providers alone have added more than 400000 square feet of new space over the past two years

In New York more than 13 million square feet of new retail colocation space has been constructed over this time

The majority of the providers surveyed by the research firm ndash including more than 70 in Hong Kong and 80 in Seattle ndash also indicated that they have further growth ambitions

ldquoItrsquos unlikely that the pace of expansion will slow anytime soonrdquo TeleGeography analyst Jon Hjembo said ldquoWhile operators are adding capacity vacancy rates in a number of metro markets we surveyed remain under 25rdquo

Colocation demand soars in major markets

firST Mile edited by John C Tanner

Source TeleGeography

6 OctNov 2011 Telecom Asia wwwtelecomasianet

iNDuSTrY ANAlYSiS

Chinese operators look west for growth

Two of Chinarsquos leading telcos are boosting their global expansion ambitions through partnerships with leading European operators

but they are focusing on very different areas to achieve those goals

China Telecom is allying with France Telecom in a deal covering IP-based VPN services while rival China Unicom has paired with Telefonicarsquos new digital division to develop global machine-to-machine (M2M) standards

The partnership ndash one of the first by the new Telefonica business ndash pri-marily covers developing cross-border technical specifications for M2M com-munications based on jointly produced and maintained platforms However it also provides opportunities for the pair to jointly buy equipment test stand-ards and conduct thorough market analysis

Each carrier will market the M2M platforms to players in markets including smart transport energy connected cars and smart cities The pair may also open the door to additional operators to boost the global potential of their standards and platforms

Telecomrsquos deal with France Telecom is similar in depth but covers access to and management of IP-based VPNs for business subscribers in domestic mar-kets and parts of Africa and the Middle East where France Telecom currently operates

A key element of the collabora-tion is an agreement to jointly develop networks The work has the potential to improve links between Europe Asia Pacific and Africa with the pair agreeing to explore new terrestrial and submarine cable links between the three continents

Telecom chairman Wang Xiaochu says working with France Telecom is ldquoan important part of the companyrsquos foreign

cooperation strategyrdquo and will help it re-alize ldquothe ambition of servicing custom-ers globallyrdquo

Wangrsquos ambition is also served by a Wi-Fi roaming element of the deal which sees France Telecom offer China Telecom customers access to its network of hotspots in Europe and vice-versa

France Telecom chief Steacutephane Rich-

ard was pleased to have closed a deal with Telecom noting it is an ldquoimportant step forwardrdquo for his firm

ldquoBoth parties are set to benefit from close cooperation by enabling each other to provide better customer access and services in our respective regionsrdquo Rich-ard says TA

ndash Michael Carroll

wwwtelecomasianet Telecom Asia OctNov 2011 7

iNDuSTrY ANAlYSiS

gtgt Mobile security spend to hit $3b by 2015Investments in mobile security will reach $7598 billion in 2011 and climb 44 per year through to 2015 Calanys estimates that only 4 of smartphones and tablets had some kind of mobile protection installed in 2010 but that this will rise to 20 by 2015 Mobile client security ndash such as anti-virus firewall messaging security web threat security VPN functionality and encryption ndash will outperform the market with an expected average growth of 546 per year until 2015 While North America has traditionally led mobile security adoption due largely to the presence of data compliance regulations investments in Western Europe are poised to rise sharply For Asia Latin America and MEA the boom will start in 2013

Canalys mobile security analysis wwwcanalyscom

gtgt LTE uptake a slow burnThe worldrsquos mobile operators are mostly taking a quiet approach to deploying LTE networks but as the ecosystem progresses subscribers to FD- or TD-LTE networks will near 80 million by the end of 2013 As a result of strong operator demand devices for both flavors of LTE are expected to flood the market over the next few years ABI Research predicts This inflow will drive subscriber interest and adoption Spectrum constraints are influencing LTE deployment decisions in many markets ndash as is the case in Saudi Arabia where all three operators recently launched TD-LTE services using 25-GHz spectrum originally intended for Wimax Singaporersquos M1 has likewise deployed FDD LTE on the 18-GHz band first slated for 3G usage

4G subscriber device and networks market datawwwabiresearchcom

gtgt DPI equipment spend to poised tripleThe service provider deep packet inspection equipment market will more than triple from 2011 to 2015 by which time global sales will top $16 billion The runaway growth is being driven by mobile operatorsrsquo eagerness to enable more granular traffic management and the flexibility to provide tiered or value-added services To accommodate these demands analytics on the subscriberrsquos services applications and behavior will become an integral part of DPI solutions over this period The market is in for particularly strong growth in APACrsquos emerging markets as operators encounter the congestion issues accompanying rapid subscriber growth

Service provider deep packet inspection products wwwinfoneticscompr20111H11-DPI-Deep-Packet-Inspection-Market-Highlightsasp

gtgt Mobile VoIP to pose growing threatRelationships between mobile operators and VoIP service providers are likely to remain frosty through to at least 2016 Juniper Research estimates that smartphone apps will account for four-fifths of the worldrsquos 640 million mobile VoIP users by this time and partnerships between cellcos and VoIP companies will remain rare VoIP specialists will instead pursue partnerships within the movers and shakers in social media Uptake of mobile VoIP services will be faster in the developed markets as there is a direct correlation between adoption and the rollout of 3G or 4G networks

Mobile voice amp video callingwwwjuniperresearchcom

India paves road to consolidation

After two years of stagnating earnings and cutthroat competition consolidation in Indiarsquos crowded mo-bile sector appears all but inevitable but is being held back by existing regulation

The Indian government is well aware that a 14-operator market is shaping up to be unsustainable and in October took several steps to facilitate mergers ndash but at the same time threatened action that would make life even more difficult for telcos

The nationrsquos Department of Telecom (DoT) published a draft of the New Telecom Policy a proposed far-reaching overhaul of existing regulations (See Analyst View on page xx)

Among numerous changes the government has suggested doing away with a restriction on mergers if it would result in the number of competing operators in a telecom circle falling below six proposing instead to base the minimum number of operators on the population in a given area

The DoT earlier suggested introducing an exit policy for newer operators including a possible mechanism for the government to buy back spectrum licenses for those wishing to give up on the sector

But even as the department moved to help reduce the number of operators it raised objections to initiatives some operators have taken on their own to address the problems caused by overcrowding

The strong demand for already-in-short-supply 3G spec-trum during last yearrsquos auctions ensured no operator ended up with pan-Indian spectrum In a bid to address this major players Bharti Airtel Vodafone and Idea Cellular forged a 3G roaming deal that would allow them to use each othersrsquo networks in areas where they lack spectrum

But in October the DoT threatened to object to this deal on the grounds that it may violate license conditions The operators dispute this claiming that their permits allow roaming agreements

Operatorsrsquo financial problems would also be exacerbated by a proposal in the New Telecom Policy to scrap inter-circle roaming charges forcing operators to charge a single rate for calls anywhere in India

Some analysts estimate that operator could lose a com-bined $400 million in revenue from such a move

The department in October also reportedly sent notices to five major operators ndash Bharti Vodafone Idea Reliance and Tata Teleservices ndash accusing them of misreporting revenue to pay lower license fees The DoT wants operators to pay fees based on revenue figures derived by the comptroller and auditor general of India All five dispute the charges TA

ndash Dylan Bushell-Embling

8 OctNov 2011 Telecom Asia wwwtelecomasianet

INSIGHT ONE MONTHrsquoS TELECOM RESEARCH

The floods that have ravaged much of central Thailand have left the countryrsquos industrial estates in ruins Heavy indus-

try especially the automotive sector has taken a huge hit with optimistic estimates saying it will be at least three months before manufacturing can resume

The hard drive industry is devastated with Western Digital the worldrsquos largest drive maker seeing its Thailand opera-tions now under a sea of mud and water Toshiba Canon Sony Nikon and a whole raft of other names also have been af-fected Even Applersquos Tim Cook has said that the supply chain disruptions will hit Apple hard

But the real damage will not be known until the often secretive supply chains are exposed as the flood waters finally subside in a few weeksrsquo time

One company Stars Microelectronics clearly illustrates the nature of the prob-lem as it threatens to derail many high-end touch-screen handset shipments

Stars is a specialist in capacitative screens and surfaces supplying finished touch screen assemblies to the leading handset makers in Taiwan and Korea and even white capacitative clickwheels used in a certain companyrsquos music player Many high-end touchpads for notebooks are also assembled there and more re-cently have also expanded into tough-ened glass capacitative screens

The company does not make the ca-pacitative films nor the circuitry nor the glass But it takes the glass from Europe the capacitative layer from Japan and the chips from everywhere in the world and assembles them into a sub-component that is in turn assembled into a phone somewhere else The added value in the chain is speed flexibility and the ability to run smaller batches than would other-wise be the case

Then there are countless Japanese chip makers that have seen their factories and cleanrooms flooded to the ceil-

Measuring the damage

ing Many have broken down crying in public partly out of despair partly out of anger at conflicting messages from the authorities One minute the Prime Minister was reassuring investors that the industrial estates would be protected the next people were running for their lives as a wall of water bore down on them

Come back in a monthThe outlook is not good Some of the

worst hit universities have postponed the beginning of term until the end of No-vember and even that may be optimistic given the scale of repairs needed

On the other hand the lack of information squabbling politicians and general mistrust of media has led to a boom in social network usage and cel-lular traffic as people shun government propaganda and instead turn to rely on new media and first-hand accounts from Facebook and Twitter

Frost amp Sullivan has said that Face-book growth originally forecast at 132 year on year will increase to 150 be-cause of the floods making Thailand the third fastest growing Facebook country after India Currently 17 of its popula-tion of 65 million is on Facebook

Leading telco AIS has seen traffic jump by 70 Traditional copper infra-

structure has not fared well under the on-slaught of water but the cellular networks have proven quite resilient AIS has lost only 67 of its 13000 base stations as of the last week of October If anything the redundant networks among the three ma-jor operators borne out of mistrust and inability to share infrastructure rather than by design has managed to keep most of the flood victims connected

Once the flood waters recede the question is what will be rebuilt and how will the global tech giants reassess risk planning in this day and age of global warming and extreme weather patterns

And what of planning the next-generation networks Thailand has like many other countries been moving toward a national broadband network for backhaul run by the incumbent state enterprise telcos Cynics say that is be-cause successive governments are quoting national security concerns as an excuse to create a monopoly on backhaul and milk the industry now that the visible retail sector will soon need to be liberalized But would this crisis change the minds of her leaders to a more distributed if more expensive series of redundant networks Or will the next natural disaster leave everyone cut off in the dark TA

ndash Don Sambandaraksa

wwwtelecomasianet Telecom Asia OctNov 2011 9

asian telecoms this month

BeijingHuawei is blocked from bidding for another US tender ndash this time for a public safety network ndash due to alleged national security concerns

The US ambassador to the WTO meanwhile calls on China to explain its criteria for blocking access to some for-eign websites raising concerns about censorshiprsquos impact on international competition

China Telecom and France Telecom strike a VPN and Wi-Fi sharing deal while China Unicom and Telefonica team up for M2M

ZTE moves to sell its controlling stake in Congo-Chine Telecom to Orange to divest the distraction from its core infrastructure business and avoid competing with its own customers

BangkokSevere flooding in Thailand disrupts fixed broadband networks and threatens to do the same to the component supply chain but mobile networks stand up remark-ably well

AIS puts the final touches on plans to offer roaming services to its customers through state-owned TOTrsquos 3G network

Hong kongPCCW Solutions wins a $465m deal with the Social Welfare Department to re-place the aging Computerized Social Security System

DelHiThe telecom ministry unveils its proposed new telecom policy including a plan to scrap inter-circle domestic roaming charges

The ministry blocks Qualcommrsquos petition for an ISP license to ac-company the BWA spectrum it paid $1b for last year but later re-neges after Qualcomm challenges the decision

The dispute between Norwayrsquos Tel-enor and JV partner Unitech over the management of GSM operator Uninor escalates

ZTE confirms it has won a deal for part of a TD-LTE rollout by Bharti Airtel but the operator is rumored to be planning to divide the remaining deals across multi-ple vendors

DHakaTelenor disputes a $400m tax bill from the government arising from a dispute covering subsidiary Grameenphonersquos revenue share on the sale of SIM cards

10 OctNov 2011 Telecom Asia wwwtelecomasianet

movements

Seoul KT is revealed to be in the final stages of talks to acquire a 20 stake in South Africarsquos Telkom for around $582m

z The iPhone 4S initially disappoints pundits with its similarity to the prior model but goes on to shatter Applersquos own launch-weekend sales records

z The 3GPP industry body 3G Americas claims that the next evolution of HSPA could push the peak theoretical transfer rate up to 336 Mbps

z Apple succeeds in stymieing Samsungrsquos plans to launch the Galaxy Tab 101 in Australia as Samsung is said to pip Apple as the top-selling smartphone vendor in the previous quarter

z Nokia swings to a pre-tax loss of over $200m as an increase in low-end phone sales fail to make up for a continued steep decline in smartphone sales

z Ericsson reports marginally higher profit for the third quarter and higher sales but its cash flow plummets due to its underperforming JVs

z Sony buys out Ericssonrsquos half of Sony-Ericsson for $15b

z RIM is hit with a three-day messaging service outage that at various times affects parts of the US Europe Africa India and the Middle East

z Chipmakers Sequans and Fujitsu Semiconductor forge an alli-ance to develop LTE baseband chips with multimode 2G3GLTE RF transceivers

z The GSMA estimates that the APAC mobile market will be worth $447b by 2020 accounting for the lionrsquos share of the worldrsquos $12tr market

z In another long-term prediction Gartner suggests that tablets could replace smartphones as the go-to device for consumers to have in their pockets in five to ten years

z Fitch Ratings cuts its outlook on two Italian operators ndash Wind and Telecom Italia ndash as the countryrsquos debt woes seep through to local busi-nesses

z The Mobile Entertainment Forum claims that more consumers ac-cess mobile internet services on a daily basis than browse on fixed-line connections

z Yahoo takes aim at the feature-phone market in emerging Asian nations with partnerships to embed its internet services into mobile chipsets bound for the devices

z Virgin Media commences a trial of 15-GHz broadband using new cable access technology from Cisco suggesting the war between cable-cos and telcos for subscribers is heating up

z Texas Instruments provides a lower than anticipated forecast for Q4 sales in an indication that the chip industry is still facing financial problems

z Google indicates it may complement its 1-Gbps fiber network pilot in parts of the US with a similar trial in a European country

z IBM picks sales head Virginia Rometty to become the companyrsquos first female CEO in its 100-year history

SyDneyTelstra shareholders reluctantly accept an $11b deal with the govern-ment to phase out the operatorrsquos fixed-line wholesale business and migrate its fixed-line customers to the NBN

Commonwealth Bank plans to introduce an NFC payment service for Android and iOS devices integrating an NFC chip into special cases for phones that lack an internal one

SingaporeM1 and Verizon Business complete a two-year joint fiber rollout project in northern and western Singapore

kuala lumpurP1 becomes Malaysiarsquos third operator ndash after Celcom and Maxis ndash to sign a deal to offer services on Telekom Malaysiarsquos open-access HSBB network

mumBaiStruggling state-owned BSNL asks to be let out of its mandate to

deploy Wimax ndash except in rural areas ndash in a market due to be dominated by TD-LTE

TokyoKDDI reports a 48 gain in Q3 profit but this is not enough for the operator to revise its forecast of a 2 decline for the full year

NTT Com is said to be planning to invest close to $16b to expand its cloud computing capabilities outside of Japan

manila Conglomerate San Miguel arranges to pay around $35m to up its stake in Eastern Telecom to a controlling 78 from an effective 40

PLDT buys a controlling stake in mobile rival Digitel in a deal worth around $16b after finally convincing regulators to accept the deal by offering to give up 10-MHz of spectrum

wwwtelecomasianet Telecom Asia OctNov 2011 11

COVer STOrY

Taking apps to the next levelDemand for mobile apps shows no sign of letting up over the next five years but the apps landscape itself is a work in progress constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business from tablets and mobile OS developments to web apps and augmented reality

John C Tanner

12 OctNov 2011 Telecom Asia wwwtelecomasianet

More coverage of

Mobile Apps

A huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another application

The fragmented mobile OS landscape that apps develop-ers must navigate is in flux as existing OS platforms are be-ing combined and even aban-

doned and new ones keep popping upThis year alone wersquove seen HP aban-

don its WebOS platform while both Nokia and Intel have abandoned the MeeGo OS project Intel is now backing Tizen a new open-source OS from the Linux Foundation and the LiMo Foun-dation that recycles some components of MeeGo and is based on the Samsung Linux Platform that LiMo uses for its open-source mobile OS

Meanwhile speculation about the fate of WebOS ndash and the possibility of companies like Facebook and Amazon taking it over ndash highlights the desire by content-driven companies to gain more control of the mobile OS platform rath-er than ride on top of someone elsersquos

ABI senior analyst Aapo Markkanen says Facebook needs its own OS because of the growing ubiquity of mobile so-cial networking ldquoA huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another applicationrdquo

Other web players are already doing just that In July Chinarsquos Alibaba Cloud Computing unveiled its own cloud-based mobile OS ndash dubbed Aliyun OS ndash as well as the first device that will run on it the K-Touch Cloud-Smart Phone W700 Aliyun supports Android apps web apps and cloud services such as email search weather updates and mappingnavigation tools though the ultimate goal for Alibaba is to develop a smartphone strategy for its e-commerce business

Also in July Mozilla revealed plans to develop an OS called Boot to Gecko which will be based on the Gecko en-

and both native and HTML5 developer environments as well as BlackBerry Runtime for Android Apps

The bad news for developers says Ovum chief telecom analyst Jan Daw-son is ldquothe adoption of QNX across the entire line in the coming months and years also means that RIM is leaving its traditional BlackBerry developers high and dryrdquo Dawson says existing develop-ers will have no choice but to start from scratch with an entirely new develop-ment environment

gine that drives its Fire-fox browser Develop-ment projects for Boot To Gecko include new web APIs linking OS and device capabilities like text cameras Blue-tooth and NFC chips to content

The good news is that there is some uni-fication of sorts in pro-gress most notably Googlersquos Android 40 ndash aka Ice Cream Sand-wich ndash which brings the smartphone and tablet versions of Android into a single version

ldquoBy creating a sin-gle version of Android Google is making it easier for develop-ers to modify their apps and take ad-vantage of the larger screens of tablets which should stimulate the creation of apps designed for Android tabletsrdquo Nick Dillon devices and platforms ana-lyst for Ovum said in a research note

RIM has done something similar with the recent launch of its new flag-ship BBX platform which merges the BlackBerry 7 smartphone OS with the QNX OS for its PlayBook tablets BBX will support BlackBerry cloud services

Mobile OS landscape The goalposts keep changing for developers Also even Alibaba has one now

wwwtelecomasianet Telecom Asia OctNov 2011 13

COVer STOrY

Native apps are the de facto format for the current apps boom but thatrsquos ex-pected to change with the development of web apps

ndash apps hosted in the cloud that run on the browser and thanks to features within the HTML5 standard can func-tion like native apps even when the de-vice is offline Indeed web apps are at the heart of Googlersquos long-term mobile ambitions ndash so much so that its com-mission fee for apps developers is a paltry 5 (compared to Applersquos 30)

The appeal of web apps is dead simple theyrsquore OS-agnostic which means apps developers can reach a much broader base of users with-out having to write separate apps for

iOS Android BlackBerry WP7 Bada LiMo etc How broad Letrsquos put it this way according to ABI Research over 21 billion mobile devices will have HTML5 browsers by 2016 compared to 109 million last year

Even though the World Wide Web Consortium (W3C) says the HTML5 standard wonrsquot be finished until the end of the decade 25 HTML5 features currently in development will be in wide use within the next three to five years says ABI senior analyst Mark Beccue ldquoWe expect HTML5 features in categories such as graphics multi-media user interactions and data stor-age to be widely adopted sooner rather than laterrdquo

But that doesnrsquot mean web apps

will be competing with those plat-forms or with native apps in general Beccue adds ldquoHTML5 adoption is go-ing to accelerate because it will be a key differentiator in the smartphone OS war I believe that Apple will be the key driver of HTML5 and consequently a primary benefactor as wellrdquo

Ovumrsquos Nick Dillon adds that the rise of web apps wonrsquot spell the end of either native apps nor the app storefront model ldquoApp stores offer a familiar environment for consumer to discover download and purchase apps and we anticipate that the major-ity of app stores will list a mix of both HTML5 and native applications in their catalogues in the futurerdquo

Web apps

Apps for feature phones

HTML5-enabled cloud apps wonrsquot kill native apps or kill app stores

23 billion feature phones in 2016 = major apps opportunity

The apps phenomenon has been limited to smartphones and more recently tablets for fairly obvious reasons But for all the talk about increasing

smartphone adoption as lower-priced models hit the shelves feature phones will remain the largest handset segment for some time Ovum forecasts the number of feature phones worldwide to reach 23 billion in five years which will account for 63 of the market

Thatrsquos a huge untapped market for apps developers limited to smartphone OSs and demand is such that Ovum predicts the feature-phone apps rev-enues will top $1 billion by 2016

Part of that growth will come from larger handset manufacturers operators and third parties offering improved dis-tribution channels for feature phones which have been lacking until recently

says Nick Dillon of Ovum Also de-velopers will leverage existing software options like JavaME Nokia web widg-ets and Opera Mini widgets to develop simple web apps before moving on to HTML5 as more feature phones ship with compatible browsers (see above)

Meanwhile therersquos the ongoing work of the WAC (Wholesale Applica-tions Community) which opened shop in February with eight operators and 12000 apps WAC is creating APIs aimed at runtime environments and browsers with the goal of building an OS-agnos-tic wholesale storefront ecosystem and billing platform that can bring feature phones into the apps ecosystem

WAC has been quiet since its Febru-ary launch But last month WAC CEO Peters Suh said in a blog post that ldquoa number of WAC member operators in Asia are on track to launch services in

Q4 2011 across a range of devices and a number of application storefrontsrdquo

Suh also said that WAC is devel-oping its suite of operator supported network APIs (starting with in-app payments) ldquowhich are currently be-ing implemented by a select number of developers with the aim of opening this up to a wider audience over the coming monthsrdquo Suh said WACrsquos network API service offering would be available in early 2012

WACrsquos network API for in-app pay-ments is well-timed According to app marketplace analytics firm Distimo in-app purchases account for a whopping 72 of iPhone app revenues (compared to just 28 a year ago) Close to half of those in-app payments were via free apps More remarkably less than 5 of all iOS apps even offer in-app pur-chases

14 OctNov 2011 Telecom Asia wwwtelecomasianet

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 3: Telecom Asia 201111

Subscribe to Asiarsquos best daily telecom news service wwwtelecomasianet

Contents Volume 22 Number 9 OctNov 2011

12

2337

16 3820

5

Coverstory

12 Taking apps to the next levelThe apps landscape itself is constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business

feATure

China Vendors

16 Next waveThe booming FTTH market is fueling the next-generation of telecom makers They are quickly targeting overseas market after finding success at home

M2M

18 Barriers to growthRegulators in SEA need to step in to remove roadblocks that are slowing M2M growth

Country focus Vietnam

20 faster but cheaperVicious price competition makes 3G a commodity Operators need to push back with branding to show value

BilliNg amp OSS SpeCiAl

Analyst View gartner

24 Narrowing the customer gapViewpoint

26 Adapting to business changeAnalyst View KpMg

28 indiarsquos new telecom policy shows visionCloud Services

30 Core requirements for iaaS

COluMNS

Tanner

5 No longer virtualInteractive displays such as digital signage will shift peoplersquos behaviors as they go mainstream forum

32 Opportunity in the enterpriseChinarsquos enterprises have been slow to mobilize their applications Will telcos move in to fill the gap

poulos points

37 More than the sum of its partsOffering web apps cloud services and security can be a powerful combination for telcos keen to add value to the pipe

2 OctNov 2011 Telecom Asia wwwtelecomasianet

Subscribe to Asiarsquos best daily telecom news service

wwwtelecomasianet

Managing Director Jonathan Bigelow jbigelowquestexasiacom

Group Editor Joseph Waring jwaringtelecomasianetGlobal Technology Editor John C Tanner tannertelecomasianetSenior Reporter Melissa Chua mchuaquestexasiacomOnline Editor Fiona Chau fchautelecomasianet

Art Director Dick Wong dwongtelecomasianetProduction amp Web Manager Pauline Wong pwongtelecomasianet

Group Publisher Gigi Chan gchantelecomasianet Regional Account Director APAC Jessie Cheung jcheungquestexasiacomAsst Sales amp Marketing Manager Candace Ho choquestexasiacom HR amp Admin Manager Janis Lam janislamquestexasiacomww

Accounting Manager Nancy Chung nchungquestexasiacom Accountant Ivy Chu ichuquestexasiacomAccounting Assistant Cannis Wong cwongquestexasiacom Accounts Clerk Mavis Chan mchanquestexasiacom

Circulation amp Distribution Director John Lam jlamquestexasiacomAssistant Circulation Manager Allie Mok amokquestexasiacom Senior Circulation Assistant Shipman Kwok skwokquestexasiacom

Contributors Canberra Dylan Bushell-Embling London Michael Carroll Tokyo Mike Galbraith

Editorial and publishing officeQuestex Asia Ltd13F 88 Hing Fat Street Causeway Bay Hong KongTel +852 2559 2772 Fax +852 2559 7002Website wwwtelecomasianetSubscription Hotline +852 2589 1313 Subscription Fax +852 2559 2015E-mail customer_servicetelecomasianet

Questex Media Group LLC275 Grove Street Newton MA 02466 Tel +1 617 219 8300President amp Chief Executive Officer Kerry C GumasExecutive VP amp Chief Financial Officer Tom CaridiExecutive Vice President Tony DrsquoAvinoExecutive Vice President Gideon Dean

TELECOM ASIA (ISSN 1681-181x)is circulated to telecommunications carriers (PTTs) and to the communications departments of businesses industries and others who use and operate commercial and private networks It is edited for planning engineering and operational managers responsible for the design installation marketing and mainte-nance of public or private telecom systems and networks

TELECOM ASIA (USPS 019-325) is published ten times yearly by Questex Asia Ltd 13F 88 Hing Fat Street Causeway Bay Hong Kong All copies distributed in PRC are free of charge Subscription rates 1 year HK$480 (Hong Kong only) US$86 (within Asia) and US$96 (outside Asia) 2 years HK$840 (Hong Kong only) US$152 (within Asia) and US$168 (outside Asia) SingleBack issue (if available) HK$50 per copy (Hong Kong only) US$9 (within Asia) and US$10 (outside Asia) plus US$5 handling charge per order Print-ed in Hong Kong Postage paid in Hong Kong US Mailing Agent International Mail Distribution Inc A Division of Security Delivery Service 52-09 31st Place Long Island City NY 11101-3229 Periodicals postage paid at Long Island City NY copy 2011 Questex Media Group LLC All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical including photocopy recording or any information storage or retrieval system without permission in writing from the publisher

POSTMASTER Send address changes to 13F 88 Hing Fat Street Causeway Bay Hong Kong

Total circulation 13959Qualified Circulation 12126 Non-Qualified Circulation 1833

Source Jun 2008 BPA Statement

SAleS CONTACTSAsia pacificGigi Chan group publisher Questex Asia LtdTel +852 2589 1338 fax +852 2559 7002 e-mail gchanquestexasiacom

Jessie Cheung Questex Asia LtdTel +852 2589 1310 fax +852 2559 7002 e-mail jcheungquestexasiacom

JapanYoshiomi Okamoto EMS IncTel +81 3 3327 5756email callemsworldodnnejpm

North America amp eMeAZena CoupeacuteTel +44 1923 852537 fax +44 1923 839765 email zcoupequestexcom

TaiwanVirginia Lee Spacemark Media ServicesTel +886 2 2522 2282 fax +886 2 2522 2281 email smediams5hinetnet

firstmile

6 Twisted tech Researchers boost spectrum capacity by twisting radio waves

Show report Asian Carriers Conference

34 Whatrsquos next Telcos struggle in search for new revenue streams

iNDuSTrY ANAlYSiS

7 Chinarsquos cellcos look to europe for growth8 regulations hold back move to consolidation in

india9 long-term impact of Thai floods on supply

chains to take weeks to assess

NeWS MAp

10 Asian telecoms this month Asia news round-up

regulArS

8 insight

33 Telecom Career

36 events Calendar

38 Backpage Briefing

ONLINE SECTIONS

wwwtelecomasianet HigHligHTS

Daily News Our broad coverage of Asian and global telecom news

wwwtelecomasianetnews

CommentaryIn-depth analysis from Telecom Asiarsquos senior editors and leading telecom research firms including Ovum Maravedis ACG Research and more

wwwtelecomasianetcommentary

BloggeryMissives on telecom trends and the wireless future from John Tanner Tony Poulos Joseph Waring and Michael Carroll

wwwtelecomasianetblog

BusinessWeek Online Tech coverage from the global business magazine

wwwtelecomasianetbwol

White Papers Vendors hold forth on latest technology concepts

wwwtelecomasianetwhitepapers

Events This yearrsquos trade shows and conferences

wwwtelecomasianetevents

Telecom Asia China editionIn-depth news analysis opinion white papers and case studies for telecom professionals and executives in China

httpcntelecomasianet

IndustryViewThe inside view from industry execs

wwwtelecomasianetindustryview

Follow us on

4th Annual Telecom Asia Readersrsquo Choice Awards

Country FocusGet the latest news and trends on China and India ndash the two fastest growing telecom markets in the world

China Focus ndash wwwtelecomasianetchinaIndia Focus ndash wwwtelecomasianetindia

Voting was closed on October 24 and winners will be announced at a cocktail ceremony on December 1 in Singapore

wwwtelecomasianetrca11

Top 10 handsetsTelecomasianet together with Gfk Asia brings you the monthly updates on the top 10 mobile phones and smartphones in Asia

wwwtelecomasianettagtop+10+handsets

Next-gen TVThis bi-weekly e-newsletter gives you updates and insights on the latest tech trends and developments from the TV sector covering everything from IPTV and mobile TV to video delivery and HD

wwwtelecomasianet

4 OctNov 2011 Telecom Asia wwwtelecomasianet

John C Tanner l TANNer

This monthrsquos cover story looks at five of the biggest trends technologies and developments that we believe will in-fluence the evolution of the mobile

app as we know it Due to the usual limitations of time and space of course itrsquos not a compre-hensive list And one development thatrsquos worth expanding on is the concept of the multi-screen experience ndash ie the ability to access content re-gardless of what screen itrsquos being accessed from (TV smartphone tablet whatever)

We do touch on that a little bit via In-Statrsquos prediction that five years from now tablets will be the primary video device for users even inside the home and that 60 of both smart-phone and tablet users will use those devices to watch OTT video at home That highlights an interesting shift in the concept of mobile video which was originally imagined as an on-the-go service but appears to be morphing into a re-definition of video consumption in the home

In-door consumptionWersquove already seen this in markets like

South Korea where mobile TV users watch a lot of their favorite dramas at home and oth-ers use their mobile TV devices as a companion device to the living room screen Thatrsquos now happening in other markets as well which is why Yoav Schreiber senior analyst for digital media infrastructure at Current Analysis re-cently observed that the biggest multi-screen video market opportunity is ldquoheavily focused on delivering video applications and lsquoTV ex-periencesrsquo for consumption on companion devices in the homerdquo including smartphones PCs and tablets

There are naturally challenges to achieving that particularly in terms of monetization (ie how do you package that and how do you ac-commodate advertisers) data caps (because video will eat those up faster than you can say ldquoDonrsquot touch that dialrdquo) and content protection (oh you know)

But the point is that more and more cus-tomers are already accustomed to interact-ing with multiple screens And thatrsquos going to impact how players across the value chain ap-proach new content services (which is one rea-son cloud-based content is generating so much

buzz at the moment) Another fascinating aspect thatrsquos worth

highlighting is the emergence of the ldquofifth screenrdquo

Digital signage has been touted for a while now as both another potential revenue stream for operators (think M2M) and a new way for advertisers to interact with consumers at spe-cific locations via technologies like Bluetooth QR codes augmented reality or even SMS

But look at digital signage within the cul-tural context of the multi-screen paradigm and it becomes something more than an animated billboard or a public TV panel

Jan Chipchase ndash an executive creative direc-tor of global insights at frog design and creator of the FuturePerfect blog ndash has pointed to Seoul as an experiment in this regard pondering in a recent article how peoplersquos perceptions and behaviors will shift as dynamic interactive dis-plays become the norm

For example local discount store retail chain Home Plus launched a ldquovirtualrdquo super-market ndash a screen in a subway station that dis-plays life-sized grocery items that customers can purchase online by snapping the QR code of each item Home Plus says its online sales have gone up 130 since it started trialing the store

Because the service involves logging and tracking consumer purchasing data Chipchase highlights the privacy implications of this kind of scenario in which ldquoScreens will read us we will not only read themrdquo Thatrsquos worth empha-sizing within the larger discussion of collect-ing and securing consumer data The fact that digital signage servers have been demonstrated to be as hackable as (say) Sony PlayStation net-work only highlights the point

But the broader point is that interactive digital signage is going to happen anyway ndashindeed itrsquos happening already from simple things like posting text messages and Tweets to Jumbotron screens to online shopping and AR apps that transform displays into interactive playgrounds As the technology and consumer behaviors evolve therersquos a fascinating oppor-tunity here to incorporate the fifth screen into coming cultural norm of the multi-screen ex-perienceTA

John C Tanner is global technology editor ndash jtannerquestexasiacom

The future of multi-screen culture

Look at digital signage within the cultural context of the multi-screen paradigm and it becomes something more than an animated billboard or a public TV panel

wwwtelecomasianet Telecom Asia OctNov 2011 5

Twisted tech could boost RF bandwidth 100x

I trsquos no secret that one of the biggest topics in the mobile broadband sec-tor is spectrum Mobile operators are not only looking to get more

spectrum for LTE ndash particularly in the coveted 700-MHz band ndash but also to get more out of spectrum they already have hence the growing interest in refarming the 1800-MHz bands for LTE by players like StarHub Telstra CSL and Indosat

Therersquos a number of technologi-cal solutions on the horizon to milk as much spectral efficiency out of spec-trum as possible from small cells to advanced MIMO solutions But a team of researchers in Europe have hit upon something a little more radical to boost capacity in a radio signal by ndash literally ndash giving it a twist

Research led by Italian astrophysicist Fabrizio Tamburini and Swedish physi-cist Bo Thideacute claims to have found a way to increase spectrum capacity by twisting radio waves The ldquotwistingrdquo part stems from the application of orbital angu-lar momentum (OAM) a century-old discovery which states that electromag-netic fields can transport not only energy and linear momentum but also angular momentum to radio beams OAM has already been applied to laser optics but not to RF technology until recently

As the abstract of the teamrsquos re-search paper explains ldquoWe have shown experimentally that it is possible to propagate and use the properties of twisted non-monochromatic incoherent radio waves to simultaneously transmit to infinity more radio channels on the same frequency band by encoding them in different orbital angular momentum states This novel radio technique al-lows the implementation of at least in principle an infinite number of channels on one and the same frequency even without using polarization or dense cod-ing techniquesrdquo

What that essentially means is that itrsquos possible to leverage OAM to twist a

radio wave into a vortex which creates distinctly shaped sub-frequencies that can be used to transmit and receive data without interfering with one another Result a potential 100x increase in band-width for wireless broadband (although Tamburini says that in theory an OAM vortex could generate sub-frequencies to infinity)

Tamburini and his team success-fully tested the technology in the field in Venice this past June beaming two radio signals from an offshore island to Piazza San Marco a little under 500 meters away

The next step will be to miniatur-ize the antenna technology to make it suitable for mobile devices and also to increase the distance of the signal

That wonrsquot be easy says Brough Turner founder of wireless mesh ISP netBlazr and former CTO and co-found-er of Natural MicroSystems and NMS Communications who noted on his blog that the researchers twisted their waves by bouncing an RF source off a spiral-formed reflector

ldquoThis is a cool experiment but yoursquod need a set of reflectors one per channel each with slightly different depths of their spirals to begin mak-ing wireless capacity gainsrdquo Turner observed ldquoTo make this commercially viable we need an antenna that can create several different orders of vortex in the same physical spacerdquo

But once thatrsquos accomplished Turner added ldquothe resulting separate channels could be used directly with MIMO elec-tronics and an antenna that fits in limited space much as 2x2 MIMO systems use horizontally and vertically polarized an-tennas that fit in the same physical spacerdquo

Turner said that while we probably wonrsquot be seeing 100x wireless capacity gains anytime soon the vorticity effect could be used to create up to 8x gains within the next decade ldquoThis is an area to watchrdquo TA

Vacancy rates drop sharply

STATSNAP

Demand for colocation will continue to grow at a runaway pace defying the fragile global economic climate researchers believe New data from TeleGe-ography shows that available colocation space is shrinking rapidly in several major markets

In Washington DC for example only 16 of retail colocation space is currently vacant with available space falling 36 in the 12 months to September 2011 Vacancy rates fell 26 in London over the same period

Retail colocation providers are scrambling to build new sites to keep up with this demand

Hong Kong providers alone have added more than 400000 square feet of new space over the past two years

In New York more than 13 million square feet of new retail colocation space has been constructed over this time

The majority of the providers surveyed by the research firm ndash including more than 70 in Hong Kong and 80 in Seattle ndash also indicated that they have further growth ambitions

ldquoItrsquos unlikely that the pace of expansion will slow anytime soonrdquo TeleGeography analyst Jon Hjembo said ldquoWhile operators are adding capacity vacancy rates in a number of metro markets we surveyed remain under 25rdquo

Colocation demand soars in major markets

firST Mile edited by John C Tanner

Source TeleGeography

6 OctNov 2011 Telecom Asia wwwtelecomasianet

iNDuSTrY ANAlYSiS

Chinese operators look west for growth

Two of Chinarsquos leading telcos are boosting their global expansion ambitions through partnerships with leading European operators

but they are focusing on very different areas to achieve those goals

China Telecom is allying with France Telecom in a deal covering IP-based VPN services while rival China Unicom has paired with Telefonicarsquos new digital division to develop global machine-to-machine (M2M) standards

The partnership ndash one of the first by the new Telefonica business ndash pri-marily covers developing cross-border technical specifications for M2M com-munications based on jointly produced and maintained platforms However it also provides opportunities for the pair to jointly buy equipment test stand-ards and conduct thorough market analysis

Each carrier will market the M2M platforms to players in markets including smart transport energy connected cars and smart cities The pair may also open the door to additional operators to boost the global potential of their standards and platforms

Telecomrsquos deal with France Telecom is similar in depth but covers access to and management of IP-based VPNs for business subscribers in domestic mar-kets and parts of Africa and the Middle East where France Telecom currently operates

A key element of the collabora-tion is an agreement to jointly develop networks The work has the potential to improve links between Europe Asia Pacific and Africa with the pair agreeing to explore new terrestrial and submarine cable links between the three continents

Telecom chairman Wang Xiaochu says working with France Telecom is ldquoan important part of the companyrsquos foreign

cooperation strategyrdquo and will help it re-alize ldquothe ambition of servicing custom-ers globallyrdquo

Wangrsquos ambition is also served by a Wi-Fi roaming element of the deal which sees France Telecom offer China Telecom customers access to its network of hotspots in Europe and vice-versa

France Telecom chief Steacutephane Rich-

ard was pleased to have closed a deal with Telecom noting it is an ldquoimportant step forwardrdquo for his firm

ldquoBoth parties are set to benefit from close cooperation by enabling each other to provide better customer access and services in our respective regionsrdquo Rich-ard says TA

ndash Michael Carroll

wwwtelecomasianet Telecom Asia OctNov 2011 7

iNDuSTrY ANAlYSiS

gtgt Mobile security spend to hit $3b by 2015Investments in mobile security will reach $7598 billion in 2011 and climb 44 per year through to 2015 Calanys estimates that only 4 of smartphones and tablets had some kind of mobile protection installed in 2010 but that this will rise to 20 by 2015 Mobile client security ndash such as anti-virus firewall messaging security web threat security VPN functionality and encryption ndash will outperform the market with an expected average growth of 546 per year until 2015 While North America has traditionally led mobile security adoption due largely to the presence of data compliance regulations investments in Western Europe are poised to rise sharply For Asia Latin America and MEA the boom will start in 2013

Canalys mobile security analysis wwwcanalyscom

gtgt LTE uptake a slow burnThe worldrsquos mobile operators are mostly taking a quiet approach to deploying LTE networks but as the ecosystem progresses subscribers to FD- or TD-LTE networks will near 80 million by the end of 2013 As a result of strong operator demand devices for both flavors of LTE are expected to flood the market over the next few years ABI Research predicts This inflow will drive subscriber interest and adoption Spectrum constraints are influencing LTE deployment decisions in many markets ndash as is the case in Saudi Arabia where all three operators recently launched TD-LTE services using 25-GHz spectrum originally intended for Wimax Singaporersquos M1 has likewise deployed FDD LTE on the 18-GHz band first slated for 3G usage

4G subscriber device and networks market datawwwabiresearchcom

gtgt DPI equipment spend to poised tripleThe service provider deep packet inspection equipment market will more than triple from 2011 to 2015 by which time global sales will top $16 billion The runaway growth is being driven by mobile operatorsrsquo eagerness to enable more granular traffic management and the flexibility to provide tiered or value-added services To accommodate these demands analytics on the subscriberrsquos services applications and behavior will become an integral part of DPI solutions over this period The market is in for particularly strong growth in APACrsquos emerging markets as operators encounter the congestion issues accompanying rapid subscriber growth

Service provider deep packet inspection products wwwinfoneticscompr20111H11-DPI-Deep-Packet-Inspection-Market-Highlightsasp

gtgt Mobile VoIP to pose growing threatRelationships between mobile operators and VoIP service providers are likely to remain frosty through to at least 2016 Juniper Research estimates that smartphone apps will account for four-fifths of the worldrsquos 640 million mobile VoIP users by this time and partnerships between cellcos and VoIP companies will remain rare VoIP specialists will instead pursue partnerships within the movers and shakers in social media Uptake of mobile VoIP services will be faster in the developed markets as there is a direct correlation between adoption and the rollout of 3G or 4G networks

Mobile voice amp video callingwwwjuniperresearchcom

India paves road to consolidation

After two years of stagnating earnings and cutthroat competition consolidation in Indiarsquos crowded mo-bile sector appears all but inevitable but is being held back by existing regulation

The Indian government is well aware that a 14-operator market is shaping up to be unsustainable and in October took several steps to facilitate mergers ndash but at the same time threatened action that would make life even more difficult for telcos

The nationrsquos Department of Telecom (DoT) published a draft of the New Telecom Policy a proposed far-reaching overhaul of existing regulations (See Analyst View on page xx)

Among numerous changes the government has suggested doing away with a restriction on mergers if it would result in the number of competing operators in a telecom circle falling below six proposing instead to base the minimum number of operators on the population in a given area

The DoT earlier suggested introducing an exit policy for newer operators including a possible mechanism for the government to buy back spectrum licenses for those wishing to give up on the sector

But even as the department moved to help reduce the number of operators it raised objections to initiatives some operators have taken on their own to address the problems caused by overcrowding

The strong demand for already-in-short-supply 3G spec-trum during last yearrsquos auctions ensured no operator ended up with pan-Indian spectrum In a bid to address this major players Bharti Airtel Vodafone and Idea Cellular forged a 3G roaming deal that would allow them to use each othersrsquo networks in areas where they lack spectrum

But in October the DoT threatened to object to this deal on the grounds that it may violate license conditions The operators dispute this claiming that their permits allow roaming agreements

Operatorsrsquo financial problems would also be exacerbated by a proposal in the New Telecom Policy to scrap inter-circle roaming charges forcing operators to charge a single rate for calls anywhere in India

Some analysts estimate that operator could lose a com-bined $400 million in revenue from such a move

The department in October also reportedly sent notices to five major operators ndash Bharti Vodafone Idea Reliance and Tata Teleservices ndash accusing them of misreporting revenue to pay lower license fees The DoT wants operators to pay fees based on revenue figures derived by the comptroller and auditor general of India All five dispute the charges TA

ndash Dylan Bushell-Embling

8 OctNov 2011 Telecom Asia wwwtelecomasianet

INSIGHT ONE MONTHrsquoS TELECOM RESEARCH

The floods that have ravaged much of central Thailand have left the countryrsquos industrial estates in ruins Heavy indus-

try especially the automotive sector has taken a huge hit with optimistic estimates saying it will be at least three months before manufacturing can resume

The hard drive industry is devastated with Western Digital the worldrsquos largest drive maker seeing its Thailand opera-tions now under a sea of mud and water Toshiba Canon Sony Nikon and a whole raft of other names also have been af-fected Even Applersquos Tim Cook has said that the supply chain disruptions will hit Apple hard

But the real damage will not be known until the often secretive supply chains are exposed as the flood waters finally subside in a few weeksrsquo time

One company Stars Microelectronics clearly illustrates the nature of the prob-lem as it threatens to derail many high-end touch-screen handset shipments

Stars is a specialist in capacitative screens and surfaces supplying finished touch screen assemblies to the leading handset makers in Taiwan and Korea and even white capacitative clickwheels used in a certain companyrsquos music player Many high-end touchpads for notebooks are also assembled there and more re-cently have also expanded into tough-ened glass capacitative screens

The company does not make the ca-pacitative films nor the circuitry nor the glass But it takes the glass from Europe the capacitative layer from Japan and the chips from everywhere in the world and assembles them into a sub-component that is in turn assembled into a phone somewhere else The added value in the chain is speed flexibility and the ability to run smaller batches than would other-wise be the case

Then there are countless Japanese chip makers that have seen their factories and cleanrooms flooded to the ceil-

Measuring the damage

ing Many have broken down crying in public partly out of despair partly out of anger at conflicting messages from the authorities One minute the Prime Minister was reassuring investors that the industrial estates would be protected the next people were running for their lives as a wall of water bore down on them

Come back in a monthThe outlook is not good Some of the

worst hit universities have postponed the beginning of term until the end of No-vember and even that may be optimistic given the scale of repairs needed

On the other hand the lack of information squabbling politicians and general mistrust of media has led to a boom in social network usage and cel-lular traffic as people shun government propaganda and instead turn to rely on new media and first-hand accounts from Facebook and Twitter

Frost amp Sullivan has said that Face-book growth originally forecast at 132 year on year will increase to 150 be-cause of the floods making Thailand the third fastest growing Facebook country after India Currently 17 of its popula-tion of 65 million is on Facebook

Leading telco AIS has seen traffic jump by 70 Traditional copper infra-

structure has not fared well under the on-slaught of water but the cellular networks have proven quite resilient AIS has lost only 67 of its 13000 base stations as of the last week of October If anything the redundant networks among the three ma-jor operators borne out of mistrust and inability to share infrastructure rather than by design has managed to keep most of the flood victims connected

Once the flood waters recede the question is what will be rebuilt and how will the global tech giants reassess risk planning in this day and age of global warming and extreme weather patterns

And what of planning the next-generation networks Thailand has like many other countries been moving toward a national broadband network for backhaul run by the incumbent state enterprise telcos Cynics say that is be-cause successive governments are quoting national security concerns as an excuse to create a monopoly on backhaul and milk the industry now that the visible retail sector will soon need to be liberalized But would this crisis change the minds of her leaders to a more distributed if more expensive series of redundant networks Or will the next natural disaster leave everyone cut off in the dark TA

ndash Don Sambandaraksa

wwwtelecomasianet Telecom Asia OctNov 2011 9

asian telecoms this month

BeijingHuawei is blocked from bidding for another US tender ndash this time for a public safety network ndash due to alleged national security concerns

The US ambassador to the WTO meanwhile calls on China to explain its criteria for blocking access to some for-eign websites raising concerns about censorshiprsquos impact on international competition

China Telecom and France Telecom strike a VPN and Wi-Fi sharing deal while China Unicom and Telefonica team up for M2M

ZTE moves to sell its controlling stake in Congo-Chine Telecom to Orange to divest the distraction from its core infrastructure business and avoid competing with its own customers

BangkokSevere flooding in Thailand disrupts fixed broadband networks and threatens to do the same to the component supply chain but mobile networks stand up remark-ably well

AIS puts the final touches on plans to offer roaming services to its customers through state-owned TOTrsquos 3G network

Hong kongPCCW Solutions wins a $465m deal with the Social Welfare Department to re-place the aging Computerized Social Security System

DelHiThe telecom ministry unveils its proposed new telecom policy including a plan to scrap inter-circle domestic roaming charges

The ministry blocks Qualcommrsquos petition for an ISP license to ac-company the BWA spectrum it paid $1b for last year but later re-neges after Qualcomm challenges the decision

The dispute between Norwayrsquos Tel-enor and JV partner Unitech over the management of GSM operator Uninor escalates

ZTE confirms it has won a deal for part of a TD-LTE rollout by Bharti Airtel but the operator is rumored to be planning to divide the remaining deals across multi-ple vendors

DHakaTelenor disputes a $400m tax bill from the government arising from a dispute covering subsidiary Grameenphonersquos revenue share on the sale of SIM cards

10 OctNov 2011 Telecom Asia wwwtelecomasianet

movements

Seoul KT is revealed to be in the final stages of talks to acquire a 20 stake in South Africarsquos Telkom for around $582m

z The iPhone 4S initially disappoints pundits with its similarity to the prior model but goes on to shatter Applersquos own launch-weekend sales records

z The 3GPP industry body 3G Americas claims that the next evolution of HSPA could push the peak theoretical transfer rate up to 336 Mbps

z Apple succeeds in stymieing Samsungrsquos plans to launch the Galaxy Tab 101 in Australia as Samsung is said to pip Apple as the top-selling smartphone vendor in the previous quarter

z Nokia swings to a pre-tax loss of over $200m as an increase in low-end phone sales fail to make up for a continued steep decline in smartphone sales

z Ericsson reports marginally higher profit for the third quarter and higher sales but its cash flow plummets due to its underperforming JVs

z Sony buys out Ericssonrsquos half of Sony-Ericsson for $15b

z RIM is hit with a three-day messaging service outage that at various times affects parts of the US Europe Africa India and the Middle East

z Chipmakers Sequans and Fujitsu Semiconductor forge an alli-ance to develop LTE baseband chips with multimode 2G3GLTE RF transceivers

z The GSMA estimates that the APAC mobile market will be worth $447b by 2020 accounting for the lionrsquos share of the worldrsquos $12tr market

z In another long-term prediction Gartner suggests that tablets could replace smartphones as the go-to device for consumers to have in their pockets in five to ten years

z Fitch Ratings cuts its outlook on two Italian operators ndash Wind and Telecom Italia ndash as the countryrsquos debt woes seep through to local busi-nesses

z The Mobile Entertainment Forum claims that more consumers ac-cess mobile internet services on a daily basis than browse on fixed-line connections

z Yahoo takes aim at the feature-phone market in emerging Asian nations with partnerships to embed its internet services into mobile chipsets bound for the devices

z Virgin Media commences a trial of 15-GHz broadband using new cable access technology from Cisco suggesting the war between cable-cos and telcos for subscribers is heating up

z Texas Instruments provides a lower than anticipated forecast for Q4 sales in an indication that the chip industry is still facing financial problems

z Google indicates it may complement its 1-Gbps fiber network pilot in parts of the US with a similar trial in a European country

z IBM picks sales head Virginia Rometty to become the companyrsquos first female CEO in its 100-year history

SyDneyTelstra shareholders reluctantly accept an $11b deal with the govern-ment to phase out the operatorrsquos fixed-line wholesale business and migrate its fixed-line customers to the NBN

Commonwealth Bank plans to introduce an NFC payment service for Android and iOS devices integrating an NFC chip into special cases for phones that lack an internal one

SingaporeM1 and Verizon Business complete a two-year joint fiber rollout project in northern and western Singapore

kuala lumpurP1 becomes Malaysiarsquos third operator ndash after Celcom and Maxis ndash to sign a deal to offer services on Telekom Malaysiarsquos open-access HSBB network

mumBaiStruggling state-owned BSNL asks to be let out of its mandate to

deploy Wimax ndash except in rural areas ndash in a market due to be dominated by TD-LTE

TokyoKDDI reports a 48 gain in Q3 profit but this is not enough for the operator to revise its forecast of a 2 decline for the full year

NTT Com is said to be planning to invest close to $16b to expand its cloud computing capabilities outside of Japan

manila Conglomerate San Miguel arranges to pay around $35m to up its stake in Eastern Telecom to a controlling 78 from an effective 40

PLDT buys a controlling stake in mobile rival Digitel in a deal worth around $16b after finally convincing regulators to accept the deal by offering to give up 10-MHz of spectrum

wwwtelecomasianet Telecom Asia OctNov 2011 11

COVer STOrY

Taking apps to the next levelDemand for mobile apps shows no sign of letting up over the next five years but the apps landscape itself is a work in progress constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business from tablets and mobile OS developments to web apps and augmented reality

John C Tanner

12 OctNov 2011 Telecom Asia wwwtelecomasianet

More coverage of

Mobile Apps

A huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another application

The fragmented mobile OS landscape that apps develop-ers must navigate is in flux as existing OS platforms are be-ing combined and even aban-

doned and new ones keep popping upThis year alone wersquove seen HP aban-

don its WebOS platform while both Nokia and Intel have abandoned the MeeGo OS project Intel is now backing Tizen a new open-source OS from the Linux Foundation and the LiMo Foun-dation that recycles some components of MeeGo and is based on the Samsung Linux Platform that LiMo uses for its open-source mobile OS

Meanwhile speculation about the fate of WebOS ndash and the possibility of companies like Facebook and Amazon taking it over ndash highlights the desire by content-driven companies to gain more control of the mobile OS platform rath-er than ride on top of someone elsersquos

ABI senior analyst Aapo Markkanen says Facebook needs its own OS because of the growing ubiquity of mobile so-cial networking ldquoA huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another applicationrdquo

Other web players are already doing just that In July Chinarsquos Alibaba Cloud Computing unveiled its own cloud-based mobile OS ndash dubbed Aliyun OS ndash as well as the first device that will run on it the K-Touch Cloud-Smart Phone W700 Aliyun supports Android apps web apps and cloud services such as email search weather updates and mappingnavigation tools though the ultimate goal for Alibaba is to develop a smartphone strategy for its e-commerce business

Also in July Mozilla revealed plans to develop an OS called Boot to Gecko which will be based on the Gecko en-

and both native and HTML5 developer environments as well as BlackBerry Runtime for Android Apps

The bad news for developers says Ovum chief telecom analyst Jan Daw-son is ldquothe adoption of QNX across the entire line in the coming months and years also means that RIM is leaving its traditional BlackBerry developers high and dryrdquo Dawson says existing develop-ers will have no choice but to start from scratch with an entirely new develop-ment environment

gine that drives its Fire-fox browser Develop-ment projects for Boot To Gecko include new web APIs linking OS and device capabilities like text cameras Blue-tooth and NFC chips to content

The good news is that there is some uni-fication of sorts in pro-gress most notably Googlersquos Android 40 ndash aka Ice Cream Sand-wich ndash which brings the smartphone and tablet versions of Android into a single version

ldquoBy creating a sin-gle version of Android Google is making it easier for develop-ers to modify their apps and take ad-vantage of the larger screens of tablets which should stimulate the creation of apps designed for Android tabletsrdquo Nick Dillon devices and platforms ana-lyst for Ovum said in a research note

RIM has done something similar with the recent launch of its new flag-ship BBX platform which merges the BlackBerry 7 smartphone OS with the QNX OS for its PlayBook tablets BBX will support BlackBerry cloud services

Mobile OS landscape The goalposts keep changing for developers Also even Alibaba has one now

wwwtelecomasianet Telecom Asia OctNov 2011 13

COVer STOrY

Native apps are the de facto format for the current apps boom but thatrsquos ex-pected to change with the development of web apps

ndash apps hosted in the cloud that run on the browser and thanks to features within the HTML5 standard can func-tion like native apps even when the de-vice is offline Indeed web apps are at the heart of Googlersquos long-term mobile ambitions ndash so much so that its com-mission fee for apps developers is a paltry 5 (compared to Applersquos 30)

The appeal of web apps is dead simple theyrsquore OS-agnostic which means apps developers can reach a much broader base of users with-out having to write separate apps for

iOS Android BlackBerry WP7 Bada LiMo etc How broad Letrsquos put it this way according to ABI Research over 21 billion mobile devices will have HTML5 browsers by 2016 compared to 109 million last year

Even though the World Wide Web Consortium (W3C) says the HTML5 standard wonrsquot be finished until the end of the decade 25 HTML5 features currently in development will be in wide use within the next three to five years says ABI senior analyst Mark Beccue ldquoWe expect HTML5 features in categories such as graphics multi-media user interactions and data stor-age to be widely adopted sooner rather than laterrdquo

But that doesnrsquot mean web apps

will be competing with those plat-forms or with native apps in general Beccue adds ldquoHTML5 adoption is go-ing to accelerate because it will be a key differentiator in the smartphone OS war I believe that Apple will be the key driver of HTML5 and consequently a primary benefactor as wellrdquo

Ovumrsquos Nick Dillon adds that the rise of web apps wonrsquot spell the end of either native apps nor the app storefront model ldquoApp stores offer a familiar environment for consumer to discover download and purchase apps and we anticipate that the major-ity of app stores will list a mix of both HTML5 and native applications in their catalogues in the futurerdquo

Web apps

Apps for feature phones

HTML5-enabled cloud apps wonrsquot kill native apps or kill app stores

23 billion feature phones in 2016 = major apps opportunity

The apps phenomenon has been limited to smartphones and more recently tablets for fairly obvious reasons But for all the talk about increasing

smartphone adoption as lower-priced models hit the shelves feature phones will remain the largest handset segment for some time Ovum forecasts the number of feature phones worldwide to reach 23 billion in five years which will account for 63 of the market

Thatrsquos a huge untapped market for apps developers limited to smartphone OSs and demand is such that Ovum predicts the feature-phone apps rev-enues will top $1 billion by 2016

Part of that growth will come from larger handset manufacturers operators and third parties offering improved dis-tribution channels for feature phones which have been lacking until recently

says Nick Dillon of Ovum Also de-velopers will leverage existing software options like JavaME Nokia web widg-ets and Opera Mini widgets to develop simple web apps before moving on to HTML5 as more feature phones ship with compatible browsers (see above)

Meanwhile therersquos the ongoing work of the WAC (Wholesale Applica-tions Community) which opened shop in February with eight operators and 12000 apps WAC is creating APIs aimed at runtime environments and browsers with the goal of building an OS-agnos-tic wholesale storefront ecosystem and billing platform that can bring feature phones into the apps ecosystem

WAC has been quiet since its Febru-ary launch But last month WAC CEO Peters Suh said in a blog post that ldquoa number of WAC member operators in Asia are on track to launch services in

Q4 2011 across a range of devices and a number of application storefrontsrdquo

Suh also said that WAC is devel-oping its suite of operator supported network APIs (starting with in-app payments) ldquowhich are currently be-ing implemented by a select number of developers with the aim of opening this up to a wider audience over the coming monthsrdquo Suh said WACrsquos network API service offering would be available in early 2012

WACrsquos network API for in-app pay-ments is well-timed According to app marketplace analytics firm Distimo in-app purchases account for a whopping 72 of iPhone app revenues (compared to just 28 a year ago) Close to half of those in-app payments were via free apps More remarkably less than 5 of all iOS apps even offer in-app pur-chases

14 OctNov 2011 Telecom Asia wwwtelecomasianet

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 4: Telecom Asia 201111

Subscribe to Asiarsquos best daily telecom news service

wwwtelecomasianet

Managing Director Jonathan Bigelow jbigelowquestexasiacom

Group Editor Joseph Waring jwaringtelecomasianetGlobal Technology Editor John C Tanner tannertelecomasianetSenior Reporter Melissa Chua mchuaquestexasiacomOnline Editor Fiona Chau fchautelecomasianet

Art Director Dick Wong dwongtelecomasianetProduction amp Web Manager Pauline Wong pwongtelecomasianet

Group Publisher Gigi Chan gchantelecomasianet Regional Account Director APAC Jessie Cheung jcheungquestexasiacomAsst Sales amp Marketing Manager Candace Ho choquestexasiacom HR amp Admin Manager Janis Lam janislamquestexasiacomww

Accounting Manager Nancy Chung nchungquestexasiacom Accountant Ivy Chu ichuquestexasiacomAccounting Assistant Cannis Wong cwongquestexasiacom Accounts Clerk Mavis Chan mchanquestexasiacom

Circulation amp Distribution Director John Lam jlamquestexasiacomAssistant Circulation Manager Allie Mok amokquestexasiacom Senior Circulation Assistant Shipman Kwok skwokquestexasiacom

Contributors Canberra Dylan Bushell-Embling London Michael Carroll Tokyo Mike Galbraith

Editorial and publishing officeQuestex Asia Ltd13F 88 Hing Fat Street Causeway Bay Hong KongTel +852 2559 2772 Fax +852 2559 7002Website wwwtelecomasianetSubscription Hotline +852 2589 1313 Subscription Fax +852 2559 2015E-mail customer_servicetelecomasianet

Questex Media Group LLC275 Grove Street Newton MA 02466 Tel +1 617 219 8300President amp Chief Executive Officer Kerry C GumasExecutive VP amp Chief Financial Officer Tom CaridiExecutive Vice President Tony DrsquoAvinoExecutive Vice President Gideon Dean

TELECOM ASIA (ISSN 1681-181x)is circulated to telecommunications carriers (PTTs) and to the communications departments of businesses industries and others who use and operate commercial and private networks It is edited for planning engineering and operational managers responsible for the design installation marketing and mainte-nance of public or private telecom systems and networks

TELECOM ASIA (USPS 019-325) is published ten times yearly by Questex Asia Ltd 13F 88 Hing Fat Street Causeway Bay Hong Kong All copies distributed in PRC are free of charge Subscription rates 1 year HK$480 (Hong Kong only) US$86 (within Asia) and US$96 (outside Asia) 2 years HK$840 (Hong Kong only) US$152 (within Asia) and US$168 (outside Asia) SingleBack issue (if available) HK$50 per copy (Hong Kong only) US$9 (within Asia) and US$10 (outside Asia) plus US$5 handling charge per order Print-ed in Hong Kong Postage paid in Hong Kong US Mailing Agent International Mail Distribution Inc A Division of Security Delivery Service 52-09 31st Place Long Island City NY 11101-3229 Periodicals postage paid at Long Island City NY copy 2011 Questex Media Group LLC All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical including photocopy recording or any information storage or retrieval system without permission in writing from the publisher

POSTMASTER Send address changes to 13F 88 Hing Fat Street Causeway Bay Hong Kong

Total circulation 13959Qualified Circulation 12126 Non-Qualified Circulation 1833

Source Jun 2008 BPA Statement

SAleS CONTACTSAsia pacificGigi Chan group publisher Questex Asia LtdTel +852 2589 1338 fax +852 2559 7002 e-mail gchanquestexasiacom

Jessie Cheung Questex Asia LtdTel +852 2589 1310 fax +852 2559 7002 e-mail jcheungquestexasiacom

JapanYoshiomi Okamoto EMS IncTel +81 3 3327 5756email callemsworldodnnejpm

North America amp eMeAZena CoupeacuteTel +44 1923 852537 fax +44 1923 839765 email zcoupequestexcom

TaiwanVirginia Lee Spacemark Media ServicesTel +886 2 2522 2282 fax +886 2 2522 2281 email smediams5hinetnet

firstmile

6 Twisted tech Researchers boost spectrum capacity by twisting radio waves

Show report Asian Carriers Conference

34 Whatrsquos next Telcos struggle in search for new revenue streams

iNDuSTrY ANAlYSiS

7 Chinarsquos cellcos look to europe for growth8 regulations hold back move to consolidation in

india9 long-term impact of Thai floods on supply

chains to take weeks to assess

NeWS MAp

10 Asian telecoms this month Asia news round-up

regulArS

8 insight

33 Telecom Career

36 events Calendar

38 Backpage Briefing

ONLINE SECTIONS

wwwtelecomasianet HigHligHTS

Daily News Our broad coverage of Asian and global telecom news

wwwtelecomasianetnews

CommentaryIn-depth analysis from Telecom Asiarsquos senior editors and leading telecom research firms including Ovum Maravedis ACG Research and more

wwwtelecomasianetcommentary

BloggeryMissives on telecom trends and the wireless future from John Tanner Tony Poulos Joseph Waring and Michael Carroll

wwwtelecomasianetblog

BusinessWeek Online Tech coverage from the global business magazine

wwwtelecomasianetbwol

White Papers Vendors hold forth on latest technology concepts

wwwtelecomasianetwhitepapers

Events This yearrsquos trade shows and conferences

wwwtelecomasianetevents

Telecom Asia China editionIn-depth news analysis opinion white papers and case studies for telecom professionals and executives in China

httpcntelecomasianet

IndustryViewThe inside view from industry execs

wwwtelecomasianetindustryview

Follow us on

4th Annual Telecom Asia Readersrsquo Choice Awards

Country FocusGet the latest news and trends on China and India ndash the two fastest growing telecom markets in the world

China Focus ndash wwwtelecomasianetchinaIndia Focus ndash wwwtelecomasianetindia

Voting was closed on October 24 and winners will be announced at a cocktail ceremony on December 1 in Singapore

wwwtelecomasianetrca11

Top 10 handsetsTelecomasianet together with Gfk Asia brings you the monthly updates on the top 10 mobile phones and smartphones in Asia

wwwtelecomasianettagtop+10+handsets

Next-gen TVThis bi-weekly e-newsletter gives you updates and insights on the latest tech trends and developments from the TV sector covering everything from IPTV and mobile TV to video delivery and HD

wwwtelecomasianet

4 OctNov 2011 Telecom Asia wwwtelecomasianet

John C Tanner l TANNer

This monthrsquos cover story looks at five of the biggest trends technologies and developments that we believe will in-fluence the evolution of the mobile

app as we know it Due to the usual limitations of time and space of course itrsquos not a compre-hensive list And one development thatrsquos worth expanding on is the concept of the multi-screen experience ndash ie the ability to access content re-gardless of what screen itrsquos being accessed from (TV smartphone tablet whatever)

We do touch on that a little bit via In-Statrsquos prediction that five years from now tablets will be the primary video device for users even inside the home and that 60 of both smart-phone and tablet users will use those devices to watch OTT video at home That highlights an interesting shift in the concept of mobile video which was originally imagined as an on-the-go service but appears to be morphing into a re-definition of video consumption in the home

In-door consumptionWersquove already seen this in markets like

South Korea where mobile TV users watch a lot of their favorite dramas at home and oth-ers use their mobile TV devices as a companion device to the living room screen Thatrsquos now happening in other markets as well which is why Yoav Schreiber senior analyst for digital media infrastructure at Current Analysis re-cently observed that the biggest multi-screen video market opportunity is ldquoheavily focused on delivering video applications and lsquoTV ex-periencesrsquo for consumption on companion devices in the homerdquo including smartphones PCs and tablets

There are naturally challenges to achieving that particularly in terms of monetization (ie how do you package that and how do you ac-commodate advertisers) data caps (because video will eat those up faster than you can say ldquoDonrsquot touch that dialrdquo) and content protection (oh you know)

But the point is that more and more cus-tomers are already accustomed to interact-ing with multiple screens And thatrsquos going to impact how players across the value chain ap-proach new content services (which is one rea-son cloud-based content is generating so much

buzz at the moment) Another fascinating aspect thatrsquos worth

highlighting is the emergence of the ldquofifth screenrdquo

Digital signage has been touted for a while now as both another potential revenue stream for operators (think M2M) and a new way for advertisers to interact with consumers at spe-cific locations via technologies like Bluetooth QR codes augmented reality or even SMS

But look at digital signage within the cul-tural context of the multi-screen paradigm and it becomes something more than an animated billboard or a public TV panel

Jan Chipchase ndash an executive creative direc-tor of global insights at frog design and creator of the FuturePerfect blog ndash has pointed to Seoul as an experiment in this regard pondering in a recent article how peoplersquos perceptions and behaviors will shift as dynamic interactive dis-plays become the norm

For example local discount store retail chain Home Plus launched a ldquovirtualrdquo super-market ndash a screen in a subway station that dis-plays life-sized grocery items that customers can purchase online by snapping the QR code of each item Home Plus says its online sales have gone up 130 since it started trialing the store

Because the service involves logging and tracking consumer purchasing data Chipchase highlights the privacy implications of this kind of scenario in which ldquoScreens will read us we will not only read themrdquo Thatrsquos worth empha-sizing within the larger discussion of collect-ing and securing consumer data The fact that digital signage servers have been demonstrated to be as hackable as (say) Sony PlayStation net-work only highlights the point

But the broader point is that interactive digital signage is going to happen anyway ndashindeed itrsquos happening already from simple things like posting text messages and Tweets to Jumbotron screens to online shopping and AR apps that transform displays into interactive playgrounds As the technology and consumer behaviors evolve therersquos a fascinating oppor-tunity here to incorporate the fifth screen into coming cultural norm of the multi-screen ex-perienceTA

John C Tanner is global technology editor ndash jtannerquestexasiacom

The future of multi-screen culture

Look at digital signage within the cultural context of the multi-screen paradigm and it becomes something more than an animated billboard or a public TV panel

wwwtelecomasianet Telecom Asia OctNov 2011 5

Twisted tech could boost RF bandwidth 100x

I trsquos no secret that one of the biggest topics in the mobile broadband sec-tor is spectrum Mobile operators are not only looking to get more

spectrum for LTE ndash particularly in the coveted 700-MHz band ndash but also to get more out of spectrum they already have hence the growing interest in refarming the 1800-MHz bands for LTE by players like StarHub Telstra CSL and Indosat

Therersquos a number of technologi-cal solutions on the horizon to milk as much spectral efficiency out of spec-trum as possible from small cells to advanced MIMO solutions But a team of researchers in Europe have hit upon something a little more radical to boost capacity in a radio signal by ndash literally ndash giving it a twist

Research led by Italian astrophysicist Fabrizio Tamburini and Swedish physi-cist Bo Thideacute claims to have found a way to increase spectrum capacity by twisting radio waves The ldquotwistingrdquo part stems from the application of orbital angu-lar momentum (OAM) a century-old discovery which states that electromag-netic fields can transport not only energy and linear momentum but also angular momentum to radio beams OAM has already been applied to laser optics but not to RF technology until recently

As the abstract of the teamrsquos re-search paper explains ldquoWe have shown experimentally that it is possible to propagate and use the properties of twisted non-monochromatic incoherent radio waves to simultaneously transmit to infinity more radio channels on the same frequency band by encoding them in different orbital angular momentum states This novel radio technique al-lows the implementation of at least in principle an infinite number of channels on one and the same frequency even without using polarization or dense cod-ing techniquesrdquo

What that essentially means is that itrsquos possible to leverage OAM to twist a

radio wave into a vortex which creates distinctly shaped sub-frequencies that can be used to transmit and receive data without interfering with one another Result a potential 100x increase in band-width for wireless broadband (although Tamburini says that in theory an OAM vortex could generate sub-frequencies to infinity)

Tamburini and his team success-fully tested the technology in the field in Venice this past June beaming two radio signals from an offshore island to Piazza San Marco a little under 500 meters away

The next step will be to miniatur-ize the antenna technology to make it suitable for mobile devices and also to increase the distance of the signal

That wonrsquot be easy says Brough Turner founder of wireless mesh ISP netBlazr and former CTO and co-found-er of Natural MicroSystems and NMS Communications who noted on his blog that the researchers twisted their waves by bouncing an RF source off a spiral-formed reflector

ldquoThis is a cool experiment but yoursquod need a set of reflectors one per channel each with slightly different depths of their spirals to begin mak-ing wireless capacity gainsrdquo Turner observed ldquoTo make this commercially viable we need an antenna that can create several different orders of vortex in the same physical spacerdquo

But once thatrsquos accomplished Turner added ldquothe resulting separate channels could be used directly with MIMO elec-tronics and an antenna that fits in limited space much as 2x2 MIMO systems use horizontally and vertically polarized an-tennas that fit in the same physical spacerdquo

Turner said that while we probably wonrsquot be seeing 100x wireless capacity gains anytime soon the vorticity effect could be used to create up to 8x gains within the next decade ldquoThis is an area to watchrdquo TA

Vacancy rates drop sharply

STATSNAP

Demand for colocation will continue to grow at a runaway pace defying the fragile global economic climate researchers believe New data from TeleGe-ography shows that available colocation space is shrinking rapidly in several major markets

In Washington DC for example only 16 of retail colocation space is currently vacant with available space falling 36 in the 12 months to September 2011 Vacancy rates fell 26 in London over the same period

Retail colocation providers are scrambling to build new sites to keep up with this demand

Hong Kong providers alone have added more than 400000 square feet of new space over the past two years

In New York more than 13 million square feet of new retail colocation space has been constructed over this time

The majority of the providers surveyed by the research firm ndash including more than 70 in Hong Kong and 80 in Seattle ndash also indicated that they have further growth ambitions

ldquoItrsquos unlikely that the pace of expansion will slow anytime soonrdquo TeleGeography analyst Jon Hjembo said ldquoWhile operators are adding capacity vacancy rates in a number of metro markets we surveyed remain under 25rdquo

Colocation demand soars in major markets

firST Mile edited by John C Tanner

Source TeleGeography

6 OctNov 2011 Telecom Asia wwwtelecomasianet

iNDuSTrY ANAlYSiS

Chinese operators look west for growth

Two of Chinarsquos leading telcos are boosting their global expansion ambitions through partnerships with leading European operators

but they are focusing on very different areas to achieve those goals

China Telecom is allying with France Telecom in a deal covering IP-based VPN services while rival China Unicom has paired with Telefonicarsquos new digital division to develop global machine-to-machine (M2M) standards

The partnership ndash one of the first by the new Telefonica business ndash pri-marily covers developing cross-border technical specifications for M2M com-munications based on jointly produced and maintained platforms However it also provides opportunities for the pair to jointly buy equipment test stand-ards and conduct thorough market analysis

Each carrier will market the M2M platforms to players in markets including smart transport energy connected cars and smart cities The pair may also open the door to additional operators to boost the global potential of their standards and platforms

Telecomrsquos deal with France Telecom is similar in depth but covers access to and management of IP-based VPNs for business subscribers in domestic mar-kets and parts of Africa and the Middle East where France Telecom currently operates

A key element of the collabora-tion is an agreement to jointly develop networks The work has the potential to improve links between Europe Asia Pacific and Africa with the pair agreeing to explore new terrestrial and submarine cable links between the three continents

Telecom chairman Wang Xiaochu says working with France Telecom is ldquoan important part of the companyrsquos foreign

cooperation strategyrdquo and will help it re-alize ldquothe ambition of servicing custom-ers globallyrdquo

Wangrsquos ambition is also served by a Wi-Fi roaming element of the deal which sees France Telecom offer China Telecom customers access to its network of hotspots in Europe and vice-versa

France Telecom chief Steacutephane Rich-

ard was pleased to have closed a deal with Telecom noting it is an ldquoimportant step forwardrdquo for his firm

ldquoBoth parties are set to benefit from close cooperation by enabling each other to provide better customer access and services in our respective regionsrdquo Rich-ard says TA

ndash Michael Carroll

wwwtelecomasianet Telecom Asia OctNov 2011 7

iNDuSTrY ANAlYSiS

gtgt Mobile security spend to hit $3b by 2015Investments in mobile security will reach $7598 billion in 2011 and climb 44 per year through to 2015 Calanys estimates that only 4 of smartphones and tablets had some kind of mobile protection installed in 2010 but that this will rise to 20 by 2015 Mobile client security ndash such as anti-virus firewall messaging security web threat security VPN functionality and encryption ndash will outperform the market with an expected average growth of 546 per year until 2015 While North America has traditionally led mobile security adoption due largely to the presence of data compliance regulations investments in Western Europe are poised to rise sharply For Asia Latin America and MEA the boom will start in 2013

Canalys mobile security analysis wwwcanalyscom

gtgt LTE uptake a slow burnThe worldrsquos mobile operators are mostly taking a quiet approach to deploying LTE networks but as the ecosystem progresses subscribers to FD- or TD-LTE networks will near 80 million by the end of 2013 As a result of strong operator demand devices for both flavors of LTE are expected to flood the market over the next few years ABI Research predicts This inflow will drive subscriber interest and adoption Spectrum constraints are influencing LTE deployment decisions in many markets ndash as is the case in Saudi Arabia where all three operators recently launched TD-LTE services using 25-GHz spectrum originally intended for Wimax Singaporersquos M1 has likewise deployed FDD LTE on the 18-GHz band first slated for 3G usage

4G subscriber device and networks market datawwwabiresearchcom

gtgt DPI equipment spend to poised tripleThe service provider deep packet inspection equipment market will more than triple from 2011 to 2015 by which time global sales will top $16 billion The runaway growth is being driven by mobile operatorsrsquo eagerness to enable more granular traffic management and the flexibility to provide tiered or value-added services To accommodate these demands analytics on the subscriberrsquos services applications and behavior will become an integral part of DPI solutions over this period The market is in for particularly strong growth in APACrsquos emerging markets as operators encounter the congestion issues accompanying rapid subscriber growth

Service provider deep packet inspection products wwwinfoneticscompr20111H11-DPI-Deep-Packet-Inspection-Market-Highlightsasp

gtgt Mobile VoIP to pose growing threatRelationships between mobile operators and VoIP service providers are likely to remain frosty through to at least 2016 Juniper Research estimates that smartphone apps will account for four-fifths of the worldrsquos 640 million mobile VoIP users by this time and partnerships between cellcos and VoIP companies will remain rare VoIP specialists will instead pursue partnerships within the movers and shakers in social media Uptake of mobile VoIP services will be faster in the developed markets as there is a direct correlation between adoption and the rollout of 3G or 4G networks

Mobile voice amp video callingwwwjuniperresearchcom

India paves road to consolidation

After two years of stagnating earnings and cutthroat competition consolidation in Indiarsquos crowded mo-bile sector appears all but inevitable but is being held back by existing regulation

The Indian government is well aware that a 14-operator market is shaping up to be unsustainable and in October took several steps to facilitate mergers ndash but at the same time threatened action that would make life even more difficult for telcos

The nationrsquos Department of Telecom (DoT) published a draft of the New Telecom Policy a proposed far-reaching overhaul of existing regulations (See Analyst View on page xx)

Among numerous changes the government has suggested doing away with a restriction on mergers if it would result in the number of competing operators in a telecom circle falling below six proposing instead to base the minimum number of operators on the population in a given area

The DoT earlier suggested introducing an exit policy for newer operators including a possible mechanism for the government to buy back spectrum licenses for those wishing to give up on the sector

But even as the department moved to help reduce the number of operators it raised objections to initiatives some operators have taken on their own to address the problems caused by overcrowding

The strong demand for already-in-short-supply 3G spec-trum during last yearrsquos auctions ensured no operator ended up with pan-Indian spectrum In a bid to address this major players Bharti Airtel Vodafone and Idea Cellular forged a 3G roaming deal that would allow them to use each othersrsquo networks in areas where they lack spectrum

But in October the DoT threatened to object to this deal on the grounds that it may violate license conditions The operators dispute this claiming that their permits allow roaming agreements

Operatorsrsquo financial problems would also be exacerbated by a proposal in the New Telecom Policy to scrap inter-circle roaming charges forcing operators to charge a single rate for calls anywhere in India

Some analysts estimate that operator could lose a com-bined $400 million in revenue from such a move

The department in October also reportedly sent notices to five major operators ndash Bharti Vodafone Idea Reliance and Tata Teleservices ndash accusing them of misreporting revenue to pay lower license fees The DoT wants operators to pay fees based on revenue figures derived by the comptroller and auditor general of India All five dispute the charges TA

ndash Dylan Bushell-Embling

8 OctNov 2011 Telecom Asia wwwtelecomasianet

INSIGHT ONE MONTHrsquoS TELECOM RESEARCH

The floods that have ravaged much of central Thailand have left the countryrsquos industrial estates in ruins Heavy indus-

try especially the automotive sector has taken a huge hit with optimistic estimates saying it will be at least three months before manufacturing can resume

The hard drive industry is devastated with Western Digital the worldrsquos largest drive maker seeing its Thailand opera-tions now under a sea of mud and water Toshiba Canon Sony Nikon and a whole raft of other names also have been af-fected Even Applersquos Tim Cook has said that the supply chain disruptions will hit Apple hard

But the real damage will not be known until the often secretive supply chains are exposed as the flood waters finally subside in a few weeksrsquo time

One company Stars Microelectronics clearly illustrates the nature of the prob-lem as it threatens to derail many high-end touch-screen handset shipments

Stars is a specialist in capacitative screens and surfaces supplying finished touch screen assemblies to the leading handset makers in Taiwan and Korea and even white capacitative clickwheels used in a certain companyrsquos music player Many high-end touchpads for notebooks are also assembled there and more re-cently have also expanded into tough-ened glass capacitative screens

The company does not make the ca-pacitative films nor the circuitry nor the glass But it takes the glass from Europe the capacitative layer from Japan and the chips from everywhere in the world and assembles them into a sub-component that is in turn assembled into a phone somewhere else The added value in the chain is speed flexibility and the ability to run smaller batches than would other-wise be the case

Then there are countless Japanese chip makers that have seen their factories and cleanrooms flooded to the ceil-

Measuring the damage

ing Many have broken down crying in public partly out of despair partly out of anger at conflicting messages from the authorities One minute the Prime Minister was reassuring investors that the industrial estates would be protected the next people were running for their lives as a wall of water bore down on them

Come back in a monthThe outlook is not good Some of the

worst hit universities have postponed the beginning of term until the end of No-vember and even that may be optimistic given the scale of repairs needed

On the other hand the lack of information squabbling politicians and general mistrust of media has led to a boom in social network usage and cel-lular traffic as people shun government propaganda and instead turn to rely on new media and first-hand accounts from Facebook and Twitter

Frost amp Sullivan has said that Face-book growth originally forecast at 132 year on year will increase to 150 be-cause of the floods making Thailand the third fastest growing Facebook country after India Currently 17 of its popula-tion of 65 million is on Facebook

Leading telco AIS has seen traffic jump by 70 Traditional copper infra-

structure has not fared well under the on-slaught of water but the cellular networks have proven quite resilient AIS has lost only 67 of its 13000 base stations as of the last week of October If anything the redundant networks among the three ma-jor operators borne out of mistrust and inability to share infrastructure rather than by design has managed to keep most of the flood victims connected

Once the flood waters recede the question is what will be rebuilt and how will the global tech giants reassess risk planning in this day and age of global warming and extreme weather patterns

And what of planning the next-generation networks Thailand has like many other countries been moving toward a national broadband network for backhaul run by the incumbent state enterprise telcos Cynics say that is be-cause successive governments are quoting national security concerns as an excuse to create a monopoly on backhaul and milk the industry now that the visible retail sector will soon need to be liberalized But would this crisis change the minds of her leaders to a more distributed if more expensive series of redundant networks Or will the next natural disaster leave everyone cut off in the dark TA

ndash Don Sambandaraksa

wwwtelecomasianet Telecom Asia OctNov 2011 9

asian telecoms this month

BeijingHuawei is blocked from bidding for another US tender ndash this time for a public safety network ndash due to alleged national security concerns

The US ambassador to the WTO meanwhile calls on China to explain its criteria for blocking access to some for-eign websites raising concerns about censorshiprsquos impact on international competition

China Telecom and France Telecom strike a VPN and Wi-Fi sharing deal while China Unicom and Telefonica team up for M2M

ZTE moves to sell its controlling stake in Congo-Chine Telecom to Orange to divest the distraction from its core infrastructure business and avoid competing with its own customers

BangkokSevere flooding in Thailand disrupts fixed broadband networks and threatens to do the same to the component supply chain but mobile networks stand up remark-ably well

AIS puts the final touches on plans to offer roaming services to its customers through state-owned TOTrsquos 3G network

Hong kongPCCW Solutions wins a $465m deal with the Social Welfare Department to re-place the aging Computerized Social Security System

DelHiThe telecom ministry unveils its proposed new telecom policy including a plan to scrap inter-circle domestic roaming charges

The ministry blocks Qualcommrsquos petition for an ISP license to ac-company the BWA spectrum it paid $1b for last year but later re-neges after Qualcomm challenges the decision

The dispute between Norwayrsquos Tel-enor and JV partner Unitech over the management of GSM operator Uninor escalates

ZTE confirms it has won a deal for part of a TD-LTE rollout by Bharti Airtel but the operator is rumored to be planning to divide the remaining deals across multi-ple vendors

DHakaTelenor disputes a $400m tax bill from the government arising from a dispute covering subsidiary Grameenphonersquos revenue share on the sale of SIM cards

10 OctNov 2011 Telecom Asia wwwtelecomasianet

movements

Seoul KT is revealed to be in the final stages of talks to acquire a 20 stake in South Africarsquos Telkom for around $582m

z The iPhone 4S initially disappoints pundits with its similarity to the prior model but goes on to shatter Applersquos own launch-weekend sales records

z The 3GPP industry body 3G Americas claims that the next evolution of HSPA could push the peak theoretical transfer rate up to 336 Mbps

z Apple succeeds in stymieing Samsungrsquos plans to launch the Galaxy Tab 101 in Australia as Samsung is said to pip Apple as the top-selling smartphone vendor in the previous quarter

z Nokia swings to a pre-tax loss of over $200m as an increase in low-end phone sales fail to make up for a continued steep decline in smartphone sales

z Ericsson reports marginally higher profit for the third quarter and higher sales but its cash flow plummets due to its underperforming JVs

z Sony buys out Ericssonrsquos half of Sony-Ericsson for $15b

z RIM is hit with a three-day messaging service outage that at various times affects parts of the US Europe Africa India and the Middle East

z Chipmakers Sequans and Fujitsu Semiconductor forge an alli-ance to develop LTE baseband chips with multimode 2G3GLTE RF transceivers

z The GSMA estimates that the APAC mobile market will be worth $447b by 2020 accounting for the lionrsquos share of the worldrsquos $12tr market

z In another long-term prediction Gartner suggests that tablets could replace smartphones as the go-to device for consumers to have in their pockets in five to ten years

z Fitch Ratings cuts its outlook on two Italian operators ndash Wind and Telecom Italia ndash as the countryrsquos debt woes seep through to local busi-nesses

z The Mobile Entertainment Forum claims that more consumers ac-cess mobile internet services on a daily basis than browse on fixed-line connections

z Yahoo takes aim at the feature-phone market in emerging Asian nations with partnerships to embed its internet services into mobile chipsets bound for the devices

z Virgin Media commences a trial of 15-GHz broadband using new cable access technology from Cisco suggesting the war between cable-cos and telcos for subscribers is heating up

z Texas Instruments provides a lower than anticipated forecast for Q4 sales in an indication that the chip industry is still facing financial problems

z Google indicates it may complement its 1-Gbps fiber network pilot in parts of the US with a similar trial in a European country

z IBM picks sales head Virginia Rometty to become the companyrsquos first female CEO in its 100-year history

SyDneyTelstra shareholders reluctantly accept an $11b deal with the govern-ment to phase out the operatorrsquos fixed-line wholesale business and migrate its fixed-line customers to the NBN

Commonwealth Bank plans to introduce an NFC payment service for Android and iOS devices integrating an NFC chip into special cases for phones that lack an internal one

SingaporeM1 and Verizon Business complete a two-year joint fiber rollout project in northern and western Singapore

kuala lumpurP1 becomes Malaysiarsquos third operator ndash after Celcom and Maxis ndash to sign a deal to offer services on Telekom Malaysiarsquos open-access HSBB network

mumBaiStruggling state-owned BSNL asks to be let out of its mandate to

deploy Wimax ndash except in rural areas ndash in a market due to be dominated by TD-LTE

TokyoKDDI reports a 48 gain in Q3 profit but this is not enough for the operator to revise its forecast of a 2 decline for the full year

NTT Com is said to be planning to invest close to $16b to expand its cloud computing capabilities outside of Japan

manila Conglomerate San Miguel arranges to pay around $35m to up its stake in Eastern Telecom to a controlling 78 from an effective 40

PLDT buys a controlling stake in mobile rival Digitel in a deal worth around $16b after finally convincing regulators to accept the deal by offering to give up 10-MHz of spectrum

wwwtelecomasianet Telecom Asia OctNov 2011 11

COVer STOrY

Taking apps to the next levelDemand for mobile apps shows no sign of letting up over the next five years but the apps landscape itself is a work in progress constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business from tablets and mobile OS developments to web apps and augmented reality

John C Tanner

12 OctNov 2011 Telecom Asia wwwtelecomasianet

More coverage of

Mobile Apps

A huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another application

The fragmented mobile OS landscape that apps develop-ers must navigate is in flux as existing OS platforms are be-ing combined and even aban-

doned and new ones keep popping upThis year alone wersquove seen HP aban-

don its WebOS platform while both Nokia and Intel have abandoned the MeeGo OS project Intel is now backing Tizen a new open-source OS from the Linux Foundation and the LiMo Foun-dation that recycles some components of MeeGo and is based on the Samsung Linux Platform that LiMo uses for its open-source mobile OS

Meanwhile speculation about the fate of WebOS ndash and the possibility of companies like Facebook and Amazon taking it over ndash highlights the desire by content-driven companies to gain more control of the mobile OS platform rath-er than ride on top of someone elsersquos

ABI senior analyst Aapo Markkanen says Facebook needs its own OS because of the growing ubiquity of mobile so-cial networking ldquoA huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another applicationrdquo

Other web players are already doing just that In July Chinarsquos Alibaba Cloud Computing unveiled its own cloud-based mobile OS ndash dubbed Aliyun OS ndash as well as the first device that will run on it the K-Touch Cloud-Smart Phone W700 Aliyun supports Android apps web apps and cloud services such as email search weather updates and mappingnavigation tools though the ultimate goal for Alibaba is to develop a smartphone strategy for its e-commerce business

Also in July Mozilla revealed plans to develop an OS called Boot to Gecko which will be based on the Gecko en-

and both native and HTML5 developer environments as well as BlackBerry Runtime for Android Apps

The bad news for developers says Ovum chief telecom analyst Jan Daw-son is ldquothe adoption of QNX across the entire line in the coming months and years also means that RIM is leaving its traditional BlackBerry developers high and dryrdquo Dawson says existing develop-ers will have no choice but to start from scratch with an entirely new develop-ment environment

gine that drives its Fire-fox browser Develop-ment projects for Boot To Gecko include new web APIs linking OS and device capabilities like text cameras Blue-tooth and NFC chips to content

The good news is that there is some uni-fication of sorts in pro-gress most notably Googlersquos Android 40 ndash aka Ice Cream Sand-wich ndash which brings the smartphone and tablet versions of Android into a single version

ldquoBy creating a sin-gle version of Android Google is making it easier for develop-ers to modify their apps and take ad-vantage of the larger screens of tablets which should stimulate the creation of apps designed for Android tabletsrdquo Nick Dillon devices and platforms ana-lyst for Ovum said in a research note

RIM has done something similar with the recent launch of its new flag-ship BBX platform which merges the BlackBerry 7 smartphone OS with the QNX OS for its PlayBook tablets BBX will support BlackBerry cloud services

Mobile OS landscape The goalposts keep changing for developers Also even Alibaba has one now

wwwtelecomasianet Telecom Asia OctNov 2011 13

COVer STOrY

Native apps are the de facto format for the current apps boom but thatrsquos ex-pected to change with the development of web apps

ndash apps hosted in the cloud that run on the browser and thanks to features within the HTML5 standard can func-tion like native apps even when the de-vice is offline Indeed web apps are at the heart of Googlersquos long-term mobile ambitions ndash so much so that its com-mission fee for apps developers is a paltry 5 (compared to Applersquos 30)

The appeal of web apps is dead simple theyrsquore OS-agnostic which means apps developers can reach a much broader base of users with-out having to write separate apps for

iOS Android BlackBerry WP7 Bada LiMo etc How broad Letrsquos put it this way according to ABI Research over 21 billion mobile devices will have HTML5 browsers by 2016 compared to 109 million last year

Even though the World Wide Web Consortium (W3C) says the HTML5 standard wonrsquot be finished until the end of the decade 25 HTML5 features currently in development will be in wide use within the next three to five years says ABI senior analyst Mark Beccue ldquoWe expect HTML5 features in categories such as graphics multi-media user interactions and data stor-age to be widely adopted sooner rather than laterrdquo

But that doesnrsquot mean web apps

will be competing with those plat-forms or with native apps in general Beccue adds ldquoHTML5 adoption is go-ing to accelerate because it will be a key differentiator in the smartphone OS war I believe that Apple will be the key driver of HTML5 and consequently a primary benefactor as wellrdquo

Ovumrsquos Nick Dillon adds that the rise of web apps wonrsquot spell the end of either native apps nor the app storefront model ldquoApp stores offer a familiar environment for consumer to discover download and purchase apps and we anticipate that the major-ity of app stores will list a mix of both HTML5 and native applications in their catalogues in the futurerdquo

Web apps

Apps for feature phones

HTML5-enabled cloud apps wonrsquot kill native apps or kill app stores

23 billion feature phones in 2016 = major apps opportunity

The apps phenomenon has been limited to smartphones and more recently tablets for fairly obvious reasons But for all the talk about increasing

smartphone adoption as lower-priced models hit the shelves feature phones will remain the largest handset segment for some time Ovum forecasts the number of feature phones worldwide to reach 23 billion in five years which will account for 63 of the market

Thatrsquos a huge untapped market for apps developers limited to smartphone OSs and demand is such that Ovum predicts the feature-phone apps rev-enues will top $1 billion by 2016

Part of that growth will come from larger handset manufacturers operators and third parties offering improved dis-tribution channels for feature phones which have been lacking until recently

says Nick Dillon of Ovum Also de-velopers will leverage existing software options like JavaME Nokia web widg-ets and Opera Mini widgets to develop simple web apps before moving on to HTML5 as more feature phones ship with compatible browsers (see above)

Meanwhile therersquos the ongoing work of the WAC (Wholesale Applica-tions Community) which opened shop in February with eight operators and 12000 apps WAC is creating APIs aimed at runtime environments and browsers with the goal of building an OS-agnos-tic wholesale storefront ecosystem and billing platform that can bring feature phones into the apps ecosystem

WAC has been quiet since its Febru-ary launch But last month WAC CEO Peters Suh said in a blog post that ldquoa number of WAC member operators in Asia are on track to launch services in

Q4 2011 across a range of devices and a number of application storefrontsrdquo

Suh also said that WAC is devel-oping its suite of operator supported network APIs (starting with in-app payments) ldquowhich are currently be-ing implemented by a select number of developers with the aim of opening this up to a wider audience over the coming monthsrdquo Suh said WACrsquos network API service offering would be available in early 2012

WACrsquos network API for in-app pay-ments is well-timed According to app marketplace analytics firm Distimo in-app purchases account for a whopping 72 of iPhone app revenues (compared to just 28 a year ago) Close to half of those in-app payments were via free apps More remarkably less than 5 of all iOS apps even offer in-app pur-chases

14 OctNov 2011 Telecom Asia wwwtelecomasianet

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 5: Telecom Asia 201111

ONLINE SECTIONS

wwwtelecomasianet HigHligHTS

Daily News Our broad coverage of Asian and global telecom news

wwwtelecomasianetnews

CommentaryIn-depth analysis from Telecom Asiarsquos senior editors and leading telecom research firms including Ovum Maravedis ACG Research and more

wwwtelecomasianetcommentary

BloggeryMissives on telecom trends and the wireless future from John Tanner Tony Poulos Joseph Waring and Michael Carroll

wwwtelecomasianetblog

BusinessWeek Online Tech coverage from the global business magazine

wwwtelecomasianetbwol

White Papers Vendors hold forth on latest technology concepts

wwwtelecomasianetwhitepapers

Events This yearrsquos trade shows and conferences

wwwtelecomasianetevents

Telecom Asia China editionIn-depth news analysis opinion white papers and case studies for telecom professionals and executives in China

httpcntelecomasianet

IndustryViewThe inside view from industry execs

wwwtelecomasianetindustryview

Follow us on

4th Annual Telecom Asia Readersrsquo Choice Awards

Country FocusGet the latest news and trends on China and India ndash the two fastest growing telecom markets in the world

China Focus ndash wwwtelecomasianetchinaIndia Focus ndash wwwtelecomasianetindia

Voting was closed on October 24 and winners will be announced at a cocktail ceremony on December 1 in Singapore

wwwtelecomasianetrca11

Top 10 handsetsTelecomasianet together with Gfk Asia brings you the monthly updates on the top 10 mobile phones and smartphones in Asia

wwwtelecomasianettagtop+10+handsets

Next-gen TVThis bi-weekly e-newsletter gives you updates and insights on the latest tech trends and developments from the TV sector covering everything from IPTV and mobile TV to video delivery and HD

wwwtelecomasianet

4 OctNov 2011 Telecom Asia wwwtelecomasianet

John C Tanner l TANNer

This monthrsquos cover story looks at five of the biggest trends technologies and developments that we believe will in-fluence the evolution of the mobile

app as we know it Due to the usual limitations of time and space of course itrsquos not a compre-hensive list And one development thatrsquos worth expanding on is the concept of the multi-screen experience ndash ie the ability to access content re-gardless of what screen itrsquos being accessed from (TV smartphone tablet whatever)

We do touch on that a little bit via In-Statrsquos prediction that five years from now tablets will be the primary video device for users even inside the home and that 60 of both smart-phone and tablet users will use those devices to watch OTT video at home That highlights an interesting shift in the concept of mobile video which was originally imagined as an on-the-go service but appears to be morphing into a re-definition of video consumption in the home

In-door consumptionWersquove already seen this in markets like

South Korea where mobile TV users watch a lot of their favorite dramas at home and oth-ers use their mobile TV devices as a companion device to the living room screen Thatrsquos now happening in other markets as well which is why Yoav Schreiber senior analyst for digital media infrastructure at Current Analysis re-cently observed that the biggest multi-screen video market opportunity is ldquoheavily focused on delivering video applications and lsquoTV ex-periencesrsquo for consumption on companion devices in the homerdquo including smartphones PCs and tablets

There are naturally challenges to achieving that particularly in terms of monetization (ie how do you package that and how do you ac-commodate advertisers) data caps (because video will eat those up faster than you can say ldquoDonrsquot touch that dialrdquo) and content protection (oh you know)

But the point is that more and more cus-tomers are already accustomed to interact-ing with multiple screens And thatrsquos going to impact how players across the value chain ap-proach new content services (which is one rea-son cloud-based content is generating so much

buzz at the moment) Another fascinating aspect thatrsquos worth

highlighting is the emergence of the ldquofifth screenrdquo

Digital signage has been touted for a while now as both another potential revenue stream for operators (think M2M) and a new way for advertisers to interact with consumers at spe-cific locations via technologies like Bluetooth QR codes augmented reality or even SMS

But look at digital signage within the cul-tural context of the multi-screen paradigm and it becomes something more than an animated billboard or a public TV panel

Jan Chipchase ndash an executive creative direc-tor of global insights at frog design and creator of the FuturePerfect blog ndash has pointed to Seoul as an experiment in this regard pondering in a recent article how peoplersquos perceptions and behaviors will shift as dynamic interactive dis-plays become the norm

For example local discount store retail chain Home Plus launched a ldquovirtualrdquo super-market ndash a screen in a subway station that dis-plays life-sized grocery items that customers can purchase online by snapping the QR code of each item Home Plus says its online sales have gone up 130 since it started trialing the store

Because the service involves logging and tracking consumer purchasing data Chipchase highlights the privacy implications of this kind of scenario in which ldquoScreens will read us we will not only read themrdquo Thatrsquos worth empha-sizing within the larger discussion of collect-ing and securing consumer data The fact that digital signage servers have been demonstrated to be as hackable as (say) Sony PlayStation net-work only highlights the point

But the broader point is that interactive digital signage is going to happen anyway ndashindeed itrsquos happening already from simple things like posting text messages and Tweets to Jumbotron screens to online shopping and AR apps that transform displays into interactive playgrounds As the technology and consumer behaviors evolve therersquos a fascinating oppor-tunity here to incorporate the fifth screen into coming cultural norm of the multi-screen ex-perienceTA

John C Tanner is global technology editor ndash jtannerquestexasiacom

The future of multi-screen culture

Look at digital signage within the cultural context of the multi-screen paradigm and it becomes something more than an animated billboard or a public TV panel

wwwtelecomasianet Telecom Asia OctNov 2011 5

Twisted tech could boost RF bandwidth 100x

I trsquos no secret that one of the biggest topics in the mobile broadband sec-tor is spectrum Mobile operators are not only looking to get more

spectrum for LTE ndash particularly in the coveted 700-MHz band ndash but also to get more out of spectrum they already have hence the growing interest in refarming the 1800-MHz bands for LTE by players like StarHub Telstra CSL and Indosat

Therersquos a number of technologi-cal solutions on the horizon to milk as much spectral efficiency out of spec-trum as possible from small cells to advanced MIMO solutions But a team of researchers in Europe have hit upon something a little more radical to boost capacity in a radio signal by ndash literally ndash giving it a twist

Research led by Italian astrophysicist Fabrizio Tamburini and Swedish physi-cist Bo Thideacute claims to have found a way to increase spectrum capacity by twisting radio waves The ldquotwistingrdquo part stems from the application of orbital angu-lar momentum (OAM) a century-old discovery which states that electromag-netic fields can transport not only energy and linear momentum but also angular momentum to radio beams OAM has already been applied to laser optics but not to RF technology until recently

As the abstract of the teamrsquos re-search paper explains ldquoWe have shown experimentally that it is possible to propagate and use the properties of twisted non-monochromatic incoherent radio waves to simultaneously transmit to infinity more radio channels on the same frequency band by encoding them in different orbital angular momentum states This novel radio technique al-lows the implementation of at least in principle an infinite number of channels on one and the same frequency even without using polarization or dense cod-ing techniquesrdquo

What that essentially means is that itrsquos possible to leverage OAM to twist a

radio wave into a vortex which creates distinctly shaped sub-frequencies that can be used to transmit and receive data without interfering with one another Result a potential 100x increase in band-width for wireless broadband (although Tamburini says that in theory an OAM vortex could generate sub-frequencies to infinity)

Tamburini and his team success-fully tested the technology in the field in Venice this past June beaming two radio signals from an offshore island to Piazza San Marco a little under 500 meters away

The next step will be to miniatur-ize the antenna technology to make it suitable for mobile devices and also to increase the distance of the signal

That wonrsquot be easy says Brough Turner founder of wireless mesh ISP netBlazr and former CTO and co-found-er of Natural MicroSystems and NMS Communications who noted on his blog that the researchers twisted their waves by bouncing an RF source off a spiral-formed reflector

ldquoThis is a cool experiment but yoursquod need a set of reflectors one per channel each with slightly different depths of their spirals to begin mak-ing wireless capacity gainsrdquo Turner observed ldquoTo make this commercially viable we need an antenna that can create several different orders of vortex in the same physical spacerdquo

But once thatrsquos accomplished Turner added ldquothe resulting separate channels could be used directly with MIMO elec-tronics and an antenna that fits in limited space much as 2x2 MIMO systems use horizontally and vertically polarized an-tennas that fit in the same physical spacerdquo

Turner said that while we probably wonrsquot be seeing 100x wireless capacity gains anytime soon the vorticity effect could be used to create up to 8x gains within the next decade ldquoThis is an area to watchrdquo TA

Vacancy rates drop sharply

STATSNAP

Demand for colocation will continue to grow at a runaway pace defying the fragile global economic climate researchers believe New data from TeleGe-ography shows that available colocation space is shrinking rapidly in several major markets

In Washington DC for example only 16 of retail colocation space is currently vacant with available space falling 36 in the 12 months to September 2011 Vacancy rates fell 26 in London over the same period

Retail colocation providers are scrambling to build new sites to keep up with this demand

Hong Kong providers alone have added more than 400000 square feet of new space over the past two years

In New York more than 13 million square feet of new retail colocation space has been constructed over this time

The majority of the providers surveyed by the research firm ndash including more than 70 in Hong Kong and 80 in Seattle ndash also indicated that they have further growth ambitions

ldquoItrsquos unlikely that the pace of expansion will slow anytime soonrdquo TeleGeography analyst Jon Hjembo said ldquoWhile operators are adding capacity vacancy rates in a number of metro markets we surveyed remain under 25rdquo

Colocation demand soars in major markets

firST Mile edited by John C Tanner

Source TeleGeography

6 OctNov 2011 Telecom Asia wwwtelecomasianet

iNDuSTrY ANAlYSiS

Chinese operators look west for growth

Two of Chinarsquos leading telcos are boosting their global expansion ambitions through partnerships with leading European operators

but they are focusing on very different areas to achieve those goals

China Telecom is allying with France Telecom in a deal covering IP-based VPN services while rival China Unicom has paired with Telefonicarsquos new digital division to develop global machine-to-machine (M2M) standards

The partnership ndash one of the first by the new Telefonica business ndash pri-marily covers developing cross-border technical specifications for M2M com-munications based on jointly produced and maintained platforms However it also provides opportunities for the pair to jointly buy equipment test stand-ards and conduct thorough market analysis

Each carrier will market the M2M platforms to players in markets including smart transport energy connected cars and smart cities The pair may also open the door to additional operators to boost the global potential of their standards and platforms

Telecomrsquos deal with France Telecom is similar in depth but covers access to and management of IP-based VPNs for business subscribers in domestic mar-kets and parts of Africa and the Middle East where France Telecom currently operates

A key element of the collabora-tion is an agreement to jointly develop networks The work has the potential to improve links between Europe Asia Pacific and Africa with the pair agreeing to explore new terrestrial and submarine cable links between the three continents

Telecom chairman Wang Xiaochu says working with France Telecom is ldquoan important part of the companyrsquos foreign

cooperation strategyrdquo and will help it re-alize ldquothe ambition of servicing custom-ers globallyrdquo

Wangrsquos ambition is also served by a Wi-Fi roaming element of the deal which sees France Telecom offer China Telecom customers access to its network of hotspots in Europe and vice-versa

France Telecom chief Steacutephane Rich-

ard was pleased to have closed a deal with Telecom noting it is an ldquoimportant step forwardrdquo for his firm

ldquoBoth parties are set to benefit from close cooperation by enabling each other to provide better customer access and services in our respective regionsrdquo Rich-ard says TA

ndash Michael Carroll

wwwtelecomasianet Telecom Asia OctNov 2011 7

iNDuSTrY ANAlYSiS

gtgt Mobile security spend to hit $3b by 2015Investments in mobile security will reach $7598 billion in 2011 and climb 44 per year through to 2015 Calanys estimates that only 4 of smartphones and tablets had some kind of mobile protection installed in 2010 but that this will rise to 20 by 2015 Mobile client security ndash such as anti-virus firewall messaging security web threat security VPN functionality and encryption ndash will outperform the market with an expected average growth of 546 per year until 2015 While North America has traditionally led mobile security adoption due largely to the presence of data compliance regulations investments in Western Europe are poised to rise sharply For Asia Latin America and MEA the boom will start in 2013

Canalys mobile security analysis wwwcanalyscom

gtgt LTE uptake a slow burnThe worldrsquos mobile operators are mostly taking a quiet approach to deploying LTE networks but as the ecosystem progresses subscribers to FD- or TD-LTE networks will near 80 million by the end of 2013 As a result of strong operator demand devices for both flavors of LTE are expected to flood the market over the next few years ABI Research predicts This inflow will drive subscriber interest and adoption Spectrum constraints are influencing LTE deployment decisions in many markets ndash as is the case in Saudi Arabia where all three operators recently launched TD-LTE services using 25-GHz spectrum originally intended for Wimax Singaporersquos M1 has likewise deployed FDD LTE on the 18-GHz band first slated for 3G usage

4G subscriber device and networks market datawwwabiresearchcom

gtgt DPI equipment spend to poised tripleThe service provider deep packet inspection equipment market will more than triple from 2011 to 2015 by which time global sales will top $16 billion The runaway growth is being driven by mobile operatorsrsquo eagerness to enable more granular traffic management and the flexibility to provide tiered or value-added services To accommodate these demands analytics on the subscriberrsquos services applications and behavior will become an integral part of DPI solutions over this period The market is in for particularly strong growth in APACrsquos emerging markets as operators encounter the congestion issues accompanying rapid subscriber growth

Service provider deep packet inspection products wwwinfoneticscompr20111H11-DPI-Deep-Packet-Inspection-Market-Highlightsasp

gtgt Mobile VoIP to pose growing threatRelationships between mobile operators and VoIP service providers are likely to remain frosty through to at least 2016 Juniper Research estimates that smartphone apps will account for four-fifths of the worldrsquos 640 million mobile VoIP users by this time and partnerships between cellcos and VoIP companies will remain rare VoIP specialists will instead pursue partnerships within the movers and shakers in social media Uptake of mobile VoIP services will be faster in the developed markets as there is a direct correlation between adoption and the rollout of 3G or 4G networks

Mobile voice amp video callingwwwjuniperresearchcom

India paves road to consolidation

After two years of stagnating earnings and cutthroat competition consolidation in Indiarsquos crowded mo-bile sector appears all but inevitable but is being held back by existing regulation

The Indian government is well aware that a 14-operator market is shaping up to be unsustainable and in October took several steps to facilitate mergers ndash but at the same time threatened action that would make life even more difficult for telcos

The nationrsquos Department of Telecom (DoT) published a draft of the New Telecom Policy a proposed far-reaching overhaul of existing regulations (See Analyst View on page xx)

Among numerous changes the government has suggested doing away with a restriction on mergers if it would result in the number of competing operators in a telecom circle falling below six proposing instead to base the minimum number of operators on the population in a given area

The DoT earlier suggested introducing an exit policy for newer operators including a possible mechanism for the government to buy back spectrum licenses for those wishing to give up on the sector

But even as the department moved to help reduce the number of operators it raised objections to initiatives some operators have taken on their own to address the problems caused by overcrowding

The strong demand for already-in-short-supply 3G spec-trum during last yearrsquos auctions ensured no operator ended up with pan-Indian spectrum In a bid to address this major players Bharti Airtel Vodafone and Idea Cellular forged a 3G roaming deal that would allow them to use each othersrsquo networks in areas where they lack spectrum

But in October the DoT threatened to object to this deal on the grounds that it may violate license conditions The operators dispute this claiming that their permits allow roaming agreements

Operatorsrsquo financial problems would also be exacerbated by a proposal in the New Telecom Policy to scrap inter-circle roaming charges forcing operators to charge a single rate for calls anywhere in India

Some analysts estimate that operator could lose a com-bined $400 million in revenue from such a move

The department in October also reportedly sent notices to five major operators ndash Bharti Vodafone Idea Reliance and Tata Teleservices ndash accusing them of misreporting revenue to pay lower license fees The DoT wants operators to pay fees based on revenue figures derived by the comptroller and auditor general of India All five dispute the charges TA

ndash Dylan Bushell-Embling

8 OctNov 2011 Telecom Asia wwwtelecomasianet

INSIGHT ONE MONTHrsquoS TELECOM RESEARCH

The floods that have ravaged much of central Thailand have left the countryrsquos industrial estates in ruins Heavy indus-

try especially the automotive sector has taken a huge hit with optimistic estimates saying it will be at least three months before manufacturing can resume

The hard drive industry is devastated with Western Digital the worldrsquos largest drive maker seeing its Thailand opera-tions now under a sea of mud and water Toshiba Canon Sony Nikon and a whole raft of other names also have been af-fected Even Applersquos Tim Cook has said that the supply chain disruptions will hit Apple hard

But the real damage will not be known until the often secretive supply chains are exposed as the flood waters finally subside in a few weeksrsquo time

One company Stars Microelectronics clearly illustrates the nature of the prob-lem as it threatens to derail many high-end touch-screen handset shipments

Stars is a specialist in capacitative screens and surfaces supplying finished touch screen assemblies to the leading handset makers in Taiwan and Korea and even white capacitative clickwheels used in a certain companyrsquos music player Many high-end touchpads for notebooks are also assembled there and more re-cently have also expanded into tough-ened glass capacitative screens

The company does not make the ca-pacitative films nor the circuitry nor the glass But it takes the glass from Europe the capacitative layer from Japan and the chips from everywhere in the world and assembles them into a sub-component that is in turn assembled into a phone somewhere else The added value in the chain is speed flexibility and the ability to run smaller batches than would other-wise be the case

Then there are countless Japanese chip makers that have seen their factories and cleanrooms flooded to the ceil-

Measuring the damage

ing Many have broken down crying in public partly out of despair partly out of anger at conflicting messages from the authorities One minute the Prime Minister was reassuring investors that the industrial estates would be protected the next people were running for their lives as a wall of water bore down on them

Come back in a monthThe outlook is not good Some of the

worst hit universities have postponed the beginning of term until the end of No-vember and even that may be optimistic given the scale of repairs needed

On the other hand the lack of information squabbling politicians and general mistrust of media has led to a boom in social network usage and cel-lular traffic as people shun government propaganda and instead turn to rely on new media and first-hand accounts from Facebook and Twitter

Frost amp Sullivan has said that Face-book growth originally forecast at 132 year on year will increase to 150 be-cause of the floods making Thailand the third fastest growing Facebook country after India Currently 17 of its popula-tion of 65 million is on Facebook

Leading telco AIS has seen traffic jump by 70 Traditional copper infra-

structure has not fared well under the on-slaught of water but the cellular networks have proven quite resilient AIS has lost only 67 of its 13000 base stations as of the last week of October If anything the redundant networks among the three ma-jor operators borne out of mistrust and inability to share infrastructure rather than by design has managed to keep most of the flood victims connected

Once the flood waters recede the question is what will be rebuilt and how will the global tech giants reassess risk planning in this day and age of global warming and extreme weather patterns

And what of planning the next-generation networks Thailand has like many other countries been moving toward a national broadband network for backhaul run by the incumbent state enterprise telcos Cynics say that is be-cause successive governments are quoting national security concerns as an excuse to create a monopoly on backhaul and milk the industry now that the visible retail sector will soon need to be liberalized But would this crisis change the minds of her leaders to a more distributed if more expensive series of redundant networks Or will the next natural disaster leave everyone cut off in the dark TA

ndash Don Sambandaraksa

wwwtelecomasianet Telecom Asia OctNov 2011 9

asian telecoms this month

BeijingHuawei is blocked from bidding for another US tender ndash this time for a public safety network ndash due to alleged national security concerns

The US ambassador to the WTO meanwhile calls on China to explain its criteria for blocking access to some for-eign websites raising concerns about censorshiprsquos impact on international competition

China Telecom and France Telecom strike a VPN and Wi-Fi sharing deal while China Unicom and Telefonica team up for M2M

ZTE moves to sell its controlling stake in Congo-Chine Telecom to Orange to divest the distraction from its core infrastructure business and avoid competing with its own customers

BangkokSevere flooding in Thailand disrupts fixed broadband networks and threatens to do the same to the component supply chain but mobile networks stand up remark-ably well

AIS puts the final touches on plans to offer roaming services to its customers through state-owned TOTrsquos 3G network

Hong kongPCCW Solutions wins a $465m deal with the Social Welfare Department to re-place the aging Computerized Social Security System

DelHiThe telecom ministry unveils its proposed new telecom policy including a plan to scrap inter-circle domestic roaming charges

The ministry blocks Qualcommrsquos petition for an ISP license to ac-company the BWA spectrum it paid $1b for last year but later re-neges after Qualcomm challenges the decision

The dispute between Norwayrsquos Tel-enor and JV partner Unitech over the management of GSM operator Uninor escalates

ZTE confirms it has won a deal for part of a TD-LTE rollout by Bharti Airtel but the operator is rumored to be planning to divide the remaining deals across multi-ple vendors

DHakaTelenor disputes a $400m tax bill from the government arising from a dispute covering subsidiary Grameenphonersquos revenue share on the sale of SIM cards

10 OctNov 2011 Telecom Asia wwwtelecomasianet

movements

Seoul KT is revealed to be in the final stages of talks to acquire a 20 stake in South Africarsquos Telkom for around $582m

z The iPhone 4S initially disappoints pundits with its similarity to the prior model but goes on to shatter Applersquos own launch-weekend sales records

z The 3GPP industry body 3G Americas claims that the next evolution of HSPA could push the peak theoretical transfer rate up to 336 Mbps

z Apple succeeds in stymieing Samsungrsquos plans to launch the Galaxy Tab 101 in Australia as Samsung is said to pip Apple as the top-selling smartphone vendor in the previous quarter

z Nokia swings to a pre-tax loss of over $200m as an increase in low-end phone sales fail to make up for a continued steep decline in smartphone sales

z Ericsson reports marginally higher profit for the third quarter and higher sales but its cash flow plummets due to its underperforming JVs

z Sony buys out Ericssonrsquos half of Sony-Ericsson for $15b

z RIM is hit with a three-day messaging service outage that at various times affects parts of the US Europe Africa India and the Middle East

z Chipmakers Sequans and Fujitsu Semiconductor forge an alli-ance to develop LTE baseband chips with multimode 2G3GLTE RF transceivers

z The GSMA estimates that the APAC mobile market will be worth $447b by 2020 accounting for the lionrsquos share of the worldrsquos $12tr market

z In another long-term prediction Gartner suggests that tablets could replace smartphones as the go-to device for consumers to have in their pockets in five to ten years

z Fitch Ratings cuts its outlook on two Italian operators ndash Wind and Telecom Italia ndash as the countryrsquos debt woes seep through to local busi-nesses

z The Mobile Entertainment Forum claims that more consumers ac-cess mobile internet services on a daily basis than browse on fixed-line connections

z Yahoo takes aim at the feature-phone market in emerging Asian nations with partnerships to embed its internet services into mobile chipsets bound for the devices

z Virgin Media commences a trial of 15-GHz broadband using new cable access technology from Cisco suggesting the war between cable-cos and telcos for subscribers is heating up

z Texas Instruments provides a lower than anticipated forecast for Q4 sales in an indication that the chip industry is still facing financial problems

z Google indicates it may complement its 1-Gbps fiber network pilot in parts of the US with a similar trial in a European country

z IBM picks sales head Virginia Rometty to become the companyrsquos first female CEO in its 100-year history

SyDneyTelstra shareholders reluctantly accept an $11b deal with the govern-ment to phase out the operatorrsquos fixed-line wholesale business and migrate its fixed-line customers to the NBN

Commonwealth Bank plans to introduce an NFC payment service for Android and iOS devices integrating an NFC chip into special cases for phones that lack an internal one

SingaporeM1 and Verizon Business complete a two-year joint fiber rollout project in northern and western Singapore

kuala lumpurP1 becomes Malaysiarsquos third operator ndash after Celcom and Maxis ndash to sign a deal to offer services on Telekom Malaysiarsquos open-access HSBB network

mumBaiStruggling state-owned BSNL asks to be let out of its mandate to

deploy Wimax ndash except in rural areas ndash in a market due to be dominated by TD-LTE

TokyoKDDI reports a 48 gain in Q3 profit but this is not enough for the operator to revise its forecast of a 2 decline for the full year

NTT Com is said to be planning to invest close to $16b to expand its cloud computing capabilities outside of Japan

manila Conglomerate San Miguel arranges to pay around $35m to up its stake in Eastern Telecom to a controlling 78 from an effective 40

PLDT buys a controlling stake in mobile rival Digitel in a deal worth around $16b after finally convincing regulators to accept the deal by offering to give up 10-MHz of spectrum

wwwtelecomasianet Telecom Asia OctNov 2011 11

COVer STOrY

Taking apps to the next levelDemand for mobile apps shows no sign of letting up over the next five years but the apps landscape itself is a work in progress constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business from tablets and mobile OS developments to web apps and augmented reality

John C Tanner

12 OctNov 2011 Telecom Asia wwwtelecomasianet

More coverage of

Mobile Apps

A huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another application

The fragmented mobile OS landscape that apps develop-ers must navigate is in flux as existing OS platforms are be-ing combined and even aban-

doned and new ones keep popping upThis year alone wersquove seen HP aban-

don its WebOS platform while both Nokia and Intel have abandoned the MeeGo OS project Intel is now backing Tizen a new open-source OS from the Linux Foundation and the LiMo Foun-dation that recycles some components of MeeGo and is based on the Samsung Linux Platform that LiMo uses for its open-source mobile OS

Meanwhile speculation about the fate of WebOS ndash and the possibility of companies like Facebook and Amazon taking it over ndash highlights the desire by content-driven companies to gain more control of the mobile OS platform rath-er than ride on top of someone elsersquos

ABI senior analyst Aapo Markkanen says Facebook needs its own OS because of the growing ubiquity of mobile so-cial networking ldquoA huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another applicationrdquo

Other web players are already doing just that In July Chinarsquos Alibaba Cloud Computing unveiled its own cloud-based mobile OS ndash dubbed Aliyun OS ndash as well as the first device that will run on it the K-Touch Cloud-Smart Phone W700 Aliyun supports Android apps web apps and cloud services such as email search weather updates and mappingnavigation tools though the ultimate goal for Alibaba is to develop a smartphone strategy for its e-commerce business

Also in July Mozilla revealed plans to develop an OS called Boot to Gecko which will be based on the Gecko en-

and both native and HTML5 developer environments as well as BlackBerry Runtime for Android Apps

The bad news for developers says Ovum chief telecom analyst Jan Daw-son is ldquothe adoption of QNX across the entire line in the coming months and years also means that RIM is leaving its traditional BlackBerry developers high and dryrdquo Dawson says existing develop-ers will have no choice but to start from scratch with an entirely new develop-ment environment

gine that drives its Fire-fox browser Develop-ment projects for Boot To Gecko include new web APIs linking OS and device capabilities like text cameras Blue-tooth and NFC chips to content

The good news is that there is some uni-fication of sorts in pro-gress most notably Googlersquos Android 40 ndash aka Ice Cream Sand-wich ndash which brings the smartphone and tablet versions of Android into a single version

ldquoBy creating a sin-gle version of Android Google is making it easier for develop-ers to modify their apps and take ad-vantage of the larger screens of tablets which should stimulate the creation of apps designed for Android tabletsrdquo Nick Dillon devices and platforms ana-lyst for Ovum said in a research note

RIM has done something similar with the recent launch of its new flag-ship BBX platform which merges the BlackBerry 7 smartphone OS with the QNX OS for its PlayBook tablets BBX will support BlackBerry cloud services

Mobile OS landscape The goalposts keep changing for developers Also even Alibaba has one now

wwwtelecomasianet Telecom Asia OctNov 2011 13

COVer STOrY

Native apps are the de facto format for the current apps boom but thatrsquos ex-pected to change with the development of web apps

ndash apps hosted in the cloud that run on the browser and thanks to features within the HTML5 standard can func-tion like native apps even when the de-vice is offline Indeed web apps are at the heart of Googlersquos long-term mobile ambitions ndash so much so that its com-mission fee for apps developers is a paltry 5 (compared to Applersquos 30)

The appeal of web apps is dead simple theyrsquore OS-agnostic which means apps developers can reach a much broader base of users with-out having to write separate apps for

iOS Android BlackBerry WP7 Bada LiMo etc How broad Letrsquos put it this way according to ABI Research over 21 billion mobile devices will have HTML5 browsers by 2016 compared to 109 million last year

Even though the World Wide Web Consortium (W3C) says the HTML5 standard wonrsquot be finished until the end of the decade 25 HTML5 features currently in development will be in wide use within the next three to five years says ABI senior analyst Mark Beccue ldquoWe expect HTML5 features in categories such as graphics multi-media user interactions and data stor-age to be widely adopted sooner rather than laterrdquo

But that doesnrsquot mean web apps

will be competing with those plat-forms or with native apps in general Beccue adds ldquoHTML5 adoption is go-ing to accelerate because it will be a key differentiator in the smartphone OS war I believe that Apple will be the key driver of HTML5 and consequently a primary benefactor as wellrdquo

Ovumrsquos Nick Dillon adds that the rise of web apps wonrsquot spell the end of either native apps nor the app storefront model ldquoApp stores offer a familiar environment for consumer to discover download and purchase apps and we anticipate that the major-ity of app stores will list a mix of both HTML5 and native applications in their catalogues in the futurerdquo

Web apps

Apps for feature phones

HTML5-enabled cloud apps wonrsquot kill native apps or kill app stores

23 billion feature phones in 2016 = major apps opportunity

The apps phenomenon has been limited to smartphones and more recently tablets for fairly obvious reasons But for all the talk about increasing

smartphone adoption as lower-priced models hit the shelves feature phones will remain the largest handset segment for some time Ovum forecasts the number of feature phones worldwide to reach 23 billion in five years which will account for 63 of the market

Thatrsquos a huge untapped market for apps developers limited to smartphone OSs and demand is such that Ovum predicts the feature-phone apps rev-enues will top $1 billion by 2016

Part of that growth will come from larger handset manufacturers operators and third parties offering improved dis-tribution channels for feature phones which have been lacking until recently

says Nick Dillon of Ovum Also de-velopers will leverage existing software options like JavaME Nokia web widg-ets and Opera Mini widgets to develop simple web apps before moving on to HTML5 as more feature phones ship with compatible browsers (see above)

Meanwhile therersquos the ongoing work of the WAC (Wholesale Applica-tions Community) which opened shop in February with eight operators and 12000 apps WAC is creating APIs aimed at runtime environments and browsers with the goal of building an OS-agnos-tic wholesale storefront ecosystem and billing platform that can bring feature phones into the apps ecosystem

WAC has been quiet since its Febru-ary launch But last month WAC CEO Peters Suh said in a blog post that ldquoa number of WAC member operators in Asia are on track to launch services in

Q4 2011 across a range of devices and a number of application storefrontsrdquo

Suh also said that WAC is devel-oping its suite of operator supported network APIs (starting with in-app payments) ldquowhich are currently be-ing implemented by a select number of developers with the aim of opening this up to a wider audience over the coming monthsrdquo Suh said WACrsquos network API service offering would be available in early 2012

WACrsquos network API for in-app pay-ments is well-timed According to app marketplace analytics firm Distimo in-app purchases account for a whopping 72 of iPhone app revenues (compared to just 28 a year ago) Close to half of those in-app payments were via free apps More remarkably less than 5 of all iOS apps even offer in-app pur-chases

14 OctNov 2011 Telecom Asia wwwtelecomasianet

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 6: Telecom Asia 201111

John C Tanner l TANNer

This monthrsquos cover story looks at five of the biggest trends technologies and developments that we believe will in-fluence the evolution of the mobile

app as we know it Due to the usual limitations of time and space of course itrsquos not a compre-hensive list And one development thatrsquos worth expanding on is the concept of the multi-screen experience ndash ie the ability to access content re-gardless of what screen itrsquos being accessed from (TV smartphone tablet whatever)

We do touch on that a little bit via In-Statrsquos prediction that five years from now tablets will be the primary video device for users even inside the home and that 60 of both smart-phone and tablet users will use those devices to watch OTT video at home That highlights an interesting shift in the concept of mobile video which was originally imagined as an on-the-go service but appears to be morphing into a re-definition of video consumption in the home

In-door consumptionWersquove already seen this in markets like

South Korea where mobile TV users watch a lot of their favorite dramas at home and oth-ers use their mobile TV devices as a companion device to the living room screen Thatrsquos now happening in other markets as well which is why Yoav Schreiber senior analyst for digital media infrastructure at Current Analysis re-cently observed that the biggest multi-screen video market opportunity is ldquoheavily focused on delivering video applications and lsquoTV ex-periencesrsquo for consumption on companion devices in the homerdquo including smartphones PCs and tablets

There are naturally challenges to achieving that particularly in terms of monetization (ie how do you package that and how do you ac-commodate advertisers) data caps (because video will eat those up faster than you can say ldquoDonrsquot touch that dialrdquo) and content protection (oh you know)

But the point is that more and more cus-tomers are already accustomed to interact-ing with multiple screens And thatrsquos going to impact how players across the value chain ap-proach new content services (which is one rea-son cloud-based content is generating so much

buzz at the moment) Another fascinating aspect thatrsquos worth

highlighting is the emergence of the ldquofifth screenrdquo

Digital signage has been touted for a while now as both another potential revenue stream for operators (think M2M) and a new way for advertisers to interact with consumers at spe-cific locations via technologies like Bluetooth QR codes augmented reality or even SMS

But look at digital signage within the cul-tural context of the multi-screen paradigm and it becomes something more than an animated billboard or a public TV panel

Jan Chipchase ndash an executive creative direc-tor of global insights at frog design and creator of the FuturePerfect blog ndash has pointed to Seoul as an experiment in this regard pondering in a recent article how peoplersquos perceptions and behaviors will shift as dynamic interactive dis-plays become the norm

For example local discount store retail chain Home Plus launched a ldquovirtualrdquo super-market ndash a screen in a subway station that dis-plays life-sized grocery items that customers can purchase online by snapping the QR code of each item Home Plus says its online sales have gone up 130 since it started trialing the store

Because the service involves logging and tracking consumer purchasing data Chipchase highlights the privacy implications of this kind of scenario in which ldquoScreens will read us we will not only read themrdquo Thatrsquos worth empha-sizing within the larger discussion of collect-ing and securing consumer data The fact that digital signage servers have been demonstrated to be as hackable as (say) Sony PlayStation net-work only highlights the point

But the broader point is that interactive digital signage is going to happen anyway ndashindeed itrsquos happening already from simple things like posting text messages and Tweets to Jumbotron screens to online shopping and AR apps that transform displays into interactive playgrounds As the technology and consumer behaviors evolve therersquos a fascinating oppor-tunity here to incorporate the fifth screen into coming cultural norm of the multi-screen ex-perienceTA

John C Tanner is global technology editor ndash jtannerquestexasiacom

The future of multi-screen culture

Look at digital signage within the cultural context of the multi-screen paradigm and it becomes something more than an animated billboard or a public TV panel

wwwtelecomasianet Telecom Asia OctNov 2011 5

Twisted tech could boost RF bandwidth 100x

I trsquos no secret that one of the biggest topics in the mobile broadband sec-tor is spectrum Mobile operators are not only looking to get more

spectrum for LTE ndash particularly in the coveted 700-MHz band ndash but also to get more out of spectrum they already have hence the growing interest in refarming the 1800-MHz bands for LTE by players like StarHub Telstra CSL and Indosat

Therersquos a number of technologi-cal solutions on the horizon to milk as much spectral efficiency out of spec-trum as possible from small cells to advanced MIMO solutions But a team of researchers in Europe have hit upon something a little more radical to boost capacity in a radio signal by ndash literally ndash giving it a twist

Research led by Italian astrophysicist Fabrizio Tamburini and Swedish physi-cist Bo Thideacute claims to have found a way to increase spectrum capacity by twisting radio waves The ldquotwistingrdquo part stems from the application of orbital angu-lar momentum (OAM) a century-old discovery which states that electromag-netic fields can transport not only energy and linear momentum but also angular momentum to radio beams OAM has already been applied to laser optics but not to RF technology until recently

As the abstract of the teamrsquos re-search paper explains ldquoWe have shown experimentally that it is possible to propagate and use the properties of twisted non-monochromatic incoherent radio waves to simultaneously transmit to infinity more radio channels on the same frequency band by encoding them in different orbital angular momentum states This novel radio technique al-lows the implementation of at least in principle an infinite number of channels on one and the same frequency even without using polarization or dense cod-ing techniquesrdquo

What that essentially means is that itrsquos possible to leverage OAM to twist a

radio wave into a vortex which creates distinctly shaped sub-frequencies that can be used to transmit and receive data without interfering with one another Result a potential 100x increase in band-width for wireless broadband (although Tamburini says that in theory an OAM vortex could generate sub-frequencies to infinity)

Tamburini and his team success-fully tested the technology in the field in Venice this past June beaming two radio signals from an offshore island to Piazza San Marco a little under 500 meters away

The next step will be to miniatur-ize the antenna technology to make it suitable for mobile devices and also to increase the distance of the signal

That wonrsquot be easy says Brough Turner founder of wireless mesh ISP netBlazr and former CTO and co-found-er of Natural MicroSystems and NMS Communications who noted on his blog that the researchers twisted their waves by bouncing an RF source off a spiral-formed reflector

ldquoThis is a cool experiment but yoursquod need a set of reflectors one per channel each with slightly different depths of their spirals to begin mak-ing wireless capacity gainsrdquo Turner observed ldquoTo make this commercially viable we need an antenna that can create several different orders of vortex in the same physical spacerdquo

But once thatrsquos accomplished Turner added ldquothe resulting separate channels could be used directly with MIMO elec-tronics and an antenna that fits in limited space much as 2x2 MIMO systems use horizontally and vertically polarized an-tennas that fit in the same physical spacerdquo

Turner said that while we probably wonrsquot be seeing 100x wireless capacity gains anytime soon the vorticity effect could be used to create up to 8x gains within the next decade ldquoThis is an area to watchrdquo TA

Vacancy rates drop sharply

STATSNAP

Demand for colocation will continue to grow at a runaway pace defying the fragile global economic climate researchers believe New data from TeleGe-ography shows that available colocation space is shrinking rapidly in several major markets

In Washington DC for example only 16 of retail colocation space is currently vacant with available space falling 36 in the 12 months to September 2011 Vacancy rates fell 26 in London over the same period

Retail colocation providers are scrambling to build new sites to keep up with this demand

Hong Kong providers alone have added more than 400000 square feet of new space over the past two years

In New York more than 13 million square feet of new retail colocation space has been constructed over this time

The majority of the providers surveyed by the research firm ndash including more than 70 in Hong Kong and 80 in Seattle ndash also indicated that they have further growth ambitions

ldquoItrsquos unlikely that the pace of expansion will slow anytime soonrdquo TeleGeography analyst Jon Hjembo said ldquoWhile operators are adding capacity vacancy rates in a number of metro markets we surveyed remain under 25rdquo

Colocation demand soars in major markets

firST Mile edited by John C Tanner

Source TeleGeography

6 OctNov 2011 Telecom Asia wwwtelecomasianet

iNDuSTrY ANAlYSiS

Chinese operators look west for growth

Two of Chinarsquos leading telcos are boosting their global expansion ambitions through partnerships with leading European operators

but they are focusing on very different areas to achieve those goals

China Telecom is allying with France Telecom in a deal covering IP-based VPN services while rival China Unicom has paired with Telefonicarsquos new digital division to develop global machine-to-machine (M2M) standards

The partnership ndash one of the first by the new Telefonica business ndash pri-marily covers developing cross-border technical specifications for M2M com-munications based on jointly produced and maintained platforms However it also provides opportunities for the pair to jointly buy equipment test stand-ards and conduct thorough market analysis

Each carrier will market the M2M platforms to players in markets including smart transport energy connected cars and smart cities The pair may also open the door to additional operators to boost the global potential of their standards and platforms

Telecomrsquos deal with France Telecom is similar in depth but covers access to and management of IP-based VPNs for business subscribers in domestic mar-kets and parts of Africa and the Middle East where France Telecom currently operates

A key element of the collabora-tion is an agreement to jointly develop networks The work has the potential to improve links between Europe Asia Pacific and Africa with the pair agreeing to explore new terrestrial and submarine cable links between the three continents

Telecom chairman Wang Xiaochu says working with France Telecom is ldquoan important part of the companyrsquos foreign

cooperation strategyrdquo and will help it re-alize ldquothe ambition of servicing custom-ers globallyrdquo

Wangrsquos ambition is also served by a Wi-Fi roaming element of the deal which sees France Telecom offer China Telecom customers access to its network of hotspots in Europe and vice-versa

France Telecom chief Steacutephane Rich-

ard was pleased to have closed a deal with Telecom noting it is an ldquoimportant step forwardrdquo for his firm

ldquoBoth parties are set to benefit from close cooperation by enabling each other to provide better customer access and services in our respective regionsrdquo Rich-ard says TA

ndash Michael Carroll

wwwtelecomasianet Telecom Asia OctNov 2011 7

iNDuSTrY ANAlYSiS

gtgt Mobile security spend to hit $3b by 2015Investments in mobile security will reach $7598 billion in 2011 and climb 44 per year through to 2015 Calanys estimates that only 4 of smartphones and tablets had some kind of mobile protection installed in 2010 but that this will rise to 20 by 2015 Mobile client security ndash such as anti-virus firewall messaging security web threat security VPN functionality and encryption ndash will outperform the market with an expected average growth of 546 per year until 2015 While North America has traditionally led mobile security adoption due largely to the presence of data compliance regulations investments in Western Europe are poised to rise sharply For Asia Latin America and MEA the boom will start in 2013

Canalys mobile security analysis wwwcanalyscom

gtgt LTE uptake a slow burnThe worldrsquos mobile operators are mostly taking a quiet approach to deploying LTE networks but as the ecosystem progresses subscribers to FD- or TD-LTE networks will near 80 million by the end of 2013 As a result of strong operator demand devices for both flavors of LTE are expected to flood the market over the next few years ABI Research predicts This inflow will drive subscriber interest and adoption Spectrum constraints are influencing LTE deployment decisions in many markets ndash as is the case in Saudi Arabia where all three operators recently launched TD-LTE services using 25-GHz spectrum originally intended for Wimax Singaporersquos M1 has likewise deployed FDD LTE on the 18-GHz band first slated for 3G usage

4G subscriber device and networks market datawwwabiresearchcom

gtgt DPI equipment spend to poised tripleThe service provider deep packet inspection equipment market will more than triple from 2011 to 2015 by which time global sales will top $16 billion The runaway growth is being driven by mobile operatorsrsquo eagerness to enable more granular traffic management and the flexibility to provide tiered or value-added services To accommodate these demands analytics on the subscriberrsquos services applications and behavior will become an integral part of DPI solutions over this period The market is in for particularly strong growth in APACrsquos emerging markets as operators encounter the congestion issues accompanying rapid subscriber growth

Service provider deep packet inspection products wwwinfoneticscompr20111H11-DPI-Deep-Packet-Inspection-Market-Highlightsasp

gtgt Mobile VoIP to pose growing threatRelationships between mobile operators and VoIP service providers are likely to remain frosty through to at least 2016 Juniper Research estimates that smartphone apps will account for four-fifths of the worldrsquos 640 million mobile VoIP users by this time and partnerships between cellcos and VoIP companies will remain rare VoIP specialists will instead pursue partnerships within the movers and shakers in social media Uptake of mobile VoIP services will be faster in the developed markets as there is a direct correlation between adoption and the rollout of 3G or 4G networks

Mobile voice amp video callingwwwjuniperresearchcom

India paves road to consolidation

After two years of stagnating earnings and cutthroat competition consolidation in Indiarsquos crowded mo-bile sector appears all but inevitable but is being held back by existing regulation

The Indian government is well aware that a 14-operator market is shaping up to be unsustainable and in October took several steps to facilitate mergers ndash but at the same time threatened action that would make life even more difficult for telcos

The nationrsquos Department of Telecom (DoT) published a draft of the New Telecom Policy a proposed far-reaching overhaul of existing regulations (See Analyst View on page xx)

Among numerous changes the government has suggested doing away with a restriction on mergers if it would result in the number of competing operators in a telecom circle falling below six proposing instead to base the minimum number of operators on the population in a given area

The DoT earlier suggested introducing an exit policy for newer operators including a possible mechanism for the government to buy back spectrum licenses for those wishing to give up on the sector

But even as the department moved to help reduce the number of operators it raised objections to initiatives some operators have taken on their own to address the problems caused by overcrowding

The strong demand for already-in-short-supply 3G spec-trum during last yearrsquos auctions ensured no operator ended up with pan-Indian spectrum In a bid to address this major players Bharti Airtel Vodafone and Idea Cellular forged a 3G roaming deal that would allow them to use each othersrsquo networks in areas where they lack spectrum

But in October the DoT threatened to object to this deal on the grounds that it may violate license conditions The operators dispute this claiming that their permits allow roaming agreements

Operatorsrsquo financial problems would also be exacerbated by a proposal in the New Telecom Policy to scrap inter-circle roaming charges forcing operators to charge a single rate for calls anywhere in India

Some analysts estimate that operator could lose a com-bined $400 million in revenue from such a move

The department in October also reportedly sent notices to five major operators ndash Bharti Vodafone Idea Reliance and Tata Teleservices ndash accusing them of misreporting revenue to pay lower license fees The DoT wants operators to pay fees based on revenue figures derived by the comptroller and auditor general of India All five dispute the charges TA

ndash Dylan Bushell-Embling

8 OctNov 2011 Telecom Asia wwwtelecomasianet

INSIGHT ONE MONTHrsquoS TELECOM RESEARCH

The floods that have ravaged much of central Thailand have left the countryrsquos industrial estates in ruins Heavy indus-

try especially the automotive sector has taken a huge hit with optimistic estimates saying it will be at least three months before manufacturing can resume

The hard drive industry is devastated with Western Digital the worldrsquos largest drive maker seeing its Thailand opera-tions now under a sea of mud and water Toshiba Canon Sony Nikon and a whole raft of other names also have been af-fected Even Applersquos Tim Cook has said that the supply chain disruptions will hit Apple hard

But the real damage will not be known until the often secretive supply chains are exposed as the flood waters finally subside in a few weeksrsquo time

One company Stars Microelectronics clearly illustrates the nature of the prob-lem as it threatens to derail many high-end touch-screen handset shipments

Stars is a specialist in capacitative screens and surfaces supplying finished touch screen assemblies to the leading handset makers in Taiwan and Korea and even white capacitative clickwheels used in a certain companyrsquos music player Many high-end touchpads for notebooks are also assembled there and more re-cently have also expanded into tough-ened glass capacitative screens

The company does not make the ca-pacitative films nor the circuitry nor the glass But it takes the glass from Europe the capacitative layer from Japan and the chips from everywhere in the world and assembles them into a sub-component that is in turn assembled into a phone somewhere else The added value in the chain is speed flexibility and the ability to run smaller batches than would other-wise be the case

Then there are countless Japanese chip makers that have seen their factories and cleanrooms flooded to the ceil-

Measuring the damage

ing Many have broken down crying in public partly out of despair partly out of anger at conflicting messages from the authorities One minute the Prime Minister was reassuring investors that the industrial estates would be protected the next people were running for their lives as a wall of water bore down on them

Come back in a monthThe outlook is not good Some of the

worst hit universities have postponed the beginning of term until the end of No-vember and even that may be optimistic given the scale of repairs needed

On the other hand the lack of information squabbling politicians and general mistrust of media has led to a boom in social network usage and cel-lular traffic as people shun government propaganda and instead turn to rely on new media and first-hand accounts from Facebook and Twitter

Frost amp Sullivan has said that Face-book growth originally forecast at 132 year on year will increase to 150 be-cause of the floods making Thailand the third fastest growing Facebook country after India Currently 17 of its popula-tion of 65 million is on Facebook

Leading telco AIS has seen traffic jump by 70 Traditional copper infra-

structure has not fared well under the on-slaught of water but the cellular networks have proven quite resilient AIS has lost only 67 of its 13000 base stations as of the last week of October If anything the redundant networks among the three ma-jor operators borne out of mistrust and inability to share infrastructure rather than by design has managed to keep most of the flood victims connected

Once the flood waters recede the question is what will be rebuilt and how will the global tech giants reassess risk planning in this day and age of global warming and extreme weather patterns

And what of planning the next-generation networks Thailand has like many other countries been moving toward a national broadband network for backhaul run by the incumbent state enterprise telcos Cynics say that is be-cause successive governments are quoting national security concerns as an excuse to create a monopoly on backhaul and milk the industry now that the visible retail sector will soon need to be liberalized But would this crisis change the minds of her leaders to a more distributed if more expensive series of redundant networks Or will the next natural disaster leave everyone cut off in the dark TA

ndash Don Sambandaraksa

wwwtelecomasianet Telecom Asia OctNov 2011 9

asian telecoms this month

BeijingHuawei is blocked from bidding for another US tender ndash this time for a public safety network ndash due to alleged national security concerns

The US ambassador to the WTO meanwhile calls on China to explain its criteria for blocking access to some for-eign websites raising concerns about censorshiprsquos impact on international competition

China Telecom and France Telecom strike a VPN and Wi-Fi sharing deal while China Unicom and Telefonica team up for M2M

ZTE moves to sell its controlling stake in Congo-Chine Telecom to Orange to divest the distraction from its core infrastructure business and avoid competing with its own customers

BangkokSevere flooding in Thailand disrupts fixed broadband networks and threatens to do the same to the component supply chain but mobile networks stand up remark-ably well

AIS puts the final touches on plans to offer roaming services to its customers through state-owned TOTrsquos 3G network

Hong kongPCCW Solutions wins a $465m deal with the Social Welfare Department to re-place the aging Computerized Social Security System

DelHiThe telecom ministry unveils its proposed new telecom policy including a plan to scrap inter-circle domestic roaming charges

The ministry blocks Qualcommrsquos petition for an ISP license to ac-company the BWA spectrum it paid $1b for last year but later re-neges after Qualcomm challenges the decision

The dispute between Norwayrsquos Tel-enor and JV partner Unitech over the management of GSM operator Uninor escalates

ZTE confirms it has won a deal for part of a TD-LTE rollout by Bharti Airtel but the operator is rumored to be planning to divide the remaining deals across multi-ple vendors

DHakaTelenor disputes a $400m tax bill from the government arising from a dispute covering subsidiary Grameenphonersquos revenue share on the sale of SIM cards

10 OctNov 2011 Telecom Asia wwwtelecomasianet

movements

Seoul KT is revealed to be in the final stages of talks to acquire a 20 stake in South Africarsquos Telkom for around $582m

z The iPhone 4S initially disappoints pundits with its similarity to the prior model but goes on to shatter Applersquos own launch-weekend sales records

z The 3GPP industry body 3G Americas claims that the next evolution of HSPA could push the peak theoretical transfer rate up to 336 Mbps

z Apple succeeds in stymieing Samsungrsquos plans to launch the Galaxy Tab 101 in Australia as Samsung is said to pip Apple as the top-selling smartphone vendor in the previous quarter

z Nokia swings to a pre-tax loss of over $200m as an increase in low-end phone sales fail to make up for a continued steep decline in smartphone sales

z Ericsson reports marginally higher profit for the third quarter and higher sales but its cash flow plummets due to its underperforming JVs

z Sony buys out Ericssonrsquos half of Sony-Ericsson for $15b

z RIM is hit with a three-day messaging service outage that at various times affects parts of the US Europe Africa India and the Middle East

z Chipmakers Sequans and Fujitsu Semiconductor forge an alli-ance to develop LTE baseband chips with multimode 2G3GLTE RF transceivers

z The GSMA estimates that the APAC mobile market will be worth $447b by 2020 accounting for the lionrsquos share of the worldrsquos $12tr market

z In another long-term prediction Gartner suggests that tablets could replace smartphones as the go-to device for consumers to have in their pockets in five to ten years

z Fitch Ratings cuts its outlook on two Italian operators ndash Wind and Telecom Italia ndash as the countryrsquos debt woes seep through to local busi-nesses

z The Mobile Entertainment Forum claims that more consumers ac-cess mobile internet services on a daily basis than browse on fixed-line connections

z Yahoo takes aim at the feature-phone market in emerging Asian nations with partnerships to embed its internet services into mobile chipsets bound for the devices

z Virgin Media commences a trial of 15-GHz broadband using new cable access technology from Cisco suggesting the war between cable-cos and telcos for subscribers is heating up

z Texas Instruments provides a lower than anticipated forecast for Q4 sales in an indication that the chip industry is still facing financial problems

z Google indicates it may complement its 1-Gbps fiber network pilot in parts of the US with a similar trial in a European country

z IBM picks sales head Virginia Rometty to become the companyrsquos first female CEO in its 100-year history

SyDneyTelstra shareholders reluctantly accept an $11b deal with the govern-ment to phase out the operatorrsquos fixed-line wholesale business and migrate its fixed-line customers to the NBN

Commonwealth Bank plans to introduce an NFC payment service for Android and iOS devices integrating an NFC chip into special cases for phones that lack an internal one

SingaporeM1 and Verizon Business complete a two-year joint fiber rollout project in northern and western Singapore

kuala lumpurP1 becomes Malaysiarsquos third operator ndash after Celcom and Maxis ndash to sign a deal to offer services on Telekom Malaysiarsquos open-access HSBB network

mumBaiStruggling state-owned BSNL asks to be let out of its mandate to

deploy Wimax ndash except in rural areas ndash in a market due to be dominated by TD-LTE

TokyoKDDI reports a 48 gain in Q3 profit but this is not enough for the operator to revise its forecast of a 2 decline for the full year

NTT Com is said to be planning to invest close to $16b to expand its cloud computing capabilities outside of Japan

manila Conglomerate San Miguel arranges to pay around $35m to up its stake in Eastern Telecom to a controlling 78 from an effective 40

PLDT buys a controlling stake in mobile rival Digitel in a deal worth around $16b after finally convincing regulators to accept the deal by offering to give up 10-MHz of spectrum

wwwtelecomasianet Telecom Asia OctNov 2011 11

COVer STOrY

Taking apps to the next levelDemand for mobile apps shows no sign of letting up over the next five years but the apps landscape itself is a work in progress constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business from tablets and mobile OS developments to web apps and augmented reality

John C Tanner

12 OctNov 2011 Telecom Asia wwwtelecomasianet

More coverage of

Mobile Apps

A huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another application

The fragmented mobile OS landscape that apps develop-ers must navigate is in flux as existing OS platforms are be-ing combined and even aban-

doned and new ones keep popping upThis year alone wersquove seen HP aban-

don its WebOS platform while both Nokia and Intel have abandoned the MeeGo OS project Intel is now backing Tizen a new open-source OS from the Linux Foundation and the LiMo Foun-dation that recycles some components of MeeGo and is based on the Samsung Linux Platform that LiMo uses for its open-source mobile OS

Meanwhile speculation about the fate of WebOS ndash and the possibility of companies like Facebook and Amazon taking it over ndash highlights the desire by content-driven companies to gain more control of the mobile OS platform rath-er than ride on top of someone elsersquos

ABI senior analyst Aapo Markkanen says Facebook needs its own OS because of the growing ubiquity of mobile so-cial networking ldquoA huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another applicationrdquo

Other web players are already doing just that In July Chinarsquos Alibaba Cloud Computing unveiled its own cloud-based mobile OS ndash dubbed Aliyun OS ndash as well as the first device that will run on it the K-Touch Cloud-Smart Phone W700 Aliyun supports Android apps web apps and cloud services such as email search weather updates and mappingnavigation tools though the ultimate goal for Alibaba is to develop a smartphone strategy for its e-commerce business

Also in July Mozilla revealed plans to develop an OS called Boot to Gecko which will be based on the Gecko en-

and both native and HTML5 developer environments as well as BlackBerry Runtime for Android Apps

The bad news for developers says Ovum chief telecom analyst Jan Daw-son is ldquothe adoption of QNX across the entire line in the coming months and years also means that RIM is leaving its traditional BlackBerry developers high and dryrdquo Dawson says existing develop-ers will have no choice but to start from scratch with an entirely new develop-ment environment

gine that drives its Fire-fox browser Develop-ment projects for Boot To Gecko include new web APIs linking OS and device capabilities like text cameras Blue-tooth and NFC chips to content

The good news is that there is some uni-fication of sorts in pro-gress most notably Googlersquos Android 40 ndash aka Ice Cream Sand-wich ndash which brings the smartphone and tablet versions of Android into a single version

ldquoBy creating a sin-gle version of Android Google is making it easier for develop-ers to modify their apps and take ad-vantage of the larger screens of tablets which should stimulate the creation of apps designed for Android tabletsrdquo Nick Dillon devices and platforms ana-lyst for Ovum said in a research note

RIM has done something similar with the recent launch of its new flag-ship BBX platform which merges the BlackBerry 7 smartphone OS with the QNX OS for its PlayBook tablets BBX will support BlackBerry cloud services

Mobile OS landscape The goalposts keep changing for developers Also even Alibaba has one now

wwwtelecomasianet Telecom Asia OctNov 2011 13

COVer STOrY

Native apps are the de facto format for the current apps boom but thatrsquos ex-pected to change with the development of web apps

ndash apps hosted in the cloud that run on the browser and thanks to features within the HTML5 standard can func-tion like native apps even when the de-vice is offline Indeed web apps are at the heart of Googlersquos long-term mobile ambitions ndash so much so that its com-mission fee for apps developers is a paltry 5 (compared to Applersquos 30)

The appeal of web apps is dead simple theyrsquore OS-agnostic which means apps developers can reach a much broader base of users with-out having to write separate apps for

iOS Android BlackBerry WP7 Bada LiMo etc How broad Letrsquos put it this way according to ABI Research over 21 billion mobile devices will have HTML5 browsers by 2016 compared to 109 million last year

Even though the World Wide Web Consortium (W3C) says the HTML5 standard wonrsquot be finished until the end of the decade 25 HTML5 features currently in development will be in wide use within the next three to five years says ABI senior analyst Mark Beccue ldquoWe expect HTML5 features in categories such as graphics multi-media user interactions and data stor-age to be widely adopted sooner rather than laterrdquo

But that doesnrsquot mean web apps

will be competing with those plat-forms or with native apps in general Beccue adds ldquoHTML5 adoption is go-ing to accelerate because it will be a key differentiator in the smartphone OS war I believe that Apple will be the key driver of HTML5 and consequently a primary benefactor as wellrdquo

Ovumrsquos Nick Dillon adds that the rise of web apps wonrsquot spell the end of either native apps nor the app storefront model ldquoApp stores offer a familiar environment for consumer to discover download and purchase apps and we anticipate that the major-ity of app stores will list a mix of both HTML5 and native applications in their catalogues in the futurerdquo

Web apps

Apps for feature phones

HTML5-enabled cloud apps wonrsquot kill native apps or kill app stores

23 billion feature phones in 2016 = major apps opportunity

The apps phenomenon has been limited to smartphones and more recently tablets for fairly obvious reasons But for all the talk about increasing

smartphone adoption as lower-priced models hit the shelves feature phones will remain the largest handset segment for some time Ovum forecasts the number of feature phones worldwide to reach 23 billion in five years which will account for 63 of the market

Thatrsquos a huge untapped market for apps developers limited to smartphone OSs and demand is such that Ovum predicts the feature-phone apps rev-enues will top $1 billion by 2016

Part of that growth will come from larger handset manufacturers operators and third parties offering improved dis-tribution channels for feature phones which have been lacking until recently

says Nick Dillon of Ovum Also de-velopers will leverage existing software options like JavaME Nokia web widg-ets and Opera Mini widgets to develop simple web apps before moving on to HTML5 as more feature phones ship with compatible browsers (see above)

Meanwhile therersquos the ongoing work of the WAC (Wholesale Applica-tions Community) which opened shop in February with eight operators and 12000 apps WAC is creating APIs aimed at runtime environments and browsers with the goal of building an OS-agnos-tic wholesale storefront ecosystem and billing platform that can bring feature phones into the apps ecosystem

WAC has been quiet since its Febru-ary launch But last month WAC CEO Peters Suh said in a blog post that ldquoa number of WAC member operators in Asia are on track to launch services in

Q4 2011 across a range of devices and a number of application storefrontsrdquo

Suh also said that WAC is devel-oping its suite of operator supported network APIs (starting with in-app payments) ldquowhich are currently be-ing implemented by a select number of developers with the aim of opening this up to a wider audience over the coming monthsrdquo Suh said WACrsquos network API service offering would be available in early 2012

WACrsquos network API for in-app pay-ments is well-timed According to app marketplace analytics firm Distimo in-app purchases account for a whopping 72 of iPhone app revenues (compared to just 28 a year ago) Close to half of those in-app payments were via free apps More remarkably less than 5 of all iOS apps even offer in-app pur-chases

14 OctNov 2011 Telecom Asia wwwtelecomasianet

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 7: Telecom Asia 201111

Twisted tech could boost RF bandwidth 100x

I trsquos no secret that one of the biggest topics in the mobile broadband sec-tor is spectrum Mobile operators are not only looking to get more

spectrum for LTE ndash particularly in the coveted 700-MHz band ndash but also to get more out of spectrum they already have hence the growing interest in refarming the 1800-MHz bands for LTE by players like StarHub Telstra CSL and Indosat

Therersquos a number of technologi-cal solutions on the horizon to milk as much spectral efficiency out of spec-trum as possible from small cells to advanced MIMO solutions But a team of researchers in Europe have hit upon something a little more radical to boost capacity in a radio signal by ndash literally ndash giving it a twist

Research led by Italian astrophysicist Fabrizio Tamburini and Swedish physi-cist Bo Thideacute claims to have found a way to increase spectrum capacity by twisting radio waves The ldquotwistingrdquo part stems from the application of orbital angu-lar momentum (OAM) a century-old discovery which states that electromag-netic fields can transport not only energy and linear momentum but also angular momentum to radio beams OAM has already been applied to laser optics but not to RF technology until recently

As the abstract of the teamrsquos re-search paper explains ldquoWe have shown experimentally that it is possible to propagate and use the properties of twisted non-monochromatic incoherent radio waves to simultaneously transmit to infinity more radio channels on the same frequency band by encoding them in different orbital angular momentum states This novel radio technique al-lows the implementation of at least in principle an infinite number of channels on one and the same frequency even without using polarization or dense cod-ing techniquesrdquo

What that essentially means is that itrsquos possible to leverage OAM to twist a

radio wave into a vortex which creates distinctly shaped sub-frequencies that can be used to transmit and receive data without interfering with one another Result a potential 100x increase in band-width for wireless broadband (although Tamburini says that in theory an OAM vortex could generate sub-frequencies to infinity)

Tamburini and his team success-fully tested the technology in the field in Venice this past June beaming two radio signals from an offshore island to Piazza San Marco a little under 500 meters away

The next step will be to miniatur-ize the antenna technology to make it suitable for mobile devices and also to increase the distance of the signal

That wonrsquot be easy says Brough Turner founder of wireless mesh ISP netBlazr and former CTO and co-found-er of Natural MicroSystems and NMS Communications who noted on his blog that the researchers twisted their waves by bouncing an RF source off a spiral-formed reflector

ldquoThis is a cool experiment but yoursquod need a set of reflectors one per channel each with slightly different depths of their spirals to begin mak-ing wireless capacity gainsrdquo Turner observed ldquoTo make this commercially viable we need an antenna that can create several different orders of vortex in the same physical spacerdquo

But once thatrsquos accomplished Turner added ldquothe resulting separate channels could be used directly with MIMO elec-tronics and an antenna that fits in limited space much as 2x2 MIMO systems use horizontally and vertically polarized an-tennas that fit in the same physical spacerdquo

Turner said that while we probably wonrsquot be seeing 100x wireless capacity gains anytime soon the vorticity effect could be used to create up to 8x gains within the next decade ldquoThis is an area to watchrdquo TA

Vacancy rates drop sharply

STATSNAP

Demand for colocation will continue to grow at a runaway pace defying the fragile global economic climate researchers believe New data from TeleGe-ography shows that available colocation space is shrinking rapidly in several major markets

In Washington DC for example only 16 of retail colocation space is currently vacant with available space falling 36 in the 12 months to September 2011 Vacancy rates fell 26 in London over the same period

Retail colocation providers are scrambling to build new sites to keep up with this demand

Hong Kong providers alone have added more than 400000 square feet of new space over the past two years

In New York more than 13 million square feet of new retail colocation space has been constructed over this time

The majority of the providers surveyed by the research firm ndash including more than 70 in Hong Kong and 80 in Seattle ndash also indicated that they have further growth ambitions

ldquoItrsquos unlikely that the pace of expansion will slow anytime soonrdquo TeleGeography analyst Jon Hjembo said ldquoWhile operators are adding capacity vacancy rates in a number of metro markets we surveyed remain under 25rdquo

Colocation demand soars in major markets

firST Mile edited by John C Tanner

Source TeleGeography

6 OctNov 2011 Telecom Asia wwwtelecomasianet

iNDuSTrY ANAlYSiS

Chinese operators look west for growth

Two of Chinarsquos leading telcos are boosting their global expansion ambitions through partnerships with leading European operators

but they are focusing on very different areas to achieve those goals

China Telecom is allying with France Telecom in a deal covering IP-based VPN services while rival China Unicom has paired with Telefonicarsquos new digital division to develop global machine-to-machine (M2M) standards

The partnership ndash one of the first by the new Telefonica business ndash pri-marily covers developing cross-border technical specifications for M2M com-munications based on jointly produced and maintained platforms However it also provides opportunities for the pair to jointly buy equipment test stand-ards and conduct thorough market analysis

Each carrier will market the M2M platforms to players in markets including smart transport energy connected cars and smart cities The pair may also open the door to additional operators to boost the global potential of their standards and platforms

Telecomrsquos deal with France Telecom is similar in depth but covers access to and management of IP-based VPNs for business subscribers in domestic mar-kets and parts of Africa and the Middle East where France Telecom currently operates

A key element of the collabora-tion is an agreement to jointly develop networks The work has the potential to improve links between Europe Asia Pacific and Africa with the pair agreeing to explore new terrestrial and submarine cable links between the three continents

Telecom chairman Wang Xiaochu says working with France Telecom is ldquoan important part of the companyrsquos foreign

cooperation strategyrdquo and will help it re-alize ldquothe ambition of servicing custom-ers globallyrdquo

Wangrsquos ambition is also served by a Wi-Fi roaming element of the deal which sees France Telecom offer China Telecom customers access to its network of hotspots in Europe and vice-versa

France Telecom chief Steacutephane Rich-

ard was pleased to have closed a deal with Telecom noting it is an ldquoimportant step forwardrdquo for his firm

ldquoBoth parties are set to benefit from close cooperation by enabling each other to provide better customer access and services in our respective regionsrdquo Rich-ard says TA

ndash Michael Carroll

wwwtelecomasianet Telecom Asia OctNov 2011 7

iNDuSTrY ANAlYSiS

gtgt Mobile security spend to hit $3b by 2015Investments in mobile security will reach $7598 billion in 2011 and climb 44 per year through to 2015 Calanys estimates that only 4 of smartphones and tablets had some kind of mobile protection installed in 2010 but that this will rise to 20 by 2015 Mobile client security ndash such as anti-virus firewall messaging security web threat security VPN functionality and encryption ndash will outperform the market with an expected average growth of 546 per year until 2015 While North America has traditionally led mobile security adoption due largely to the presence of data compliance regulations investments in Western Europe are poised to rise sharply For Asia Latin America and MEA the boom will start in 2013

Canalys mobile security analysis wwwcanalyscom

gtgt LTE uptake a slow burnThe worldrsquos mobile operators are mostly taking a quiet approach to deploying LTE networks but as the ecosystem progresses subscribers to FD- or TD-LTE networks will near 80 million by the end of 2013 As a result of strong operator demand devices for both flavors of LTE are expected to flood the market over the next few years ABI Research predicts This inflow will drive subscriber interest and adoption Spectrum constraints are influencing LTE deployment decisions in many markets ndash as is the case in Saudi Arabia where all three operators recently launched TD-LTE services using 25-GHz spectrum originally intended for Wimax Singaporersquos M1 has likewise deployed FDD LTE on the 18-GHz band first slated for 3G usage

4G subscriber device and networks market datawwwabiresearchcom

gtgt DPI equipment spend to poised tripleThe service provider deep packet inspection equipment market will more than triple from 2011 to 2015 by which time global sales will top $16 billion The runaway growth is being driven by mobile operatorsrsquo eagerness to enable more granular traffic management and the flexibility to provide tiered or value-added services To accommodate these demands analytics on the subscriberrsquos services applications and behavior will become an integral part of DPI solutions over this period The market is in for particularly strong growth in APACrsquos emerging markets as operators encounter the congestion issues accompanying rapid subscriber growth

Service provider deep packet inspection products wwwinfoneticscompr20111H11-DPI-Deep-Packet-Inspection-Market-Highlightsasp

gtgt Mobile VoIP to pose growing threatRelationships between mobile operators and VoIP service providers are likely to remain frosty through to at least 2016 Juniper Research estimates that smartphone apps will account for four-fifths of the worldrsquos 640 million mobile VoIP users by this time and partnerships between cellcos and VoIP companies will remain rare VoIP specialists will instead pursue partnerships within the movers and shakers in social media Uptake of mobile VoIP services will be faster in the developed markets as there is a direct correlation between adoption and the rollout of 3G or 4G networks

Mobile voice amp video callingwwwjuniperresearchcom

India paves road to consolidation

After two years of stagnating earnings and cutthroat competition consolidation in Indiarsquos crowded mo-bile sector appears all but inevitable but is being held back by existing regulation

The Indian government is well aware that a 14-operator market is shaping up to be unsustainable and in October took several steps to facilitate mergers ndash but at the same time threatened action that would make life even more difficult for telcos

The nationrsquos Department of Telecom (DoT) published a draft of the New Telecom Policy a proposed far-reaching overhaul of existing regulations (See Analyst View on page xx)

Among numerous changes the government has suggested doing away with a restriction on mergers if it would result in the number of competing operators in a telecom circle falling below six proposing instead to base the minimum number of operators on the population in a given area

The DoT earlier suggested introducing an exit policy for newer operators including a possible mechanism for the government to buy back spectrum licenses for those wishing to give up on the sector

But even as the department moved to help reduce the number of operators it raised objections to initiatives some operators have taken on their own to address the problems caused by overcrowding

The strong demand for already-in-short-supply 3G spec-trum during last yearrsquos auctions ensured no operator ended up with pan-Indian spectrum In a bid to address this major players Bharti Airtel Vodafone and Idea Cellular forged a 3G roaming deal that would allow them to use each othersrsquo networks in areas where they lack spectrum

But in October the DoT threatened to object to this deal on the grounds that it may violate license conditions The operators dispute this claiming that their permits allow roaming agreements

Operatorsrsquo financial problems would also be exacerbated by a proposal in the New Telecom Policy to scrap inter-circle roaming charges forcing operators to charge a single rate for calls anywhere in India

Some analysts estimate that operator could lose a com-bined $400 million in revenue from such a move

The department in October also reportedly sent notices to five major operators ndash Bharti Vodafone Idea Reliance and Tata Teleservices ndash accusing them of misreporting revenue to pay lower license fees The DoT wants operators to pay fees based on revenue figures derived by the comptroller and auditor general of India All five dispute the charges TA

ndash Dylan Bushell-Embling

8 OctNov 2011 Telecom Asia wwwtelecomasianet

INSIGHT ONE MONTHrsquoS TELECOM RESEARCH

The floods that have ravaged much of central Thailand have left the countryrsquos industrial estates in ruins Heavy indus-

try especially the automotive sector has taken a huge hit with optimistic estimates saying it will be at least three months before manufacturing can resume

The hard drive industry is devastated with Western Digital the worldrsquos largest drive maker seeing its Thailand opera-tions now under a sea of mud and water Toshiba Canon Sony Nikon and a whole raft of other names also have been af-fected Even Applersquos Tim Cook has said that the supply chain disruptions will hit Apple hard

But the real damage will not be known until the often secretive supply chains are exposed as the flood waters finally subside in a few weeksrsquo time

One company Stars Microelectronics clearly illustrates the nature of the prob-lem as it threatens to derail many high-end touch-screen handset shipments

Stars is a specialist in capacitative screens and surfaces supplying finished touch screen assemblies to the leading handset makers in Taiwan and Korea and even white capacitative clickwheels used in a certain companyrsquos music player Many high-end touchpads for notebooks are also assembled there and more re-cently have also expanded into tough-ened glass capacitative screens

The company does not make the ca-pacitative films nor the circuitry nor the glass But it takes the glass from Europe the capacitative layer from Japan and the chips from everywhere in the world and assembles them into a sub-component that is in turn assembled into a phone somewhere else The added value in the chain is speed flexibility and the ability to run smaller batches than would other-wise be the case

Then there are countless Japanese chip makers that have seen their factories and cleanrooms flooded to the ceil-

Measuring the damage

ing Many have broken down crying in public partly out of despair partly out of anger at conflicting messages from the authorities One minute the Prime Minister was reassuring investors that the industrial estates would be protected the next people were running for their lives as a wall of water bore down on them

Come back in a monthThe outlook is not good Some of the

worst hit universities have postponed the beginning of term until the end of No-vember and even that may be optimistic given the scale of repairs needed

On the other hand the lack of information squabbling politicians and general mistrust of media has led to a boom in social network usage and cel-lular traffic as people shun government propaganda and instead turn to rely on new media and first-hand accounts from Facebook and Twitter

Frost amp Sullivan has said that Face-book growth originally forecast at 132 year on year will increase to 150 be-cause of the floods making Thailand the third fastest growing Facebook country after India Currently 17 of its popula-tion of 65 million is on Facebook

Leading telco AIS has seen traffic jump by 70 Traditional copper infra-

structure has not fared well under the on-slaught of water but the cellular networks have proven quite resilient AIS has lost only 67 of its 13000 base stations as of the last week of October If anything the redundant networks among the three ma-jor operators borne out of mistrust and inability to share infrastructure rather than by design has managed to keep most of the flood victims connected

Once the flood waters recede the question is what will be rebuilt and how will the global tech giants reassess risk planning in this day and age of global warming and extreme weather patterns

And what of planning the next-generation networks Thailand has like many other countries been moving toward a national broadband network for backhaul run by the incumbent state enterprise telcos Cynics say that is be-cause successive governments are quoting national security concerns as an excuse to create a monopoly on backhaul and milk the industry now that the visible retail sector will soon need to be liberalized But would this crisis change the minds of her leaders to a more distributed if more expensive series of redundant networks Or will the next natural disaster leave everyone cut off in the dark TA

ndash Don Sambandaraksa

wwwtelecomasianet Telecom Asia OctNov 2011 9

asian telecoms this month

BeijingHuawei is blocked from bidding for another US tender ndash this time for a public safety network ndash due to alleged national security concerns

The US ambassador to the WTO meanwhile calls on China to explain its criteria for blocking access to some for-eign websites raising concerns about censorshiprsquos impact on international competition

China Telecom and France Telecom strike a VPN and Wi-Fi sharing deal while China Unicom and Telefonica team up for M2M

ZTE moves to sell its controlling stake in Congo-Chine Telecom to Orange to divest the distraction from its core infrastructure business and avoid competing with its own customers

BangkokSevere flooding in Thailand disrupts fixed broadband networks and threatens to do the same to the component supply chain but mobile networks stand up remark-ably well

AIS puts the final touches on plans to offer roaming services to its customers through state-owned TOTrsquos 3G network

Hong kongPCCW Solutions wins a $465m deal with the Social Welfare Department to re-place the aging Computerized Social Security System

DelHiThe telecom ministry unveils its proposed new telecom policy including a plan to scrap inter-circle domestic roaming charges

The ministry blocks Qualcommrsquos petition for an ISP license to ac-company the BWA spectrum it paid $1b for last year but later re-neges after Qualcomm challenges the decision

The dispute between Norwayrsquos Tel-enor and JV partner Unitech over the management of GSM operator Uninor escalates

ZTE confirms it has won a deal for part of a TD-LTE rollout by Bharti Airtel but the operator is rumored to be planning to divide the remaining deals across multi-ple vendors

DHakaTelenor disputes a $400m tax bill from the government arising from a dispute covering subsidiary Grameenphonersquos revenue share on the sale of SIM cards

10 OctNov 2011 Telecom Asia wwwtelecomasianet

movements

Seoul KT is revealed to be in the final stages of talks to acquire a 20 stake in South Africarsquos Telkom for around $582m

z The iPhone 4S initially disappoints pundits with its similarity to the prior model but goes on to shatter Applersquos own launch-weekend sales records

z The 3GPP industry body 3G Americas claims that the next evolution of HSPA could push the peak theoretical transfer rate up to 336 Mbps

z Apple succeeds in stymieing Samsungrsquos plans to launch the Galaxy Tab 101 in Australia as Samsung is said to pip Apple as the top-selling smartphone vendor in the previous quarter

z Nokia swings to a pre-tax loss of over $200m as an increase in low-end phone sales fail to make up for a continued steep decline in smartphone sales

z Ericsson reports marginally higher profit for the third quarter and higher sales but its cash flow plummets due to its underperforming JVs

z Sony buys out Ericssonrsquos half of Sony-Ericsson for $15b

z RIM is hit with a three-day messaging service outage that at various times affects parts of the US Europe Africa India and the Middle East

z Chipmakers Sequans and Fujitsu Semiconductor forge an alli-ance to develop LTE baseband chips with multimode 2G3GLTE RF transceivers

z The GSMA estimates that the APAC mobile market will be worth $447b by 2020 accounting for the lionrsquos share of the worldrsquos $12tr market

z In another long-term prediction Gartner suggests that tablets could replace smartphones as the go-to device for consumers to have in their pockets in five to ten years

z Fitch Ratings cuts its outlook on two Italian operators ndash Wind and Telecom Italia ndash as the countryrsquos debt woes seep through to local busi-nesses

z The Mobile Entertainment Forum claims that more consumers ac-cess mobile internet services on a daily basis than browse on fixed-line connections

z Yahoo takes aim at the feature-phone market in emerging Asian nations with partnerships to embed its internet services into mobile chipsets bound for the devices

z Virgin Media commences a trial of 15-GHz broadband using new cable access technology from Cisco suggesting the war between cable-cos and telcos for subscribers is heating up

z Texas Instruments provides a lower than anticipated forecast for Q4 sales in an indication that the chip industry is still facing financial problems

z Google indicates it may complement its 1-Gbps fiber network pilot in parts of the US with a similar trial in a European country

z IBM picks sales head Virginia Rometty to become the companyrsquos first female CEO in its 100-year history

SyDneyTelstra shareholders reluctantly accept an $11b deal with the govern-ment to phase out the operatorrsquos fixed-line wholesale business and migrate its fixed-line customers to the NBN

Commonwealth Bank plans to introduce an NFC payment service for Android and iOS devices integrating an NFC chip into special cases for phones that lack an internal one

SingaporeM1 and Verizon Business complete a two-year joint fiber rollout project in northern and western Singapore

kuala lumpurP1 becomes Malaysiarsquos third operator ndash after Celcom and Maxis ndash to sign a deal to offer services on Telekom Malaysiarsquos open-access HSBB network

mumBaiStruggling state-owned BSNL asks to be let out of its mandate to

deploy Wimax ndash except in rural areas ndash in a market due to be dominated by TD-LTE

TokyoKDDI reports a 48 gain in Q3 profit but this is not enough for the operator to revise its forecast of a 2 decline for the full year

NTT Com is said to be planning to invest close to $16b to expand its cloud computing capabilities outside of Japan

manila Conglomerate San Miguel arranges to pay around $35m to up its stake in Eastern Telecom to a controlling 78 from an effective 40

PLDT buys a controlling stake in mobile rival Digitel in a deal worth around $16b after finally convincing regulators to accept the deal by offering to give up 10-MHz of spectrum

wwwtelecomasianet Telecom Asia OctNov 2011 11

COVer STOrY

Taking apps to the next levelDemand for mobile apps shows no sign of letting up over the next five years but the apps landscape itself is a work in progress constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business from tablets and mobile OS developments to web apps and augmented reality

John C Tanner

12 OctNov 2011 Telecom Asia wwwtelecomasianet

More coverage of

Mobile Apps

A huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another application

The fragmented mobile OS landscape that apps develop-ers must navigate is in flux as existing OS platforms are be-ing combined and even aban-

doned and new ones keep popping upThis year alone wersquove seen HP aban-

don its WebOS platform while both Nokia and Intel have abandoned the MeeGo OS project Intel is now backing Tizen a new open-source OS from the Linux Foundation and the LiMo Foun-dation that recycles some components of MeeGo and is based on the Samsung Linux Platform that LiMo uses for its open-source mobile OS

Meanwhile speculation about the fate of WebOS ndash and the possibility of companies like Facebook and Amazon taking it over ndash highlights the desire by content-driven companies to gain more control of the mobile OS platform rath-er than ride on top of someone elsersquos

ABI senior analyst Aapo Markkanen says Facebook needs its own OS because of the growing ubiquity of mobile so-cial networking ldquoA huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another applicationrdquo

Other web players are already doing just that In July Chinarsquos Alibaba Cloud Computing unveiled its own cloud-based mobile OS ndash dubbed Aliyun OS ndash as well as the first device that will run on it the K-Touch Cloud-Smart Phone W700 Aliyun supports Android apps web apps and cloud services such as email search weather updates and mappingnavigation tools though the ultimate goal for Alibaba is to develop a smartphone strategy for its e-commerce business

Also in July Mozilla revealed plans to develop an OS called Boot to Gecko which will be based on the Gecko en-

and both native and HTML5 developer environments as well as BlackBerry Runtime for Android Apps

The bad news for developers says Ovum chief telecom analyst Jan Daw-son is ldquothe adoption of QNX across the entire line in the coming months and years also means that RIM is leaving its traditional BlackBerry developers high and dryrdquo Dawson says existing develop-ers will have no choice but to start from scratch with an entirely new develop-ment environment

gine that drives its Fire-fox browser Develop-ment projects for Boot To Gecko include new web APIs linking OS and device capabilities like text cameras Blue-tooth and NFC chips to content

The good news is that there is some uni-fication of sorts in pro-gress most notably Googlersquos Android 40 ndash aka Ice Cream Sand-wich ndash which brings the smartphone and tablet versions of Android into a single version

ldquoBy creating a sin-gle version of Android Google is making it easier for develop-ers to modify their apps and take ad-vantage of the larger screens of tablets which should stimulate the creation of apps designed for Android tabletsrdquo Nick Dillon devices and platforms ana-lyst for Ovum said in a research note

RIM has done something similar with the recent launch of its new flag-ship BBX platform which merges the BlackBerry 7 smartphone OS with the QNX OS for its PlayBook tablets BBX will support BlackBerry cloud services

Mobile OS landscape The goalposts keep changing for developers Also even Alibaba has one now

wwwtelecomasianet Telecom Asia OctNov 2011 13

COVer STOrY

Native apps are the de facto format for the current apps boom but thatrsquos ex-pected to change with the development of web apps

ndash apps hosted in the cloud that run on the browser and thanks to features within the HTML5 standard can func-tion like native apps even when the de-vice is offline Indeed web apps are at the heart of Googlersquos long-term mobile ambitions ndash so much so that its com-mission fee for apps developers is a paltry 5 (compared to Applersquos 30)

The appeal of web apps is dead simple theyrsquore OS-agnostic which means apps developers can reach a much broader base of users with-out having to write separate apps for

iOS Android BlackBerry WP7 Bada LiMo etc How broad Letrsquos put it this way according to ABI Research over 21 billion mobile devices will have HTML5 browsers by 2016 compared to 109 million last year

Even though the World Wide Web Consortium (W3C) says the HTML5 standard wonrsquot be finished until the end of the decade 25 HTML5 features currently in development will be in wide use within the next three to five years says ABI senior analyst Mark Beccue ldquoWe expect HTML5 features in categories such as graphics multi-media user interactions and data stor-age to be widely adopted sooner rather than laterrdquo

But that doesnrsquot mean web apps

will be competing with those plat-forms or with native apps in general Beccue adds ldquoHTML5 adoption is go-ing to accelerate because it will be a key differentiator in the smartphone OS war I believe that Apple will be the key driver of HTML5 and consequently a primary benefactor as wellrdquo

Ovumrsquos Nick Dillon adds that the rise of web apps wonrsquot spell the end of either native apps nor the app storefront model ldquoApp stores offer a familiar environment for consumer to discover download and purchase apps and we anticipate that the major-ity of app stores will list a mix of both HTML5 and native applications in their catalogues in the futurerdquo

Web apps

Apps for feature phones

HTML5-enabled cloud apps wonrsquot kill native apps or kill app stores

23 billion feature phones in 2016 = major apps opportunity

The apps phenomenon has been limited to smartphones and more recently tablets for fairly obvious reasons But for all the talk about increasing

smartphone adoption as lower-priced models hit the shelves feature phones will remain the largest handset segment for some time Ovum forecasts the number of feature phones worldwide to reach 23 billion in five years which will account for 63 of the market

Thatrsquos a huge untapped market for apps developers limited to smartphone OSs and demand is such that Ovum predicts the feature-phone apps rev-enues will top $1 billion by 2016

Part of that growth will come from larger handset manufacturers operators and third parties offering improved dis-tribution channels for feature phones which have been lacking until recently

says Nick Dillon of Ovum Also de-velopers will leverage existing software options like JavaME Nokia web widg-ets and Opera Mini widgets to develop simple web apps before moving on to HTML5 as more feature phones ship with compatible browsers (see above)

Meanwhile therersquos the ongoing work of the WAC (Wholesale Applica-tions Community) which opened shop in February with eight operators and 12000 apps WAC is creating APIs aimed at runtime environments and browsers with the goal of building an OS-agnos-tic wholesale storefront ecosystem and billing platform that can bring feature phones into the apps ecosystem

WAC has been quiet since its Febru-ary launch But last month WAC CEO Peters Suh said in a blog post that ldquoa number of WAC member operators in Asia are on track to launch services in

Q4 2011 across a range of devices and a number of application storefrontsrdquo

Suh also said that WAC is devel-oping its suite of operator supported network APIs (starting with in-app payments) ldquowhich are currently be-ing implemented by a select number of developers with the aim of opening this up to a wider audience over the coming monthsrdquo Suh said WACrsquos network API service offering would be available in early 2012

WACrsquos network API for in-app pay-ments is well-timed According to app marketplace analytics firm Distimo in-app purchases account for a whopping 72 of iPhone app revenues (compared to just 28 a year ago) Close to half of those in-app payments were via free apps More remarkably less than 5 of all iOS apps even offer in-app pur-chases

14 OctNov 2011 Telecom Asia wwwtelecomasianet

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 8: Telecom Asia 201111

iNDuSTrY ANAlYSiS

Chinese operators look west for growth

Two of Chinarsquos leading telcos are boosting their global expansion ambitions through partnerships with leading European operators

but they are focusing on very different areas to achieve those goals

China Telecom is allying with France Telecom in a deal covering IP-based VPN services while rival China Unicom has paired with Telefonicarsquos new digital division to develop global machine-to-machine (M2M) standards

The partnership ndash one of the first by the new Telefonica business ndash pri-marily covers developing cross-border technical specifications for M2M com-munications based on jointly produced and maintained platforms However it also provides opportunities for the pair to jointly buy equipment test stand-ards and conduct thorough market analysis

Each carrier will market the M2M platforms to players in markets including smart transport energy connected cars and smart cities The pair may also open the door to additional operators to boost the global potential of their standards and platforms

Telecomrsquos deal with France Telecom is similar in depth but covers access to and management of IP-based VPNs for business subscribers in domestic mar-kets and parts of Africa and the Middle East where France Telecom currently operates

A key element of the collabora-tion is an agreement to jointly develop networks The work has the potential to improve links between Europe Asia Pacific and Africa with the pair agreeing to explore new terrestrial and submarine cable links between the three continents

Telecom chairman Wang Xiaochu says working with France Telecom is ldquoan important part of the companyrsquos foreign

cooperation strategyrdquo and will help it re-alize ldquothe ambition of servicing custom-ers globallyrdquo

Wangrsquos ambition is also served by a Wi-Fi roaming element of the deal which sees France Telecom offer China Telecom customers access to its network of hotspots in Europe and vice-versa

France Telecom chief Steacutephane Rich-

ard was pleased to have closed a deal with Telecom noting it is an ldquoimportant step forwardrdquo for his firm

ldquoBoth parties are set to benefit from close cooperation by enabling each other to provide better customer access and services in our respective regionsrdquo Rich-ard says TA

ndash Michael Carroll

wwwtelecomasianet Telecom Asia OctNov 2011 7

iNDuSTrY ANAlYSiS

gtgt Mobile security spend to hit $3b by 2015Investments in mobile security will reach $7598 billion in 2011 and climb 44 per year through to 2015 Calanys estimates that only 4 of smartphones and tablets had some kind of mobile protection installed in 2010 but that this will rise to 20 by 2015 Mobile client security ndash such as anti-virus firewall messaging security web threat security VPN functionality and encryption ndash will outperform the market with an expected average growth of 546 per year until 2015 While North America has traditionally led mobile security adoption due largely to the presence of data compliance regulations investments in Western Europe are poised to rise sharply For Asia Latin America and MEA the boom will start in 2013

Canalys mobile security analysis wwwcanalyscom

gtgt LTE uptake a slow burnThe worldrsquos mobile operators are mostly taking a quiet approach to deploying LTE networks but as the ecosystem progresses subscribers to FD- or TD-LTE networks will near 80 million by the end of 2013 As a result of strong operator demand devices for both flavors of LTE are expected to flood the market over the next few years ABI Research predicts This inflow will drive subscriber interest and adoption Spectrum constraints are influencing LTE deployment decisions in many markets ndash as is the case in Saudi Arabia where all three operators recently launched TD-LTE services using 25-GHz spectrum originally intended for Wimax Singaporersquos M1 has likewise deployed FDD LTE on the 18-GHz band first slated for 3G usage

4G subscriber device and networks market datawwwabiresearchcom

gtgt DPI equipment spend to poised tripleThe service provider deep packet inspection equipment market will more than triple from 2011 to 2015 by which time global sales will top $16 billion The runaway growth is being driven by mobile operatorsrsquo eagerness to enable more granular traffic management and the flexibility to provide tiered or value-added services To accommodate these demands analytics on the subscriberrsquos services applications and behavior will become an integral part of DPI solutions over this period The market is in for particularly strong growth in APACrsquos emerging markets as operators encounter the congestion issues accompanying rapid subscriber growth

Service provider deep packet inspection products wwwinfoneticscompr20111H11-DPI-Deep-Packet-Inspection-Market-Highlightsasp

gtgt Mobile VoIP to pose growing threatRelationships between mobile operators and VoIP service providers are likely to remain frosty through to at least 2016 Juniper Research estimates that smartphone apps will account for four-fifths of the worldrsquos 640 million mobile VoIP users by this time and partnerships between cellcos and VoIP companies will remain rare VoIP specialists will instead pursue partnerships within the movers and shakers in social media Uptake of mobile VoIP services will be faster in the developed markets as there is a direct correlation between adoption and the rollout of 3G or 4G networks

Mobile voice amp video callingwwwjuniperresearchcom

India paves road to consolidation

After two years of stagnating earnings and cutthroat competition consolidation in Indiarsquos crowded mo-bile sector appears all but inevitable but is being held back by existing regulation

The Indian government is well aware that a 14-operator market is shaping up to be unsustainable and in October took several steps to facilitate mergers ndash but at the same time threatened action that would make life even more difficult for telcos

The nationrsquos Department of Telecom (DoT) published a draft of the New Telecom Policy a proposed far-reaching overhaul of existing regulations (See Analyst View on page xx)

Among numerous changes the government has suggested doing away with a restriction on mergers if it would result in the number of competing operators in a telecom circle falling below six proposing instead to base the minimum number of operators on the population in a given area

The DoT earlier suggested introducing an exit policy for newer operators including a possible mechanism for the government to buy back spectrum licenses for those wishing to give up on the sector

But even as the department moved to help reduce the number of operators it raised objections to initiatives some operators have taken on their own to address the problems caused by overcrowding

The strong demand for already-in-short-supply 3G spec-trum during last yearrsquos auctions ensured no operator ended up with pan-Indian spectrum In a bid to address this major players Bharti Airtel Vodafone and Idea Cellular forged a 3G roaming deal that would allow them to use each othersrsquo networks in areas where they lack spectrum

But in October the DoT threatened to object to this deal on the grounds that it may violate license conditions The operators dispute this claiming that their permits allow roaming agreements

Operatorsrsquo financial problems would also be exacerbated by a proposal in the New Telecom Policy to scrap inter-circle roaming charges forcing operators to charge a single rate for calls anywhere in India

Some analysts estimate that operator could lose a com-bined $400 million in revenue from such a move

The department in October also reportedly sent notices to five major operators ndash Bharti Vodafone Idea Reliance and Tata Teleservices ndash accusing them of misreporting revenue to pay lower license fees The DoT wants operators to pay fees based on revenue figures derived by the comptroller and auditor general of India All five dispute the charges TA

ndash Dylan Bushell-Embling

8 OctNov 2011 Telecom Asia wwwtelecomasianet

INSIGHT ONE MONTHrsquoS TELECOM RESEARCH

The floods that have ravaged much of central Thailand have left the countryrsquos industrial estates in ruins Heavy indus-

try especially the automotive sector has taken a huge hit with optimistic estimates saying it will be at least three months before manufacturing can resume

The hard drive industry is devastated with Western Digital the worldrsquos largest drive maker seeing its Thailand opera-tions now under a sea of mud and water Toshiba Canon Sony Nikon and a whole raft of other names also have been af-fected Even Applersquos Tim Cook has said that the supply chain disruptions will hit Apple hard

But the real damage will not be known until the often secretive supply chains are exposed as the flood waters finally subside in a few weeksrsquo time

One company Stars Microelectronics clearly illustrates the nature of the prob-lem as it threatens to derail many high-end touch-screen handset shipments

Stars is a specialist in capacitative screens and surfaces supplying finished touch screen assemblies to the leading handset makers in Taiwan and Korea and even white capacitative clickwheels used in a certain companyrsquos music player Many high-end touchpads for notebooks are also assembled there and more re-cently have also expanded into tough-ened glass capacitative screens

The company does not make the ca-pacitative films nor the circuitry nor the glass But it takes the glass from Europe the capacitative layer from Japan and the chips from everywhere in the world and assembles them into a sub-component that is in turn assembled into a phone somewhere else The added value in the chain is speed flexibility and the ability to run smaller batches than would other-wise be the case

Then there are countless Japanese chip makers that have seen their factories and cleanrooms flooded to the ceil-

Measuring the damage

ing Many have broken down crying in public partly out of despair partly out of anger at conflicting messages from the authorities One minute the Prime Minister was reassuring investors that the industrial estates would be protected the next people were running for their lives as a wall of water bore down on them

Come back in a monthThe outlook is not good Some of the

worst hit universities have postponed the beginning of term until the end of No-vember and even that may be optimistic given the scale of repairs needed

On the other hand the lack of information squabbling politicians and general mistrust of media has led to a boom in social network usage and cel-lular traffic as people shun government propaganda and instead turn to rely on new media and first-hand accounts from Facebook and Twitter

Frost amp Sullivan has said that Face-book growth originally forecast at 132 year on year will increase to 150 be-cause of the floods making Thailand the third fastest growing Facebook country after India Currently 17 of its popula-tion of 65 million is on Facebook

Leading telco AIS has seen traffic jump by 70 Traditional copper infra-

structure has not fared well under the on-slaught of water but the cellular networks have proven quite resilient AIS has lost only 67 of its 13000 base stations as of the last week of October If anything the redundant networks among the three ma-jor operators borne out of mistrust and inability to share infrastructure rather than by design has managed to keep most of the flood victims connected

Once the flood waters recede the question is what will be rebuilt and how will the global tech giants reassess risk planning in this day and age of global warming and extreme weather patterns

And what of planning the next-generation networks Thailand has like many other countries been moving toward a national broadband network for backhaul run by the incumbent state enterprise telcos Cynics say that is be-cause successive governments are quoting national security concerns as an excuse to create a monopoly on backhaul and milk the industry now that the visible retail sector will soon need to be liberalized But would this crisis change the minds of her leaders to a more distributed if more expensive series of redundant networks Or will the next natural disaster leave everyone cut off in the dark TA

ndash Don Sambandaraksa

wwwtelecomasianet Telecom Asia OctNov 2011 9

asian telecoms this month

BeijingHuawei is blocked from bidding for another US tender ndash this time for a public safety network ndash due to alleged national security concerns

The US ambassador to the WTO meanwhile calls on China to explain its criteria for blocking access to some for-eign websites raising concerns about censorshiprsquos impact on international competition

China Telecom and France Telecom strike a VPN and Wi-Fi sharing deal while China Unicom and Telefonica team up for M2M

ZTE moves to sell its controlling stake in Congo-Chine Telecom to Orange to divest the distraction from its core infrastructure business and avoid competing with its own customers

BangkokSevere flooding in Thailand disrupts fixed broadband networks and threatens to do the same to the component supply chain but mobile networks stand up remark-ably well

AIS puts the final touches on plans to offer roaming services to its customers through state-owned TOTrsquos 3G network

Hong kongPCCW Solutions wins a $465m deal with the Social Welfare Department to re-place the aging Computerized Social Security System

DelHiThe telecom ministry unveils its proposed new telecom policy including a plan to scrap inter-circle domestic roaming charges

The ministry blocks Qualcommrsquos petition for an ISP license to ac-company the BWA spectrum it paid $1b for last year but later re-neges after Qualcomm challenges the decision

The dispute between Norwayrsquos Tel-enor and JV partner Unitech over the management of GSM operator Uninor escalates

ZTE confirms it has won a deal for part of a TD-LTE rollout by Bharti Airtel but the operator is rumored to be planning to divide the remaining deals across multi-ple vendors

DHakaTelenor disputes a $400m tax bill from the government arising from a dispute covering subsidiary Grameenphonersquos revenue share on the sale of SIM cards

10 OctNov 2011 Telecom Asia wwwtelecomasianet

movements

Seoul KT is revealed to be in the final stages of talks to acquire a 20 stake in South Africarsquos Telkom for around $582m

z The iPhone 4S initially disappoints pundits with its similarity to the prior model but goes on to shatter Applersquos own launch-weekend sales records

z The 3GPP industry body 3G Americas claims that the next evolution of HSPA could push the peak theoretical transfer rate up to 336 Mbps

z Apple succeeds in stymieing Samsungrsquos plans to launch the Galaxy Tab 101 in Australia as Samsung is said to pip Apple as the top-selling smartphone vendor in the previous quarter

z Nokia swings to a pre-tax loss of over $200m as an increase in low-end phone sales fail to make up for a continued steep decline in smartphone sales

z Ericsson reports marginally higher profit for the third quarter and higher sales but its cash flow plummets due to its underperforming JVs

z Sony buys out Ericssonrsquos half of Sony-Ericsson for $15b

z RIM is hit with a three-day messaging service outage that at various times affects parts of the US Europe Africa India and the Middle East

z Chipmakers Sequans and Fujitsu Semiconductor forge an alli-ance to develop LTE baseband chips with multimode 2G3GLTE RF transceivers

z The GSMA estimates that the APAC mobile market will be worth $447b by 2020 accounting for the lionrsquos share of the worldrsquos $12tr market

z In another long-term prediction Gartner suggests that tablets could replace smartphones as the go-to device for consumers to have in their pockets in five to ten years

z Fitch Ratings cuts its outlook on two Italian operators ndash Wind and Telecom Italia ndash as the countryrsquos debt woes seep through to local busi-nesses

z The Mobile Entertainment Forum claims that more consumers ac-cess mobile internet services on a daily basis than browse on fixed-line connections

z Yahoo takes aim at the feature-phone market in emerging Asian nations with partnerships to embed its internet services into mobile chipsets bound for the devices

z Virgin Media commences a trial of 15-GHz broadband using new cable access technology from Cisco suggesting the war between cable-cos and telcos for subscribers is heating up

z Texas Instruments provides a lower than anticipated forecast for Q4 sales in an indication that the chip industry is still facing financial problems

z Google indicates it may complement its 1-Gbps fiber network pilot in parts of the US with a similar trial in a European country

z IBM picks sales head Virginia Rometty to become the companyrsquos first female CEO in its 100-year history

SyDneyTelstra shareholders reluctantly accept an $11b deal with the govern-ment to phase out the operatorrsquos fixed-line wholesale business and migrate its fixed-line customers to the NBN

Commonwealth Bank plans to introduce an NFC payment service for Android and iOS devices integrating an NFC chip into special cases for phones that lack an internal one

SingaporeM1 and Verizon Business complete a two-year joint fiber rollout project in northern and western Singapore

kuala lumpurP1 becomes Malaysiarsquos third operator ndash after Celcom and Maxis ndash to sign a deal to offer services on Telekom Malaysiarsquos open-access HSBB network

mumBaiStruggling state-owned BSNL asks to be let out of its mandate to

deploy Wimax ndash except in rural areas ndash in a market due to be dominated by TD-LTE

TokyoKDDI reports a 48 gain in Q3 profit but this is not enough for the operator to revise its forecast of a 2 decline for the full year

NTT Com is said to be planning to invest close to $16b to expand its cloud computing capabilities outside of Japan

manila Conglomerate San Miguel arranges to pay around $35m to up its stake in Eastern Telecom to a controlling 78 from an effective 40

PLDT buys a controlling stake in mobile rival Digitel in a deal worth around $16b after finally convincing regulators to accept the deal by offering to give up 10-MHz of spectrum

wwwtelecomasianet Telecom Asia OctNov 2011 11

COVer STOrY

Taking apps to the next levelDemand for mobile apps shows no sign of letting up over the next five years but the apps landscape itself is a work in progress constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business from tablets and mobile OS developments to web apps and augmented reality

John C Tanner

12 OctNov 2011 Telecom Asia wwwtelecomasianet

More coverage of

Mobile Apps

A huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another application

The fragmented mobile OS landscape that apps develop-ers must navigate is in flux as existing OS platforms are be-ing combined and even aban-

doned and new ones keep popping upThis year alone wersquove seen HP aban-

don its WebOS platform while both Nokia and Intel have abandoned the MeeGo OS project Intel is now backing Tizen a new open-source OS from the Linux Foundation and the LiMo Foun-dation that recycles some components of MeeGo and is based on the Samsung Linux Platform that LiMo uses for its open-source mobile OS

Meanwhile speculation about the fate of WebOS ndash and the possibility of companies like Facebook and Amazon taking it over ndash highlights the desire by content-driven companies to gain more control of the mobile OS platform rath-er than ride on top of someone elsersquos

ABI senior analyst Aapo Markkanen says Facebook needs its own OS because of the growing ubiquity of mobile so-cial networking ldquoA huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another applicationrdquo

Other web players are already doing just that In July Chinarsquos Alibaba Cloud Computing unveiled its own cloud-based mobile OS ndash dubbed Aliyun OS ndash as well as the first device that will run on it the K-Touch Cloud-Smart Phone W700 Aliyun supports Android apps web apps and cloud services such as email search weather updates and mappingnavigation tools though the ultimate goal for Alibaba is to develop a smartphone strategy for its e-commerce business

Also in July Mozilla revealed plans to develop an OS called Boot to Gecko which will be based on the Gecko en-

and both native and HTML5 developer environments as well as BlackBerry Runtime for Android Apps

The bad news for developers says Ovum chief telecom analyst Jan Daw-son is ldquothe adoption of QNX across the entire line in the coming months and years also means that RIM is leaving its traditional BlackBerry developers high and dryrdquo Dawson says existing develop-ers will have no choice but to start from scratch with an entirely new develop-ment environment

gine that drives its Fire-fox browser Develop-ment projects for Boot To Gecko include new web APIs linking OS and device capabilities like text cameras Blue-tooth and NFC chips to content

The good news is that there is some uni-fication of sorts in pro-gress most notably Googlersquos Android 40 ndash aka Ice Cream Sand-wich ndash which brings the smartphone and tablet versions of Android into a single version

ldquoBy creating a sin-gle version of Android Google is making it easier for develop-ers to modify their apps and take ad-vantage of the larger screens of tablets which should stimulate the creation of apps designed for Android tabletsrdquo Nick Dillon devices and platforms ana-lyst for Ovum said in a research note

RIM has done something similar with the recent launch of its new flag-ship BBX platform which merges the BlackBerry 7 smartphone OS with the QNX OS for its PlayBook tablets BBX will support BlackBerry cloud services

Mobile OS landscape The goalposts keep changing for developers Also even Alibaba has one now

wwwtelecomasianet Telecom Asia OctNov 2011 13

COVer STOrY

Native apps are the de facto format for the current apps boom but thatrsquos ex-pected to change with the development of web apps

ndash apps hosted in the cloud that run on the browser and thanks to features within the HTML5 standard can func-tion like native apps even when the de-vice is offline Indeed web apps are at the heart of Googlersquos long-term mobile ambitions ndash so much so that its com-mission fee for apps developers is a paltry 5 (compared to Applersquos 30)

The appeal of web apps is dead simple theyrsquore OS-agnostic which means apps developers can reach a much broader base of users with-out having to write separate apps for

iOS Android BlackBerry WP7 Bada LiMo etc How broad Letrsquos put it this way according to ABI Research over 21 billion mobile devices will have HTML5 browsers by 2016 compared to 109 million last year

Even though the World Wide Web Consortium (W3C) says the HTML5 standard wonrsquot be finished until the end of the decade 25 HTML5 features currently in development will be in wide use within the next three to five years says ABI senior analyst Mark Beccue ldquoWe expect HTML5 features in categories such as graphics multi-media user interactions and data stor-age to be widely adopted sooner rather than laterrdquo

But that doesnrsquot mean web apps

will be competing with those plat-forms or with native apps in general Beccue adds ldquoHTML5 adoption is go-ing to accelerate because it will be a key differentiator in the smartphone OS war I believe that Apple will be the key driver of HTML5 and consequently a primary benefactor as wellrdquo

Ovumrsquos Nick Dillon adds that the rise of web apps wonrsquot spell the end of either native apps nor the app storefront model ldquoApp stores offer a familiar environment for consumer to discover download and purchase apps and we anticipate that the major-ity of app stores will list a mix of both HTML5 and native applications in their catalogues in the futurerdquo

Web apps

Apps for feature phones

HTML5-enabled cloud apps wonrsquot kill native apps or kill app stores

23 billion feature phones in 2016 = major apps opportunity

The apps phenomenon has been limited to smartphones and more recently tablets for fairly obvious reasons But for all the talk about increasing

smartphone adoption as lower-priced models hit the shelves feature phones will remain the largest handset segment for some time Ovum forecasts the number of feature phones worldwide to reach 23 billion in five years which will account for 63 of the market

Thatrsquos a huge untapped market for apps developers limited to smartphone OSs and demand is such that Ovum predicts the feature-phone apps rev-enues will top $1 billion by 2016

Part of that growth will come from larger handset manufacturers operators and third parties offering improved dis-tribution channels for feature phones which have been lacking until recently

says Nick Dillon of Ovum Also de-velopers will leverage existing software options like JavaME Nokia web widg-ets and Opera Mini widgets to develop simple web apps before moving on to HTML5 as more feature phones ship with compatible browsers (see above)

Meanwhile therersquos the ongoing work of the WAC (Wholesale Applica-tions Community) which opened shop in February with eight operators and 12000 apps WAC is creating APIs aimed at runtime environments and browsers with the goal of building an OS-agnos-tic wholesale storefront ecosystem and billing platform that can bring feature phones into the apps ecosystem

WAC has been quiet since its Febru-ary launch But last month WAC CEO Peters Suh said in a blog post that ldquoa number of WAC member operators in Asia are on track to launch services in

Q4 2011 across a range of devices and a number of application storefrontsrdquo

Suh also said that WAC is devel-oping its suite of operator supported network APIs (starting with in-app payments) ldquowhich are currently be-ing implemented by a select number of developers with the aim of opening this up to a wider audience over the coming monthsrdquo Suh said WACrsquos network API service offering would be available in early 2012

WACrsquos network API for in-app pay-ments is well-timed According to app marketplace analytics firm Distimo in-app purchases account for a whopping 72 of iPhone app revenues (compared to just 28 a year ago) Close to half of those in-app payments were via free apps More remarkably less than 5 of all iOS apps even offer in-app pur-chases

14 OctNov 2011 Telecom Asia wwwtelecomasianet

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 9: Telecom Asia 201111

iNDuSTrY ANAlYSiS

gtgt Mobile security spend to hit $3b by 2015Investments in mobile security will reach $7598 billion in 2011 and climb 44 per year through to 2015 Calanys estimates that only 4 of smartphones and tablets had some kind of mobile protection installed in 2010 but that this will rise to 20 by 2015 Mobile client security ndash such as anti-virus firewall messaging security web threat security VPN functionality and encryption ndash will outperform the market with an expected average growth of 546 per year until 2015 While North America has traditionally led mobile security adoption due largely to the presence of data compliance regulations investments in Western Europe are poised to rise sharply For Asia Latin America and MEA the boom will start in 2013

Canalys mobile security analysis wwwcanalyscom

gtgt LTE uptake a slow burnThe worldrsquos mobile operators are mostly taking a quiet approach to deploying LTE networks but as the ecosystem progresses subscribers to FD- or TD-LTE networks will near 80 million by the end of 2013 As a result of strong operator demand devices for both flavors of LTE are expected to flood the market over the next few years ABI Research predicts This inflow will drive subscriber interest and adoption Spectrum constraints are influencing LTE deployment decisions in many markets ndash as is the case in Saudi Arabia where all three operators recently launched TD-LTE services using 25-GHz spectrum originally intended for Wimax Singaporersquos M1 has likewise deployed FDD LTE on the 18-GHz band first slated for 3G usage

4G subscriber device and networks market datawwwabiresearchcom

gtgt DPI equipment spend to poised tripleThe service provider deep packet inspection equipment market will more than triple from 2011 to 2015 by which time global sales will top $16 billion The runaway growth is being driven by mobile operatorsrsquo eagerness to enable more granular traffic management and the flexibility to provide tiered or value-added services To accommodate these demands analytics on the subscriberrsquos services applications and behavior will become an integral part of DPI solutions over this period The market is in for particularly strong growth in APACrsquos emerging markets as operators encounter the congestion issues accompanying rapid subscriber growth

Service provider deep packet inspection products wwwinfoneticscompr20111H11-DPI-Deep-Packet-Inspection-Market-Highlightsasp

gtgt Mobile VoIP to pose growing threatRelationships between mobile operators and VoIP service providers are likely to remain frosty through to at least 2016 Juniper Research estimates that smartphone apps will account for four-fifths of the worldrsquos 640 million mobile VoIP users by this time and partnerships between cellcos and VoIP companies will remain rare VoIP specialists will instead pursue partnerships within the movers and shakers in social media Uptake of mobile VoIP services will be faster in the developed markets as there is a direct correlation between adoption and the rollout of 3G or 4G networks

Mobile voice amp video callingwwwjuniperresearchcom

India paves road to consolidation

After two years of stagnating earnings and cutthroat competition consolidation in Indiarsquos crowded mo-bile sector appears all but inevitable but is being held back by existing regulation

The Indian government is well aware that a 14-operator market is shaping up to be unsustainable and in October took several steps to facilitate mergers ndash but at the same time threatened action that would make life even more difficult for telcos

The nationrsquos Department of Telecom (DoT) published a draft of the New Telecom Policy a proposed far-reaching overhaul of existing regulations (See Analyst View on page xx)

Among numerous changes the government has suggested doing away with a restriction on mergers if it would result in the number of competing operators in a telecom circle falling below six proposing instead to base the minimum number of operators on the population in a given area

The DoT earlier suggested introducing an exit policy for newer operators including a possible mechanism for the government to buy back spectrum licenses for those wishing to give up on the sector

But even as the department moved to help reduce the number of operators it raised objections to initiatives some operators have taken on their own to address the problems caused by overcrowding

The strong demand for already-in-short-supply 3G spec-trum during last yearrsquos auctions ensured no operator ended up with pan-Indian spectrum In a bid to address this major players Bharti Airtel Vodafone and Idea Cellular forged a 3G roaming deal that would allow them to use each othersrsquo networks in areas where they lack spectrum

But in October the DoT threatened to object to this deal on the grounds that it may violate license conditions The operators dispute this claiming that their permits allow roaming agreements

Operatorsrsquo financial problems would also be exacerbated by a proposal in the New Telecom Policy to scrap inter-circle roaming charges forcing operators to charge a single rate for calls anywhere in India

Some analysts estimate that operator could lose a com-bined $400 million in revenue from such a move

The department in October also reportedly sent notices to five major operators ndash Bharti Vodafone Idea Reliance and Tata Teleservices ndash accusing them of misreporting revenue to pay lower license fees The DoT wants operators to pay fees based on revenue figures derived by the comptroller and auditor general of India All five dispute the charges TA

ndash Dylan Bushell-Embling

8 OctNov 2011 Telecom Asia wwwtelecomasianet

INSIGHT ONE MONTHrsquoS TELECOM RESEARCH

The floods that have ravaged much of central Thailand have left the countryrsquos industrial estates in ruins Heavy indus-

try especially the automotive sector has taken a huge hit with optimistic estimates saying it will be at least three months before manufacturing can resume

The hard drive industry is devastated with Western Digital the worldrsquos largest drive maker seeing its Thailand opera-tions now under a sea of mud and water Toshiba Canon Sony Nikon and a whole raft of other names also have been af-fected Even Applersquos Tim Cook has said that the supply chain disruptions will hit Apple hard

But the real damage will not be known until the often secretive supply chains are exposed as the flood waters finally subside in a few weeksrsquo time

One company Stars Microelectronics clearly illustrates the nature of the prob-lem as it threatens to derail many high-end touch-screen handset shipments

Stars is a specialist in capacitative screens and surfaces supplying finished touch screen assemblies to the leading handset makers in Taiwan and Korea and even white capacitative clickwheels used in a certain companyrsquos music player Many high-end touchpads for notebooks are also assembled there and more re-cently have also expanded into tough-ened glass capacitative screens

The company does not make the ca-pacitative films nor the circuitry nor the glass But it takes the glass from Europe the capacitative layer from Japan and the chips from everywhere in the world and assembles them into a sub-component that is in turn assembled into a phone somewhere else The added value in the chain is speed flexibility and the ability to run smaller batches than would other-wise be the case

Then there are countless Japanese chip makers that have seen their factories and cleanrooms flooded to the ceil-

Measuring the damage

ing Many have broken down crying in public partly out of despair partly out of anger at conflicting messages from the authorities One minute the Prime Minister was reassuring investors that the industrial estates would be protected the next people were running for their lives as a wall of water bore down on them

Come back in a monthThe outlook is not good Some of the

worst hit universities have postponed the beginning of term until the end of No-vember and even that may be optimistic given the scale of repairs needed

On the other hand the lack of information squabbling politicians and general mistrust of media has led to a boom in social network usage and cel-lular traffic as people shun government propaganda and instead turn to rely on new media and first-hand accounts from Facebook and Twitter

Frost amp Sullivan has said that Face-book growth originally forecast at 132 year on year will increase to 150 be-cause of the floods making Thailand the third fastest growing Facebook country after India Currently 17 of its popula-tion of 65 million is on Facebook

Leading telco AIS has seen traffic jump by 70 Traditional copper infra-

structure has not fared well under the on-slaught of water but the cellular networks have proven quite resilient AIS has lost only 67 of its 13000 base stations as of the last week of October If anything the redundant networks among the three ma-jor operators borne out of mistrust and inability to share infrastructure rather than by design has managed to keep most of the flood victims connected

Once the flood waters recede the question is what will be rebuilt and how will the global tech giants reassess risk planning in this day and age of global warming and extreme weather patterns

And what of planning the next-generation networks Thailand has like many other countries been moving toward a national broadband network for backhaul run by the incumbent state enterprise telcos Cynics say that is be-cause successive governments are quoting national security concerns as an excuse to create a monopoly on backhaul and milk the industry now that the visible retail sector will soon need to be liberalized But would this crisis change the minds of her leaders to a more distributed if more expensive series of redundant networks Or will the next natural disaster leave everyone cut off in the dark TA

ndash Don Sambandaraksa

wwwtelecomasianet Telecom Asia OctNov 2011 9

asian telecoms this month

BeijingHuawei is blocked from bidding for another US tender ndash this time for a public safety network ndash due to alleged national security concerns

The US ambassador to the WTO meanwhile calls on China to explain its criteria for blocking access to some for-eign websites raising concerns about censorshiprsquos impact on international competition

China Telecom and France Telecom strike a VPN and Wi-Fi sharing deal while China Unicom and Telefonica team up for M2M

ZTE moves to sell its controlling stake in Congo-Chine Telecom to Orange to divest the distraction from its core infrastructure business and avoid competing with its own customers

BangkokSevere flooding in Thailand disrupts fixed broadband networks and threatens to do the same to the component supply chain but mobile networks stand up remark-ably well

AIS puts the final touches on plans to offer roaming services to its customers through state-owned TOTrsquos 3G network

Hong kongPCCW Solutions wins a $465m deal with the Social Welfare Department to re-place the aging Computerized Social Security System

DelHiThe telecom ministry unveils its proposed new telecom policy including a plan to scrap inter-circle domestic roaming charges

The ministry blocks Qualcommrsquos petition for an ISP license to ac-company the BWA spectrum it paid $1b for last year but later re-neges after Qualcomm challenges the decision

The dispute between Norwayrsquos Tel-enor and JV partner Unitech over the management of GSM operator Uninor escalates

ZTE confirms it has won a deal for part of a TD-LTE rollout by Bharti Airtel but the operator is rumored to be planning to divide the remaining deals across multi-ple vendors

DHakaTelenor disputes a $400m tax bill from the government arising from a dispute covering subsidiary Grameenphonersquos revenue share on the sale of SIM cards

10 OctNov 2011 Telecom Asia wwwtelecomasianet

movements

Seoul KT is revealed to be in the final stages of talks to acquire a 20 stake in South Africarsquos Telkom for around $582m

z The iPhone 4S initially disappoints pundits with its similarity to the prior model but goes on to shatter Applersquos own launch-weekend sales records

z The 3GPP industry body 3G Americas claims that the next evolution of HSPA could push the peak theoretical transfer rate up to 336 Mbps

z Apple succeeds in stymieing Samsungrsquos plans to launch the Galaxy Tab 101 in Australia as Samsung is said to pip Apple as the top-selling smartphone vendor in the previous quarter

z Nokia swings to a pre-tax loss of over $200m as an increase in low-end phone sales fail to make up for a continued steep decline in smartphone sales

z Ericsson reports marginally higher profit for the third quarter and higher sales but its cash flow plummets due to its underperforming JVs

z Sony buys out Ericssonrsquos half of Sony-Ericsson for $15b

z RIM is hit with a three-day messaging service outage that at various times affects parts of the US Europe Africa India and the Middle East

z Chipmakers Sequans and Fujitsu Semiconductor forge an alli-ance to develop LTE baseband chips with multimode 2G3GLTE RF transceivers

z The GSMA estimates that the APAC mobile market will be worth $447b by 2020 accounting for the lionrsquos share of the worldrsquos $12tr market

z In another long-term prediction Gartner suggests that tablets could replace smartphones as the go-to device for consumers to have in their pockets in five to ten years

z Fitch Ratings cuts its outlook on two Italian operators ndash Wind and Telecom Italia ndash as the countryrsquos debt woes seep through to local busi-nesses

z The Mobile Entertainment Forum claims that more consumers ac-cess mobile internet services on a daily basis than browse on fixed-line connections

z Yahoo takes aim at the feature-phone market in emerging Asian nations with partnerships to embed its internet services into mobile chipsets bound for the devices

z Virgin Media commences a trial of 15-GHz broadband using new cable access technology from Cisco suggesting the war between cable-cos and telcos for subscribers is heating up

z Texas Instruments provides a lower than anticipated forecast for Q4 sales in an indication that the chip industry is still facing financial problems

z Google indicates it may complement its 1-Gbps fiber network pilot in parts of the US with a similar trial in a European country

z IBM picks sales head Virginia Rometty to become the companyrsquos first female CEO in its 100-year history

SyDneyTelstra shareholders reluctantly accept an $11b deal with the govern-ment to phase out the operatorrsquos fixed-line wholesale business and migrate its fixed-line customers to the NBN

Commonwealth Bank plans to introduce an NFC payment service for Android and iOS devices integrating an NFC chip into special cases for phones that lack an internal one

SingaporeM1 and Verizon Business complete a two-year joint fiber rollout project in northern and western Singapore

kuala lumpurP1 becomes Malaysiarsquos third operator ndash after Celcom and Maxis ndash to sign a deal to offer services on Telekom Malaysiarsquos open-access HSBB network

mumBaiStruggling state-owned BSNL asks to be let out of its mandate to

deploy Wimax ndash except in rural areas ndash in a market due to be dominated by TD-LTE

TokyoKDDI reports a 48 gain in Q3 profit but this is not enough for the operator to revise its forecast of a 2 decline for the full year

NTT Com is said to be planning to invest close to $16b to expand its cloud computing capabilities outside of Japan

manila Conglomerate San Miguel arranges to pay around $35m to up its stake in Eastern Telecom to a controlling 78 from an effective 40

PLDT buys a controlling stake in mobile rival Digitel in a deal worth around $16b after finally convincing regulators to accept the deal by offering to give up 10-MHz of spectrum

wwwtelecomasianet Telecom Asia OctNov 2011 11

COVer STOrY

Taking apps to the next levelDemand for mobile apps shows no sign of letting up over the next five years but the apps landscape itself is a work in progress constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business from tablets and mobile OS developments to web apps and augmented reality

John C Tanner

12 OctNov 2011 Telecom Asia wwwtelecomasianet

More coverage of

Mobile Apps

A huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another application

The fragmented mobile OS landscape that apps develop-ers must navigate is in flux as existing OS platforms are be-ing combined and even aban-

doned and new ones keep popping upThis year alone wersquove seen HP aban-

don its WebOS platform while both Nokia and Intel have abandoned the MeeGo OS project Intel is now backing Tizen a new open-source OS from the Linux Foundation and the LiMo Foun-dation that recycles some components of MeeGo and is based on the Samsung Linux Platform that LiMo uses for its open-source mobile OS

Meanwhile speculation about the fate of WebOS ndash and the possibility of companies like Facebook and Amazon taking it over ndash highlights the desire by content-driven companies to gain more control of the mobile OS platform rath-er than ride on top of someone elsersquos

ABI senior analyst Aapo Markkanen says Facebook needs its own OS because of the growing ubiquity of mobile so-cial networking ldquoA huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another applicationrdquo

Other web players are already doing just that In July Chinarsquos Alibaba Cloud Computing unveiled its own cloud-based mobile OS ndash dubbed Aliyun OS ndash as well as the first device that will run on it the K-Touch Cloud-Smart Phone W700 Aliyun supports Android apps web apps and cloud services such as email search weather updates and mappingnavigation tools though the ultimate goal for Alibaba is to develop a smartphone strategy for its e-commerce business

Also in July Mozilla revealed plans to develop an OS called Boot to Gecko which will be based on the Gecko en-

and both native and HTML5 developer environments as well as BlackBerry Runtime for Android Apps

The bad news for developers says Ovum chief telecom analyst Jan Daw-son is ldquothe adoption of QNX across the entire line in the coming months and years also means that RIM is leaving its traditional BlackBerry developers high and dryrdquo Dawson says existing develop-ers will have no choice but to start from scratch with an entirely new develop-ment environment

gine that drives its Fire-fox browser Develop-ment projects for Boot To Gecko include new web APIs linking OS and device capabilities like text cameras Blue-tooth and NFC chips to content

The good news is that there is some uni-fication of sorts in pro-gress most notably Googlersquos Android 40 ndash aka Ice Cream Sand-wich ndash which brings the smartphone and tablet versions of Android into a single version

ldquoBy creating a sin-gle version of Android Google is making it easier for develop-ers to modify their apps and take ad-vantage of the larger screens of tablets which should stimulate the creation of apps designed for Android tabletsrdquo Nick Dillon devices and platforms ana-lyst for Ovum said in a research note

RIM has done something similar with the recent launch of its new flag-ship BBX platform which merges the BlackBerry 7 smartphone OS with the QNX OS for its PlayBook tablets BBX will support BlackBerry cloud services

Mobile OS landscape The goalposts keep changing for developers Also even Alibaba has one now

wwwtelecomasianet Telecom Asia OctNov 2011 13

COVer STOrY

Native apps are the de facto format for the current apps boom but thatrsquos ex-pected to change with the development of web apps

ndash apps hosted in the cloud that run on the browser and thanks to features within the HTML5 standard can func-tion like native apps even when the de-vice is offline Indeed web apps are at the heart of Googlersquos long-term mobile ambitions ndash so much so that its com-mission fee for apps developers is a paltry 5 (compared to Applersquos 30)

The appeal of web apps is dead simple theyrsquore OS-agnostic which means apps developers can reach a much broader base of users with-out having to write separate apps for

iOS Android BlackBerry WP7 Bada LiMo etc How broad Letrsquos put it this way according to ABI Research over 21 billion mobile devices will have HTML5 browsers by 2016 compared to 109 million last year

Even though the World Wide Web Consortium (W3C) says the HTML5 standard wonrsquot be finished until the end of the decade 25 HTML5 features currently in development will be in wide use within the next three to five years says ABI senior analyst Mark Beccue ldquoWe expect HTML5 features in categories such as graphics multi-media user interactions and data stor-age to be widely adopted sooner rather than laterrdquo

But that doesnrsquot mean web apps

will be competing with those plat-forms or with native apps in general Beccue adds ldquoHTML5 adoption is go-ing to accelerate because it will be a key differentiator in the smartphone OS war I believe that Apple will be the key driver of HTML5 and consequently a primary benefactor as wellrdquo

Ovumrsquos Nick Dillon adds that the rise of web apps wonrsquot spell the end of either native apps nor the app storefront model ldquoApp stores offer a familiar environment for consumer to discover download and purchase apps and we anticipate that the major-ity of app stores will list a mix of both HTML5 and native applications in their catalogues in the futurerdquo

Web apps

Apps for feature phones

HTML5-enabled cloud apps wonrsquot kill native apps or kill app stores

23 billion feature phones in 2016 = major apps opportunity

The apps phenomenon has been limited to smartphones and more recently tablets for fairly obvious reasons But for all the talk about increasing

smartphone adoption as lower-priced models hit the shelves feature phones will remain the largest handset segment for some time Ovum forecasts the number of feature phones worldwide to reach 23 billion in five years which will account for 63 of the market

Thatrsquos a huge untapped market for apps developers limited to smartphone OSs and demand is such that Ovum predicts the feature-phone apps rev-enues will top $1 billion by 2016

Part of that growth will come from larger handset manufacturers operators and third parties offering improved dis-tribution channels for feature phones which have been lacking until recently

says Nick Dillon of Ovum Also de-velopers will leverage existing software options like JavaME Nokia web widg-ets and Opera Mini widgets to develop simple web apps before moving on to HTML5 as more feature phones ship with compatible browsers (see above)

Meanwhile therersquos the ongoing work of the WAC (Wholesale Applica-tions Community) which opened shop in February with eight operators and 12000 apps WAC is creating APIs aimed at runtime environments and browsers with the goal of building an OS-agnos-tic wholesale storefront ecosystem and billing platform that can bring feature phones into the apps ecosystem

WAC has been quiet since its Febru-ary launch But last month WAC CEO Peters Suh said in a blog post that ldquoa number of WAC member operators in Asia are on track to launch services in

Q4 2011 across a range of devices and a number of application storefrontsrdquo

Suh also said that WAC is devel-oping its suite of operator supported network APIs (starting with in-app payments) ldquowhich are currently be-ing implemented by a select number of developers with the aim of opening this up to a wider audience over the coming monthsrdquo Suh said WACrsquos network API service offering would be available in early 2012

WACrsquos network API for in-app pay-ments is well-timed According to app marketplace analytics firm Distimo in-app purchases account for a whopping 72 of iPhone app revenues (compared to just 28 a year ago) Close to half of those in-app payments were via free apps More remarkably less than 5 of all iOS apps even offer in-app pur-chases

14 OctNov 2011 Telecom Asia wwwtelecomasianet

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 10: Telecom Asia 201111

The floods that have ravaged much of central Thailand have left the countryrsquos industrial estates in ruins Heavy indus-

try especially the automotive sector has taken a huge hit with optimistic estimates saying it will be at least three months before manufacturing can resume

The hard drive industry is devastated with Western Digital the worldrsquos largest drive maker seeing its Thailand opera-tions now under a sea of mud and water Toshiba Canon Sony Nikon and a whole raft of other names also have been af-fected Even Applersquos Tim Cook has said that the supply chain disruptions will hit Apple hard

But the real damage will not be known until the often secretive supply chains are exposed as the flood waters finally subside in a few weeksrsquo time

One company Stars Microelectronics clearly illustrates the nature of the prob-lem as it threatens to derail many high-end touch-screen handset shipments

Stars is a specialist in capacitative screens and surfaces supplying finished touch screen assemblies to the leading handset makers in Taiwan and Korea and even white capacitative clickwheels used in a certain companyrsquos music player Many high-end touchpads for notebooks are also assembled there and more re-cently have also expanded into tough-ened glass capacitative screens

The company does not make the ca-pacitative films nor the circuitry nor the glass But it takes the glass from Europe the capacitative layer from Japan and the chips from everywhere in the world and assembles them into a sub-component that is in turn assembled into a phone somewhere else The added value in the chain is speed flexibility and the ability to run smaller batches than would other-wise be the case

Then there are countless Japanese chip makers that have seen their factories and cleanrooms flooded to the ceil-

Measuring the damage

ing Many have broken down crying in public partly out of despair partly out of anger at conflicting messages from the authorities One minute the Prime Minister was reassuring investors that the industrial estates would be protected the next people were running for their lives as a wall of water bore down on them

Come back in a monthThe outlook is not good Some of the

worst hit universities have postponed the beginning of term until the end of No-vember and even that may be optimistic given the scale of repairs needed

On the other hand the lack of information squabbling politicians and general mistrust of media has led to a boom in social network usage and cel-lular traffic as people shun government propaganda and instead turn to rely on new media and first-hand accounts from Facebook and Twitter

Frost amp Sullivan has said that Face-book growth originally forecast at 132 year on year will increase to 150 be-cause of the floods making Thailand the third fastest growing Facebook country after India Currently 17 of its popula-tion of 65 million is on Facebook

Leading telco AIS has seen traffic jump by 70 Traditional copper infra-

structure has not fared well under the on-slaught of water but the cellular networks have proven quite resilient AIS has lost only 67 of its 13000 base stations as of the last week of October If anything the redundant networks among the three ma-jor operators borne out of mistrust and inability to share infrastructure rather than by design has managed to keep most of the flood victims connected

Once the flood waters recede the question is what will be rebuilt and how will the global tech giants reassess risk planning in this day and age of global warming and extreme weather patterns

And what of planning the next-generation networks Thailand has like many other countries been moving toward a national broadband network for backhaul run by the incumbent state enterprise telcos Cynics say that is be-cause successive governments are quoting national security concerns as an excuse to create a monopoly on backhaul and milk the industry now that the visible retail sector will soon need to be liberalized But would this crisis change the minds of her leaders to a more distributed if more expensive series of redundant networks Or will the next natural disaster leave everyone cut off in the dark TA

ndash Don Sambandaraksa

wwwtelecomasianet Telecom Asia OctNov 2011 9

asian telecoms this month

BeijingHuawei is blocked from bidding for another US tender ndash this time for a public safety network ndash due to alleged national security concerns

The US ambassador to the WTO meanwhile calls on China to explain its criteria for blocking access to some for-eign websites raising concerns about censorshiprsquos impact on international competition

China Telecom and France Telecom strike a VPN and Wi-Fi sharing deal while China Unicom and Telefonica team up for M2M

ZTE moves to sell its controlling stake in Congo-Chine Telecom to Orange to divest the distraction from its core infrastructure business and avoid competing with its own customers

BangkokSevere flooding in Thailand disrupts fixed broadband networks and threatens to do the same to the component supply chain but mobile networks stand up remark-ably well

AIS puts the final touches on plans to offer roaming services to its customers through state-owned TOTrsquos 3G network

Hong kongPCCW Solutions wins a $465m deal with the Social Welfare Department to re-place the aging Computerized Social Security System

DelHiThe telecom ministry unveils its proposed new telecom policy including a plan to scrap inter-circle domestic roaming charges

The ministry blocks Qualcommrsquos petition for an ISP license to ac-company the BWA spectrum it paid $1b for last year but later re-neges after Qualcomm challenges the decision

The dispute between Norwayrsquos Tel-enor and JV partner Unitech over the management of GSM operator Uninor escalates

ZTE confirms it has won a deal for part of a TD-LTE rollout by Bharti Airtel but the operator is rumored to be planning to divide the remaining deals across multi-ple vendors

DHakaTelenor disputes a $400m tax bill from the government arising from a dispute covering subsidiary Grameenphonersquos revenue share on the sale of SIM cards

10 OctNov 2011 Telecom Asia wwwtelecomasianet

movements

Seoul KT is revealed to be in the final stages of talks to acquire a 20 stake in South Africarsquos Telkom for around $582m

z The iPhone 4S initially disappoints pundits with its similarity to the prior model but goes on to shatter Applersquos own launch-weekend sales records

z The 3GPP industry body 3G Americas claims that the next evolution of HSPA could push the peak theoretical transfer rate up to 336 Mbps

z Apple succeeds in stymieing Samsungrsquos plans to launch the Galaxy Tab 101 in Australia as Samsung is said to pip Apple as the top-selling smartphone vendor in the previous quarter

z Nokia swings to a pre-tax loss of over $200m as an increase in low-end phone sales fail to make up for a continued steep decline in smartphone sales

z Ericsson reports marginally higher profit for the third quarter and higher sales but its cash flow plummets due to its underperforming JVs

z Sony buys out Ericssonrsquos half of Sony-Ericsson for $15b

z RIM is hit with a three-day messaging service outage that at various times affects parts of the US Europe Africa India and the Middle East

z Chipmakers Sequans and Fujitsu Semiconductor forge an alli-ance to develop LTE baseband chips with multimode 2G3GLTE RF transceivers

z The GSMA estimates that the APAC mobile market will be worth $447b by 2020 accounting for the lionrsquos share of the worldrsquos $12tr market

z In another long-term prediction Gartner suggests that tablets could replace smartphones as the go-to device for consumers to have in their pockets in five to ten years

z Fitch Ratings cuts its outlook on two Italian operators ndash Wind and Telecom Italia ndash as the countryrsquos debt woes seep through to local busi-nesses

z The Mobile Entertainment Forum claims that more consumers ac-cess mobile internet services on a daily basis than browse on fixed-line connections

z Yahoo takes aim at the feature-phone market in emerging Asian nations with partnerships to embed its internet services into mobile chipsets bound for the devices

z Virgin Media commences a trial of 15-GHz broadband using new cable access technology from Cisco suggesting the war between cable-cos and telcos for subscribers is heating up

z Texas Instruments provides a lower than anticipated forecast for Q4 sales in an indication that the chip industry is still facing financial problems

z Google indicates it may complement its 1-Gbps fiber network pilot in parts of the US with a similar trial in a European country

z IBM picks sales head Virginia Rometty to become the companyrsquos first female CEO in its 100-year history

SyDneyTelstra shareholders reluctantly accept an $11b deal with the govern-ment to phase out the operatorrsquos fixed-line wholesale business and migrate its fixed-line customers to the NBN

Commonwealth Bank plans to introduce an NFC payment service for Android and iOS devices integrating an NFC chip into special cases for phones that lack an internal one

SingaporeM1 and Verizon Business complete a two-year joint fiber rollout project in northern and western Singapore

kuala lumpurP1 becomes Malaysiarsquos third operator ndash after Celcom and Maxis ndash to sign a deal to offer services on Telekom Malaysiarsquos open-access HSBB network

mumBaiStruggling state-owned BSNL asks to be let out of its mandate to

deploy Wimax ndash except in rural areas ndash in a market due to be dominated by TD-LTE

TokyoKDDI reports a 48 gain in Q3 profit but this is not enough for the operator to revise its forecast of a 2 decline for the full year

NTT Com is said to be planning to invest close to $16b to expand its cloud computing capabilities outside of Japan

manila Conglomerate San Miguel arranges to pay around $35m to up its stake in Eastern Telecom to a controlling 78 from an effective 40

PLDT buys a controlling stake in mobile rival Digitel in a deal worth around $16b after finally convincing regulators to accept the deal by offering to give up 10-MHz of spectrum

wwwtelecomasianet Telecom Asia OctNov 2011 11

COVer STOrY

Taking apps to the next levelDemand for mobile apps shows no sign of letting up over the next five years but the apps landscape itself is a work in progress constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business from tablets and mobile OS developments to web apps and augmented reality

John C Tanner

12 OctNov 2011 Telecom Asia wwwtelecomasianet

More coverage of

Mobile Apps

A huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another application

The fragmented mobile OS landscape that apps develop-ers must navigate is in flux as existing OS platforms are be-ing combined and even aban-

doned and new ones keep popping upThis year alone wersquove seen HP aban-

don its WebOS platform while both Nokia and Intel have abandoned the MeeGo OS project Intel is now backing Tizen a new open-source OS from the Linux Foundation and the LiMo Foun-dation that recycles some components of MeeGo and is based on the Samsung Linux Platform that LiMo uses for its open-source mobile OS

Meanwhile speculation about the fate of WebOS ndash and the possibility of companies like Facebook and Amazon taking it over ndash highlights the desire by content-driven companies to gain more control of the mobile OS platform rath-er than ride on top of someone elsersquos

ABI senior analyst Aapo Markkanen says Facebook needs its own OS because of the growing ubiquity of mobile so-cial networking ldquoA huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another applicationrdquo

Other web players are already doing just that In July Chinarsquos Alibaba Cloud Computing unveiled its own cloud-based mobile OS ndash dubbed Aliyun OS ndash as well as the first device that will run on it the K-Touch Cloud-Smart Phone W700 Aliyun supports Android apps web apps and cloud services such as email search weather updates and mappingnavigation tools though the ultimate goal for Alibaba is to develop a smartphone strategy for its e-commerce business

Also in July Mozilla revealed plans to develop an OS called Boot to Gecko which will be based on the Gecko en-

and both native and HTML5 developer environments as well as BlackBerry Runtime for Android Apps

The bad news for developers says Ovum chief telecom analyst Jan Daw-son is ldquothe adoption of QNX across the entire line in the coming months and years also means that RIM is leaving its traditional BlackBerry developers high and dryrdquo Dawson says existing develop-ers will have no choice but to start from scratch with an entirely new develop-ment environment

gine that drives its Fire-fox browser Develop-ment projects for Boot To Gecko include new web APIs linking OS and device capabilities like text cameras Blue-tooth and NFC chips to content

The good news is that there is some uni-fication of sorts in pro-gress most notably Googlersquos Android 40 ndash aka Ice Cream Sand-wich ndash which brings the smartphone and tablet versions of Android into a single version

ldquoBy creating a sin-gle version of Android Google is making it easier for develop-ers to modify their apps and take ad-vantage of the larger screens of tablets which should stimulate the creation of apps designed for Android tabletsrdquo Nick Dillon devices and platforms ana-lyst for Ovum said in a research note

RIM has done something similar with the recent launch of its new flag-ship BBX platform which merges the BlackBerry 7 smartphone OS with the QNX OS for its PlayBook tablets BBX will support BlackBerry cloud services

Mobile OS landscape The goalposts keep changing for developers Also even Alibaba has one now

wwwtelecomasianet Telecom Asia OctNov 2011 13

COVer STOrY

Native apps are the de facto format for the current apps boom but thatrsquos ex-pected to change with the development of web apps

ndash apps hosted in the cloud that run on the browser and thanks to features within the HTML5 standard can func-tion like native apps even when the de-vice is offline Indeed web apps are at the heart of Googlersquos long-term mobile ambitions ndash so much so that its com-mission fee for apps developers is a paltry 5 (compared to Applersquos 30)

The appeal of web apps is dead simple theyrsquore OS-agnostic which means apps developers can reach a much broader base of users with-out having to write separate apps for

iOS Android BlackBerry WP7 Bada LiMo etc How broad Letrsquos put it this way according to ABI Research over 21 billion mobile devices will have HTML5 browsers by 2016 compared to 109 million last year

Even though the World Wide Web Consortium (W3C) says the HTML5 standard wonrsquot be finished until the end of the decade 25 HTML5 features currently in development will be in wide use within the next three to five years says ABI senior analyst Mark Beccue ldquoWe expect HTML5 features in categories such as graphics multi-media user interactions and data stor-age to be widely adopted sooner rather than laterrdquo

But that doesnrsquot mean web apps

will be competing with those plat-forms or with native apps in general Beccue adds ldquoHTML5 adoption is go-ing to accelerate because it will be a key differentiator in the smartphone OS war I believe that Apple will be the key driver of HTML5 and consequently a primary benefactor as wellrdquo

Ovumrsquos Nick Dillon adds that the rise of web apps wonrsquot spell the end of either native apps nor the app storefront model ldquoApp stores offer a familiar environment for consumer to discover download and purchase apps and we anticipate that the major-ity of app stores will list a mix of both HTML5 and native applications in their catalogues in the futurerdquo

Web apps

Apps for feature phones

HTML5-enabled cloud apps wonrsquot kill native apps or kill app stores

23 billion feature phones in 2016 = major apps opportunity

The apps phenomenon has been limited to smartphones and more recently tablets for fairly obvious reasons But for all the talk about increasing

smartphone adoption as lower-priced models hit the shelves feature phones will remain the largest handset segment for some time Ovum forecasts the number of feature phones worldwide to reach 23 billion in five years which will account for 63 of the market

Thatrsquos a huge untapped market for apps developers limited to smartphone OSs and demand is such that Ovum predicts the feature-phone apps rev-enues will top $1 billion by 2016

Part of that growth will come from larger handset manufacturers operators and third parties offering improved dis-tribution channels for feature phones which have been lacking until recently

says Nick Dillon of Ovum Also de-velopers will leverage existing software options like JavaME Nokia web widg-ets and Opera Mini widgets to develop simple web apps before moving on to HTML5 as more feature phones ship with compatible browsers (see above)

Meanwhile therersquos the ongoing work of the WAC (Wholesale Applica-tions Community) which opened shop in February with eight operators and 12000 apps WAC is creating APIs aimed at runtime environments and browsers with the goal of building an OS-agnos-tic wholesale storefront ecosystem and billing platform that can bring feature phones into the apps ecosystem

WAC has been quiet since its Febru-ary launch But last month WAC CEO Peters Suh said in a blog post that ldquoa number of WAC member operators in Asia are on track to launch services in

Q4 2011 across a range of devices and a number of application storefrontsrdquo

Suh also said that WAC is devel-oping its suite of operator supported network APIs (starting with in-app payments) ldquowhich are currently be-ing implemented by a select number of developers with the aim of opening this up to a wider audience over the coming monthsrdquo Suh said WACrsquos network API service offering would be available in early 2012

WACrsquos network API for in-app pay-ments is well-timed According to app marketplace analytics firm Distimo in-app purchases account for a whopping 72 of iPhone app revenues (compared to just 28 a year ago) Close to half of those in-app payments were via free apps More remarkably less than 5 of all iOS apps even offer in-app pur-chases

14 OctNov 2011 Telecom Asia wwwtelecomasianet

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 11: Telecom Asia 201111

asian telecoms this month

BeijingHuawei is blocked from bidding for another US tender ndash this time for a public safety network ndash due to alleged national security concerns

The US ambassador to the WTO meanwhile calls on China to explain its criteria for blocking access to some for-eign websites raising concerns about censorshiprsquos impact on international competition

China Telecom and France Telecom strike a VPN and Wi-Fi sharing deal while China Unicom and Telefonica team up for M2M

ZTE moves to sell its controlling stake in Congo-Chine Telecom to Orange to divest the distraction from its core infrastructure business and avoid competing with its own customers

BangkokSevere flooding in Thailand disrupts fixed broadband networks and threatens to do the same to the component supply chain but mobile networks stand up remark-ably well

AIS puts the final touches on plans to offer roaming services to its customers through state-owned TOTrsquos 3G network

Hong kongPCCW Solutions wins a $465m deal with the Social Welfare Department to re-place the aging Computerized Social Security System

DelHiThe telecom ministry unveils its proposed new telecom policy including a plan to scrap inter-circle domestic roaming charges

The ministry blocks Qualcommrsquos petition for an ISP license to ac-company the BWA spectrum it paid $1b for last year but later re-neges after Qualcomm challenges the decision

The dispute between Norwayrsquos Tel-enor and JV partner Unitech over the management of GSM operator Uninor escalates

ZTE confirms it has won a deal for part of a TD-LTE rollout by Bharti Airtel but the operator is rumored to be planning to divide the remaining deals across multi-ple vendors

DHakaTelenor disputes a $400m tax bill from the government arising from a dispute covering subsidiary Grameenphonersquos revenue share on the sale of SIM cards

10 OctNov 2011 Telecom Asia wwwtelecomasianet

movements

Seoul KT is revealed to be in the final stages of talks to acquire a 20 stake in South Africarsquos Telkom for around $582m

z The iPhone 4S initially disappoints pundits with its similarity to the prior model but goes on to shatter Applersquos own launch-weekend sales records

z The 3GPP industry body 3G Americas claims that the next evolution of HSPA could push the peak theoretical transfer rate up to 336 Mbps

z Apple succeeds in stymieing Samsungrsquos plans to launch the Galaxy Tab 101 in Australia as Samsung is said to pip Apple as the top-selling smartphone vendor in the previous quarter

z Nokia swings to a pre-tax loss of over $200m as an increase in low-end phone sales fail to make up for a continued steep decline in smartphone sales

z Ericsson reports marginally higher profit for the third quarter and higher sales but its cash flow plummets due to its underperforming JVs

z Sony buys out Ericssonrsquos half of Sony-Ericsson for $15b

z RIM is hit with a three-day messaging service outage that at various times affects parts of the US Europe Africa India and the Middle East

z Chipmakers Sequans and Fujitsu Semiconductor forge an alli-ance to develop LTE baseband chips with multimode 2G3GLTE RF transceivers

z The GSMA estimates that the APAC mobile market will be worth $447b by 2020 accounting for the lionrsquos share of the worldrsquos $12tr market

z In another long-term prediction Gartner suggests that tablets could replace smartphones as the go-to device for consumers to have in their pockets in five to ten years

z Fitch Ratings cuts its outlook on two Italian operators ndash Wind and Telecom Italia ndash as the countryrsquos debt woes seep through to local busi-nesses

z The Mobile Entertainment Forum claims that more consumers ac-cess mobile internet services on a daily basis than browse on fixed-line connections

z Yahoo takes aim at the feature-phone market in emerging Asian nations with partnerships to embed its internet services into mobile chipsets bound for the devices

z Virgin Media commences a trial of 15-GHz broadband using new cable access technology from Cisco suggesting the war between cable-cos and telcos for subscribers is heating up

z Texas Instruments provides a lower than anticipated forecast for Q4 sales in an indication that the chip industry is still facing financial problems

z Google indicates it may complement its 1-Gbps fiber network pilot in parts of the US with a similar trial in a European country

z IBM picks sales head Virginia Rometty to become the companyrsquos first female CEO in its 100-year history

SyDneyTelstra shareholders reluctantly accept an $11b deal with the govern-ment to phase out the operatorrsquos fixed-line wholesale business and migrate its fixed-line customers to the NBN

Commonwealth Bank plans to introduce an NFC payment service for Android and iOS devices integrating an NFC chip into special cases for phones that lack an internal one

SingaporeM1 and Verizon Business complete a two-year joint fiber rollout project in northern and western Singapore

kuala lumpurP1 becomes Malaysiarsquos third operator ndash after Celcom and Maxis ndash to sign a deal to offer services on Telekom Malaysiarsquos open-access HSBB network

mumBaiStruggling state-owned BSNL asks to be let out of its mandate to

deploy Wimax ndash except in rural areas ndash in a market due to be dominated by TD-LTE

TokyoKDDI reports a 48 gain in Q3 profit but this is not enough for the operator to revise its forecast of a 2 decline for the full year

NTT Com is said to be planning to invest close to $16b to expand its cloud computing capabilities outside of Japan

manila Conglomerate San Miguel arranges to pay around $35m to up its stake in Eastern Telecom to a controlling 78 from an effective 40

PLDT buys a controlling stake in mobile rival Digitel in a deal worth around $16b after finally convincing regulators to accept the deal by offering to give up 10-MHz of spectrum

wwwtelecomasianet Telecom Asia OctNov 2011 11

COVer STOrY

Taking apps to the next levelDemand for mobile apps shows no sign of letting up over the next five years but the apps landscape itself is a work in progress constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business from tablets and mobile OS developments to web apps and augmented reality

John C Tanner

12 OctNov 2011 Telecom Asia wwwtelecomasianet

More coverage of

Mobile Apps

A huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another application

The fragmented mobile OS landscape that apps develop-ers must navigate is in flux as existing OS platforms are be-ing combined and even aban-

doned and new ones keep popping upThis year alone wersquove seen HP aban-

don its WebOS platform while both Nokia and Intel have abandoned the MeeGo OS project Intel is now backing Tizen a new open-source OS from the Linux Foundation and the LiMo Foun-dation that recycles some components of MeeGo and is based on the Samsung Linux Platform that LiMo uses for its open-source mobile OS

Meanwhile speculation about the fate of WebOS ndash and the possibility of companies like Facebook and Amazon taking it over ndash highlights the desire by content-driven companies to gain more control of the mobile OS platform rath-er than ride on top of someone elsersquos

ABI senior analyst Aapo Markkanen says Facebook needs its own OS because of the growing ubiquity of mobile so-cial networking ldquoA huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another applicationrdquo

Other web players are already doing just that In July Chinarsquos Alibaba Cloud Computing unveiled its own cloud-based mobile OS ndash dubbed Aliyun OS ndash as well as the first device that will run on it the K-Touch Cloud-Smart Phone W700 Aliyun supports Android apps web apps and cloud services such as email search weather updates and mappingnavigation tools though the ultimate goal for Alibaba is to develop a smartphone strategy for its e-commerce business

Also in July Mozilla revealed plans to develop an OS called Boot to Gecko which will be based on the Gecko en-

and both native and HTML5 developer environments as well as BlackBerry Runtime for Android Apps

The bad news for developers says Ovum chief telecom analyst Jan Daw-son is ldquothe adoption of QNX across the entire line in the coming months and years also means that RIM is leaving its traditional BlackBerry developers high and dryrdquo Dawson says existing develop-ers will have no choice but to start from scratch with an entirely new develop-ment environment

gine that drives its Fire-fox browser Develop-ment projects for Boot To Gecko include new web APIs linking OS and device capabilities like text cameras Blue-tooth and NFC chips to content

The good news is that there is some uni-fication of sorts in pro-gress most notably Googlersquos Android 40 ndash aka Ice Cream Sand-wich ndash which brings the smartphone and tablet versions of Android into a single version

ldquoBy creating a sin-gle version of Android Google is making it easier for develop-ers to modify their apps and take ad-vantage of the larger screens of tablets which should stimulate the creation of apps designed for Android tabletsrdquo Nick Dillon devices and platforms ana-lyst for Ovum said in a research note

RIM has done something similar with the recent launch of its new flag-ship BBX platform which merges the BlackBerry 7 smartphone OS with the QNX OS for its PlayBook tablets BBX will support BlackBerry cloud services

Mobile OS landscape The goalposts keep changing for developers Also even Alibaba has one now

wwwtelecomasianet Telecom Asia OctNov 2011 13

COVer STOrY

Native apps are the de facto format for the current apps boom but thatrsquos ex-pected to change with the development of web apps

ndash apps hosted in the cloud that run on the browser and thanks to features within the HTML5 standard can func-tion like native apps even when the de-vice is offline Indeed web apps are at the heart of Googlersquos long-term mobile ambitions ndash so much so that its com-mission fee for apps developers is a paltry 5 (compared to Applersquos 30)

The appeal of web apps is dead simple theyrsquore OS-agnostic which means apps developers can reach a much broader base of users with-out having to write separate apps for

iOS Android BlackBerry WP7 Bada LiMo etc How broad Letrsquos put it this way according to ABI Research over 21 billion mobile devices will have HTML5 browsers by 2016 compared to 109 million last year

Even though the World Wide Web Consortium (W3C) says the HTML5 standard wonrsquot be finished until the end of the decade 25 HTML5 features currently in development will be in wide use within the next three to five years says ABI senior analyst Mark Beccue ldquoWe expect HTML5 features in categories such as graphics multi-media user interactions and data stor-age to be widely adopted sooner rather than laterrdquo

But that doesnrsquot mean web apps

will be competing with those plat-forms or with native apps in general Beccue adds ldquoHTML5 adoption is go-ing to accelerate because it will be a key differentiator in the smartphone OS war I believe that Apple will be the key driver of HTML5 and consequently a primary benefactor as wellrdquo

Ovumrsquos Nick Dillon adds that the rise of web apps wonrsquot spell the end of either native apps nor the app storefront model ldquoApp stores offer a familiar environment for consumer to discover download and purchase apps and we anticipate that the major-ity of app stores will list a mix of both HTML5 and native applications in their catalogues in the futurerdquo

Web apps

Apps for feature phones

HTML5-enabled cloud apps wonrsquot kill native apps or kill app stores

23 billion feature phones in 2016 = major apps opportunity

The apps phenomenon has been limited to smartphones and more recently tablets for fairly obvious reasons But for all the talk about increasing

smartphone adoption as lower-priced models hit the shelves feature phones will remain the largest handset segment for some time Ovum forecasts the number of feature phones worldwide to reach 23 billion in five years which will account for 63 of the market

Thatrsquos a huge untapped market for apps developers limited to smartphone OSs and demand is such that Ovum predicts the feature-phone apps rev-enues will top $1 billion by 2016

Part of that growth will come from larger handset manufacturers operators and third parties offering improved dis-tribution channels for feature phones which have been lacking until recently

says Nick Dillon of Ovum Also de-velopers will leverage existing software options like JavaME Nokia web widg-ets and Opera Mini widgets to develop simple web apps before moving on to HTML5 as more feature phones ship with compatible browsers (see above)

Meanwhile therersquos the ongoing work of the WAC (Wholesale Applica-tions Community) which opened shop in February with eight operators and 12000 apps WAC is creating APIs aimed at runtime environments and browsers with the goal of building an OS-agnos-tic wholesale storefront ecosystem and billing platform that can bring feature phones into the apps ecosystem

WAC has been quiet since its Febru-ary launch But last month WAC CEO Peters Suh said in a blog post that ldquoa number of WAC member operators in Asia are on track to launch services in

Q4 2011 across a range of devices and a number of application storefrontsrdquo

Suh also said that WAC is devel-oping its suite of operator supported network APIs (starting with in-app payments) ldquowhich are currently be-ing implemented by a select number of developers with the aim of opening this up to a wider audience over the coming monthsrdquo Suh said WACrsquos network API service offering would be available in early 2012

WACrsquos network API for in-app pay-ments is well-timed According to app marketplace analytics firm Distimo in-app purchases account for a whopping 72 of iPhone app revenues (compared to just 28 a year ago) Close to half of those in-app payments were via free apps More remarkably less than 5 of all iOS apps even offer in-app pur-chases

14 OctNov 2011 Telecom Asia wwwtelecomasianet

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 12: Telecom Asia 201111

movements

Seoul KT is revealed to be in the final stages of talks to acquire a 20 stake in South Africarsquos Telkom for around $582m

z The iPhone 4S initially disappoints pundits with its similarity to the prior model but goes on to shatter Applersquos own launch-weekend sales records

z The 3GPP industry body 3G Americas claims that the next evolution of HSPA could push the peak theoretical transfer rate up to 336 Mbps

z Apple succeeds in stymieing Samsungrsquos plans to launch the Galaxy Tab 101 in Australia as Samsung is said to pip Apple as the top-selling smartphone vendor in the previous quarter

z Nokia swings to a pre-tax loss of over $200m as an increase in low-end phone sales fail to make up for a continued steep decline in smartphone sales

z Ericsson reports marginally higher profit for the third quarter and higher sales but its cash flow plummets due to its underperforming JVs

z Sony buys out Ericssonrsquos half of Sony-Ericsson for $15b

z RIM is hit with a three-day messaging service outage that at various times affects parts of the US Europe Africa India and the Middle East

z Chipmakers Sequans and Fujitsu Semiconductor forge an alli-ance to develop LTE baseband chips with multimode 2G3GLTE RF transceivers

z The GSMA estimates that the APAC mobile market will be worth $447b by 2020 accounting for the lionrsquos share of the worldrsquos $12tr market

z In another long-term prediction Gartner suggests that tablets could replace smartphones as the go-to device for consumers to have in their pockets in five to ten years

z Fitch Ratings cuts its outlook on two Italian operators ndash Wind and Telecom Italia ndash as the countryrsquos debt woes seep through to local busi-nesses

z The Mobile Entertainment Forum claims that more consumers ac-cess mobile internet services on a daily basis than browse on fixed-line connections

z Yahoo takes aim at the feature-phone market in emerging Asian nations with partnerships to embed its internet services into mobile chipsets bound for the devices

z Virgin Media commences a trial of 15-GHz broadband using new cable access technology from Cisco suggesting the war between cable-cos and telcos for subscribers is heating up

z Texas Instruments provides a lower than anticipated forecast for Q4 sales in an indication that the chip industry is still facing financial problems

z Google indicates it may complement its 1-Gbps fiber network pilot in parts of the US with a similar trial in a European country

z IBM picks sales head Virginia Rometty to become the companyrsquos first female CEO in its 100-year history

SyDneyTelstra shareholders reluctantly accept an $11b deal with the govern-ment to phase out the operatorrsquos fixed-line wholesale business and migrate its fixed-line customers to the NBN

Commonwealth Bank plans to introduce an NFC payment service for Android and iOS devices integrating an NFC chip into special cases for phones that lack an internal one

SingaporeM1 and Verizon Business complete a two-year joint fiber rollout project in northern and western Singapore

kuala lumpurP1 becomes Malaysiarsquos third operator ndash after Celcom and Maxis ndash to sign a deal to offer services on Telekom Malaysiarsquos open-access HSBB network

mumBaiStruggling state-owned BSNL asks to be let out of its mandate to

deploy Wimax ndash except in rural areas ndash in a market due to be dominated by TD-LTE

TokyoKDDI reports a 48 gain in Q3 profit but this is not enough for the operator to revise its forecast of a 2 decline for the full year

NTT Com is said to be planning to invest close to $16b to expand its cloud computing capabilities outside of Japan

manila Conglomerate San Miguel arranges to pay around $35m to up its stake in Eastern Telecom to a controlling 78 from an effective 40

PLDT buys a controlling stake in mobile rival Digitel in a deal worth around $16b after finally convincing regulators to accept the deal by offering to give up 10-MHz of spectrum

wwwtelecomasianet Telecom Asia OctNov 2011 11

COVer STOrY

Taking apps to the next levelDemand for mobile apps shows no sign of letting up over the next five years but the apps landscape itself is a work in progress constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business from tablets and mobile OS developments to web apps and augmented reality

John C Tanner

12 OctNov 2011 Telecom Asia wwwtelecomasianet

More coverage of

Mobile Apps

A huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another application

The fragmented mobile OS landscape that apps develop-ers must navigate is in flux as existing OS platforms are be-ing combined and even aban-

doned and new ones keep popping upThis year alone wersquove seen HP aban-

don its WebOS platform while both Nokia and Intel have abandoned the MeeGo OS project Intel is now backing Tizen a new open-source OS from the Linux Foundation and the LiMo Foun-dation that recycles some components of MeeGo and is based on the Samsung Linux Platform that LiMo uses for its open-source mobile OS

Meanwhile speculation about the fate of WebOS ndash and the possibility of companies like Facebook and Amazon taking it over ndash highlights the desire by content-driven companies to gain more control of the mobile OS platform rath-er than ride on top of someone elsersquos

ABI senior analyst Aapo Markkanen says Facebook needs its own OS because of the growing ubiquity of mobile so-cial networking ldquoA huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another applicationrdquo

Other web players are already doing just that In July Chinarsquos Alibaba Cloud Computing unveiled its own cloud-based mobile OS ndash dubbed Aliyun OS ndash as well as the first device that will run on it the K-Touch Cloud-Smart Phone W700 Aliyun supports Android apps web apps and cloud services such as email search weather updates and mappingnavigation tools though the ultimate goal for Alibaba is to develop a smartphone strategy for its e-commerce business

Also in July Mozilla revealed plans to develop an OS called Boot to Gecko which will be based on the Gecko en-

and both native and HTML5 developer environments as well as BlackBerry Runtime for Android Apps

The bad news for developers says Ovum chief telecom analyst Jan Daw-son is ldquothe adoption of QNX across the entire line in the coming months and years also means that RIM is leaving its traditional BlackBerry developers high and dryrdquo Dawson says existing develop-ers will have no choice but to start from scratch with an entirely new develop-ment environment

gine that drives its Fire-fox browser Develop-ment projects for Boot To Gecko include new web APIs linking OS and device capabilities like text cameras Blue-tooth and NFC chips to content

The good news is that there is some uni-fication of sorts in pro-gress most notably Googlersquos Android 40 ndash aka Ice Cream Sand-wich ndash which brings the smartphone and tablet versions of Android into a single version

ldquoBy creating a sin-gle version of Android Google is making it easier for develop-ers to modify their apps and take ad-vantage of the larger screens of tablets which should stimulate the creation of apps designed for Android tabletsrdquo Nick Dillon devices and platforms ana-lyst for Ovum said in a research note

RIM has done something similar with the recent launch of its new flag-ship BBX platform which merges the BlackBerry 7 smartphone OS with the QNX OS for its PlayBook tablets BBX will support BlackBerry cloud services

Mobile OS landscape The goalposts keep changing for developers Also even Alibaba has one now

wwwtelecomasianet Telecom Asia OctNov 2011 13

COVer STOrY

Native apps are the de facto format for the current apps boom but thatrsquos ex-pected to change with the development of web apps

ndash apps hosted in the cloud that run on the browser and thanks to features within the HTML5 standard can func-tion like native apps even when the de-vice is offline Indeed web apps are at the heart of Googlersquos long-term mobile ambitions ndash so much so that its com-mission fee for apps developers is a paltry 5 (compared to Applersquos 30)

The appeal of web apps is dead simple theyrsquore OS-agnostic which means apps developers can reach a much broader base of users with-out having to write separate apps for

iOS Android BlackBerry WP7 Bada LiMo etc How broad Letrsquos put it this way according to ABI Research over 21 billion mobile devices will have HTML5 browsers by 2016 compared to 109 million last year

Even though the World Wide Web Consortium (W3C) says the HTML5 standard wonrsquot be finished until the end of the decade 25 HTML5 features currently in development will be in wide use within the next three to five years says ABI senior analyst Mark Beccue ldquoWe expect HTML5 features in categories such as graphics multi-media user interactions and data stor-age to be widely adopted sooner rather than laterrdquo

But that doesnrsquot mean web apps

will be competing with those plat-forms or with native apps in general Beccue adds ldquoHTML5 adoption is go-ing to accelerate because it will be a key differentiator in the smartphone OS war I believe that Apple will be the key driver of HTML5 and consequently a primary benefactor as wellrdquo

Ovumrsquos Nick Dillon adds that the rise of web apps wonrsquot spell the end of either native apps nor the app storefront model ldquoApp stores offer a familiar environment for consumer to discover download and purchase apps and we anticipate that the major-ity of app stores will list a mix of both HTML5 and native applications in their catalogues in the futurerdquo

Web apps

Apps for feature phones

HTML5-enabled cloud apps wonrsquot kill native apps or kill app stores

23 billion feature phones in 2016 = major apps opportunity

The apps phenomenon has been limited to smartphones and more recently tablets for fairly obvious reasons But for all the talk about increasing

smartphone adoption as lower-priced models hit the shelves feature phones will remain the largest handset segment for some time Ovum forecasts the number of feature phones worldwide to reach 23 billion in five years which will account for 63 of the market

Thatrsquos a huge untapped market for apps developers limited to smartphone OSs and demand is such that Ovum predicts the feature-phone apps rev-enues will top $1 billion by 2016

Part of that growth will come from larger handset manufacturers operators and third parties offering improved dis-tribution channels for feature phones which have been lacking until recently

says Nick Dillon of Ovum Also de-velopers will leverage existing software options like JavaME Nokia web widg-ets and Opera Mini widgets to develop simple web apps before moving on to HTML5 as more feature phones ship with compatible browsers (see above)

Meanwhile therersquos the ongoing work of the WAC (Wholesale Applica-tions Community) which opened shop in February with eight operators and 12000 apps WAC is creating APIs aimed at runtime environments and browsers with the goal of building an OS-agnos-tic wholesale storefront ecosystem and billing platform that can bring feature phones into the apps ecosystem

WAC has been quiet since its Febru-ary launch But last month WAC CEO Peters Suh said in a blog post that ldquoa number of WAC member operators in Asia are on track to launch services in

Q4 2011 across a range of devices and a number of application storefrontsrdquo

Suh also said that WAC is devel-oping its suite of operator supported network APIs (starting with in-app payments) ldquowhich are currently be-ing implemented by a select number of developers with the aim of opening this up to a wider audience over the coming monthsrdquo Suh said WACrsquos network API service offering would be available in early 2012

WACrsquos network API for in-app pay-ments is well-timed According to app marketplace analytics firm Distimo in-app purchases account for a whopping 72 of iPhone app revenues (compared to just 28 a year ago) Close to half of those in-app payments were via free apps More remarkably less than 5 of all iOS apps even offer in-app pur-chases

14 OctNov 2011 Telecom Asia wwwtelecomasianet

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 13: Telecom Asia 201111

COVer STOrY

Taking apps to the next levelDemand for mobile apps shows no sign of letting up over the next five years but the apps landscape itself is a work in progress constantly shifting as devices get smarter and technologies advance to create new capabilities ndash and as old platforms give way to new ones Telecom Asia looks at the biggest trends shaping the apps business from tablets and mobile OS developments to web apps and augmented reality

John C Tanner

12 OctNov 2011 Telecom Asia wwwtelecomasianet

More coverage of

Mobile Apps

A huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another application

The fragmented mobile OS landscape that apps develop-ers must navigate is in flux as existing OS platforms are be-ing combined and even aban-

doned and new ones keep popping upThis year alone wersquove seen HP aban-

don its WebOS platform while both Nokia and Intel have abandoned the MeeGo OS project Intel is now backing Tizen a new open-source OS from the Linux Foundation and the LiMo Foun-dation that recycles some components of MeeGo and is based on the Samsung Linux Platform that LiMo uses for its open-source mobile OS

Meanwhile speculation about the fate of WebOS ndash and the possibility of companies like Facebook and Amazon taking it over ndash highlights the desire by content-driven companies to gain more control of the mobile OS platform rath-er than ride on top of someone elsersquos

ABI senior analyst Aapo Markkanen says Facebook needs its own OS because of the growing ubiquity of mobile so-cial networking ldquoA huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another applicationrdquo

Other web players are already doing just that In July Chinarsquos Alibaba Cloud Computing unveiled its own cloud-based mobile OS ndash dubbed Aliyun OS ndash as well as the first device that will run on it the K-Touch Cloud-Smart Phone W700 Aliyun supports Android apps web apps and cloud services such as email search weather updates and mappingnavigation tools though the ultimate goal for Alibaba is to develop a smartphone strategy for its e-commerce business

Also in July Mozilla revealed plans to develop an OS called Boot to Gecko which will be based on the Gecko en-

and both native and HTML5 developer environments as well as BlackBerry Runtime for Android Apps

The bad news for developers says Ovum chief telecom analyst Jan Daw-son is ldquothe adoption of QNX across the entire line in the coming months and years also means that RIM is leaving its traditional BlackBerry developers high and dryrdquo Dawson says existing develop-ers will have no choice but to start from scratch with an entirely new develop-ment environment

gine that drives its Fire-fox browser Develop-ment projects for Boot To Gecko include new web APIs linking OS and device capabilities like text cameras Blue-tooth and NFC chips to content

The good news is that there is some uni-fication of sorts in pro-gress most notably Googlersquos Android 40 ndash aka Ice Cream Sand-wich ndash which brings the smartphone and tablet versions of Android into a single version

ldquoBy creating a sin-gle version of Android Google is making it easier for develop-ers to modify their apps and take ad-vantage of the larger screens of tablets which should stimulate the creation of apps designed for Android tabletsrdquo Nick Dillon devices and platforms ana-lyst for Ovum said in a research note

RIM has done something similar with the recent launch of its new flag-ship BBX platform which merges the BlackBerry 7 smartphone OS with the QNX OS for its PlayBook tablets BBX will support BlackBerry cloud services

Mobile OS landscape The goalposts keep changing for developers Also even Alibaba has one now

wwwtelecomasianet Telecom Asia OctNov 2011 13

COVer STOrY

Native apps are the de facto format for the current apps boom but thatrsquos ex-pected to change with the development of web apps

ndash apps hosted in the cloud that run on the browser and thanks to features within the HTML5 standard can func-tion like native apps even when the de-vice is offline Indeed web apps are at the heart of Googlersquos long-term mobile ambitions ndash so much so that its com-mission fee for apps developers is a paltry 5 (compared to Applersquos 30)

The appeal of web apps is dead simple theyrsquore OS-agnostic which means apps developers can reach a much broader base of users with-out having to write separate apps for

iOS Android BlackBerry WP7 Bada LiMo etc How broad Letrsquos put it this way according to ABI Research over 21 billion mobile devices will have HTML5 browsers by 2016 compared to 109 million last year

Even though the World Wide Web Consortium (W3C) says the HTML5 standard wonrsquot be finished until the end of the decade 25 HTML5 features currently in development will be in wide use within the next three to five years says ABI senior analyst Mark Beccue ldquoWe expect HTML5 features in categories such as graphics multi-media user interactions and data stor-age to be widely adopted sooner rather than laterrdquo

But that doesnrsquot mean web apps

will be competing with those plat-forms or with native apps in general Beccue adds ldquoHTML5 adoption is go-ing to accelerate because it will be a key differentiator in the smartphone OS war I believe that Apple will be the key driver of HTML5 and consequently a primary benefactor as wellrdquo

Ovumrsquos Nick Dillon adds that the rise of web apps wonrsquot spell the end of either native apps nor the app storefront model ldquoApp stores offer a familiar environment for consumer to discover download and purchase apps and we anticipate that the major-ity of app stores will list a mix of both HTML5 and native applications in their catalogues in the futurerdquo

Web apps

Apps for feature phones

HTML5-enabled cloud apps wonrsquot kill native apps or kill app stores

23 billion feature phones in 2016 = major apps opportunity

The apps phenomenon has been limited to smartphones and more recently tablets for fairly obvious reasons But for all the talk about increasing

smartphone adoption as lower-priced models hit the shelves feature phones will remain the largest handset segment for some time Ovum forecasts the number of feature phones worldwide to reach 23 billion in five years which will account for 63 of the market

Thatrsquos a huge untapped market for apps developers limited to smartphone OSs and demand is such that Ovum predicts the feature-phone apps rev-enues will top $1 billion by 2016

Part of that growth will come from larger handset manufacturers operators and third parties offering improved dis-tribution channels for feature phones which have been lacking until recently

says Nick Dillon of Ovum Also de-velopers will leverage existing software options like JavaME Nokia web widg-ets and Opera Mini widgets to develop simple web apps before moving on to HTML5 as more feature phones ship with compatible browsers (see above)

Meanwhile therersquos the ongoing work of the WAC (Wholesale Applica-tions Community) which opened shop in February with eight operators and 12000 apps WAC is creating APIs aimed at runtime environments and browsers with the goal of building an OS-agnos-tic wholesale storefront ecosystem and billing platform that can bring feature phones into the apps ecosystem

WAC has been quiet since its Febru-ary launch But last month WAC CEO Peters Suh said in a blog post that ldquoa number of WAC member operators in Asia are on track to launch services in

Q4 2011 across a range of devices and a number of application storefrontsrdquo

Suh also said that WAC is devel-oping its suite of operator supported network APIs (starting with in-app payments) ldquowhich are currently be-ing implemented by a select number of developers with the aim of opening this up to a wider audience over the coming monthsrdquo Suh said WACrsquos network API service offering would be available in early 2012

WACrsquos network API for in-app pay-ments is well-timed According to app marketplace analytics firm Distimo in-app purchases account for a whopping 72 of iPhone app revenues (compared to just 28 a year ago) Close to half of those in-app payments were via free apps More remarkably less than 5 of all iOS apps even offer in-app pur-chases

14 OctNov 2011 Telecom Asia wwwtelecomasianet

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 14: Telecom Asia 201111

More coverage of

Mobile Apps

A huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another application

The fragmented mobile OS landscape that apps develop-ers must navigate is in flux as existing OS platforms are be-ing combined and even aban-

doned and new ones keep popping upThis year alone wersquove seen HP aban-

don its WebOS platform while both Nokia and Intel have abandoned the MeeGo OS project Intel is now backing Tizen a new open-source OS from the Linux Foundation and the LiMo Foun-dation that recycles some components of MeeGo and is based on the Samsung Linux Platform that LiMo uses for its open-source mobile OS

Meanwhile speculation about the fate of WebOS ndash and the possibility of companies like Facebook and Amazon taking it over ndash highlights the desire by content-driven companies to gain more control of the mobile OS platform rath-er than ride on top of someone elsersquos

ABI senior analyst Aapo Markkanen says Facebook needs its own OS because of the growing ubiquity of mobile so-cial networking ldquoA huge problem for Facebook is that while on the web it is a platform on mobile itrsquos just another applicationrdquo

Other web players are already doing just that In July Chinarsquos Alibaba Cloud Computing unveiled its own cloud-based mobile OS ndash dubbed Aliyun OS ndash as well as the first device that will run on it the K-Touch Cloud-Smart Phone W700 Aliyun supports Android apps web apps and cloud services such as email search weather updates and mappingnavigation tools though the ultimate goal for Alibaba is to develop a smartphone strategy for its e-commerce business

Also in July Mozilla revealed plans to develop an OS called Boot to Gecko which will be based on the Gecko en-

and both native and HTML5 developer environments as well as BlackBerry Runtime for Android Apps

The bad news for developers says Ovum chief telecom analyst Jan Daw-son is ldquothe adoption of QNX across the entire line in the coming months and years also means that RIM is leaving its traditional BlackBerry developers high and dryrdquo Dawson says existing develop-ers will have no choice but to start from scratch with an entirely new develop-ment environment

gine that drives its Fire-fox browser Develop-ment projects for Boot To Gecko include new web APIs linking OS and device capabilities like text cameras Blue-tooth and NFC chips to content

The good news is that there is some uni-fication of sorts in pro-gress most notably Googlersquos Android 40 ndash aka Ice Cream Sand-wich ndash which brings the smartphone and tablet versions of Android into a single version

ldquoBy creating a sin-gle version of Android Google is making it easier for develop-ers to modify their apps and take ad-vantage of the larger screens of tablets which should stimulate the creation of apps designed for Android tabletsrdquo Nick Dillon devices and platforms ana-lyst for Ovum said in a research note

RIM has done something similar with the recent launch of its new flag-ship BBX platform which merges the BlackBerry 7 smartphone OS with the QNX OS for its PlayBook tablets BBX will support BlackBerry cloud services

Mobile OS landscape The goalposts keep changing for developers Also even Alibaba has one now

wwwtelecomasianet Telecom Asia OctNov 2011 13

COVer STOrY

Native apps are the de facto format for the current apps boom but thatrsquos ex-pected to change with the development of web apps

ndash apps hosted in the cloud that run on the browser and thanks to features within the HTML5 standard can func-tion like native apps even when the de-vice is offline Indeed web apps are at the heart of Googlersquos long-term mobile ambitions ndash so much so that its com-mission fee for apps developers is a paltry 5 (compared to Applersquos 30)

The appeal of web apps is dead simple theyrsquore OS-agnostic which means apps developers can reach a much broader base of users with-out having to write separate apps for

iOS Android BlackBerry WP7 Bada LiMo etc How broad Letrsquos put it this way according to ABI Research over 21 billion mobile devices will have HTML5 browsers by 2016 compared to 109 million last year

Even though the World Wide Web Consortium (W3C) says the HTML5 standard wonrsquot be finished until the end of the decade 25 HTML5 features currently in development will be in wide use within the next three to five years says ABI senior analyst Mark Beccue ldquoWe expect HTML5 features in categories such as graphics multi-media user interactions and data stor-age to be widely adopted sooner rather than laterrdquo

But that doesnrsquot mean web apps

will be competing with those plat-forms or with native apps in general Beccue adds ldquoHTML5 adoption is go-ing to accelerate because it will be a key differentiator in the smartphone OS war I believe that Apple will be the key driver of HTML5 and consequently a primary benefactor as wellrdquo

Ovumrsquos Nick Dillon adds that the rise of web apps wonrsquot spell the end of either native apps nor the app storefront model ldquoApp stores offer a familiar environment for consumer to discover download and purchase apps and we anticipate that the major-ity of app stores will list a mix of both HTML5 and native applications in their catalogues in the futurerdquo

Web apps

Apps for feature phones

HTML5-enabled cloud apps wonrsquot kill native apps or kill app stores

23 billion feature phones in 2016 = major apps opportunity

The apps phenomenon has been limited to smartphones and more recently tablets for fairly obvious reasons But for all the talk about increasing

smartphone adoption as lower-priced models hit the shelves feature phones will remain the largest handset segment for some time Ovum forecasts the number of feature phones worldwide to reach 23 billion in five years which will account for 63 of the market

Thatrsquos a huge untapped market for apps developers limited to smartphone OSs and demand is such that Ovum predicts the feature-phone apps rev-enues will top $1 billion by 2016

Part of that growth will come from larger handset manufacturers operators and third parties offering improved dis-tribution channels for feature phones which have been lacking until recently

says Nick Dillon of Ovum Also de-velopers will leverage existing software options like JavaME Nokia web widg-ets and Opera Mini widgets to develop simple web apps before moving on to HTML5 as more feature phones ship with compatible browsers (see above)

Meanwhile therersquos the ongoing work of the WAC (Wholesale Applica-tions Community) which opened shop in February with eight operators and 12000 apps WAC is creating APIs aimed at runtime environments and browsers with the goal of building an OS-agnos-tic wholesale storefront ecosystem and billing platform that can bring feature phones into the apps ecosystem

WAC has been quiet since its Febru-ary launch But last month WAC CEO Peters Suh said in a blog post that ldquoa number of WAC member operators in Asia are on track to launch services in

Q4 2011 across a range of devices and a number of application storefrontsrdquo

Suh also said that WAC is devel-oping its suite of operator supported network APIs (starting with in-app payments) ldquowhich are currently be-ing implemented by a select number of developers with the aim of opening this up to a wider audience over the coming monthsrdquo Suh said WACrsquos network API service offering would be available in early 2012

WACrsquos network API for in-app pay-ments is well-timed According to app marketplace analytics firm Distimo in-app purchases account for a whopping 72 of iPhone app revenues (compared to just 28 a year ago) Close to half of those in-app payments were via free apps More remarkably less than 5 of all iOS apps even offer in-app pur-chases

14 OctNov 2011 Telecom Asia wwwtelecomasianet

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 15: Telecom Asia 201111

COVer STOrY

Native apps are the de facto format for the current apps boom but thatrsquos ex-pected to change with the development of web apps

ndash apps hosted in the cloud that run on the browser and thanks to features within the HTML5 standard can func-tion like native apps even when the de-vice is offline Indeed web apps are at the heart of Googlersquos long-term mobile ambitions ndash so much so that its com-mission fee for apps developers is a paltry 5 (compared to Applersquos 30)

The appeal of web apps is dead simple theyrsquore OS-agnostic which means apps developers can reach a much broader base of users with-out having to write separate apps for

iOS Android BlackBerry WP7 Bada LiMo etc How broad Letrsquos put it this way according to ABI Research over 21 billion mobile devices will have HTML5 browsers by 2016 compared to 109 million last year

Even though the World Wide Web Consortium (W3C) says the HTML5 standard wonrsquot be finished until the end of the decade 25 HTML5 features currently in development will be in wide use within the next three to five years says ABI senior analyst Mark Beccue ldquoWe expect HTML5 features in categories such as graphics multi-media user interactions and data stor-age to be widely adopted sooner rather than laterrdquo

But that doesnrsquot mean web apps

will be competing with those plat-forms or with native apps in general Beccue adds ldquoHTML5 adoption is go-ing to accelerate because it will be a key differentiator in the smartphone OS war I believe that Apple will be the key driver of HTML5 and consequently a primary benefactor as wellrdquo

Ovumrsquos Nick Dillon adds that the rise of web apps wonrsquot spell the end of either native apps nor the app storefront model ldquoApp stores offer a familiar environment for consumer to discover download and purchase apps and we anticipate that the major-ity of app stores will list a mix of both HTML5 and native applications in their catalogues in the futurerdquo

Web apps

Apps for feature phones

HTML5-enabled cloud apps wonrsquot kill native apps or kill app stores

23 billion feature phones in 2016 = major apps opportunity

The apps phenomenon has been limited to smartphones and more recently tablets for fairly obvious reasons But for all the talk about increasing

smartphone adoption as lower-priced models hit the shelves feature phones will remain the largest handset segment for some time Ovum forecasts the number of feature phones worldwide to reach 23 billion in five years which will account for 63 of the market

Thatrsquos a huge untapped market for apps developers limited to smartphone OSs and demand is such that Ovum predicts the feature-phone apps rev-enues will top $1 billion by 2016

Part of that growth will come from larger handset manufacturers operators and third parties offering improved dis-tribution channels for feature phones which have been lacking until recently

says Nick Dillon of Ovum Also de-velopers will leverage existing software options like JavaME Nokia web widg-ets and Opera Mini widgets to develop simple web apps before moving on to HTML5 as more feature phones ship with compatible browsers (see above)

Meanwhile therersquos the ongoing work of the WAC (Wholesale Applica-tions Community) which opened shop in February with eight operators and 12000 apps WAC is creating APIs aimed at runtime environments and browsers with the goal of building an OS-agnos-tic wholesale storefront ecosystem and billing platform that can bring feature phones into the apps ecosystem

WAC has been quiet since its Febru-ary launch But last month WAC CEO Peters Suh said in a blog post that ldquoa number of WAC member operators in Asia are on track to launch services in

Q4 2011 across a range of devices and a number of application storefrontsrdquo

Suh also said that WAC is devel-oping its suite of operator supported network APIs (starting with in-app payments) ldquowhich are currently be-ing implemented by a select number of developers with the aim of opening this up to a wider audience over the coming monthsrdquo Suh said WACrsquos network API service offering would be available in early 2012

WACrsquos network API for in-app pay-ments is well-timed According to app marketplace analytics firm Distimo in-app purchases account for a whopping 72 of iPhone app revenues (compared to just 28 a year ago) Close to half of those in-app payments were via free apps More remarkably less than 5 of all iOS apps even offer in-app pur-chases

14 OctNov 2011 Telecom Asia wwwtelecomasianet

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 16: Telecom Asia 201111

Augmented reality ndash apps that use a mobile devicersquos sensors GPS chip and camera to overlay interactive computer graphics over the real world

ndash is easily the sexiest apps category AR is still in its infancy ndash ABI estimates that us-ers downloaded six million AR apps last year just a fraction of the nearly eight bil-lion downloads in 2010 But ABI is pro-jecting close to a billion AR downloads and $3 billion in global revenues in 2016

AR is already being used for a wide variety of apps from games and naviga-tion to advertising and marketing There are even security-related AR apps under development ndash a recent Juniper report says that counter-terrorism may become the highest profile area of AR deployment citing a trial with Logica and the UK gov-

Augmented realityToday cool but glorified QR codes Tomorrow gesture recognition UIs

ernment to incorporate location tech and video recognition tech into AR apps for security service handheld devices

Meanwhile AR technology is already evolving beyond its current status as a gaming novelty or a snazzier version of QR codes

UK based software company Auton-omy has developed its own gesture-rec-ognition feature for its Aurasma AR app for iPad 2 iPhone 4 and Android smart-phones

Rather than tapping the device screen to interact with AR graphics users can reach in front of the device and interact with the graphics in AR-space similar to using a Kinect console For example an AR soccer game can cast you as the goalie allowing you to wave a hand in front of the device to block soccer balls being kicked at

you While gesture recognition may sound

gimmicky when used on a smartphone itrsquos also been touted as a crucial step in mov-ing AR apps from smartphones ndash which is still a bit clumsy as smartphone AR re-quires users to hold the device in front of them all the time ndash to glasses enabled with wireless connectivity

Qualcomm ndash which released its AR SDK earlier this year ndash is also developing a gesture-based user interface for devices that enables apps to be operated by waving a hand over the display Qualcomm chief Paul Jacobs demonstrated the technology for the first time at the companyrsquos annual developer event in Istanbul telling Tel-ecom Asia it should be ready to roll in the second half of 2012 or early 2013

wwwtelecomasianet Telecom Asia OctNov 2011 15

Tablets represent another play-ground for apps developers to come up with new apps that work better on a bigger tablet screen than on a smartphone

particularly video apps A recent In-Stat study found that half of tablet owners use them to watch TV shows and feature-length films That figure will pass 85 in five years at which time nearly 60 of smartphonetablet owners will also be viewing over-the-top video at home says In-Stat research director Keith Nissen

ldquoTablets in particular have become a primary video device both inside and outside the homerdquo Nissen said in a re-search note though he adds that doesnrsquot mean users will stop watching videos on smartphones In fact theyrsquoll expect to ac-cess video content across all devices in-cluding the living room TV set

ldquoAs these devices become a center-point for video engagement and con-sumption content providers device man-ufacturers and operators need to support a multiscreen usage model that reflects social interaction screen interaction per-sonalization and mobilityrdquo

Unsurprisingly the iPad remains the king of the tablet hill with other tablet vendors struggling to match Applersquos eco-system although Android collectively has taken 20 of the tablet market from Ap-ple in the past year

The latest tablet to generate ldquoiPad-kill-errdquo hype is Amazonrsquos Kindle Fire unveiled in late September In terms of hardware the Kindle Fire is more of a challenge to the Barnes amp Noble Nook e-reader than the iPad but the real attraction and poten-tial game-changer is the Firersquos integrated content experience ndash specifically all of the

The tablet effectTablets bring mobile video back Kindle Fire puts content front-and-center

content and services (including its Prime service which includes streamed movies and free shipping) that Amazon already sells which is also what allows Amazon to sell the Kindle Fire for an enticing $199

ldquoAmazonrsquos retail-based business mod-el allows the company to subsidize the device on the premise that consumers will buy more from Amazon be that physical goods or its digital contentrdquo says Ovum practice leader Adam Leach ldquoThis model is the direct inverse of Applersquos model Amazon is selling a device in order to sell more content where as Apple sells content in order to sell more devicesrdquo

And if the Fire does well observed Re-think Research director Caroline Gabriel in a research note ldquoAmazon is likely to move more directly into the iPadrsquos realm with a 10-inch stablemate with more tech-nical bells and whistlesrdquo TA

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 17: Telecom Asia 201111

The next generationFTTx is driving the development of the next wave of Chinese telecom vendors

Lachlan Colquhoun

CHiNA VeNDOrS

The rapid growth in China and Asiarsquos FTTH market is driv-ing the development of the next-generation of Chinese telecom vendors Not long ago

ZTE and Huawei were flying under the radar and slowly taking market share from established giants Today they are almost household names

While none of the new generation is in a position to be a real challenger to ZTE and Huawei the rapid develop-ment of the market is introducing some new names to the global telecom indus-try that are growing rapidly

Typically these firms are either start-ups created by returning Chinese who are entrepreneurs and technolo-gists or state-owned firms which grew from research grants to universities

According to Ovum FTTx is growing at a much faster rate in Asia than the rest of the world By 2016 50 of all wire-line broadband subscribers in the Asia Pacific will be FTTXs compared to 16 in Europe and 14 in North America

This will represent 100 million Chi-nese subscribers by 2016 largely off the back of a major infrastructure push by China Telecom

This has created an attractive op-portunity for a number of smaller Chi-nese vendors that now have the ability to at first develop their business domes-tically and then take it to the world as FTTH subscribers grow outside of Asia

Julie Kunstler Ovumrsquos principal analyst for optical components names four companies which are taking ad-vantage of this growth opportunity Shenzhen Gongjin TampW Cambridge Industries Group in Shanghai Superx-on and Wuhanrsquos FiberHome (see side-bar next page)

ldquoThere are millions of customer equipment premises devices shipping each quarterrdquo says Kunstler ldquoIn Q2 more than 65 million devices for FTTx were shipped worldwide and 80 ended up in China So the market is still young in the sense that it is still growingrdquo

Support from the majorsThis new generation of vendors is

partially dependent on ZTE and Hua-wei at this point for their growth as many of them supply to the Chinese big two ndash and to foreign vendors such as Alcatel-Lucent on an ODM basis

This is the model being pursued by Cambridge Industries Group (CIG) founded in 2005 by Gerald Wong a graduate of the Massachusetts Institute of Technology (MIT) who worked at Alcatel-Lucent before returning to Chi-na to start his own company

CIG is a significant supplier of GPON ONTs and Kunstler says the company is leading the charge to bring BOSAs (bodirectional optical subassem-blies) on board for PON equipment an advance that delivers savings of around

16 OctNov 2011 Telecom Asia wwwtelecomasianet

40 when compared with traditional optical module-based designs

Rose Hu CIGrsquos marketing director says the company is focused squarely on the PON CPE market ldquoIn this market we sell ODM and deal with tier-one and tier-two companiesrdquo says Hu

ldquoHuawei are also a small portion of our business and our products are available in the US via equipment ven-dors and we have recently opened an office thererdquo

CIG is a private company and em-ploys about 1100 people including 1000 workers at a factory in Shanghai It recently announced a doubling of its production capacity

Hu declines to be specific about the companyrsquos financial performance but says that in the two years from 2009 CIGrsquos revenues jumped more than 400

Wong reported in October 2010 that CIGrsquos revenues had grown at a CAGR of more than 125 from 2008 to 2010

Hu says the domestic Chinese mar-ket accounts for 30 of CIGrsquos business with 70 going offshore International markets she says are a major focus

ldquoWe have a very international facerdquo says Hu ldquoThe investors and many of the people working here are both Chinese and hold international passports and have lived and studied overseas To look internationally is very natural for usrdquo

Ovumrsquos Kunstler also names anoth-er privately held company Chengdu-

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 18: Telecom Asia 201111

wwwtelecomasianet Telecom Asia OctNov 2011 17

You could have blindfolded me and I wouldnrsquot have been able to tell the different between being at TampW or with another world-class equipment company

based Superxon as another vendor on the rise

Some of Superxonrsquos founders and employees came out of Fiberxon which through a series of mergers and acquisi-tions is now Source Photonics Kunstler says Superxon also has a link to UT-Starcom through that companyrsquos CEO Jacky Lu and believes that UTStarcom was an early Superxon customer

Like CIG Superxon is focused on the PON market and is supply-ing equipment to major vendors The companyrsquos strategy also involves BOSA designs for 10G PON equipment and Ethernet over Coax (EoC)

Kunstler says this will give Superxon and opportunity when the Chinese ca-ble industry begins to adopt PON with-in the next few years

Another expanding firm is Shenz-hen Gongjin TampW which came togeth-er in 2008 when Gongjin Electronics merged with Shenzhen TampW Electron-ics TampW has a significant RampD capa-bility and manufacturers a range of DSL products with a growing interest in network video

ldquoI met with them in Shenzen in Sep-tember and as far as I was concerned walking into their headquarters was no different to walking into an Ericsson or Alcatel-Lucent facilityrdquo says Kunstler

ldquoIn terms of their product display their knowledge of the market and dis-cussions on many aspects of commu-

nications we had a very intense debate and you could have blindfolded me and I wouldnrsquot have been able to tell the dif-ferent between being at TampW or with another world-class equipment com-panyrdquo

She was particularly impressed to learn that TampW had applied for Cable-Labs certification and conformance test-ing in the US ldquoDevices approved by Ca-bleLabs will be used by the likes of Time Warner and Comcast for use in FTTx in the US It gives them a good opportunity if and when that market moves over to PON in a much bigger wayrdquo

At rival research house Infonetics analyst Jeff Heynen pointed to Beijing-based Sumavision Technologies ndash which is listed on the Shenzen stockmarket ndash as a name to watch The company was founded in 2000 and has a market capi-talization of around $780 million

ldquoThe company is the leading suppli-er of video infrastructure to Chinese ca-ble operatorsrdquo says Heynen ldquoWith these operators in a major spending cycle to upgrade from analog to digital Suma-vision stands to expand very quickly since the cable TV subscriber market exceeds 150 millionrdquo

With the Chinese cable industry moving into consolidation mode and convergence a major project for the immediate future Sumavision is also poised to take advantage of the growing domestic market TA

On the fast track

I f any company is mentioned as likely to challenge either ZTE or Huawei FiberHomersquos rapid growth in the op-tical networking market is certainly a

top candidateThe state-owned FiberHome Group

owns Accelink and WTD which together are the largest optical component and module vendors in the Chinese domestic market FiberHome Group is also the par-ent company of FiberHome Telecommuni-cations Technologies the company which only started to compete in earnest on the global market as recently as 2010

While FiberHome is active at home it is building up its global sales from a small base and according to Ovum should be the fifth ranked company with 4 of the $20 billion optical networking equipment market by 2015 Last year domestic sales accounted for 93 of its business

Domestically the company has had recent success in the PON markets being selected as one of five suppliers for China Mobilersquos GPON equipment procurement tender and one of three winners of the EPON tender

FiberHomersquos growing success is the result of several decades of development Founded in 1974 and previously known as the Wuhan Research Institute of Posts and Telecommunications the company now employs around 12000 workers across five factories in China from its base in Wu-han now known as ldquoOptical Valleyrdquo

Despite its growth and prospects FiberHomersquos 21 growth in 2010 should be put into perspective Itrsquos revenues of $826 million compares with $27 billion for Huawei and $10 billion for ZTE but then both those companies were small once TA

More coverage of

China Focus

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 19: Telecom Asia 201111

Study finds Singapore Malaysia Thailand and Indonesia have yet to implement a dedicated M2M regulatory framework

Markus Steingroumlver Detecon International

MACHiNe-TO-MACHiNe

The ldquoInternet of Thingsrdquo ndash connected communicating machines ndash is a huge growth market Analysts predict that machines with micro-SIMs

will outnumber SIM cards used by hu-mans by a factor of ten within five years As a consequence the M2M market will be a multi-billion-dollar market with a short-term CAGR of about 40

M2M use cases can be designed for all kinds of industries Flexible wire-less M2M solutions also enable new businesses Examples range from im-

proved demand planning and electri-cal power outage prevention by smart grids to real-time consignment tracking for location or temperature status The healthcare sector also can benefit from the possibility of remote monitoring of vital body functions

Although there are ample opportu-nities for M2M deployment sectors like healthcare with high margins are lag-ging behind How can the full growth potential of M2M be unleashed The chart below shows the results of inter-views at the Telco 20 Executive Brain-storm event in which industry ex-perts evaluated potential M2M market growth barriers

Addressing roadblocksThe top three obstacles are regula-

tory issues that translate into four road-blocks that national regulatory authori-ties (NRAs) need to address numbering distribution switching costs technical interfaces and roaming

Addressing these roadblocks might require regulatory intervention or ad-justment of existing regulatory practice As national circumstances differ there are no standard solutions

Numbering distribution M2M devices use GSMGPRS platforms with SIM cards and assigned numbers ac-cording to the national numbering plan Strong growth in M2M device numbers requires sufficient mobile numbers that can be assigned Numbers are however scarce Depending on the numbering plan they might be limited

European regulators for example held consultations in early 2011 and the CEPT (European Conference of Postal and Telecommunications Administra-

The next growth story

Experts evaluate M2M growth barriers (scale 1 to 4)

Source Expert interviews at the 11th Telco 20 Executive Brainstorm

tions) issued a recommendation on how the significant number of member states with insufficient numbers should address the problem In a nutshell regu-lators face several options for eliminat-ing the number bottleneck In practice opening up a new number range will be appropriate in most countries

Switching costs M2M applications are often bound to one mobile operator for the entire device lifetime Switching M2M provider by changing SIM cards is only a theoretical option Estimates conclude that physically changing 10000 SIMs would cost $14 million

To enable M2M users to switch op-erators mobile network code (MNC) access for M2M users and providers would be a solution Regulators now issue International Mobile Subscriber Identity (IMSI) in blocks of 10 billion numbers to mobile network operators The IMSI includes a unique identifica-tion of the network the MNC If M2M users or intermediaries had their own MNCs switching physical network operator would be possible without changing the SIM card M2M users or providers would simply buy network services on the wholesale market Today the MNC has only two digits in most countries which limits the number of MNCs The codes can however be ex-tended to three digits

Technical interfaces Telecom op-erators often have poor technical and commercial M2M interfaces One sin-gle platform to connect to multiple net-work operators would be a potential ad-vance However platform services and system integrators are starting to bridge this gap These players already offer so-lutions that on the platform level enable

18 OctNov 2011 Telecom Asia wwwtelecomasianet

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 20: Telecom Asia 201111

the maintenance of millions of de-vices while on the system integration level they address the slow time-to-market of network operators

This market development also po-tentially benefits network operators they gain the opportunity to connect with customers via a unified platform However the implication is to give up control by not being the platform pro-vider itself As a conclusion there is no call for regulatory intervention as the market seems to regulate itself

Roaming In the M2M context roaming can be a potential showstop-per M2M applications often rely on full international coverage Providers can-not negotiate competitive regional or global roaming solutions and have to use intermediaries

How can operators get around these barriers Does the industry need man-datory national roaming in the context of M2M applications Many M2M ap-plications such as healthcare solutions rely on full national coverage which might require national roaming Some-times international roaming is used as a substitute for a lack of national roam-ing In this case a M2M provider uses foreign SIM cards from operators with full international roaming coverage such as Orange or T-Mobile Interme-

diaries such as Podsystem or Cinterion also offer M2M users international con-nectivity services

And is there a need to reduce roam-ing rates for M2M services Instruments applicable to voice like SMS notification of roaming costs are not an option and M2M applications need to be always on A dedicated number range or an M2M MNC with special lower rates could be a solution

To identify roadblocks for M2M de-ployment in Southeast Asia Detecon conducted an M2M readiness assess-ment for Singapore Malaysia Indone-sia and Thailand

None of the four countries has im-plemented a dedicated M2M regulatory framework There are however indi-vidual regulations in most of the identi-fied areas of concern In general Malay-sia and Singapore regulate more actively than Indonesia and Thailand which follow a more hands-off approach

Malaysia and Singapore have started to regulate international roaming rates bilaterally ndash especially for data services Singapore has also started regulating in-ternational roaming rates

In contrast to many of the 48 CEPT member countries all countries are M2M ready with regard to the number-ing space Yet no country has specific

roaming regulations for M2M And none of the countries has de-

veloped a switching mechanism such as open MNC codes Malaysia and Singapore are actively pushing M2M applications which is illustrated by numerous initiatives dealing with technical standards and by initiatives explicitly designed to promote M2M applications

Not all regulations affecting M2M were designed to specifically address M2M needs This could be the reason why in all countries MNCs are still re-served for network operators only Ma-laysia and Singapore however address all the remaining roadblocks suffi-ciently We therefore recommend these countries reassess the MNC assignment approach if necessary a three-digit MNC should be introduced

Thailand and Indonesia should follow the example of the other two countries Additionally a pragmatic ap-proach to ensure affordable roaming solutions like introducing specific M2M rates could be helpful In Thailand as-signing the available 3G range would also take M2M usage forward TA

Markus Steingroumlver is managing partner and head of the wholesale strate-gies group in the strategy and marketing department of Detecon International

M2M readiness in AsiaSingapore (IDA) Thailand (NTC)Malaysia (MCMC) Indonesia (NADFC)

M2M roamingrates

Consumer protection for data amp premium rate servicesBilateral roaming regulation with Malaysia

bull

bullNo regulationsbull

Bilateral roaming regulation with Singapore

bullNo regulationsbull

National roamingCommercial roaming deals were in place

bullNo national roaming obligations or deals3G license conditions included national roaming

bull

bullCommercial roaming deal were in place

bullCommercial national roaming agreements in placeNo regulatory obligations

bull

bull

Numbering distribution

8-digit numbering planPotential 100 mio s20 mio assigned to mobile networks40 mio unassigned

bullbullbullbull

9-digit numbering plan Potential 1 bio s200 mio assigned to mobile networks

bullbullbull

8-digit numbering plan Potential 100 mio s

bullbull

10-digit numbering plan Potential 10 bio s1 bio assigned to mobile networks

bullbullbull

Mobile network code

Only Network Provider with individual licensee is eligible for MNC2 digit code with 7 assignments

bull

bull

Only licensees and concessionaires are eligible for MNC2 digit code with 10 assignments

bull

bull

Only Network Provider with individual licensee is eligible for MNC3 digit code at 15 range amp total of 8 assignments

bull

bull

Only Network Provider with individual license is eligible for MNC2 digit code with 14 assignments

bull

bull

Technical regulationSeveral government initiatives promoting amp guide M2M including WirelessSG Programme

bullNo regulations or initiativesbull

Mandatory RfiD for track amp trace under consideration

bullNo regulations or initiativesbull

wwwtelecomasianet Telecom Asia OctNov 2011 19

More coverage of

M2M

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 21: Telecom Asia 201111

Making 3G workby Marc Einstein Frost amp Sullivan

COuNTrY fOCuS VieTNAM

Vietnam has been one of the fastest-growing markets in Asia for some time and given the level of market development today it is

hard to fathom that the countryrsquos mo-bile penetration rate stood at less than 20 only five years ago The market has increased from 26 million subs in 2005 to 907 million last year and revenues jumped fourfold to $44 billion over the same period

The attractive growth spurred new local players such as Viettel and EVN Telecom as well as foreign investors from Hong Kong South Korea and Russia to compete with the incum-bents Mobifone and Vinaphone This ultra-competitive environment led to cut-throat price competition which eventually overheated the market and significantly increased voice traffic vol-umes

Vietnam was also one of the later

markets in the region to auction 3G licenses finally doing so at the end of 2009 3G services were largely heralded as the answer to the oversaturated mar-ket and were launched with much fan-fare and while 3G will eventually play a huge role in the development of the sector and of the country as a whole so far 3G subscriber numbers have been largely disappointing compared to the massive growth seen in regional peers such as Malaysia and Indonesia

20 OctNov 2011 Telecom Asia wwwtelecomasianet

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 22: Telecom Asia 201111

Source Frost amp Sullivan

Vietnam lags behind in 3G

The Ministry of Information and Communications announced in July that after 18 months of commercial 3G service the country had eight mil-lion subscribers and they had generated $173 million Comparing this with oth-er countries in the region Vietnam is on the lower side of 3G usage ndash it is roughly on par with neighboring Cambodia but far behind other markets in the region

In fairness Vietnam is still a less de-veloped economy than most Southeast

and Vinaphone will be required to ei-ther merge or divest from one of the operators as a new law forbids more than 20 cross-holding in two telecom competitors Either action taken by the VNPT would reduce price pressures in the market

More importantly Vietnam is be-coming a major destination for manu-facturing mobile devices According to the Vietnamese government the coun-try exported $33 billion worth of mo-bile phones in the first eight months of 2011 increasing threefold year on year Nokia intends to close a manufactur-ing facility in Romania and invest 200 million euros in a new Vietnam facil-ity while Samsung plans to manufac-ture 100 million units in the country in 2012 Smartphone sales are currently only 10 of total sales and having a large in-country manufacturing base will help quickly raise this number TA

Marc Einstein is industry manager of ICT practice at Frost amp Sullivan Asia Pacific For more info contact djeremi-ahfrostcom or jessielohfrostcom

Asian markets as in 2010 the nominal GDP per capita was $1174 compared to $4992 in Thailand $2946 in Indonesia and $2140 in the Philippines accord-ing to the World Bank Slower usage is to be expected to some extent Inflation is also rampant in the country and has recently topped 23 making it one of the highest rates in the world

The real issue with 3G usage in Vi-etnam however lies more in how the service is marketed The past three years has been characterized by vicious price competition which continues to this day as Beeline recently launched free in-network calling for some re-charge denominations This price war has seeped into the 3G market as well as Viettel for example offers un-limited 3G dongle access for 120000 dong ($574) What the market need is branding and showing consumers the value of mobile broadband services if operators in the country aim to mon-etize their networks

There is hope however The VNPT group which owns both Mobifone

wwwtelecomasianet Telecom Asia OctNov 2011 21

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 23: Telecom Asia 201111

Reach 78000+Global Telecoms professionalshellip and over 45000 in emerging Asia markets

ONLINE bull WEBINARS bull VIDEO bull EVENTSRESEARCH bull PRINT bull CUSTOM PUBLISHING

Questex Mediarsquos Telecoms Group helps business marketers reach

decision-makers in the telco industry through a portfolio of ROI

media From online portals to print publications and supplements

to research and events the grouprsquos products help you connect

with executives and influencers in your market segment

wwwtelecomasianet

TATE_web_197x267indd 1 07082011 521 PM

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 24: Telecom Asia 201111

Adapting to the changing customer

In this section

Analyst View Gartner Narrowing the customer gap

Viewpoint Adapting to business change

Analyst View KPMG Indiarsquos new telecom policy shows vision

Cloud Services Core requirements for IaaS

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 25: Telecom Asia 201111

Martina Kurth Norbert Scholz Gartner

A common problem among communi-cations service providers (CSPs) is diminishing customer loyalty This is as much a result of the deregula-

tion of the industry as it is calls by customers for better service It is driving the demand for higher-value service and allowing for new more nimble competitors such as mobile virtual net-work operators and over-the-top (OTT) providers to enter the market

CSPs do have a trump card They possess a wealth of technical and commercial data that they need to share internally across various de-partments ndash the network IT finance marketing and customer support ndash if they want to take the required actions to improve the customer ex-

perience They can also leverage this informa-tion to enable channel and alliance partners to expand their market reach and target new cus-tomer segments through advertising or market-ing campaigns

This is crucial for established CSPs to help counter competitors that have fewer legacy sys-tems and therefore are more in tune with their customer base

CSPs have periodically touted customer im-provement initiatives Now competition is nudg-ing them toward gaining a better understanding of their customers to avoid defections But only with the requisite front- and back-office sup-port solutions can CSPs tap the full potential of these new technologies

Fragmented viewExisting OSS and BSS infrastructures are

ill-prepared to manage the requirements of gaining and using better insights into customer behavior because they donrsquot provide a unified view of customers across the variety of services they use

CSPs should converge these technologies across resources customers and services to allow unified customer management This in-cludes convergence among these solutions and among solutions adjacent to them such as value-added services business intelligence (BI) analytics device management CRM and others Currently these technologies donrsquot talk to each other and often there are multiple sometimes dozens of separate instances that all fulfil more or-less the same functions

Overall we see OSS and BSSCRM process convergence only happening slowly because of the CSPrsquos organizational set-up (with different departments for networking IT customer care

Narrowing the customer experience gap

BilliNg amp OSS SpeCiAl ANAlYST VieW gArTNer

24 OctNov 2011 Telecom Asia wwwtelecomasianet

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 26: Telecom Asia 201111

etc) and the fact that buying centers for OSS and BSS are usually separate Customer expe-rience monitoring and management however require convergence across domains not least converging data

CSPs are turning their attention toward im-proving customer experience with the help of tools that provide greater operational insight into service management data and correlate with customer-facing metrics

CSPs have recognized the urgency of track-ing and addressing the technical and commer-cial reasons for customer churn They are gaug-ing customer perceived quality in many ways such as correlating the number of times it takes to access a service or contact of contact center or simply by launching surveys Some approach-es even attempt to provide predictive informa-tion on the likelihood of churn for particular cus-tomers by correlating multiple data sources and exploring the results in a business context

Customer experience management (CEM) goes beyond data processing and monitoring It is a strategic management initiative with the intent to proactively impact the customerrsquos per-ceived quality of experience CEM is a wider term and embraces all the actions that CSPs take based on the insights and conclusions gained from experience monitoring

In the context of OSS and BSS CEM means that CSPs usually enhance their OSS and BSS environment by adding an additional systems layer on top which enables them to leverage existing functionality in the most efficient and cohesive way extract customer-centric insights and take active measures either on the net-work IT or commercial side to improve custom-er experience

Road blocks

As companies in other industries have been doing for a long time CSPs aspire to invest in the pressing drivers of customer satisfaction However the knowledge about those drivers ne-cessitates a more rigorous analytical look CSPs must now move beyond merely monitoring cus-tomer experience into managing customer ex-perience requiring that they leverage numerous

assets such as those mentioned in the previous section CSPs need an end-to-end operational view to roll out and support new services as the complexity of new services increases This shift also comprises process-driven end-to-end solu-tions with a clear systems congruent custom-er-centric view

Efficient customer management requires aligning various network-facing OSS and cus-tomer-facing BSS and CRM systems with actual customer behavior and preferences The goal is a more holistic analytical approach that differ-entiates to the extent possible between correla-tion and cause So far CEM initiatives have cen-tred on technical key performance indicators (KPIs) either from the network and OSS or on KPIs from customer-facing systems such as BSS and CRM Usually the users are either technical operations such as networksIT or commercialmarketing teams

As customer experience becomes more of a C-level matter this gradually initiates the need to become more holistic mapping technical KPIs with business KPIs This could include pro-viding insights on technical network problems such as slow downloads or poor video quality to certain customer groups CSPs could then de-termine what actions to take if any based on the value of each group for their business In particular technical analysis gets mapped with business data and actual customer perception to allow proactive measures More technical and commercial data insights become aligned with the business processes to allow targeted business actions

CEM ideally resides in a centralized consoli-dated database that interfaces with the central-ized product and service catalog and the service inventory database containing commercial cus-tomer and technical product data This unified data management allows a customer-centric view which congruent exploitation of network and subscriber data and the OSS BSS and CRM data necessary to proactively manage particular problems For example as an alarm gets gener-ated when a customer router fails another alarm gets generated to customer support who initiate a resolution and customer contact TA

CSPs must now move beyond merely monitoring customer experience into managing customer experience

Martina Kurth and Norbert Scholz are research directors in Gartnerrsquos carrier operations and strategies team Martina focuses on OSS and BSS systems and Norbert is responsible for primary research with vendors and end-users

ANAlYST VieW gArTNer BilliNg amp OSS SpeCiAl

wwwtelecomasianet Telecom Asia OctNov 2011 25

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 27: Telecom Asia 201111

Billing systems need to understand that business models are relationship-driven and characterized by fluid and interrelated agreements across customers and suppliers

Karl Whitelock Stratecast

Over the past two years there has been increased attention directed by the media analysts regulators en-terprise customers and most impor-

tantly end-users toward service providers about billing All want CSPs to make the billing process less complex and more accurate while providing a web 20+ style online experience

The heart of the issue is that CSPs must dif-ferentiate at an unprecedented rate through organic and partner-based service innovation This increases the need for sophisticated bun-dling and the ability to manage the billed reve-nue stream and compensation due to suppliers and channels It also means that flat-rate bun-dles or even tier-based customer usage plans are no longer enough as issues with content consumption and supplierpartner manage-ment continue to mount

Enter the world of agreements-based billing (ABB) In its simplest form agreements-based billing recognizes that business models are relationship-driven and characterized by fluid individualized and interrelated agreements across customers suppliers and channels

For example at the beginning of a busi-ness relationship all parties define terms and conditions along with the associated financial definitions In essence ldquoagreements are about the dance between the customer and the CSP in which the customer is seeking customized services and discounts and the CSP is seeking financial commitmentsrdquo

Relationship definitions can be between an

organization and its customers (B2C) between two work teams internally or between one or-ganization and others in a wholesale arrange-ment (B2B) that will eventually play out to end-user customers Obviously relationships can become quite complex especially when the agreement requirements are extensive terms are interconnected within and across partici-pants and monetary measures flow in multiple directions

Flexibility to support changing business needs is essential as technology advances market conditions are redefined business rela-tionships evolve and organizational structures are transformed On the other hand if support for new business models and service personali-zation options is limited the business typically forgoes opportunities or creates workarounds which can result in issues with accuracy audit-ability and scalability At a time when business change is needed the most inflexible systems will cause an organization to just ldquoget byrdquo Such a scenario especially as the communications industry moves to greater levels of complexity is not an acceptable option

Consumers of communications services want intuitive online usage controls and ac-count-level insights to reduce bill shock if their consumption exceed bundled limits They also want to pick-and-choose payment methods or pricing options on a self-service basis when it is convenient This level of customer control applies to not only postpaid customers but an increasing number of prepaid users as well

Driven to do business differently

BilliNg amp OSS SpeCiAl VieW pOiNT

26 OctNov 2011 Telecom Asia wwwtelecomasianet

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 28: Telecom Asia 201111

Enterprise customers on the other hand want to negotiate tailored agreements that match their unique needs and consump-tion patterns while rewarding them for their total spend across all regions and products They also want to sum-marize usage by department or their corporate hierarchy in increasingly flexible ways

In addition they want to know when usage goes outside pre-de-termined limits ndash outliers in the form of individual users or their volume com-mitments to certain products ndash which could be tagged for more intense scrutiny by a business unit manager the accounting department or even a security team as the need might arise

Metratech which introduced ABB recently explained to Stratecast how one conferencing and collaboration service provider built a differ-entiating brand in a very competitive field based on its ability to monetize complex B2B agree-ments and provide an intuitive on-line billing experience The operator helped its enterprise and consumer-level customers overcome a sig-nificant level of bill shock each month because they can now view billing details per collabora-tion session at any point in time This includes items such as rate per minute costs for each connection and any international long-distance dial fees associated with a collaboration call It also shows all associated fees including add-on fees participant fees non-show fees add-new-user fees re-issue fees and wallet card fees

The service differentiator for this operator is in intuitively providing billing details after a col-laboration session has ended which allows the companyrsquos IT resources to dynamically control and model its business as it helps its custom-ers to better manage their collaboration session costs

Agreements-based billing defines what how when and where services are supplied along with how much the supplier expects to be compensated For the CSP marketplace the agreements-based billing approach means offering customers an understanding of billing charges compared to their discount tiers and volume commitments at any time From a sup-plier perspective this approach means deliver-ing a cloud service operator with a snapshot of ldquobilling statusrdquo and a ldquocompensation statusrdquo for associated partners and suppliers on fre-quent time intervals Agreements-based billing and compensation means that each customer transaction may result in multiple interrelated partner transactions

Future success of all service-oriented busi-ness in all industries now depends on how quickly the end-to-end monetization and part-ner compensation processes can be addressed whenever business change occurs Only a hand-ful of software suppliers have grasped this de-gree of the business monetization concept

MetraTech for example has made ABB a reality for not just the communications indus-try but a host of others including the financial services conferencing and collaboration cloud services and transportation services indus-tries Agreements-based commerce is todayrsquos new business reality TA

Karl Whitelock is director of OSSBSS strategy at Stratecast (a division of Frost amp Sullivan) ndash kwhite-lockstratecastcom

VieW pOiNT BilliNg amp OSS SpeCiAl

Stratecastlsquos Karl Whitelock

wwwtelecomasianet Telecom Asia OctNov 2011 27

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 29: Telecom Asia 201111

Ashvin Vellody is director of management consulting at KPMG Views expressed in this article are that of the author and not attributed in any way to KPMG India

Indiarsquos new telecom policy shows strong vision but needs pragmatic execution to succeed

Ashvin Vellody KPMG

Indiarsquos Telecom Minister last month unveiled the draft telecom policy for India with the vi-sion to use the telecom network as one of the enablers for inclusive growth In his words

ldquoIn achieving the goals of national telecom policy 2011 revenue generation will play a secondary rolerdquo The telecom policy proposals garnered praise as a vision document but it remains to be seen how pragmatic implementation steps are taken to make the vision come alive

The call for pan-India licenses will create seamless nationwide service with no charges on roaming between different circles The new poli-cy looks to take mobile number portability (MNP) to the next level by allowing users to retain the same number anywhere in India In addition the policy seeks to provide stronger consumer pro-tection and a higher level of service accountabil-ity The complaint redressal mechanism is set to be strengthened once the policy is adopted and implemented

Focus on retentionTelecom operators will need to strengthen their

customer-care processes and systems to meet the additional needs as the customer base matures into a retention-focused model rather than only on growth BSSOSS vendors will have the oppor-tunity to provide targeted solutions to cater to the rule changes in roaming charges settlements pro-cesses and develop related MIS to assist opera-tors deliver business results effectively

A second area of focus is on broadband for eve-ryone The proposed policy seeks to increase rural penetration from 35 to 60 and drive the effort to create a knowledge-based society This will likely give incentives to operators to work with players across the mobile ecosystem including CPE man-ufacturers and content hosting providers covering entertainment education health governance and commerce This is vital to promote growth and en-sure commercial success for ICT players including network operators equipment manufacturers and content developers

The promotion of content creation particu-larly in vernacular languages will help drive regional content creation and delivery with the twin objectives of reaching a wider audience and ensuring growth of internet access

The policy also calls for domestic vendors to get preferential market access as ldquoMade in In-diardquo which will encourage technology collabora-tion and products designed to cater to the unique needs of the India market

A vibrant application developer community can increase economic rent-taking from 3G and LTE technology This policy should encourage lo-cal developers to develop tailored content and niche applications to cater the very long tail of the mobile application market in India

The fourth area of focus is on increased com-munications security Telecom service providers need to take adequate measures to ensure the security of the communication flowing through their networks by adopting contemporary infor-mation security standards The government has acknowledged the need for a coordinated effort encompassing information technology and tel-ecom for ensuring the security of cyberspace

Operators have to review their current secu-rity systems and develop new security strategies conforming to the best global practices The need for a comprehensive information security framework and assurance system requires them to work with niche domain vendors to devise methods and strategies toward ensuring con-formance to new and evolving security stand-ards

The need for centralized monitoring of the traffic flowing through a network also is impor-tant This would warrant the design and engi-neering of purpose-built systems and methods to ensure timely detection of suspected traffic

The overall policy has scored well in terms of completeness of vision The vital test will hap-pen in the coming months as this policy moves toward the execution phase We will await the measurable outcomes until then TA

Translating vision into action

BilliNg amp OSS SpeCiAl ANAlYST VieW KpMg

28 OctNov 2011 Telecom Asia wwwtelecomasianet

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 30: Telecom Asia 201111

Sign up atwwwtelecomasianet

Be first to read every issue of Telecom Asia with the Telecom Asia digital magazine The interactive format allows you to easily read share with friends and follow links to additional news and resources

Get your news firstBe first to read the latest issue delivered to your inbox or find it on Facebook or Twitter

News amp analysis on the goRead it on your laptop or mobile device a fully searchable version of the print magazine

Share contentForward important articles to your colleagues to discuss key issues affecting telcos

Insightful commentaryGet the same insight as the print magazine from John Tanner Tony Poulos and other regular columnists

Go Digital withTelecom Asia

For sponsorship opportunities please contact

Group PublisherGigi ChanEmail gchanquestexasiacomTel +852 2589 1338

Asia-PacificJessie CheungRegional Account Director APACEmail jcheungquestexasiacomTel +852 2589 1310

North America amp EMEAZena CoupeacuteSales ManagerEmail zcoupequestexcomTel +44 1923 852537

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 31: Telecom Asia 201111

BilliNg amp OSS SpeCiAl ClOuD SerViCeS

Core capabilities for IaaSCloud providers with closer ties to the network and a better grasp on security scalability and QoS have an advantage

Ari Banerjee Heavy Reading

It is clear that operators are looking to the cloud as a new business channel and hope to fill any gaps left by the established cloud providers such as Amazon and Google

The established providers having had issues with disruption of service leave some skeptical and looking to a cloud provider that may have closer ties to the network and a better grasp on security scalability QoS service management and performance monitoring

So for telcos infrastructure as a service (IaaS) is definitely the lowest-hanging fruit Ob-vious expectations from telcos are that IaaS

must be ubiquitous always avail-able have low latency and

have a high level of reli-ability and QoS

This service tapping a telcorsquos connectivity infrastructure and skills promises to deliver a new revenue opportunity that will compensate for the inevitable decline in telephony revenues as millions of people across the globe start con-suming virtual infrastructure across networks

This article looks at the core requirements for IaaS as identified by service providers that are rolling out IaaS services along with the infrastructure capabilities that need to be in place to achieve those requirements

Scale Process automation and manage-ment tools need to support hundreds and even thousands of companies and potentially mil-lions of end-users and also provide the highest levels of customer visibility control and end-to-end assurance

Converged network and IT capacity pool Virtualization and service management tools need to span IT and network boundaries so that the pool appears seamless and both serv-ers and network work together to support end-to-end user and application SLAs

Self-service and on-demand capacity A customer portal that gives customers visibility into and control over ldquotheirrdquo virtual IaaS envi-

ronment Process automation and manage-ment tools to enable customers to turn infra-structure resources updown in software on

demand without needing to dispatch a tech-nician to provision more capacity is also critical

High reliability and resilience Automated distribution of applications across the virtual-ized infrastructure (LAN and WAN) for resilience and SLA management

Integrated BSSOSS Automated IaaS management and operational processes to support flow-through service provisioning rat-ing settlement etc

30 OctNov 2011 Telecom Asia wwwtelecomasianet

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 32: Telecom Asia 201111

ClOuD SerViCeS BilliNg amp OSS SpeCiAl

Service management Integrated SLA and class-of-service management to support cus-tomer requirements for different application types eg business-critical or non-business-critical In the service management context con-vergence of eTOM and ITIL is a critical step es-pecially for telcos looking to successfully serve enterprise customers The pressure is on opera-tors to provide differentiated profitable cloud services A streamlined automated BSSOSS will play a pivotal role in enabling service provid-ers to quickly create deliver and monetize dif-ferentiated cloud services

The key underlying software requirements they need to provide flawless cloud services in-clude

Customer and business management lay-er A CRM-like self-service and customer care solution is needed to manage customer expec-tations and needs Both the customer and the customer service representative should have access to a broad range of service-level data related usage rates and metering characteris-tics

Revenue management Billing and charg-ing need to be linked directly to a mediation-like layer to capture all metered records and provide the necessary chargeback to individual or de-partmental levels They also need to interface with the self-service engine to provide the nec-essary usagechargeback information to us-ers The flexibility of pricing complex bundling capability and embedded business intelligence to provide customized offers need to be critical features of a revenue management solution set

Different chargingrating scenarios that need to be supported includebull Usage-based consumption (duration events)bull Chargebackbull SLA violation calculationsbull Storage (GB-month million IO requests)bull Bandwidth (public Internet inoutbound

same cloud regional cloud)bull Computing (CPU hours RAM hours service

units)bull Configurable server instance typesbull Partner management contract management

to determine individual terms with each part-ner on a per-service basis

bull Model contractual clauses in all aspects of the financial relationship including payment terms disputes taxation and currency re-quirements

bull Commission calculations for value-added re-sellers and agents as well as referral fees for referring partners

bull Allocating SLA penalties across the value chain based on fault

bull End-to-end subscriber management which includes account relationship terms real-time balance management customer hier-archies subscription type etc should also be part of the revenue management solution setCloud analytics Analytics capability to

provide reporting analytics and data-mining capability Data can be pulled from an existing CRM system self-service portals or from the re-source management layer itself to gain insight into customer usage patterns trend analysis of service consumption and changing demands and capacity planning of existing resources en-suring future cloud service requirements can be met

Service management layer A streamlined fulfillment system needs to feed requests from the self-service engine through the resource management platform to provide access to the required cloud services (storage computing power)

The performance and service assurance layers need to manage top down from the ap-plication end-userrsquos perspective things such as performance availability and behavior pat-terns which will help in SLAQoS management for private clouds Integrated SLA and class-of-service management need to support custom-er requirements for different application types such as business-critical or non-business-crit-ical

Network resource management layer The necessary hardware software and servic-es are required to create shareable computing power development environments and appli-cations This layer also provides IT resource management application lifecycle manage-ment database management and usage me-tering TA

A streamlined automated BSSOSS will play a pivotal role in enabling service providers to quickly create deliver and monetize differentiated cloud services

Ari Banerjee is a senior analyst at Heavy Reading

wwwtelecomasianet Telecom Asia OctNov 2011 31

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 33: Telecom Asia 201111

More coverage of

China Focus

fOruM l Jane Wang Ovum

The majority of Chinese companies do not provide mobile devices to employees According to an Ovum survey of large enterprises across 12

countries China has the lowest rate of com-pany-provided devices across BRIC (Brazil Russia India and China) countries A bring-your-own-device (BYOD) approach is already a reality in China However rather than aim-ing at improving end-user satisfaction this is driven primarily by cost constraints

For companies that provide mobile devic-es the average expense is the lowest across all the surveyed countries Enterprises in China mainly use voice and SMS-based mobile ser-vices which suggests a low level of maturity of mobile services in the market

Avoiding the big screenDespite the success of iPads and other tab-

lets in the consumer market most companies in China still do not consider them suitable for corporate usage and have not added them to procurement processes Overall big-screen mobile devices still have not made inroads into the Chinese enterprise

Mobile email and IM are the most widely used mobile applications A few enterprises also have implemented supply and inventory management mobile services GPS-based lo-cations based services and field service auto-mation offered by mobile telcos are also pop-ular among logistic and supply companies and there is interest in sales force and analytic applications

More than in other markets indoor cel-lular system solutions are widely deployed in China to increase cellular signals inside offic-es Voice over Wi-Fi is still not allowed in the country It represents a threat to telcos legacy voice services and we expect it to continue to be constrained by the regulator in the near future

There is growing interest in mobile UC and convergent features as enterprises start to realize the cost savings and staff produc-tivity benefits of these solutions Consider-ing the early stage of mobility adoption players need to demonstrate the direct ben-efits of these applications Real case studies

Jane Wang is a senior analyst with Ovum based in Beijing

Chinarsquos enterprises slow to adopt mobility strategy

More than in

other markets

indoor cellular

system solutions

are widely

deployed in China

to increase cellular

signals inside

offices

will help to convince customers and create momentum

Customer perception is strongest for IP telephony vendors for enterprise mobility putting them in a good place to establish their footprint in this area They are followed by telcos which are trying to position their val-ue-added services to offset revenue declines in traditional voice UC and FMC are part of most telcosrsquo enterprises services portfolio However these services are still in an early stage and most are simple bundled offerings including fixed and mobile services

Telcos should promote their ability to of-fer integrated fixed and mobile services for the enterprises The one-stop shop for multi-ple services with a single bill and single point of contact for support is a good way to ad-dress the cost concerns that enterprises asso-ciate with managing relationships with mul-tiple suppliers

The BYOD trend is growing for enterpris-es in China Providers should recognize this trend and make sure their device manage-ment capabilities and partnerships evolve to reflect this need They should also help enter-prises control the costs of mobility by offering centralized contracts and providing tools to improve visibility and cost management

With many employees using their own mobile devices for business enterprises will struggle to mobilize their business applica-tions over a wide range of device brands and models Providers need to help enterprises with this challenge and consider the compat-ibility of different models when developing applications and management tools

Vendors and services providers need to consider offering mobility solutions inte-grated with business process and that provide clear business gains SI capabilities either in-house or through partnerships will be a key differentiator

Chinese telcos need to increase their fo-cus on the enterprise sector and invest in more value-added mobility services This will stimulate customer to use more applications and drive higher usage of mobile data which will ultimately help telcos to achieve higher ARPUs TA

32 OctNov 2011 Telecom Asia wwwtelecomasianet

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 34: Telecom Asia 201111

TeleC

OM

CA

reer

BS TransComm appoints COO

BS TransComm has appointed RK Dubey as its COO for the northern re-gion of India Dubey comes to BSTL from Vihan Enterprises where he held the CEO position

Prior to that he worked in vari-ous capacities at Bharti Airtel Reliance Communications TVS Interconnect Systems Bharti Infratel and Wireless Tata Tele Infra Structure

SAP HK has new MD Paul Sakrzewski has

succeeded Mike Hawes as MD for SAP Hong Kong Sakrzewski joined SAP in 2008 and was most recently head of business operations for SAP Asia Pacific Japan

Prior to joining SAP he held sen-ior executive roles at BOC Group and Goodman Fielder

Telco Systems hires sales VP

Telco Systems a provider of multi-service MPLS and Carrier Ethernet ac-cess and aggregation solutions has ap-pointed Orlando Tan as VP of sales in APAC based in Singapore

Tan comes to Telco Systems from Audiocodes where he served in a simi-lar role He has 18 years of experience in the ICT industry leading sales new business and channel strategy for vari-ous organizations in companies such as ECtel and ECI Telecom

Roamware names new CMO

Peter Alexander has joined Ro-maware as EVP and CMO Alexander comes to Roamware from Cisco where he worked for 15 years and served most recently as VP of worldwide file market-ing

Prior to Cisco he held senior roles at StrataCom Republic Telecom Systems Entropic Speech and ROLM Corp

Thuraya has new CFOPatrick Chenel has joined Thuraya

Telecommunications as CFO He re-places Mohammed Sharaf a long-time Thuraya CFO who left the mobile satel-lite service operator earlier this year

Chenel will lead Thurayarsquos financial management planning and reporting functions as well as maintain and de-velop the companyrsquos relationships with the relevant financial institutions and strategic suppliers across the globe

Prior to joining Thuraya Patrick was the CFO for the real estate arm of the Qatar Investment Authority Qatari Diar

Patton names VP for South Asia ops

Patton Electronics has appointed Aveek Roy as VP of South Asia opera-tions for PE-Inalp the companyrsquos India affiliate

Based in New Delhi Roy will lead business development and sales opera-tions throughout the Indian sub-conti-nent

Prior to joining Patton Roy has previously worked with several Nasdaq-listed organizations including Audio-codes NMS Communications Siemens and General Electric

MMA appoints comms director

The Mobile Marketing Association (MMA) has named John Bianchi com-munications director for the organiza-tion

Based in New York Bianchi will lead PR efforts for North America working in conjunction with North American MD Michael Becker and reporting di-rectly to MMA CEO Greg Stuart

NSN appoints exec chairman

Nokia Siemens Net-works has appointed Jes-per Ovesen as executive chairman

Previously Ovesen was CFO at Danish tele-coms group TDC during the companyrsquos restruc-turing process and IPO

Ovesen replaces former CEO Olli-Pekka Kallasvuo who has stepped down from the role of non-executive chair-man citing time commitments

HP CTO retiresHP said its tech chief

Shane Robison has re-tired effective Novem-ber 1 Robison an EVP as well as chief strategy and technology officer and a member of HPrsquos executive council spent 11 years at HP

He will not be replaced the com-pany said

Robison is the first major executive to depart since Meg Whitman replaced Leo Apotheker as chief executive in Sep-tember He helped shaped the compa-nyrsquos corporate strategy and technology agenda He has led many of the com-panyrsquos largest merger and acquisition activities and RampD efforts HP added

MD for APAC and EMEAConvergys has promoted Marife

Zamora to MD for Asia Pacific Europe the Middle East and Africa

Zamora who previously served as the first country manager of the Philip-pines will lead the companyrsquos interna-tional customer management business and oversee 37000 employees through-out contact centers in UK India and the Philippines

Jesper Ovesen

Shane Robison

Paul Sakrzewski

Contacting Telecom Career

Advertising Gigi Chan Tel 852 2589 1338 Fax 852 2559 7002 E-mail gchantelecomasianet

Editorial Fiona Chau Tel 852 2589 1333 Fax 852 2559 7002 E-mail fchautelecomasianet

wwwtelecomasianet Telecom Asia OctNov 2011 33

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 35: Telecom Asia 201111

pOST SHOWAsiAn CArriers ConferenCe bull september 27-30 bull Cebu philippines

With domestic and in-ternational voice pric-es continuing to drop and more business moving over-the-top

carriers are grappling with the ques-tion What is next At the Asian Car-riers Conference this was a key theme as telcos gathered in Cebu for bilateral meetings with their partners potential customers and rivals

The annual event now in its sev-enth year once again brought in record numbers despite a typhoon which hit Luzon to the north on the morning of Day 1 and a strike by Philippines Air-line ground staff The organizer PLDTSmart reported a turnout of 942 del-egates up from just under 800 the pre-vious year

In the opening keynote address PLDT SVP and head of international carrier business Eric Alberto frankly summed up the feelings of the vast ma-jority of the carrier audience when he said ldquoItrsquos getting harder to make a buck let alone stay on a steady growth pathrdquo

With the international and domes-tic voice business under huge stress he noted carriers have no choice but to

What next

search for new business or in the in-dustry vernacular ldquonew value streamsrdquo

Underscoring the urgency of telcosrsquo quest he pointed to Facebook hitting the 800-million-user mark and tying

up with Skype to offer instant mes-saging apps It has also launched a messaging service combining online chat text messages and real-time conversation tools with email ldquoAll these complete directly with traditional telco servicesrdquo Alberto said

But rather than dwell on neg-ative scenarios which everyone is well aware of and most telcos have accepted he gave examples of how they can compete ldquoTelcos must build their own communi-ties like the OTT players haverdquo

He sees an opportunity in Asia for

operators to build their own communi-ties ldquobecause of the lack of established OS or device maker app stores with a lo-cal footprint in the regionrdquo To succeed they need to establish a large developer community and engage customers by taking advantage of their understand-ing of the local market

To build that connected commu-nity in a market where 80 of people have 2G feature phones he said Smart recently launched the Netphone an Android handset from ZTE Combined with the SmartNet platform he said the device gives users access to social me-dianetworking at a much lower price point than standard smartphones and prepaid data plans

The Safe Browsing feature allows Netphone users to access selected SmartNet services for free or at disPLDTrsquos Eric Alberto

Evert-Jaap LugtAnnti Orhling

34 OctNov 2011 Telecom Asia wwwtelecomasianet

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 36: Telecom Asia 201111

counted rates ldquoUsers donrsquot have to worry they will be charged for other internet services that run in the back-ground which happens on convention-al smartphonesrdquo Alberto explained

The Netphone 701 is the first in a se-ries of Android handsets Smart will re-lease as various price points ldquoThrough the Netphone we intend to build com-munities of smartphone subscribers who use a wide range of applications from various sourcesrdquo

Looking at the need for telcos to partner Antti Orhling co-founder and inventor of Blyk noted in his presen-tation that ldquoIf you want to win some-thing you have to work with people and not fight with themrdquo

While that may seem obvious tel-cos have a long history of being slow to work with players outside the telecom business and accept new concepts Text messaging is the classic example Back in the late lsquo90s he was in the difficult position of trying to persuade operators that SMS was a good business

In terms of customer loyalty and moving toward a community Orhling said that giving people a SIM card is not enough anymore ldquoThat is just the first step You have to enroll and manage them by offering personalized contentrdquo

He said operators have to move from basic demographics to psycho-graphics and dynamic info about usage and behavior which is what Blyk does with its messaging platform to link us-ers with personalized content

CEO and founder of Nimbuzz Evert-Jaap Lugt started his presentation by noting that ldquowe are living in more interesting times then ever Irsquove been in the industry 20 years and wersquore facing more threats but also more opportuni-ties than ever beforerdquo

To look at the future of carriers

Lugt said you need to look back five to six years when life was very comfortable for operators and margins were good ldquoBack then the focus was on hardware ndash hardware was king Nokia had 40 share of the marketrdquo

He said now itrsquos all about the apps functionality OS standardization and most importantly the ecosystem ndash with only two players dominating the space ndash Google and Apple

The future winners he said will be the carriers that are capable of building the best ecosystem ldquoThe stakes are ex-tremely high because the winner takes it all as they lock you inrdquo

The plenary panel at the end of the day looked at the challenges of moving from a being a dumb-pipe provider to being a smart-pipe provider Many on the panel were skeptical that most opera-tors could make that leap pointing to a lack of risk taking no culture of partner-

ing and not being receptive to new busi-ness models or ways of doing business

iBasis CTO Ajay Joseph said ldquowersquoll all end up as dumb pipes Being able to tap their lsquohidden assetsrsquo [customer data] is good in theory But you have to be willing to take risks and thatrsquos not in a telcorsquos DNArdquo

To develop the right DNA takes time said Tata Communications SVP Christian Michaud ldquoIt starts with top management We donrsquot have that timerdquo

Asked for the top priorities for tel-cos over the next 12 months the pan-elists suggested speeding up donrsquot try to do everything in-house and diversi-fying their employee base by bringing in people from outside the telecom space who can take risks and understand value-added services and partnerships They said having people who know how to build software will be vital moving forward TA

wwwtelecomasianet Telecom Asia OctNov 2011 35

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 37: Telecom Asia 201111

eVeNTSCAleNDAr

Networking opportunities

across Asia

For full details of the events visit wwwtelecomasianet To list an event contact Candace Ho at chotelecomasianet

Date Event Location

November 15 2011 Indonesia Telecoms International Summit Jakarta Indonesia

November 16 ndash 17 2011 Mobile Asia Congress Hong Kong SAR China

November 16 ndash 19 2011 Vietnam Comm Vietnam Internet amp IT Vietnam Electronics 2011 Hanoi Vietnam

November 21 ndash 22 2011 4G Device World Seoul South Korea

November 30 - December 01 2011 CDN World Forum Asia Hong Kong SAR China

November 30 - December 01 2011 New Digital Economics amp CSG APAC Executive Forum 2011 Singapore

November 30 ndash December 02 2011 Carrier Ethernet APAC Singapore

November 30 ndash December 02 2011 World Cards and Payments China Focus 2011 Shanghai China

December 01 2011 Telecom Asia Readersrsquo Choice Awards Singapore

January 15 ndash 17 2012 PTC 2012 Honolulu USA

January 16 ndash 18 2012 Mobile Money APAC Hong Kong SAR China

February 07 ndash 08 2012 Management World Asia Singapore

February 27 ndash March 01 2012 GSMA Mobile World Congress Barcelona Spain

March 20 ndash 21 2012 Mobile Commerce Summit Asia 2012 Singapore

March 21 ndash 22 2012 Annual OSS BSS Summit Singapore

March 21 ndash 23 2012 Convergence India India

36 OctNov 2011 Telecom Asia wwwtelecomasianet

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 38: Telecom Asia 201111

Tony Poulos l pOulOSpOiNTS

This monthrsquos issue is packed with stories about mobile apps and their evolution but apart from some involvement in the Wholesale Applications Community

(WAC) or some homegrown efforts most Asian operators will probably not benefit from this app revolution ndash or will they

If yoursquove been reading the headlines you will have seen that web apps are emerging as a viable option especially for enterprises wish-ing to use cloud services and make them avail-able to all employees regardless of what mobile tablet or phone they are using The fact that web apps applications residing on web serv-ers and not on the device itself are OS agnostic makes them the ideal extension to any opera-torrsquos cloud arsenal

Combining web apps cloud services and security would make a winning combina-tion for any telco operator wanting to add the ldquosmartrdquo to the pipes The combined offering could be difficult for enterprises to resist and something a little more difficult for OTT play-ers to compete with In fact tying too closely to one cloud service or supplier may be limit-ing for businesses that prefer to take a ldquobest of breedrdquo approach The communications service provider (CSP) with multiple cloud offerings tied to secure communications channels may be just the trick

Freedom to chooseIf we take things one step further and

look at todayrsquos market reality consumers and employees do not want to be tied to any par-ticular company stipulated handset or device often preferring to use their own This should not be discouraged (think of the cost savings) but provided for Instead of having to log in to each cloud service separately CSPs could offer a single secure log-in and encryption key for the online session regardless of which service or web app is being used

This realm of BYOD (bring your own de-vice) is gaining favor with businesses not only because of potential cost-savings but also in terms of staff satisfaction and morale How-ever access to the corporate network creates a host of management and security headaches for IT staff and calls for careful and unobtru-sive device management capabilities Again

something the CSP could provide as a value-added service

HP is one of a number of suppliers that realize the importance of BYOD and recently launched its own Mobile Applications Services designed to enable workers and consumers to access applications data and business processes through any device and from any location HP and its rivals including Cisco Systems and Juni-per Networks are rapidly rolling out solutions to help businesses deal with the growing BYOD trend which has been fueled by the rising use of iOS and Android-based smartphones and more recently tablets

Does this mean a direct threat to CSPs Hardly It is unlikely that any one supplier will have all the components required for a true end-to-end enterprise cloud or device strategy offering applications from multiple develop-ers on multiple platforms over multiple net-work types and across multiple geographies Thatrsquos why the smarter mobile players like Vodafone are setting up global services opera-tions specifically to provide a one-stop shop for all an enterprise might require and a neu-tral one at that For a truly open cloud services offering everything from virtualized servers ubiquitous network transit any web app de-livered to a secure device and a trusted third party (TTP) will be required and sought after by enterprise customers

CSPs have played this role before with sim-pler PBX and Citrix services and have played it well but can they do it again It is no longer a matter of ldquoifrdquo and ldquohowrdquo but more like ldquowhenrdquo CSPs will have to be willing to stand up and be counted or this whole new market will pass them by The dilemma lies yet again with the uncertainty of making big investments in a line of business few have had long-term experience with Telcosrsquo boards are becoming so risk-averse they may take some convincing or even replac-ing before they get it

Waiting to see what pans out is not an op-tion By the time the slow movers get into the game it will be too late The market is expecting telcos to take the lead The technology is avail-able the reasons are mounting and even some of the OTT players are looking for a TTP to lead the charge Is your telco business up to the chal-lenge TA

Tony is market strategist for the TM Forum and a regular contributor to Telecom Asia

Telcosrsquo boards

are becoming so

risk-averse they

may take some

convincing or

even replacing

before they get it

No more sitting on the fence

wwwtelecomasianet Telecom Asia OctNov 2011 37

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 39: Telecom Asia 201111

Please speak AmericanApplersquos Siri voice recognition system is proving to be something of a wise-ass

directing anyone who asks about sex to local escort servicesOther savvy answers provided to readers of USA Today include responses to

riddles details of what the device is ldquowearingrdquo and even a detailed answer to the eternal question ldquowhatrsquos the meaning of liferdquo

However with many non-US users complaining the system doesnrsquot recognize their accent perhaps the critical question we should be asking Siri is ldquoWhy donrsquot you work outside Americardquo TA

A US man faces a three year probation for showing pornography on a broadcast of the Superbowl in 2009

Frank Tanori Gonzalez pleaded guilty to computer tampering during a court trial after being fingered for the crime in February this year Around half of cable broadcaster Comcastrsquos 80000 subscribers saw the explicit 37-second clip when they should have been watching the dying seconds of a tense final

It took three years to track Gonzalez down and he is now due to be sentenced on December 1 TA

Vodafone faces pricing problems whichever way it turns being ordered to pay compensation to one Indian subscriber and facing a customer revolt over new charging methods in the UK

An Indian consumer body ruled Vodafone Essar should pay 6000 rupees ($128) compensation to a subscriber hit with a whopping 22000 rupee monthly bill after

making several calls to satellite phones The body ruled the carrier didnrsquot make

clear such calls cost 500 rupees a time

Ironic then that in the UK clarity over billing landed

the operator in hot water with subscriber panning new pricing

methods that will increase their monthly bill regardless of

whether they are in contract or notrdquo TA

Internet droopWeb porn is turning

men into flops up to 30 years before nature can

Research by US journal Psychology Today reveals a growing number of 20-somethings reporting problems with their manhood as a result of overdosing on porn Many are unable to have actual sex due to an increased tolerance to dopamine ndash the brainrsquos pleasure chemical

It can take up to three months to recover normal functionality provided the fella can keep his hand off his mouse in the meantime

Those who canrsquot wait may wish to turn their browser to online adverts for Viagra but that does run the risk of exposure to a whole other type of virus TA

Facing justice

Vodafone price woes

WatersellinrsquoIt seems Chinarsquos burgeoning micro-bloggers are ripe for the

picking by watermelon farmersTen farmers in the rural town of Changgou have doubled

the selling price of their crops by advertising on domestic site Weibo which they turned to because they didnrsquot have enough cash for regular advertising

Consumers were won over by pictures of farmers tending their crops with some driving for four hours to buy the melons and dealers placing orders for more than each farmer can produce

The rich pickings have understandably helped some of the farmers overcome initial skepticism about the ldquonewrdquo technology TA

BACKpAgeBriefiNg

38 OctNov 2011 Telecom Asia wwwtelecomasianet

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing
Page 40: Telecom Asia 201111

Wersquove got Asiarsquos telcos covered

DIGITAL MAGAZINE

Sign up at wwwtelecomasianet

For sponsorship opportunities please contact

Gigi Chan Group Publishergchanquestexasiacom+852 2589 1338

Get in-depth analysis and insight into Asiarsquos telco industry from Telecom Asiarsquos

targeted media channels

NEWSLETTERSTelecom Asia Daily China Edition lt亚洲电信gt

4G Insight Carrier Ethernet Billing amp OSS

Next-Gen TV Telecom amp IT Vietnam

DigitalNewsletters_197x267indd 1 09232011 1048 AM

  • Contents
  • Cover story
    • Taking apps to the next level
      • FEATURE
        • China Vendors
          • Next wave
            • M2M
              • Barriers to growth
                • Country Focus Vietnam
                  • Faster but cheaper
                      • BILLING ampamp OSS SPECIAL
                        • Analyst View Gartner
                          • Narrowing the customer gap
                            • Viewpoint
                              • Adapting to business change
                                • Analyst View KPMG
                                  • Indias new telecom policy shows vision
                                    • Cloud Services
                                      • Core requirements for IaaS
                                          • COLUMNS
                                            • Tanner
                                              • No longer virtual
                                                • Forum
                                                  • Opportunity in the enterprise
                                                    • Poulos Points
                                                      • More than the sum of its parts
                                                          • First mile
                                                            • Twisted tech
                                                              • Show Report Asian Carriers Conference
                                                                • Whats next Telcos struggle in search for new revenue streams
                                                                  • INDUSTRY ANALYSIS
                                                                    • Chinas cellcos look to Europe for growth
                                                                    • Regulations hold back move to consolidation in India
                                                                    • Long-term impact of Thai floods on supply chains to take weeks to assess
                                                                      • NEWS MAP
                                                                        • Asian telecoms this month
                                                                          • REGULARS
                                                                            • Insight
                                                                            • Telecom Career
                                                                            • Events Calendar
                                                                            • Backpage Briefing