ZTE tagged as shipper of undervalued cables worth P25.7 M
The Chinese company ZTE Corp. was dragged into yet another controversy yesterday after the Bureau of Customs (BOC) reportedly busted P25.7 million worth of power cables and other telecommunications equipment that it reportedly shipped to the Port of Manila last month.
Customs Commissioner Rufino Biazon said the “ZTE” markings on the box of power cables and panel board accessories raised suspicion that the shipper, ZTE Corp. from Shenzhen, China, is the same company previously linked to the botched $329-million national broadband network deal during the time of former President and now Pampanga Rep. Gloria Macapagal-Arroyo.
“On the boxes, we can see the ZTE logo. Based on the knowledge, I was previously in Congress when this was being investigated, it was the same logo so most likely it is the same company,” Biazon said, adding that ZTE also deals with other telecommunication firms.
The BOC is not ruling out the possibility that the imported 270 pieces of power cables, 29,286 patchcords and 90 pieces of panel board accessories that were found inside a 40-foot container van were intended for other projects in the Philippines.
According to the Customs Valuation and Classification Division, it appeared that the importations of similar kind and quantity should have a value of $589,283.68. But its total invoice value was only $13,700.
Biazon said they would conduct a deeper probe on the importation, which was declared as 196 kilograms of cables and accessories. It was also grossly undervalued.
The BOC would also check if ZTE had previous importations.
The consignee of the equipments was identified as FEC Trading.
Customs Deputy Commissioner for Enforcement Horacio Suansing Jr. said that FEC Trading was also the consignee of a 40-foot container van misdeclared to contain 27 pieces used replacement parts. There were also signs of violation of the Used Motor Vehicles law.
During inspection, authorities discovered that the container van was filled with car bodies of 16 units of Mini Cooper, including the cabs and body shell with an estimated value of P8 million. They reportedly came from Japan.
Suansing said both shipments arrived last month.
“We received a tip from an asset and we immediately placed them under ‘alert’ and that was how we foiled the attempted smuggling of these items,” he said.
BOC hits big
Apart from the car parts and the telecommunication equipment, the bureau also presented other seized items yesterday morning.
Biazon said the haul had an estimated collected amount of P90 million.
BOC-Enforcement and Security Service (ESS) Director George AliƱo said a 40-foot container van filled with yarn under the name Asian Bonded Customs Warehouse Corp. was seized.
It was supposedly intended to be delivered to the compound of Pulilan Footwear and Luggage Marketing Corp. located in Barangay Lumbac, Pulilan, Bulacan.
The ESS apprehended the shipment on the grounds of illegal diversion. It was reportedly delivered to the ECCO Food Corp. compound in Barangay Malanday, Valenzuela City, thus violating the Customs laws and regulations on bonded warehouses.
BOC also seized multi-million worth of counterfeit fabrics, clothes, designer bags, footwear and other electronic items consigned to Golden Rainbow Enterprises, which is a violation of the Intellectual Property Code (IPR) and the Optical Media Act.
The seized items would be put up for auction except those that were confiscated for violating the IPR law, which will be destroyed.
Smart begins beta testing of LTE powered mobile Internet
With the anticipated demand for better internet connection, Smart Communications, Inc. (Smart) has started the beta testing of its Long Term Evolution (LTE) broadband services.
Touted as the fastest fourth generation (4G) technology in the Philippines, the LTE technology can deliver up to 42 Mbps internet speed.
Gio Bacareza, Smart Broadband Internet and Data Services Head, said that the beta test represents a significant step towards LTE’s commercial availability.
"The beta test shows that we have never stopped working on our LTE network," said Bacareza.
"We launched it in Boracay last April, we made the first Metro Manila demo in June, and today it’s going to be put to its paces by potential customers," he added.
Initially, the LTE beta testing will be done in Metro Manila.
Subscribers who want to be the first to experience the next generation broadband speed of up to 42 Mbps should to sign up at www.smart.com.ph/bro/lte/sign-up.
The lucky few who will qualify will be issued special LTE/HSPA-capable USB dongles which they could use for free in several key areas in both North and South Metro Manila until February 13, 2012.
A total of thirty LTE sites have been fired up across the city for the beta test.
Beta testers are encouraged to report their experiences and findings to Smart in an effort to evaluate the experience and identify potential improvements.
For this, Smart has set up several touch points for beta testers. Participants will be contacted via email for instructions.
Smart has also provided LTE connectivity in the recently concluded Philippine Ad Congress in Camarines Sur.
The technology is much faster than wireless and wired connection, it is ideal for viewing, streaming videos and engaging in other media-rich online activities such as gaming and accessing web-based applications and programs.
LTE is widely recognized by telcos all over the world as the next big change in mobile Internet.
With the potential to change the surfing habits of individuals and the way business is conducted online, LTE has already been deployed in other parts of the world such as Japan (NTT DoCoMo), USA (Verizon), Europe(TeliaSonera), and Australia (Telstra).
"Smart has always been prepared to take on the latest technologies," Bacareza said.
"We were the first to come out with 3G, we are the first to deploy HSPA+, we are the first introduce LTE and we will continue to be the first in many more endeavors in the years to come," he ended.
Smart is among the first to have introduced LTE and HSPA+ in Asia.
Novatel Wireless 4G MiFi Intelligent Mobile Hotspot Earns Industry Honors
Novatel Wireless (NASDAQ: NVTL), a leading provider of intelligent wireless solutions, today announced that its line of 4G MiFi® Intelligent Mobile Hotspots is collecting some of the highest honors from the industry's most reputable organizations. The 4G MiFi Intelligent Mobile Hotspot has been recognized as a CES 2012 Innovations Award Honoree in the Computer Accessories category, PC World's top 25 100 Best Products of 2011 in the Networking/Wireless category and PC Magazine's Best Products of 2011 in the Mobile Devices, Cellular Modem category. These awards and honors add to the growing list of industry recognition and accolades for the MiFi Intelligent Mobile Hotspot.
The MiFi platform represents the industry's first Intelligent Mobile Hotspot; a new category of mobile broadband devices that lets users put their world of content, services and connectivity in the palm of their hand. The MiFi platform, now with 4G mobile broadband speeds, creates a personal cloud of high-speed Internet connectivity that can be easily shared between multiple users and up to five Wi-Fi enabled devices such as laptops, tablets, gaming devices and multimedia players. The MiFi Intelligent Mobile Hotspot serves as an intelligent, open platform capable of hosting advanced software applications and is flexible enough to address the continued evolution of mobile broadband.
"We are honored to have our 4G MiFi devices recognized by such widely respected organizations," said Rob Hadley, CMO of Novatel Wireless. "These awards add to a growing list of accolades showcasing the MiFi devices excellent performance, ease-of-use, added functionality and industrial design. We're proud to be recognized for our commitment to delivering innovative and best-in-class mobile broadband solutions to our customers."
Voice messaging services aimed at the masses
Amitabh Bachchan, one of Bollywood’s biggest movie stars, writes a blog and is widely followed on social media. The Big B, as he is affectionately called, started blogging in 2008 and has more than 1.5 million followers on Twitter.
And while some celebrities opt to let their managers write posts for them, fans can be sure that Bachchan’s posts on at least one media site are his – because they can hear his voice.
In July 2010, Bachchan started using Bubbly, a voice-based messaging service, and he now has just over 1 million followers in India. Each one pays 30 rupees a month, or about 60 cents, to hear his sonorous voice.
Social voice messaging, or voice microblogging via cellphones, is still in its infancy. Some companies see great potential, but many analysts remain skeptical.
So far, the markets where these voice messaging services have gained traction are big adopters of cellphones and text messaging, said Krishna Baidya, an industry manager for Asia-Pacific information and communication technologies at Frost & Sullivan, a market research company.
“Voice SMS technology is one-to-one communication and has existed for some time,” Baidya said, referring to short message service. “But voice-blogging, one-to-many, is newer.”
He said he thought this could be appealing for celebrities, politicians or spokespeople for well-known organizations “because it’s a good way to connect to your target audience. And for the user, they feel like, ‘They’re just talking at me.”’
Bubble Motion, based in Singapore, introduced Bubbly in India in May 2010. People who use the service can send a text message to followers that contains a link to a short audio message. The audio is played back as a voice call. This year, it expanded Bubbly to Indonesia, the Philippines and Japan and has been adding about 100,000 new users a week, said Thomas Clayton, the company’s chief executive.
The company now has about 12 million users in the four countries, but Baidya says he believes Bubbly needs to overcome several obstacles if it wants to become as popular as Twitter. According to an estimate by eMarketer, a digital marketing research firm, Twitter will have 21 million users in the United States alone by the end of the year.
“First, it’s not easy to find the person you want to follow,” Baidya said. “In Twitter or Facebook, you can search a person by name and once you find them, you can follow them; but here, to follow someone you need to know their phone number.”
The second shortcoming, he said, is that “you might not be able to follow someone you want if they’re on a different mobile operator network than you are.”
Finally, it is easy to filter out the things you do not want to look at on Facebook, even if you are following a lot of people. It is not as easy with voice messages.
“You could be getting a lot of junk that is not possibly of your interest,” Baidya said.
Clayton says he agrees that to be successful, social voice messaging needs to be available to any cellphone user, “as most people do not know what network their friends are on.” That would require Bubbly to reach deals with every telecom operator in each country.
In India, Bubble Motion is available on the country’s seven major operators, which allows the company to cover 85 percent of the cellphone subscribers in the country. Because smartphone use is growing rapidly, the company hopes to introduce by the end of the year applications that can be downloaded from the Internet for Apple’s iPhone">iPhone and devices usingGoogle"> Google’s Android system.
The applications would make it much easier to reach out to new customers in developed countries, where smartphone penetration is higher. According to recent research by Nielsen, the media analysis firm, fewer than 20 percent of Asia-Pacific cellphone users have smartphones, while smartphone penetration is 38 percent in the United States and 40 percent in Western Europe.
Pamela Clark-Dickson, senior analyst at Informa Telecoms & Media, a market research company, said that while services like Bubbly were successful in emerging markets, she was not convinced that there would be similar demand in developed markets.
“Voice-SMS platform providers have been trying to sell their platforms to mobile operators in developed markets, but they have not had as much success as they have in emerging markets,” she said. “This is primarily because the mobile operators in developed markets often don’t see a compelling business case for plain old voice-SMS in their markets – particularly as the penetration of smartphones, mobile broadband and the use of the mobile Internet and applications increases among mobile subscribers.”
“However, if voice-SMS/voice messaging vendors can develop applications that do provide significantly more utility than voice-SMS, like Yiip or QWiPS, then it’s possible that these applications could do better in developed markets,” she added. “But that’s what is untested at the moment.”
Yiip, a new app by the startup Qwip (no relation to Qwips), was introduced in San Francisco in September. Like Twitter, it limits the length of its messages to make them easily digestible – in the case of Yiip, 10 seconds for public messages and 25 seconds for private messages. It also allows users to add photos and sound effects. You can record the message on an iPhone">iPhone and share it with followers.
Private groups can be set up to keep messages between friends, and sound clips can be distributed on Twitter and Facebook.
Qwip Chief Executive Taylor Bollman said the app had been downloaded 60,000 times.
“We don’t yet have any celebrities or journalists,” he said, “but we will be pursuing this aggressively once we’ve incorporated the core functionality we envision for the app.”
The app is available for only the iPhone">iPhone, but the company plans to move to Android, the world’s most popular mobile operating system, and other mobile platforms.
Qwips, a New York startup, introduced a voice app this month that allows people to add 30-second voice messages to existing social communications like photos, email, SMS, tweets and Facebook posts.
The app allows users to “better express” themselves and add “emotion, personality and authenticity to those communications,” said Jeffrey Stier, founder and president of Qwips.
Clayton said Bubble Motion planned to expand Bubbly’s features, but he also said he did not believe photos or videos were necessary for social voice messaging. He said he believed that simplicity for the user was extremely important.
With many new entrants providing voice-messaging services, the competition is likely to intensify, with a race among vendors to attract users who can then attract other users.
“The more users you have, the more people use it,” Clayton said. “People are going to migrate toward a winner-takes-all, whether it’s us or them. We’re just trying to run as fast as we can and get as many users as we can to attract more and more celebrities, and we’ve got a pretty good snowball going right now.”
PLDT Group on track to attain 2011 targets
Telecom firm Philippine Long Distance Telephone Co. (PLDT) President Napoleon Nazareno said on Monday the PLDT Group is on track to attain its revised guidance numbers for the year.
“Our guidance this year is slightly lower than what was earlier stipulated. We are on track though as yearend approaches,” said Nazareno.
From a target of P40.5 billion in core net income for 2011, the phone giant may only reach P39 billion as revenues from its legacy businesses of voice and text continue to decline. Although there is a shift for data and broadband services, Nazareno said the transformation process will take some time before a 1-for-1 revenue substitution process can be achieved.
“We are still in the transformation stage but broadband seems promising; that’s why we continue to invest in our network for data and broadband services,” he said. The PLDT group posted P42 billion in core net income last year.
Service revenues for the group this year is likely to go down by 4 percent from P142.2 billion in 2010.
Nazareno, however, sees brighter prospects ahead despite intense competition. He expects 2012 as a “year of growth” as the group undertakes a capital-intensive network upgrade designed to handle new technologies.
“For next year, the industry will still continue to experience a tight competition but hopefully with new services that we have started to offer and will offer will pave the way for new growth areas. Overall, it will be a year of growth next year,” he said.
The wireless business will still be the group’s biggest revenue component, albeit noticeably lower. “Mobile revenues contribute roughly 55% to 60%. Revenue for next year should be stable, and if not, it should be growing slightly,” said the PLDT official.
PLDT is banking on its broadband service to sustain momentum growth. At end-September this year, the PLDT group’s total broadband and Internet revenues totaled P13.9 billion, up 10 percent year-on-year. The group’s broadband business now account for 13 percent of consolidated service revenues.
“Broadband will be higher. Now, it contributes to about between 12 to 15 percent and it may be higher next year,” said Nazareno.
The phone firm’s reported net income in the third quarter and first nine months of the year were down by 10% and 4%, respectively.
From January to September this year, PLDT’s reported net income stood at P30.6 billion from the P32 billion recorded in the same period last year. Core profit, which excludes currency and derivatives-related items, was also lower at P30.6 billion from P31.4 billion recorded in the same period last year.
Third-quarter net profit plunged 10% to P9.3 billion compared with P10.3 billion a year earlier. Core net profit also fell by 6% to P9.6 billion.
At end-September, PLDT’s service revenues declined by 3% to P103.2 billion, reflecting the combined effect of a 7% decline in combined cellular and fixed voice revenues and a 4% reduction in cellular and data revenues, including text.
Globe Business offers online leadership assessment quiz
Are you an Abraham Lincoln, a Napoleon Bonaparte, a Cleopatra or a Jose Rizal to your employees? Globe Business recently launched the online test “Globe Business Leader Quiz” to help entrepreneurs identify what kind of leader they are — and give suggestions on how to harness their unique qualities to run their business even better.
By just logging on to http://business.globe.com.ph/leader and answering the seven-item quiz, business owners could identify their leadership style.
The online test will give an assessment if the respondent is authoritarian, intolerant of incompetence, an intimidating or inspirational leader.
“There are no right or wrong answers to Globe Business Leader Quiz. The results merely show what particular qualities a business leader has. There are, of course, pros and cons to these qualities when running a business,” said Manny Aligada, head of corporate and SME segments of Globe Business.
“The quiz results then suggest how the business leader should tone down certain qualities and nurture others in order to maximize his leadership abilities. Best of all, it’s a fun and entertaining way to learn,” he said.
Aligada added that Globe Business offers a range of customized products and services that may be mixed and matched to suit a specific leadership style.
“Globe Business products and services are flexible and comprehensive enough to allow customization — they may be tailored to be the right fit not only to the needs, requirements and budget of a particular business, but also to fit the preferred leadership style of the entrepreneur,” he said.
“For example, an entrepreneur who functions best when mobile and conducting business away from the office might feel cranky when boxed inside office premises. He or she may best benefit from running the office through a mobile phone, online video conferencing, chat or e-mail,” he said.
“Or an entrepreneur might have tons of charisma that leaves employees spellbound — but he or she might not be used to communication ideas and instructions. So maybe that entrepreneur can start practicing communication skills by using an unlimited voice call subscription or chat,” he added.
Before viewing the results of the quiz, a very witty and entertaining video is shown to illustrate in a fun way the various types of leaders and how Globe Business can work for them.
Globe Business offers services that are designed to help large enterprises and small and medium enterprises (SMEs) operate more efficiently so business owners would have time to pursue their other passions in life.
Globe Business solutions help simplify business operations, manage communication costs, and serve clients efficiently. If entrepreneurs are able to run their business smoothly, then they would enjoy more things in life and be the leader they have always wanted to be.
The online quiz also features business solutions that Globe Business offers. Business Plus allows entrepreneurs save up to 50 percent on texts and 30 percent on calls. Companies can also control their communication expenditure with AutoloadMAX Corporate Edition, which helps manage employees’ prepaid cellphone accounts.
Sending e-mails and performing daily Internet requirements could be fuss-free as well with Globe Business’ reliable DSL (Digital Subscriber Line) Internet.
The Globe Business Leader Quiz also gives respondents the chance to win BlackBerry Bold 9900 or a prepaid phone kit. All they have to do is register and follow the promo mechanics.
Visit http://business.globe.com.ph/leader to take the Globe Business Leader Quiz and find out your leadership style.
Globe Business, the corporate arm of Globe Telecom, provides wireless and wireline solutions for a diverse set of industries, businesses, and commercial enterprises.
It assures SMEs of affordable, reliable and dependable services for all communication needs, both wireless and wireline solutions, to generate the highest possible profit at the lowest possible cost.
Smart tests latest Internet system in Metro Manila
Dominant carrier Smart Communications will begin public tests of its long-term evolution (LTE) Internet in Metro Manila ahead of the commercial launch of the “game-changing” technology by early next year.
In a statement, Smart said it would give some of its subscribers the chance to experience LTE technology in Metro Manila for several months.
The company’s first LTE tests were held in Boracay Island last April.
“The beta test shows that we have never stopped working on our LTE network,” said Gio Bacareza, head of Smart’s broadband business.
Aside from testing in Boracay, Bacareza said Smart also provided LTE connectivity at the recently concluded advertising congress in Camarines Sur.
The lucky few who will qualify for the Metro Manila tests will be issued special LTE-capable USB dongles, which they can use for free in several key areas in Metro Manila until Feb. 13, 2012.
A total of 30 LTE sites have been fired up across the city for the beta test.
Beta testers are encouraged to report their experiences and findings to Smart in an effort to evaluate the experience and identify potential improvements.
For this, Smart has set up several touchpoints for beta testers. Participants will be contacted via e-mail for instructions.
“As the only network of its kind in the Philippines, Smart LTE is several times faster than the average wireless and wired connections being offered today,” Bacareza said.
“Its low latency also makes it ideal for viewing streaming videos and engaging in other media-rich online activities such as gaming and accessing web-based applications and programs,” he added.
He said the wireless LTE dongles to be used for the tests will be capable of delivering connection speeds of as much as 42 megabytes per second-faster than most wireless or fixed-line connections in the Philippine market today.
“Smart has always been prepared to take on the latest technologies,” Bacareza said. “We were the first to come out with 3G… now we are the first to introduce LTE and we will continue to be the first in many more endeavors in the years to come,” he said.
Smart’s parent firm, Philippine Long Distance Telephone Co. (PLDT), is one of the country’s most valuable firms in terms of market capitalization. The company is owned by Hong Kong’s First Pacific Co. Ltd. and Japan’s NTT DoCoMo.
Last year, PLDT announced a plan to spend P67 billion in 2011 and 2012 to expand its network capacity in anticipation of an increase in demand.
GlobeTel borrows P5B from RCBC
Globe Telecom has signed a P5-billion loan agreement with the Rizal Commercial Banking Corp. (RCBC) to fund its capital expenditures for 2012.
The seven-year, P5-billion fixed-rate term loan facility with RCBC was the second loan agreement signed by Globe this year.
Taking advantage of the low interest environment to replace some loans with cheaper debt, Globe closed a seven-year, P7-billion loan with another local bank last February. This loan was to pre-pay debts and fund a portion of capital expenditures for 2011.
Recently, Globe announced it would invest $790-million to undertake a massive network modernization and IT transformation program over the next five years to boost capacity, improve network quality and meet the growing demand for bandwidth-heavy services such as broadband and mobile data.
Of this amount, $640-million will be spent in 2012 and 2013.
As of end-September 2011, Globe had a debt-to-equity ratio of 1.04. The company posted record-high revenue of P49.987-billion, with net income hitting P7.994 billion.
Smart begins beta testing of LTE-powered mobile Internet
Smart Communications, Inc. (Smart) is making available its Long Term Evolution (LTE) mobile broadband service for public beta testing in 30 Metro Manila sites until February 13, 2012.
Smart is among the first to have introduced LTE and HSPA+ in Asia. Its LTE network is capable of speeds of up to 76Mbps.
As the only network of its kind in the Philippines, Smart LTE is many times faster than the average wireless and wired connections being offered today. Its low latency also makes it ideal for viewing streaming videos and engaging in other media-rich online activities such as gaming and accessing web-based applications and programs.
LTE is widely recognized by telcos all over the world as the next big change in mobile Internet. With the potential to change the surfing habits of individuals and the way business is conducted online, LTE has already been deployed in other parts of the world such as Japan (NTT DoCoMo), USA (Verizon), Europe (TeliaSonera), and Australia (Telstra).
Smart’s beta test represents a significant step towards LTE’s commercial availability, stressed Smart Broadband Internet and Data Services Head Gio Bacareza.
“We have never stopped working on our LTE network,” Bacareza said. “We launched it in Boracay last April, we made the first Metro Manila demo in June, and today, potential customers are going to test it.”
Smart has also provided LTE connectivity in the recently concluded Philippine Ad Congress in Camarines Sur.
By signing up at www.smart.com.ph/bro/lte/sign-up anyone may be selected to be the first to experience next-generation broadband speeds of up to 42Mbps on their own laptop or desktop computers.
Those who will qualify will be issued special LTE/HSPA-capable USB dongles which they could use for free in several key areas in both North and South Metro Manila until February 13, 2012.
A total of thirty LTE sites have been fired up across the city for the beta test.
Beta testers are encouraged to report their experiences and findings to Smart in an effort to evaluate the experience and identify potential improvements.
For this, Smart has set up several touch points for beta testers. Participants will be contacted via email for instructions.
“Smart has always been prepared to take on the latest technologies,” Bacareza remarked. “We were the first to come out with 3G, we are the first to deploy HSPA+, we are the first to introduce LTE and we will continue to be the first in many more endeavors in the years to come.”
Verizon to unleash fast 4G on Alaska, Juneau maybe
If Verizon succeeds in bringing 4G broadband to Juneau, wireless users may see data speeds jump tenfold.
The current maximum speed for cellular data in Juneau is 3G or third generation wireless — about one half to three megabits per second of download speed. This is good for most Internet uses, email, browsing or streaming movies. However, data users who hate waiting for a web page to download or users with high bandwidth needs, like online gamers, may want something faster. Verizon plans to bring that speed to Alaska in the form of wireless 4G LTE networks — networks that are 10 times faster than 3G, according to Verizon.
“Verizon Wireless is actively working to create the fastest, most reliable mobile network in Alaska and that it will be 4G LTE,” said Scott Charlston of Verizon Wireless Public Relations.
Charlston did not say if Juneau would see 4G service soon.
“Building a 4G wireless network in Alaska is a challenging proposition and we will have more information about specific coverage areas as we get closer to launch,” he said.
However, as recently reported, WesTower Communications brought before Juneau’s Planning Commission on Nov. 8 plans made for Verizon for construction of a 119-foot broadband tower 90 feet off Mendenhall Loop Road.
Verizon is keeping the launch date of its network secret at this time, Charlston said.
4G LTE stands for Fourth Generation wireless Long Term Evolution.
Verizon claims its 4G service will allow customers to download a song in four seconds or upload a photo in six.
Verizon 4G LTE is currently available in 179 cities, and the firm plans on expanding to cover two-thirds of the U.S. population by mid 2012, according to Verizon.
Currently, calls from Verizon customers in Juneau are routed through Alaska Communications Systems towers.
AT&T and T-Mobile merger doubts deepen
AT&T’s proposed $39bn takeover of Deutsche Telekom’s T-Mobile USA may have been dealt a knockout blow by the decision of the Federal Communications Commission’s chairman to seek an administrative review of the deal, some analysts suggested on Wednesday.
The announcement of the planned review triggered a war of words between AT&T and FCC officials, highlighting the animosity between the two sides against the backdrop of a growing level of distrust between the government and US business.
“Ever since the Department of Justice filed in August to block AT&T’s deal to acquire T-Mobile, the deal was on life support,” said Craig Moffett of Bernstein Research in a note to investors. “Yesterday, the FCC disconnected the respirator.”
Mr Moffett, who had previously put the odds of the deal being completed at about 10 per cent, added: “We believe that it is now time for AT&T to concede defeat and withdraw the merger.”
Christopher King and David Kaut of Stifel Nicolaus said the unusual move to subject the proposed transaction to further review “makes it even more unlikely the merger will close – including through a settlement – and puts particular pressure on T-Mobile to take a fresh look at its risks and choices”.
Administrative reviews of such deals are highly unusual. The decision by FCC chairman Justin Genachowski to ask his three fellow commissioners to vote for such a move is widely seen as signalling a high level of opposition. FCC officials contend the deal is not in the public interest and would reduce competition.
The last time the agency sought an administrative review was in 2002 on the proposed merger of EchoStar and DirectTV – a deal that the companies eventually abandoned before it went to court.
In a conference call with reporters, FCC officials said the agency had concluded that the proposed deal would significantly diminish competition and result in an unprecedented concentration in the wireless industry in 99 out of the top 100 markets.
They also dismissed AT&T’s arguments that the transaction would enable the company to expand its rollout of a new 4G wireless broadband network based on a technology called LTE services, or that it would create any new jobs in the US. Officials said the deal would probably result in significant job losses.
In an unusually forthright public comment, a senior FCC official said: “The record clearly shows that – in no uncertain terms – this merger would result in a massive loss of US jobs and investment.”
That statement came after AT&T had earlier described the FCC chairman’s action as disappointing. AT&T said it was “yet another example of a government agency acting to prevent billions in new investment and the creation of many thousands of new jobs at a time when the US economy desperately needs both”. The company added: “At this time, we are reviewing all options.”
Jim Cicconi, AT&T senior executive vice-president of external and legislative affairs, later took further issue with the commission. “The FCC itself recently claimed that their $4.5bn broadband universal service fund will create 500,000 jobs over the next six years,” he said.
“Yet, somehow in our merger, the FCC staff concluded that a far greater investment in broadband – $8bn – plus firm commitments on job preservation and enhancement, will instead result in ‘massive loss of US jobs and investment’. This notion, that when government spends money on broadband it creates jobs but when a private company spends money it doesn’t, is clearly wrong on its face and raises questions about the credibility of anyone at the FCC who would make such a claim.”
The strident tone of the comments made by both AT&T and FCC officials surprised some analysts. They noted that, while neither AT&T nor T-Mobile USA appear ready to concede defeat, there are also genuine political costs of pursuing the case to the bitter end. “After all, AT&T will have to do business with the DoJ and the FCC in the future,” said Mr Moffett.
On a related matter, the FCC officials said they would circulate a draft order that would approve, with conditions, AT&T’s purchase of valuable spectrum from Qualcomm, the US-based mobile phone chipmaker.
Spectrum Clash Builds Around Bionic Implants
The battle over scarce radio spectrum that has embroiled the mobile broadband world even extends to a little-known type of wireless network that promises to reconnect the human nervous system with paralyzed limbs.
At its monthly meeting next week, the U.S. Federal Communications Commission will consider whether four sets of frequencies between 413MHz and 457MHz can be used by networks of sensors implanted in patients who suffer from various forms of paralysis. One intended purpose of these MMNS (medical micropower network systems) is to transmit movement commands from a sensor on a patient's spinal cord, through a wearable MCU (master control unit), to implants that electrically stimulate nerves. The same wireless technology might be used in devices to restore sight or hearing.
However, broadcast engineers are fighting the proposed rule that would allow this, saying TV and radio stations already use one of the bands to broadcast live from news events and this might interfere with the body networks. The main proponent of MMNS, the nonprofit Alfred Mann Foundation (AMF), says tests have proved that these systems can cope with interference as long as all four blocks of spectrum are available.
At the Nov. 30 meeting, FCC staff will present its proposed rules for MMNS in the spectrum and turn them over to the commissioners for a vote and possible modifications. If approved, the rules would go into effect as soon as they are published in the Federal Register.
Frequencies are a battleground
As mobile devices drive up demand for wireless data networks, carriers, broadcasters and technology giants are fighting over limited radio spectrum. Access to frequencies is at the center of complex disputes over would-be hybrid network operator LightSquared, AT&T's proposed acquisition of T-Mobile USA, and unlicensed "white spaces" between TV stations. Though recent advances have led to networks that use spectrum more efficiently, faster connections do require more spectrum. The FCC's National Broadband Plan calls for allocating 500MHz of additional frequencies to mobile broadband over the next decade.
Whereas most of the spectrum debates have cited demand for mobile video and social networking applications, in the rancor over MMNS, there arguably is much more at stake. The microstimulator implants being developed by AMF could be used to treat neuromuscular disorders including spinal-cord and brain injuries, multiple sclerosis and cerebral palsy. The use of wireless networks between implants and MCUs could eliminate the need to implant trouble-prone networks of wires underneath a patient's skin, said AMF CEO David Hankin.
FES (functional electric stimulation) has been used for many years to cause unresponsive muscles to contract, Hankin said. It's one application of the merging of electronics and the human body, called bionics. The new microstimulators are about the size of a small fuse, so they can be implanted right next to a nerve, under local anesthesia, he said. Because of its greater precision, the new technology can gather more accurate input about how the patient wants to move and communicate that to specific nerves. The focused electrical charges hurt less than earlier ones, so patients who have sensation in their disabled limbs feel a tingling sensation at most, he said.
The MCU, which picks up and processes inputs from the spine or another source and passes it on to the microstimulators, can be carried in a backpack now, Hankin said. Eventually, the MCU may be as small as a cellphone, or even be built into the patient's own cellphone. Though the same type of technology can be used in physical therapists' offices, miniaturization and wireless links make it more practical for use as people go about their lives, he said.
Away from wired networks
Today, some patients have networks of microstimulators linked by wires implanted underneath their skin. This requires two or three days of operations and can lead to infections that travel down the wires, leading to another long operation to replace the wires, Hankin said. Wireless networks allow doctors to bypass that technique, he said.
MMNS requires very low frequencies in order to communicate with implants through the patient's skin, Hankin said. AMF looked to the 413-457MHz band, despite the fact that others were already using it, because it had the ideal characteristics for the job and AMF couldn't afford the billions that exclusive spectrum licenses cost at auction, he said.
The three lowest sections of the band are used by the federal government for defense radar and other purposes. The Department of Defense will allow MMNS in those bands, and the NTIA (National Telecommunications and Information Administration) is coordinating with the FCC on its own review of them, according to Hankin.
But AMF wanted one more band, 451-457MHz, to make sure that MMNS would have spectrum to use in situations where the other three bands were occupied. It's intended for use mainly in rural areas, according to Hankin. This band is home to many wireless devices, including land mobile radio (also called walkie-talkies) and broadcasting trucks that send live feeds back to their stations.
Broadcast engineers and others say MMNS need to stay out of this band. The Society of Broadcast Engineers (SBE), a smaller group called Engineers for the Integrity of Broadcast Auxiliary Services Spectrum (EIBASS), and walkie-talkie pioneer Motorola have all filed statements with the FCC opposing AMF's proposal. They said the foundation hadn't established that MCUs or implants could overcome interference from those nearby devices.
A different kind of interference
Broadcasting trucks using RPU (Remote Pickup) systems can transmit at thousands of times the power of MMNS, from antennas relatively close to the ground, said Dane Ericksen, co-chairman of EIBASS. AMF isn't asking the FCC for any legal protection from interference, saying it will coexist with other uses, but Ericksen thinks the MMNS proposal may be a Trojan horse.
"Neither SBE nor EIBASS have opposed this on the grounds that it will cause interference to RPU operations," Ericksen said. "Our concern is that RPU operations will wipe out MMNS, at which point the FCC will say, 'Oh my goodness, this is a medical application, and we're going to put restrictions on where RPUs can operate.'"
If the FCC were to restrict use of the frequencies around health-care facilities, that might include retirement homes and many other locations, he believes.
"That would be a real burden, to force all RPU licensees to identify every health-care facility in their market and make sure they don't do any remotes within a half-kilometer, maybe, of that," Ericksen said.
AMF said tests by the DOD and defense contractor Aerospace Corp. proved that there are adequate mechanisms in MMNS to avoid interference. The medical devices can shift to another channel where there is less interference, and if there are no free channels, the system can carry out a "graceful shutdown." That would include an audible or vibration alert for the wearer, Hankin said.
Opponents say those tests didn't include a simulation of a radio transmitting continuously at high power for a long period of time, as a remote broadcast would. Hankin said he believed that was included.
In any case, the nightmare scenario of someone falling to the ground because interference caused his MMNS to shut down is not on the horizon, Hankin said. Because of the complexities of human gait, patients won't rely on MMNS to walk for many years, he said.
Globe Cites Advance Technology Of Its $790-M Network Modernization Program
Globe Telecom’s latest $790 million network modernization will future-proof the company so it can use the most advanced 4G technologies and be truly customer-centric, says chief technical adviser Robert Tan.
“Our modernized network and IT systems will address all current needs of our customers, giving them an unparalleled experience to set Globe apart from competition,” he stressed. “Our plans are ambitious, yet necessary (for our goal).”
The network upgrade will boost Globe’s use of fiber optics by 50% significantly increasing capacity, improve network quality, and meet the growing demand for bandwidth-heavy services such as broadband and mobile data.
This will also improve network resiliency and protect traffic to ensure uninterrupted services and keep customers always connected.
In addition, the company’s technical team can now respond to network-related issues more quickly regardless of location.
Modernization comes alongside Globe’s IT transformation initiative to put in place a standards-based architecture that will respond to future business requirements. Once the new system is in place, Globe Stores and call centers can immediately respond to customer queries and service requests.
Globe will also establish a Joint Innovation Center (JIC) with its technology partner, Huawei to learn network best practices and tap into the latest development of 17 Huawei global Research and Development centers.
“Our network is the backbone for delivering our products and services. By modernizing, we can better provide customer needs and maintain our competitive position in the market,” Tan commented.
Aside from benefitting subscribers, the new network will also use environment-friendly “green” solutions to reduce the company’s carbon footprint, boost energy savings, and reduce power consumption.
D-Link's Boxee Box Adds EchoStar's Slingbox App
D-Link said its Boxee Box for accessing Internet video and other content now supports EchoStar Technologies' SlingPlayer for Connected Devices application, allowing the $179 device to act as a second set-top box -- that's located anywhere there is a high-speed broadband connection.
When used with a Slingbox Solo or Pro-HD device connected to a cable or satellite set-top, the SlingPlayer app lets Boxee Box users watch live TV, change channels, and play back DVR recordings and video-on-demand.
"The addition of SlingPlayer greatly expands the content and capabilities of the Boxee Box by D-Link and brings today's connected home to yet another level," D-Link North America associate vice president of marketing Daniel Kelley said in a statement. "Missing your favorite show or game is a thing of the past. With SlingPlayer, people can easily enjoy and access their TV content with the ultimate convenience, from changing the channel to controlling the DVR."
The Boxee Box by D-Link includes an SD card slot, two USB ports, optical digital audio, HDMI output, 802.11n wireless and an Ethernet port. The Boxee software provides access to services including Netflix, Vudu, Pandora and OpenFilm, as well as "all the rest the Internet has to offer that will never make it to broadcast TV," according to Boxee, and provides integration with Facebook and Twitter.
Separately, New York-based Boxee is releasing a $49 USB-based dongle for the D-Link Boxee Box and other devices that will let users watch over-the-air TV. Slated to be available in January 2012, the USB dongle includes an antenna and OTA tuner.
TV tuners are already standard on digital television sets. However, Boxee says, the dongle will let it add features such as displaying how many people (and which of your friends) are watching a specific show in the channel listings. In the future, according to Boxee, the software also will be able to associate what you're watching live with what's available on the Internet to provide recommendations.
Boxee claims it has more than 1 million users. The company's investors include General Catalyst, Spark Capital and Union Square Ventures.
Hello 4G: Telstra High Speed Handsets Hit Q1?
"Customers snapped up 4G dongles on the day, and look forward to the first 4G handsets coming into store in the first quarter of next year." wrote Linda McGregor, Telstra Innovation, Products and Marketing.
Previously, the telco said 4G handsets would run on Next G network in the first half of next year, but failed to be more specific any further with a date.
The telco is the first to deploy 4G Long Term Evolution broadband technology on Next G and hopes to roll it out nationally to 80 regional centres by the end of the year.
4G operates across the dual mode LTE/HSPA+ mobile broadband devices operate across dual 1800MHz and 850MHz spectrum bands allowing speeds as high as 150 megabits per second.
4G also lets you do more things simultaneously on your mobile device.
Telstra's first 4G base stations using Long Term Evolution (LTE) technology, has been switched on in metropolitan areas and main cities including Sydney, Perth, Melbourne and Brisbane.
The HTC 4G, revealed in September, will be among Telstra's first smartphones boasting the faster web speeds, which is almost twice as fast as the current model HTC 3G smartphones like the Desire S or Sensation, meaning video streaming or movie downloads will be twice as fast.
The HTC will run 4G but will also operate 3G in areas where 4G is not available.
HTC 4G has a massive a 4.5-inch display, a 1.2GHz dual-core CPU and runs Android Gingerbread.
There are other devices including Samsung's Galaxy S II 4G, LG Optimus 4G all in the pipeline.
But unfortunately, a 3G ready phone like a HTC Desire, iPhone or BlackBerry will not run on the 4G spectrum, although 4G capable devices will run 3G.
In other words, multimedia lovers will have to trade in their current model for a 4G capable smartphone is they want to take advantage of the increased network capabilities and ditto for tablets.
Vodafone and Optus are also rolling out 4G LTE technology, with the latter expected to go live in regional areas in April 2012, meaning it will be hot on Telstra's 4G tail.
Sprint launches 4G Fixed Business Access for MVNO customers
US operator Sprint Wholesale Solutions Group has launched 4G Fixed Business Access, a business service that offers high availability, secure connectivity that can turn any area into an office and can enable enterprises stay connected during wireline outages. Sprint Wholesale MVNO customers have the power and speed of 4G Fixed Business Access to take utility of offering improved access and enhanced connectivity options. Sprint Wholesale customers determine the equipment that is suited for their service, including a combination of a 4G USB Data Card coupled with a router. Combining Sprint 4G mobile broadband services with CradlePoint's MBR1200 allows businesses connect to the internet. The service works with single-mode 4G or dual-mode 3G/4G USB modems. Sprint Wholesale Solutions currently offers Sprint 3G/4G USB Modem 250U by Sierra Wireless which can be coupled with Cradlepoint MBR 1200 Broadband Router to deliver the 4G Fixed Business Access service. Small branch or remote offices can access the power and security of a router and convenience of a wireless connection to the internet, without on-site IT management. Sprint Wholesale MVNO customers can deliver corporate security policies, failover technology and 3G/4G access for virtually anytime internet connectivity to small, remote and temporary offices. Sprint 4G averages download speeds between 3-6 Mbps, with bursts of over 10 Mbps and is available to 120 million people in 71 markets across the United States, including but not limited to Atlanta, Boston, Chicago, Dallas, Denver, Houston, Los Angeles, Miami, New York City, San Francisco and Washington, DC.
wi-tribe pocket modem
With an aim to provide internet users the opportunity to access richer broadband and to further enhance their online experience, wi-tribe has launched the Pocket Modem, a convenient plug ‘n play device that allows users to connect to the internet from absolutely anywhere, saysa press release.
Through its easy-to-carry, portability feature, the Pocket Modem adds immense value to the experience of internet users. It also delivers a perfect solution with its attractive packages. Without the need for electricity, this USB powered device plugs right into laptops and PCs, giving users absolute flexibility to connect as and when needed. It comes equipped with a USB cable and is compatible with both Windows and Macs.
Globe to upgrade half of cell sites
Subscribers of Globe will start to feel some changes by the middle of next year.
To increase capacity and improve network quality, Globe Telecom Inc. yesterday said it will convert 50 percent of its cell sites into fiber-optic, making them 3G-enabled and capable of using the most advanced 4G technologies such as HSPA and long-term evolution (LTE).
The move would also address growing demand for bandwidth.
Jesus Romero, head of Globe Business, said half of its 6,000 base stations will be converted into fiber-optic to improve capacity by next year, adding that Globe subscribers will start to feel the improvement in quality of signals by June 2012.
"There’s a dramatic increase in data now. Subscribers use 12 gigabits per day. In the next three years we anticipate that it will increase to 16 gigabits per day. The network is a bit stressed, so we will (upgrade) the network to address the new behavior of subscribers," Romero said.
The network upgrade will benefit both Globe’s end consumers and enterprise clients.
Romero said that, for consumers, the upgrade will address the issues on drop calls, delay in SMS and slow data connection.
Romero said that enterprise clients use more than a third of the network, so the upgrade to fiber-optic would benefit specially the BPO clients, allowing them to expand in more areas in the Philippines.
Aside from an optimized and resilient network, the modernization initiative will enable the company’s technical team to respond to network-related issues quickly regardless of location, and efficiently address them at a much faster pace, ensuring service availability at the soonest time possible.
Once the new system is in place, Globe will have an integrated front-end application that will allow Globe Stores and call centers to respond quickly to customer queries and service requests.
"We envision an unparalleled customer experience that will truly set Globe apart from competition. The modernized Globe network and IT systems will address all current needs of our customers, at the same time, have the capacity and capability for more sophisticated use of mobile and broadband technologies.
Our plans are ambitious, yet necessary step to help sustain our momentum towards being a customer-centric organization," explained Robert Tan, chief technical adviser of Globe.
Globe will also establish a Joint Innovation Center (JIC) with its technology partner, Huawei, that will provide opportunities for Globe to learn network best practices and tap into the latest developments of the 17 research and development centers of Huawei globally.
"This is a milestone not only for Globe but for the rest of our growing subscriber base. Our network is the backbone that enables quality delivery of our products and services.
By modernizing our network infrastructure and its key elements, we are in a better position to efficiently and effectively provide the needs of our customers, as well as maintain our competitive position in the market," said Tan.
Globe set aside $790 million for its modernization program in the next five years to improve its services.
As of the end of the first three quarters, the company total capital expenditures had reached nearly P13.9 billion, driven by the continued investments in its broadband and mobile networks, and were lower than last year’s spending of about P15.8 billion.
Globe mobile subscribers stand at 29.1 million, 15 percent higher compared last year same period, while broadband subscribers stood at 1.4 million subscribers.
Comcast’s holiday gift to broadband users: a wireless gateway
Comcast is hoping to drive more broadband usage this holiday season, and it’s giving away free 802.11N wireless router to do so. The cable company announced Monday that new customers of its upper-tier broadband services will be provided with the new Xfinity Wireless Gateway, which combines a cable modem, WiFi router and voice-over-IP (VOIP) adaptor all in one box.
Customers need to sign up for Comcast’s Blast!, Extreme 50 or Extreme 105 broadband plans to qualify for the promotion, which means they will be signing up for broadband services that have at least 25 Mbps downstream. But those broadband bundles don’t come cheap — Blast starts at about $53 a month, with Extreme 105 broadband services costing an introductory $105 a month for the first 12 months. (Prices for Extreme 105 increase to $130-$150 after the first year.)
For Comcast, the wireless gateway promotion is aimed at reaching a growing number of connected devices that are popping up in the home, whether it be mobile handsets connected to the home network, tablets or even WiFi-enabled connected TVs and Blu-ray players. Standardizing all its customers on a single home gateway can also help reduce the number and severity of calls that come in from customers, some of whom are having problems with WiFi routers that they’ve purchased and installed themselves. Of course, Comcast isn’t the first operator to make home gateways available for free: AT&T has made free wireless gateways available as part of its bundles for years.
Cable operators are increasingly recognizing broadband — not TV — services as differentiators, and a number of them are experimenting with pitching high-speed Internet as their core service offering. As more service providers approach the industry from a broadband-first perspective, we expect more deals like Comcast’s free wireless gateway as a way to make it easier for them to sign up for Internet services.
A wider net
President Benigno Aquino III, returning from a conference of the Association of Southeast Asian Nations in Bali, said last Saturday that the fight against corruption and electoral sabotage had just begun in earnest.
He said that the filing of charges against former President Gloria Macapagal-Arroyo was just the start of the prosecution of those who had committed graft and corruption and electoral fraud in the past. And he rallied the people behind his administration’s efforts to make the guilty accountable.
While Arroyo is the biggest fish that the Aquino administration is going after, the anti-corruption and anti-fraud effort should not be limited to her. The administration has to cast a huge and wide net, and go also after her accomplices and other minor officials who allegedly committed corrupt and fraudulent acts.
There is the case of former Justice Secretary Hernando Perez, who allegedly received a $14-million “commission” to approve the $470-million energy deal with Industrias Metalurgicas Pescarmona Sociedad Anonima (Impsa) in 2001, just four days after Arroyo took over the presidency. Whatever happened to this case?
There is the case of then Chairman Benjamin Abalos of the Commission on Elections who was found by the Supreme Court in 2004 to have committed “violations of law and glaring abuse of discretion” in awarding a billion-peso contract to Mega Pacific for the supply of automated counting machines. The Court ordered the government to determine which officials were involved and liable for the anomalous contract, but up to now nothing has been done and all those involved are scot-free.
Abalos also figured in the anomalous $329-million ZTE-NBN broadband project which was overpriced by $130 million. Abalos allegedly told then Neda Director-General Romulo Neri, “Sec, may 200 ka dito” (Secretary, you will get [P]200 [million] for this). On the face of it, this was attempted bribery, and yet nothing was done in this case. Rodolfo “Jun” Lozada, Neri’s consultant, said Arroyo and her husband Mike were the masterminds of the NBN-ZTE deal. After the media and politicians raised a great hue and cry over the stinking deal, she cancelled it, but no one was prosecuted for the irregularity.
There is the case of the diversion of P728 million in fertilizer funds to bankroll Arroyo’s presidential election campaign. The Senate blue ribbon committee found that Agriculture Undersecretary Jocelyn “Joc-Joc” Bolante, an officer of Rotary International and a close friend of First Gentleman Mike Arroyo, was the “architect” of the fund diversion but he did not heed the subpoenas of the Senate investigating committee and instead was allowed by the Arroyo administration to leave for the United States. The Arroyo administration did not cancel his passport but the US government cancelled his visa and detained him in a prison in Wisconsin. Bolante later returned to the Philippines and ran for government office but was defeated. The Senate blue ribbon committee recommended the filing of charges against Bolante and former Agriculture Secretary Luis “Cito” Lorenzo.
The 5.1-kilometer Diosdado Macapagal Boulevard was constructed in 2002 at a total cost of P1.1 billion, arguably one of the most expensive roads in the world. It has been alleged that there was an overprice of P600 million. No one was held accountable and investigated for this expensive project which, for the billion pesos that was spent on it, might as well have been paved in gold.
Other major plunder cases against Arroyo are the alleged misuse of more than P550 million from the Overseas Workers’ Welfare Administration from 2003 to 2004 and the misuse of P325 million in intelligence funds of the Philippine Charity Sweepstakes Office.
But the more serious cases are the electoral sabotage charges regarding the 2004 presidential election and the 2007 senatorial election. The other cases involved only the theft of the people’s money. The electoral cases involved the subversion of the people’s will, the right of the people to freely express their choice in elections.
President Aquino said the anti-corruption campaign has begun in earnest. Let us see faster action from government officials, and, as he has suggested, some earnest and sustained help from the people. After all, in these cases, it was the people’s money and vote that were stolen.
TechNavio Announces the Publication of Its Report - Global DSL Network Equipment Market 2010-2014
TechNavio today launched its report, Global DSL Network Equipment Market 2010-2014, which is based on an in-depth study of the Americas and the EMEA and APAC regions. The report aims to aid decision makers understand the present and the future growth of this market.
Commenting on the report, an analyst from TechNavio’s Hardware team said, “More than 65 percent of broadband customers use DSL, which will have a tremendous impact on the Global DSL Network Equipment market in the future.”
According to the report, many developing countries have low penetration in fixed-line broadband. Countries such as India, Russia, Vietnam, Ukraine, and Philippines witnessed a year-on-year growth of more than 20 percent in their broadband subscribers. Most of the fixed-line broadband in these countries is ADSL creating significant demand of DSL network equipment in these countries.
The study was carried out using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key players.
TechNavio is the market research platform of Infiniti Research publishing periodic reports on multiple areas of niche and emerging technologies. For further information, please visit http://www.technavio.com/content/global-dsl-network-equipment-market-2010-2014. Follow us on Twitter @Technavio for daily industry updates.
Liberty Telecoms posts losses on higher spending
San Miguel Corp.’s wireless Internet arm Liberty Telecoms Holdings Inc. continued to report an acceleration in spending as it grew its user base and network reach.
In a disclosure to the Philippine Stock Exchange, the listed firm said it widened its losses to P1.13 billion for the January-to-September period from P741 million the previous year due to higher expenses attributed to its growing operations.
For the third quarter alone, the company, which operates mobile Internet brand Wi-Tribe, posted a net loss of P415.92 million, up 26 percent year on year.
Expenses for the third quarter rose 27.93 percent to P530 million “as a result of the group’s efforts to accelerate subscriber acquisition, ongoing infrastructure project and intensified building-up of its commercial operations.”
The nine-month losses were attributed to a 71-percent increase in expenses to P1.48 billion in the nine-month period.
Despite the losses, the company said its revenue growth—about 241 percent to P389 million for the nine-month period and 85 percent to P145 million in the third quarter—was cause for optimism, especially since the uptick in spending has started to pay off.
“Wi-Tribe Telecoms continues to acquire more subscribers for its postpaid wi-max broadband services,” the company said in the disclosure.
“The telecom business requires huge infrastructure investments that cannot be recouped overnight,” Liberty Telecoms treasurer Paul Bernard Causon said in a separate statement.
“We are still in the process of building our customer base but we are committed to making the necessary investments as the need arises because we intend to be a serious contender in this business,” he said.
Liberty Telecoms officials earlier this month said its subscriber base had grown to 80,000 users at the end of the third quarter. This was up from about 30,000 at the end of last year.
In a bid to attract even more users, Wi-Tribe recently doubled its maximum Internet connection speeds for its postpaid subscribers without increasing service rates.
The company also recently introduced its first prepaid wireless Internet offering to cater to more budget-conscious subscribers. The company expects to have at least 100,000 users by the end of 2011.
Liberty Telecoms is a joint venture between diversifying conglomerate San Miguel and Qatar’s QTel, which has operations in several parts of the Asia-Pacific and the Middle East.
PLDT finally rolls out fiber connection to homes
After a two-year delay, telco giant PLDT has formally announced that it has started offering direct-to-the-home (DTTH) fiber optic data service in exclusive subdivisions in Metro Manila.
Called PLDT Fibr, the new service is the first in the country to use fiber optic cables to deliver broadband services to homes with speeds of up to 100Mbps. With a 100Mbps connection, it will take only one minute to download a full-length movie, PLDT said.
The fiber connection was supposed to have been launched two years ago by PLDT but the company did not say the reasons for the delay.
The DTTH service is available to residents in Forbes Park and Urdaneta Village in Makati, Palms Pointe in Alabang, Wack Wack Village in Mandaluyong, and all Valle Varde villages in Pasig.
The PLDT plan comes with an Optical Network Unit (ONU) modem that connects to a fiber optic cable, according to PLDT head of retail business group Dan C. Ibarra.
Residents can avail the unlimited Fibr monthly plans at P3,500 for the 8Mbps plan, P6,500 for the 15Mbps plan, and P20,000 for the 100Mbps plan.
FTTH uses fiber optic technology which transmits data via light signals sent through hair-thin strands of pure glass. Instead of the usual copper going to the homes of customers, thin fiber optic cables will be used.
The new platform will be able to deliver simultaneously voice, video and data services at much higher speeds and larger capacities than DSL or cable technologies.
Prior to its launch, initial tests done by PLDT have showed that an FTTH-enabled computer posted download speeds of up to 94.86 megabits per second (mbps) and upload rates of 69.39 mbps.
At those speeds, it would take only one second to download a 5Mb mp3 file, 3 seconds for a 35Mb video clip and only one minute to download an 800Mb movie.
Study says mobile broadband devices to pass 525m by 2016
The global number of mobile broadband devices will rise to exceed half a billion units over the next five years, according to new research from Strategy Analytics.
By 2016, the installed customer base is expected to reach more than 525 million products, with external modems tipped to enjoy steady growth over the forecast period.
Increasingly flexible tariffs, reduced device costs, a surge in the number of mobile hotspots and the shift to Long-Term Evolution (LTE) mobile broadband technology were all cited by the market intelligence firm as drivers of this expansion.
However, it is believed embedded modems will see slower growth due to the need for additional data services and the higher cost of installing cellular capabilities.
Andrew Brown, director of wireless enterprise strategies at Strategy Analytics and author of the report, said the company "anticipates continued growth in mobile broadband devices as operators improve user segmentation, such as flexible plans and content bundling all underpinned by LTE".
He described mobile hotspots as a "highlight" in the mobile broadband sector thanks to their ability to connect up to five devices to the internet at once via a single data plan.
"The growth in the number and variety of Wi-Fi enabled devices has considerably increased the value proposition of these mobile hotspot devices," he added.
Illustrating the rising prevalence of mobile hotspots, network operator 3 Mobile recently unveiled its Mobile Broadband Wi-Fi hub, which converts existing dongles into a Wi-Fi hotspot.
Officially known as the ZTE MF10 Dongle Adapter, the hub allows people to share their 3G service via Wi-Fi and also features an Ethernet socket that means it can be used as a router for a traditional fixed-line broadband connection.
Several dongles, including the Huawei E122, E1550 and E156G, will be compatible with the gadget, which is set to hit the market in the near future.
SkyCable Leads Growth At ABS-CBN
The consolidated net income of ABS-CBN Corporation (“ABS-CBN” or the “Company”) (PSE: ABS, ABSP), the country’s largest multimedia conglomerate, registered P2.2 billion for the nine months ended September 30, 2011.
ABS-CBN delivered consolidated revenues of P21.1 billion from advertising and consumer sales, a 15% decline compared to a year ago. Less the revenues from political advocacies and
advertisements in 2010, consolidated revenues in the nine months of 2011 declined by 3% year-on-year.
ABS-CBN’s advertising revenues reached P13.4 billion, a decline of 21% from a year ago. Minus the revenues from political advocacies and advertisements in 2010, advertising revenues
declined by 4% year-on-year. This decrease is attributable to a slowdown in advertising spending by corporates.
Consumer sales for the nine months of 2011 amounted to P7.8 billion, posting a 1% decline from a year ago. ABS-CBN Global revenues declined by 11% year on year in peso terms due to
the decline in subscribers and the appreciation of the Philippine peso against the US dollar. Meanwhile, Sky Cable continues to contribute positively with revenues increasing by 10% to
P3.2 billion. This is mostly driven by the increased take up of its broadband service subscriptions which increased by 21% year-on-year.
Total operating and other expenses dropped by P1.4 billion or 8% year-on-year to P16.0 billion. This was partly a result of lower cost of sales and services and general and administrative
expenses (GAEX) as the company continued its effort to manage and control expenses. The decline in both expense accounts more than made up for the increase in total production costs
due to the Company’s drive to produce quality and innovative programs.
Net income attributable to shareholders for the nine months of 2011 is at P2.2 billion, aided by a gain on sale of Sky Cable Philippine Depositary Receipts (PDRs) to the Singaporean company,
STT Communications Ltd. Meanwhile, earnings before interest, taxes, depreciation and amortization (EBITDA) hit P5.6 billion.
Capital expenditure and film and program rights acquisition for the nine-month period of 2011 amounted to P3.2 billion, 30% higher than the level of spending from the previous year. Additional equipment was purchased to increase the company’s capacity to produce additional new programs.
ABS-CBN maintained its national audience share and ratings leadership with prime-time audience share averaging 42% in the nine months of 2011, with a 12 percentage point lead over
GMA’s, based on the Kantar National TV Ratings figure.
For the nine-month period, eighteen of the company’s shows were in the Top 20, with the following occupying the Top 17 slots: Emil Cruz Jr.’s Mara Clara, 100 Days to Heaven, PabloS. Gomez’s Mutya, Minsan Lang Kita Iibigin, Maalaala Mo Kaya…, Noah, My Binondo Girl, Pilipinas Got Talent (Sunday), TV Patrol (Weekday), Pilipinas Got Talent (Saturday), Guns and Roses,
Junior Master Chef Pinoy Edition, Nasaan Ka, Elisa?, Imortal, Rated K Handa Na Ba Kayo?, Wansapanataym and Maria La Del Barrio.
ABS-CBN Global’s overall viewer count decreased by 1% year-on-year, driven by the decline in subscriber growth in the Middle East, Europe and Japan. Subscriber growth continued to be
experienced in Canada, Asia-Pacific and Australia.
Sky Cable’s consolidated revenues from cable TV and broadband services grew 10% year-onyear, driven by strong growth in broadband subscriptions.
ABS-CBN Film Productions, Inc. released twelve films from January to September of this year. Five of them – Ang Tanging Ina Mo Last Na To, Dalaw, Catch Me I’m in Love, In The Name of Love and No Other Woman – topped P100 million in box office receipts, earning blockbuster status by local standards. No Other Woman, a co-production with Viva Films, grossed P275 million.
PLDT starts work on $300M undersea cable system
By the third quarter of 2012, the Philippine Long Distance and Telephone Co. (PLDT) expects to double its international bandwidth capacity with a $300-million Asia Submarine-cable Express (ASE).
PLDT said Wednesday marine construction work on the 7,200-km ASE started last week in Daet in Camarines Norte, where PLDT's cable landing station is being built.
"We have designed a future-ready network that can potentially supply more than 15 Terabits per second capacity, initially using 40 Gigabits per second wavelength technology, and in the future, 100 Gigabits per second wavelength capability," said PLDT Network Services Assurance Senior Vice President George Lim.
He added the ASE system will initially link Japan, Philippines, Hong Kong, and Singapore through fiber optic cable that spans 7,200 kilometers.
It will also connect the Philippines to Malaysia, and in the next phases, potentially to other economically vibrant Asian countries, such as China, Vietnam and Thailand, he added.
"ASE can be connected to other major cable systems to Europe, the Middle East, the other parts of Asia, and the United States of America," he added.
PLDT said it is jointly undertaking the undersea cable network project with NTTCom of Japan and StarHub of Singapore, in partnership with NEC Corp. and Fujitsu Ltd.
On the other hand, the Camarines Norte landing station is the third for PLDT, after those in Nasugbu, Batangas and Bauang, La Union.
The ASE is a new-generation, high-bandwidth, optical fiber undersea cable system, the biggest capacity international submarine cable ever to land in the Philippines.
Once completed, it will allow PLDT and its group of companies, including Smart, Digitel and Sun, to serve the increasing bandwidth requirements of their combined customer base.
It will also benefit large businesses like banks, call centers, and BPO companies, as well as small and medium enterprises that do business through the Internet.
With the ASE, new bandwidth heavy broadband applications requiring international access, such as IP-based data, external video content, and other external multimedia services can be offered by the PLDT Group, and easily accessed by its customers.
ASE will further enhance and fortify the resiliency of PLDT’s international network.
“A highly resilient international network is expected to survive man-made and natural disasters such as the major undersea earthquake near the Bashi channel in December 2006 which resulted in the temporary ‘isolation’ of some countries. ASE can easily help fulfill such aspiration of PLDT," PLDT Network Planning and Engineering Vice President Gene Sanchez said.
“With a highly resilient network, PLDT for instance will be able to divert all or part of its traffic towards Japan and the US, via the new diverse route that ASE will traverse if problems, such as multiple cable cuts happen to APCN2, EAC, and AAG cables which all pass through the Bashi channel between Taiwan and Luzon Island," Sanchez added.
For his part, Daet Mayor Tito Sarte Sarion welcomed the PLDT, NTTCom, and NEC guests and said Daet is very pleased to host the PLDT International Cable Landing Station in Bagasbas village.
He said the new facility will house the ASE cable’s state-of-the-art fiber optic equipment and supervisory systems.
“Our municipality of Daet is very fortunate to host one of the most powerful and far-reaching telecommunications facilities not only in the country but the Asia-Pacific. We are very excited that, as we welcome the ASE cable landing facilities, we are on the other hand repositioning our town to become the preferred location for telecommunications technology-dependent industries. We will now have PLDT which will make us viable and highly competitive," Sarte Sarion said
Filipino wireless provider implements cross-network connectivity
Converged connectivity across 3G and Wi-Fi networks will soon be available to subscribers of the market leading wireless operator in the Philippines. Smart Communications has implemented Greenpacket’s Intouch Connection Management Platform (ICMP), allowing it to deploy services using existing SIM-based technologies and Wi-Fi infrastructures on both Smart-owned and partner-networks without infrastructure upgrades.
The solution enables seamless connectivity across 3G and WiFi access networks, thus providing a strategy for alleviate network congestion by offloading data to less expensive and less congested WiFi access networks. Additionally, the ICMP is customised to support Smart’s new targeted advertisement push services.
The Philippines has one of the highest internet penetrations by population globally at about 30%, providing huge potential for mobile broadband. However, with increased data usage, operators are seeing the decoupling of data traffic and revenues on their networks.
Kelvin Lee, Senior General Manager of Greenpacket said, “A growing number of operators consider data offloading to be the more viable solution to resolve the network congestion by offloading data traffic onto complementary Wi-Fi networks without altering their existing infrastructure compared to network expansion and thus, benefiting from more capacity at lower cost per bit. By converging multi-network access technologies, consumers can have the best service experience from their operators.”
„Milionowy” modem ZTE MF60 w ofercie T-Mobile
a global provider of telecommunications equipment and network solutions, has reached over one-million sale of unique, portable, pocket-sized Wi-Fi routers (UFI) MF60 Mobile hotspots, calculated from the date of launch vehicles in the European market, the U.S. and Australia in April 2011. Quick connection and beneficial packages offered by online T-Mobile in the U.S., Australian and Swiss Swisscom, Telstra, enabled the device will be the market leader in international markets.
MF60 fast - 21Mbps Internet connection and supports up to 10 devices using Wi-Fi. The equipment has a simple, streamlined design, OLED display, Wi-Fi Protected Setup (WPS), encryption with one key access and support for Web UI operations and provides diverse users with quick access to the source of the portable Internet, allowing them to experience the efficient and smooth settlement calls when roaming business affairs or the use of virtual entertainment.
"The rapid demand for UFI from ZTE MF60 shows the extraordinary demand for mobile Internet access, due to the increasing number of smartphones and tablets. The UFI users do not need to buy a package for every 3G device equipped with Wi-Fi, who want to connect to the Internet "- says President Zhu Dongtang Mobile Broadband Device Product Line at ZTE. "The public network of hot spots is not as ubiquitous as cellular 3G networks and, increasingly, even at points of hot spot Wi-Fi is not free. UFI allows users to freely use the network when you subscribe to only one online package. Moreover, the ZTE MF60 provides encryption, identification, firewall, antivirus and other functions for security. The user can also specify the list of components that make up the connection in order to block unknown equipment. "
TP-LINK Support Force to Provide Real-Time Proactive Online Customer Service
TP-LINK, a leading global provider of networking products, today announced the creation of a rapid response technical support team named “TP-LINK Support Force”. Support Force will monitor the Internet in real-time and provide proactive assistance to questions on TP-LINK products.
What separates TP-LINK Support Force from a traditional customer service group is the continuous monitoring of third-party websites, forums, reviews and other media. When questions arise regarding TP-LINK products, Support Force will attempt to assist the user to resolve the situation satisfactorily.
“In this day and age, customer service needs to be much more proactive rather than reactive,” says Howard He, Technical Engineer and a member of the TP-LINK Support Force. “When it comes to networking products, users cannot afford to experience downtime. We want to make sure that any questions users have across the Internet are being monitored and responded to.
In addition to the establishment and launch of the TP-LINK Support Force, the company recently announced an extension in the length of its warranties for their main SOHO and SMB products. The focus on support coincides with the accelerating presence of TP-LINK products in traditional and online retailers.
TP-LINK products are available at Fry’s Electronics, Micro Center, B&H and Data Vision. You can also find them online at Newegg.com, Amazon.com, Tigerdirect.com, Walmart.com and Buy.com. For more details, please visit us at http://www.tp-link.com/us/where-to-buy/?categoryid=902.
Casa Systems Unveils the C1G, Newest Member of Its Family of DOCSIS 3.0 CMTS Products
Casa Systems, a worldwide leader in next generation cable edge technology, today announced the launch of a new, versatile Cable Modem Termination System (CMTS), the C1G. With a compact form factor at 15 in x 8.75 x 1RU, the C1G was designed for Multi-dwelling Units (MDU), Hospitality and small rural applications in mind. Casa's C1G is the only full featured DOCSIS 3.0 CMTS available in this form factor.
The C1G supports 1 downstream QAM port, 2 DOCSIS upstream ports, and 2 GbE (SFP) network ports. Configurations for the C1G range from 2DS x 2US up to 8DS x 8US. Some of the features that the C1G supports are; upstream and downstream channel bonding; AES encryption/decryption; Quality of Service (QoS); and a rich IP feature set including support for IPv6.
Casa Systems is showing its C1G at SCTE Cable-Tec Expo (Booth 1938) November 15-17 in Atlanta.
"Casa Systems is known in the industry for its fully qualified DOCSIS 3.0 CMTSs and its tradition as a leader in price, performance, and scalability," said Jeff Heynen, Directing Analyst, Broadband Access and Video for Infonetics Research. "The C1G continues that tradition, delivering full DOCSIS 3.0 features, a small foot print and aggressive price points that are ideal for MDU, hospitality, and a host of other deployments."
"The C1G sets a new threshold for scalability, performance and price," said Jerry Guo, Founder and CEO of Casa Systems. "The extremely compact form factor allows our customers to cost effectively pursue new business opportunities by focusing on the large MDU and hospitality markets. It is also very easy to manage which will simplify ongoing operational support and help improve profitability for our customers."
Casa Systems' innovative approach enables cable operators to cost effectively offer highly scalable broadband services such as IPTV, video-over-IP, interactive gaming, as well as traditional broadband access and VoIP services. As the industry's only vendor with full DOCSIS 3.0 and PacketCable 1.5 qualification, Casa Systems products deliver reliability, scalability, performance, and operational simplicity.
SEVEN Networks President & CEO to Address Mobile Data Tsunami at Broadband Traffic Management and UBS Global Technology and Services
Networks, a provider of innovative mobile solutions that deliver a Real Life, Real Time experience, today announced that Ross Bott, president and CEO, will participate this month in a panel discussion at Broadband Traffic Management in London, followed by a speaking engagement at the UBS Global Technology and Services conference in New York.
Broadband Traffic Management will be held Nov. 15-17 at the Royal Garden Hotel in London and will bring together more than 500 attendees and more than 100 speakers to discuss the role of broadband traffic management in the mobile data explosion.
On Tuesday, Nov. 15, Bott will participate in a panel discussion entitled "Underlining the Merits of Handset Clients in Extending Policy Beyond the Network: The Value of QoS Control and Data Management on the Device." Additional panel participants include Peter Thompson, chief scientist, GoS Networks; Ben Toner, senior business sector consultant, Roke; and Carla Fitzgerald, vice president of marketing, Smith Micro (USA).
SEVEN has also been named to the shortlist for "Best Use of Traffic Management for Improving Customer Experience" in the Broadband Traffic Management Congress Awards 2011 for its SEVEN Open Channel. Winners will be announced on Tuesday, Nov. 15.
The following afternoon, Nov. 16, Bott will present "The Mobile Data Tsunami: Challenges and Opportunities for Mobile Operators" at the UBS Global Technology and Services event at 3:30 p.m. at the Grand Hyatt New York Park Avenue at Grand Central in New York City.
"Early this year we introduced our SEVEN Open Channel traffic optimization solution and as 2011 comes to a close, there is now a real urgency for carriers to implement solutions to battle the mobile data tsunami," said Bott. "These speaking engagements are an excellent opportunity to share SEVEN's expertise in this area and hopefully provide carriers with some optimism for 2012."
Smart Communications Philippines Chooses Greenpacket’s Intouch Connectivity Management and Data Offload Solutions
Greenpacket, a leading developer of next generation mobile broadband and networking solutions, secured a major win with Philippines’ largest wireless service provider, Smart Communications Inc (“Smart”). Greenpacket’s award winning Intouch Connection Management Platform (ICMP) will enable Smart to be the first Philippines operator to offer converged connectivity across its 3G and WiFi access networks.
With Greenpacket’s cost-effective ICMP solution, Smart can readily deploy services using existing SIM-based technologies and Wi-Fi infrastructures on both Smart-owned and partner-networks without infrastructure upgrades. The ICMP solution enables seamless connectivity across 3G and WiFi access networks, thus providing a strategy for alleviate network congestion by offloading data to less expensive and less congested WiFi access networks. Additionally, the ICMP is customized to support Smart’s new targeted advertisement push services.
“Customer satisfaction is our utmost priority and Smart Communications, Inc. always strives to deliver the best service experience. We chose ICMP because the Greenpacket team has shown strong capability in delivering a superior product that is customized according to our needs,” said Mario G. Tamayo, Head of Smart’s Technology Services Division.
The Philippines has one of the highest internet penetrations by population globally at about 30% providing huge potential for mobile broadband. However, with increased data usage, operators are seeing the decoupling of data traffic and revenues on their networks.
Kelvin Lee, Senior General Manager of Greenpacket said, “A growing number of operators consider data offloading to be the more viable solution to resolve the network congestion by offloading data traffic onto complementary Wi-Fi networks without altering their existing infrastructure compared to network expansion and thus, benefiting from more capacity at lower cost per bit. By converging multi-network access technologies, consumers can have the best service experience from their operators.”
“We are pleased to be working with the leading and largest service provider in the Philippines. We are confident of our leadership in Connectivity, Data Offloading and Mobility Management markets globally. At this stage, we are committed in leading the market by providing Wi-Fi solutions that are field proven and commercially deployed globally. With over 10 years of pioneering efforts in research and development, we continue to be a strong advocator in delivering the best connectivity experience to our customers,” he added
Greenpacket’s ICMP is gaining momentum as a choice connection and data offload management solution of tier-1 telcos. The company recently clinched a similar deal with Time Warner Cable, the second largest cable provider in the U.S. for its Windows and Mac Platform. The solution is also being deployed by Hong Kong’s leading telco, PCCW a 3G and 4G communications and technology provider. Lee expects to close more deals for the ICMP suite of solutions with operators keen on finding avenues to optimize access networks, manage connectivity across devices and also generate more revenue.
Greenpacket will be presenting at the Broadband Traffic Management Congress on “Enhancing End-User Experience with WiFi Offloading” on 16th November 2011. Learn how Greenpacket’s WiFi Data Offload Solution can help take steps to define and refine your capacity strategy before your network congestion gets out of control. You will have the opportunity to speak to Greenpacket experts about solutions that will help manage key strategies such as Optimising and Enhancing User Experience, Reducing Cost of Delivery, Addressing the Impact of Mobility Towards LTE Convergence, and Delivering New Operator Business Models.
SMC telco unit eyes chunk of subscribers pie
Wi-Tribe Telecoms Inc., the telecommunications unit of San Miguel Corp., expects to end the year with 100,000 wireless Internet subscribers—triple of what it saw last year—as it grows its lineup of offers to cater to a larger market.
The company on Monday launched its first prepaid broadband Internet service Wi-Tribe Tri-speed Pure 4G Prepaid stick for budget-conscious users who are not willing to compromise connection speeds.
Officials said the company would offer more industry-leading services at fair prices.
“We are confident enough that we can build our network resiliently in Metro Manila. We are now covering about 95 percent of the population in Metro Manila,” said Edmund Pike of Wi-Tribe. “We have 80,000 subscribers today. We are on track to having 100,000 by yearend.”
By next year, this figure is expected to double, he added.
Also, the company said it would expand to areas outside of Metro Manila next year. Being the newest player in the industry, Wi-Tribe Telecoms has the advantage of investing in the latest technology available.
San Miguel and multinational QTel group, which maintains operations in the Middle East and Southeast Asia, jointly own the brand Wi-Tribe.
Going VoIP-only: Do you still need cellular voice service?
These days, smartphones with speedy Web connectivity are easy to find, so consumers should be able to get by with just a roomy data plan, dumping voice service in favor of VoIP. But is that practical? To see how feasible cutting voice service is, I decided to go VoIP-only for a week, on the new T-Mobile/Walmart prepaid plan that offers 5GB of 4G data on T-Mobile's HSPA+ 14.4 network for a measly $30 per month.
Do Users Still Need Voice Service?
When I think about what people do with their smartphones on a regular basis, I wonder why we still call them "phones" at all. Play games! Stream music, movies, and live video broadcasts! Hold videoconferences! Call someone? Yeah, I guess you could do that.
Mobile broadband connections have become fast enough and widespread enough that you should be able to cut down the voice-service component of your cellular plan, if not eliminate it completely--which would save you anywhere from $40 to $70 each month. However, mobile Internet connections aren't nearly as consistent as your average residental DSL or cable modem connection is, because they rely on radio waves to send and receive data. As a result, your mobile Internet connection's bandwidth (the amount of data you can transmit per second) and latency (the time a packet of data takes to travel from your handset across the Internet to the intended recipient, such as Netflix's or Skype's servers) fluctuate wildly.
Such connection problems are fairly simple to deal with when you're streaming music or video, but less easy to fix for a voice conversation between two people. After all, you won't notice if your smartphone needs a few extra seconds in the beginning to buffer the entire fifth season of Law and Order: Special Victims Unit, but you certainly will notice if your phone conversation suffers from a few seconds of lag. Considering that the T-Mobile/Walmart service is just $30 a month, though, such lag might be an inconvenience that some budget-minded folks are willing to tolerate if it isn't too bad.
How to Go VoIP-Only
I used the T-Mobile Exhibit II 4G, which is the current flagship phone offered for this particular plan. This unremarkable Android 2.3 Gingerbread handset feels like a slightly smaller, lighter version of the first Samsung Galaxy S line of phones, which sell for $200 with no contract. Not a bad deal for a budget-conscious buyer. The T-Mobile/Walmart prepaid plan provides 5GB of data at 4G speeds (after which it throttles down to the 3G network), plus 100 voice minutes (and a rate of 10 cents per minute after that).
Plenty of VoIP apps are available in the Android Market, but I had to do my homework to find the right one for me. At first I thought I could use the T-Mobile Wi-Fi Calling app, which comes preinstalled on the phone, but I discovered that calls made through that app still eat up cellular minutes. Next I turned to Google Voice, which I already use for making calls from my PC for free. All I had to do was download and install the app from the Android Market, and it would integrate seamlessly into the Dialer app. Unfortunately, Google Voice calls consume mobile minutes, too, so I wasn't able to use it for this experiment.
After dabbling with Fring and looking into setting up Sipdroid, I finally settled on using Skype for my VoIP needs, since I already had an account and I use it fairly regularly on my PC and iPad. Skype's rates depend on how much you plan to use your phone, as well as on where you're located. Since I'm in the United States, and since I don't make a lot of lengthy calls, I opted to stick with the standard rate, which costs 2.3 cents per minute--about one-quarter of what T-Mobile's plan would charge me for voice. Skype offers various unlimited-usage monthly plans as well, ranging from $3 a month for unlimited calls within the U.S. and Canada to $14 a month for unlimited calls worldwide. And if you want to receive calls via Skype, you'll need to shell out an extra $6 a month for an Online Number. It isn't free, but $9 for unlimited calls out of a static number is still pretty cheap.
Skype-Only for a Week
Overall, the arrangement worked pretty well. Oddly enough, my 4G reception was the worst in my office and my apartment, but since Wi-Fi covers both areas just fine, I didn't have to worry about missing a call in the two places I spend 90 percent of my time. I live in the San Francisco Bay Area, which T-Mobile's 4G network seems to cover reasonably well, considering that I didn't have much of a problem placing or receiving calls via Skype.
The call quality was great. Generally it didn't sound as good as Skype sounds on a PC with a solid broadband connection, but it still sounded much better than a normal cellular voice call. I did have a few issues with echoing, dropped calls, and occasional spurts of lag--all of which were rather frustrating--and I'd routinely drop calls going through 3G/4G dead spots (passing through Treasure Island on the Bay Bridge, for example) that the T-Mobile voice network handles capably.
Setup wasn't particularly difficult, either. The Dialer app in Android can default to Skype for handling calls, so once you've sent everyone your new number and configured Skype, you won't really notice anything different in how you use your phone on a daily basis.
The T-Mobile/Walmart plan's 5GB 4G-data cap turned out to be more than enough for me--after a week's worth of calling through Skype, streaming videos via Netflix during my commute, and streaming music over Pandora and Slacker instead of using my MP3 player, I used up about 600MB --a little over one-tenth of my 4G-data allocation.
Smartphone power users, take note: Since the Samsung Exhibit II 4G is an HSPA+ 14.4 smartphone, it can't take advantage of the full 4G speeds of T-Mobile's HSPA+ 42 network, which some of the carrier's higher-end phones can use. On my speed tests, it reached 4.5 megabits per second downstream and 1.4 mbps upstream, with 52ms latency, on the high end; at the low end, its results were a relatively weak 863 kilobits per second downstream and 233 kbps upstream, with 586ms latency. Those aren't phenomenal numbers for a 4G network, but they aren't awful, either.
Is Switching Worthwhile?
Once I went back to my normal phone--a boring candy-bar Nokia also on T-Mobile prepaid service--I realized that the traditional cellular voice network isn't all roses, either. I encounter dropped calls, echoing, and other similar issues with my normal voice service, too. Ultimately, your choice depends on how much you're willing to pay for an always-on, comparatively reliable dedicated voice plan.
Personally, since I spend most of my time at home or in the office, both of which have Wi-Fi coverage, I wouldn't have to worry about missing or dropping calls there. When I'm out and about, the 4G network works well enough for me in daily use. And if I'm really worried about poor network reception, I can fall back on the 100 minutes of voice service included with the T-Mobile plan. So, for me, paying $39 per month for the T-Mobile/Walmart plan plus the Skype service is an absolute steal, considering that I'd be paying about $80 a month (before taxes and fees) for a comparable plan from T-Mobile itself, and even more than that for service from AT&T or Verizon. Over a two-year period, my savings would total about $960. I think that's worth the occasional inconvenience of a dropped call.
However, cutting back voice service is clearly not for everyone. If, when you're on the go, you regularly rely on your phone for important calls--from your colleagues, your family, and such--that you simply cannot afford to drop, this probably isn't the plan for you. I'll probably switch over to this T-Mobile plan (or give Republic Wireless a shot), but I'm a little worried about how it will work when I'm covering a trade show such as CES, where mobile broadband connections are unreliable at best--and nonexistent at worst.
Going VoIP-only isn't a perfect alternative yet, but for the right kind of smartphone user, it's a viable way to slash your cellular bill in exchange for the occasional minor inconvenience. The writing is on the wall: Smart tech consumers won't put up with pricey unlimited-everything plans for much longer.
Gigabit Jersey broadband funding row
Cable and Wireless is saying there was no consultation over plans to give millions to JT to improve broadband.
Cable and Wireless, which owns Sure, says the regulator, the States and the public need to have their say.
Under plans to boost internet services in Jersey, the Treasury Minister is giving millions of pounds to JT to help set up "Gigabit Jersey".
Superfast fibre-optic broadband services would be available to every home in Jersey, attracting businesses.
JT announced last year that it planned to launch gigabit broadband by 2016 and was investing more than £40m to replace all of Jersey's copper cables with fibre optic cables.
'Value for money'
Jersey's Treasury Minister said he wanted to use public money to set up the network because it would attract large internet businesses to Jersey.
Cable and Wireless is the latest telecoms provider in Jersey to voice concerns. Clear Mobitel said previously said other companies should be allowed to try to get the contract.
Cable and Wireless has questions about how JT plans to do it and what alternatives there are to superfast broadband.
Chief Executive Graham Hughes said: "We do not know how much JT intends to charge islanders for superfast broadband or how they intend to allow competitors to access the network in order to provide fair competition that will give islanders the best value in superfast broadband."
Globe Announces Network Modernization and IT Transformation Program
Globe Telecom, Inc. is pleased to announce that it will undertake a landmark mobile network modernization program ( http://www.youtube.com/watch?v=6LBYKWGdi3M ) over the next two to three years. The massive network upgrade is aimed at significantly improving network quality and customer experience, increase capacity, drive down costs, as well as prepare the network to meet the needs of customers today and in the future. Given the growing demand for bandwidth-heavy services, the modernization program will bring significant improvements to network capacity leading to improved reliability, ease of access and pervasive coverage. For the Company, this transformation effort will enable improved revenue growth prospects, savings in capital spend and operating expenses, as well as efficiencies resulting from synergies with a dedicated vendor partner. By adopting the latest technologies available today, Globe will be in a better position to provide the needs of its customers, secure and enhance its position in this highly competitive market.
The Company is at the same time initiating an IT transformation project to create a streamlined and integrated information environment, in response to changing market and business demands. The system transformation effort is a comprehensive re-engineering of Globe Telecom's IT systems over the next two years. This will result in convergent billings and more innovative product development, faster response to customer queries and service requests by our stores and call centers. The endeavor will result in quicker time-to-market for new products that adapt to changing customer needs, and timely customer loyalty offers enabled by enhancements in customer segmentation and usage monitoring.
The Company is tapping external partners to help manage the modernization efforts. After thorough evaluation and extensive deliberations of vendor proposals, the Company has awarded the network modernization to Huawei given its technical expertise and strong track record of success. Globe Telecom expects to realize additional synergies with Huawei in establishing a Joint Innovation Center (JIC) that would bring the latest technological developments and help address the Company's customization needs. Through the JIC, Globe will be able to learn network best practices and tap into the latest developments of the 17 research and development centers that Huawei has around the world. The Company expects to sign the definitive agreements with Huawei in the coming days.
For the IT systems upgrade, Globe has selected Amdocs as technology partner, given its extensive experience in business process transformation and access to leading edge technology. Globe expects to complete the definitive agreement with Amdocs by the first quarter of 2012. "Amdocs has delivered some of the industry's most complex transformation projects to some of the largest players in the world, and we are excited to be able to draw on this experience for Globe," said Eli Gelman, Amdocs' chief executive officer. "This strategic transformation project significantly expands Amdocs and Globe Telecom's relationship to support the mission critical operations of Globe. Our ability to deliver innovative and partner technology will be key to enable Globe to deliver service innovation to their nearly 30 million customers and establish operations that can support rapid growth."
Globe will invest around US$700 million in the next five years to support the network modernization project, and another US$90 million to complete the IT transformation initiative. This will be the biggest and most significant investment that the Company has undertaken in the past two decades. The Company targets completion of the two projects over a period of 24 - 36 months.
The Company also announced that it will change its dividend pay-out policy to be at 75% to 90% of prior year's core net income instead of reported net income. This will ensure that dividends will remain sustainable and yields competitive. The dividend policy change will take effect with the 2012 dividends, based on 2011 core net income.
The network and IT transformation programs are expected to generate savings in operating expenses and capital expenditures totaling to US$180 million and US$210 million respectively over the next five years, in addition to the revenue uplift driven by the network quality improvements and increased capacity. Since it will involve replacing network equipment and IT systems, the Company expects that assets with net book values estimated at US$388 million will need to be decommissioned after modernization. This estimate is before any possible proceeds from resale and is still subject to actual site validation. All efforts will be taken to maximize the re-use of the existing equipment.
The net book values of these non-useable assets will impact Globe's profitability through an acceleration of depreciation over its remaining useful life until such time when the new, replacement capex is ready for service. Owing to its exceptional and non-recurring nature, this accelerated depreciation will not be considered in the determination of core net income. It will likewise not compromise cash flows nor the Company's ability to declare dividends.
Network Modernization Program
The main objectives and benefits of the modernization program are:
Significantly improve network quality, reliability, and customer experience - The network transformation will result in dramatic improvements in network performance, translating to enhanced voice connection and quality, quicker delivery for SMS, better 3G coverage, and increased network resiliency to reduce network outages.
Increase voice and data capacity - Upgrading the network will also prepare the Company for the expected growth in voice and data traffic. Over the next five years, the Company is expecting a three- to ten-fold increase in voice and data throughput. This modernization program will provide the capabilities to accommodate higher volumes of voice, SMS, and data traffic resulting from a growing subscriber base and shifting user preferences.
Reduce total cost of ownership - The project will also help lower the overall cost of delivering wireless services to Globe customers with the introduction of newer and more power-efficient equipment. Globe will also increase the use of 'green' solutions to be more environmentally responsible. The Company expects to generate opex savings of about US$170 million over the next five years from reduced power usage, efficiencies from increased fiber optic use, and lower maintenance costs. Finally, the Company expects to save approximately US$200 million in capital expenditures when compared to an incremental build effort, stemming from the economies of scale of this modernization initiative with a single vendor.
Future-proof network - The network modernization will give Globe the capability to upgrade to more advanced technologies such as LTE (long-term evolution), and shift to more flexible radio systems and an all-IP architecture. The use of fiber optics will be raised by 50% which will significantly increase capacity.
IT Transformation Program
The IT transformation program, on the other hand, is centered on enhancing business support systems to improve customer experience, strengthen Globe's product design & development capabilities, and reduce total cost of ownership. The envisioned standards-based IT architecture is robust, scalable, and flexible, allowing Globe to quickly respond to future business requirements. Over the next five years, Globe expects to generate opex savings of about US$10 million from lower hardware and software maintenance costs, and another US$10 million from lower capital expenditures as a result of this initiative.
Significant improvements in customer experience are expected once the new system is implemented. Some of the envisioned results are faster response time to customer queries and service requests by Globe Stores and call centers through integrated front-end applications, quicker time-to-market for new products, timely customer loyalty offers enabled by enhancements in customer segmentation and usage monitoring.
"Our network and IT modernization programs are key initiatives in transforming Globe into a customer-centric company, differentiated by superior customer experience" Ernest L. Cu, President and CEO of Globe Telecom, Inc. said. "As we execute our programs, we will aim for a seamless transition in order to extend our gains and strengthen our position in this intensely competitive market," added Cu.
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