The Telecom Maestro

FTTH

2009-05-27T03:12:00.000-07:00

FTTH, or Fiber To The Home, refers to fiber optic cable that replaces the standard copper wire of the local Telco. FTTH is desirable because it can carry high-speed broadband services integrating voice, data and video, and runs directly to thejunction box at the home or building. For this reason it is sometimes called Fiber To The Building, or FTTB.

Traditional copper telephone wires carry analog signals generated by telephone equipment, including fax machines. Analog technology is by nature a less precise signaling technology than digital technology. Though multiplexing has allowed digital signals to be transmitted across multiple channels over copper lines, fiber optic cable is superior for relaying these signals and allows for faster transfer rates and virtually unlimited bandwidth. This opens the door to betterInternet speed, streaming video, and other demanding applications.

The Internet utilizes a backbone of fiber optic cables capable of delivering incredible bandwidth. This inherent ability makes the Internet a prime source for advancing network technologies that can be brought to the home or business. Most subscribers, however, log on to this network through copper lines with limited capacity. This creates a bottleneck for advancing technologies that increasingly require greater bandwidth. FTTH bridges this gap.

Fiber optic cables are made of glass fiber that can carry data at speeds exceeding 2.5 gigabits per second (gbps). FTTH services commonly offer a fleet of plans with differing speeds that are price dependent. At the lower end of the scale, a service plan might offer speeds of 10 megabits per second (mbps), while typical DSL (Digital Subscriber Line) service running on existing copper lines is 1.5 mbps. A more expensive FTTH plan might offer data transfer speeds of over 100 mbps —- that's about 66 times faster than typical DSL.

FTTH is cost-prohibitive in many cases. Installing FTTH can be expensive, and the monthly charge for broadband services thereafter can also be off-putting, though these figures vary widely. Expense is likely to drop with time as FTTH becomes more common.

Because of the cost involved and the logistic difficulty in replacing existing copper lines in some neighborhoods, FTTH is more often being installed in newly built communities as an added selling feature. Installing FTTH raises the value of existing property.

FemtoCells

2009-05-26T10:09:00.000-07:00

Femtocells are low-power wireless access points that operate in licensed spectrum to connect standard mobile devices to a mobile operator’s network using residential DSL or cable broadband connections.

Well it's clear more and more consumers want to use mobile phones in the home, even when there’s a fixed line available. Friends and family usually call a mobile number first, and it’s where messages and contact lists are stored.

However, it is often the case that providing full or even adequate mobile residential coverage is a significant challenge for operators.

From a competitive perspective, femtocells are important because mobile operators need to seize residential minutes from fixed providers, and respond to emerging VoIP and WiFi offerings.

Improving user experience in the home is also essential for reducing churn and gaining marketshare and new revenues. However, high deployment costs ensure that 3G networks rarely extend beyond the regulatory minimum.

WiMAX Broadband Services to Generate $15bn by 2014, but Its 'Make or Break' Time for the Sector

2009-05-26T10:01:00.000-07:00

Mobile WiMAX networks are being rolled out more slowly than expected, meaning that service revenues will grow more slowly than forecast a year ago, a new study from Juniper Research concluded.

The report found that revenues from WiMAX 802.16e broadband subscribers will exceed $15 billion globally by 2014. WiMAX will provide an improved experience for broadband customers who are receiving low speed DSL or cable modem services, or at the limit of DSL coverage.

However, WiMAX is faced by spectrum auction postponements in several countries, funding problems from the credit crunch, and slow network implementations, all combining to handicap network operators signing up subscribers.

WiMax

2009-05-26T09:44:00.000-07:00

WiMAX is a wireless digital communications system, also known as IEEE 802.16, that is intended for wireless "metropolitan area networks". WiMAX can provide broadband wireless access (BWA) up to 30 miles (50 km) for fixed stations, and 3 - 10 miles (5 - 15 km) for mobile stations. In contrast, the WiFi/802.11 wireless local area network standard is limited in most cases to only 100 - 300 feet (30 - 100m).

With WiMAX, WiFi-like data rates are easily supported, but the issue of interference is lessened. WiMAX operates on both licensed and non-licensed frequencies, providing a regulated environment and viable economic model for wireless carriers.

WiMAX can be used for wireless networking in much the same way as the more common WiFi protocol. WiMAX is a second-generation protocol that allows for more efficient bandwidth use, interference avoidance, and is intended to allow higher data rates over longer distances.

The IEEE 802.16 standard defines the technical features of the communications protocol. The WiMAX Forum offers a means of testing manufacturer's equipment for compatibility, as well as an industry group dedicated to fostering the development and commercialization of the technology.

WiMax.com provides a focal point for consumers, service providers, manufacturers, analysts, and researchers who are interested in WiMAX technology, services, and products. Soon, WiMAX will be a very well recognized term to describe wireless Internet access throughout the world.

DREAM STILL ON

2009-05-26T09:29:00.000-07:00

ALMOST exactly a year to the day that Sunil Bharti Mittal reluctantly called it quits on telecom services provider Bharti Airtel’s deal with South African major MTN, he’s got his dream of a worldwide telecom behemoth back on track.
Even if Mr Mittal chooses to couch it in internationalspeak — “this opportunity also represents a first of its kind in developing an Indian-African initiative that would serve as a shining example of South-South cooperation,” the resurrected talks demonstrate what is possibly his defining virtue — dogged perseverance.
Even then, Mr Mittal’s friends were sure that he would eventually have his way as he was not a man to accept defeat . “Sunil will get the company, not now, but eventually,” Max India chairman Analjit Singh had told ETjust as the deal failed last year. This inevitability was bolstered by a fellow telecom CEO’s revelation that Mr Mittal had commented to him soon afterwards that seeing the deal through had become “a question of my ego”.
Indeed, as soon as RCOM’s discussions fell through last summer, Bharti and MTN re-established contact through their respective bankers. The talks gained momentum 3-4 months ago, as friends recounted that Mr Mittal had spoken again of acquisitions abroad and MTN was a sitter. Tenacity, never-say-die drive define Mittal
THIS time, he has been camping in Europe with his bankers to see the deal through even as preparations for another merger are on apace at his mansion Akshram in New Delhi: his daughter Eiesha’s summer wedding.
“Sunil has a great combination of entrepreneurship, strategic thinking and the ability to dive into details and still keep the larger vision intact,” says Jubilant Organosys co-CMD Hari Bhartia. “That’s what makes him both an inspiring leader and a good friend.”
Indeed, his overwhelming quality in the professional sphere is tenacity, a never-say-die drive that has had him claw back from the precipice many a time.
Like the time his genset business went bust when the government banned imports, he fortuitously turned to push-button phones and fax machines under the brand name Beetel. Then in 1992, he ambitiously entered mobile services though it wasn’t all plain sailing. “We were very clear that exit was not an option,” Mr Mittal later told ET about the WLL crisis in 2002. “We had investments on the ground, so we had to move on. We knew we had to make history or we would be dead. We had nothing to lose.”
That line was prophetic. Bharti has recorded a turnover of around Rs 37,000 crore for the year ended March 2009, overtaking BSNL to become India’s largest telco by revenues, and last week, he notched up his 100 millionth customer, a year ahead of plans. Now, along with his trusted team of executives like Akhil Gupta, he’s moving ahead on his global vision. Agriculture, insurance, financial services, retail and other new avenues are already his stated new goals.
His friends say, however, that there is no change in his private persona even as he has morphed from just a businessman to billionaire. “He’s a very grassroots guy, which is why he knows the pulse of the people he sells to,” says a friend and neighbour. “And despite his wealth, he hasn’t changed at all. He plays tennis, loves Hindi music, and is a family man of simple tastes: Punjabi-style dal, a good meat dish...He goes vegetarian before a big deal, though!”

Bharti, MTN reconnect $23b Merger Deal

2009-05-26T09:23:00.000-07:00

EXACTLY a year after India’s largest telco Bharti Airtel called off merger talks with South Africa’s MTN, both companies on Monday announced that they had revived talks to create a global powerhouse with revenues over $20 billion and a footprint stretching from the Cape of Good Hope across the African continent, West Asia and the Indian subcontinent.
The potential deal, which seeks to tiptoe around the emotional sensitivites that scuppered their merger talks last year, will catapult the combine into the league of the top five global telcos, with over 200 million customers.
While the stock markets were unimpressed with the development and beat down the Bharti stock by over 5% on concerns about pricing and cash flows, institutional investors in the company mostly reacted positively, taking the view that access to emerging markets such as Africa and West Asia will be crucial for long-term growth.
MTN’s shares closed 9.2% higher at 129.9 rand on the Johannesburg Stock Exchange.
The proposed $23-billion transaction involves a complex structure where both entities would pay cash and equity for stakes in each other. If it goes through, this will be India’s biggest-cross border deal, eclipsing Tata Steel’s acquisition of European steel major Corus for $12.2 billion in 2006.
The tortuous formula, if it works out, will result in Bharti getting a 49% stake in MTN and the South African telco a 36% “economic interest” in Bharti Airtel (see graphic). This, both companies said, would be the precursor to the “broader strategic objective” of a “full merger.” The deal values MTN at 157 rand per share, far lower than the up to 185 rand per share that Bharti is learned to have offered last year.
For the deal to go through, large shareholders in MTN must sell their stakes to Bharti Airtel. MTN chief executive Phuthuma Nhleko and four other executive directors own 26% of Newshelf 664—a management and staff-owned vehicle—which in turn owns 13.09% of MTN. In addition, it is estimated that the Lebanonbased Mikati family owns a 10% stake and PIC, a South African pension fund, a further 13.5%.
Post the deal, Bharti said it would have “substantial participatory and governance rights” in MTN, enabling it to consolidate MTN’s accounts and the latter in turn would get “appropriate” representation on the Bharti board.
DEAL REDIAL THE BHARTI-MTN COMBINE WOULD CREATE A CORPORATE MONOLITH. HERE'S THUMBING THROUGH THE POTENTIAL UNION
REVENUES OF $20 BILLION Subscriber base of over 200 million Fifth in the world after China Mobile, Vodafone, Telefonica and America Móvil Footprint in 26 countries Combine to ride on Bharti for expansion in India and Asia, MTN for Africa and Middle East Market cap of $60 billion
DEAL STRUCTURE Stock-cum-cash deal worth over $23 billion, largest Indian cross-border deal Bharti to pick 49% in MTN for about $4 billion in cash To offer GDRs and cash in return for MTN shares MTN to pick 36% economic interest in Bharti To hold exclusive talks till July 31 POSSIBLE HURDLES Regulatory issues in India & South Africa MTN has track record of dumping suitors, including China Mobile, China Telecom, Vodafone, Reliance Communications

Mobile Number Portability (MNP)

2009-05-23T08:48:00.000-07:00

MNP or mobile number portability is going to make inroads into the Indian telecom market. Telecom Regulatory Authority Of India(Trai) has approved the pan-India implementation of MNP, and Department Of Telecom (DoT) has framed the timeline of its implementation, it is expected to hit the market by year-end.

Initially, MNP would be available for cellular subscribers in the metros-Delhi, Mumbai, Kolkatta and Chennai-and later in other circles. Therefore, by end-2009, nearly 18% of the total cellular subscriber base shall be given an option to change their operators without changing the number. It is expected that MNP would push operators to improve the existing quality of service in order to avoid the threat of losing customers to rival operators.

Globally, nearly forty countries have introduced MNP till now and have different implementation models and strategies. Being a late entrant, India is expected to learn from the mistakes and challenges experienced in other markets.