Around the World

Billing & OSS World…
Operators Exaggerate the OTT Threat

Ovum recently released a report further highlighting the need for telcos to innovate in order to negate the threat of Over-the-Top (OTT) providers. After evaluating more than 3,500 new service launches since 2009, the global analyst firm concluded it’s fine to compete with OTT providers, but that the real trick may be to collaborate more. The analysts examined the approaches taken by companies such as Google and Apple to establish themselves in the app ecosystem, and noted the lackluster success of CSPs should really come as no surprise. Simply put: telcos were too selective when choosing partners and overburdened their prospective allies with unrealistic revenue expectations.

The report goes on to recommend using partnerships to scout for new ideas, indicating the importance of prioritising innovations that exploit the centrality of operators’ networks. Similar to the approach recently suggested by our own Steve Hateley, Ovum suggests telcos use the notion of “net innovation benefit” – comprised of “net new revenues,” “net cost savings” and “net non-monetary benefits” – to measure the success of their innovation activities.

CommsMEA…
Telcos Ignore Big Data at Their Peril

Big data should not be ignored, and telco operators that choose to give it the cold shoulder are doing so at their own risk, is additional advice Ovum is touting. The research firm asserts operators can benefit from big data analytics in numerous ways, including predicting and reducing churn, promoting loyalty, upselling and cross-selling offers, and personalising services.

However, telcos are running into some red tape due to a lack of necessary data management and analytical skills in-house. Ovum cites the high demand and low supply of data scientists as the main reason for the lingering big data inefficiencies, noting this makes the analytics area ripe for vendor support.

In fact, telcos are generally turning to one of four sources for their big data analytics needs:

1. Their existing BSS/OSS providers
2. Trusted IT vendors
3. Telco analytics specialists
4. Incumbent network equipment providers

Ovum suggests telcos take a page from the playbook of OTT providers, and become more data-centric, leaner and more agile. Once this issue has been resolved, the firm says, telcos will be able to effectively monetise the increased volume, variety, velocity and value of the network, subscriber and other data that they collect.

Comptel’s Matti Aksela recently asked if big data is actually relevant for telcos’ business strategies, and according to Ovum, the answer is yes.

Telecoms.com…
LTE: Strong Starter

LTE is for everyone, or at least it will be eventually. According to third quarter 2013 data from Informa’s WCIS Plus, the global LTE subscriptions are at 88.48 million, comprising 1.35 percent of the overall cellular market. By year’s end, it is predicted to be the fifth largest network technology behind GSM, WCDMA, CDMA and TD-SCDMA.

Informa believes that the debates surrounding LTE are more about routes than destinations, however, and stress that operators’ choice of paths will go a long way to determining their success. This also holds true for how LTE is launched into the market in the first place, and the traditional mass marketing approach may not be the best option. Learn more about why not here.

Predicting the Next Big Thing in the Bulgarian Telco Market

This week, we hosted a media event in Sofia, Bulgaria, where we have an important global service delivery site. We employ more than 70 IT professionals there and are hoping to grow this office in the coming years. Our team caters to European and Middle East and African customers—quite often in cooperation with our global service delivery team based in Kuala Lumpur, Malaysia.

The theme for the event was built around the Barcelona-in-the Box concept, but this time, we wanted to highlight the Bulgarian market. Ulla Koivukoski gave a presentation entitled “Bulgaria on the Global Mobile Map,” which covered three main themes: Enriching the User Experience – Enriching the Operator, Big Data, and Business Transformation – Reshaping the Operator.

What we learned is that the Bulgarian mobile market is very similar to the markets in most European Union (EU) countries. For example, the number of post-paid customers is high when compared to the prepaid market, which accounts for just one-third of subscribers. The challenges in the Bulgarian market are also very similar to others in the EU. According to Business Monitor, the mobile average revenue per user (ARPU) in Bulgaria declined 25.3 percent in 2012, while mobile sector growth was at 5.5 percent and reaching 167.1 percent market penetration.

This means that communications service providers’ revenues are getting thinner, and at the same time, there are investment plans for bringing LTE to the market. The Bulgarian fixed broadband market is very advanced, and therefore, customers also have great expectations for mobile data.

During the event at Grand Hotel Sofia, the attendees shared their views about the Bulgarian mobile market. Most people admitted that they very seldom use mobile data, instead relying on open Wi-Fi networks that are widely available. Local operators could turn things around and monetise this traffic using LTE or operator-owned Wi-Fi.  We also brought new ideas concerning how to apply our ‘Event’-‘Analysis’-‘Action’ strategy to build business and showed one use case demonstrating how we can derive value from data with operational predictive analytics.

Comptel is ‘Making Data Beautiful’ with automated decisions that drive action, and we were honored to show the attendees in Sofia just how we do that.

There Will Be More Than One Billion Mobile Phones in Africa…What Does This Mean?

A lot of telecommunications analysts have turned their sights toward the Middle East and Africa. That shouldn’t be a surprise, considering that, by 2016, analysts expect there to be more than one billion phones across the continent, with 991 million being feature phones. Indeed, Cisco expects that mobile data traffic growth will be fastest in this region.

It’s a particularly exciting time to watch these developments in Africa. The continent already has some of the highest mobile money payments in the world— in Kenya, Madagascar, Tanzania and Uganda, there are more mobile money bank accounts than traditional bank accounts.

All of these trends point to explosive mobile use and increased connectivity in Africa as a whole. So, what’s one of the biggest changes we can expect to see here?

A new boom in African creative industries

One significant shift that was highlighted at Mobile Web East Africa by tech website MemeBurn is occurring in television and literature. Traditionally, both of these industries have suffered from lack of art-based, educational programmes in schools and from a lack of resources.

The CEO of BuniTV and Buni Media, Marie Lora-Mungai, spoke at the conference and said that having mobile access to films will revolutionise the space. She hopes that filmmakers will be able to distribute their work much further than before and create pieces for mobile consumption.

Likewise, the vice president of marketing at BiNu, Mark Shoebridge, talked about how mobile will affect reading habits. At Mobile Web East Africa, he claimed that 70% of female readers who are using World Reader, an app for smartphones, are reading over a thousand screen pages.

How this is going to affect data use in Africa

I think it’s safe to say that 991 million feature phones are going to bring about a radical change in data use in Africa. As we’ve mentioned before, changing data use doesn’t just make for a better mobile experience, the increased connectivity enriches consumers’ lives.

Of course, there’s going to be a vast range of different needs among customers in Africa. Communications service providers (CSPs) will be hard-pressed to customise service packages and personalise their interactions to accommodate these trends.

Africa is in an interesting position because of the sheer diversity of needs when it comes to data. It’s happening fast, too. Last October, for example, more Nigerians accessed the Internet on mobile phones than on desktop computers.

To really meet the demands of the next decade’s mobile customers, CSPs will have to invest heavily in contextual analytics that can segment customers based on their individual behaviours when it comes to mobile data use. This way, no matter how vast the customer base or different the use cases, it’s possible to meet individual needs and prepare for the future.

Kiva Loan Helped Angelina to Pay for Gardening Materials Needed in Her Business

We have shared the stories about Rosario in Peru and  Williams in Uganda and how working through Kiva.org is improving their lives. Our third story tells about Angelina who lives in Silang, in Philippines where she and her family have a farm. Silang with over 200 000 inhabitants is approximately 45 kilometres  south of Manila. With the continuous expansion of Manila, the municipality is now part of the Manila’s conurbation. The primary crops grown in the area are coconut, coffee, corn, banana, pineapple, and tree crops like mango, guava, and avocado. Fertile soils and abundant water sources make Silang suitable not only for common commercial crops but also for high value and exotic crops production. Agricultural products are marketed to Manila and neighboring towns.

A loan of USD 750 by Kiva helped Angelina to pay for gardening materials needed in her business like wire and baskets, and supplies such as seed and fertilizer. Profits from her business will  help her to sustain their daily needs and educational expenses of her children. She hopes to have a peaceful life and dreams to give her family a good future.

We invite you to take part in Comptel’s team and help us provide financial services to low-income individuals or to those who do not have access to typical banking services.

By today Angelina has already paid 16% of her loan.

Rosario’s Growing Business

We recently shared a story about Williams in Uganda and his success working through Kiva.org. Building upon that, Comptel is eager to share another story about the difference Kiva is making on communities across the globe.

Thirty year old entrepreneur Rosario lives in eastern Peru, right along the banks of the Ucayali River, a major tributary of the Amazon River. She employs two other people at her small business in Pucallpa, which buys and sells mobile phones. Rosario loves her work, particularly because she enjoys helping customers find a mobile phone and any accessories that meet their specific requirements.

Having successfully managed her business for eight years, Rosario recently found herself needing some financial assistance in order to keep up with increasing demand. Realising what an honorable, hard worker she is, Kiva decided to loan Rosario 2,000 Peruvian Nuevos Soles (USD $775) to help keep her business afloat. Thankful for Kiva’s support, Rosario is confident that her business will continue to grow and is now optimistically looking to the future.

We invite you to take part in Comptel’s team and help us alleviate some of the financial burdens carried by such hard-working individuals who often do not have access to typical banking services.

The Difference Community Knowledge Workers Make

In late 2012, Comptel began working with Kiva.org, a group focused on lending funds for projects around the world. As we begin the New Year, we’ve already seen the positive impact Kiva has on communities in need.

For instance, 27-year-old Williams in Uganda is married with a child, and provides for his family by selling crops and livestock. A loan of $325 helped him purchase a mobile phone, solar charging set and weighing scale.

This loan is part of Grameen Foundation’s AppLab programme, where Community Knowledge Workers (CKW) are provided with this equipment to become knowledge centres for their communities. Williams looks forward to becoming a CKW, so that he may provide vital farming information to his community – helping them access information to improve crop yields, connect with various markets and, ultimately, generate more income.

Williams can also conduct mobile surveys to help local organisations better meet farmers’ needs. CKWs make monthly salaries based on the number of surveys they collect, enabling them to repay Grameen for the equipment. With the additional money that Williams will earn as a CKW, he will save to buy another cow, as he dreams of having a large dairy farm.

We invite you to take part in Comptel’s team and help us provide financial services to low-income individuals or to those who do not have access to typical banking services.

Happy Holidays!

Each holiday season, we send our greeting cards electronically and donate the money saved from the traditional, printed cards to a charitable fund. In 2011 Comptel selected Plan International to receive our donation and in 2010 we worked with the Kileva Foundation.

This year, we have selected Kiva.org to receive our donation. Kiva.org is a non-profit organization with a mission to connect people through lending to alleviate poverty. Kiva lets individuals, groups and organizations to lend as little as USD 25 to help create opportunity around the world. We have provided loans to four individuals across the world; Williams in Uganda, Susima and Angelina in Philippines and Rosario in Peru. We invite you to take part to Comptel’s team and help us to help provide financial services to low-income individuals or to those who do not have access to typical banking services.

To all Comptel’s customers, partners, investors and friends, we wish you a peaceful and happy holiday season and look forward to another fruitful and cooperative year in 2013!

Succeeding in OSS Project Engagements – Insights from MEA

A learning organisation is the sum-total of the experiences of its people. At Comptel, we take great pride in having delivered on excellent projects, and the lessons we have learned through them are our prised possession. To a large extent, a distinctive pattern begins to emerge from the various projects and engagements conducted in each region. The Middle East and Africa (MEA) is no exception – its unique characteristics come through its many region-specific best practices, as well as the lessons and cultural themes we have accumulated through our commitment to our customers.

When it comes to the success of a project, leadership is an important aspect– from managing project charters and negotiating scopes, to resolving conflicts and involving stakeholders, to addressing resources and process implications. From my experience in MEA, I’ve seen six elements of success emerge that stem from strong leadership.

1. Trademarks
First, it is very important that a project be ‘trademarked’ both internally and externally. This should go hand-in-hand with the company’s corporate strategy and bear an inspiring slogan that attracts everyone’s contribution. Externally, with the customer, the trademark should bear in succinct terms the top 2-3 goals and objectives sought from the project. These should be posted at all times as the overriding milestones for all stakeholders, especially the customer. Internally, this should become more of a symbol that people can relate to in daily activities, when talking by the water coolers, for instance. Last, it should be attached to a group of influential sponsors, decision-makers and key participants, who can help develop an inclination across company ranks to make the project successful.

2. Strong Launch
The project should be kicked off like the Olympics. What I mean by this is that everyone should feel willing and ready to be a part of an exciting new journey. The most important thing is making sure that the project leadership is technology savvy and capable of understanding the complexities involved. A sense of control, responsibility, raw skill and effective management can only be inculcated by a project manager with extensive domain expertise. This, in my humble opinion, can be a deciding factor for a project’s success at the very outset. The project leader should then be able to recruit a balanced team and prepare for a strong launch.

3. Alignment
The project leader should have a comprehensive, organisation-wide understanding of the customer’s business units (e.g. commercial, network, human resources, finance), business processes (TM Forum standards can help), key stakeholders, parallel vendors and existing IT and systems landscape. This helps align the project to all of these various entities, so that any risk is taken care of proactively, and all parties/resources are marshaled to a collective success.

4. Clear Scope
It’s important that the project leader is actively involved alongside any sales staff in negotiating, understanding and freezing the scope of a project. The scope should be very clearly documented and have approval from all key stakeholders. This can involve details such as key objectives, success factors, project scheduling and budgeting, and risks. Again, it takes a project leader proficient in that domain to effectively record the different requirements, needs, assumptions and risks.

5. Communication
The project leader should be able to develop a very clear communications methodology to ensure transparency and a real-time window into the project’s workings. He or she should be able to identify ‘what messages’ need to be passed to ‘which stakeholders’ at ‘what intervals’ through ‘what methods and channels’ with ‘what level of severity’. The communications methodology should be able to integrate and harmonise the many artifacts of project communication including meetings, emails, progress reports, workshops and portals.

6. Motivation
Finally, and perhaps most importantly, the project leader should strive to be a true source of motivation, energy and inspiration for the whole team. A confident and independent leader can take hold of a project without letting control sink away to distant and irrelevant corners of the organisation. He or she should be bold enough to take calculated risks and use the team’s best energies to create win-win situations with the customer. An effective project leader manages and resolves conflicts through creative ideas and through the power of communication. A dynamic leader is imaginative enough to adapt the fabric of the project to the changing strategic needs of the customer and of his or her own organisation. Finally,  he or she should be able to culminate all of these leadership themes into closing the project, celebrating it like a hard-earned victory, learning from its course and moving on to the next challenge with a bigger, more self-assured poise.

These types of leaders deliver on strategic opportunities, resulting in increased revenues through cross-sell and up-sell opportunities and references, and ultimately happier customers.

Around the World

FierceWireless Europe…
Telefónica ready to spend €1.5B on UK LTE auction

It seems that the adoption of LTE is continuing to burgeon around the world. Telefonica, a Spanish-based telecoms operator, announced it would invest around €1.5 billion to acquire LTE spectrum licenses at an upcoming UK auction. The new mobile licenses are designed to bring fast download speeds to the country, and UK regulator Ofcom said it will auction the LTE spectrum for the 800MHz and 2.6 GHz bands with the expectation that operators will launch commercial service in 2013.

Interestingly, Telefonica has already been working closely with the UK markets, as the region represented 11% of the company’s total revenue in the first half of 2012. The company has also made strides to expand its services to other parts of Europe. In 2010, the operator also acquired LTE spectrum in a German auction, bidding a total of €1.379 million, on top of a €842 million bid last year to acquire LTE spectrum in its domestic market.

On another note, Telefónica’s is enjoying the benefits of China Unicom’s strong performance this year, as the company holds a 5% stake in the Chinese company.

Light Reading India…
Smart Strategies For Telco Growth

According to Jatinder Singh, the principal correspondent for Light Reading India, the telecoms industry in India has been in a crisis due to dwindling revenues and the saturation of the urban market. Therefore, it’s time operators reassess their strategy and begin to innovate and expand their services.

Singh points out several key areas in which operators can focus on to turn around the telecoms market. The first is to leverage 3G technology. More specifically, the price of 3G technology has begun to decrease, and the time is ripe to push this technology in hopes of bringing awareness to tier 2 and tier 3 cities.

Next, the article states that Value Added Services (VAS) have shown recent growth in the market, and telecom companies need to create an ecosystem in which operators and VAS companies share revenues.

Finally, to turn around the telecoms sector in India, operators need to focus on providing services to the enterprise businesses and expand into global markets. It’s noted in the article that the business landscape is dominated by small and medium business, but the enterprise space in the country is largely untapped.  Also, many analysts believe the expansion into other parts or the world, like Africa, is the key to the growth and success of the telecom companies in the future.

Fierce Wireless…
Is Unlimited Data Making a Comeback?

We highlighted a story in July that discussed how operators, like Comcast, are offering tiered data services to manage their network. Now Fierce Wireless reports that some operators are offering unlimited data plans to attack the tiered — and arguably unpopular — data pricing model.

Since the industry moved towards a tiered data pricing structure to manage bandwidth costs, both T-Mobile and Metro PCS have seen dramatic subscriber churn. In fact, each has lost 205,000 and 186,000 net customers respectively in the second quarter alone.

According to Mark Lowenstein, managing director of Mobile Ecosystem, unlimited data offerings can help wireless carriers get their foot in the door with consumers, and set them apart from their competitors. Unlimited data “starts the conversation,” he explained, noting that consumers will then evaluate the other aspects of the providers’ service.

Do you think tiered data plans are going to the wayside? Which do plan do you think will provide more success in the future?

Around the World

CNET…
South Korea hits 100% mark in wireless broadband

The Organization for Economic Cooperation and Development (OECD) has found that South Korea is the first country to surpass 100% penetration for wireless broadband, with 100.6 subscriptions for every 100 inhabitants. To reach this conclusion, OECD analysed the standard mobile phone high-speed wireless Internet and data-only wireless Internet subscriptions. Additionally, the agency looked at its own data, which was based on the rate of high-speed Internet access versus the South Korean population.

The OECD is comprised of 34 countries, and based on the organisation’s metrics, the average domestic penetration percentage for high-Internet mobile wireless is 54.3%. Of this, Sweden comes in a close second to South Korea at 98 wireless broadband subscriptions per 100 inhabitants. The United States rated 76.1 followed by Finland at 87.8 and Japan at 82.4. Of the additional OECM member countries, the lower end included Mexico, at 7.7, Turkey at 8.9 and Hungary at 12.9.

The Guardian…
Superfast broadband will be available in 90% of UK by 2015, says Ed Vaizey

Britain’s culture minister Ed Vaizey has said that 90% of the country will have access to extremely fast broadband by the year 2015. The government is working to install an infrastructure that would both ensure the service’s longevity and enable consumers who want to connect to a “really, really fast” network to upgrade, if they choose.

Vaizey stated that when it comes to the speed of the network, “… most people define [superfast broadband] around the 35 megabits a second (Mbps) speed but we have said that 100% of the country should have access to 2Mbps. To put that in context, for example, if you want to watch the iPlayer on your computer you would need about 1-1.5Mbps.” To support this endeavor, a total of £1.2 billion has been dedicated to the project, plus additional funding for pockets of cities where broadband connection is poor.

However, a recent report by the House of Lords warned that the government’s broadband policy should shift its focus from delivering speed, and instead emphasise greater access through a national broadband network. After a six-month investigation, the committee concluded Britain would need a better overall broadband network in order to keep up with future technologies. It has raised concerns about Britain’s network, and the possibility of expanding the gap between those communities with fast Internet access and those without.

FierceBroadbandWireless and GigaOM…
ABI: Mobile data traffic growth to plummet below 50% after 2015
Mobile data growth rate to decrease by 2015? Doubtful.

A recent ABI Research report predicts mobile data traffic will soon level off, with 2015 being the last year that volume will grow by more than 50% annually. Although the rate of growth will start slowing down, the global mobile data traffic will exceed a whopping 107 exabytes by 2017. The forecasted slower growth rate is attributed to technology like Wi-Fi offload and more intelligent smartphones. For instance, on-demand video content will be increasingly viewed on non-cellular networks, such as Netflix’s iOS application, which utilises Wi-Fi.

GigaOM, however, argues this outlook may be flawed. Journalist Kevin Tofel points out that Cisco has estimated only 22% of mobile traffic will be delivered over Wi-Fi in 2016 – leaving a lot more for networks to handle. Tofel also says that as smartphones become more affordable and networks improve their service, it’s likely that mobile users will increase, thus accumulating more mobile data traffic. What do you think? Will mobile data traffic taper off as ABI predicted or does GigaOM have it right?