WCA September 2017

Telecom news

take advantage of the free offers and stopped using the service when they had to pay for the privilege. Although tariffs continue to be minimal, RJio’s initial allure appears to be diminishing. Market researcher Velocity MR believes that only 18 per cent of RJio’s subscribers use their connections as a standalone SIM, as evidenced by mobile number portability (MNP) data released by Telecom Regulatory Authority of India. The number of subscribers asking to port their phone numbers remained stable after Jio’s launch: nearly six million subscribers submitted MNP requests in March 2017 and 4.96 million in April 2017, compared with 4.91 million MNP requests in July 2016 and 5.1 million in August. RJio continues to attract more customers than any of its rivals, but the steady fall in numbers must offer encouragement to longer-established providers such as Bharti Airtel Ltd and Vodafone India. Samsung Electronics has begun production and shipping at its new semiconductor fabrication facility in Pyeongtaek, south of Seoul, South Korea, said to house the largest single fabrication line in the industry. Production focus will be on the company’s latest three-dimensional V-NAND flash chips, and will help to meet semiconductor demand in the fields of Internet of Things, artificial intelligence, big data and automotive technologies. By 2021 the company plans to have invested 30 trillion Korean won in the Pyeongtaek facility with a view to further expanding the semiconductor fabrication capacity. Samsung is also committing six trillion Korean won to its Hwaseong plant to install new infrastructure, including extreme ultra violet (EUV) equipment, and is reviewing plans to establish a new OLED (organic light-emitting diode) manufacturing site in Asan, South Korea, by 2018, with a second semiconductor fabrication line in Chip production begins in Seoul

able to deploy rapidly within a mature 4G ecosystem. 5G investment is likely to follow a more gradual path, over a longer timeframe, with capital expenditure not expected to account for more than 25 per cent of operator revenue prior to commercial launch. In the early phase, 5G networks will concentrate on boosting the capacity of 4G networks to support increasing cellular data traffic demands. 5G will also enable enhanced mobile broadband (eMBB) services such as 4K/8K Ultra-HD video, augmented reality and virtual reality applications. Although some services will require devices with new form factors, the smartphone is expected to remain the principal 5G interface at launch. The first 5G smartphones are likely to be priced at a premium to 4G models, as they will require an enhanced chipset and RF module supporting multiple sub-6GHz, and possibly extremely high frequency bands (mmWave), as well as, potentially, a 4K or 8K screen. Operators are collaborating with the broader mobile ecosystem and vertical industry players to develop new services and business models that fully exploit 5G networks. 5G will support applications that require massive scale, or that are mission-critical and demand low latency. Key vertical markets for 5G applications are expected to include energy and utilities monitoring, security, transport, finance, healthcare and industry. Pre-paid segment faces disruption India’s mobile providers are facing a potential loss of revenue following disruption surrounding the implementation of a new Goods and Services tax system. The Economic Times reported that many distributors and retailers were unable to register under the new scheme by 1 st July, preventing the outlets from selling top-ups. Pre-paid customers make up around 90 per cent of India’s wireless subscribers and provide over 80 per cent of the industry’s revenue. A large number of pre-paid customers recharge their accounts with small sums on a daily basis and the disruption could potentially leave many without service.

The Economic Times added that even where distributors were able to complete registration, customers faced additional uncertainty over tariffs while retailers awaited updated information from cellcos detailing how much credit customers would receive for their top-ups. Commenting on the disruption, Rajan Matthews, director general of the industry group Cellular Operators Association of India (COAI), said: “All policy changes of this size are bound to face teething problems. As long as the government and industry work together for the greater good, we are certain that all issues will get resolved.” In a related development, India has added ten per cent basic customs duty (BCD) on mobile phone imports to maintain support for the domestic manufacturing industry. Under the previous tax structure imported smartphones cost an additional 11.5 per cent over Indian-made handsets, but the new tax system eliminated any difference between locally made and imported devices. The new BCD ensures the continuation of the incentive for domestic manufacturers. Subscriber slowdown as excitement fades Light Reading reports that Reliance Jio, launched last September, has witnessed a sharp fall in subscriber additions and a drop in the number of active subscribers to its service. Controlled by Indian billionaire Mukesh Ambani, RJio attracted 100 million customers within five months of entering the market, chiefly by offering Indian consumers free voice services for life and free data services for three months. Subscriber numbers dropped to 72 million, however, when charging was introduced. Subscriber growth has fallen for several consecutive months, but more worrying than the decline is the drop in active subscribers. According to a recent report from Goldman Sachs and ICICI Securities, RJio added just 400,000 active subscribers in April, compared to gains of 16 million in September and October 2016. A key reason for the drop is that many bought RJio SIM cards purely to

Xi’an, China. Gill Watson Features Editor

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Wire & Cable ASIA – September/October 2017