WCA March 2018

Telecom news

The action reversed the FCC decision in 2015, during the Obama administration, to protect Americans as they have migrated to the Internet for most communications. It would take some weeks for the changes to go into effect, an interim during which groups opposed to the action were expected to sue the agency to restore the net neutrality regulations. Those suits could take many months to be resolved. Ø The South Korean wireless operator SK Telecom announced that it has successfully deployed 5G-PON (passive optical network), a next-generation technology for distribution networks that can deliver both LTE and 5G communications services. Distri- bution networks connect base stations with remote units and antennas installed at the premises. The mobile communications network is a collection of inter- connected networks throughout South Korea. Unlike conventional distribution networks, requiring different types of network for 3G, LTE and broadband access, 5G-PON delivers multiple com- munications services through a single network. SK Telecom said it expects its solution to facilitate the delivery of broader coverage for a 5G rollout by means of installed base stations and antennas, without additional networks. The company noted that 5G-PON, operating without an additional power supply, requires smaller devices and equipment than existing distribution technology. Ø According to the Singapore-based technology market analyst firm Canalys, shipments of virtual reality (VR) headsets are showing no signs of slowing, as the quarterly total exceeded a million units for the first time in Q3 2017. Japan’s Sony took the lead, followed by Oculus (USA) and HTC (Taiwan). Collectively, Sony, Oculus and HTC made up 86 per cent of the total market in the quarter. Because VR adoption is highly dependent on price, Canalys reported (27 th November) that Oculus increased shipments of its Rift headsets by cutting the price to $399 for a limited time. Taking note of the boost to VR adoption from Japan’s unique gaming and entertainment

culture, Canalys also noted that the segment has benefited immensely from the emergence of “VR experience zones” across the country, such as in Shinjuku, Tokyo. Ø Deutsche Telekom and EWE AG will invest $2.4 billion to build a superfast glass-fibre broadband network in northwestern Germany, the companies said on 13 th December. Under a memorandum of understanding, the partners in the 50-50 joint venture said in a statement that they expect to commence operations by mid-year. The long-term plan is to connect more than a million households in the states of Lower Saxony, North-Rhine Westphalia and Bremen over the next decade. Although it is Europe’s biggest economy, Germany has been slow to upgrade its Internet infrastructure and lags behind many other developed countries in terms of household access to a fast glass-fibre connection. According to research by the Bertelsmann Foundation, cited by Reuters, only seven per cent of the 40 million German households have access to a such a connection. Ø The latest mobile spectrum auction held by the Australian Communications and Media Authority (ACMA) saw previously unclaimed spectrum across a number of mobile bandwidth ranges snapped up by the country’s largest mobile carriers. “There was good competition across the 1,800 MHz, 2 GHz, 2.3 GHz and 3.4 GHz bands,” ACMA chair Nerida O’Loughlin said. The Australian Radio Network (ARN) reported on 14 th December that a total of approximately A$92.6 million will be paid by bidders. Telstra agreed to pay A$72.5 million for its additional spectrum, followed by Vodafone (A$7.2 million), Optus (A$6.5 million), NBN (A$4 million), and – Australia’s latest mobile network entrant – TPG (A$2.3 million). Noting that it had already, over 15 years, invested more than A$3.4 billion in its wireless spectrum portfolio, Telstra said that some of the spectrum acquired in the auction would “support the early evolution of 5G technology beyond the trials [we] have planned for 2018.”

have to continue to expand their footprints. They must also place even more emphasis on providing amplified mobile broadband coverage while introducing 4G to as many parts of the world’s developing countries as they possibly can. “This will be great for subscribers,” Mr Warwick wrote. “But operators will have to find fresh sources of revenue from innovative and compelling new services and apps.” The alternative, he said, is to live with the fact that average revenue per user (ARPU) will continue to decline as operators are forced to offer discounted data-rich packages and bundled services. “And that way, sooner or later, lies disaster,” warned Mr Warwick, citing EIU data on ARPU across its 60 markets. Ø In short, “the days when operators could rely on revenue from a reliable voice and SMS service are long gone. Competition from over-the-top (OTT) providers such as WhatsApp, Skype and Netflix has backed the telecom sector into a corner. Now it faces a new challenge from app developers, whose business interests are expanding rapidly.” In what Mr Warwick termed “a silver lining pocked with rust,” the EIU perceives an upside for telecoms, provided they can adapt to competition from over-the-top providers by making alliances; forging partnerships; and developing clearly differentiated services and a much wider range of relevant and appealing mobile apps. Elsewhere in telecom . . . Ø The US Federal Communications Commission (FCC) voted on 14 th December to dismantle landmark rules regulating the businesses that connect consumers to the Internet. By doing so, according to the New York Times , the FCC “[granted] broadband companies the power to potentially reshape Americans’ online experiences.” The agency scrapped the net neutrality regulations that prohibited broadband providers from blocking websites or charging for certain content or for higher-quality service. Washington will also no longer regulate high-speed Internet as if it were defined as a utility, such as phone service.

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Wire & Cable ASIA – March/April 2018

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