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Vol. 10 No.

12 December 2006

In This Issue...
Asia-Pacific VoIP service revenue PowerTel launches
($ billions) wholesale ASDL2+ services
in Australia..................... 2

14 ShinSat to bid to acquire


license for mobile-phone
12 service in Bhutan ........... 3

10 China Netcom to switch


from H.264 to AVS for
8 IPTV .............................. 4

6 Huawei unveils commercial


IMS VCC solution .......... 5
4
Indonesia’s Telkom to take
2 part in fiber-optic tender
valued at $1.5 billion ..... 6
0
2005 2006 2007 2008 2009 Five years after its launch,
W-CDMA becomes leading
Source: Infonetics Research
technology in Japan ...... 7
ACROSS THE REGION NEC, Juniper to extend their
NGN partnership ........... 8
Redknee to expand partnership with Digicel Pacific
Redknee plans to expand its partnership with Digicel Hanaro agrees to acquire
Pacific in the South Pacific, and with a sister firm to Digicel Onse broadband subs ... 9

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Asia Pacific Telecom Newsletter December 2006

Group in Central America and the Caribbean. In October, the company had predicted
Digicel Samoa will use Redknee solutions to a 2 percent to 2.5 percent growth in EBITDA for
offer wireless services in Samoa. the period up to 2009-10. The annual EBITDA
Digicel uses the Redknee Turnkey is now expected at 46 percent to 48 percent,
Converged Billing Solutions, IP Charging compared to the previous estimate of 50 percent
Solution, Enhanced Messaging Gateway, and to 52 percent.
USSD Gateway to offer prepaid and postpaid
services to mobile users in over 20 markets in Hutchison introduces cheap mobile data
Central America and the Caribbean. modem in Australia
Lucas Skoszkowski, CEO of Redknee, Hutchison has unveiled the first ever
said that the Pacific Region presented good express-card format mobile data modem in
opportunities to Digicel and the company would Australia. Though Hutchison is offering its data
look forward to replicating the success achieved plans with 2 Gigabytes at an attractive rate of
buy its sister company in the Caribbean. $69 per month, a full-quota usage outside its
3G network could force users to pay above
AUSTRALIA $3,000. Hutchison is offering three plans for its
3G services: $29 a month for 200 Megabytes,
PowerTel launches wholesale ASDL2+ $49 a month for 1 Gigabyte, and $69 a month
services in Australia for 2 Gigabytes. However, excess data and data
Australian operator PowerTel has for uploading and downloading would cost $1.65
unveiled wholesale ASDL2+ services and per Megabyte. Hutchison offers 3G in big
finalized the deal to offer connections to centers on the network shared by Telstra. It has
Westnet, an ISP based in Perth. roaming access to Telstra’s GSM/GPRS
PowerTel’s ASDL2+ network uses the network outside those areas. Thus, if the modem
extensive ASDL2+ network created by its ISP is not able to connect with a 3G base station in
partner iiNet. PowerTel had taken a 14.9 percent the coverage area, the rate of $1.65 per
stake in iiNet earlier this year. Fixed-line Megabyte will apply. But a Hutchison
company Telstra is also likely to launch ASDL2+ spokesman clarified that the card would have
services very soon. LEDs to indicate its communication mode and
could be configured to operate on the 3G
Telstra CE announces expectations of network only.
growth in earnings in H2 of 2006-07
Sol Trujillo, chief executive of Telstra, said BigAir to offer broadband speeds almost 50
at the company’s Melbourne AGM that the times faster than ADSL2+
company expected to increase earnings in the BigAir Limited intends to increase its
second half of 2006-07. broadband presence in Australia, amid the
EBIT were expected to fall by 17-20 differences between telecom giant Telstra and
percent in the first half and rise by 37-40 percent the Australian regulator. Over the next year,
in the second half. The company is in the second BigAir would offer its next-generation wireless
year of its five-year revamp exercise. Last week, broadband services with symmetric speeds of
the company started high-speed broadband around 1Gbps, which is 50 times speedier than
services but complained that regulatory the highest download speed, and around 1,000
restraints from the Australian Competition and times speedier than the standard upload speed
Consumer commission restricted it to existing on ADSL2+. The firm also intends to build
competitive services. another 10 wireless base stations over the next
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Asia Pacific Telecom Newsletter December 2006

year to meet the increasing needs of its BANGLADESH


business-grade broadband services. BigAir’s
annualized revenue reached $9.5 million, Ericsson signs four-year deal with Warid
compared to the previous full year’s result of Telecom
$6.9 million. Ericsson has signed a four-year contract
with Bangladesh-based Warid Telecom for
Internode launches ASDL2+ Annex-M managed services like rolling out the operator’s
services in Australia GSM/GPRS in Dhaka and a network expansion.
Australia-based ISP Internode has Earlier this year, Ericsson signed two deals to
launched ADSL2+ Annex-M services. It offers supply Mobile Softswitch, backbone
broadband upload speeds of around 2.5Mbps. transmission equipment, and packet core for
Internode started the trial of Annex-M through Warid Telecom’s GSM/GPRS network in various
Digital Subscriber Line Access Multiplexer parts of the country. Ericsson will be responsible
(DSLAM) technology in July. It is now offering for the designing, operations, rollout,
the service without extra cost to its SOHO and management, and maintenance of the
Business clients on supported exchanges. Bangladeshi operator’s network.
Internode does not intend to provide this service
to residential users. BHUTAN

Telstra International launches Asia’s first ShinSat to bid to acquire license for mobile-
enterprise VoIP solution with distinctive phone service in Bhutan
classes of service Thailand-based ShinSat is one of the four
Telstra International (Telstra) announced companies that will bid for a license for a private
the launch of “Global Voice over IP” (Global mobile-phone service in Bhutan. The officials
VoIP), marking its strategic move to provide IP of the Bhutan Infocom and Media Authority
telephony (IPT) and voice services to (BIMA) seem to suggest that the auction will take
enterprises beyond the Australian market. place in December. Bhutan had reportedly
Telstra’s Global VoIP is based on an award- invited AIS, Thailand’s biggest cell-phone
winning next-generation network (NGN) and operator, to take part in the bid, but Shin
customer premises equipment (CPE), while its assigned the deal to ShinSat. Shin is the parent
three voice Classes of Service (CoS) and company of AIS. Three of the four short-listed
imbedded IP monitoring systems sets a new firms are joint ventures. BIMA has categorically
industry standard for terminating IP-originated stated that the Bhutanese partner of any such
voice traffic, maintaining quality and network joint venture must hold a share of at least 51
security. percent. The winner of the 15-year license will
Telstra’s Global VoIP can lower need to pay 25 percent of it straightaway; the
termination costs by over 50 percent compared remainder can be paid throughout the operating
to traditional telephone services, while saving tenure.
ongoing maintenance and operational costs
associated with traditional PBX systems. While CAMBODIA
cost-savings is one key driver for IPT adoption,
companies are also now using IPT and VoIP as Samart looking to acquire major stakes in
key communication tools to improve business two or three companies by this year’s end
resiliencies, increase team collaboration, and Samart Corporation is planning to
enhance communication needs. acquire major stakes in two or three telecom
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Asia Pacific Telecom Newsletter December 2006

firms by the end of this year. Samart will also Eastern Guangdong province ranging from
bid for its second power plant in Cambodia. If Shenzhen to include DongGuan and Huizhou
approved by the Cambodian government, the by December 2006.
project would warrant an investment of $273 Nokia and Guangdong Provincial
million. Samart announced its new subsidiary, Government signed a MoU in October 2006 in
Vision and Security System Co., to address the Finland, which names Nokia as an important
requirement for Internet Protocol-based security player in the information industry development
systems. Samart is likely to earn consolidated of Guangdong province.
revenue of $820 million this year, compared to
the forecast $684 million. For the first nine Number of fixed-line users in China reaches
months, the company earned $656 million 370 million
consolidated revenue. The company aims to China’s Ministry of Information Industry
earn $13.7 million in 2007, $21.9 million in 2008, stated that the number of landline users in China
and $32 million in 2009. Its consolidated nine- had reached 370 million. The nation’s mobile-
month net profit was $49 million on revenue of phone base reached 440 million, taking the
$667 million. overall telephone volume to over 800 million.
The MII also said that the Chinese telecom
CHINA industry grew from July to September.
Revenues from the postal and telecom business
Nokia signs contract with Chinese reached $67 billion in the period, an increase of
Guangdong MCC on GPRS packet core 11 percent compared to the same period a year
network expansion ago. Total subscribers reached 280 million in
Nokia has announced the signing of a September and are likely to go past 300 million
GPRS packet core network expansion contract by this year’s end.
with Guangdong MCC Ltd., which will make
Nokia the leading GPRS provider for the China Netcom to switch from H.264 to AVS
company. As per the terms of the contract, Nokia for IPTV
will provide its intelligent GPRS packet core China is conducting trials for IPTV in five
solution for the eighth GPRS expansion of cities, of which one trial uses AVS, whereas the
Guangdong MCC. others use H.264. Netcom said that it would
The core solution consists of SGSN, change over to AVS from H.264 after the codec
Nokia Flexi Intelligent Service Node, and Nokia trials finish.
Charging Gateway. The solution also supports This month, the Chinese government will
the high-tech content charging functionality and begin another round of tests for AVS, which
provides an easy migration path to Nokia Combi should finish in January 2007. Netcom said that
SGSN, as the 3G access support capability can it would favor equipment suppliers who agree
be obtained with simple memory and interface to upgrade its system with AVS free of cost in
upgrades. return for potential long-term contracts. In
The multivendor, multitechnology Nokia addition, Netcom plans to use AVS-based IPTV
NetAct network and service management in 20 cities in 2007, and expects 6 million IPTV
system, including Nokia NetAct Traffica, will users in five to seven years, or 40 percent of its
support the network; Nokia will also provide present broadband users.
network planning, implementation, and The technical performances of H.264 and
integration services. The network will be serving AVS are believed to be almost the same.
more than 11 million data subscribers in the However, some chipmakers are skeptical.
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Asia Pacific Telecom Newsletter December 2006

Unlike MPEG-4/H.254, AVS might not charge Hutchison Whampoa plans to launch X-
participation fees for using codec in subscription- series fixed-line broadband service
based services, title-by-title duplication of Hong Kong’s Hutchison Whampoa is
content, or free over-the-air broadcasts. planning to launch fixed-line broadband
services, called X-series in Britain, next month.
China Mobile, China Netcom, and China The service will include features like
Telecom sign deals to purchase TD-SCDMA home TV on mobiles, Web calling, instant
handsets messaging, and more for a flat monthly fee.
China Mobile, China Telecom, and China Pricing of the X-series will be similar to that of
Netcom have reportedly signed deals with 15 fixed-line broadband.
mobile-phone manufacturers to purchase It will be launched in eight other 3G
around 9,000 TD-SCDMA mobile phones. It markets in early 2007.
forms a part of a trial for the homegrown 3G Initially, it will be available on two
technology. handsets: the Nokia N93 and the Sony Ericsson
The sale price for the mobile phones is W950.
$315 per handset. Twelve of the 15 The X-series will allow customers to
manufacturers happen to be domestic firms, make unlimited calls over the Web using Skype
which include Levono, ZTE, Datang, LG, software through their mobiles.
Samsung, and Motorola. The telecom conglomerate has signed
These three companies are intending to deals with various companies like Sling Media,
give orders for an additional 10,000 TD-SCDMA Skype, Yahoo!, Google, Nokia, eBay, Orb,
mobile phones next month. Microsoft’s MSN, and Sony Ericsson for the
service.
Uganda to receive a grant of $120 million
from Huawei Huawei unveils commercial IMS VCC
Uganda will receive from China a grant solution
of around $120 million for developing the Huawei has launched a commercial IMS
national information communication technology (IP Multimedia Subsystem) VCC (Voice Call
(ICT) backbone infrastructure. Continuity) solution along with multinode smart
On Chinese Prime Minister Jiabao’s visit device solution provider E28 to help operators
to Uganda, an e-Government project MoU enjoy the vast benefits of fixed-mobile
(Memorandum of Understanding) was signed convergence.
with Huawei Technologies, the biggest telecom This solution permits the users to switch
equipment manufacturer in China. State Minister between different types of networks and is 3GPP
for ICT Mr. Allintuma Nsambu said that this grant compliant. Its intricate features allow dual-mode
would help in providing fast telecom services at users to roam between cellular GSM/CDMA/
less costly rates. UTMS and Wi-Fi/WiMAX.
The government intends to create a new The director of Huawei’s IMS product
ICT backbone to trigger new economic growth, line, Mr. Zha Jun, said that IMS was a significant
improve trade, and offer better communication infrastructure for next-generation fixed and
choices to the Ugandans. mobile convergent networks.
Huawei will do the job of installing, Huawei will provide all the network
supplying, and putting the technologies in place equipment, including DTF and DSF of IMS
to set up an e-government system and extend domain, IMS core, and related CAMEL
the communications network. application logics (in CS domain).
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Asia Pacific Telecom Newsletter December 2006

New World Mobile Holdings to sell its 23.6 phone networks for transmitting calls. The first
percent stake in mobile joint venture in installation will be done at the management
Telstra office building in Tianzhu Zone, Blue Sky
New World Mobile Holdings would be Mansion. Eventually it will be applied to big and
selling its 23.6 percent stake in a Hong Kong- midsized enterprises.
based mobile-phone joint venture with Beijing QTC is also planning to build
Australian-based Telstra to New World broadband phone networks with the largest
Development, its parent firm. The Dow Jones covering area in a period of eight months. The
report stated that New World Holdings plans to company expects to increase its annual sales
sell the stake for $321 million. by about $1.5 million.
After selling its stake in CSL New World
Mobility Group, New World Mobile plans to pay Intelsat renews China Central Television
a dividend of $0.16 per share to its shareholders. contract for global programming distribution
The report also said that Simon Lo, a non- Intelsat announced that China Central
executive director of New World Mobile, has Television (CCTV), the national broadcaster of
consented to buy New World Development’s the People’s Republic of China, renewed a
58.04 percent stake in its mobile unit. multiyear contract for the global distribution of
its programming. CCTV is also utilizing Intelsat
Hong Kong’s telecoms regulator OFTA for its international backhaul transmission of the
grants EFTNS license to Tricom Asia Asian Games from Doha, Qatar, back to Beijing.
Hong Kong-based telecom regulator A long-standing customer since the
OFTA has granted an External Fixed launch of PAS-2 in 1994, CCTV became the
Telecommunications Network Services world’s first global Mandarin Chinese television
(EFTNS) license to Tricom Asia, enabling it to service when it expanded its services
operate telecom services through VN-HK, its internationally via the PAS-3 satellite in 1995.
1,050km undersea fiber-optic network, which Intelsat currently provides full-time
links Hong Kong and Vietnam. Since China program distribution services for CCTV via its
Telecom won a license in 2005, this is the lone PAS-1R Atlantic Ocean Region satellite, PAS-9
EFTNS license in Hong Kong. Tricom Asia is Atlantic Ocean Region satellite, and PAS-10
planning to invest in telecom solutions in the Indian Ocean Region satellite. Intelsat also
emerging markets in Asia-Pacific. It had formed provides CCTV with capacity on its Galaxy 3C
its Hong Kong-based division in May 2003. satellite for direct-to-home (DTH) services in the
United States. This renewal contract also
Beijing Quan Tong Chang to launch expands CCTV’s C- and Ku-band capacity
‘Intragroup Call’ agreement.
Beijing Quan Tong Chang Information
Services (Beijing QTC) will soon be introducing INDONESIA
a broadband phone service called the
“Intragroup Call” in the Beijing Tianzhu Airport Indonesia’s Telkom to take part in fiber-optic
Industrial Zone. The company expects to make tender valued at $1.5 billion
a profit of $1.5 million every year. Tianzhu Zone PT Telekomunikasi Indonesia (Telkom)
and Beijing QTC will work in partnership to will participate in the nation’s fiber-optic network
launch this “Intragroup Call” promotion. The construction tender, which is being valued at
company intends to install the broadband phone $1.5 billion. It is likely to be launched in October
platform using the Internet, replacing regular 2007. Telkom managing director Arwin Rasyid
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Asia Pacific Telecom Newsletter December 2006

said that he was still looking out for the best commerce, data, voice, and messaging in one
possible options for Telkom to participate. He system in real time, thus decreasing CapEx and
said that one of the aims of the company would OpEx. Bakrie’s monthly rate of customer churn
be to enhance the capacity of its network and averages 4 percent, as opposed to the industry
also lend support to increasing demand for its average of 8 percent to 11 percent.
subsidiaries like Telkomsel and PT Telkom
Vision. Telkomsel would play a huge role in the JAPAN
building the fiber-optic network.
Softbank and News Corp. to bring MySpace
Nokia and Indosat sign WCDMA 3G/HSPA to Asia
managed services deal Japanese firm Softbank and News Corp.
Nokia and top Indonesia-based operator plan to bring MySpace, the Internet social
Indosat have signed a WCDMA 3G/HSPA networking site, to Asia. MySpace KK will be a
managed services contract to allow Indosat to 50-50 joint venture. Each firm would invest $5.0
enable wireless broadband services and 3G million in the new firm. MySpace’s international
services. operations include Britain, France, Germany,
Nokia would undertake the task of Australia, and Ireland. Japan’s social networking
operating the network. Nokia will deliver Indosat sites are believed to have over 10 million users.
turnkey services that include network planning, Softbank’s subsidiary Yahoo! Japan Corp.
implementation, and integration of this WCDMA provides social networking sites, though
3G/HSPA network. Softbank does not involve itself in the
It will also build, operate, and transfer the operations. News Corp. acquired MySpace
Inodsat 3G network. As part of the deal, Nokia’s when it purchased Intermix Media Inc. for $580
3G device will also be provided. The network million in 2005.
would be ready for launch by November 2006.
Nokia, which currently has 65 WCDMA 3G Five years after its launch, W-CDMA
customers, would support the operators to becomes leading technology in Japan
improve their services and reduce expenses. It NTT DoCoMo launched W-CDMA in
is also an important managed services player, Japan in October 2001, and it was joined by
with around 60 managed services contracts Softbank Mobile after 14 months. Now, five
across the world. years after W-CDMA was launched in the
country, the standard has gone on to become
Bakrie chooses Redknee’s messaging and Japan’s topmost technology, with subscribers
prepaid solution to power its TalkTime reaching 34.75 million by the end of October
service 2006. PDC, the technology that remained at the
Bakrie Telecom has chosen Redknee top spot for 11 years (launched in September
Inc.’s messaging and prepaid voice solution for 1995), claimed the second spot, with 34.49
powering its TalkTime service branded by Esia, million users by the end of October. The CDMA
SMS, and related marketing campaigns. standard claimed the third spot, with 24.89
Redknee said that Bakrie could offer advanced million.
services and attract new users, reduce churn, The mobile number portability (MNP)
and increase revenues after engaging its system was introduced in Japan by October, and
solution. Redknee’s solution claims to converge the monthly additions showed great success for
all charging, billing, transaction, rating, and KDDI, while DoCoMo was the greatest loser,
provisioning for supported services like m- losing 110 points of market share.
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Asia Pacific Telecom Newsletter December 2006

DoCoMo selects Motorola and NEC for super based fixed-mobile convergence (FMC)
3G network solutions. The pair will target the fixed, cellular,
Leading Japanese cell-phone operator and wireless Internet access providers with their
NTT DoCoMo has selected Motorola and NEC IMS-FMC products.
for supplying handsets for its “super 3G The two firms have been cooperating
network.” since 2001; they recently worked on a project
The network will be an upgrade to the to develop secure VoIP solutions aimed at the
operators; current 3G infrastructure and would Japanese market based on NEC’s VoIP
allow faster uploading and downloading of data solutions and the network-security platforms of
like videos and music clips. Jupiter Networks. They launched two plans to
Earlier this week, DoCoMo Technology develop NGN solutions jointly this March.
President Kouta Kinoshita had said in a news
conference that the operator had chosen Oki launches Iris Recognition Technology
equipment vendors, without giving away the for Mobile Terminals in Japan
names. Oki Electric has developed Iris
DoCoMo normally buys handsets from Recognition Technology for Mobile Terminals.
domestic suppliers like NEC and Matsushita Iris Recognition is an authentication technology
Electric Industrial, though it has included other that uses the iris pattern in the eyes. It is based
vendors for the existing network, including on OKI’s original iris recognition algorithm that
Finland-based Nokia. DoCoMo has spent uses standard optical cameras equipped in
around $23.8 billion on its 3G network in the mobile terminals.
last six years. The new Iris Recognition Technology
uses a standard camera embedded in a mobile
NEC reports higher loss in fiscal first half terminal. As new services like payments by cell-
NEC suffered higher losses during H1 phone are becoming more common, users and
2006 compared to H1 2005, due to a fall in manufacturers have been emphasizing the need
mobile handset and PC sales and the of personal authentication in such devices to
restructuring costs for its chip operations. NEC disallow misuse when the terminals get stolen.
reported a group net loss of $62.7 million during OKI intends to make this product commercially
the half-year ending September 30, compared available by March 2007.
to the $12.7 million loss a year ago. Sales for
the fiscal half-year fell 2.5 percent to $18.6 billion Excite Japan and Media Lead sign content
from $19.5 billion. NEC expects a group net distribution agreement, will work with Smart
profit of $152.5 million on $39.8 billion sales for SMS Corp. for fulfillment and distribution
the fiscal year through March. NEC estimates Smart SMS Corp.; Excite Japan, one of
an operating loss of $424 million concerning its Japan’s largest portals with over 17 million
cell-phone business in the fiscal year till March. subscribers in Japan alone; and Media Lead
LLC, a mobile content publisher, have signed
NEC, Juniper to extend their NGN agreements to distribute content throughout the
partnership Asia-Pacific region.
Japan-based telecom equipment For North America, Media Lead will work
manufacturer NEC and US-based Juniper with Smart SMS Corporation of Los Angeles for
Networks have expanded their current next- distribution and fulfillment of its content, which
generation network (NGN) partnership to focus provides the mobile fulfillment and marketing for
on developing IP multimedia subsystems (IMS)- this market.
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Asia Pacific Telecom Newsletter December 2006

KOREA Samsung unveils its latest mobile phone,


SPH-900 Deluxe MITs
Pantech signs deal with Orange to supply Samsung Electronics has exhibited its
UTMS phones latest cell-phone, the SPH-P9000 Deluxe MITs.
South Korean handset vendor Pantech The SPH-P9000 is a convergence tool that can
has signed a key deal with France Telecom’s provide voice and multimedia data
Orange to offer UTMS phones in France. communications via Mobile WiMAX technology.
Orange is the largest mobile service carrier in The SPH-P9000 is a PDA-based device that
the country and has a user base of 23 million. utilizes Mobile WiMAX and CDMA EV-DO
The U400 has a video telephony function with connectivity. Users can have wireless access
a 1.3-megapixel camera and a VGA camera; it to the Internet through Mobile WiMAX
also has a 1.9-inch 260,000-color TFT and 72 connectivity. This handset also supports
polyphonic ringtones. Dennis Cheong, president Microsoft Windows XP OS. The 5-inch WVGA
of Pantech, Europe, said that this partnership screen is suitable for movie viewing, and the
with Orange proved the credibility of Pantech in 30GB hard drive can store music, movies, and
providing advanced mobile technologies. documents. Kitae Lee, president of the
Pantech hopes to achieve its goal of becoming Telecommunication Network Business at
a leading handset manufacturer in Europe. Samsung Electronics, said that the SPH-900 is
Celine Thomas, head of product marketing at just one of the few Mobile WiMAX convergence
Orange, echoed the sentiment. Pantech aims devices to be introduced globally. It will be
to be among the top five cell-phone brands in launched in Korea in H1 2007.
France.
Samsung to launch new 1GB S-SIM
Hanaro agrees to acquire Onse broadband Samsung will unveil a SIM card with a
subs 1GB memory, called the S-SIM. The 1GB S-
South Korea-based broadband service SIM uses a system-in-package (SiP) technology
provider Hanaro Telecom (Hanaro) has signed that offers high-Gigabit-density NAND flash
a deal to acquire Internet customers from its rival memory, while the size of the SIM card remains
Onse Telecom. the same. It supports MultiMediaCard and USB
Hanaro agrees to pay $265 to Onse for interfaces to allow fast transfer of large data
each user who moves. Hanaro hopes to add volumes. Dr. Chil Hee Chung, senior vice
almost 140,000 broadband subscribers through president of the chip card and microcontroller
this deal. Onse had 296,894 cable modem development team at Samsung Electronics, said
broadband users at the end of June 2006 that this high-performance S-SIM proved
(market share of 2.3 percent); Hanaro had 3.6 Samsung’s technological leadership to offer the
million broadband customers (28.2 percent best technology for the IT and mobile
market share) by the end of June 2006. environment. Samsung introduced the industry’s
Incorporated in July 1996, Onse entered the first Giga-level density card, 1GB S-SIM, last
country’s ILD telephony market in October 1997. June after developing the 128-Megabyte S-SIM
In August 2000, it launched its broadband ISP in 2004.
“Shinbiro sshark,” via its fiber-to-the-curb
(FTTC) infrastructure. It applied for bankruptcy LG Telecom penalized with $5.5 million fine
in April 2003. Onse was under control of the for illegal handset subsidies
Suwon District Court till late September 2006, The Korea Communications Commission
when Ubistar acquired it for $73 million. (KCC) and Ministry of Information and
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Asia Pacific Telecom Newsletter December 2006

Communications (MIC) has asked LG Telecom Samsung to launch a new mobile TV phone
(LGT) to pay a fine of $5.5 million for issuing in Italy
illegal handset subsidies. Samsung intends to launch a new mobile
Offering financial incentives to customers TV phone (SGH-P930) in the Italian market in
pursuing particular services along with a new December via Telecom Italia. This phone
mobile was considered illegal between June combines the latest mobile TV technology with
2000 and March 2006. MIC has booked three HSDPA technology for high-speed data
national cellular operators for evading these transmission. Samsung has provided a mobile
regulations on several occasions. TV phone (SGH-P920) to Telecom Italia since
However, MIC eased these regulations May 2006. The P930 phone has a horizontal
from March 27, 2006. LGT, KTF Corp., and SK LCD screen for optimal mobile TV viewing and
Telecom could offer financial incentives up to supports stereo speakers. It also features a
$208 to users, confining them to an operator megapixel camera and a VGA camera for video
for over 18 months. telephony. Samsung leads in all three standards
But carriers have to seek approval for the of the mobile TV market by providing the world’s
rates. MIC fined these three operators for a total first S-DMB and T-DMB phones in Korea,
of $11.5 million within a month of relaxing the Europe’s first T-DBM in Germany and DVB-H
previous regulations, for issuing subsidies phone in Italy, and by demonstrating the
before the new scheme was approved. Three MediaFlo mobile TV technology at CTIA
other operators, including Korea Telecom, were Wireless 2006 in the US.
also fined for a total of $76.3 million in June 2006
for exceeding the subsidy rates. Korea’s leading search engine and Internet
portal increases network performance and
Samsung claims to have developed thinnest reliability with Force10 TeraScale E-Series
LCD Force10 Networks announced that NHN,
Samsung Electronics apparently has Korea’s largest Internet company and the
developed the world’s thinnest LCD panel. A leading gaming site in Asia, is increasing the
credit card, at 0.82mm, is 0.07mm slimmer than performance and scalability of its network with
the panel which was previously claimed as the the TeraScale E-Series family of switch/routers.
world’s slimmest panel. The high density and resiliency of the Force10
The firm has also developed a new TeraScale E-Series delivers the flexibility NHN
mobile technology, named “i-Lens,” that requires to build its high-performance network
integrates the entire panel assembly into one and ensure seamless scalability for future
module that is more shock-resistant and easier growth.
to read.
Samsung’s Mobile Display Team MALAYSIA
reworked on the glass substrate and light guide
plate subassembly to achieve a thinner module. Malaysian firm to invest $100 million for
In rolling out the firm’s i-Lens technology, fiber-optic cable
manufacturers are able to trim 1.4mm to 2.4mm Telekom Malaysia Berhad (TM) plans to
from the thickness of a cell-phone. It also invest $100 million in installing a 4,100km fiber-
protects the cell-phone’s main display better and optic cable. The project will be completed by
makes it resistant to shock. This new LCD next year. The company will spend around $100
screen would be available in 2.1-inch-diagonal million on “Project Ittehad,” a project that will
and 2.2-inch-diagonal screen sizes. connect 107 cities in Pakistan. The investment
Copyright 2006 Information Gatekeepers Inc. 320 Washington St. Brighton, MA 02135 Tel: (617) 782-5033 Web: www.igigroup.com

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Asia Pacific Telecom Newsletter December 2006

will be made via TM’s Pakistan-based Maxis Telecommunications reports 28


subsidiary, Multinet Pvt Ltd. percent increase in third-quarter net profit
TM Malaysia has various other Malaysia’s top mobile-phone company in
subsidiaries like Dialog Telekom Ltd. of Sri terms of subscribers, Maxis Communications,
Lanka (89.8 percent), TM International has posted a 28 percent rise in net profit for the
Bangladesh (70 percent), Telekom Malaysia third quarter. The firm’s net profit for the period
International Cambodia (100 percent), ending September 30 rose year-on-year from
Indonesian PT Excelcomindo (59.6 percent), $107.6 million to $140 million. The revenue
and an important 49 percent stake in India’s increased 25 percent to $547.2 million, as its
Spice Telecom. TM has invested $1.3 billion in Indian Aircel unit contributed $68.6 million (12.5
communications business in Asia through its percent) to the group revenue. Domestic
investment unit, TMI. It has a regional user base business contributed 87 percent of the revenue
of 24 million. for Maxis. It added 388,000 local users in the
period, reaching a total of 8.86 million
Maxis to expand HSDPA services in Malaysia subscribers, increasing from 8.47 million in Q2.
Malaysia’s Maxis has expanded its
HSDPA footprint to serve above 20,000 MALDIVES
households in Penang.
The company has invested $1.4 million Dhiraagu to connect Maldives to the world
to deploy HSDPA across Penang. Maxis is via an 837km submarine fiber-optic network
expected to invest about $192 million to create Dhiraagu is on its way to connect the
its broadband services in the next three years. Maldives with the whole world through an 837km
Maxis’s chief executive officer, Dato’ Jamaludin fiber-optic submarine cable. This submarine
Ibrahim, said that the rollout of the services was cable network project was given to Japan-based
ensuing upon the positive feedback received NEC. This project is worth around $27 million.
from the customers about the reliable and The connection between the Maldives and Sri
affordable Maxis Broadband service, and Lanka forms the international link. The company
expressed confidence in the company’s product. hopes that creating links via the submarine cable
would help Dhiraagu to improve the quality of
Telekom Malaysia’s net profit in third quarter service and reduce costs concerning satellite
reduces bandwidth. This submarine cable project was
Telekom Malaysia’s net profit fell 38 initiated through a partnership with Sri Lanka
percent year-on-year to $133 million in the third Telecom (15 percent) and Dhiraagu (85
quarter of this year. percent). Dhiraagu laid its submarine cable on
Third-quarter revenue increased 22.5 May 1, 2006, after signing an MoU with Sri
percent year-on-year to $1.17 billion, mainly due Lanka Telecom. Dhiraagu will be prepared to
to robust performance by its Internet, mobile, offer services via this cable by early February
and multimedia sectors. 2007.
For the first nine months to September,
Telekom’s net profit fell to $397 million year-on- MYANMAR
year from $440 million. Revenue increased 18
percent year-on-year to $3.31 billion during this Private sector will also be able to provide
period. The company’s cellular mobile high-speed Internet services in Myanmar
subscribers fell to 7.39 million in Q3, from 7.6 Private firms in Myanmar are ready to
million in Q2. offer high-speed communication lines as per a
Copyright 2006 Information Gatekeepers Inc. 320 Washington St. Brighton, MA 02135 Tel: (617) 782-5033 Web: www.igigroup.com

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Asia Pacific Telecom Newsletter December 2006

cooperation program by Myanmar Post and Toronto-based OceanLake and its partner,
Telecommunications (MPT), which will now be Datapax of the Philippines, have signed a deal
extended to include the private sector. MPT is with Globe for using OceanLake’s Mobile
presently the only means of providing Internet Gateway dynamic reformatting engine. As per
services in the country since Myanmar Teleport the terms of this deal, Globe will share some
stopped delivering service lines in 2004. The portion of the earned revenues with OceanLake
private firms that would provide ADSL services and Datapax.
to the users include a consortium of ICT firms,
Myanmar Info-tech and Global Technology, and SINGAPORE
Myanmar World Distribution. The latter two
would utilize the Thaicom-3 satellite to provide SingTel’s regional mobile subscriber base
Internet services to remote parts of the country. exceeds 100 million
The numbers of Internet subscribers have SingTel has said that due to its strong
increased to 300,000 from only 12, four years growth in India and Indonesia, its user base has
ago. Due to congestion of Internet lines, been pushed up to the 100 million mark. With
arrangements are being made to upgrade the the strongest growth rate coming from Bharti
capacity to 45Mbps in the future. and Telkomsel, SingTel saw its user base
reaching 100.8 million by the end of September,
NEW ZEALAND a 36 percent increase year-on-year. SingTel
claims a 30.49 percent interest in Bharti and a
Orcon to shift to super-fast DSL 35 percent stake in Telkomsel.
ISP Orcon intends to migrate directly to By the end of September, Bharti had 27.1
VDSL2, the high-data rate Digital Subscriber million customers, a record 91 percent rise year-
Line service, instead of going with ADSL2+. on-year, while Telkomsel reached 32.5 million
VDSL2 is “standardized” by the International in the same period, an increase of 38 percent.
Telecommunications Union (ITU) and is an SingTel had 1.7 million users at home by the
enhancement to the original VDSL. By using end of September, a net gain of 81,000 in the
30MHz of bandwidth over twisted copper pairs, quarter.
VDSL2 can offer around 100Mbps capacity in
both directions up to 500 meters from the SingTel posts earnings of $612 million in
DSLAM. At 1,000 meters, the speed reduces to second quarter
50Mbps. VDSL2 offers the high bit rates needed SingTel’s second-quarter net profit
for multiple Internet television (IPTV) channels increased 18.6 percent year on year, mainly due
per user. Outside of New Zealand, Deutsche to good performance by its regional mobile
Telekom and France Telecom plan to offer associates, according to a Dow Jones report.
VDSL2 in 2007. SingTel’s net profit for the period ending on
September 30 was $612 million, up from $516
PHILIPPINES million a year ago. Analysts had forecast net
profit of $550 million and operating revenue of
Globe Telecom chooses OceanLake’s $2.1 billion. Its earnings from Asian mobile units
mobile gateway platform like Telkomsel in Indonesia and Bharti in India
Philippines-based wireless-operator increased by 37.4 percent to $326 million. Its
Globe Telecom has chosen OceanLake’s mobile Australian unit, Optus, which provides above
gateway platform to provide mobile Internet two-thirds of SingTel’s revenue, reported a 1.4
access to its subscriber base of 14.5 million. percent increase in operating earnings before
Copyright 2006 Information Gatekeepers Inc. 320 Washington St. Brighton, MA 02135 Tel: (617) 782-5033 Web: www.igigroup.com

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Asia Pacific Telecom Newsletter December 2006

interest, tax, depreciation, and amortization from SingTel Mobile and M1 to compete in high-
Q1. speed wireless broadband market
Singapore-based mobile operators
PacNet suffers 43 percent reduction in third- MobileOne Asia (M1) and SingTel Mobile are
quarter net profit competing fiercely in the mobile broadband
Singaporean firm Pacific Internet access market, as both have simultaneously
(PacNet) has suffered a 43 percent decline in launched 3.5G high-speed downlink packet
year-on-year net profit for Q3 ending on access (HSDPA) services. M1 is unveiling its
September 30, 2006, down to $752,000, in spite services in early December. It aims to provide a
of a 17 percent jump in revenues to a record countrywide wireless broadband service, and
$49 million. provide new devices like the Wi-Fi-enabled
For the nine months ending on Vodafone 3G Router and the Vodafone Mobile
September 30, PacNet’s net income dropped Connect USB Modem. Users in the Central
by 31 percent to $2.8 million. PacNet has had a Business District area would get downlink
pretty rough year so far, including receiving a transmissions of around 3.6Mbps for $44.049
notice of requisition from MediaRing in per month, while the rest of the country will get
September. The PacNet board confirmed that it 1.8Mbps access.
received requisition notices from Vantage Corp.
and MediaRing. PacNet boasts of presence in SRI LANKA
India, Australia, Thailand, Singapore, Hong
Kong, the Philippines, and Malaysia. PacNet Celltel to double number of base stations
was incorporated on March 28, 1995, as Sri Lanka’s second-biggest mobile
Sembawang Media; it changed to its present operator by subscribers, Celltel, will invest $70
name in 1998. million to double the number of base stations in
key towns to 400 in the next six months. Celltel
Etisalat, SingTel to provide IP-VPN services introduced mobile services to the country in
Singapore Telecommunications (SingTel) 1989. It was the only cellco in Sri Lanka until
and Etisalat will provide Internet Protocol Virtual some competition in 1993. The introduction of
Private Network (IP-VPN) to users in the Middle GSM services by MTN Networks (Dialog
East and the UAE. SingTel will now be able to Telekom) in 1995 further challenged Celltel.
provide seamless network connectivity and IP Despite unveiling its own GSM network in 2000,
services in the Middle East through Etisalat’s Celltel’s market share fell to 17 percent by March
IP-VPN solutions. The Emirates 2006. Celltel plans to increase its user base by
Telecommunications Corporation will have a 50 percent to 1.5 million users by the end of
wider reach in Asia Pacific via the network 2006.
coverage and ConnectPlus IP-VPN services of
SingTel. The firm’s ConnectPlus suite serves Suntel to invest $33 million to expand
important business cities in Asia-Pacific and network
other areas. The global data services of Fixed-line operator Suntel intends to
SingTel’s partners like Etisalat (in the UAE) will invest $33 million in 2007 to expand its network.
help in extended coverage. Etisalat provides Suntel has already spent around $20 million this
service to 5.3 million mobile users in the UAE, year to provide CDMA-based services to remote
with penetration rate of 125 percent. SingTel has areas of Sri Lanka. The firm signed up for a
37 offices in 19 nations and territories in Europe, syndicated loan worth $20 million to offset this
Asia-Pacific, and the US. year’s expansion-related costs. The firm also
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13
Asia Pacific Telecom Newsletter December 2006

plans to provide advanced data services with PC-to-phone include True Internet, TT&T, and
greater bandwidth to its corporate users. CAT Telecom. NTC is likely to unveil the official
Suntel’s net profit for the half-year to June 30 numbering plan next month.
fell by $0.85 million year-on-year to $2.6 million,
though revenues almost doubled to $30 million, CAT Telecom reduces proposed
compared to $18 million a year ago. Suntel is interconnection rates due to competition
the biggest fixed-line competitor to SLT, and had Thailand’s CAT Telecom has approved
a total user base of 188,000 in March 2006, increased cuts in its proposed interconnection
overtaking its CDMA rival Lanka Bell, which had rate by 35 percent to 85 percent to encourage
around 100,000 subscribers. more telecom operators to make use of its
international networks. The new interconnection
THAILAND rates would be submitted to the National
Telecommunications Commission (NTC) in
Ericsson gets $110 million AIS contract December. CAT Telecom had earlier proposed
Ericsson signed a contract worth $110 an interconnection rate of $0.029 per minute.
million with AIS to expand its current GSM/ The new interconnection rates are $0.019 per
EDGE network in Bangkok. With this expansion, minute for origination and termination, a
AIS will increase its network coverage as well reduction of 35 percent, and $0.004 for the
as its capacity. According to the contract, transit rate, a reduction of 85 percent. CAT’s
Ericsson will be responsible for building the president, Phisal Jorpoocha-udom, said that
network; providing network design, deployment increased competition forced the lower rates.
and integration services; and radio and core
network. Ericsson will also supply its spare-part VIETNAM
management service, thus reducing AIS’s
operational costs. The Mobile World subscriber Moscow’s Altimo to invest in Vietnam
database reported that at the end of its Q3 2006, Moscow’s Altimo plans to invest in
AIS had about 17.7 million customers, which Vietnam and further expand to Southeast Asia
gave them nearly 50 percent market share. in the future. According to Altimo’s senior vice
president, Roger de Bazelaire, the company has
NTC gives green light to phone-to-phone already invested around $30 billion in emerging
Internet calling services telecom markets across the globe. Further, it
Thailand-based National plans to acquire minor stakes in local mobile-
Telecommunications Commission (NTC) has phone operators and provide technological
finally decided to allow ISP licensees to offer expertise to them. Altimo will be setting up an
phone-to-phone VoIP call services by opening office in Vietnam in November.
the market to phone-to-phone Internet calling
services. Those ISPs without an Internet license AT&T signs deal with Vietnam-based carrier
will have to apply for one before providing the Viettel
services. NTC earlier allowed its Internet service AT&T has signed a deal with Vietnam-
licensees to provide VoIP calls only from PC to based Viettel, a military-owned carrier, to
PC and from PC to mobile or fixed-line connect the country to the global AT&T network.
telephone. The NTC, as per its interim It will allow multinational business in Vietnam
numbering plan, allocated a “06” prefix for to utilize the advanced network services via
providing VoIP services from phone to phone. Viettel. The services would include Virtual
Current VoIP service providers of PC-to-PC and Private Network (VPN) and frame relay; plans
Copyright 2006 Information Gatekeepers Inc. 320 Washington St. Brighton, MA 02135 Tel: (617) 782-5033 Web: www.igigroup.com

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Asia Pacific Telecom Newsletter December 2006

are being made to launch more services in the technologies, and value-added products. The
near future. two firms will also launch roaming and other
services. This deal is likely to result in increased
Hanoi Telecom and China Unicom sign MoU sales of CDMA mobile services in Vietnam.
Hanoi Telecommunications has signed Previously, Hanoi Telecom and Hutchison had
an MoU with China Unicom. As per the MoU, received government approval to deploy CDMA
China Unicom would provide Hanoi Telecom services. Hanoi’s HT Mobile (092) service will
with wireless data cards, equipment, exchange be available soon.

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