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The proposed merger between T-Mobile and
Consumer groups are now pushing for further detailed investigation into the effects that the merger will have on competition within the sector. They are of the opinion that the lack of competition, which is an inevitable outcome of the emergence of a huge entity like this, will affect progress in 3G networks adversely.
Consumer body Which? recently brought out an opinion that a detailed look is necessary at the deal from this perspective. Following this, a letter has been forwarded to the
The huge chunk of broadcast spectrum which the new company would hold is also mentioned as a potential obstacle to competition. The MVNOs (mobile virtual network operators) who depend on leased capacity from owners of network will be badly hit by the emergence of a giant.
The consumer groups are hoping to bring the final decision making on the issue back to the
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While growth in mobile broadband is a cause of celebration for broadband providers and users alike, the improvement is also seen as good news by economic analysts who view it as a positive trend following the recession. Nevertheless, the advertising community is not particularly happy with the progress. This is because mobile broadband has failed to be a successful medium of advertisement and bring in good revenues to investors.
Advertisers cannot understand why a medium with such immense reach and with capability to cut across all barriers of age, location, sex etc is turning out to be a damp squib where advertising is concerned.
Speaking on this issue at the recent eForum Keynote Seminar at
Mobile broadband providers on their part have tried to capitalise on the broadband growth by airing advertisements on their service channels so that customers can view them as soon as they log in. However, this strategy has not clicked with the users.
Mobile broadband is expected to grow forty fold by 2017, according to some experts. Others believe that the industry will grow exponentially. In fact, the growth prediction is so high that there are apprehensions whether the technology can keep pace with the demand.
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The parent company of mobile broadband provider 3, Hutchison Whampoa, declared recently that it had registered a net gain in terms of revenue for the first half of 2009, which also showed a huge 170 percent growth in its mobile broadband subscriptions. The customer base for the company now stands at an impressive 3.8 million.
3 is the only company other than O2 which has been able to register a revenue growth during the first half of 2009. This is a commendable achievement when compared to any other broadband provider, considering that it was a crisis period for most of these companies. For instance, T-Mobile suffered a 4.2 per cent decline in its revenue during the period from January to June of 2009 as compared to its 2008 figures. The increase has taken 3’s revenue to £784 million.
The striking thing for 3 mobile in this period was that although it did register a huge customer growth, the revenue was almost flat. Trying to explain this, the chairman of Hutchison Whampoa said that there was fierce competition in the mobile broadband market, which was resulting in falling prices, leading to lower revenues despite growth in customer base. He also said that reduction in termination charges and roaming charges was also taking a toll on the revenue.
Britain’s largest mobile phone company in the UK has today alluded to the fact that if plans to cut the cost of calls on mobiles are pushed forward, then this could have a counterproductive effect on those users who are on lower incomes.
It was hinted that all of the main mobile telephone networks would increase their prices elsewhere in the value chain, in order to recover the losses they were suffering as an effect of the pressure from the regulators. Free handsets could also be cut and users of so-called smartphones such as Apple’s iPhone could see charges go up, O2 has told Ofcom.
As the current price cap expires in 2011, Ofcom would like to reduce the cost that operators charge each other and BT, to connect calls - so called termination rates.
BT and the UK’s smallest network 3 have lobbied for them to be trashed entirely with their “terminate the rate” campaign.
A petition started by the two companies has already achieved 70,000 signatures, including 200 from MP - all wanting to see the complete junking of these fees. The rational behind this is that it is hoped that this would stimulate the introduction of unlimited call packages which are available in places like the USA for example. In addition, when calling from a landline to a mobile, this cost is likely to fall too.
O2 have written to the regulator to suggest that the two companies who are the most outspoken campaigners are purely driven by self interest. They also consider that the retail market would be adversely affected; which would again push up the cost to consumers.
Prices of handsets, contracts and calls, are all anticipated by O2 to increase dramatically if this proposal goes ahead. Prepay customers, who tend to receive more calls than they make, will be hard hit as the mobile phone companies would have to slap “use by” dates on top-up credit. For those without a landline and maybe just a Virgin mobile that needs recycling, or those who are considered lower income families, this would hurt them financially; not forgetting the fact that many younger people also have a prepay phone rather than a contract. For those are unable to get any other means of communication technology this could have a lasting impact.
Charles Dunstone, CEO of Carphone Warehouse strongly disapproves of the proposed plans of the government to curb download speeds of those suspected of piracy on the internet.
The final edition of the Digital Britain report, which is expected to be released soon, is likely to carry pointers for ISPs to follow in order to ensure copyrighted materials are not pirated over the internet. However, speaking to The Guardian on the event of Carphone Warehouse’s annual pre-tax profit figures release, Dunstone said that limiting piracy on the internet by simplistic means is simply impossible and claimed that the politicians who believe they can fight online piracy by implementing such tactics are nave.
Justifying his statements, Dunstone clarified that there exist a number of ways in which customers can get access to the files they want, and pointed out that the supposition that only peer to peer networks are the culprit is not true. And as far as curbing broadband speeds is concerned, he believes that downloaders can mask their traffic or look for other means to share pirated material.
The CEO of Carphone Warehouse, which has witnessed a £4m boost in profits over last year, likened the situation to a Tom and Jerry-type scenario, with the cat always unable to catch the mouse.
Dunstone added that the public should see to it that ill-advised legislation does not get passed. Suggesting alternatives, he said that customers should be educated so they can respect copyright, and asked the government to set up services where downloaders can get the content they want cheaply and easily.
The bad news does not seem to stop for the Internet service provider Tiscali. The company has reportedly failed to meet its target number of subscribers for its IPTV service, also known as Tiscali TV. Originally, an on-demand broadband TV service called HomeChoice, the unit has not shown any promise of good performance since Tiscali bought it in 2006.
Tiscali had set itself a target of 200,000 subscribers for the service by the end of the 4th quarter of 2008. However, it has missed that target by a gaping 50%, securing only 100,000 subscribers; a severe blow to its survival as customers begin to opt for the internet services of other broadband providers.
This should not come as a surprise for those who have been following the company closely, given the severe financial problems it has been facing recently. It will be quite hard for Tiscali to maintain a service that consistently fails to perform when even its broadband users are fast declining in number. However, the company has not yet given up hope of a revival of its IPTV service.
It seems the company’s financial troubles are now reflecting in its operational performance too. ISPreview, an independent broadband news site says that it has been getting harder to acquire performance statistics for the company, and in a recent report, it was speculated that Tiscali has lost 64,000 broadband customers recently. That is a big hit for the already tottering ISP - and it remains to be seen if it can recover.
Last year our business (who processes a lot of large medical images) was growing fast, it became evident that we needed additional bandwidth.Our T1 line that we had just wasn’t large enough for our traffic.
Being the IT guy, I got the assignment of renegotiating our current contract. Fortunately our 3 year term was almost over, so our company was able to shop around for different options.
The most apparent answer would have been to change from a single t1 to a bonded T1. However it would not take long before that also would not be sufficient.
Our sales rep at this carrier (who will remain nameless here) was happy to point me to a bigger and far more expensive solution: a DS3 (T3 line) which has a capacity of 45 mb. Obviously that would be bandwidth enough taking our projected growth into consideration, it was perhaps even a bit of an overkill. And monthly cost was in the higher 4 digit figures.
I found something that sounded too good to be true. A new technology (or at least new to me) that can deliver internet access via an Ethernet port over plain old telephone lines, also called Ethernet over Copper. The pricing was superb; we were able to get a 10 meg port for less than a 3mb bonded t-1!
Another important advantage of ethernet over copper bandwidth is the scalability. We can just add bandwidth by simply ordering more, in incremental steps, even all the way up to a gigabit Ethernet circuit.
So when upgrading any services, be sure to shop around with several carriers and make sure you are aware of new technologies (or use a telecommunications consultant that is).
It was good news for the mobile industry in the
The
The government’s entire budget plan will be released sometime during spring. More details on this proposal are expected along with this release. In the meantime, unless the mobile industry lobbyists succeed in getting the proposal overturned, the industry could face this recurring charge on their income statement for a long time to come.
Because a large proportion of my work colleagues live in Belgium and I still need to be in regular contact with them, I had been generating some huge phone bills. Like most people I knew there were a myriad of alternatives to using my mobile for hour long conversations, such as buying a buying a sim card to make international calls or setting VoIP up - I had, to be quite honest been too lazy. Now I’m getting concerned about the depressing economic outlook I finally made the effort to explore how difficult it would be to make cheap calls to Belgium.
It did take the economic collapse of the world to to finally explore some alternative possibilities, but I am very pleased I have. It was much easier to set VoIP up than I had realised, the call quality is excellent, and I have already saved a huge amount of money. What’s great is a lot of my work colleagues have signed up as well which means calls are not only cheap they are actually completely free.
What this has meant is I have been able to greatly cut back on costs at a time when it is vital to save as much money as you possibly can. So if you are finding yourself in the same or similar situation I cannot recommend enough, switching to VoIP.