Appendix 10 – Mobile Average Revenue Per User (ARPU) in USD; Adapted and computed from ITU World Telecommunication/ICT Indicators 2006 database
quote: "Success is a thought process"
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Saturday, January 27, 2007
Appendix 2 – Network Infrastructure cost per subscriber per month (OPEX, CAPEX), adapted from GSA opinion paper: Radio Access Evolution; www.gsacom.
quote: "Success is a thought process"
Appendix 2 – Network Infrastructure cost per subscriber per month (OPEX, CAPEX), adapted from GSA opinion paper: Radio Access Evolution; www.gsacom.com
Appendix 15: Broadband Convergence
quote: "Success is a thought process"
Appendix 15 – Convergence of Technologies in Broadband versus mobility; adapted from Samsung Electronics Co., Ltd; Introduction to WiBro Technology Sep 10, 2004, Telecom R&D Centre, by Soon Young Yoon
Mobileone (M1) Broadband via HSDPA Creates a new broadband segment
MobileOne investments in HSDPA (HSPA) creates more competition in Broadband
During the 3G(WCDMA) bubble in 2000 and 2001, mobile operators globally overpaid for 3G licenses. In Germany, $45.2Bi was spent on licenses. HSDPA, a software upgrade on top of WCDMA(UMTS) networksii, represents an opportunity to
push the frontier of broadband mobility at a much lower cost than WCDMAiii. It is the “obvious way to bring broadband to the mass market”.
HSDPA investment accelerates in the second half 2006 with over 30 launched networks. Till date there are 141 WCDMA operators in commercial service, 137 HSDPA operator commitments and 89 launched HSDPA networksiv. Investment in
WCDMA networks will grow by double digits to 26.6B in 2009v. WCDMA network investment is the leading indicator for investments of HSDPAvi.
In the US, economic growth in 2007 will slow to 2.6% while inflation remains a concern but under controlvii. Target rates are expected to trend lower. In the ICT segment, the market leaders are Cingular Wireless, Verizon Wireless and Sprint Nextel, together accounting for 75% market share while T mobile, Alltel and US cellular with 20% of the market share. T-mobile is investing $2.75b in UMTS and HSDPA networkviii.
In Japan, Jobless rate fell to 3.99% from 4.1% in Oct 2006ix. Economic growth in 2007 is expected to improve. On the ICT segment, Softbank acquired Vodafone KK for US$15b and is starting a price warx with the market leaders KDDI and NTT Docomo to acquire mobile subscribers. Japan’s mobile ARPU at US$68.22xi is set to drop.
External impact on Singapore will be muted as the broadband and mobile operators are profitable and not highly geared. Third quarter 2006 GDP grew at 7.2% while unemployment is at 2.7%xii, PMI at 54.6%xiii. Singapore’s economy is expected to
expand at a slower rate in anticipation of a stronger Singapore dollar and a weaker US economy in the year 2007.
MobileOne spent S$47m to upgrade its network to HSDPAxiv enabling it to launch mobile broadband services on 6 Dec 2006 offering unlimited broadband between S$22 to S$68 dollars. Singtel and Starhub will follow suite in 2007. The convergence
of technologiesxv has added competition into the broadband market segment via HSDPA, WiFi/WiMax technologies.
WiFi based broadband with complete coverage will force prices down in the sub 512kbps stationaryxvi market. MobileOne’s HSDPA service will create a new segment of mobility broadband that is also well positioned for the 384,500 households still
without a broadband connectionxvii until competition responds. Incumbents are expected to move up the throughput ladder to maintain pricesxviii. Overall, the demand line will move rightxix but MobileOne will struggle to get reasonable returns from their HSDPA investment.
The cost advantage of WiFi technology compared to DSL and cable is significantxx. However new entrants are skeptical as household penetration stands at 64%xxi, required IDA to co-sponsor up to S$30mxxii before becoming willing to make the
investment. This is due to Singapore’s small market size making economies of scale difficult.
The Author:
Paul Ho works in the telecommunication OSS/BSS software sector and has 10 years of working experience ranging from Radio Network Planning, Optimisation, Integration to Pre-sales, Channel Management and direct sales experience in the Asia Pacific market covering countries from Japan to New Zealand. His profile can be found in www.linkedin.com
ABOUT MobileOne (M1) Singapore
MobileOne Ltd provides cellular mobile communications services to customers in Singapore, as well as offers international call services to both mobile and fixed-line customers. M1's mobile services comprise a range of voice, non-voice and value-added services provided on its nationwide dual-band global system for mobile communications (GSM) 900/1800 and wideband code division multiple access (W-CDMA) networks. For international call services, it offers mobile and fixed-line customers International Direct Dial services using the prefix x 002 and 021, and International Calling Card service using the prefix 1818. M1 also sells international wholesale minutes to other international service providers. In May 2005, M1 secured spectrum in the 2.5-gigahertz band for deployment of wireless broadband access (WBA) services. The Company's interests in
subsidiaries include M1 Shop Pte Ltd, M1 Capital Ltd and Wireless Intellect Labs Pte Ltd. M1 also provide broadband services through HSDPA network.
Glossary of terminologies
3G - refers to the third generation of developments in wireless technology, especially mobile communications. The third generation, as its name suggests, follows the first generation (1G) and second generation (2G) in wireless communications.
ACPU – Average Cost per User
ARPU – Average Revenue per User
DSL – Digital Subscriber Line (The line that carries broadband signals)
ICT - Information and Communications Technology
IDA – Infocom Development Authority of Singapore.
HSDPA - High-Speed Downlink Packet Access An upgrade for WCDMA / UMTS networks. It doubles network capacity and increases download data speeds five-fold or more. While the technology is theoretically capable of downlink (download) data
rates up to 8-10 Mbit/s (million bits per second), initial deployments and devices will be limited to 1.8 Mbit/s, followed by network upgrades and new devices capable of 3.6 Mbit/s. HSDPA is standardized by the 3GPP in UMTS Release 5.
HSPA – High-Speed Packet Access (HSDPA Downlink and Enhanced Uplink)
WiFi, WIRELESS LOCAL AREA NETWORK -
WLAN technologies complement access technologies for cellular networks. WLAN enable higher data rates - up to 54 Mbps - for coverage in in-door hot spots. WLAN is a short-range packet data communication between base stations and user terminals. Direct communication between terminals is also possible. There are several standards for the WLAN air interface. It is only in the last year that market developments have made it clear that IEEE 802.11b and g are the dominating standards. IEEE 802.11n is under development to support up to 540 Mbps and is planned for release in 2008. The
Wi-Fi Alliance certify to interoperability between 802.11 devices.
WiMax - Worldwide Interoperability for Microwave Access (WiMax) for short is a point to multi point, non-line-of-sight (NLOS) wireless broadband access technology. WiMax also known officially as 802.16-2004 (its IEEE name) can transfer data at rates around 70Mbps with a range of close to 30 miles all from just a single base station. The acronym for WiMax also encompases the WiMax Forum, and industry consortium that will be pushing 802.16 as a solution. The Forum is a collection of service providers, vendors and Industry leaders including Cisco, Proxim, Lucent and many others that plan to design the definitions for testing and certifying that these products are compliant and will interoperate.
UMTS – Universal Mobile Telecommunication System. As used loosely and interchangeably with WCDMA and 3G.
WCDMA – Wideband Code Division Multiple Access network. This is a 3G network. The terminologies WCDMA are used interchangeably with UMTS and 3G. Also known as CDMA DS (Direct Sequence) within the IMT-2000 framework WCDMA is the radio access technology for one of the UMTS access modes (UTRA FDD) using 5 MHz duplex channels. Combines circuit mode and packet mode initially.
Appendix A – Brief introduction of MobileOne and Glossary of terms
i
Appendix 1 – CommunicationsWeek International, Sep 11, 2000 by Peggy Salz-Trautman
and Emma McClune:
http://www.findarticles.com/p/articles/mi_m0UKG/is_2000_Sept_11/ai_65649741
ii
Appendix 5 – Ericsson CEO: HSPA operators will benefit most from mobile broadband
mass market, 15 Nov 2006: UMTS Forum; www.umts-forum.org/servlet/dycon/ztumts/umts/Live/en/umtsNews_3G_Article151106a
iii
Appendix 2 – Network Infrastructure cost per subscriber per month (OPEX, CAPEX),
adapted from GSA opinion paper: Radio Access Evolution; www.gsacom.com
iv
Appendix 3 – 3G/WCDMA-HSDPA Fact Sheet December 11, 2006: GSM/3G Market
Technology update; www.gsacom.com
v
Appendix 4 – W-CDMA RAN Equipment Growth Through 2009, dated 14 Mar 2006;
www.3g.co.uk/PR/March2006/2775.htm
vi
Appendix 3
vii
Appendix 6 – The Conference Board: The U.S. Economic Forecast; www.conference-board.org/economics/stalk.cfm
viii
Appendix 7 – T-Mobile Awards 3G Deals, November 27, 2006; www.lightreading.com/document.asp?doc_id=111308&print...
ix
Appendix 8 – Japan’s Inflation Rises, Jobless Falls to 8-Year low (Update 7), Dec 27;
Bloomberg News; www.bloomberg.com/apps/news?pid=newsarchive&sid=a30zfp.ZZOFAx
Appendix 9 - Japan’s Softbank to underprice mobile competitors ahead of number
protability, Oct 23, 2006; www.siliconvalley.com/mld/siliconvalley/news/15830351.htm
xi
Appendix 10 – Mobile Average Revenue Per User (ARPU) in USD; Adapted and computed
from ITU World Telecommunication/ICT Indicators 2006 database
xii
Appendix 11 – Singapore Key Indicators; Statistics Singapore; www.singstat.gov.sg/
xiii
Appendix 12 - Singapore Institute of Purchasing and Materials Management Business
Bulletin: December 2006
xiv
Appendix 13 – Singapore:Unlimited broadband services for under S$30 launched, March
30, 2006; Straits Times
xv
Appendix 14 – Broadband rush, by Joan Ng, December 18, 2006; THEEDGE
SINGAPORE
xvi
Appendix 15 – Convergence of Technologies in Broadband versus mobility; adapted from
Samsung Electronics Co., Ltd; Introduction to WiBro Technology Sep 10, 2004, Telecom
R&D Centre, by Soon Young Yoon
xvii
Appendix 16 –DEMAND of Broadband Versus PRICE of Broadband
xviii
Appendix 13
xix
Appendix 16
xx
Appendix 17 – Metro-Scale Wi-Fi’s Disruptive Economics, September 2005; Tropos
networks; www.tropos.com
xxi
Appendix 18 – Internet Broadband Subscribers and Household penetration; adapted and
computed from ITU World Telecommunication/ICT Indicators 2006 database.
xxii
Appendix 13
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