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Internet Calling Posing A Threat To Landline Phone Companies
Wednesday May 19, 9:55 am ET
By Mike Angell
The regional Bell companies may have sighed with relief after surviving the telecom bust, but they may be sweating bullets these days.
Although many of their late '90s competitors offering broadband, wireless and fiber-optic services have gone bankrupt, a new crop of rivals has entered the fray.
And with new technologies, like wireless networking and the ability to send voice over computer systems, they're posing a serious threat to regional Bells.
"We're at a real inflection point with this technology," said Don Fitzpatrick, an IBM vice president.
The new technologies' threat is such that Standard &Poor's is concerned about the creditworthiness of the regional Bells.
But the Bells' losses may be other firms' gains.
On Tuesday, IBM teamed up with Cisco Systems to develop products for voice over Internet protocol networks. VoIP sends voice and data over the same networks. That reduces costs and boosts efficiency.
Barriers Coming Down
Many companies use outside telecom carriers for services such as voice mail and messaging. But by using VoIP gear, companies can manage those services in-house and bypass outside carriers.
IBM is an example of that. About 20,000 out of 319,000 employees are on VoIP networks. IBM plans to bring that number to 240,000 over the next four years.
Fitzpatrick says VoIP quality, long plagued by glitches, has become more reliable. "Barriers such as security, quality of service and ease of deployment - all these things have matured," he said.
The possibility of new technologies eroding carriers' revenue from voice services is one reason Standard &Poor's put some big telecoms on a credit watch in April.
S&P analyst Catherine Cosentino says firms like Verizon Communications, SBC and BellSouth face rivals that offer phone service over broadband data connections.
While regional Bells still carry the majority of voice traffic, more and more consumers are bypassing the old standbys when buying phone service.
Those rivals include big firms like AT&T and Cablevision Systems as well as small companies like Vonage. All provide VoIP services.
These firms offer plans competitive with those from traditional telecoms. Vonage has introduced a $30 per month unlimited local and long-distance calling plan for homes. That compares to the average $48 monthly bill for local and long-distance residential service.
Cosentino estimates the Bells could lose as much as $5 billion a year in revenue if VoIP offerings become mainstream.
Combined, the Bells made $91 billion last year from carrying voice.
And VoIP requires that customers have broadband. Only 26.2 million have broadband now. The majority of those are provided by the Bells themselves.
Still, if international voice service is any guide, the future is not looking so rosy for the Bells. Rates for international calls have dropped 80% over the last two decades. Much of that decline stems from cheap VoIP service carrying up to 12% of international calls.
Bypassing The Networks
Cosentino says VoIP will, over time, also drive down domestic phone bills. "These (Bell) companies are still the incumbents," she said. "There will be lost customers. It's just a matter of where the losses plateau."
In addition to VoIP, wireless technologies let people bypass traditional telecoms. One of the more popular types of wireless networking is known as Wi-Fi, which lets computer users connect to the Internet from a distance of 300 feet.
Calling card vendor IDT is testing a service that lets users make Wi-Fi phone calls. In effect, users bypass both the traditional telecom and cellular networks.
The service is being targeted to immigrants who want to make inexpensive overseas calls. IDT CEO Jim Courter says it has the potential to take away customers not only from traditional telecoms, but cellular carriers as well.
"There's been a lot of competitive pressure on wired carriers, but there hasn't been as much innovation in regard to mobile service," Courter said. "This is going to do to cell phones what VoIP is doing to Verizon."
http://biz.yahoo.com/ibd/040519/general_1.html
Zapp to bring BREW apps. to Europe
by Mike Dano
May 19, 2004 12:21 PM EST
Qualcomm Inc. announced its BREW application download service will be available in Europe through a new deal with CDMA 450 MHz operator Zapp in Romania.
“Zapp is proud to be the first CDMA 450 operator to introduce BREW-based services to the market,” said Cuneyt Turktan, president of the board of directors for Zapp, a Romanian carrier. “Zapp subscribers will now benefit from an enhanced user experience that allows them to choose from a wide array of communication, customization, information and entertainment options. Qualcomm’s BREW solution positions Zapp as a technological leader and a cutting-edge mobile service provider.”
Qualcomm last year set up a European sales office to promote its BREW system. Qualcomm executives said Vodafone’s launch of its Live! wireless data service created a need for competing offerings among Vodafone’s competitors.
Other carriers offering BREW include Verizon Wireless and Alltel in the United States, China Unicom, KDDI in Japan, KTF in South Korea, Telstra in Australia, Vivo in Brazil, Pelephone in Israel and others.
http://rcrnews.com/cgi-bin/news.pl?newsId=18155
Jim, Could you tell me the name of 3 Qualcomm Customers in Europe as indicated in your post if you know. If you are not certain, can you guess?
<<8.E.2. WCDMA Traction
..............WCDMA Customers- 21 total
.................China- 4
.................Europe- 3
.................Japan- 4
.................Korea- 4
.................Taiwan- 4
.................USA- 2 >>
Any response is appreciated.
KDDI Launches New 3G CDMA 1X Series; Includes World's First 3.2 Megapixel Camera Equipped Handset
Tokyo, Japan, May 19, 2004 - (JCN Newswire) - KDDI (TSE: 9433) and Okinawa Cellular are pleased to announce that they will launch three third generation CDMA 1X-compatible cellular phones from early June 2004.
The A5406CA, manufactured by Casio Computer Co., Ltd., incorporates the world's first* autofocus 3.2 megapixel camera and is compatible with EZ Chaku Uta(TM) stereo playback. The A5506T, manufactured by Toshiba Corp., is equipped with the EZ NaviWalk function, which has become easier to use, as it is linked with 2-dimensional code. Finally, the A5407CA, manufactured by Casio Computer Co., Ltd., incorporates a high-performance 2 megapixel camera.
The sereies includes:
A5406CA (Casio Computer Co., Ltd.)
- Incorporates world's first autofocus 3.2 megapixel camera
- Equipped with 2.3 inch QVGA LCD
- Equipped with stereo twin speakers and also compatible with EZ Chaku Uta(TM) stereo playback
- Automatically transfers still images and movies to PC using USB cradle
- Compatible with 2-D code
A55006T (Toshiba Corp.)
- Compatible with EZ NaviWalk, which enables setting of destinations through reading of 2-D code
- Equipped with camera functions allowing user to play with photos such as "Frame Center" and "Stamp Center"
- Compatible with more advanced "mass mode"
- Bilingual capability enabling display of English menus
- Equipped with 1.3 megapixel camera and 2.2 inch QVGA LCD
A5407CA (Casio Computer Co., Ltd.)
- Incorporates 2.0 megapixel camera with high-performance autofocus
- Automatically transfers still images and movies to PC using USB cradle
About KDDI Corporation
KDDI Corporation was established in 1984 and is currently the second largest telecommunications company in Japan, providing a comprehensive range of voice, data, IP and mobile services to both business customers and consumers. After merging with KDD and IDO in October, 2000, KDDI serves over 15 million long-distance subscribers, 1.4 million internet subscribers, 13 million mobile subscribers, and 5 million PHS subscribers. KDDI has 34,000 km of highly reliable domestic network infrastructure, in addition to optical submarine cable systems such as TPC-5, Japan-US CN and China-US CN. KDDI also works to develop advanced technology in the areas of radio & mobile, lightwave, multimedia, and Internet communications. The KDDI Group consists of approx 100 companies covering a wide variety of telecommunications-related businesses such as engineering, facility hosting, submarine cable construction, and R&D. For further information, please visit the KDDI Corporation home page at: www.kddi.com/english/index.html
Contact:
Dale Hug
Japan Corporate News, for KDDI
dale.hug@japancorp.net
--------------------------------------------------------------------------------
May 19, 2004
Source: KDDI Corporation
KDDI Corporation
From the Japan Corporate News Network
http://www.japancorp.net
Topic: New Product
Sectors: Wireless
http://www.japancorp.net/Article.Asp?Art_ID=7347
Rivals BT and Vodafone agree partnership deal
Wed 19 May 2004
BRITISH Telecom has teamed up with arch-rival Vodafone to unveil the future of telecommunications technology in a deal expected to bring the partners more than £1 billion over the next five years.
As part of a move to ensure that it will not lose customers to its competitors, BT said it planned to launch a combined fixed and mobile phone, dubbed "Project Bluephone", before the end of the year.
The technology removes the need to own more than one phone, with customers able to use a single device that can switch seamlessly between fixed and floating networks.
It means whenever customers are within reach of a BT wireless access point in their home or office, they will be able to connect through the BT network. If they move out of coverage range, they will switch to Vodafone’s cellular network, giving them the best available connection wherever they are.
BT battled Vodafone, the mobile phone market leader, in its domestic market before spinning off its mobile arm O2 in November 2001.
The company announced plans to return to the mobile market last June, as it was seen as a fresh growth opportunity which could offset falling revenues in its core fixed-line business. It now has 170,000 residential and business mobile customers.
Pierre Danon, chief executive officer of BT Retail, said this new relationship would strengthen both companies.
"It is a first relationship of its kind as we will work closely on a number of fronts, with Vodafone UK providing the network services for BT’s internal and external requirements," he said.
And Steve Andrews, BT Group chief of mobility and convergence, added:
"There has been a lot of talk about fixed and mobile convergence but, from later this year, it will be here from BT. We have moved from future vision to reality."
http://business.scotsman.com/technology.cfm?id=571122004
Nortel remains in fifth place in wireless gear market: report
By Ottawa Business Journal Staff
Wed, May 19, 2004 8:00 AM EST
The global market for wireless, widely considered a key pillar of the telecom sector's recovery, contracted in 2003 and Swedish firm Ericsson maintained its leadership position, according to a report Tuesday.
The report, by market research group Gartner, said the global market for wireless communications networks declined by 12 percent last year to US$40 billion.
Ericsson maintained its big lead as the world's largest maker of wireless gear, though its market share slipped from 29 per cent in 2002 to 26 per cent.
Germany's Siemens picked up some of the slack thanks to demand for its 3G network technology, increasing its market share to 13 per cent from 12 per cent.
For the other three top five firms, little changed. Finland's Nokia remained in second place at just under a 15-per-cent share. Siemens remained third. U.S. firm Motorola held onto fourth place. Nortel Networks was close behind in fifth place with a market share of just over 10 per cent.
"Siemens has done well, particularly in (third generation) WCDMA systems (Wideband CDMA)," Gartner analyst Jason Chapman said in the report.
Siemens holds 23 per cent of that WCDMA market, a technology that allows wireless service providers to deliver a host of broadband services over their cell phone networks, such as video.
Chapman added that 2003 was a year of contraction without any of the top equipment vendors making any major moves in terms of market share.
For 2004, modest growth is expected as wireless service providers clean their books of debt and once again look to spend on new network equipment.
The big driver of growth is expected to be 3G technology to bring new voice, data, music and video services to wireless handsets.
Emerging markets such as China are also expected to fuel growth, with the number of mobile callers around the world expected to climb to two billion within the next four years, from the current 1.3 billion.
The Gartner report also indicated that other wireless equipment vendors such as Lucent Technologies of the U.S. and Alcatel of France have market shares well below 10 per cent.
http://www.ottawabusinessjournal.com/280543683431187.php
Analyst: AT&T mobile plans could face hurdles
Last modified: May 18, 2004, 5:14 PM PDT
By Ben Charny
Staff Writer, CNET News.com
The cell phone service AT&T plans to launch could have some very real interoperability problems, if it draws on other carriers to create a "mixed" network, an analyst warns.
On Tuesday, the nation's largest long-distance phone company announced that it tapped Sprint, which owns a CDMA (Code Division Multiple Access) standard cell phone network, to supply it with wholesale network access for an AT&T-branded cell phone service due later this year. The choice of Sprint was expected.
AT&T spokesman Jim Byrnes said the company is also in talks with several other U.S. carriers, including those that use GSM (Global System for Mobile communication), the world's most popular cell phone standard that's not interoperable with CDMA. While that raises the possibility of having a "mixed network," Byrnes said, "it's very early and nearly impossible to really tell at this time."
However, if AT&T were to mix conflicting cell phone standards into one network, its subscribers would have a difficult time making calls from anywhere in the country reliably, Jupiter Research analyst Joe Laszlo said. Phones that offer multiple standards are more dependable, but those are rare and expensive. Otherwise, customers would have to settle for calling in more limited areas, he said.
"It makes anywhere you go, unlimited roaming plans, very hard to do," Laszlo said. "Dual handsets (those that support both GSM and CDMA) are going to be just so outrageously expensive."
Byrnes said it is too early to speculate on what sort of problems AT&T might have, if it does create a network involving multiple carriers that use different cell phone standards.
The company's plans with Sprint come as AT&T Wireless, which AT&T has used in the past to sell cell phone services, has been struggling. Last month, AT&T Wireless announced plans to open 100 new retail stores and bolster its customer call service, after suffering one of its worst financial quarters ever; it lost 367,000 subscribers, while its competitors enjoyed a surge of new customers.
AT&T Wireless was once a unit of AT&T, but the company spun the business off in 2001 as part of a larger restructuring plan.
http://news.com.com/2100-1039_3-5215483.html?part=rss&tag=feed&subj=news
KDDI to Introduce 3.2M-pixel Camera Phone
May 19, 2004 (TOKYO) -- KDDI Corp announced that it will launch three CDMA 1X handset models including the world's first 3.2-megapixel camera phone from June.
The three models are: the A5406CA and the A5407CA both produced by Casio Computer Co, Ltd, and the A5506T produced by Toshiba Corp.
The A5406CA has a 3.2-million effective pixel 1/1.8-inch CCD imager. It can take photos ranging from 120 x 160 pixels to 2,048 x 1,536 pixels (QXGA). It also has an auto-focus feature as does the current A5403CA model.
Another feature is that the A5406CA has twin stereo speakers and stereo surround processor DiMAGIC Virtualizer X developed by Tokyo-based DiMAGIC Co, Ltd, so that it can generate a more natural presence with a "Chaku Uta" song phone ringer.
The A5407CA is a "minor change model" of the A5403CA. The new features include a camera with four lenses. The A5407CA model will be less expensive than the A5403CA, according to KDDI.
A4406T is compliant with the EZ Naviwalk pedestrian navigation service based on MS-based GPS. It can read the two-dimensional bar code called "QR code." Just reading QR codes with geographic information enables it to start EZ Naviwalk.
Table 1 Main features for A5406CA, A5407CA, A5506T
Model A5406CA A5407CA A5506T
Size 52 x 102 x 28mm 52 x 102 x 26mm 49 x 95 x 25mm
Display (Main/Sub)(inch) 2.3/1.1 2.2/1.1 2.2/1.0
Camera 3.2M-pixels CCD 2M-pixels CCD 1.3M-pixels CCD
EZ Appli Java Java BREW
Chaku Uta Available Available Available
EZ Naviwalk -- -- Available
A5406CA A5506T
(Atsushi Mochizuki, NE Asia)
http://neasia.nikkeibp.com/wcs/leaf/CID/onair/asabt/news/308192
Thinking of Switching Wireless Providers? Verizon Wireless Has Nation's Most Reliable Network
Wednesday May 19, 8:33 am ET
Local Number Portability Gives All Wireless Users the Freedom to Select Verizon Wireless' Award-winning Network
BEDMINSTER, N.J., May 18 /PRNewswire/ -- On May 24, wireless customers across the United States will be able to keep their numbers when they switch wireless service providers. Reliable wireless coverage is the most important factor for consumers deciding which service provider to choose, and for customers thinking of making the switch, Verizon Wireless, the nation's leading wireless service provider, reminds customers that its network completes more customer calls in more places than any other U.S. service provider. More wireless users in the United States have selected Verizon Wireless than any other wireless provider for their wireless needs -- a total of 39 million customers from coast to coast.
ADVERTISEMENT
Since November 24, 2003, when number porting went into effect only in the top 100 markets, significantly more customers have switched to Verizon Wireless than have ported away to other service providers. The company has the lowest churn rate -- the percent of customers who leave for another service provider -- in the industry, demonstrating that Verizon Wireless customers are more likely to stay with the company than with any of the other national service providers. The quality of Verizon Wireless' national network, paired with the ability to offer the best value of any wireless service provider and award-winning customer service, enables Verizon Wireless to continue adding customers seeking the most reliable coverage from their wireless provider while constantly expanding coverage and capacity.
Network Investment
Verizon Wireless continues to demonstrate its commitment to continually improving its voice and data services -- even while some wireless service providers are scaling back spending on their networks. Verizon Wireless has invested more than $1 billion in the first three months of 2004 alone to install new cell sites, grow the network's capacity and engineer other service improvements to further strengthen the nation's largest and most reliable wireless network. Currently, the company operates more than 150 switching facilities and 20,500 cell sites, or antennas, throughout the nation. On top of this regular and constant investment is an incremental $1 billion being used this year to build a new broadband wireless network for business and individual customers.
Every year since the formation of the company in 2000, Verizon Wireless has invested more than any other U.S. wireless provider -- more than $4 billion annually -- to maintain and expand its high-quality network nationwide. Last year, Verizon Wireless again dedicated more financial resources than any other wireless service provider to network enhancements.
Network Testing
Verizon Wireless continues to dedicate significant financial and human resources to improve its network. The company deploys a fleet of 50 test vehicles managed by company engineers who each drive more than 100,000 miles per year continuously testing the network and identifying areas for improvement. These engineers are the real-life test men and women who inspired the company's national television advertising campaign, "Can you hear me now? Good.®"
The company's unique test vehicle fleet is equipped with computers that each automatically make more than 300,000 call attempts monthly on the Verizon Wireless network and the networks of other carriers, ensuring that the Verizon Wireless network continues to meet the company's own high standards for call quality.
Network Quality and Accolades
Over the years, Verizon Wireless has been recognized for its network leadership and quality. Earlier this month, Bedford Communications, Inc.'s LAPTOP magazine announced that Verizon Wireless was selected as LAPTOP Editors' Choice Award for Best Overall Carrier because "As far as quality goes, Verizon Wireless is as definitive a winner as you can get. To find a cellular companion like Verizon Wireless in this day and age -- that is, reliable and garble-free -- is a beautiful thing." LAPTOP Editors' Choice Award for Best Overall Carrier is revealed in the article, "Wireless Winners and Losers" by Jon Gibson and Brian Nadel, in the May 2004 issue of LAPTOP magazine.
In addition, an April 2004 survey by Strategy Analytics found that, "Verizon Wireless is the market leader for 'user satisfaction,' and beats all its competitors as the destination of choice for 30 percent of users who may churn."
Customers wishing to join the nation's leading wireless provider can make the switch by visiting one of more than 1,200 Verizon Wireless Communications Stores, by calling customer service at 1-800-2 JOIN IN, or by visiting www.verizonwireless.com.
About Verizon Wireless
Verizon Wireless is the nation's leading provider of wireless communications. The company has the largest nationwide wireless voice and data network and 39 million customers. Headquartered in Bedminster, NJ, Verizon Wireless is a joint venture of Verizon Communications (NYSE: VZ - News) and Vodafone (NYSE and LSE: VOD - News News). Find more information on the Web at www.verizonwireless.com. To receive broadcast-quality video footage of Verizon Wireless operations, log onto www.thenewsmarket.com/verizonwireless.
--------------------------------------------------------------------------------
Source: Verizon Wireless
http://biz.yahoo.com/prnews/040519/nyw017_1.html
Sprint and LG Mobile Phones Debut the 'Little Black Dress' of Wireless Handsets
The Sleek and Stylish VI-5225 Allows Users to Experience High Fashion and
High Tech at Low Cost
OVERLAND PARK, Kan., and SAN DIEGO, May 19 /PRNewswire/ -- LG Mobile
Phones, a leading worldwide provider of communications equipment and
solutions, and Sprint (NYSE: FON; PCS) which operates the largest all-digital,
all-PCS nationwide wireless network, are launching the "little black dress" of
mobile phones, the fashionable new Sprint PCS Vision Phone VI-5225 by LG. The
compact handset is available in Sprint Stores nationwide for $49.99 after
rebates ($199.99 SRP).
Like the wardrobe classic, this handset delivers style and simplicity in
one sleek, black package. Designed in LG's trademark clamshell silhouette,
the VI-5225 takes the idea of a compact cell phone to new levels with a
hidden, internal antenna and the thickness of only one inch. In addition, the
VI-5225 weighs in at a little more than three ounces, making it the latest LG
handset to feature sleek, lightweight design and an impressive array of basic
features.
"This phone is a perfect example of the sleek design and long list of
features that are part of every LG handset, no matter what the price point,"
said Jeff Hwang, vice president of marketing at LG Mobile Phones. "With
Sprint's unmatched service and PCS Vision capabilities, the VI-5225 is an
economical handset with all the unique style and great functions of a more
expensive model."
Additional features of the Sprint PCS Vision Phone VI-5225 by LG include:
* Sprint PCS Vision capable- Screen savers, ringtones, Music Tones,
games and other applications, Web.
* SMS Text Messaging- Messages can be sent from the phone's standby
screen.
* Large full-color screen- 1.06" by 1.42" STN display with 4K colors.
* Digital dual-band
* Standard rechargeable Li-lon Battery- Provides up to 2.5 hours
continuous talk time or up to 192 hours continuous standby time in
digital mode.
* Built-in personal tools and planner- includes an alarm clock, calendar
with scheduler, notepad, calculator, world clock and EZ tips.
* Internal Phone Book- Holds 200 entries with up to 5 numbers per entry
* Monitor Mode- Listen to your voicemail or any other call in this
convenient hands-free muted mode.
* 2.5 mm Universal Jack- Accommodates most standard headsets for
hands-free operation.
* Multiple Languages- Supports English and limited Spanish text prompts.
About Sprint
Sprint is a global integrated communications provider serving more than
26 million customers in over 100 countries. With approximately
65,000 employees worldwide and over $26 billion in annual revenues in 2003,
Sprint is widely recognized for developing, engineering and deploying
state-of-the-art network technologies, including the United States' first
nationwide all-digital, fiber-optic network and an award-winning Tier 1
Internet backbone. Sprint provides local communications services in 39 states
and the District of Columbia and operates the largest 100-percent digital,
nationwide PCS wireless network in the United States. For more information,
visit http://www.sprint.com.
About LG Mobile Phones
LG Mobiles Phones' expertise in designing sleek, user-friendly phones has
proven wildly successful in the U.S. market, where the company's market share
of all CDMA handsets has exponentially grown in just five years. LG has
claimed 25 percent of the CDMA market share in the U.S. 2003, ranking LG as
the largest manufacturer, according to analysts at Strategy Analytics. LG has
plans to increase its market penetration even further with an aggressive brand
campaign and a competitive line of next generation high-speed voice and data
mobile phones.
Headquartered in San Diego, Calif., LG Mobile Phones is the North American
wireless division of LGE USA, a business unit of LG Electronics of Seoul,
Korea. Established in 1958 as Korea's pioneer consumer electronics company,
LG Electronics is a major global player in electronics, information and
communications products. LGE was the first manufacturer to commercialize the
CDMA digital mobile communication system with its support of the launch of the
SK Telecom Network in Korea.
With annual sales of approximately $17 billion, LGE operates research and
development, manufacturing and sales and marketing facilities around the world
and employs more than 55,000 individuals in 73 countries. More information
can be found at http://www.lgmobilephones.com.
SOURCE LG Mobile Phones
Web Site: http://www.lgmobilephones.com
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/05-19-2004/0002177465&...
SK Telecom Unveils World's 1st Mobile Broadcasting Phone
By Kim Tae-gyu
Staff Reporter
SK Telecom, Korea's largest wireless telephony carrier, on Wednesday introduced the world's first mobile broadcasting handsets made by LG Electronics.
SK Telecom demonstrated satellite digital multimedia broadcasting (DMB) services at the Expo Comm Wireless Korea 2004, which opened its four-day exhibition at COEX in southern Seoul.
LG's DMB phone, SB-100 folder model, has a 2.4-inch main display with another external screen and its battery can last as long as one and a half hours while watching video clips.
The satellite DMB is a next-generation feature, which enables people to enjoy broadcasting on the move via handheld terminals like cell phones or personal digital assistants (PDAs).
SK Telecom and its affiliate TU Media seek to pilot-run the compelling services from this coming July with the commercial kickoff scheduled a month later.
With the advent of the mobility-specific service, people will be able to watch seamless video with CD-quality sound ubiquitously. Mobile reception at up to 150 kilometers per hour will also be possible through in-car terminals.
TU Media plans to run a total of 39 channels, including the retransmission of terrestrial broadcasts or cable TV programs as well as music and news clips.
Samsung Electronics, the ferocious rival of LG, also unveiled its own satellite DMB phones at the event.
The Expo Comm Wireless Korea 2004, which is held by the Ministry of Information and Communication, is the nation's biggest international telecom exhibition.
At the ninth edition of the annual high-tech fair, roughly 50 firms from five countries made their presence with their top-of-the-line digital products.
The exhibition will continue through this Saturday, participated by local outfits including SK Telecom, Samsung Electronics and LG Electronics and Qualcomm from the Untied States.
voc200@koreatimes.co.kr
05-19-2004 18:23
http://times.hankooki.com/lpage/tech/200405/kt2004051918215811790.htm
AT&T Gets New Life in Wireless Market With Sprint Deal
2:23 PM EST Tues., May 18, 2004
In a move that signifies its first step toward re-entering the wireless market, telecommunications giant AT&T Tuesday announced a five-year agreement with Sprint that will allow AT&T to sell wireless services once again.
The agreement, which includes both business and consumer services, is effective immediately. Financial terms were not disclosed.
As a part of the deal, AT&T will offer new wireless services as a Mobile Virtual Network Operator, or MVNO. AT&T Chairman and CEO David Dorman said the move should enable the carrier to get back into the mobile phone business without laying out a significant amount of money.
"In a world where customers increasingly desire the flexibility of mobile communications, we are confident that they will want to buy AT&T wireless services from one of the most trusted names in communications," Dorman said in a prepared statement. "AT&T has proved it is capable of rolling out bundles of new and complex services quickly and cost-effectively, and we are excited to have this important capability that will help us better serve customers."
Kevin Crull, AT&T senior vice president and general manager for wireless services, echoed these sentiments and emphasized the company intends to widen availability of its wireless service by adding to popular consumer bundles of communications products. During a conference call Tuesday morning, Crull said products such as the AT&T OneRate local and long-distance plans and AT&T's CallVantage VoIP services were among those anticipated to expand.
A host of wireless services from the Bedminster, N.J.-based carrier also will be offered to enterprise, and small- and medium-sized business (SMB) customers. Crull added that as integration of wireless handsets with WiFi networks improves over the next 18 months, AT&T plans to offer handsets that also allow customers to make VoIP calls over broadband connections in homes and businesses.
--------------------------------------------------------------------------------
"We see this as a time for growth," he said. "We are looking forward to expanding our services across the board."
Under the agreement with Sprint, AT&T will provide its own unique content and applications, operator assistance, 411 information service, customer care, billing and handsets, allowing it to differentiate much of its customers' experience. The company also plans to carry long distance and international calls made by its wireless customers over its own long-haul network.
Additional terms of the deal include freedom for both parties to compete in the marketplace without restrictions, and the ability for AT&T to incorporate ISP platforms, value-added voice services, and Virtual Private Networking services into Sprint's existing wireless data network. For Sprint President and COO Len Lauer, this final benefit was the one that sealed the deal.
"We are delighted that AT&T has expressed their strong vote of confidence in the performance and capabilities of our nationwide CDMA network," he said. "We believe this agreement provides substantial positive benefits for both of our companies."
Telecommunications industry experts opined that the move will help AT&T compete with operators like Verizon and SBC Communications, which already use their stakes in the top U.S. wireless services to combine mobile offers with their declining traditional businesses. Cingular Wireless, part-owned by SBC, agreed to buy AT&T Wireless Services in February.
Through Tuesday's deal with Sprint, AT&T will be able to sell mobile services under its own brand again after the close of the Cingular/AT&T Wireless acquisition, expected to happen in the fourth quarter. AT&T is currently testing wireless services in select markets across the U.S., and company officials indicated that most of these services should be available to channel partners and customers sometime later this year.
http://www.crn.com/sections/BreakingNews/dailyarchives.asp?ArticleID=50229
Cell switch rules go nationwide May 24
Tuesday, May 18, 2004 Posted: 2:48 PM EDT (1848 GMT)
WASHINGTON (AP) -- Starting next week, millions of people in small cities and rural areas will be able to take advantage of federal rules allowing cellular users to keep their phone numbers when switching to new wireless carriers.
http://www.cnn.com/2004/TECH/ptech/05/18/cell.phone.numbers.ap/index.html
Ovum Comments on AT&T Getting Back into the Wireless Game; Announces MVNO Agreement with Sprint
BOSTON--(BUSINESS WIRE)--May 18, 2004--Commentary by Michael Doherty, Vice President, Telecoms Practice, Ovum.
"AT&T announced today that it will re-enter the wireless market it left three years ago when it spun off AT&T Wireless. AT&T will resell Sprint CDMA wireless service in the US under a five-year agreement that allows AT&T control over all customer-facing aspects of the offer, such as marketing, pricing, distribution, and customer service. The main driver for this venture, to launch commercially by year-end, is to round out AT&T's bundled offer of local and long distance telecoms services. With the impending return of the AT&T Wireless brand after the acquisition by Cingular is completed, AT&T had been signalling its intention to launch some type of wireless offer. Today's announcement, devoid of details on the offer or MVNO agreement, may be an attempt to stave off the recent bad press from AT&T Wireless' misfortunes and associate the brand with a future.
"AT&T also indicated that this announcement is the beginning of a broader wireless strategy that is likely to include other network partners in other markets. Given AT&T's global focus, this is a must-have, as coveted multi-national clients will inevitably demand access to AT&T 'wireless' service while travelling, and the prospects for CDMA overseas are limited, especially in Europe. Nevertheless, the deal is a good move for both AT&T and Sprint as it feeds both companies' need for growth, although in both cases it will be late 2004 or even early 2005 until the results begin to kick in. Costs associated with the deal, however, will begin to rack up almost immediately. Now the task will be rolling out services as quickly as possible.
"One major barrier to an aggressive rollout will be the AT&T Wireless/Cingular merger. As long as this drags on, AT&T cannot roll out services under its own brand (although the company alluded to a limited pre-merger rollout, but was not clear on how this would be done). Any delay may damage AT&T's ability to leverage its branding and offer converged services.
"By going down the MVNO path, AT&T follows the pattern of UK incumbent fixed operator BT, which shed its wireless business unit (subsequently rebranded as O2) and then entered into an MVNO arrangement with that spun-off operator. The BT example illustrates what a long process becoming an MVNO can be, and how long it will take before AT&T is able to offer a fully-fledged mobile voice and data service, even once it begins offering service later this year. BT has been acting as an MVNO of sorts since mid-2003, but even now it doesn't offer a fully-fledged suite of data services.
Overall take: good news for both AT&T and Sprint, but the positive side won't kick in until 2005, while the costs will impact almost immediately," he concludes.
Contacts:
Ovum
Madeline Neylon, 617-722-4630
mxn@ovum.com
http://home.businesswire.com/portal/site/altavista/index.jsp?ndmViewId=news_view&newsId=20040518...
Verizon Pushes Fiber Network While Rivals Wait
Verizon Communications Inc. on Wednesday will provide more details about its $1 billion plan to build fiber optic networks in nine states, a risky strategy some analysts say may be the only salvation for beleaguered local telephone companies.
by Justin Hyde
The company has committed to making the new network available to one million homes and businesses by the end of the year -- more than tripling the number of customers with access to fiber optic connections.
But analysts express skepticism that Verizon can meet its goal, and question how many customers will actually pay to connect to the network. Plus, newer technologies such as high-speed wireless services could emerge as viable, lower-cost options -- just as Verizon tries to recoup its investment.
The "Baby Bells" have long regarded networks built on fiber optic cables as the ultimate weapon to fight off challenges from cable companies and new competitors. Such networks could carry video on demand, telephone calls and Internet downloads at speeds more than 30 times faster than today's fastest home broadband links.
The Bells have pushed into new markets as the local phone business erodes and demand for high-speed Internet service continues to rise. But Verizon's rivals have been reluctant to build fiber networks, citing uncertain federal regulations, high costs and payoffs that might be a decade away.
"Right now, there's not really supply or demand for the speeds that fiber provides," said Yankee Group analyst Patrick Mahoney. "This is a massive investment and a massive cost ... they don't want to commit to anything when there's too much uncertainty."
POLE POSITION
Fiber optic cables use light to transmit data at far greater speeds than copper wires, but cost far more to install and only about 70,000 U.S. homes have such connections today.
Wall Street analysts put the cost of connecting one customer to fiber at between $1,300 and $1,700, compared with $1,000 for a conventional phone line. Merrill Lynch analyst Tal Liani estimates running fiber optics to 10 percent of U.S. households might cost more than $10 billion.
Experts say Verizon's approach will likely try to minimize costs, such as targeting towns where it can run cables on poles rather than burying the lines.
IDC analyst Sterling Perrin says that by focusing on extending its network, Verizon is betting it can wait to connect customers until the prices for home equipment -- which can be three-fourths of the overall cost -- fall.
SBC Communications Inc. and BellSouth Corp. have been more cautious about their fiber network plans. Both have trials running in small towns and both have made no commitments on future roll-outs.
Their executives say federal regulations are a major roadblock. The Bells must lease their copper-wire local networks to competitors at government-set rates, but they argue they should not be forced to do so for new technologies.
The Federal Communications Commission has said the Bells do not have to share any new fiber connections they make directly to customers. But the commission has yet to decide whether the Bells have to share fiber upgrades to neighborhood central offices.
Many analysts say the other Bells cannot afford to wait too long before launching their fiber efforts.
"At least fiber gives the (Bells) a rock solid platform upon which to rebuild their business model," said Deutsche Bank analyst Viktor Shvetz in a recent report.
"That has to be better than the current situation, where the Bells are not really masters of their own destiny."
© 2004 Reuters
http://www.bizreport.com/article.php?art_id=7196
BT teams up with Vodafone in mobile push
Tue 18 May, 2004 11:34
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LONDON (Reuters) - BT Group says it is teaming up with former arch-rival Vodafone, the mobile phone market leader, to boost its fledgling cellphone business.
BT BT.L , which long battled Vodafone VOD.L in its domestic market before spinning off its mobile arm in November 2001, said on Tuesday it hoped the alliance would help it generate around 1.0 billion pounds in annual revenues in five years.
"It is a first relationship of its kind, going way beyond any normal service provision deal, as we will work closely on a number of fronts, with Vodafone UK providing the network services for BT's internal and external requirements," BT's retail arm chief Pierre Danon said in a statement.
BT, which is searching for fresh growth opportunities to offset falling revenues in its core fixed-line business, announced plans to return to the mobile market last June. It now has 170,000 residential and business mobile customers.
As part of a move to ensure that it will not lose customers to its rivals, BT said it planned to launch a combined fixed and mobile phone, dubbed "Project Bluephone", before the end of the year.
The new phone will allow customers to make both fixed and mobile calls whenever they are in reach of a BT wireless access point in their homes or offices, using one phone.
"If they move out of coverage range, they will seamlessly link to our partner's cellular GSM or 3G (third generation) network for voice and data, giving them the best available connection wherever they are," BT said.
BT shares climbed 0.6 percent to 170.25p, while Vodafone stock stood almost one percent stronger at 135p.
http://www.reuters.co.uk/newsPackageArticle.jhtml?type=businessNews&storyID=512925§ion=f...
AT&T Teams Up With Sprint To Offer Wireless
Tuesday, May 18 @ 05:31:10 PDT
AT&T will offer wireless services to consumers and businesses nationwide through a new agreement with Sprint.
From AT&T's press release:
AT&T Corp. today announced that it has taken its first step in re-entering the wireless market by reaching an agreement with Sprint that will allow AT&T to sell AT&T-branded wireless service to its over 30 million business and consumer customers. As a result of the five-year agreement, AT&T expects to significantly expand the wireless services it is currently testing in select U.S. markets with hopes of a launch later this year.
"In a world where customers increasingly desire the flexibility of mobile communications, we are confident that they will want to buy AT&T wireless services from one of the most trusted names in communications," said AT&T Chairman and CEO David W. Dorman. "AT&T has proved it is capable of rolling out bundles of new and complex services quickly and cost-effectively, with top-notch customer service, and we are excited to have this important capability that will help us better serve customers."
"We are delighted that AT&T has expressed their strong vote of confidence in the performance and capabilities of our nationwide CDMA network," said Len Lauer, Sprint's President and COO and President of Sprint Consumer Solutions. "We believe this agreement provides substantial positive benefits for both of our companies and we look forward to serving AT&T's wireless communications needs. "
Dorman said the company intends to widen availability of its wireless service later this year by aggressively adding the service to the company's other popular consumer bundles of communications products. Among them: the AT&T OneRate local and long-distance plans, and AT&T's CallVantage Voice over Internet Protocol (VoIP) service that is delivered over broadband connections. What's more, as integration of wireless handsets with WiFi networks improves over the next 18 months, AT&T plans to offer handsets that also allow customers to make VoIP calls over broadband connections in homes and businesses. AT&T's wireless service also will be offered to enterprise, small and medium business customers. With a large base of customers and expertise in selling new products, AT&T is excited about the opportunities that this agreement presents.
The arrangement with Sprint combines the unique strengths of AT&T's brand, customer base, marketing reach and innovation with a state-of-the-art wireless network that can deliver the voice and data services that customers want. Under the agreement announced today, AT&T, which will offer wireless service as a "mobile virtual network operator," will provide its own unique content and applications, operator assistance, 411 information service, customer care, billing and handsets, allowing it to differentiate much of its customers' experience. AT&T also has the added benefit of carrying the long distance and international calls made by its wireless customers over its own long haul network. Additional terms of the agreement include:
Non-exclusive five-year deal
Freedom for both parties to compete in market without restrictions
The ability of AT&T to utilize existing customer channels and technology to provide directory assistance, customer support, and billing for customers.
The ability of AT&T to sell AT&T-branded handsets through its own vendor relationships
The ability to leverage Sprint's existing wireless data network and innovate on top of it with AT&T-developed content and ISP platforms, value-added voice services and Virtual Private Networking services.
No financial terms of the deal were disclosed
"The MVNO model has achieved great success in Europe and is showing promise in the U.S. when executed with the right strategy," said Dorman. "AT&T plans to take that experience to a new level by giving customers innovative ways to integrate wireless into all of their communication needs. Residential, small business and enterprise customers can anticipate a wide array of choices -- whether as a casual talker who wants a mobile phone for safety or a road warrior whose business depends on it."
Dorman said AT&T is confident in its ability to offer AT&T branded wireless services for several reasons. Although the wireless industry is competitive, demand for wireless voice and data service continues to grow. Also, recently introduced local number portability rules that let customers take their wireless phone numbers with them when they switch carriers mean that carriers who market successfully face fewer barriers to taking market share.
Dorman added that the MVNO model allows AT&T to re-enter the market without incurring significant capital spending costs. AT&T also hopes to benefit from its scale and streamlined internal systems, as well as its status as one of the world's most recognizable companies.
http://news.designtechnica.com/article3839.html
Samsung Will Bring EV-DO Phone To U.S.
Monday, May 17 @ 09:44:10 PDT
Samsung Electronics Co. announced Monday that it would place the 'worldphone' on the U.S. telephone market in this year.
A cell phone capable of using wherever the user is, the world phone made its first appearance at the CeBIT 2004 Conference in Hanover, Germany in March.
The state-of-the-art phone is compatible for both CDMA 2000 1X and the EU's GSM mode.
"Given the current demand for globally accessible phone, like ours, the user will increase by millions every year. After testing waters by introducing CDMA 20001X, GSM and new GPRS models this year, the company will unveil EV-DO phones by 2005," according to a Samsung Electronics official.
http://news.designtechnica.com/article3830.html
Spain's New Empire Builder
CEO César Alierta puts Telefónica on top in Latin America's wireless market
With his cautious manner, César Alierta hardly seems an empire builder. Yet the chairman of tele-communications giant Telefónica is precisely that. Almost four years after taking over Spain's largest company, Alierta has made his first major acquisition -- and it's a doozy. In March, Telefónica agreed to pay up to $5.85 billion for 10 of BellSouth Corp.'s (BLS ) Latin American wireless companies. That's Telefónica's biggest buy since a spending spree in the 1990s. Assuming the deal goes through, Alierta will have secured almost 12 million new mobile-phone users, from Guatemala to Argentina.
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Alierta will also have gained the top spot on Latin America's wireless ladder. Telefónica already dominates the region's largest wireless market, Brazil, with a 56% share. The BellSouth companies will consolidate its No. 1 ranking in Peru and give it the top position in Chile, Argentina, Venezuela, Nicaragua, and Panama. Analysts say Telefónica should have a 35% market share in the region. "This transaction arose from our policy of seizing growth opportunities," Alierta told shareholders in late April.
Indeed, as growth slows in the fixed-line business in Latin America -- which Telefónica already dominates -- the company predicts that wireless-industry revenues there will nearly double, to $35 billion, by 2008. Pyramid Research, a consultancy in Cambridge, Mass., says mobile users could soar from 118 million last year to about 180 million by 2008.
The BellSouth deal also reflects Telefónica's return to its core business. Alierta has dropped plans for 3G services in Germany, sold TV interests in Spain, and is shopping around Terra Lycos, the Internet portal it bought in 2000.
In Latin America, Alierta now faces only one big rival: Carlos Slim, the Mexican owner of Telmex, a fixed-line company, and América Móvil, a wireless operator. "He and Telefónica are giving each other a run for their money," says Javier Borrachero, an analyst at ING Financial Markets (ING ) in Madrid. Telefónica paid a record $556 for each BellSouth customer -- a sum too rich for both Slim and Telecom Italia Mobiles, which also bid. Alierta figured he could afford to overpay: After huge write-offs in 2002, Telefónica reported net profit of $2.6 billion for last year, on revenues of $33.8 billion. "Telefónica could not let BellSouth go to Slim," says Borrachero.
PREPAID CUSTOMERS. Alierta must now get more growth out of his new assets. Last year, BellSouth earned $867 million from the companies it just sold, on revenues of $2.5 billion. Its users are among the region's most profitable, thanks to a preponderance of well-to-do contract customers. But the big growth in the region is at the market's low end -- among prepaid-card users. That's where América Móvil operates, luring users with low prices and a big phone store network. Alierta's task is to hold on to BellSouth's upmarket position while pushing into the mass market. And Slim isn't sitting still. Last year, América Móvil made wireless acquisitions in Brazil, Argentina, and El Salvador. While the BellSouth deal makes Telefónica the region's leader, with 44 million wireless subscribers, América Móvil, which has 78% of the Mexican market, is close behind.
Although the BellSouth deal still needs regulatory approvals, Telefónica's only real antitrust worry is in Peru, a small market where it could control a 74% share. Still, the transaction may not be sealed before yearend. Telefónica could then realize $1 billion from a range of synergies, says Carlos Rodríguez, regional manager at Pyramid Research. These include cost savings on tower construction and more bargaining power with handset suppliers. If Alierta can draw new users, he may win against the mighty Slim.
By Juliane von Reppert-Bismarck in Madrid
http://www.businessweek.com/magazine/content/04_21/b3884089_mz054.htm
3G safer than Wi-Fi, claims Orange
By Daniel Thomas at the IT Directors' Forum [17-05-2004]
Operator recommends 3G for more secure mobile computing in the enterprise
3G is a more secure form of connectivity than public Wi-Fi access for enterprises looking to implement mobile computing strategies, claims Orange.
But IT managers need to take greater control of mobile security projects to protect corporate information from falling into the wrong hands, said Nigel Shardlow, head of innovation at Orange UK.
Speaking at the IT Directors' Forum, Shardlow said: "3G will provide the security that public wireless local area networks (Lans) can not, and it will probably be cheaper as well."
Orange plans to make a 3G datacard available in the second half of 2004.
"When looking at mobile security, IT managers should either install a virtual private network client solution or they can even connect the corporate Lan directly into a GPRS or 3G network, meaning that data does not have to go over the public internet," explained Shardlow.
Higher 3G data transfer rates will also drive greater usage of sales and automation applications, GPS tracking and peer-to-peer video conferencing in the enterprise, said Shardlow, but 3G network coverage will initially prevent usage in certain areas.
"As processor technologies improve, what we are going to see is people doing more and more things on smartphones that you currently use a laptop for," he said.
Shardlow predicted that the growth of business applications for smartphones would also increase use of mobile computing in the enterprise, but cautioned that IT managers need to put strategies in place to ensure consistency across the business.
"You do not want multiple devices across the company; consistency is needed, otherwise there could be support issues," he said.
Shardlow also warned that IT managers should do more to protect corporate data on mobile devices from security risks such as 'bluesnarfing' and theft.
"Bluetooth isn't a particularly secure technology unless you take care with it," he said.
"There's a security issue to think about. You need to think about what policies to implement to manage risk."
Resources
The IT Director's Forum 2004
http://www.vnunet.com/News/1155230
Russia Preps for 3G
05.17.04
The huge boom in Russia’s cellular industry has led carriers to plow investment into regional W-CDMA (Wideband Code Division Multiple Access) network trials, with analysts touting the country as a potential hotbed of 3G activity.
By the end of April 2004 wireless penetration in Russia had reached 30.8 percent, taking the total to 44.7 million subscribers, according to analysts at Moscow-based J'son & Partners.
With GSM (Global System for Mobile communications) technology dominating 95 percent of the market’s current cellular services, Russia is expected to adopt the European W-CDMA standard as its 3G technology of choice.
The W-CDMA air interface is part of the Universal Mobile Telecommunications Standard (UMTS). Used with existing GSM core networks, the theory goes, W-CDMA-compliant handsets and base stations can increase wireless data transfer rates to a potential maximum of 2 Mbit/s.
In its latest report, J'Son & Partners states that Russian carriers have conducted extensive trials of W-CDMA networks over the past three years.
Mobile TeleSystems OJSC (MTS) (NYSE: MBT - message board), the country’s largest carrier (16.1 million subscribers), has trialed kit from NEC Corp. (Nasdaq: NIPNY - message board; Tokyo: 6701), Siemens AG (NYSE: SI - message board; Frankfurt: SIE) and Huawei Technologies Co. Ltd. Number two, JSC Vimpel-Communications (VimpelCom) (NYSE: VIP - message board) (13.9 million) has tested equipment from Alcatel SA (NYSE: ALA - message board; Paris: CGEP:PA). (See Alcatel Trials Russian 3G.) Third-place MegaFon (8.1 million subscribers) is testing kit from LM Ericsson (Nasdaq: ERICY - message board), NEC, Nokia Corp. (NYSE: NOK - message board), and Siemens.
J’Son claims that 3G licenses are likely to be awarded in the fourth quarter of 2004 and the first quarter of 2005, with network deployment slated for the second or third quarter of 2005. Commercial 3G service launch “in major Russian cities” is expected in the first and second quarters of 2006.
“The Russian 3G market has a great potential to develop through a combination of positive circumstances,” notes the Cellular Market Watch report. “The government has a key role... by limiting the influence of market inhibitors and ensuring success through a timely and intelligent development of 3G.”
The attraction of Russia’s cellular industry has already led a number of Europe’s Tier 1 carriers to take significant stakes in the market’s three main players. T-Mobile International AG has a 25 percent stake in MTS, and Telenor ASA (Nasdaq: TELN - message board), which is keen to build a growing presence in the region, holds a 29 percent stake in VimpelCom. Scandinavian powerhouse TeliaSonera AB (Nasdaq: TLSN - message board), which is also amassing mobile assets in Northern and Eastern Europe, owns 43.8 percent of MegaFon.
Vodafone Group plc (NYSE: VOD - message board) is also rumored to be making a move on the market following its failed bid to take over AT&T Wireless Services Inc. (NYSE: AWE - message board). (See Vodafone May Go Russian.)
“Strategically, Russia is a very important market for carriers,” adds IDC senior analyst Paolo Pescatore. “There is the potential for huge growth, and many global carriers will be gauging the opportunity for 3G. The fact that licenses are set for award in the next twelve months is another reason why Vodafone may be eyeing up the market.”
— J'stin Springham, Senior Editor, Europe, Unstrung
http://www.unstrung.com/document.asp?doc_id=52855
Qualcomm "perform," estimates raised
Monday, May 17, 2004 5:46:06 AM ET
Loop Capital
NEW YORK, May 17 (New Ratings) – Analysts at Loop Capital maintain their "perform" rating on Qualcomm Inc (QCOM.NAS), while raising their estimates for the company. The target price is set to $70.
Qualcomm Inc develops and delivers digital wireless communication products and services based on the CDMA technology.
According to Loop Capital’s research note published on May 14, Qualcomm intends to resolve its recent supply constraints by making adequate arrangements for chip manufacturing capacities. The company does not plan to invest in establishing in-house manufacturing facilities, the analysts mention. The company’s research and development expenses are, however, expected to continue to increase over the next couple of years, the analysts add.
Qualcomm expects further growth in its CDMA business and has identified the North American, South Korean, Japanese and Western European regions as the near-term growth drivers. According to Loop Capital, the company’s royalty revenue from WCDMA would increase in the near future. Qualcomm’s growth prospects are fully reflected in the company’s current stock valuation, the analysts mention.
The EPS estimates for FY04 and FY05 have been raised from $2.00 to $2.06 and from $2.13 to $2.19, respectively. The P/E estimate for FY05 is 29.4x.
Loop Capital maintains its "perform" rating on Qualcomm.
© 2004 New Ratings
http://www.newratings.com/analyst_news/article_423106.html
Vodafone's 3G Onslaught
17th May , 2004
Europe : Vodafone is now displaying a new "3G" logo upon its website and will be used extensively to promote its forthcoming full-scale commercial 3G launch.
Currently, 3G is launched in a number of countries but mainly just for data services aimed at business users. The full commercial service for mobile phones is currently only available in Germany and Portugal.
The new service is called "Vodafone live with 3G" and the new logo cements the fact that this is a new 3G service. This will bring consumers improved quality, sound, pictures and videos, as well as increased speed when downloading games and ringtones.
The 3G logo will be used in all TV, internet and newspaper advertising campaigns. So when you pop into a Vodafone shop, 3G services and products will carry the 3G logo.
As the new 3G service is launched in each country extensive marketing will take place centering on the fact that Vodafone live is being updated to 3G and called "Vodafone live with 3G".
Further full commercial 3G launches will take place in Australia , Egypt, France, Greece, Hungary, Ireland, Italy, Malta , Netherlands, New Zealand, Spain, Sweden, Switzerland and United Kingdom.
It is not known exactly when these launches will take place yet as the service has already launched in Germany and Portugal it is likely to be in the not to distant future.
http://www.3g.co.uk/PR/May2004/7061.htm
Corporate Focus: DoCoMo Feels Heat of Rival
Monday, May 17, 2004 02:27 AM ET Printer-friendly version
Tokyo -- MASAO NAKAMURA, who Friday was named president and chief executive of Japan's largest cellphone provider, has his work cut out for him.
NTT DoCoMo Inc. (DCM, news), struggling to maintain its chunk of Japan's fiercely competitive cellphone market, announced May 10 that it expects its first drop in annual revenue and a 25% drop in operating profit this fiscal year.
DoCoMo's shares fell 13% after the gloomy forecasts, and analysts are downgrading their outlook for the company. Meanwhile, things are looking better for DoCoMo's main rival, KDDI Corp., whose popular "au" mobile-phone service is beating DoCoMo in the number of new subscribers gained a month.
That is a big change for DoCoMo. Since launching its popular i-mode Web- browsing service a few years ago, the company has been viewed as a successful world leader in cellphone technology. Now, the unit of Nippon Telegraph & Telephone Corp., faces ballooning costs as it tries to persuade users to switch to its third-generation high-speed service while competition for new products is heating up.
"I want to make sure we have a recovery as soon as possible," the 59-year-old Mr. Nakamura said, adding that he is aiming to develop new services and revenue sources and to push the number of subscribers to DoCoMo's 3G service to more than 10 million by March 2005. Subscriptions reached 3.1 million at the end of March of this year.
Mr. Nakamura, now senior executive vice president in charge of marketing, will start his new job after a shareholders' meeting next month, succeeding Keiji Tachikawa, who is retiring from the post but will stay on as an adviser.
Analysts said it won't be easy for Mr. Nakamura. For a start, the company is lagging behind KDDI in churning out glitch-free new products.
KDDI rolled out its own version of 3G service much more smoothly than DoCoMo. The high-speed service allows users to do things that had been impossible with cellphones, such as participate in teleconferences and watch videoclips.
KDDI also launched handsets with unusual shapes and bombarded the airwaves with hip, youthful ads, scoring more new subscribers than DoCoMo for the seventh consecutive month in April.
"They've definitely over the past year and a half had products on offer that DoCoMo has had a hard time countering," said Kirk Boodry, an analyst with Dresdner Kleinwort Wasserstein.
KDDI's mobile-phone division reported 12% growth in revenue for the fiscal year ended March 31. Its operating profit more than tripled, and the company forecast robust growth this fiscal year.
Friday, DoCoMo closed at 196,000 yen ( $1,716), up 1.6%. The company also said it would spend as much as 600 billion yen to repurchase as many as 2.5 million of its shares. KDDI was at 596,000 yen Friday, up 0.5% from the previous day.
Mr. Nakamura, whose experience ranges from finance to labor management, said he expects to boost revenue by expanding into areas that don't rely solely on revenue from voice and data traffic, such as mobile commerce. He also said the company will focus more on increasing the number of corporate cellphone customers. Analysts said the move is crucial for DoCoMo, since it has clout among corporate clients and likely will be able to persuade them to adopt new mobile technology.
DoCoMo also is striving to rekindle its glitzy image. At a Tokyo business show focusing on digital technology last week, the company set up an enormous, flashy display highlighting its latest technology and handsets. This included phones aimed at niche markets, like the new Premini, a sleek, simple handset about the size of a business card and aimed at fashion-conscious men.
The company soon will test a system that allows people to use cellphones to turn electrical appliances on and off when the people are away from home.
Another phone in tests has a chip that allows the phone to function as an electronic wallet or key.
Copyright 2004 Dow Jones & Company, Inc. All Rights Reserved.
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http://www.quicken.com/investments/news_center/story/?story=NewsStory/WSJ/20040517/WS200405170227000...
Vodafone Mobile Connect 3G/GPRS datacard
price: £100-200
Features
Performance
Ease of use
Value for money
Overall
Reviewed By: Andy Shaw
This review updated: 17/05/2004
Featured in magazine:
Issue 82
Manufacturer Contacts:
Supplier: Vodafone
Web Address: www.vodafone.co.uk
Features
The device is designed to slot into the PC-Card (or PCMCIA) slot provided on the vast majority of laptop computers. Once installed you can surf the web, check your email, chat on an instant messenger or do anything that you might normally do when you connect to the internet. The difference is the speed, which in an area with good 3G reception can download at up to 384kbps, is well over half the speed of a standard broadband connection.
Performance
Compared to what you’ll be used to if you already take a laptop out and about, this device is capable of blistering speeds. The downside is that Vodafone’s 3G network is currently only available in a few large cities across the country. When you leave these areas you’ll only be able to connect using the older GPRS network, which is significantly slower. You can check the coverage on Vodafone’s website at www.vodafone.co.uk/coverage.htm.
Ease of use
Getting started is easy – just install the software, plug in the card and you’re off. It comes with a great piece of software that can launch the internet connection, keep an eye on your usage and lead you to your email, web browser or text messages.
Value for money
This is new technology and it isn’t cheap. The part that most users will balk at is the fact that you need a separate sim (and therefore Vodafone account) to put in the card, even if you’re already a Vodafone customer, and you’ll need this in addition to your phone, since the card doesn’t carry voice signals. Once you’ve swallowed this bitter pill things start looking up. How much you’ll pay depends on the usage plan you choose to subscribe to. In the final analysis though, this is a pricey device to run.
Verdict
Once you’ve started to use broadband at home, any other kind of connection falls short. To get an equivalent internet connection while you’re out and about, you can either join the Wi-Fi club and jump from hotspot to hotspot or, if you want to check your email absolutely anywhere on the fastest possible connection, this 3G card is the only way to go. Expect to pay a premium though, at least until the competition catches up.
http://www.web-user.co.uk/products/prod_rev.php?rid=1939
Alcatel puts success down to channel push
By Daniel Thomas [17-05-2004]
Vendor achieves first profitable quarter in three years
Alcatel's channel shake-up has helped it achieve its first quarterly profit in three years.
The telecommunications vendor posted a profit of 134m euros for the first quarter of 2004. It said an overhaul of its reseller channel late last year, which saw the firm shed under-achieving partners, has led to a growth in sales of its IP telephony and Omni switch products.
The firm said it is now looking to grow the number of its reseller partners in a bid to push unified communications, converged networks and wireless in the local government, retail and financial services markets.
"We changed the way we were working in the channel in the latter part of last year and it's having a great effect," said Neal Tilley, Alcatel's northern European solutions marketing manager. "Our profits have been helped by great results from the channel."
Alcatel also saw encouraging growth in the mobile communications sector, with income growing to 70m euros in Q1, compared with 15m euros a year ago.
The firm said the double-digit percentage growth from 3G and mobile computing was also creating new opportunities in video communication, converged payment and messaging.
An increase in enterprises replacing telecommunications systems and switching with converged voice and data IP telephony has also fuelled Alcatel's profits, Tilley claimed.
Alcatel said it was also planning to steal a march on Cisco and Avaya by strongly targeting the government sector with its new wireless products.
"I can only see it getting stronger this year," Tilley said.
He added that Alcatel will also be offering more telemarketing, seminar and branding support to the channel to help maintain the upsurge in sales.
"The aim is to create a channel community based on quality and winning deals," Tilley said.
Pat Botting, managing director of voice and data reseller Freedom Communications, said Alcatel's changing attitude towards the channel, together with the quality of its products, was helping to improve sales.
"If you go back only three or four years up to 80 per cent of (Alcatel) sales were direct," said Botting. "The firm used to dictate to resellers but now it supports them well and has sorted its distribution out."
Botting added that he is also seeing a growth in wireless and voice over IP sales, particularly in the retail sector.
daniel_thomas@vnu.co.uk
http://www.vnunet.com/News/1155206
GSM operators watch CDMA expansion cautiously
Rudijanto, Contributor/Jakarta
Barely a year after the operation of CDMA-based operators the number of GSM users in Indonesia remains unchallenged, as it soared to 20 million as of last month and is expected to reach 28 million by year-end.
With a more established market that comes from years of experience in the country, Global System for Mobile Communication (GSM) operators have succeeded in their struggle to maintain market share in the Indonesian mobile phone market.
Compared with that for GSMs, the market for Code Division Multiple Access (CDMA)-based operators is very small. Telkomsel subscribers totaled 10.7 million while Indosat's and Excelcomindo's were 6.5 million and 3.2 million respectively as of April 2004. The CDMA user market is less than two million.
No doubt the greatest proportion of market share is controlled by Flexi, which already had 450,000 users by the end of 2003. Easia could sell only some of its total 50,000 numbers that the company had distributed to the market since September 2003, by year-end.
Though the total of CDMA users is still small, such growth in a very brief period provides strong reason for GSM operators to worry. Currently, CDMA-based operators such as Flexi and Easia operate fixed wireless access (FWA) phones, while Mobile-8 provides a cellular phone service.
One of the strengths of CDMA-based FWA, especially Telkom Flexi and Easia, is the cheaper rate as compared with GSM-based cellular rates, as the fixed wireless rate is equivalent to that of fixed-line telephone services (PSTN). But its weakest point is that its coverage is limited within certain designated area codes.
However, since most GSM users, around 80 percent, do not have high mobility, which requires them to move beyond a particular area code, GSM operators worry that a significant number of their customers may switch their allegiance to CDMA-based FWA operators.
The government, as regulator, has tried to accommodate the interests of GSM operators by issuing decrees that are expected to dispel their anxiety. Ministry of Communications Decree No. 35/2004 clearly states that fixed wireless operators have to pay the so-called Usage Right Fee (BHP). The amount of BHP is still to be determined.
Meanwhile, recently issued Ministry of Communications Decree PM No. 2/2004 clarifies that FWA has limited mobility and no automutation facility. This means that users of FWA within a particular area code cannot use their phone outside that area code.
Responding to the Ministry of Communications decrees, GSM operator PT Excelcomindo Pratama spokesman Fritz Simanjuntak said what GSM operators wanted was healthy competition between the players in this telecommunications sector.
"For us, Flexi uses the same mobile CDMA technology as Mobile 8. However, Telkom Flexi takes advantge of PT Telkom's fixed-line license, whereas Mobile 8 relies on its cellular license. That is not fair," says Fritz.
Although Indosat will launch its own CDMA-based FWA in East Java by the end of this month, the company's cellular marketing director, Hasnul Suhaimi, also expresses bewilderment at the low tariff charged by FWA operators.
"Basically, the investment cost is not too different to that of GSM but strangely, FWA operators can charge their customers at such a low rate. I don't know if such low rates are sustainable in the long term. My feeling is that if the cost of investment increases due to expansion of coverage, their rates will have to be adjusted," says Hasnul.
Indosat will launch its FWA service, StarOne, in East Java. Hasnul reveals that the StarOne FWA rate will be more or less equivalent to that of other FWAs. That is why, despite being bewildered at the low FWA rate, Hasnul believes that the two services, CDMA and GSM, will have their own market segments.
However, Fritz refuses to accept the term FWA since the telecommunications world knows only two terms, namely mobile phone and fixed phone. In that sense, he says, Flexi is actually a mobile phone and, therefore should be classified as such.
Being a mobile phone system, Fritz insists that FWA operators should have to pay the same amount of BHP as that paid by GSM operators. The BHP is just one of a number of cost components, such as air time, that make up the total cellular fee to be paid by customers.
Flexi, with its FWA rates, has been a source of discontent among GSM operators. With its Flexi, Telkom has real potential to challenge GSM domination, thanks to its massive network.
This explains why GSM operators want the the government to strictly interpret Ministry of Communications Decree No. 2/2004, which clearly states that FWA has only limited mobility and no automutation facility on existing FWA operators.
GSM operators may dislike the presence of CDMA competitors, particularly Telkom Flexi, which seems to enjoy privileges, but they cannot simply neglect the potential to cooperate with CDMA operators in the long run for the sake of service to their own customers.
Currently, GSM operators Telkomsel and Excelcomindo have forged cooperation in inter-operator SMS features with CDMA-based FWA Easia. The Indosat Group is also preparing similar cooperation with Easia.
"We are doing it for the sake of our customers so it is more convenient for them in using our respective services," says Easia public relations officer Norman Ilyas.
As a small CDMA-based FWA, Easia seems to have a low profile. Instead of head-to-head competition with GSM operators, Norman says that CDMA-based FWA seeks to complement GSM services.
"Some people now use both GSM-based cellular and CDMA-based FWA. If they want to communicate with someone within one area, they will use their FWA because it is cheaper, but if they want to communicate with someone outside their area they use their GSM," says Norman.
With such complementary functions, Norman prefers closer cooperation with GSM operators rather than fighting them. Easia has 40 BTSs in Jakarta for both outdoor and indoor connections. With such BTSs, Easia has coverage over about 80 percent of Jakarta, Depok, Tangerang and Bekasi. The company is also expanding its operations in Bandung.
GSM operators who want to upgrade their 2G or 2.5G technology to 3G need to cooperate with CDMA operators if they want to reduce costs. CDMA 2000-1X technology used by FWA operators is ready for 3G. Mobile-8 has even used a more advanced technology, CDMA-1X EVDO.
Kompas daily's Moch S. Hendrowijono wrote that the cost of investment for GSM operators would be reduced if they cooperated with existing CDMA-1X operators. Otherwise, they would have to invest in WCDMA (wideband CDMA) to enter 3G technology, which would be costly for them.
GSM operators will eventually need 3G technology if they want to have more advanced features, such as video-streaming. With current 2.5G using GPRS technology, GSM operators can already provide MMS (multimedia messaging service). But for better quality video-streaming features, they still need 3G technology.
However, not all GSM operators welcome the idea of such cooperation, at least in the near future. Fritz from Excelcomindo says that the demand for MMS services alone is not as great as expected since the majority of customers are still satisfied with voice and SMS services.
"We are not too concerned with 3G because it is only a tool. But we are more concerned with how to get an optimal result from the market. Thus, we have no intention to step in that 3G direction," says Fritz.
Indosat is also careful to invest in 3G because the company has not seen any real demand from the market. Hasnul says that the current market response to MMS is still very weak. That is why he believes that even in the future 3G services will simply become value-added services or an extra on basic voice and SMS services in the next five to six years.
"We are very careful because we don't know if the push to move to 3G is really customer-driven or simply vendor-driven. The ideal is that the demand comes from existing customers but, based on observation of our customers' behavior, they still do not need such services," says Hasnul.
The telecommunication sector remains one of the country's fast-growing revenue sources. While the government is nurturing the growth of CDMA-based FWA and cellular operators, many hope that it will be prudent enough not to stifle the growth of GSM-based operators.
http://www.thejakartapost.com/detailfeatures.asp?fileid=20040517.P01&irec=2
Cut the cord
By Mike Barton
May 15, 2004
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Hutchison and Vodafone are stepping up the mobile price war with new plans aimed squarely at stealing away landline customers.
With Telstra increasing its rates for a monthly line rental to as much as $29.95 from June 1, and Optus charging $28.50 a month, landlines are looking more and more like a luxury.
Last month Vodafone launched new plans with a set number of 20-cent calls to other Vodafone phones.
Hutchison is stepping up its capped plans with its cut-rate Orange service at the end of this month. Orange, available in greater Sydney and Melbourne only, will offer new capped-call plans that directly target the landline.
The plans include $29 with 500 free minutes for calls up to 10 minutes long to any landline. For $99 you get 1000 free minutes to use in the first 10 minutes of calls to landlines; for $149, 1500 minutes; and $199, 2000 minutes. Five-minute calls to other Orange mobiles are free.
The clincher with Vodafone is that every cent you pay goes directly to calls; and calls to other Vodafone mobiles are dirt cheap.
There are no line rental or access charges - prices are set by what you spend on calls a month. With Orange, $29 gets you 500 free landline minutes. Calls over the limits are charged at 30 cents a minute - landline territory again. With landlines, users will be paying nearly $28 a month just for access and basic voice messaging.
"It must be scary for a lot of the [wired phone companies]," says Vodafone Australia's chief, Graham Maher. "The real question is what is the future of copper wires."
Telecommunications analyst Paul Budde says that with Telstra constantly increasing landline rental rates, consumers are looking for alternatives.
"There will be an increased number of people that will cut the landline."
Budde says the first people to do this will be people who don't need their landline for internet access. But he says the landline will get new life with broadband connections that will soon start offering voice calls over the internet, or VoIP.
He says VoIP will take some time to mature but as part of an internet bundle it could see line rentals melt away. In the interim, the main reason people and businesses would not cut the cord now is that they want to keep their numbers.
"The access charges from Telstra are rapidly turning into a tax on telephone numbers," he says.
And the mobile price war will only hot up, says Budde, as Vodafone joins Hutchison's "third-generation" (3G) service, 3, with an upgrade to 3G in the middle of next year. Third-generation systems are as much as 30 per cent cheaper, he says.
Hutchison is already enjoying the benefits of its more efficient 3G network with capped call voice and video plans, which are reportedly drawing 7000 new users a month.
There's also 3G's wireless internet invasion with the launch this month of 3's NetConnect card. It offers maximum 384 kbps speeds - higher than most budget home DSL plans - at a flat casual rate of 0.4 cents a kilobyte, or on a capped plan ranging from 3MB for $10 a month to 100MB for $150 a month.
Maher says Vodafone will match 3's data speeds when it shifts up to 3G but will offer better coverage. Vodafone is also reviewing how it might go about selling.
http://www.smh.com.au/articles/2004/05/14/1084289871893.html
Korea Sets Trends in Global Mobile Banking
By Kim Tae-gyu
Staff Reporter
The mobile phone is increasingly being recognized by banks in Asia as a cost-effective channel to deliver banking and trading services. In Asia's technologically more advanced countries like Korea, Singapore, Hong Kong and Japan, mobile phone market penetration is above 40 percent and accessing customers through this unique and highly personal communication tool is proving highly successful.
According to the Bank of Korea, the subscriber base of Koreans using mobile banking services has tripled in the past 15 months, having now reached almost one million.
Millions of mobile phone transactions are carried out every day throughout Asia, opening huge direct marketing opportunities for banks. Moreover, it can be expected that e-commerce, both B2B and B2C, will grow exponentially as mobile banking takes over in Asian nations.
Soon, more users will be accessing the Internet from cell phones and PDAs than from PCs. Mobile Internet services should therefore definitely be on the agenda of all financial institutions.
Mobile banking services will inevitably expand into the untapped Asian markets, including China, where currently almost 30 million people own cell phones, but where mobile banking has yet to gain broad consumer acceptance.
The widespread presence of Web-surfing cell phones is a must to implement full-scale mobile banking and only a few Asian countries meet the prerequisite at present.
Consequently, in the short term, mobile banking is unlikely to gain a sweeping presence throughout Asia, but the offering and utilizing of financial services through mobile gadgets is an unstoppable global convergence trend and Asia as a whole will be riding the crest of the wave.
Mobile Banking in Korea
Mobile banking is continuing to gain popularity in Korea and the rest of Asia, in line with the exploding digital convergence trend.
For example, the number of clients using mobile banking in Korea, based on either integrated-circuit (IC) chips or portable Internet, amounted to just 1.1 million in December, 2002.
However, the figure more than tripled in 15 months as a total of 3.3 million transactions were reported to the Bank of Korea in March of this year.
Subscriber base also expanded significantly especially for this year, as the number mushroomed from 300,000 at the end of last year to almost 1 million last month.
``Emulating the enormous success of similar services on the Web, mobile banking is proving to be a home run this year with full-fledged implementation,'' Tongyang Investment Bank analyst Lee Tae-jin said. ``The service will gain further momentum in the future.''
Mobile banking is a fusion of mobile technology and financial services, which has emerged after the advent of portable Internet and smart-chip-embedded handsets.
The services enable subscribers to access their bank accounts and transfer funds anytime and anywhere via their handheld communication devices.
Despite having been launched only last September, mobile banking has already became a widespread service as typically trend-sensitive and tech-savvy Koreans resort to the offerings on a regular basis.
``Which is a more convenient way to carry out account transactions? _ to push the keys on your cell phone or to visit the bank branches in person. The answer is self-evident,'' Lee claimed.
He said the service will expand into the untapped Asian markets including China, where currently almost 30 million people own cell phones, although there remain some problems to settle en route to the genuine globalization of mobile banking, including security loopholes and technology standardization.
Definition and Development of Mobile Banking
In fact, financial services through cell phones have been possible since the wireless Internet came into existence, expanding the online banking concept to the mobile environment.
Some also calls the wireless application protocol (WAP)-based features as mobile banking and in that sense many nations in Asia and the world are already deploying mobile banking.
However, the genuine and full-blown mobile banking based on smart IC chips is currently being utilized only in Korea and some other mobile juggernauts.
The nation's smallest operator stirred things up last September by kick-starting the real mobile banking by forming a partnership with Kookmin Bank, Korea's biggest lender.
The new chip-based offerings, named ``Bank ON'' were a big hit as a total of 280,000 people signed up for the new services during the first four months after its inception.
Bigger rivals of SK Telecom and KTF jumped onto the bandwagon to draw new customers or to lock old ones in, starting their own services from March of this year.
Currently, business leader SK Telecom is teaming up with eight local banks _ Woori, Shinhan, Chohung, Hana, Kyongnam, Kwangju, Jeonbuk and Jeju _ and retains 200,000 mobile banking customers under the title of ``M-Bank.''
The second-largest operator, KTF, has attracted 70,000 subscribers under the flag of ``K-Bank'', which includes alliances with Kookmin, KorAm and Pusan banks.
However, LG Telecom is still savoring the first-comer advantage with its Bank On clients topping 700,000 as of last month. The underdog operator has teamed up with Korea Exchange, Korea First, Kookmin banks and Industrial Bank of Korea.
The sky seems to be the limit for the carriers' banking aspiration as they set their sights on further expanding their tie-ups in order to survive the stiff competition in Korea's mobile landscape.
Asian Prospects of Mobile Financial Services
From the perspective of Korea, where more than 70 percent of its 48 million population carries one or more mobile handsets, the wireless infrastructure of most other Asian nations is still n its infancy.
``At the moment, only Singapore and Japan have the luxury of enabling mobile banking with their state-of-the-art wireless network architecture in Asia. For others, such financial services via handsets are not imminent,'' said Kim, analyst from Mirae Asset.
The widespread presence of Web-surfing cell phones is a must to implement full-scale mobile banking and only a few Asian countries meet the prerequisite at present.
Singapore has evolved into a powerhouse of wireless financing thanks to its Call for Collaboration (CFC) programs, masterminded by the Infocomm Development Authority of Singapore (IDA).
The city state, where almost 80 percent of its 4.2 million population owns cell phones, currently deploys a mobile payment system based on the European standard of the global system for mobile communication (GSM)
Meanwhile, Korea's mobile network is being operated by the code division multiple access (CDMA) technology, a competitor to the GSM.
In Japan, another mobile powerhouse of Asia, WAP-based mobile banking is seen everywhere, but as far as the chip-based offerings, the nation has yet to land full-blown services.
In other Asian nations, even WAP-based mobile banking is at its canvassing stage. More accurately, the countries are now busy in converting the focus of telecommunications from landline to wireless.
In the near term, mobile banking is not likely gain a sweeping clout in such nations, but the financial services through mobile gadgets are a kind of global convergence trend and Asia as a whole will be going on the ride, according to Mirae Asset's Kim.
Banking on Mobile Banking
Although mobile banking clearly has a bright future, there remain some barriers like security worries and disputes on a standard, unified chip, on the way to the entrenchment of the services.
Usability, interoperability and security are major considerations in mobile banking. To secure interoperability and enhanced usability, versatile chips are a must, which can interconnect several banks and carriers at a time.
Currently, one chip can accommodate mobile banking service for just one bank, which means customers are required to exchange chips specific to a certain bank every time they make a transaction.
In an effort to rectify this problem, mobile carriers led by SK Telecom are seeking to invent new types of chips that will include several credit cards and debit cards in a single smart chip.
The operators' commitment to the smart chip, however, aroused the ire of some banks, which raised concerns regarding the security of the new solution.
``Banks seem to worry mobile carriers will take an upper hand if they hold master keys to the smart chips, which include all banks. Behind the scene both sides are throwing their weight to take the initiative,'' Merits Securities analyst Jeon Sang-yong said.
Security algorithm disputes and storage space shortage are other headaches to overcome en route to firmly establishing mobile banking.
Top carrier SK Telecom goes with the SEED standard in tune with the decision of the Korea Telecommunications and Clearings Institute.
In comparison, Kookmin Bank began with triple-DES (data encryption standard) last September because SEED was not available at that time.
Adding to the difficulties, currently even the top-of-the-line chip can only store two credit or debit cards at a time with its 16 kilobyte space as one card need at least 6 kilobytes.
Carriers are saying they will roll out 32 kilobyte-chip-embedded handsets soon, but still must enlarge the storage space by several notches to accommodate smart cards.
``As players of the leading mobile banking nation, the two sides must uncover a win-win solution, putting the benefit of customers first. We should set the trend of the world as far as mobile banking is concerned,'' Jeon concluded.
voc200@koreatimes.co.kr
05-16-2004 14:05
http://times.hankooki.com/lpage/special/200405/kt2004051614041511440.htm
3G showcase at ICC
By Maya Salleh
Lucent Technologies will hold an exhibition themed 'View Life in Lucent 3G' during the International Infocommunications Technology Expo and Seminar from May 17 to 19 at ICC.
Lucent Technologies will be participating in the International Infocommunications Technology Expo and Seminar from May 17 to 19 at the International Convention Centre to showcase its exhibition themed, 'View Life in Lucent 3G', the first of its kind to be organised in Brunei. The exhibition will demonstrate how 3G can become an invaluable part of our daily lives at present and in the future.
According to a press release yesterday, Lucent's Mobility Solutions Group, a global leader in the development of commercial 3G spread-spectrum solutions, has deployed CDMA2000 networks with more than 25 mobile operators in North and South America, Asia, Europe and in the Australia/New Zealand region.
Lucent is also collaborating with major UMTS/W-CDMA operators in Asia, Europe and North America on the development of their 3G networks. So far it has deployed more than 90,000 spread-spectrum base stations for mobile operators worldwide, of which 50,000 are already supporting 3G services.
3G's wireless experience provides users with high-speed data transfer on a mobile device, thus offering endless life and business applications to enhance the way people live, work, communicate and do business and enable the access of information securely at anytime and anywhere, thus increasing convenience, effectiveness and free time.
Lucent is able to showcase 3G in the Sultanate with the support from the Ministry of Communications and the Brunei Authority for Info-Communication Technology.
Courtesy of Borneo Bulletin
http://www.brudirect.com/DailyInfo/News/Archive/May04/160504/bb10.htm
Can Nextel Strike Up the Band?
MAY 17, 2004
STREET WISE
By Olga Kharif
Can Nextel Strike Up the Band?
The wireless spectrum it needs may carry a high price -- and what it gets might not be what it wants. Dismal prospects? Maybe not
In the past month, investors have soured on Nextel (NXTL ), the nation's fifth-largest wireless company with 13 million subscribers. The service provider's first-quarter subscriber numbers, released Apr. 22, missed expectations, and analysts have been fretting about the outfit's plans to purchase and swap additional network spectrum.
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Nextel's problem is that it uses the same frequencies as police and fire departments. All parties suffer from interference, so the Federal Communications Commission (FCC) has been trying for several years to relocate part of Nextel's service to a different wireless spectrum. When that happens, analysts figure Nextel could build a superfast network similar to those being constructed by rivals like Verizon Wireless (VZ ), the No. 1 U.S. wireless company.
In April, Verizon rattled investors by saying it thinks the spectrum for which Nextel is planning to pay around $2 billion is actually worth more like $5 billion. Nextel's shares, which have fallen 6% over the past month, to around $24, declined as investors pondered the possibility that the outfit would have to pay substantially more. On May 13, FCC Chairman Michael Powell said he hopes the agency can decide the issue by the end of the month.
BIDDING WAR? The possibility of a resolution has some on the Street bullish about Nextel. Robert Straus, portfolio manager of the $56 million Icon Telecommunications & Utilities fund, figures Nextel's stock is worth nearly $34 -- around 40% above current levels. Michael Mahoney, senior portfolio manager of the $110 million EGM Capital wireless fund, has been buying Nextel, which now accounts for 2.3% of the fund's holdings.
The FCC is anxious to solve the spectrum problem because of its potential impact on public safety, notes Thomas Watts, an analyst with S.G. Cowen in New York. And the National Association of Broadcasters (NAB), a powerful lobbying group that represents TV and radio stations, is on Nextel's side. On May 3, Nextel announced it would pay TV broadcasters $512 million to free up the spectrum it hopes to receive from the FCC.
Yet the negotiations are complicated. While Nextel is asking for spectrum in the 1.9 gigahertz range, there is a chance that it might instead receive 2.1 gigahertz spectrum, which requires more expensive wireless gear. On May 11, Nextel reiterated that it would not even consider the 2.1G spectrum. "It's really not an acceptable alternative," says Paul Saleh, Nextel's CFO. But that refusal may be more of a bargaining position, some analysts figure. As Mahoney notes, any spectrum would help Nextel build a better network and make it more competitive over the long term.
Even if Nextel ends up with the spectrum it wants, the eventual cost may be higher than it would like if Washington decides that an auction is needed, some analysts say. A price of between $3 billion and $3.5 billion for the spectrum is likely priced into the shares, says Greg Gorbatenko, an analyst with Marquis Investment Research in Chicago, who has a hold rating on the stock.
INDUSTRY LEADER. If the auction scenario were to play out, Nextel could afford the higher price tag. Although it carried $10.3 billion in long-term debt as of Mar. 31, some of which it plans to retire this quarter, Nextel ended the last quarter with $2.7 billion in cash and short-term investments. This year should see some $1.8 billion in free cash flow, followed by a further $1.7 billion in 2005, according to estimates by S.G. Cowen. Nextel also boasts an untapped $1.2 billion credit line, and debt markets would likely cough up more funding, says Watts.
Another plus: Operating performance remains impressive. In this year's first quarter, Nextel added 474,000 subscribers -- about 15% of the overall industry's total gains in that period. As Saleh sees it, that growth indicates that Nextel is gaining market share. True, the figure came in below analysts' expectations, but Nextel still raised guidance for full-year subscriber additions by 100,000, to 1.9 million. Despite the vicious price-cutting that the industry is witnessing, Nextel's income jumped 184%, to $591 million, on revenues that were up 31% to $3.1 billion in the quarter.
Those upgraded subscriber-growth figures are probably achievable. For one thing, Nextel's push-to-talk feature, which allows users to connect instantly with other Nextel users at the click of a button, still has no rivals. Similar services from other carriers like Verizon Wireless continue to suffer delays of up to five seconds before calls can be patched through. On May 4, Nextel began offering the service internationally, and other new services are on the way domestically. In the next few weeks, Nextel plans to launch several new handsets featuring popular built-in cameras and sleek, small designs, says Saleh. And its prepaid service, a division called Boost Mobile, is ramping up. Aimed at young subscribers and ethnic groups, it added 132,000 customers in the first quarter, on top of 385,000 in all of 2003.
LESS EFFICIENT NETWORKS. For investors, there are risks, however. If the FCC were to put too high a price on the spectrum Nextel needs, its share price could take a hit, says Todd Rethemeier, an analyst with Sur Terre Research-Soleil, who has a sell rating on the stock. Also, Nextel's capital expenditures are creeping up at a faster pace than those of rivals, says Gorbatenko -- partly because Nextel's networks are simply less efficient. Analysts see that as an indication of the service provider's need to make more upgrades. But Nextel's Saleh argues that the upgrades don't necessarily have to be expensive, contending that "on our own, Nextel has ample spectrum to grow our business" for several years to come.
Most likely, almost any FCC decision will prompt legal challenges from industry rivals, says Harold Furchtgott-Roth, founder of consultancy Furchtgott-Roth Economic Enterprises in Washington and a former FCC commissioner. Still, an FCC decision would be an important first step in clearing up doubts about Nextel's future. That could lead to a short-term boost in the stock price -- and an opportunity for investors with a taste for risk.
Kharif writes about technology for Business Week Online in Portland, Ore.
Edited by Thane Peterson
http://www.businessweek.com/technology/content/may2004/tc20040517_5522_tc055.htm
KDDI Announces Subscribers to 3G Cellular Phones Exceed 14 Million
Tokyo, Japan, May 13, 2004 - (JCN Newswire) - The total number of subscribers for third generation cellular phones provided by KDDI (TSE: 9433) and Okinawa Cellular Telephone exceeded 14 million on May 1, 2004.
On April 1, 2002, KDDI began selling au cellular phones compatible with CDMA 1X, thereby enabling the seamless use of nationwide services that are exclusive to 3G cellular phones, such as "Movie Mail", "Photo Mail", and EZ Chaku Uta(TM). In November 2003, we also launched the CDMA 1X WIN service, which allows users to enjoy e-mail and EZweb services for a fixed monthly charge. As a result, we have gained a favorable reputation among a broader range of customers.
Sales are as follows:
April 1, 2002: KDDI launched 3G cellular phone service
June 23, 2002: Acquired over 1 million subscribers
Jan.16, 2003: Acquired over 5 million subscribers
Sept. 16, 2003: Acquired over 10 million subscribers
May 1, 2004: Acquired over 14 million subscribers
http://www.japancorp.net/Article.Asp?Art_ID=7304
KDDI's 'au' leads for 7th month
Thursday, May 13, 2004 at 05:41 JST
TOKYO — KDDI Corp's "au" service led those of other cell phone operators in net growth in the number of subscribers in April for the seventh straight month, scoring a net growth of 287,800, the Telecommunications Carriers Association said Wednesday.
KDDI's au service replaced the "i-mode" service provided by NTT DoCoMo Inc as Japan's No. 1 cell phone service in terms of net subscription increases for the first time in fiscal 2003 that ended March 31. (Kyodo News)
http://www.japantoday.com/e/?content=news&cat=4&id=298260
CDMA Remains World’s Fastest-Growing Wireless Technology
The CDMA Development Group (CDG) reported Tuesday (May 11) that CDMA added nearly 13.5 million subscribers in 1Q 2004, reaching 202 million users worldwide. In one year, from March 2003 to 2004, the CDMA subscriber base grew by a record 43 million users, or 31 percent, representing the highest growth for any leading cellular technology, and significantly higher than the 21percent gain for the whole industry. CDMA2000® further strengthened its leadership in 3G by adding 13 million users in the quarter to total 86.2 million, including 6.6 million CDMA2000 1xEV-DO users. Over 43 percent of the global CDMA subscriber base has access to CDMA2000 technologies.
"CDMA2000 operators reported yet another quarter of strong gains in net adds and revenue," Perry LaForge, executive director of the CDG, told TelecomWeb. "CDMA2000 delivers results across all regions and markets, both developing and mature. We expect that this trend will continue with the significant growth of CDMA2000 in key markets such as China, India and the Americas."
Asia Pacific is the largest region for CDMA with 84.4 million users. The base is expanding at 44 percent annually, driven by continued growth in China and phenomenal advancements in India. China has more than 20 million CDMA users and in India, where there is now widespread deployment of CDMA2000, the CDMA base grew by 745 percent in 2003 and reached 9.3 million users in March 2004.
Asia also remains the largest and most advanced market for CDMA2000, with 19 CDMA2000 networks and 52 million users in 12 countries. 62 percent of CDMA subscribers in the region use CDMA2000, and in Japan and Korea, over 80 percent of the CDMA base use CDMA2000. Demand for advanced CDMA2000 1xEV-DO services is growing rapidly with more than 2 million new subscribers added in the past quarter.
KDDI continues to lead in net adds and data services in Japan. In the past year, KDDI's subscriber base grew 21 percent to 17 million, of which 13.5 million are using CDMA2000. 81 percent of KDDI's subscribers use data, and the operator controls 48 percent market share for data services in the country.
In the Americas, CDMA carriers added 7.2 million new customers in the first quarter, bringing the total number to 114.2 million. CDMA has become the dominant technology in the region.
CDMA expanded its leadership, in North America reaching 81.4 million users with market share growing to 46 percent.
Latin America and the Caribbean have more than 33 million CDMA users in 20 countries.
Latin America has the largest number of CDMA2000 networks commercially deployed, with 26 CDMA2000 1X and two CDMA2000 1xEV-DO networks in 16 countries. VIVO, the largest operator in Latin America, controls 45 percent of the market in Brazil and continues to capture 54 percent of net adds in markets it competes in.
CDMA subscriber statistics and CDMA2000 deployment information are available on the CDG Web site at www.cdg.org.
http://www.telecomweb.com/news/1084298033.htm
China - Unicom eyes 10 mil CDMA 1X users by end-2004
infobites
Infobites
12 May 2004
China Unicom (China), mobile carrier, aims to triple its high-speed CDMA 1X data service subscribers to 10 mil by end-2004, up from around 3 mil users currently, boosted by a host of a new services. One new service will allow customers to locate themselves using a displayed map. Unicom now has over 100 mil mobile phone subscribers, divided into 75.7 mil GSM and 21.6 mil CDMA users. Its high-speed CDMA 1X customers have ARPU of around Yuan15/mo, compared to average ARPU of Yuan128.4/mo for all CDMA services in 2003. Unicom plans to launch dual-mode GSM/CDMA handsets by mid-2004. It has ordered 500k handsets from LG Electronics, Motorola and Samsung Electronics.
http://www.europemedia.net/NASApp/cs/ContentServer?pagename=marlin/home&siteid=30000000461&m...
Who are the other 6 Customers ? The below paragraph mentioned only 15 companies.
<<21 wireless device manufacturers have selected QUALCOMM's integrated chipsets and system software for their WCDMA (UMTS) deployments. This is the largest customer base in the industry to work with a single WCDMA (UMTS) wireless chipset provider. Leading global manufacturers, including new entrants BenQ Corporation, Mitsubishi Electric Corporation, Pantech & Curitel, and Vitelcom Mobile Technology, today joined the previously announced Hisense Group Co. Ltd., Huawei Technologies, Co. Ltd., LG Electronics, Inc., Novatel Wireless, Option NV, Samsung, Sanyo Electric, Sierra Wireless, Inc., Toshiba and ZTE Corporation in selecting QUALCOMM's MSM6200(TM) and/or MSM6250(TM) Mobile Station Modem(TM) (MSM(TM)) chipset solutions to support commercial WCDMA (UMTS) network deployments throughout China, Europe, Japan, South Korea, Taiwan and the United States.>>
Qualcomm Announces New 3G Chips
Date Posted: Today, 10:59 AM
Source: Qualcomm
Qualcomm today announced several new chips and chipsets for mobile phones and devices, supporting advanced 3G standards and multimedia capabilities:
MSM6280: Chipset for the WCDMA (UMTS) / HSDPA standard, supporting data rates up to 7.2 Mbps. Also supports traditional WCDMA, GSM, GPRS, and EDGE. Samples expected to ship in the second half of 2005.
MSM7500: First chipset in new "Convergence Platform" series targeted at advanced devices (beyond phones). Chipsets in the series support 6 megapixel cameras, video recording and playback at VGA resolution and 30 fps, TV connection, VGA displays, advanced 3D acceleration, application processor up to 1 GHz, Bluetooth, USB, and Wi-Fi. MSM7500 supports CDMA, CDMA EV-DO, and GSM/GPRS. Samples expected to ship in the 1st quarter of 2005.
MSM7200: Similar to MSM7500, but supports WCDMA (UMTS)/HSDPA and GSM/GPRS/EDGE. Samples expected to ship in the 4th quarter of 2005.
MSM7600: Similar to MSM7500, but supports all major standards, including CDMA, EV-DO, EV-DV, WCDMA, HSDPA, GSM, and EDGE. Samples expected to ship in 2006.
RTR6275: RF chip for previously-announced MSM6275 HSDPA chipset, that adds support for EDGE. Samples are expected to ship in the 2nd quarter of 2005.
http://www.phonescoop.com/news/item.php?n=857
Qualcomm Offers Chips to Allow 6-Megapixel Cameras
Thu May 13, 2004 10:10 AM ET
NEW YORK (Reuters) - Mobile phone technology provider Qualcomm Inc. (QCOM.O: Quote, Profile, Research) on Wednesday unveiled a new line of chips with ultra-high resolution camera features and said it was making inroads in advanced new markets.
In a volley of announcements coinciding with the company's spring Wall Street analyst briefing here, Qualcomm introduced the first of its "7000" series, all-in-one chips that offer up to 6-megapixel cameras and full-motion camcorder recording.
Six-million pixel image quality would make cameraphones based on Qualcomm chips competitive with the most advanced digital cameras being sold in consumer markets worldwide.
Qualcomm, supplier of the basic technology inside many of the mobile phones sold in U.S. and major Asian markets, said it was making progress winning over handset makers in so-called sideband-CDMA markets in Europe, Japan, China and elsewhere.
Wideband-CDMA is the emerging standard for third-generation wireless networks that is now becoming widely available in Europe, Japan and other countries. It transmits not just voice calls but video and hefty e-mail attachments to mobile phones.
The company said 21 W-CDMA wireless device makers have chosen Qualcomm's mobile chipsets and software, giving Qualcomm the broadest set of customers of any W-CDMA chipmaker, including major rival Texas Instruments Inc.
Qualcomm said it had added new W-CDMA handset makers including Taiwan's BenQ Corp. (2352.TW: Quote, Profile, Research) , Japan's Mitsubishi Electric Corp. (6503.T: Quote, Profile, Research) , and Vitelcom Mobile of Malaga, Spain, a privately held supplier to Spain and Latin America.
These customers join previously announced major handset makers in China, Korea, Japan and North America including brands like Samsung, LG, Sanyo and Huawei.
The company said also optimistic it can win new business in Japan after NTT DoCoMo, Japan's largest mobile service provider, adopts the global W-CDMA standard sometime in the middle of 2005.
In addition, Qualcomm said it had signed up Yahoo Inc.'s Yahoo Mobile unit to use Qualcomm's BREW software to create wireless services, including a BREW-version of Yahoo's popular Yahoo Messenger instant messaging communications program.
Shares of San Diego-based Qualcomm were off 9 cents, at $63.80, in early trading.
© Reuters 2004. All Rights Reserved.
http://asia.reuters.com/newsArticle.jhtml?type=technologyNews&storyID=5134082
Dr. Irwin Mark Jacobs to Open The NASDAQ Stock Market
NASDAQ-100 QUALCOMM Incorporated [QCOM] Chairman and CEO to Open The NASDAQ Stock Market
Tuesday May 11, 10:30 am ET
(MARKET WIRE)--May 11, 2004 --
What:
Dr. Irwin Mark Jacobs, Chairman of the Board and Chief Executive Officer of QUALCOMM Incorporated (NasdaqNM:QCOM - News) will preside over the NASDAQ Market Open.
Where:
NASDAQ MarketSite -- 4 Times Square -- 43rd & Broadway -- Broadcast Studio
When:
Wednesday, May 12, 2004 at 9:30 a.m. EST
Why:
The NASDAQ Stock Market proudly welcomes QUALCOMM Incorporated [QCOM] and its Chairman and CEO Dr. Irwin Mark Jacobs to the Market Open.
Fast Facts:
Founded: 1985
Headquarters: San Diego, California
NASDAQ Listed since: December 1991
Ticker Symbol: QCOM
Feed Information:
The market open ceremony is available from 9:20 a.m. to 9:35 a.m. on Galaxy 4R C/transponder 21. The downlink frequency is 4120 horizontal; audio: 6.2/6.8. The feed can also be found on Waterfront fiber 1623. If you have any questions, please contact the NASDAQ Traffic Department at (646) 441-5220.
About QUALCOMM Incorporated [QCOM]:
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2003 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Contact:
Contacts:
QUALCOMM Incorporated [QCOM]:
Julie McClure
619-890-3415
Christine Trimble
619-997-4235
NASDAQ MarketSite:
Traffic Department
646.441.5220
--------------------------------------------------------------------------------
Source: NASDAQ
http://biz.yahoo.com/iw/040511/067094.html
Alcatel: Third generation network well on course
DEVELOPMENT of Malaysia's 3G (third generation) trial network is progressing well and, hopefully, will be completed by mid next year, according to Alcatel Asia-Pacific executive vice-president Christian Reinaudo.
“Timing, however, is not an important issue here. Telekom Malaysia Bhd can take as much time as it wants,'' he said in Kuala Lumpur yesterday.
Alcatel, a French-based telecommunications network equipment maker, is one of several vendors supporting 3G trial services by Telekom in the Klang Valley. Alcatel's spot is Petaling Jaya.
Christian Reinaudo
Telekom and the vendors are not only providing the infrastructure for the high-speed broadband services but also working out the content and applications that would make the services commercially viable. “It is no use if Telekom can come up with the network fast but cannot attract enough subscribers,'' Reinaudo said.
He added that Malaysia was now Alcatel's South-East Asian region competence centre for mobile networks operations.
Reinaudo said Alcatel was confident of being able to position Malaysia as its top market in South-East Asia owing to the strong growth of local mobile communications market. “Malaysia's carrier equipment market is worth US$780mil this year, mainly due to strong demand for optics and mobile broadband services,'' he said.
He said while Internet penetration was estimated at 42% this year compared with 11.4% last year, mobile penetration had been projected to reach 60% in the coming years, from the current 43%.
Last year, Alcatel launched a 3G Reality Centre in Kuala Lumpur – one of five worldwide 2.5/3G end-to-end platforms – to help accelerate the adoption of 3G in South-East Asia, particularly Malaysia.
The company also announced it plan to invest about RM200mil over four years to develop Malaysia as its regional hub for its 3G/mobile business.
Reinaudo said the investment was mainly to provide support and expertise for 3G/mobile business, and to develop new mobile applications, particularly for 3G, with local partners. Alcatel has 10 partners actively working on the 3G project.
http://biz.thestar.com.my/news/story.asp?file=/2004/5/11/business/7953290&sec=business