MediaTek launches the MT6595, a true octa core SoC that supports 4G LTE

The Taiwanese semiconductor company MediaTek has been pitching itself rather aggressively in the market emerging as the best affordable chipsets for mobile solutions. MediaTek announced the MT6595 which will be the worlds first True Octa-Core 4G LTE SoC. MediaTeks new offering will be available to the Indian consumers commercially as we reach the end of this year. This premium chipset is expected to propel the chip maker to an entirely new level and also help in bringing the 4G technologies to lower end devices.

MediaTek has already got a quantum leap in terms after joining hands with Google to supply the hardware for the ultra affordable Android One devices. It has once again reached out to manufacturers and industry leaders so that these chips will unlock new industrial potential.

Dr.Finbarr General Manager sales of MediaTek said that ”MediaTek is focused on delivering a full range of 4G LTE platforms, and the MT 6595 is the first of many to arrive in India. Our 4G LTE solutions support all modes including TDD LTE, which is important for India because infrastructure providers in the country are currently focusing on the TDD LTE network”.

MediaTek has started a new facility in Bengaluru which will sync up with the one in Noida to boost the R&D capabilities. The 4G LTE is the next big thing in the Indian telecom scene with the Reliance Jio gearing up for the same.

Source: Telecom Talk

Teleco- 4G under incubation; near term favourable:Edelweiss

The optimist in us is justifiably enthused by the ensuing improvement in the sector’s fundamentals triggered by ebbing competitive intensity and improving realisations. However, investors continue to be jittery, perceiving the anticipated launch by Reliance Jio (RJIO) as disruptive. In our view, this apprehension is unfounded as absence of relevant ecosystem for 4G technology renders any big bang disruption untenable. In fact, we are confident that in the near to medium term, the sector will be buoyed by tailwinds riding better-than-expected realisations and higher volume surge (voice and data) rather than headwinds from either the regulator or competitors. Exponential data surge and waning promotions & offers will aid players improve cash flows and thereby pare debt. While we like both  Bharti Airtel  (Bharti) and  Idea Cellular  (Idea), we prefer the former due to its proportionately lower dependency on circles up for renewal (~30% revenue versus Idea’s 70%), thereby capping auction related out flow. Any Africa operations related corporate development will be further upside risk to our target price. We maintain our positive view on the sector with ‘BUY’ on Bharti and Idea.

RJIO: Potent, but distant threat 

Without doubt,RJIO will be a scale player given the technology investments further bolstered by balance sheet might and robust execution record of the parent company. However, we believe, it will gain scale gradually post launch (expected by August 2015). Even in a best case scenario RJIO is unlikely to make profits till FY19 (refer table 1). Also, more established players like Bharti and Idea are in no way resource constrained and are fighting fit to counter any unrealistic offerings.

Limited competition, price discipline to ring in benefits 

Post 2012 auctions, the competitive landscape has narrowed dramatically with only ~5 operators per circle versus ~11 earlier. This proved a boon for the industry, enabling operators regain their pricing mojo. Further, in order to help the sector stand on its feet the new government is likely to adopt a more accommodative stance. Moreover, we expect the industry to adopt a disciplined approach, unlike the earlier price hike regime wherein discounts and promotions had wreaked havoc. Thus, higher tariffs will boost cash flows and reduce net debt of companies. In case of Bharti and Idea we estimate cash flows of INR647bn and INR167bn, respectively, over FY15-20.

Outlook: Positives to play out first 

The sector is at a crossroad with tailwinds like waning competition, improved pricing power, data uptick and more accommodative policies, and headwind in the form of RJIO’s entry. Though investors are jittery about RJIO’s big bang launch, we believe this is unlikely. We firmly believe that sound operational performance will be the wind beneath stocks’ flight in the near term. We reiterate our positive stance on the sector and ‘BUY’ on Bharti and Idea with target prices of INR434 and INR180, respectively.

Source: Moneycontrol

Indian telecom operators need to invest in in-building coverage as 4G grows: Ericsson

Indian telecom operators will have to change their capex strategy and invest more in improving in-building coverage to better serve their customers in the 4G scenario, a top Ericsson official said.

"We see that all of our customers have LTE plans and traffic is expected to increase hundreds times. In that scenario, it would be hard to cater the needs just from the outside or macro network and they would need an underlying layer of small cells," Christian Hedelin, head of strategy for Business Unit Radio within Ericsson told ET.

In India, a new player like Reliance Jio Infocomm and No. 1 carrier Bharti Airtel are investing heavily for in-door coverage. Telcos are trying to provide better indoor coverage, which is still a challenge on the 2300 Mhz band, which is currently being used to deliver 4G services. Reliance Jio has recently placed a bulk order for small cells equipment with Israeli company Airspan to meet its requirement for low-powered, short-range towers to deploy 4G services.

Bharti Airtel, on the other hand, is also deploying small cells, pico cells and indoor Wi-Fi points, as a part of its heterogeneous network (HetNet) to better serve to its data customers. The telco has deployed a heterogeneous network in Gurgaon, Pune and Bangalore.

"Traditionally, investments for indoor solutions have been a smaller part of major capital expenditure of telcos. The investment first goes in population (macro) coverage, followed by capacity in the macro layer. Once the coverage is achieved, telcos do direct investment towards in-door solutions based on what consumers want," Hedelin said.

Ericsson has introduced its small cell radio dot system along with a multi band indoor picocell that aims to solve the challenges mobile operators face with in-building coverage.

The company expects to start the trials of it radio dot system small cell with its partner telcos in the coming months in India.

According to Hedelin, there would be an increased focus on in-buildingcinvestments in India, given the emergence of more traffic hungry applications, which couldn't be catered through the macro network. "A majority of traffic demand is from indoors-homes, enterprise, malls and subway," he explained.

The Indian market is seeing a surge in smartphone penetration, leading to increased traffic on telcos' networks. Hedelin said that growing number of smartphones will be the trigger for 4G LTE pick up in India. "Once we have $100 4G device in the market, we will see a positive uptake of 4G data services in the country."

The amount of time people spend on using internet is increasing drastically with video being the largest tariff driver in India. "We are focused on improving network performance which is now more about user experience of services offered by the operators along with the total cost of providing these services, since it is also a performance parameter," Hedelin said.

The executive reckons that the 4G LTE technology will bring more innovation in the market, which would lead to a reduction in cost to connect.

Source: ET

Smartphones, a tool for driving productivity: survey

Smartphone usage in the country is not only leading to proliferation of entertainment and social networking but also creating a buzz around things such as productivity and achieving more.

According to a global study done by research firm GfK and BlackBerry Ltd, Indian users perceived smartphones as enablers of productivity by saving time, enhancing communication and collaboration with colleagues, providing more flexibility and simplifying their lives.

It saves time
According to the study, 77 per cent of smartphone users in India find that their device saves time. Globally, one-third of business smartphone users said their devices save them more than 5 hours during an average working week. “Smartphones have made a major impact on the way we conduct business and communicate with friends and family, driving our ambitions to be productive in order to change the way we contribute to work, our communities and society,” said John Chen, Executive Chairman and CEO, BlackBerry.

Rather than simply ploughing through a to-do list, modern productivity means consciously creating more time to focus on the things that matter most. The study found that 67 per cent of business smartphone users globally indicated they are “always looking to improve their productivity” and 69 per cent are “constantly looking for new ways to get things done as efficiently as possible.”

Motivated
The study revealed BlackBerry users to be more motivated by achievement and personal rewards compared to users on competing smartphone platforms.

For example, BlackBerry users were 43 per cent more likely than other users to agree that one of their motivations to be productive is to make a mark in their company and society.

Data related to India further highlighted that BlackBerry end-users are more likely to agree that their smartphone reflects their status, helps them manage communications, is secure, helps them achieve more, is durable, gives them flexibility and simplifies their lives as against other smartphone users.

Source: HBL

No Skype calls within India from November 10

Over-the-top (OTT) telecom player Skype will stop the calling facility from its application on mobile and landline phones within India from November 10. "As of November 10, 2014, Skype will end support for calling within India meaning calls to mobiles and landlines from Skype within India will no longer be available," Skype's parent company Microsoft said in a statement on Monday.
Using a feature of Skype, a user can make video or voice calls using Internet service for which he/she will only be charged for Internet consumed for the service. Microsoft said, "Users in India can still make free Skype-to-Skype calls worldwide, international calls to mobiles and landlines and users outside the country can call mobiles and landlines in India." It added that Skype WiFi and SMSs are also available to users in India.

The development comes after the Union home ministry wrote to Department of Telecommunications (DoT) to block voice over Internet protocol offered by OTT companies because it conceals details of the caller, including his or her mobile number, which poses a security risk.

SECURITY RISK
Security agencies have raised alarm over the 'parallel telecom network' being offered by OTTs. Besides, location of OTT servers outside India poses further risk. DoT earlier had held talks with OTT companies after Telecom Regulatory Authority of India in August decided not to impose extra fees on these popular services as demanded by telecom companies. A top DoT official said any OTT operator can offer free messaging or even calls across any telecom network in India. This also makes it vulnerable and could pose a security risk. Skype's announcement comes within a week of Microsoft's mobile phone arm launching Lumia 730 smartphone in India which positions itself as phone fit for Skype calls and videos.

'BLOCK WE PHONE APP'
Intelligence Bureau (IB) has asked Department of Telecom (DoT) to block the We Phone application as it facilitates spoofing of caller id and is difficult to identify to locate or identify actual caller.
- IB had written to DoT around a month back to block We phone application, which is freely available on Android Play Store and Apple's application store as it allows user to spoof call, an official source said;

- We Phone, which offers call service similar to Skype, allows user to make free calls using mobile Internet service to other subscriber having same application;
- The application, after verifying the user's phone number at the time of installation, gives an option to disable the number to hide it

- IB has told DoT that in free version of this application, caller id on receiver screen starts with +1777 whereas in paid version, any number can be set to display as caller id;
- IB has written that the server of We Phone is located outside India and any call made from We Phone is routed through the server located abroad and therefore it is difficult to identify and locate the actual calling number or user.

Source: Business Today

4G effect: Call-drops, roaming woes may end soon

Fed up with call drops and loss of data connectivity while on roaming?

The next-generation 4G services may soon put an end to your woes as companies gear up to offer the latest technology to enable smooth connections.

In fact, Mukesh Ambani-led Reliance Jio Infocomm’s proposed high-speed Internet service using 4G technology has crossed a major technical hurdle during its testing phase that began a few weeks ago — it will ensure that customers get the same data speed when they move from one state to another while roaming on its network.

Consumers have long complained of connectivity issues while on roaming and telecom operators have been grappling with the problem.

“When a customer is roaming, the critical issue is continuous connectivity. Operators have struggled, when the subscriber moves from one circle to another with problems such as call drops, low connectivity or even no connectivity. With our vast network agreements, it has become possible and tests have shown 99.95% success,” a senior Reliance Jio executive in the network team explained.

Reliance Jio spokesperson did not respond to HT’s mail till the time of going to press.

The RIL group firm has entered into agreements with a number of firms for leasing towers across India including Indus Towers (113,000 ), GTL Infra (27,800), Ascend Telecom (4,500), Tower Vision (8,400), ATC India (11,000), Viom Networks (42,000), Bharti Infratel (36,000) and Reliance Communications (45,000). It has signed deals with a number of small tower companies as well.

In addition, Reliance Jio also has agreements with RCom and Bharti to share infrastructure created by the groups.

While Airtel already offers 4G services in Kolkata, Bangalore, Ludhiana and Chandigarh and Aircel in Tamil Nadu and Jammu & Kashmir, Vodafone and RCom also plan to launch such services next year.

Source: Hindustan Times

Towering expectations

After a phase of subdued growth, the fortunes of telecom tower infrastructure companies could see a revival with the entry of fourth generation (4G) mobile technology players, specially Reliance Jio Infocomm Limited (RJio).

Mukesh Ambani, chairman of Reliance Industries and promoter of Rjio, had in June told shareholders that RJio would roll out 4G services, for both voice and data, in phases in 2015.
Since then, the telco has entered into pacts with several tower infrastructure companies, the latest being with GTL Infrastructure Limited, which has on September 18 signed a Master Services Agreement (MSA) for tower infrastructure sharing with RJio.

A Credit Suisse report last month stated that Reliance Jio Infocomm was on track to launch its pan-India 4G data and voice services by March 2015.

Apart from GTL Infra, RJio has signed pacts with Ascend Telecom for more than 4,500 towers, with Tower Vision for 8,400 towers, with ATC India for 11,000 towers and with Viom Networks for 42,000 towers. It also has an agreements with Anil Ambani-led Reliance Communications for sharing the latter’s optic fibre infrastructure and over 45,000 towers. Additionally, RJio already has an agreement in place with Indus Towers (a joint venture between Bharti Infratel, Vodafone India and Idea Cellular along with another with Bharti Airtel) to utilise its submarine cable.

A JP Morgan report estimates that RJio will roll out at least 150,000 4G tenancies over the next four to five years for a substantial coverage. Of the 1.5 lakh 4G tenancies, at least 50,000 tenancies (one-third) will likely be from Bharti Infratel (standalone) and Indus, which collectively have over 40% total tower share in the country.

“With the entry of an additional pan-India player like RJio, projected market share gains for the big three telecom operators (Airtel, Vodafone, Idea) may need some adjustment, especially on data, but this emerging scenario is an encouraging one for tower companies such as Bharti Infratel and Indus”, the report said.

The report estimates RJio to be paying a monthly rent of R34,000 per tower to the tower infrastructure companies from fiscal 2014 to fiscal 2020.

At present, over 75% of telecom towers in India is controlled by mobile operators, while others like GTL Limited and GTL infrastructure, which do not provide for mobile services, have suffered.
GTL Infra, together with Chennai Network Infrastructure Limited (CNIL), a subsidiary of GTL Infra’s parent company Global Group Enterprise, currently holds a combined portfolio of over 27, 800 towers.

Global Group’s CEO Charudatta Naik said in a recent BSE statement that the launch of 4G network and the rise in the consumption of data services will be the major growth driver for tower companies.
Global Group, an infrastructure services company, has two companies listed on Indian stock exchanges, GTL Limited and GTL Infrastructure. Both companies had to go in for corporate debt restructuring (CDR) over the heavy loans taken to purchase Aircel’s tower assets for about $1billion in 2011. The companies are currently pinning their hopes on the roll out of 4G services and the surge in data usage to improve their financial positioning.

The future of the telecom tower companies also looks optimistic with the expansion of existing second generation (2G) networks in the 900 MHz band, and the roll-out of third generation (3G) services in the 2100 MHz band as well as broadband wireless access (BWA) services in the 1800 MHz and 2300 MHz bands.

A research report by JM Financial, released in February, forecast a 2% CAGR in tower-sites and 4-5% CAGR in total tenancies till FY17.

During his speech to the shareholders in June, Mukesh Ambani called Reliance Jio a “R70,000-crore-initiative,” indicating that RIL is investing more in its new telecom business than what was estimated.
“From the outset, Reliance Jio will cover all states in India, with 5,000 towns and cities and 215,000 villages,: Ambani said.

Telecom Infrastructure companies, especially independent companies, are keen to see the plans fructify, as their own future will be depending on them.

Source: FE