Sometime Nokia Siemens just has so much news and so much in the press that I feel like I'm writing post after post pointing out what they're doing. Today I'm taking a different approach and bundling everything into one larger post.
First some news with Guangdong Telecom in China -
Nokia Siemens Networks wins convergent charging deal with Guangdong Telecom in China
Guangdong Telecom, a China Telecom subsidiary, has selected Nokia Siemens Networks charge@once solution for its upcoming convergent charging needs. The deal will enable Guangdong Telecom to pave way for the flexible charging of mobile services it intends to launch in the future. With the deal the operator also takes a step forward in fixed-mobile convergence.
The charge@once convergent online charging solution for voice and data will enable Guangdong Telecom to provide prepaid and postpaid online charging for its future mobile and data subscribers. The solution will also allow the operator greater flexibility in tariff policy and marketing strategies, and shorten time-to-market for new services.
“We are pleased to announce our first convergent charging contract with Guangdong Telecom and thus with China Telecom,” said Joseph O’Konek, Head of Business Support Systems Business Line, Operations and Business Software, Nokia Siemens Networks. “Our industry-leading online charging solutions are helping operators around the world to progress to new business models, and we look forward to helping Guangdong Telecom do the same.”
Nokia Siemens Networks will integrate the solution into Guangdong Telecom’s network and support every stage of the solution lifecycle while improving operational efficiency. The system is expected to be ready for a pre-commercial pilot in November this year. Nokia Siemens Networks has a vast knowledge base and a successful track record of integration capability and successfully delivers hundreds of systems integration projects worldwide every year.
Nokia Siemens Networks creates OSS/BSS multi-vendor software solutions for charging, service management and network management to improve operators’ business performance. The company is a significant player in the OSS/BSS market with more than 600 network management customers and more than 280 service management installations. Nokia Siemens Networks is the number 1 prepaid and charging supplier serving more than 400 million online customers. More than 200 operators use our leading-edge charging and care solutions.
About Guangdong Telecom
Guangdong Telecom is the wholly owned subsidiary of China Telecom in Guangdong province of China. Guangdong Telecom has 60,000 employees and 21 prefecture-level branches and 79 county-level telecom offices with business outlets covering the whole province. The main business and services of Guangdong Telecom are operation of diversified national and overseas fixed network and facilities (including wireless local loop); voice, data, graphics and multi-media communications and information services; commutations and information-related system integration, technology development, technology services, information consultancy work.
www.gdtel.com.cn
About Nokia Siemens Networks
Nokia Siemens Networks is a leading global enabler of communications services. The company provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure solutions and addresses the growing demand for services with 20,000 service professionals worldwide. Nokia Siemens Networks is one of the largest telecommunications infrastructure companies with operations in 150 countries. The company is headquartered in Espoo, Finland.
www.nokiasiemensnetworks.com
More news in China with the GSM for the rail system on the Hefei-Nanjing Line
Nokia Siemens Networks enhances railway communication for the Hefei-Nanjing Line with GSM-R system
The Hefei-Nanjing passenger-dedicated line, is an important part of China’s newly built high-speed passenger service network, and will be China’s first modern passenger-service line for commercial use.
The 166 kilometer-long Hefei-Nanjing Line, connecting the capitals of Anhui and Jiangsu provinces in the Yangtze River Delta, is an integral part of the “Four Longitudinal and Four Horizontal” Passenger Service Network. The line, to be put into operation in early 2008, will become China’s first newly built passenger-dedicated line for commercial use at speeds of 200 km/h. With cutting-edge technologies, strong network implementing capability and rich network operation and maintenance experience, Nokia Siemens Networks stood out among the competition and won the contract, integrating both GSM-R and the world’s leading tunnel technology.
“We are honored to provide GSM-R system for China’s first railway passenger-dedicated line at 200km/h. It marks another milestone of Nokia Siemens Networks in GSM-R following our contract in this April for the Wuhan-Guangzhou Line—the longest high-speed railway in the world. China’s railway construction is experiencing an unprecedented leap forward, and Nokia Siemens Networks will provide the most advanced technology, the most reliable products and the best services as we have done in the past. We hope to make Hefei-Nanjing Line a model of GSM-R communication system for passenger-dedicated railway lines in China”, said Mr. Zhang Zhiqiang, head of the Greater China Region of Nokia Siemens Networks.
Nokia Siemens Networks is one of the inventors of GSM-R technology, with Siemens researching and creating the GSM-R standard starting in the early 1990s.The world’s first three GSM-R trial networks and the first commercial network were all supplied by Nokia Siemens Networks.
In China, Nokia Siemens Networks is the leader of GSM-R communication system. So far, Nokia Siemens Networks has undertaken four of the total six GSM-R passenger-dedicated line projects in China that are under construction or have been put into operation. Notably, the Beijing-Tianjin Railway, supporting Beijing’s big sports games in 2008, is the first high-speed railway with the maximum speed of 350 km/h. In addition, Nokia Siemens Networks is the exclusive provider of Chinese GSM-R intelligent network and HLRi system. The GSM-R core network provided by Nokia Siemens Networks will serve the main railway lines and bear over 50% of the wireless communication traffic on Chinese railways.
To date, Nokia Siemens Networks has deployed GSM-R networks in 17 countries serving 50,000 km of railways, making it the world’s Number One GSM-R vendor in both number of commercial networks and length of operational GSM-R lines.
About Nokia Siemens Networks
Nokia Siemens Networks is a leading global enabler of communications services. The company provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure solutions and addresses the growing demand for services with 20,000 service professionals worldwide. Nokia Siemens Networks is one of the largest telecommunications infrastructure companies with operations in 150 countries. The company is headquartered in Espoo, Finland.
www.nokiasiemensnetworks.com
Beyond China, here's news about something new with Deutsche Telekom in Germany. This announcement is actually quite a large story.
Nokia Siemens Networks and Deutsche Telekom sign strategic partnership for managed services and next-generation network modernization
* Nokia Siemens Networks assumes control of Vivento Technical Services (VTS) from Deutsche Telekom; VTS’ 2,000 employees to form NSN subsidiary in Germany
* The companies sign 5-year, nearly €300 million managed services contract
* Nokia Siemens Networks becomes a preferred services partner of Deutsche Telekom
* Additional contracts signed for next-generation equipment and services valued up to €150m over the next five years
Nokia Siemens Networks and Deutsche Telekom today signed a wide-ranging partnership agreement that places Nokia Siemens Networks as a strategic partner to Deutsche Telekom. Under the terms of the agreement, Nokia Siemens Networks will assume control of Vivento Technical Services (VTS) – a division of Vivento, Deutsche Telekom's personnel service provider – and has signed a managed services contract valued at nearly €300 million over the next five years. In addition, Deutsche Telekom has also selected Nokia Siemens Networks to deliver a range of capital expenditure projects for several T Mobile affiliates in Europe, including next-generation IN (Intelligent Network), valued at up to €150 million.
The companies have agreed to make Nokia Siemens Networks a preferred services partner for Deutsche Telekom for upcoming outsourcing and managed services projects. With this agreement, Nokia Siemens Networks becomes a major supplier for managed services in Europe further increasing its strong international position in managed services. The asset deal is expected to close at the beginning of next year and includes the transfer of VTS assets to Nokia Siemens Networks, as well as additional support from Deutsche Telekom to ensure a successful transition of VTS to Nokia Siemens Networks.
“This agreement is proof that Nokia Siemens Networks is the right partner for Deutsche Telekom in the industry’s trend to outsource services,” said Rajeev Suri, head of Services at Nokia Siemens Networks. “The integration of VTS into our portfolio supports our strategy of transforming into a services and solutions company and helps us become one of the leaders in the European managed services market. By combining the Managed Services contract and the next-generation equipment agreements with ongoing partnership and support from Deutsche Telekom, we see this as a compelling opportunity for Nokia Siemens Networks.”
With the addition of VTS, Nokia Siemens Networks has the increased ability to address the multi-vendor maintenance, installation and commissioning services market within Deutsche Telekom and with other customers across Germany. Under the agreement, Nokia Siemens Networks will deliver a range of managed services to Deutsche Telekom, including a single point of contact for managed maintenance and systems integration, as well as providing build, operate, care and transfer services for major Deutsche Telekom roll-outs in the next few years. The integration of VTS will complement the capabilities of Nokia Siemens Networks in managed services and raise its share in this growing market in Germany by allowing it to increasingly offer installation, commissioning and maintenance services to operators other than Deutsche Telekom.
“We are delighted that by securing this deal with Nokia Siemens Networks, we are partnering with one of the leading providers of global communications services, enabling the employees of VTS to go after new opportunities and customers in the German market,” said Dr. Martin Walter, Chairman of the Supervisory Board of Vivento Technical Services.
Deutsche Telekom will support the continued business development of VTS by committing to use its service delivery capabilities, by placing additional service contracts with the company.
In a very fragmented market consisting of thousands of sub-contractors, cost and resource co-ordination are key factors. VTS offers a promising entry point into the German infrastructure services market which, according to Nokia Siemens Networks internal estimates, is expected to grow annually by around 6%, reaching €1 billion by 2010. With VTS, Nokia Siemens Networks will improve its time-to-market and open up growth opportunities by increasing efficiency and building market share in Germany’s managed services market.
“With more than 160 managed services and outsourcing contracts we have a strong track record of integrating employees from customers and delivering a successful business and we will do so with VTS”, said Suri. “The scope of the deals we are announcing today strengthens Nokia Siemens Networks’ position as a preferred supplier to Deutsche Telekom and positions us well for Deutsche Telekom’s upcoming deployment projects across Europe,” said Suri.
“As part of the strategy announced by Deutsche Telekom in 2004, close to 2000 VTS employees will transfer in an asset deal for VTS, which will become a wholy-owned affiliate of Nokia Siemens Networks. Deutsche Telekom will support the continued business development of VTS by committing to use its service delivery capabilities and also by placing additional service contracts with the company”, said Dr. Martin Walter.
About Deutsche Telekom AG
Deutsche Telekom AG is one of the world’s leading integrated telecommunications companies with more than 111 million mobile customers, about 38 million fixed-network lines and 13 million broadband lines as of June 30, 2007. Under the Group's umbrella "T" brand, around 240,000 employees worldwide provide modern telecommunications products and services from a single source. Fixed-network telephony, broadband Internet, mobile communications and information and communication technology (ICT) solutions are offered under the brands T-Home, T-Mobile and T-Systems.
In the 2006 financial year the group generated revenues of EUR 61.3 billion – almost half outside Germany. Active in nearly 50 countries worldwide, Deutsche Telekom is an international group.
Further information is available on the Internet at: www.telekom.com
About Nokia Siemens Networks
Nokia Siemens Networks is a leading global enabler of communications services. The company provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure solutions and addresses the growing demand for services with 20,000 service professionals worldwide. Nokia Siemens Networks is one of the largest telecommunications infrastructure companies with operations in 150 countries. The company is headquartered in Espoo, Finland.
www.nokiasiemensnetworks.com
And lastly, some news fromw Sweden on IMS.
Com hem launches first commercial IMS in Sweden
Com Hem is the first Swedish telecom operator to deploy a IP Multimedia Subsystem (IMS) platform for commercial use. With IMS, Com Hem now has the ability to rapidly introduce new functions and subscriber services, as well as enter into new cooperation with other telecom operators.
IP Multimedia Subsystem is a new network architecture that enables new telephone services and richer communications applications based on the Internet Protocol (IP) and Session Initiation Protocol (SIP). Com Hem’s IMS solution, including the IMS Core and SURPASS hiQ 8000 VoIP application server, has been provided and integrated by Nokia Siemens Networks.
Using IMS, Com hem can optimize operations of its existing infrastructure to meet its rapid subscriber growth, while reducing operations expenses. IMS also allows Com Hem to develop and quickly introduce new telephony services and applications.
Com Hem is using IMS initially to provide Voice over IP (VoIP) service, which can also be connected to additional networks thanks to the expanded cooperation with other operators made possible by IMS.
“IMS is a key technology to further develop VoIP-services and next generation IP-telephony. Becoming the first operator in Sweden to use IMS in a full commercial deployment is strategically important since it further expands our competitive position and allows us to offer the best telephony service,” says Martin Kull CTO at Com Hem.
“This project demonstrates our strong cooperation with Com Hem and signals our mutual leadership as innovators in network technology and services. It also provides clear proof of the commercial maturity and importance of IMS as a strategic choice for operators offering richer communications services,” says Jan Lindgren Head of Nokia Siemens Networks in Sweden.
About Com Hem
Com Hem is Sweden’s leading supplier of triple play-services – TV, Broadband and Telephony. Around 40 per cent of all Swedish homes, 1.75 million are connected to Com Hem’s network and gain access to the market’s largest supply of TV channels and cost effective, high-quality and complete broadband and telephone service. Com Hem also provides landlords with interactive services for efficient information management, property maintenance and operations. The company was founded in 1983, has approximately 700 employees, its main office in Stockholm, Sweden and is owned by The Carlyle Group and Providence Equity. For more information please visit: www.comhem.se
About Nokia Siemens Networks
Nokia Siemens Networks is a leading global enabler of communications services. The company provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure solutions and addresses the growing demand for services with 20,000 service professionals worldwide. Nokia Siemens Networks is one of the largest telecommunications infrastructure companies with operations in 150 countries. The company is headquartered in Espoo, Finland.
www.nokiasiemensnetworks.com
Technorati Tags: Nokia Siemens, Guangdong Telecom, China, GSM-R, Hefei-Nanjin Line, Deutsche Telekom, Germany, Com Hem, Sweden, IMS, IP Multimedia Subsystem, unified communications
วันพฤหัสบดีที่ 25 ตุลาคม พ.ศ. 2550
Telmex: Delay in NP regulations holding up IPTV launch - Mexico
Published: Tuesday, October 23, 2007 16:24 (GMT -0400)
Mexican fixed line telecoms giant Telmex's anticipated IPTV launch in Mexico is being held up by delays in the publication of technical specifications for number portability (NP) by telecoms regulator Cofetel, Telmex's CFO Adolfo Cerezo told an investors conference call on the company's third quarter results.
According to Cerezo, the company has invested US$60mn in implementing the necessary infrastructure to enable NP.
Allowing NP is one of the three requirements established under the 2006 convergence agreement published by the telecommunications ministry SCT authorizing Telmex to offer TV services.
The other two requirements are providing interconnection and interoperability with cable operators entering the telecoms market.
According to the executive, Telmex has met the requirements for interconnection and interoperability.
Cofetel published regulations in June for NP and the technical specifications and implementation calendar were due to be published in September but as yet have not materialized.
Cerezo said he guessed the specifications would be published in November. Cofetel has said it expects number portability to be in place in April or May next year.
In the meantime, Cerezo said Telmex was concerned that the regulations are unclear on the policy for paying the debts of subscribers porting from one operator to another.
By Patrick Nixon
Mexican fixed line telecoms giant Telmex's anticipated IPTV launch in Mexico is being held up by delays in the publication of technical specifications for number portability (NP) by telecoms regulator Cofetel, Telmex's CFO Adolfo Cerezo told an investors conference call on the company's third quarter results.
According to Cerezo, the company has invested US$60mn in implementing the necessary infrastructure to enable NP.
Allowing NP is one of the three requirements established under the 2006 convergence agreement published by the telecommunications ministry SCT authorizing Telmex to offer TV services.
The other two requirements are providing interconnection and interoperability with cable operators entering the telecoms market.
According to the executive, Telmex has met the requirements for interconnection and interoperability.
Cofetel published regulations in June for NP and the technical specifications and implementation calendar were due to be published in September but as yet have not materialized.
Cerezo said he guessed the specifications would be published in November. Cofetel has said it expects number portability to be in place in April or May next year.
In the meantime, Cerezo said Telmex was concerned that the regulations are unclear on the policy for paying the debts of subscribers porting from one operator to another.
By Patrick Nixon
วันพฤหัสบดีที่ 11 ตุลาคม พ.ศ. 2550
Network Engines Announces Acquisition of Alliance Systems
Combination Is Expected to Expand Breadth of Markets, Diversify Customer Base And Be Accretive to Earnings
CANTON, Mass.--(BUSINESS WIRE)--Network Engines, Inc. (NASDAQ: NENG), a leading provider of storage and security server appliance products and services, today announced it has entered into a definitive agreement to acquire privately-held Alliance Systems, Inc., a leading provider of server appliances and computer infrastructure supporting telecommunications and enterprise communications solutions. Valued at approximately $40 million, the transaction will be funded through a combination of approximately $35 million in cash, which includes the payment of certain of Alliance’s debt obligations, and approximately 2.7 million shares of Network Engines’ common stock.
Based in Plano, Texas, Alliance Systems provides server appliances and enhanced support services for wireless, VoIP, contact center and enterprise communications solutions. Similar to Network Engines, the majority of Alliance Systems’ revenue comes from services to OEM customers. In its fiscal year ended December 31, 2006, Alliance Systems had more than 250 active customers, only two of which contributed 10% or more of revenue, one at 15% and the other at 10%. For the 2006 fiscal year, revenue was approximately $102 million and operating income was approximately $3.2 million. For the nine months ended September 30, 2007, Alliance Systems had unaudited revenue and operating income of approximately $79 million and $2.0 million, respectively. Its largest customer contributed only 10% of its revenue for the nine-month period.
Through the acquisition of Alliance Systems, Network Engines enters new vertical markets and anticipates leveraging a broader range of capabilities to address market needs for converged solutions. Network Engines also expects to realize economies of scale based on similarities between the two companies’ business models, their compatible approach to development of system solutions, and their complementary focus on OEM customers. Furthermore, it is expected this transaction will diversify Network Engines’ customer base and accelerate its progress toward achieving its financial objectives.
“We are pleased to partner with an established, profitable company that is highly complementary to Network Engines’ business,” said Greg Shortell, President and Chief Executive Officer of Network Engines. “Alliance Systems’ strong position in telecommunications complements Network Engines’ expertise in storage and security. These markets are experiencing a convergence of technologies, which creates new applications. We believe that Network Engines is well positioned to meet the industry’s needs in this exciting growth opportunity, and expect the acquisition will allow us to better serve customers, while creating significant value for our shareholders.”
Alliance Systems is expected to add approximately $100 million to Network Engines’ annual revenue and significantly diversify its customer base. In addition, the transaction is expected to be immediately accretive to earnings on a non-GAAP basis, when excluding stock compensation and the effects of acquisition-related charges including amortization of intangible assets. The potential future impact of the transaction on Network Engines’ earnings on a GAAP basis cannot be measured until the conclusion of the company’s analysis to determine the fair value of any acquired intangible assets that would be amortized over the life of such assets.
Customers of the combined company can benefit from value-added offerings such as Network Engines’ appliance management system, NEWS, and Alliance Systems’ on-site support capability, which offers service, parts and logistics in the Americas, EMEA and Asia. With logistics locations in 15 U.S. cities, the U.K., the Netherlands, South Africa, Germany and the Philippines, Alliance Systems will also expand Network Engines’ global services and logistics organization with very little overlap of existing operations.
“Joining forces with Network Engines will allow both companies to apply existing capabilities in new markets and provide customers with expanded product offerings,” said Jonathan Shapiro, Chief Executive Officer of Alliance Systems. “I am confident this acquisition will allow us to build a stronger combined company and better serve customers.”
The combined company will initially operate under the Network Engines name with Alliance Systems branded as a subsidiary. The company will have cash of $5 million to $7 million upon closing of the transaction with a new available credit facility of $15 million.
The acquisition has been unanimously approved by the Board of Directors of Network Engines and also has been approved by the principal shareholders of Alliance Systems. Although subject to customary closing conditions, the transaction is expected to close within one week of the definitive agreement announced today. The transaction does not require approval of Network Engines’ shareholders.
Needham & Company, LLC. represented Network Engines in this transaction, while Cantor Fitzgerald & Co. served as financial advisor to Alliance Systems.
Conference Call Details
In conjunction with this announcement, Network Engines management will conduct a conference call at 10:00 a.m. ET today. The conference call will be available live via the Internet by accessing Network Engines' web site at www.networkengines.com. Please go to the web site at least fifteen minutes prior to the call to register, download and install any necessary audio software.
To listen to the conference call via phone, please dial 913-312-1272 and reference "Network Engines." For those who cannot access the live broadcast, a replay will be available by dialling 719-457-0820 or 888-203-1112 and entering “9965444” from two hours after the end of the call until 11:59 p.m. ET on October 17, 2007. The replay will also be available at the Network Engines web site.
About Network Engines
Network Engines appliances ease deployment and enhance the manageability and security of mission-critical software applications. Our heritage of providing product and service technologies tailored to support the entire lifecycle of our customers' appliances has made us the appliance partner of choice for software market leaders.
Founded in 1997, Network Engines is headquartered in Canton, Massachusetts, and trades on the NASDAQ exchange under the symbol NENG. For more information about the company's products and services, visit www.networkengines.com.
Safe Harbor for Forward-Looking Statements
Statements in this press release regarding the transaction between Network Engines and Alliance Systems, the expected timetable for completing the transaction, benefits and synergies of the transaction, projected cash balances, the timing of accretion and profitability, and any other statements about Network Engines' management's future expectations, beliefs, goals, plans or prospects, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including those factors contained in the Company's most recent Annual Report on Form 10-K for the year ended September 30, 2006 and the most recent Form 10-Q for the quarter ended June 30, 2007 under the section "Risk Factors" as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. Forward-looking statements include statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. The Company assumes no obligations to update the information included in this press release.
Network Engines and the Network Engines logo are trademarks of Network Engines, Inc. All other trademarks are the property of their respective holders.
CANTON, Mass.--(BUSINESS WIRE)--Network Engines, Inc. (NASDAQ: NENG), a leading provider of storage and security server appliance products and services, today announced it has entered into a definitive agreement to acquire privately-held Alliance Systems, Inc., a leading provider of server appliances and computer infrastructure supporting telecommunications and enterprise communications solutions. Valued at approximately $40 million, the transaction will be funded through a combination of approximately $35 million in cash, which includes the payment of certain of Alliance’s debt obligations, and approximately 2.7 million shares of Network Engines’ common stock.
Based in Plano, Texas, Alliance Systems provides server appliances and enhanced support services for wireless, VoIP, contact center and enterprise communications solutions. Similar to Network Engines, the majority of Alliance Systems’ revenue comes from services to OEM customers. In its fiscal year ended December 31, 2006, Alliance Systems had more than 250 active customers, only two of which contributed 10% or more of revenue, one at 15% and the other at 10%. For the 2006 fiscal year, revenue was approximately $102 million and operating income was approximately $3.2 million. For the nine months ended September 30, 2007, Alliance Systems had unaudited revenue and operating income of approximately $79 million and $2.0 million, respectively. Its largest customer contributed only 10% of its revenue for the nine-month period.
Through the acquisition of Alliance Systems, Network Engines enters new vertical markets and anticipates leveraging a broader range of capabilities to address market needs for converged solutions. Network Engines also expects to realize economies of scale based on similarities between the two companies’ business models, their compatible approach to development of system solutions, and their complementary focus on OEM customers. Furthermore, it is expected this transaction will diversify Network Engines’ customer base and accelerate its progress toward achieving its financial objectives.
“We are pleased to partner with an established, profitable company that is highly complementary to Network Engines’ business,” said Greg Shortell, President and Chief Executive Officer of Network Engines. “Alliance Systems’ strong position in telecommunications complements Network Engines’ expertise in storage and security. These markets are experiencing a convergence of technologies, which creates new applications. We believe that Network Engines is well positioned to meet the industry’s needs in this exciting growth opportunity, and expect the acquisition will allow us to better serve customers, while creating significant value for our shareholders.”
Alliance Systems is expected to add approximately $100 million to Network Engines’ annual revenue and significantly diversify its customer base. In addition, the transaction is expected to be immediately accretive to earnings on a non-GAAP basis, when excluding stock compensation and the effects of acquisition-related charges including amortization of intangible assets. The potential future impact of the transaction on Network Engines’ earnings on a GAAP basis cannot be measured until the conclusion of the company’s analysis to determine the fair value of any acquired intangible assets that would be amortized over the life of such assets.
Customers of the combined company can benefit from value-added offerings such as Network Engines’ appliance management system, NEWS, and Alliance Systems’ on-site support capability, which offers service, parts and logistics in the Americas, EMEA and Asia. With logistics locations in 15 U.S. cities, the U.K., the Netherlands, South Africa, Germany and the Philippines, Alliance Systems will also expand Network Engines’ global services and logistics organization with very little overlap of existing operations.
“Joining forces with Network Engines will allow both companies to apply existing capabilities in new markets and provide customers with expanded product offerings,” said Jonathan Shapiro, Chief Executive Officer of Alliance Systems. “I am confident this acquisition will allow us to build a stronger combined company and better serve customers.”
The combined company will initially operate under the Network Engines name with Alliance Systems branded as a subsidiary. The company will have cash of $5 million to $7 million upon closing of the transaction with a new available credit facility of $15 million.
The acquisition has been unanimously approved by the Board of Directors of Network Engines and also has been approved by the principal shareholders of Alliance Systems. Although subject to customary closing conditions, the transaction is expected to close within one week of the definitive agreement announced today. The transaction does not require approval of Network Engines’ shareholders.
Needham & Company, LLC. represented Network Engines in this transaction, while Cantor Fitzgerald & Co. served as financial advisor to Alliance Systems.
Conference Call Details
In conjunction with this announcement, Network Engines management will conduct a conference call at 10:00 a.m. ET today. The conference call will be available live via the Internet by accessing Network Engines' web site at www.networkengines.com. Please go to the web site at least fifteen minutes prior to the call to register, download and install any necessary audio software.
To listen to the conference call via phone, please dial 913-312-1272 and reference "Network Engines." For those who cannot access the live broadcast, a replay will be available by dialling 719-457-0820 or 888-203-1112 and entering “9965444” from two hours after the end of the call until 11:59 p.m. ET on October 17, 2007. The replay will also be available at the Network Engines web site.
About Network Engines
Network Engines appliances ease deployment and enhance the manageability and security of mission-critical software applications. Our heritage of providing product and service technologies tailored to support the entire lifecycle of our customers' appliances has made us the appliance partner of choice for software market leaders.
Founded in 1997, Network Engines is headquartered in Canton, Massachusetts, and trades on the NASDAQ exchange under the symbol NENG. For more information about the company's products and services, visit www.networkengines.com.
Safe Harbor for Forward-Looking Statements
Statements in this press release regarding the transaction between Network Engines and Alliance Systems, the expected timetable for completing the transaction, benefits and synergies of the transaction, projected cash balances, the timing of accretion and profitability, and any other statements about Network Engines' management's future expectations, beliefs, goals, plans or prospects, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including those factors contained in the Company's most recent Annual Report on Form 10-K for the year ended September 30, 2006 and the most recent Form 10-Q for the quarter ended June 30, 2007 under the section "Risk Factors" as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. Forward-looking statements include statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. The Company assumes no obligations to update the information included in this press release.
Network Engines and the Network Engines logo are trademarks of Network Engines, Inc. All other trademarks are the property of their respective holders.
BT Launches Unified Communications and Collaboration Solutions for Global Enterprises
Communications leader to make the promise of convergence a reality for
customers
ORLANDO, Fla., Oct. 10 /PRNewswire-FirstCall/ -- Gartner
Symposium/ITxpo -- Leveraging its global networked IT expertise and deep
consulting experience, BT has launched a comprehensive global portfolio of
unified communications and collaboration (UCC) solutions and services as
part of the company's drive toward delivering the full benefits of its 21st
Century Network (21CN) capabilities to customers.
BT's approach to the UCC market is designed to help enterprise
customers manage their journeys to a converged environment where
collaboration tools can be used to increase efficiency, productivity and
competitive position. BT's UCC services enable organizations'
communications infrastructure, mobility, desktop and applications to work
together so that users can take part in almost any form of communication to
anyone at any time, by securely linking voice, mobile and data services
with desktop.
BT works with partners such as Cisco and Microsoft to help enterprise
customers improve communication and collaboration. By providing a
comprehensive portfolio of capabilities and services BT can help customers:
-- Increase flexibility to bring together dispersed project teams of
employees, as well as business partners and customers
-- Get more work done, better and faster, by further extending their reach
into and beyond the enterprise through instantaneous and consolidated
access to information and resources
-- Devote their time and energy to solving business problems, with BT as
the single interface across the entire technology solution
-- Reduce the upfront technology investments and ongoing costs with BT's
suite of IP applications that minimizes the need for infrastructure
investments and eliminates recurrent third party usage charges
BT will offer a single interface for messaging, conferencing,
collaboration and telephony, streamlining and managing the complexity of
communications and collaboration.
Typically companies would have bought their IT and telecommunications
products and services in three distinct groups and from three different
service providers:
-- IT and desktop applications from an IT services or systems integrator
-- Fixed network infrastructure and telephony from a telecommunications or
network service provider
-- Mobile / cellular from a mobile carrier
BT has the ability to bring all these areas together into a single
networked IT services integration program and build a migration strategy
for IP and IT infrastructure.
"To help them fulfill the promise of convergence, enterprises can
benefit from an experienced partner that brings a network-centric
perspective and years of global networking experience to the challenge,"
said Michael Boustridge, President, BT USA & Canada. "BT can unify the
necessary elements and assist in charting a roadmap toward unified
communications that makes the most sense for each enterprise. With BT's
scalable solutions, customers can start implementing UCC on a small scale
and then increase the integration into their IP and IT environments on a
global scale."
BT's UCC offerings address customers' needs from assessment, strategic
planning, design and network performance engineering services through
implementation and management and optimization services, across its entire
range of communications services (voice, messaging, audio, video,
Telepresence and web conferencing, etc.) including IT governance and
regulatory compliance and a full range of security services with archiving
and logging.
About BT
BT is one of the world's leading providers of communications solutions
and services operating in 170 countries. Its principal activities include
networked IT services; local, national and international telecommunications
services; higher-value broadband and internet products and services and
converged fixed/mobile products and services. BT consists principally of
four lines of business: BT Global Services, Openreach, BT Retail and BT
Wholesale.
In the year ended 31 March 2007, BT Group plc's revenue was 20,223
million pounds Sterling with profit before taxation of 2,484 million
pounds.
British Telecommunications plc (BT) is a wholly-owned subsidiary of BT
Group and encompasses virtually all businesses and assets of the BT Group.
BT Group plc is listed on stock exchanges in London and New York.
For more information, visit http://www.bt.com/aboutbt.
About Gartner Symposium/ITxpo
Gartner Symposium/ITxpo is the IT industry's largest and most strategic
conference, providing business leaders with a look at the future of IT. For
more than 10,000 IT professionals from the world's leading enterprises,
Gartner's annual Symposium/ITxpo events are key components of their annual
planning efforts. Attendees rely on Gartner Symposium/ITxpo to gain insight
into how their organizations can use technology to address business
challenges and improve operational efficiency. For more information, please
visit http://www.gartner.com/symposium/us.
customers
ORLANDO, Fla., Oct. 10 /PRNewswire-FirstCall/ -- Gartner
Symposium/ITxpo -- Leveraging its global networked IT expertise and deep
consulting experience, BT has launched a comprehensive global portfolio of
unified communications and collaboration (UCC) solutions and services as
part of the company's drive toward delivering the full benefits of its 21st
Century Network (21CN) capabilities to customers.
BT's approach to the UCC market is designed to help enterprise
customers manage their journeys to a converged environment where
collaboration tools can be used to increase efficiency, productivity and
competitive position. BT's UCC services enable organizations'
communications infrastructure, mobility, desktop and applications to work
together so that users can take part in almost any form of communication to
anyone at any time, by securely linking voice, mobile and data services
with desktop.
BT works with partners such as Cisco and Microsoft to help enterprise
customers improve communication and collaboration. By providing a
comprehensive portfolio of capabilities and services BT can help customers:
-- Increase flexibility to bring together dispersed project teams of
employees, as well as business partners and customers
-- Get more work done, better and faster, by further extending their reach
into and beyond the enterprise through instantaneous and consolidated
access to information and resources
-- Devote their time and energy to solving business problems, with BT as
the single interface across the entire technology solution
-- Reduce the upfront technology investments and ongoing costs with BT's
suite of IP applications that minimizes the need for infrastructure
investments and eliminates recurrent third party usage charges
BT will offer a single interface for messaging, conferencing,
collaboration and telephony, streamlining and managing the complexity of
communications and collaboration.
Typically companies would have bought their IT and telecommunications
products and services in three distinct groups and from three different
service providers:
-- IT and desktop applications from an IT services or systems integrator
-- Fixed network infrastructure and telephony from a telecommunications or
network service provider
-- Mobile / cellular from a mobile carrier
BT has the ability to bring all these areas together into a single
networked IT services integration program and build a migration strategy
for IP and IT infrastructure.
"To help them fulfill the promise of convergence, enterprises can
benefit from an experienced partner that brings a network-centric
perspective and years of global networking experience to the challenge,"
said Michael Boustridge, President, BT USA & Canada. "BT can unify the
necessary elements and assist in charting a roadmap toward unified
communications that makes the most sense for each enterprise. With BT's
scalable solutions, customers can start implementing UCC on a small scale
and then increase the integration into their IP and IT environments on a
global scale."
BT's UCC offerings address customers' needs from assessment, strategic
planning, design and network performance engineering services through
implementation and management and optimization services, across its entire
range of communications services (voice, messaging, audio, video,
Telepresence and web conferencing, etc.) including IT governance and
regulatory compliance and a full range of security services with archiving
and logging.
About BT
BT is one of the world's leading providers of communications solutions
and services operating in 170 countries. Its principal activities include
networked IT services; local, national and international telecommunications
services; higher-value broadband and internet products and services and
converged fixed/mobile products and services. BT consists principally of
four lines of business: BT Global Services, Openreach, BT Retail and BT
Wholesale.
In the year ended 31 March 2007, BT Group plc's revenue was 20,223
million pounds Sterling with profit before taxation of 2,484 million
pounds.
British Telecommunications plc (BT) is a wholly-owned subsidiary of BT
Group and encompasses virtually all businesses and assets of the BT Group.
BT Group plc is listed on stock exchanges in London and New York.
For more information, visit http://www.bt.com/aboutbt.
About Gartner Symposium/ITxpo
Gartner Symposium/ITxpo is the IT industry's largest and most strategic
conference, providing business leaders with a look at the future of IT. For
more than 10,000 IT professionals from the world's leading enterprises,
Gartner's annual Symposium/ITxpo events are key components of their annual
planning efforts. Attendees rely on Gartner Symposium/ITxpo to gain insight
into how their organizations can use technology to address business
challenges and improve operational efficiency. For more information, please
visit http://www.gartner.com/symposium/us.
Mo. Gov Announces Internet Task Force
Oct. 10, 2007, 1:43PM
COLUMBIA, Mo. — A 16-member task force will explore ways to increase high-speed Internet access in rural Missouri, Gov. Matt Blunt announced Wednesday.
Speaking at an annual telecommunications conference at the University of Missouri-Columbia, Blunt signed an executive order creating the task force, which will be led by Lt. Gov. Peter Kinder.
A recent study by the Missouri Public Service Commission found that about 1.2 million state residents, or one in five households, don't have either cable modems or digital subscriber lines.
"Many communities lack access to the infrastructure necessary for high-speed Internet," Blunt said. "In today's high-speed economy, Missourians shouldn't be denied access because they live in a rural area."
The panel will also include small business owners, the director of the state economic development agency and representatives from the Missouri Farm Bureau and state Chamber of Commerce.
Blunt said the group will issue its report by Feb. 1, 2008, giving state lawmakers time to pursue regulatory charges during the 2008 session if necessary.
COLUMBIA, Mo. — A 16-member task force will explore ways to increase high-speed Internet access in rural Missouri, Gov. Matt Blunt announced Wednesday.
Speaking at an annual telecommunications conference at the University of Missouri-Columbia, Blunt signed an executive order creating the task force, which will be led by Lt. Gov. Peter Kinder.
A recent study by the Missouri Public Service Commission found that about 1.2 million state residents, or one in five households, don't have either cable modems or digital subscriber lines.
"Many communities lack access to the infrastructure necessary for high-speed Internet," Blunt said. "In today's high-speed economy, Missourians shouldn't be denied access because they live in a rural area."
The panel will also include small business owners, the director of the state economic development agency and representatives from the Missouri Farm Bureau and state Chamber of Commerce.
Blunt said the group will issue its report by Feb. 1, 2008, giving state lawmakers time to pursue regulatory charges during the 2008 session if necessary.
DPC leases network to parent AIS
The 1,800-megahertz cellular operator Digital Phone (DPC) has adjusted its role by leasing its network to parent Advanced Info Service (AIS).
Published on October 11, 2007
AIS chief executive Vikrom Sripataks said DPC wanted to avoid high operating costs and fierce cellular-market competition. But it will continue to provide cellular service to its existing 50,000 subscribers, all of whom are post-paid phone users.
He said each time subscribers cancelled the service, DPC would return their phone numbers to its concession owner, CAT Telecom.
"CAT does not oppose the move, since it still gains a revenue share from DPC," Vikrom said.
One of DPC's main expenses is the annual access charge it has had to pay to TOT for connecting different networks via TOT's facilities.
AIS, with more than 23 million subscribers, is in need of additional cellular frequency to ease the congestion of its existing 900MHz cellular frequency.
In a separate matter, Vikrom said AIS and TOT were in talks on the state agency's plan to take over broadband-Internet service provider Advanced Datanetwork Communication (ADC), in which AIS owns 51 per cent and TOT 49 per cent.
Initially, AIS proposed acquiring all of TOT's shares in ADC before TOT made a counterproposal that it wanted to take over ADC.
Vikrom said ADC's total asset value was about Bt300 million and that AIS was willing to sell shares to TOT if the state agency offered a reasonable price.
AIS owns Super Broadband Network Co, which holds a licence from the National Telecommunications Commission to offer broadband service. It provides wholesale broadband-network leasing services.
"We can have Super Broadband offer both wholesale and retail broadband-Internet service if need be," Vikrom said.
Super Broadband, which is capitalised at Bt1 million, has planned to spend Bt3.827 billion throughout the 25-year licence period. It will raise Bt450 million in capital in the first year, when it will also borrow Bt690 million to run the business.
The company expects cash flow of Bt2.687 billion in the first year.
Usanee Mongkolporn
The Nation
Published on October 11, 2007
AIS chief executive Vikrom Sripataks said DPC wanted to avoid high operating costs and fierce cellular-market competition. But it will continue to provide cellular service to its existing 50,000 subscribers, all of whom are post-paid phone users.
He said each time subscribers cancelled the service, DPC would return their phone numbers to its concession owner, CAT Telecom.
"CAT does not oppose the move, since it still gains a revenue share from DPC," Vikrom said.
One of DPC's main expenses is the annual access charge it has had to pay to TOT for connecting different networks via TOT's facilities.
AIS, with more than 23 million subscribers, is in need of additional cellular frequency to ease the congestion of its existing 900MHz cellular frequency.
In a separate matter, Vikrom said AIS and TOT were in talks on the state agency's plan to take over broadband-Internet service provider Advanced Datanetwork Communication (ADC), in which AIS owns 51 per cent and TOT 49 per cent.
Initially, AIS proposed acquiring all of TOT's shares in ADC before TOT made a counterproposal that it wanted to take over ADC.
Vikrom said ADC's total asset value was about Bt300 million and that AIS was willing to sell shares to TOT if the state agency offered a reasonable price.
AIS owns Super Broadband Network Co, which holds a licence from the National Telecommunications Commission to offer broadband service. It provides wholesale broadband-network leasing services.
"We can have Super Broadband offer both wholesale and retail broadband-Internet service if need be," Vikrom said.
Super Broadband, which is capitalised at Bt1 million, has planned to spend Bt3.827 billion throughout the 25-year licence period. It will raise Bt450 million in capital in the first year, when it will also borrow Bt690 million to run the business.
The company expects cash flow of Bt2.687 billion in the first year.
Usanee Mongkolporn
The Nation
Mobile Internet Service To Come This November
Thursday, October 11, 2007
In November 2007, mobile Internet service will be available for trial use in Hanoi and HCM City, allowing subscribers of the Vietnam Post and Telecommunications Group (VNPT) to access broadband Internet any place covered by WiMax.
This technology also promises a boom of telecom subscribers as many more services are integrated into mobile phones, such as low-cost VoIP (voice over Internet Protocol) phone service, online TV, etc.
Deputy Prime Minister Nguyen Thien Nhan has signed a decision permitting VNPT to experimentally test Mobile Wimax (mobile Internet) service in Hanoi and HCM City after the group recorded success in its test in the northern mountainous province of Lao Cai with Fix WiMax (fixed wireless Internet) service.
VNPT will begin to test mobile Internet service in Hanoi and HCM City this November with three base stations and 30-50 access points.
Le Quang Dao, leader of the WiMax testing group of the Vietnam Data and Communications Company (VDC), said that the transmission speed may reach 4-5 Mbps within a diameter of 10km.
Dao said that this technology even enables transmission speeds up to 7 Mbps within a diameter of 50km.
Compared to the current broadband or wireless services, this is a “dream” for Internet users.
Equipment serving Mobile Wimax service is still expensive now since the service is in the period of testing. However, providers hope that when this service becomes popular, the production cost of this equipment will fall to $100 to $200/equipment.
Though the charges for this service are not fixed, the provider said that the charges would not be higher than those for normal Internet services.
“I think it is not expensive if 10-15 families share equipment at that price. When this service is popular, the service provider may help subscribers to purchase necessary equipment or even give it free,” Dao said.
Three world leading telecom equipment producers – Motorola, Nokia and Samsung – have cooperated to develop Wimax network for the American provider Sprint Nextel. Intel, Nokia and Siemens have also joined hands in integrating Wimax. This shows that leading producers have focused on manufacturing Wimax-related equipment, bringing more choices for users.
Initial success
The first phase of the Wimax testing project was completed in Lao Cai city and the second phase is taking place at Ta Van hamlet, also in Lao Cai.
The first phase is considered to have been a success. It commenced on October 27, 2006 in Lao Cai city in 19 sites: 6 schools, 3 public sites, 2 health stations, 5 administrative agencies, 2 small enterprises and 1 farmer family. Those sites were provided with computers and VoIP telephones. Internet access at these points was free of charge for all.
For the first time in his life, farmer Vuong Trung Thin in Lao Cai used Internet and low-cost VoIP telephone services. Thin said that the Internet connection is very good while call quality is wonderful.
In the second phase, the Wimax technology is being carried out in a valley called Ta Van, which is 9km from Sa Pa town, Lao Cai.
Around 700 people who are mainly H’mong and Day ethnic minority people are living in this valley, with the average income of around US$50 per month, mainly coming from tourist services.
It is very difficult to install optical cables leading to Ta Van valley owing to its isolated topography. The valley currently has only two fixed phone lines.
To help local residents and tourists, organisers have decided to carry out the second phase of Wimax testing project in this valley. Accordingly, ten sites in the valley, including a school, a health station, a guest house and some families will be connected to the Internet, using Wimax technology.
Based on the test results in Lao Cai, Dao said that Wimax could become popular in Vietnam in 2008.
The government has allowed four firms to provide Wimax service, VNPT, FPT, Viettel and VTC.
Tien Phong
In November 2007, mobile Internet service will be available for trial use in Hanoi and HCM City, allowing subscribers of the Vietnam Post and Telecommunications Group (VNPT) to access broadband Internet any place covered by WiMax.
This technology also promises a boom of telecom subscribers as many more services are integrated into mobile phones, such as low-cost VoIP (voice over Internet Protocol) phone service, online TV, etc.
Deputy Prime Minister Nguyen Thien Nhan has signed a decision permitting VNPT to experimentally test Mobile Wimax (mobile Internet) service in Hanoi and HCM City after the group recorded success in its test in the northern mountainous province of Lao Cai with Fix WiMax (fixed wireless Internet) service.
VNPT will begin to test mobile Internet service in Hanoi and HCM City this November with three base stations and 30-50 access points.
Le Quang Dao, leader of the WiMax testing group of the Vietnam Data and Communications Company (VDC), said that the transmission speed may reach 4-5 Mbps within a diameter of 10km.
Dao said that this technology even enables transmission speeds up to 7 Mbps within a diameter of 50km.
Compared to the current broadband or wireless services, this is a “dream” for Internet users.
Equipment serving Mobile Wimax service is still expensive now since the service is in the period of testing. However, providers hope that when this service becomes popular, the production cost of this equipment will fall to $100 to $200/equipment.
Though the charges for this service are not fixed, the provider said that the charges would not be higher than those for normal Internet services.
“I think it is not expensive if 10-15 families share equipment at that price. When this service is popular, the service provider may help subscribers to purchase necessary equipment or even give it free,” Dao said.
Three world leading telecom equipment producers – Motorola, Nokia and Samsung – have cooperated to develop Wimax network for the American provider Sprint Nextel. Intel, Nokia and Siemens have also joined hands in integrating Wimax. This shows that leading producers have focused on manufacturing Wimax-related equipment, bringing more choices for users.
Initial success
The first phase of the Wimax testing project was completed in Lao Cai city and the second phase is taking place at Ta Van hamlet, also in Lao Cai.
The first phase is considered to have been a success. It commenced on October 27, 2006 in Lao Cai city in 19 sites: 6 schools, 3 public sites, 2 health stations, 5 administrative agencies, 2 small enterprises and 1 farmer family. Those sites were provided with computers and VoIP telephones. Internet access at these points was free of charge for all.
For the first time in his life, farmer Vuong Trung Thin in Lao Cai used Internet and low-cost VoIP telephone services. Thin said that the Internet connection is very good while call quality is wonderful.
In the second phase, the Wimax technology is being carried out in a valley called Ta Van, which is 9km from Sa Pa town, Lao Cai.
Around 700 people who are mainly H’mong and Day ethnic minority people are living in this valley, with the average income of around US$50 per month, mainly coming from tourist services.
It is very difficult to install optical cables leading to Ta Van valley owing to its isolated topography. The valley currently has only two fixed phone lines.
To help local residents and tourists, organisers have decided to carry out the second phase of Wimax testing project in this valley. Accordingly, ten sites in the valley, including a school, a health station, a guest house and some families will be connected to the Internet, using Wimax technology.
Based on the test results in Lao Cai, Dao said that Wimax could become popular in Vietnam in 2008.
The government has allowed four firms to provide Wimax service, VNPT, FPT, Viettel and VTC.
Tien Phong
Thailand fiber optics expansion for internet use
Thursday, October 11th, 2007
By Thailand Telecommunications Forum, Pratana Srichannon (Web Editor)
Headquarter TOT Plc.
TODAY, the announcement made from the NetDialogue company for expanding the fiber optics of southeastern asia pacific project has declared the achievement of the agreement between Thai, Laos and Vietnam in expanding the interconnection network of its fiber optics of existing TOT and CAT in Laos country with the LAOS railway government at 2:00PM (GMT+7.00) section in expanding its capabilities of development on its speed, traffic and QoS of internet use from their interconnections networks.
The expansion project of the interconnection network is incorporate with the existing TOT and CAT Thailand leading fixed network services to provide the internet access. The spokeman of the NetDialogue said it would be good enough if the interconnection will be able to develop its QoS services on the services available among the operators agreement to have on its interconnection network, the existing of the interconnection network includes the network from Singtel, Malaysia, Vietnam, and Laos, this is enough of the traffics are provided by each operators including interconnection to the Japan telecommunications interconnection network providers.
More information and resources will be provided in the expansion project later this year.
By Thailand Telecommunications Forum, Pratana Srichannon (Web Editor)
Headquarter TOT Plc.
TODAY, the announcement made from the NetDialogue company for expanding the fiber optics of southeastern asia pacific project has declared the achievement of the agreement between Thai, Laos and Vietnam in expanding the interconnection network of its fiber optics of existing TOT and CAT in Laos country with the LAOS railway government at 2:00PM (GMT+7.00) section in expanding its capabilities of development on its speed, traffic and QoS of internet use from their interconnections networks.
The expansion project of the interconnection network is incorporate with the existing TOT and CAT Thailand leading fixed network services to provide the internet access. The spokeman of the NetDialogue said it would be good enough if the interconnection will be able to develop its QoS services on the services available among the operators agreement to have on its interconnection network, the existing of the interconnection network includes the network from Singtel, Malaysia, Vietnam, and Laos, this is enough of the traffics are provided by each operators including interconnection to the Japan telecommunications interconnection network providers.
More information and resources will be provided in the expansion project later this year.
Expanding Pedestals
http://telefrieden.blogspot.com/2007/10/expanding-pedestals.html
Telephone and cable companies have expanded their service offerings into a triple- or quadruple play of their core service (telephony or video) plus Internet access, wireless and the other companies' core offering. To deliver this package of service the companies often have to expand bandwidth and install additional equipment at or near consumers' homes.
These companies used to install a small pedestal for the electronics and line splice needed to provide service. The right to install such equipment derived from the rights of way granted by property owners or municipal ordinanaces that convery such rights. Of course these companies qualified for free of charge rights of way based on their "public utility" characteristics. Additionally federal, state and municipal regulations existed to safeguard the public.
Telephone and cable companies have qualified for deregulation particularly based on the determination that they provide information and other non-telecommunications services. Yet these companies continue to use "legacy" rights of ways, based on their prior regulated status.
Now these companies are expanding the size and footprint of the pedestals they install on private property.
My cable company attempted to install a small refrigerator-sized device on my property. These device would use electric power surely to provide services other than the core service for which the right of way was granted.
Query: can companies providing largely unregulated information services exploit rights of way granted under the pretext of a public interest need for basic telecommunications and video services? Regardless of the actual legality of doing so telephone and cable companies have expanded the size and footprint of their rights of way use and pedestal installation without having to compensate land owners.
If companies enjoy the benefits of an information services safe harbor from regulation shouldn't they lose free rights of way access? bear in mind these are the very companies that loudly claim "confiscation" when government regulates them.
Telephone and cable companies have expanded their service offerings into a triple- or quadruple play of their core service (telephony or video) plus Internet access, wireless and the other companies' core offering. To deliver this package of service the companies often have to expand bandwidth and install additional equipment at or near consumers' homes.
These companies used to install a small pedestal for the electronics and line splice needed to provide service. The right to install such equipment derived from the rights of way granted by property owners or municipal ordinanaces that convery such rights. Of course these companies qualified for free of charge rights of way based on their "public utility" characteristics. Additionally federal, state and municipal regulations existed to safeguard the public.
Telephone and cable companies have qualified for deregulation particularly based on the determination that they provide information and other non-telecommunications services. Yet these companies continue to use "legacy" rights of ways, based on their prior regulated status.
Now these companies are expanding the size and footprint of the pedestals they install on private property.
My cable company attempted to install a small refrigerator-sized device on my property. These device would use electric power surely to provide services other than the core service for which the right of way was granted.
Query: can companies providing largely unregulated information services exploit rights of way granted under the pretext of a public interest need for basic telecommunications and video services? Regardless of the actual legality of doing so telephone and cable companies have expanded the size and footprint of their rights of way use and pedestal installation without having to compensate land owners.
If companies enjoy the benefits of an information services safe harbor from regulation shouldn't they lose free rights of way access? bear in mind these are the very companies that loudly claim "confiscation" when government regulates them.
AIS to miss profit target, plans fixed-wireless services
General | Thailand
http://www.telecompaper.com/news/article.aspx?id=187557&nr=922&type=&yr=
Published: Wednesday 10 October 2007 | 12:16 PMCET
Print | Comment | Mail
Thai operator Advanced Info Service (AIS) is likely to miss its profit target this year, for the second consecutive year, due to the mobile price war in the second quarter and high operating costs, the Bangkok Post writes citing president Wichian Mektrakarn. AIS' revenue target, however, will be maintained. Wichian further said the company is ready to move into fixed WiMAX services, as part of its strategy to become a total telecommunications services provider, after two difficult years. AIS plans to overhaul its distribution channels to expand its reach in rural markets and will also update its outlets to cater for new mobile applications expected next year. The new WiMAX services will be operated by subsidiary Super Broadband Network, which holds a fixed-wireless network licence, and will allow the company to offer VoIP and IPTV services. AIS will also rent a fibre-optic network from electricity company Egat for the wireless broadband service. To provide content and applications for the broadband services, AIS will hire media firms. AIS has restructured its business into several divisions: Advanced Datanetwork Communications for the retail fixed business, Superbroadband Network for the wholesale fixed-wireless services, mobile and 3G services under AIS and AWN, and solutions under AIN Globalcom and M-Pay.
http://www.telecompaper.com/news/article.aspx?id=187557&nr=922&type=&yr=
Published: Wednesday 10 October 2007 | 12:16 PMCET
Print | Comment | Mail
Thai operator Advanced Info Service (AIS) is likely to miss its profit target this year, for the second consecutive year, due to the mobile price war in the second quarter and high operating costs, the Bangkok Post writes citing president Wichian Mektrakarn. AIS' revenue target, however, will be maintained. Wichian further said the company is ready to move into fixed WiMAX services, as part of its strategy to become a total telecommunications services provider, after two difficult years. AIS plans to overhaul its distribution channels to expand its reach in rural markets and will also update its outlets to cater for new mobile applications expected next year. The new WiMAX services will be operated by subsidiary Super Broadband Network, which holds a fixed-wireless network licence, and will allow the company to offer VoIP and IPTV services. AIS will also rent a fibre-optic network from electricity company Egat for the wireless broadband service. To provide content and applications for the broadband services, AIS will hire media firms. AIS has restructured its business into several divisions: Advanced Datanetwork Communications for the retail fixed business, Superbroadband Network for the wholesale fixed-wireless services, mobile and 3G services under AIS and AWN, and solutions under AIN Globalcom and M-Pay.
วันพุธที่ 10 ตุลาคม พ.ศ. 2550
CLEC CEOs Call Out the FCC
Brian Solomon, TMCnet Web Editor
The Federal Communications Commission came under attack from three CLEC CEOs during a panel session at the Comptel convention this week in Dallas. McLeodUSA president and CEO Royce Holland, XO Chairman and CEO Carl Grivner, and Hypercube president and CEO Ron Beaumont criticized the commission for its ineffectiveness, its lack of an efficient process for resolving disputes, and for allowing politics and partisanship to get in the way of enforcing the Telecommunications Act of 1996.
The vocal calls for a non-partisan FCC (News - Alert) coincide with the FCC’s consideration of ILECs’ requests for access charge forbearance. Granting this and other forbearance petitions would allow incumbents AT&T,Verizon ( News - Alert) and Qwest to stop selling some parts of their networks to competitors on the grounds that there is enough competition for consumers to be sufficiently protected from price increases.
“To say I am thoroughly disgusted is as nice as I can be,” Beaumont said. “I think the whole system is broken.”
In its battle against the FCC, the CLEC industry has garnered support from both sides of Congress, but the three execs remain skeptical of the regulatory process as a whole.
“What’s always lacking at the FCC is a dispute resolution process,” Holland said. “It’s a paper tiger. Carriers won’t pay their bills for interconnection, they won’t follow the rules. What is badly needed is a dispute resolution process that is based on arbitration, by industry experts, and not by the courts, where the judges who aren’t industry experts can be overwhelmed by lawyers. And then there needs to be strict enforcement, with fines and forfeiture.”
“It’s very behind-the-scenes until the very last minute,” added Grivner.
The Federal Communications Commission came under attack from three CLEC CEOs during a panel session at the Comptel convention this week in Dallas. McLeodUSA president and CEO Royce Holland, XO Chairman and CEO Carl Grivner, and Hypercube president and CEO Ron Beaumont criticized the commission for its ineffectiveness, its lack of an efficient process for resolving disputes, and for allowing politics and partisanship to get in the way of enforcing the Telecommunications Act of 1996.
The vocal calls for a non-partisan FCC (News - Alert) coincide with the FCC’s consideration of ILECs’ requests for access charge forbearance. Granting this and other forbearance petitions would allow incumbents AT&T,Verizon ( News - Alert) and Qwest to stop selling some parts of their networks to competitors on the grounds that there is enough competition for consumers to be sufficiently protected from price increases.
“To say I am thoroughly disgusted is as nice as I can be,” Beaumont said. “I think the whole system is broken.”
In its battle against the FCC, the CLEC industry has garnered support from both sides of Congress, but the three execs remain skeptical of the regulatory process as a whole.
“What’s always lacking at the FCC is a dispute resolution process,” Holland said. “It’s a paper tiger. Carriers won’t pay their bills for interconnection, they won’t follow the rules. What is badly needed is a dispute resolution process that is based on arbitration, by industry experts, and not by the courts, where the judges who aren’t industry experts can be overwhelmed by lawyers. And then there needs to be strict enforcement, with fines and forfeiture.”
“It’s very behind-the-scenes until the very last minute,” added Grivner.
Jerry Jones Takes Over NFL Network Committee
(Broadcasting & Cable) _ The National Football League put Dallas Cowboys owner Jerry Jones http://www.broadcastingcable.com/article/CA6390357.html in charge of the committee overseeing NFL Network http://www.broadcastingcable.com/article/CA6485933.html, which is still locked in a battle to grow its cable footprint.
Jones takes up the push for increased distribution for the network, which is in fewer than 45 million homes even after keeping a late-season package of games that could have sold for upward of $400 million on the open market.
"Today, there are more options than ever before for consumers in terms of choosing a Click for the lowest price on dmnobieblanktelevision');" onmouseout="setTimeout('hideLayer()',500);" class="hotlink2">television provider," Jones said in a statement. "Satellite companies like DirecTV and Dish Network and telecommunications companies like Verizon [Communications] and AT&T offer NFL Network on broad packages without extra costs to consumers. Those fans whose Microsoft AE ACCESS 2007 COMPLETE PACKAGE
VioSoftware-$112.01
RoyalDiscount-$129.94
DirectDeals-$112.00
');" onmouseout="setTimeout('hideLayer()',500);" class="hotlink2">access to NFL Network is still being blocked by their cable provider will have both the opportunity and the incentive to switch providers if cable continues to deny customers the programming they want."
Jones replaces New England Patriots owner Bob Kraft, who remains on the committee along with Pat Bowlen (Denver Broncos), Mark Richardson (Carolina Panthers) and Stan Kroenke http://www.broadcastingcable.com/article/CA476553.html (St. Louis Rams).
Copyright © 2007 Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
Jajah and eBay in VoIP Access Showdown
Internet voice service provider Jajah on Thursday said that web auctioneer eBay blocked the use of the startup's embedded voice links on its auction site, a move Jajah said raises concerns about anti-competitive behavior.
Jajah said eBay removed the listings of sellers who used Jajah’s technology, which enables potential buyers to connect with sellers through a click-to-call button embedded in their ad.
eBay sent emails to its sellers in the U.S. and Italy instructing them that Jajah’s technology, called Buttons, violated eBay’s link policy.
eBay’s policy seeks to protect its site from unauthorized or insecure links that could harm its business, but Jajah charges that eBay’s ownership of Skype, a VoIP firm, makes the auction giant’s argument specious.
“The fact that eBay acquired Skype for billions of dollars showed that they thought that VoIP would be a value-add for its community,” said Roman Scharf, co-founder of Mountain View, California-based Jajah. “Now that we are offering VoIP to the eBay community, eBay finds it to be a problem.”
According to Mr. Scharf, eBay, which acquired Skype in October 2005 for $2.5 billion, is pursuing the no-Buttons policy in the U.S. and Italy but not in other markets such as Germany and the U.K.
San Jose, California-based eBay said Jajah’s Buttons violates its links policy in every country in which eBay does business, and that it will continue to remove listings that include Jajah’s Buttons.
“We don’t allow Skype buttons in our listing pages either,” said Catherine England, an eBay spokeswoman.
“There are Skype links in specific areas and we have started testing Skype buttons but anytime a link directs users off of our site, it creates opportunities for fraudsters,” Ms. England said. “The policy is about safety for our members.”
Jajah’s Buttons, introduced on Monday, allow sellers for instance to place widgets in blogs or emails and have potential buyers make an inexpensive calls to sellers without the seller giving out his or her phone number.
“eBay’s policy makes reference to insecure or political content and the like, and our Buttons are nothing like that,” Mr. Scharf said. “We don’t take the user to a rival or fraudulent site or any such thing. Using Buttons just means that the user’s phone rings.”
Mr. Scharf said he is willing to offer eBay a commercial olive branch – a piece of the action.
“Every single Jajah call means money in the pocket of our partners,” he said. “eBay has its choice. It can simply tolerate Jajah or support Jajah but either way it will mean revenue for them.”
With VoIP application providers increasingly embedding voice communications in emails, blogs and web sites, it seemed inevitable that some Internet business would eventually move to block non-sanctioned VoIP services.
But the fact that the web business is eBay, which owns Skype, the best known VoIP provider in the world, brings up issues of open markets and competition that could draw regulatory attention.
VoIP sits on a precarious boundary between the Internet and telecommunications. On the one hand, the Internet is cheered as the ultimate open marketplace. On the other, telecommunications is one of the most heavily regulated industries in the world.
“Once voice becomes an application embedded in a web page, the notion of utility telephony begins to crumble,” said Will Stofega, an analyst with IDC. “Of course, if there is a compelling advantage or difference between clients, that may change the game and an end user may demand their favorite client.”
If eBay users challenged the auction site’s policy, then the issue could get on the U.S. Federal Communications Commission radar, said Mr. Stofega.
Source: Red Herring
วันอังคารที่ 9 ตุลาคม พ.ศ. 2550
TOT, CAT urged to settle row
The Nation (9 October 2007)
The State Enterprise Policy Office has urged TOT and CAT Telecom jointly to seek a solution to their dispute regarding the access charge collected from private cellular operators. A letter recently sent to TOT said the office stated that the access-charge dispute had significantly affected the operations, image and interests of both TOT and CAT Telecom. The possible impact on related parties and the telecom industry as a whole must be considered when seeking a solution. Total Access Communication (DTAC) filed a complaint with the Finance Ministry, saying it was inappropriate for TOT to ask CAT to demand access-charge compensation from DTAC for TOT. CAT owns the concessions of DTAC, True Move and Digital Phone. DTAC and True Move stopped paying the access charge to TOT last November, and the combined amount now totals Bt8 billion. Both cellular operators have turned to comply instead with the interconnection regulations of the National Telecommunications Commission. TOT has asked CAT to claim the access charge for it, knowing that CAT can demand double the actual charge amount from them, in accordance with their concession agreement. TOT has earned Bt14 billion in access charges annually. The access charge is the cost that all of CAT's private cellular concessionaires have paid to the company for connecting different networks via TOT facilities.
As of August, TOT gained only Bt984 million from the network-access charge after DTAC and True Move stopped payments.
The State Enterprise Policy Office has urged TOT and CAT Telecom jointly to seek a solution to their dispute regarding the access charge collected from private cellular operators. A letter recently sent to TOT said the office stated that the access-charge dispute had significantly affected the operations, image and interests of both TOT and CAT Telecom. The possible impact on related parties and the telecom industry as a whole must be considered when seeking a solution. Total Access Communication (DTAC) filed a complaint with the Finance Ministry, saying it was inappropriate for TOT to ask CAT to demand access-charge compensation from DTAC for TOT. CAT owns the concessions of DTAC, True Move and Digital Phone. DTAC and True Move stopped paying the access charge to TOT last November, and the combined amount now totals Bt8 billion. Both cellular operators have turned to comply instead with the interconnection regulations of the National Telecommunications Commission. TOT has asked CAT to claim the access charge for it, knowing that CAT can demand double the actual charge amount from them, in accordance with their concession agreement. TOT has earned Bt14 billion in access charges annually. The access charge is the cost that all of CAT's private cellular concessionaires have paid to the company for connecting different networks via TOT facilities.
As of August, TOT gained only Bt984 million from the network-access charge after DTAC and True Move stopped payments.
วันจันทร์ที่ 8 ตุลาคม พ.ศ. 2550
Belgium downplays breakup concerns
By ROBERT WIELAARD, Associated Press Writer Sun Oct 7, 2:30 PM ET
BRUSSELS, Belgium - Belgium has sent an unusual memo to its embassies around the world: If anyone asks whether the country's Dutch- and French-speaking parts are splitting up, say "No."
Nearly four months after holding general elections, Belgium's squabbling political parties still have not put a government together due to a deadlock over demands for more self-rule in Dutch-speaking Flanders and Francophone Wallonia.
The political stalemate has led to media and public speculation that Belgium might be better off breaking up, prompting Foreign Minister Karel de Gucht to offer "useful talking points" to embassy staffs meant to reassure Belgium's political and business partners worldwide.
The key point to make: "Dutch-speaking and Francophone inhabitants have always strived and managed to live together peacefully," the memo says.
It instructs embassy staffs to make clear in conversations with media and others that, after 177 years together, the political ambitions of Dutch- and French-speakers may have "evolved (but) it's still important to them to avoid any kind of violence."
Belgium has 6.5 million Dutch-speakers and 4 million Francophones. Just about everything — from cable companies to boy scouts to pigeon racing clubs — is split into Dutch- and French-speaking camps.
The country — a federation and constitutional monarchy — also gives a high degree of self-rule to its three regions. The national parliament is elected according to a scheme meant to balance representation of the French-speaking Walloons and Dutch-speaking Flemish.
The June 10 legislative elections gave a total of 81 seats to the Christian Democrats and Liberals, enough to form a governing center-right majority in the 150-seat lower house of parliament.
However both groups are split into Dutch- and French-speaking parties which have failed to agree over Flemish demands for more regional autonomy in health, justice and transport. They are also divided over the rights of a French-speaking minority living in Flemish territory around Brussels — the officially bilingual capital.
Local media reported that Belgian flags were burned during a demonstration Sunday by about 300 Flemish nationalists in Sint-Genesius-Rode, outside the capital. Several hundred people attended a demonstration in favor of Belgian unity in downtown Brussels, RTBF radio reported.
Francophones say enough powers have devolved to Flanders and Wallonia in the last 25 years, and they accuse Flemish politicians of engineering the demise of Belgium as a unified state.
Opinion polls have suggested a growing number of people in Flanders, Belgium's more prosperous northern half, now favor independence.
During a Flemish parliament debate last month on independence, Filip Dewinter, the head of the far-right Flemish Interest Party, said it was time for a "velvet divorce," referring to Czechoslovakia's 1993 peaceful breakup into the Czech Republic and Slovakia.
Elio di Rupo, leader of the Francophone Socialists, even predicted recently that Flanders will go its own way within a decade. "When you see how many people in Flanders believe Belgium can disappear, it's normal that ... Francophones start thinking about their own future," he said.
But the Belgian situation is not unique, De Gucht said in the memo, noting that Austria and the Netherlands had also experienced difficulties in forming governments, and saying that opinion polls were "fleeting."
So when will there be a government? De Gucht's memo suggests a safe answer: "When the time is right."
On Sunday he told the VRT television network he did not expect one before Nov. 11. Like the rest of Premier Guy Verhofstadt's outgoing Cabinet, De Gucht has stayed on in a caretaker capacity until a new government is formed.
Telecommunication Sector: Moving towards Free Competition
Vipada Mavichak
Executive Summary
• Thailand’s telecommunication sector is transforming from state monopoly to
free competition.
• The sector needs to be fully liberalized by 2006 following Thailand’s commitment to the World Trade Organization (WTO).
• Some of the issues that the government is working on include the establishment of the independent regulatory body; the National Telecommunication Commission (NTC), the privatization of TOT and CAT, the conversion of concession contracts and the introduction of interconnection charge.
• Despite the absence of fully liberalized market, competition already exist in some parts of the sector, for example, the mobile phone and the internet industries; therefore, benefiting consumers the variety of products increases while prices are falling.
• For the mobile phone sector, competition now is focused on prepaid services as well as data and non-voice products. From state monopoly to free competition
Thailand’s telecommunication sector has evolved from state monopolistic sector in the past. The two main state-owned enterprises responsible for providing telecom services comprised of the Telephone Organisation (TOT) and the Communication Authority of Thailand (CAT). Private sector has taken part in providing telecom services in an early 1990s by being granted BTO (Build-Transfer-Operate) concession contracts mainly from TOT and CAT in response the rapidly growing domestic demands at the time. Today, to create level playing field, the government realises that the market structure of the telecommunication sector needs to be adjusted. TOT and CAT can no longer hold their regulatory functions (as concessions issuers) as they will become the private operators in the market soon after the process of corporatisation and privatisation has been accomplished. Thailand is a member of the WTO. It is also committed to the World TradeOrganization (WTO) to liberalise the telecommunication sector by 2006. As a result,the government has to find the solutions for many unsolved issues before the deadline approaches.
A long-awaited regulator
According to Thailand’s constitution, a specific independent authority, which is called the National Telecommunication Commission (NTC), is to be set up to regulate the telecommunication sector. The organization’s main responsibility is to establish rules and regulations to govern an increasing competition in the market. This includes rules on qualifications of the operators, licenses issuances, operating conditions, fees, tariff structures, and consumer rights. However, the success of the establishment of NTC has been delayed due to diverse opinions among related parties. Now the list of the selection committee is being considered by the senate house. If the selection committee is born, the further process of selecting the Commission’s member will be able to proceed after being stagnant for some time.Once it is established, the NTC will immediately take charge of several challenging tasks, for example, the introduction of number portability and the replacement of the current access charge system with the enforcement of the new interconnection charge scheme. The number portability is the universally accepted concept. According to the Federation Communications Commission, the telecommunication regulator of the USA, the number portability means “a service that provides residential and business telephone customers with the ability to retain, at the same location, their existing local telephone numbers when switching from one local telephone service provider to another.” Number portability is one of the mandatory services that the telecommunication operators normally provide to their customers in developed countries where effective telecommunication regulations are well-established. In the case of Thailand, the concept is yet to be imposed. But when the NTC is set up, the concept should be transformed into the real implementation to benefit telecommunications users in the country. For the interconnection charge, the issue can be said to be more urgent and at the same time more complicated due to different access charges conditions ofexisting concession contracts, which is seen by some operators as a main obstacle to a fair competition in the current market. Despite the absence of the NTC at the moment, the attempt to set up the interconnection charge scheme has been undertaken by the Information and Communication Technology Ministry (ICT Ministry) as the government realise the significance of the regulatory improvements of Thailand’s telecommunication sector. The Post and Telegraph Department was assigned by the ICT Ministry to study the possible rate structure of the interconnection charge among telecommunication service providers. It also held several discussions with private operators, which helped them to reduce the differences of their stances on the issue. The conclusion has been mutually reached but the ICT Minister, Mr. Surapong Suebwonglee, decided to wait for theconfirmation of the NTC before starting the implementation of this new interconnection charge scheme. The privatization of telecom state-owned enterprises
In addition to the NTC establishment, the telecommunication sector of Thailand also needs the same level playing field to achieve a free and fair competition among telecommunication operators. As a result, the current market structure has to be reformed. TOT and CAT have to give up their regulatory power to become solely telecommunication service providers.
In November 1997, the government approved a “Master Plan for Telecommunications Development”. According to the plan, TOT and CAT were to become private companies through the corporatization and privatization process.All of the concessions contracts that they both held would be converted into licenses. However, the privatization process has been delayed for some time due to some regulatory uncertainties on key issues, one of which is the framework of concession contracts conversion scheme. The other is the right business model for TOT and CAT when the two become private companies. Both issues, nevertheless, are very much interrelated; therefore, making the matters more complicated to be solved.
Despite some regulatory uncertainties, TOT and CAT were finally corporatized in 2002 and 2003 respectively. The next step for both is to undergo the privatization process. But before TOT and CAT can be privatized, all the concession contracts between the two state owned enterprises and private telecommunication operators have to be converted into licenses. The first draft of conversion scheme was proposed by TDRI, hired by the government at the time, but it was rejected by private companies for the reason that the scheme would result in heavy financial burden on them. The second proposal came from Intellectual Property Institute of Chulalongkorn University, which was also aborted later due to protests from public
which said the proposal was biased towards private companies’ benefits. The latest proposals are the results of the studies conducted by financial advisers of TOT and CAT. From the TOT’s side, the proposals come from Siam Commercial Bank Securities, Morgan Stanley and also from the group of its financial advisers. The proposals from CAT’s side come from BT Securities and Asset Plus. All the proposals have already been submitted to the ICT Ministry. The conclusion should be coming out very soon after the strengths and weaknesses of each proposal are properly evaluated. As for now, before any conversion process can take place, a part of concession fees that private companies have to pay CAT and TOT is transformed into
excise tax payments following the initiative of the ICT Minister since last year. It should be noted that the stagnation of concession contracts conversion process also reduces the likelihood that TOT’s and CAT’s shares will be listed in the stock market soon since it is nearly impossible to tell the asset values of both state owned enterprises as long as the result of the contracts conversion process is still unclear.Apart from the uncertainty of contracts conversion process, a proper business model for TOT and CAT is another issue that catches public attention. Earlier this year, Mr. Surapong Suebwonglee, the ICT Minister, initiated the idea of merging the two state owned enterprises before listing the shares in the stock market with the assumption that the value of the newly merged company will be boosted. However, the idea did not materialize in the end due to the preferences of both companies to workindividually. Therefore, the strategy had to be adjusted. The most likely solution is to set up a holding company to formulate the overall policy for TOT and CAT as well as to hold certain shares of both; therefore TOT and CAT will become subsidiaries of this holding company.
Current competitions in the market
Despite the imperfect competition of Thai telecom sector, it is undeniable that increasing participation from private companies has brought some competitive element into the markets. This phenomenon is obvious especially among the mobile phones operators and the internet providers. As a result, users can benefit from more various kinds of services with the falling prices from increasing numbers of mobile phone operators. For the mobile phone sector, at the end of 2003, the total number of mobile phone subscribers has reached 22 million people, a 22% increase from the total number of subscribers in 2002. However, all the mobile phone operators seem to acknowledge a slower growth rate in terms of number of subscribers from now on. The trend signifies that the centre of the competition now will shift from increasing market share to providing more customised products in order to increase their revenue from the services. The competitive environment in Thai telecommunication sector has intensified because of new market entries of international telecommunication companies. Orange, a giant European telecommunication operator, had expanded its services in Thailand by joining Telecom Asia of the CP Group in order to provide mobile phone services under the new company called TA Orange. Though it had to compete with the already well-established companies like Advance Info Service and DTAC, the company has still been able to capture 8.2% of the market share within two years after the launch of its services. However, earlier this year, TA Orange revealed some unexpected news that their foreign partner, Orange, decided to pull back their investment in the company by selling its 819 million shares (around 39%) at the price of one baht per share back to the CP group. Even after departure of Orange, the board of directors of TA Orange have remained adamant that their financial status and performance will continue to be of highest standard. The company now is on the campaign to promote its services under the new name; True. Hutch is another newcomer in mobile phone sector. It is a joint venture between Hutchinson Wireless Multimedia Holding Limited and CAT Telecom Public Co. Its mobile phone service is operated on CDMA 1X technology, which has high capacities to serve multimedia and entertainment functions. However, the service of Hutch now only covers the central region of Thailand as CAT has still preserved the right to provide mobile phone service through CDMA 1X technology in other parts of Thailand. Despite new challenged posed by foreign mobile phone companies, Advance Info Service (AIS) can still secure their dominant position in the sector by having 59.3% of the total market share at the end of 2003 with the total number of 13 million subscribers. The company’s total revenue last year reached 89, 492 million Baht, an 11.5% increase (y-o-y). The net profit of 2003 also rose 21% (y-o-y) to 18, 529 million Baht. The mobile service revenue has added a majority part of revenue from service and equipment rentals. Prepaid revenue in the last quarter last year also rose significantly due to higher average usage and a larger customer base. Second to the AIS is DTAC, whose market share is as big as 29.3% at the end of 2003. It has more than 6.5 million subscribers, 1.1 million of which were new subscribers last year. The company earned approximately 31, 781 million Baht as its total revenue in 2003. The figure suggested a slight drop from its total revenue in
2002. Yet its net profit still increased 24% (y-o-y) to 2,586 million Baht in the previous year.As mentioned earlier that the competition nowadays in Thai mobile phone sector has changed considerably. The popularity of the prepaid phone seems to outgrow the post-paid service. The growth rate of data and non-voice service is also exceptionally high. The diversity of customer demands leads the mobile phone operators to customise their service packages to match with requirements of each target group. In terms of paying scheme, the market seems to be clearly divided between post-paid and prepaid services. But whereas the demand for the former has seemed to reach its potential, the latter still enjoys high growth rate recently. It should be noted that of all 22 million mobile phone subscribers now, 81% of which, or 18
million subscribers, are the users under prepaid service scheme. So it is not a surprise that most of the mobile phone operators are now fiercely competing in the prepaid service market. Nevertheless, a dream of huge profits for these operators will not come as easily as one expected. One reason is that the average revenue per number of the prepaid phone ismuch lower than that of the post-paid service. AIS revealed that the averagerevenue per a post-paid number is more than 1000 Baht per month whereas one prepaid number approximately generated only 350 Baht per month. For DTAC, the revenue per a prepaid number was around 250 Baht per month, whereas a post-paid number can make more than 1000 Baht per month.The other reason that make the prepaid phone business more challenging comes from the fact that the phone companies have to pay great deal of subsidiesfor the handset for the first-time buyers without any certainty that the users willcome back and buy more credits for that number.However, experts agreed that a large profit is still obtainable if the operators can manage the tariff packages effectively enough. In addition to the voice services, data and other non-voice service is also another segment of the market that could become another source of profits for the mobile phone companies. According to AIS, although its income from data service currently accounted for 3% of the total income (most of which comes from SMS), it believed that data and non-voice service still has high growth potential. AIS forecasts the revenue from MMS will rise to 100 million baht in 2004. Last year AIS gained 20 million baht from its MMS. Recently AIS has joined with DTAC to allow their users to send MMS between two networks. This will cost the users of both networks 10 baht per each MMS. The agreement will mutually benefit both DTAC and AIS. DTAC is also expecting that the revenue from MMS this year could reach 50 million baht (rising from 18 million baht last year).
Conclusion
Its 2002 net profit was substantially reduced due to its 32.9 million baht loss from exchange rate transactions. Mattias Hommer and Andre Krause, “Getting prepaid plans to pay off”, Bangkok Post, 28 April 2004.
Telecommunication sector of Thailand will experience more changes within the next few years. The commitment to the WTO to liberalize the sector by 2006 will be the main driving force for the government to pursue further regulatory reforms. A slow process of the NTC establishment and TOT and CAT privatization has created some regulatory uncertainty for the sector, which negatively affects related parties. As a result, in spite of different approaches, TOT, CAT and private operators will have no other choices but they have to make a compromise among their themselves. The ICT ministry itself has also held several discussion rounds among itself, state-own telecommunication enterprises and private operators an attempt to break some regulatory deadlocks. The discussions often resulted in a further compromise among these parties. However, the real implementation of several issues such as a new scheme of interconnection charge still remains to be seen. Despite being only on a half way to fully liberalized market, some parts of the telecommunication sector of Thailand has already embraced a partial competition, for example, the mobile phone sector. With approximately 22 million subscribers last year, the total market share was occupied by three main operators; AIS, DTAC and TA Orange (or True as its current name). The competition has particularly intensified in prepaid services. Data and non-voice services are other areas where most operators see the opportunity for further income generating in the near future.
Executive Summary
• Thailand’s telecommunication sector is transforming from state monopoly to
free competition.
• The sector needs to be fully liberalized by 2006 following Thailand’s commitment to the World Trade Organization (WTO).
• Some of the issues that the government is working on include the establishment of the independent regulatory body; the National Telecommunication Commission (NTC), the privatization of TOT and CAT, the conversion of concession contracts and the introduction of interconnection charge.
• Despite the absence of fully liberalized market, competition already exist in some parts of the sector, for example, the mobile phone and the internet industries; therefore, benefiting consumers the variety of products increases while prices are falling.
• For the mobile phone sector, competition now is focused on prepaid services as well as data and non-voice products. From state monopoly to free competition
Thailand’s telecommunication sector has evolved from state monopolistic sector in the past. The two main state-owned enterprises responsible for providing telecom services comprised of the Telephone Organisation (TOT) and the Communication Authority of Thailand (CAT). Private sector has taken part in providing telecom services in an early 1990s by being granted BTO (Build-Transfer-Operate) concession contracts mainly from TOT and CAT in response the rapidly growing domestic demands at the time. Today, to create level playing field, the government realises that the market structure of the telecommunication sector needs to be adjusted. TOT and CAT can no longer hold their regulatory functions (as concessions issuers) as they will become the private operators in the market soon after the process of corporatisation and privatisation has been accomplished. Thailand is a member of the WTO. It is also committed to the World TradeOrganization (WTO) to liberalise the telecommunication sector by 2006. As a result,the government has to find the solutions for many unsolved issues before the deadline approaches.
A long-awaited regulator
According to Thailand’s constitution, a specific independent authority, which is called the National Telecommunication Commission (NTC), is to be set up to regulate the telecommunication sector. The organization’s main responsibility is to establish rules and regulations to govern an increasing competition in the market. This includes rules on qualifications of the operators, licenses issuances, operating conditions, fees, tariff structures, and consumer rights. However, the success of the establishment of NTC has been delayed due to diverse opinions among related parties. Now the list of the selection committee is being considered by the senate house. If the selection committee is born, the further process of selecting the Commission’s member will be able to proceed after being stagnant for some time.Once it is established, the NTC will immediately take charge of several challenging tasks, for example, the introduction of number portability and the replacement of the current access charge system with the enforcement of the new interconnection charge scheme. The number portability is the universally accepted concept. According to the Federation Communications Commission, the telecommunication regulator of the USA, the number portability means “a service that provides residential and business telephone customers with the ability to retain, at the same location, their existing local telephone numbers when switching from one local telephone service provider to another.” Number portability is one of the mandatory services that the telecommunication operators normally provide to their customers in developed countries where effective telecommunication regulations are well-established. In the case of Thailand, the concept is yet to be imposed. But when the NTC is set up, the concept should be transformed into the real implementation to benefit telecommunications users in the country. For the interconnection charge, the issue can be said to be more urgent and at the same time more complicated due to different access charges conditions ofexisting concession contracts, which is seen by some operators as a main obstacle to a fair competition in the current market. Despite the absence of the NTC at the moment, the attempt to set up the interconnection charge scheme has been undertaken by the Information and Communication Technology Ministry (ICT Ministry) as the government realise the significance of the regulatory improvements of Thailand’s telecommunication sector. The Post and Telegraph Department was assigned by the ICT Ministry to study the possible rate structure of the interconnection charge among telecommunication service providers. It also held several discussions with private operators, which helped them to reduce the differences of their stances on the issue. The conclusion has been mutually reached but the ICT Minister, Mr. Surapong Suebwonglee, decided to wait for theconfirmation of the NTC before starting the implementation of this new interconnection charge scheme. The privatization of telecom state-owned enterprises
In addition to the NTC establishment, the telecommunication sector of Thailand also needs the same level playing field to achieve a free and fair competition among telecommunication operators. As a result, the current market structure has to be reformed. TOT and CAT have to give up their regulatory power to become solely telecommunication service providers.
In November 1997, the government approved a “Master Plan for Telecommunications Development”. According to the plan, TOT and CAT were to become private companies through the corporatization and privatization process.All of the concessions contracts that they both held would be converted into licenses. However, the privatization process has been delayed for some time due to some regulatory uncertainties on key issues, one of which is the framework of concession contracts conversion scheme. The other is the right business model for TOT and CAT when the two become private companies. Both issues, nevertheless, are very much interrelated; therefore, making the matters more complicated to be solved.
Despite some regulatory uncertainties, TOT and CAT were finally corporatized in 2002 and 2003 respectively. The next step for both is to undergo the privatization process. But before TOT and CAT can be privatized, all the concession contracts between the two state owned enterprises and private telecommunication operators have to be converted into licenses. The first draft of conversion scheme was proposed by TDRI, hired by the government at the time, but it was rejected by private companies for the reason that the scheme would result in heavy financial burden on them. The second proposal came from Intellectual Property Institute of Chulalongkorn University, which was also aborted later due to protests from public
which said the proposal was biased towards private companies’ benefits. The latest proposals are the results of the studies conducted by financial advisers of TOT and CAT. From the TOT’s side, the proposals come from Siam Commercial Bank Securities, Morgan Stanley and also from the group of its financial advisers. The proposals from CAT’s side come from BT Securities and Asset Plus. All the proposals have already been submitted to the ICT Ministry. The conclusion should be coming out very soon after the strengths and weaknesses of each proposal are properly evaluated. As for now, before any conversion process can take place, a part of concession fees that private companies have to pay CAT and TOT is transformed into
excise tax payments following the initiative of the ICT Minister since last year. It should be noted that the stagnation of concession contracts conversion process also reduces the likelihood that TOT’s and CAT’s shares will be listed in the stock market soon since it is nearly impossible to tell the asset values of both state owned enterprises as long as the result of the contracts conversion process is still unclear.Apart from the uncertainty of contracts conversion process, a proper business model for TOT and CAT is another issue that catches public attention. Earlier this year, Mr. Surapong Suebwonglee, the ICT Minister, initiated the idea of merging the two state owned enterprises before listing the shares in the stock market with the assumption that the value of the newly merged company will be boosted. However, the idea did not materialize in the end due to the preferences of both companies to workindividually. Therefore, the strategy had to be adjusted. The most likely solution is to set up a holding company to formulate the overall policy for TOT and CAT as well as to hold certain shares of both; therefore TOT and CAT will become subsidiaries of this holding company.
Current competitions in the market
Despite the imperfect competition of Thai telecom sector, it is undeniable that increasing participation from private companies has brought some competitive element into the markets. This phenomenon is obvious especially among the mobile phones operators and the internet providers. As a result, users can benefit from more various kinds of services with the falling prices from increasing numbers of mobile phone operators. For the mobile phone sector, at the end of 2003, the total number of mobile phone subscribers has reached 22 million people, a 22% increase from the total number of subscribers in 2002. However, all the mobile phone operators seem to acknowledge a slower growth rate in terms of number of subscribers from now on. The trend signifies that the centre of the competition now will shift from increasing market share to providing more customised products in order to increase their revenue from the services. The competitive environment in Thai telecommunication sector has intensified because of new market entries of international telecommunication companies. Orange, a giant European telecommunication operator, had expanded its services in Thailand by joining Telecom Asia of the CP Group in order to provide mobile phone services under the new company called TA Orange. Though it had to compete with the already well-established companies like Advance Info Service and DTAC, the company has still been able to capture 8.2% of the market share within two years after the launch of its services. However, earlier this year, TA Orange revealed some unexpected news that their foreign partner, Orange, decided to pull back their investment in the company by selling its 819 million shares (around 39%) at the price of one baht per share back to the CP group. Even after departure of Orange, the board of directors of TA Orange have remained adamant that their financial status and performance will continue to be of highest standard. The company now is on the campaign to promote its services under the new name; True. Hutch is another newcomer in mobile phone sector. It is a joint venture between Hutchinson Wireless Multimedia Holding Limited and CAT Telecom Public Co. Its mobile phone service is operated on CDMA 1X technology, which has high capacities to serve multimedia and entertainment functions. However, the service of Hutch now only covers the central region of Thailand as CAT has still preserved the right to provide mobile phone service through CDMA 1X technology in other parts of Thailand. Despite new challenged posed by foreign mobile phone companies, Advance Info Service (AIS) can still secure their dominant position in the sector by having 59.3% of the total market share at the end of 2003 with the total number of 13 million subscribers. The company’s total revenue last year reached 89, 492 million Baht, an 11.5% increase (y-o-y). The net profit of 2003 also rose 21% (y-o-y) to 18, 529 million Baht. The mobile service revenue has added a majority part of revenue from service and equipment rentals. Prepaid revenue in the last quarter last year also rose significantly due to higher average usage and a larger customer base. Second to the AIS is DTAC, whose market share is as big as 29.3% at the end of 2003. It has more than 6.5 million subscribers, 1.1 million of which were new subscribers last year. The company earned approximately 31, 781 million Baht as its total revenue in 2003. The figure suggested a slight drop from its total revenue in
2002. Yet its net profit still increased 24% (y-o-y) to 2,586 million Baht in the previous year.As mentioned earlier that the competition nowadays in Thai mobile phone sector has changed considerably. The popularity of the prepaid phone seems to outgrow the post-paid service. The growth rate of data and non-voice service is also exceptionally high. The diversity of customer demands leads the mobile phone operators to customise their service packages to match with requirements of each target group. In terms of paying scheme, the market seems to be clearly divided between post-paid and prepaid services. But whereas the demand for the former has seemed to reach its potential, the latter still enjoys high growth rate recently. It should be noted that of all 22 million mobile phone subscribers now, 81% of which, or 18
million subscribers, are the users under prepaid service scheme. So it is not a surprise that most of the mobile phone operators are now fiercely competing in the prepaid service market. Nevertheless, a dream of huge profits for these operators will not come as easily as one expected. One reason is that the average revenue per number of the prepaid phone ismuch lower than that of the post-paid service. AIS revealed that the averagerevenue per a post-paid number is more than 1000 Baht per month whereas one prepaid number approximately generated only 350 Baht per month. For DTAC, the revenue per a prepaid number was around 250 Baht per month, whereas a post-paid number can make more than 1000 Baht per month.The other reason that make the prepaid phone business more challenging comes from the fact that the phone companies have to pay great deal of subsidiesfor the handset for the first-time buyers without any certainty that the users willcome back and buy more credits for that number.However, experts agreed that a large profit is still obtainable if the operators can manage the tariff packages effectively enough. In addition to the voice services, data and other non-voice service is also another segment of the market that could become another source of profits for the mobile phone companies. According to AIS, although its income from data service currently accounted for 3% of the total income (most of which comes from SMS), it believed that data and non-voice service still has high growth potential. AIS forecasts the revenue from MMS will rise to 100 million baht in 2004. Last year AIS gained 20 million baht from its MMS. Recently AIS has joined with DTAC to allow their users to send MMS between two networks. This will cost the users of both networks 10 baht per each MMS. The agreement will mutually benefit both DTAC and AIS. DTAC is also expecting that the revenue from MMS this year could reach 50 million baht (rising from 18 million baht last year).
Conclusion
Its 2002 net profit was substantially reduced due to its 32.9 million baht loss from exchange rate transactions. Mattias Hommer and Andre Krause, “Getting prepaid plans to pay off”, Bangkok Post, 28 April 2004.
Telecommunication sector of Thailand will experience more changes within the next few years. The commitment to the WTO to liberalize the sector by 2006 will be the main driving force for the government to pursue further regulatory reforms. A slow process of the NTC establishment and TOT and CAT privatization has created some regulatory uncertainty for the sector, which negatively affects related parties. As a result, in spite of different approaches, TOT, CAT and private operators will have no other choices but they have to make a compromise among their themselves. The ICT ministry itself has also held several discussion rounds among itself, state-own telecommunication enterprises and private operators an attempt to break some regulatory deadlocks. The discussions often resulted in a further compromise among these parties. However, the real implementation of several issues such as a new scheme of interconnection charge still remains to be seen. Despite being only on a half way to fully liberalized market, some parts of the telecommunication sector of Thailand has already embraced a partial competition, for example, the mobile phone sector. With approximately 22 million subscribers last year, the total market share was occupied by three main operators; AIS, DTAC and TA Orange (or True as its current name). The competition has particularly intensified in prepaid services. Data and non-voice services are other areas where most operators see the opportunity for further income generating in the near future.
IBasis Merger Transforms Holland's Telecom Into A Wholesale Carrier
A deal to own 51% of iBasis places the company in the ranks of the top four international long distance providers.
By W. David GardnerInformationWeek
One of the least-known but most-used telephone services in the world, iBasis, of Burlington, Massachusetts, merged this week with Royal KPN, the national carrier of the Netherlands.
The deal, which calls for Royal KPN to own 51 % of iBasis, places the company in the ranks of the top four international long distance providers. IBasis isn't exactly a household word with consumers or even in the 
A representative interconnection arrangement, for instance, was announced Wednesday when iBasis reported that it has contacted with Cable & Wireless Panama to route the Panamanian operation's international voice traffic over its iBasis
Historically, iBasis has been on a roller coaster ride, hitting a $3.3 billion market valuation high in 2000 at the height of the telecom bubble, then plunging to $12 million in 2002; it's been on a relentless upswing since then.
While precise figures for the current fiscal period aren't available, the new combined iBasis-Royal KPN operation would have recorded $1.3 billion in revenue in 2006 with iBasis accounting for $511 million of that total, according to media reports.
The combined company carried more than 20 billion minutes of international VoIP traffic in 2006.
Royal KPN and iBasis had originally announced their intention to merge several months ago, but the deal was held up while iBasis' stock options practices were examined.
Toll Free Numbers - Why Does My Business Need One?
By: Steve Norris
Since 1967, companies have used Toll Free numbers to provide a way for their clients and potential clients to call them at no charge. As the telecommunications and telecommunications hardware market has become more sophisticated, this service has taken on an expanded and altered role. We take a look at what businesses used this service for, what they use it for now, and why it is a tool your business cannot be without.
Let’s first define Toll Free numbers:Toll-Free numbers are sometimes called "800 numbers" after the original area code which was used to dial them. They include the area codes 800, 888, 877, 866, 855 (although not yet in heavy use), 844, 833 and 822 (the last three are not yet active but reserved). Toll-Free numbers allow the owner of the number to pay the calling charges of the incoming calling party. Because the owner of the number is paying for the call, they are allowed to see the incoming Caller ID even if the calling party has Caller ID blocked.
When Toll-Free numbers came into existence in 1967, the average cost of long distance to the carriers was $0.24 per minute. (Equivalent in 1999 dollars to $1.21 per minute) They charged MUCH higher rates. That was for outbound long distance. Inbound Toll Free rates were typically higher. The main reasons to own a Toll Free number in the early years of the service were the following:
Used to help their major customers and suppliers avoid paying long distance charges and encourage them to make calls/increase sales
Created a larger company image
Ease of move of service if the business location moved (Local Number Portability was a BIG issue for local businesses who moved and wanted to keep their current phone numbers. If they only gave out the Toll Free number, moving was not an issue)
Companies originally did not flock to the service, but it caught on quick and increased every year. In 1967, over 7 million calls were recorded, and now there are over 30 billion annually. Around 1980, advances in AT&T’s long distance network enabled businesses to use and promote a single nationwide toll-free number, instead of different numbers in different states.
Almost overnight it became smart business to include a toll-free number in national television or print advertising. The advertising fueled consumer awareness of toll-free numbers, which, over time, grew into an expectation that companies wanting business will provide a toll-free number. 40 years later, there are even more reasons to own a Toll Free number. In addition to customer convenience, local number portability and a prestigious company image, there are several new reasons to consider owning your own Toll Free number.
(Vanity Toll Free Numbers)Used for ease of remembering your business number and number. (Ex: 1-800-Flowers)
Used for advertising campaign tracking (Telephone carriers give you a monthly statement that shows the volume of calls per Toll Free number, the number that called, date, time, and where it was from. This information can prove to be invaluable when tracking the effectiveness of an advertising campaign such as radio, newspaper, yellow pages, television, or others.)
Businesses can be listed in the Nationwide Toll Free directory and easily found
Expand your marketing reach (Consumers and companies may not call an unfamiliar area code, but they will call a Toll Free number)
Advanced call routing (Route incoming Toll Free calls in several flexible ways, including geographic routing by exchange or area code, Time of Day routing, Day of Week Routing, Day of Year routing, Percentage Allocation Routing, All-Trunks-Busy Routing, Ring No Answer Routing, Emergency or Disaster Routing.
Given to employees or remote trainees/students to avoid higher cell phone charges and collect call charges for calls from the field.
With typical calling rates at $0.05 and under per minute available now, Toll Free numbers are now a cost effective tool for every business. If you are looking for a Vanity Toll Free number, check your favorite search engine for several sources.
If you are a company that does ANY advertising, how do you track it? Do you rely on your receptionist or secretary to ask every time “How did you hear about us?” Are you convinced that method works or is accurate? With a Toll Free phone number, you’ll never wonder again if that yellow page ad you spend thousands of dollars on annually produces or not. With a different Toll Free number for your radio and television ads, you’ll be able to track your ROI, and find out which methods do and do not work for you. Which time slots, which direct mail campaigns, which newspaper or magazine ads work for your company? Not knowing can cost you dearly. It’s now the least expensive tool on the market to track exact results, and it may save your company thousands of dollars in wasted or ineffective ad campaigns.
Some nationwide carriers now offer business packages that include a Toll Free number, as well as bundled minutes at no additional cost. Some carriers include long distance minutes that can be used for either outbound long distance or inbound Toll Free service as part of their package. This may be a tool you already have access to at no cost, but just simply have not been using. Consult with your telecommunications professional to choose the right solution for you.
Steve Norris is a Texas based Energy Efficient Electrical Contractor and Independent Telecom Broker for over 80 carriers nationwide, and specializes in multi-location businesses with advanced infrastructure needs. Over 90% of his clients are able to implement new technology at little or no cost with his proprietary TeleTAP solution. Visit him on the web at www.telephoneguru.net and www.energyretrofitters.com
Since 1967, companies have used Toll Free numbers to provide a way for their clients and potential clients to call them at no charge. As the telecommunications and telecommunications hardware market has become more sophisticated, this service has taken on an expanded and altered role. We take a look at what businesses used this service for, what they use it for now, and why it is a tool your business cannot be without.
Let’s first define Toll Free numbers:Toll-Free numbers are sometimes called "800 numbers" after the original area code which was used to dial them. They include the area codes 800, 888, 877, 866, 855 (although not yet in heavy use), 844, 833 and 822 (the last three are not yet active but reserved). Toll-Free numbers allow the owner of the number to pay the calling charges of the incoming calling party. Because the owner of the number is paying for the call, they are allowed to see the incoming Caller ID even if the calling party has Caller ID blocked.
When Toll-Free numbers came into existence in 1967, the average cost of long distance to the carriers was $0.24 per minute. (Equivalent in 1999 dollars to $1.21 per minute) They charged MUCH higher rates. That was for outbound long distance. Inbound Toll Free rates were typically higher. The main reasons to own a Toll Free number in the early years of the service were the following:
Used to help their major customers and suppliers avoid paying long distance charges and encourage them to make calls/increase sales
Created a larger company image
Ease of move of service if the business location moved (Local Number Portability was a BIG issue for local businesses who moved and wanted to keep their current phone numbers. If they only gave out the Toll Free number, moving was not an issue)
Companies originally did not flock to the service, but it caught on quick and increased every year. In 1967, over 7 million calls were recorded, and now there are over 30 billion annually. Around 1980, advances in AT&T’s long distance network enabled businesses to use and promote a single nationwide toll-free number, instead of different numbers in different states.
Almost overnight it became smart business to include a toll-free number in national television or print advertising. The advertising fueled consumer awareness of toll-free numbers, which, over time, grew into an expectation that companies wanting business will provide a toll-free number. 40 years later, there are even more reasons to own a Toll Free number. In addition to customer convenience, local number portability and a prestigious company image, there are several new reasons to consider owning your own Toll Free number.
(Vanity Toll Free Numbers)Used for ease of remembering your business number and number. (Ex: 1-800-Flowers)
Used for advertising campaign tracking (Telephone carriers give you a monthly statement that shows the volume of calls per Toll Free number, the number that called, date, time, and where it was from. This information can prove to be invaluable when tracking the effectiveness of an advertising campaign such as radio, newspaper, yellow pages, television, or others.)
Businesses can be listed in the Nationwide Toll Free directory and easily found
Expand your marketing reach (Consumers and companies may not call an unfamiliar area code, but they will call a Toll Free number)
Advanced call routing (Route incoming Toll Free calls in several flexible ways, including geographic routing by exchange or area code, Time of Day routing, Day of Week Routing, Day of Year routing, Percentage Allocation Routing, All-Trunks-Busy Routing, Ring No Answer Routing, Emergency or Disaster Routing.
Given to employees or remote trainees/students to avoid higher cell phone charges and collect call charges for calls from the field.
With typical calling rates at $0.05 and under per minute available now, Toll Free numbers are now a cost effective tool for every business. If you are looking for a Vanity Toll Free number, check your favorite search engine for several sources.
If you are a company that does ANY advertising, how do you track it? Do you rely on your receptionist or secretary to ask every time “How did you hear about us?” Are you convinced that method works or is accurate? With a Toll Free phone number, you’ll never wonder again if that yellow page ad you spend thousands of dollars on annually produces or not. With a different Toll Free number for your radio and television ads, you’ll be able to track your ROI, and find out which methods do and do not work for you. Which time slots, which direct mail campaigns, which newspaper or magazine ads work for your company? Not knowing can cost you dearly. It’s now the least expensive tool on the market to track exact results, and it may save your company thousands of dollars in wasted or ineffective ad campaigns.
Some nationwide carriers now offer business packages that include a Toll Free number, as well as bundled minutes at no additional cost. Some carriers include long distance minutes that can be used for either outbound long distance or inbound Toll Free service as part of their package. This may be a tool you already have access to at no cost, but just simply have not been using. Consult with your telecommunications professional to choose the right solution for you.
Steve Norris is a Texas based Energy Efficient Electrical Contractor and Independent Telecom Broker for over 80 carriers nationwide, and specializes in multi-location businesses with advanced infrastructure needs. Over 90% of his clients are able to implement new technology at little or no cost with his proprietary TeleTAP solution. Visit him on the web at www.telephoneguru.net and www.energyretrofitters.com
U.S. investor battles world's richest man
A U.S. investor's attempt to enforce a long-distance phone deal in El Salvador turns into a legal battle with the richest man in the world.
BY JANE BUSSEY
jbussey@MiamiHerald.com
Thomas A. Gordon, an investment banker turned Latin American investor, expected there would be minor legal wrangling after his company plunked down $16.5 million to buy international long-distance providers in El Salvador and Guatemala last year.
But Gordon never thought his fight to enforce a long-distance access agreement with El Salvador's main telephone company would lead to a bare-knuckles battle with the telecommunications conglomerate owned by Mexico's Carlos Slim, whom Fortune magazine now ranks as the richest man in the world.
Gordon's attorney, Daniel E. González, of the international law firm Hogan & Hartson, calls the dispute ``a fight between David and Goliath.''
In May, Gordon's Americatel El Salvador won a $9.4 million arbitration award -- and more importantly new long-distance access -- in a case that stemmed from Compañía de Telecomunicaciones de El Salvador's refusal to provide agreed-upon telephone access connections.
CTE is owned by América Móvil, the largest telecommunications company in Latin America and a part of Slim's estimated $58.5 billion holdings in telecommunications, manufacturing, retail, banking, transportation and real estate, mostly in Mexico.
But despite Americatel's arbitration win in El Salvador and the fact that it prevailed a second time after a clarification was requested on some points, Slim's company fought on in Salvadoran civil court -- contrary to rules saying the arbitration would be final.
Increasingly, international arbitration is being written into contracts as a way of saving time and money in business disputes -- as well as to avoid having a disagreement heard in local courts in Latin America or the United States. A binding arbitration clause was in Americatel's contract with CTE, which Slim's América Móvil acquired from France Telecom in 2003.
But arbitration decisions can still run into problems, as this case underscores.
In mid-July, CTE petitioned a civil court in San Salvador to annul the decision, arguing that there were procedural defects and that the dispute should not have been subjected to international arbitration rules in the first place.
International arbitration groups such as the American Arbitration Association, CTE attorneys contended in a court filing, had no authority in El Salvador.
Unaware of the legal maneuvering in San Salvador, some days later, Gordon's attorneys filed a petition in federal court in Miami to obtain a judge's order to collect the money. Under international arbitration treaties, a judgment in one country can be collected in any country where companies have holdings or bank accounts. The final arbitration session in the case also was held in Miami.
On Aug. 21, U.S. District Judge Federico A. Moreno confirmed the $9.4 million judgment for Americatel El Salvador. But once Moreno learned that there was a competing motion filed in El Salvador, he called attorneys from both sides for a Sept. 14 hearing to try to better understand the dispute.
''Why did you participate in the arbitration? It took you 2 ½ years to say time out?'' Moreno asked Angel Castillo, an attorney with Ogletree, Deakins who represents CTE. ``What did you think happens in an arbitration? One of you was going to win.''
NO JURISDICTION
Castillo insisted Moreno had no jurisdiction since the petition to annul the arbitrations was in the hands of a civil court in El Salvador, which had ordered Americatel to halt any attempt to collect the award from CTE.
''This is a Salvadoran arbitration,'' Castillo said, noting that under Salvadoran law a party can take an arbitration to civil court. ``The court in Miami does not have jurisdiction.''
González, Gordon's attorney, said CTE is constantly changing its tune.
''They even went before Salvadoran courts and insisted no action be taken by regulators given that there was an ongoing arbitration,'' he said. ``Once they lost the arbitration, they want to do a 180-degree turn and say that the arbitration is invalid.''
The dispute between Americatel El Salvador and CTE stems from a 2003 agreement that stipulated Americatel -- then owned by a Chilean company -- could request and receive additional local telephone interconnection access, known as E-1 ports, as demand rose for more long-distance traffic to El Salvador.
Without new E-1 ports, long distance calls will not connect in peak evening hours and clients take their business elsewhere. Americatel argues that its market share in El Salvador fell from 25 percent in 2003 to 18 percent in 2004.
CTE earns a fee from additional access ports, but it also allows companies like Americatel to grow. After two years of refusal by CTE for more E-1 ports, Americatel filed for arbitration in 2005, citing breach of contract.
CTE argued, unsuccessfully, in the arbitration that the agreement was broken because Americatel had given another telephone provider better connection terms. But the three arbitration judges who heard the case said the other contract was with a cellphone company whose connections charges were higher than for land lines.
Not only was CTE ordered to pay the multimillion-dollar award, but also to open up 21 E-1 ports for Americatel.
TYPICAL FIGHT
Gordon sees his dispute with the richest man in the world as typical of a bigger company trying to crush a small upstart. ''We've had a series of events, a pattern by Compañía de Telecomunicaciones to drive people like myself out of business,'' he said. ``With CTE being the dominant carrier and able to set prices, lower prices, we can't counter that with increased volume if they won't open it up for us.''
Slim's hardball tactics with business competitors are well known in Mexico, where he gained control of Teléfonos de México in a $1.7 billion privatization deal in 1990 and has held a near monopoly ever since. With limited competition, Mexico has one of the highest-cost telephone systems in the world.
Slim's América Móvil, which has assets of $29.2 billion, has fixed-line or wireless companies in the United States, Mexico and 14 countries in the Caribbean, Central America and South America.
A spokeswoman for América Móvil in Mexico City declined to comment on the case, and a spokesman also said that Slim was not available to comment.
Gordon was an investment banker in Denver before becoming involved in the telecom sector in Central America. His Denver-based Iselo Holdings bought Americatel Central America, which included companies in El Salvador and Guatemala, from the Chilean company Entel in 2006.
Gordon said he was aware of the dispute and arbitration when he acquired Americatel but had been confident Americatel would win.
CTE attorney Castillo, who has been working on the case for more than two years but never met Slim, dismissed the difference in financial clout between Americatel and the Slim empire.
Now the dispute is riding on both Moreno's final ruling and what happens in court in El Salvador.
''Sometimes what happens is the parties end up getting the worst of both worlds,'' said Keith S. Rosenn, a law professor at the University of Miami. ``They have to litigate and arbitrate.''
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