Saudi telecom operators agree annual royalty fees

Telecommunications operators Saudi Telecom Co (STC), Etihad Etisalat (Mobily) and Zain Saudi Arabia said on Sunday that they had agreed with the government to a change in the calculation of their annual royalty fees.

The companies also said they had reached a deal with the government to settle disputed fees to be paid for previous years up to 2017. In return, the trio agreed to invest in upgrading their network infrastructure over the next three years.

The kingdom has set specific goals to boost high-speed broadband internet connectivity as part of its Vision 2030 plan to modernise the economy, including exceeding 90 percent of housing coverage in densely populated cities and 66 percent in other urban areas.

The operators said the agreement will involve an annual royalty of 10 percent of net revenue from telecommunications services starting from Jan. 1, 2018. Mobily said in addition it would also pay an annual licence royalty equal to 1 percent of its annual net telecommunication revenues.

STC said the new calculation was compared to the previous fee of 15 percent of net revenues from mobile services, 10 percent of net revenues from fixed line services and 8 percent of net revenues from data services.

STC said the change would have a positive impact on its financial results during the fourth quarter of 2018, while Zain Saudi said it would mean a drop in its payment for the period Jan. 1 to Sept. 30 by 220 million riyals ($58.7 million).

Mobily said that starting from 2019 onwards, the impact represents an additional cost estimated to be in the range of 450 to 600 million riyals per year over the next few years.

Zain Saudi Arabia said the expected financial impact from the settlement of its disputed annual royalty fees for the period 2009 to 2017 is expected to reach 1.7 billion riyals.

Mobily said its agreement to invest over the next three years would enable it to boost the quality of its fixed and mobile networks and to invest in the deployment of new technologies such as 5G.

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NEW DELHI: Universal Service Obligation Fund (USOF), a telecom department's wing has blamed the state-owned telco Bharat Sanchar Nigam Limited's (BSNL) implementation partner Vihaan Networks Limited (VNL) for using substandard technology in a government-aided Northeast telecom connectivity initiative, a charge which is though denied by the Gurgaon-based firm.

"Anything in the name of home-made technology should not be deployed in a government project unless it meets international standa ..

Read more at:
//economictimes.indiatimes.com/articleshow/67103008.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

NEW DELHI: Universal Service Obligation Fund (USOF), a telecom department's wing has blamed the state-owned telco Bharat Sanchar Nigam Limited's (BSNL) implementation partner Vihaan Networks Limited (VNL) for using substandard technology in a government-aided Northeast telecom connectivity initiative, a charge which is though denied by the Gurgaon-based firm.

"Anything in the name of home-made technology should not be deployed in a government project unless it meets international standa ..

Read more at:
//economictimes.indiatimes.com/articleshow/67103008.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Qualcomm explains why we should be excited about 5G

5G open for business

Previous generations of mobile networks addressed consumers predominantly for voice and SMS in 2G, web browsing in 3G, and higher-speed data and video streaming in 4G. The transition from 4G to 5G will serve both consumers and multiple industries.

With global mobile data traffic expected to grow eight times by the end of 2023, there is a need for a more efficient technology, higher data rates and spectrum utilization. New applications such as 4K/8K video streaming, virtual and augmented reality and emerging industrial use cases will also require higher bandwidth, greater capacity, security, and lower latency. Equipped with these capabilities, 5G will bring new opportunities for people, society, and businesses.
Ericsson and partners have been working with 5G technology for several years in the labs, and last two years we took these technologies into advanced field trials. We have also signed first 5G commercial deals.
The 5G standardization has been accelerated with first 5G New Radio (NR) standard finalized in Dec 2017 and completed in June 2018. First commercial 5G networks and devices based on the 3GPP standards are expected in 2018. The first very few 5G devices will likely be introduced towards the end of 2018. Ericsson estimates the number of subscriptions reaching one billion by the end of 2023.

Best to avoid answering call of Chinese telecom

HONG KONG: The call of Chinese telecom operators is best left unanswered. China Mobile , Unicom and Telecom are cheaply valued and somewhat insulated from U.S. tariffs. A costly rollout of 5G, though, could offset those benefits.

All three carriers offer plenty to like. China Unicom's net profit has more than doubled in the year to September, thanks in part to a nearly 1.5 billion yuan ($212 million) gain from the flotation in August of China Tower. China Mobile's bottom line grew a little over 3 percent rise over the same span. China Telecom, meanwhile, reported on Monday that earnings rose almost 3 percent. The operators' shares have mostly performed well, especially those of the $40 billion China Telecom. Its Hong Kong-listed stock is up some 3 percent this year, even as the benchmark Hang Seng Index has slumped 17 percent.

Yet valuations have been beaten down. China Mobile's enterprise value, for example, trades at only about three times trailing EBITDA, according to Refinitiv. U.S. counterparts Verizon and T-Mobile fetch a multiple more than twice as high. The intensifying trade war between the United States and China could help; the trio of companies from the People's Republic should be less affected because they are less exposed to U.S. inputs than the likes of Huawei and ZTE ,. There are also persistent media reports that China Mobile's two smaller rivals could merge, thus reducing competition.

Plenty of serious hang-ups exist, though. For starters, the latest results were flattered by China Tower's initial public offering. All three operators own stakes that generated one-off paper gains. There's also the steady drip of regulation eating into profit.

Such official meddling also points to the biggest concern: an impending buildout of the ultra-fast 5G network. China Mobile, Telecom and Unicom are at a nadir in the industry's capital expenditure cycle. It will start to rise again next year, as they shell out for pricey kit on a project that may cost 1.5 trillion yuan ($215 billion), according to consultancy EY. That probably limits the upside to stock prices until around 2020, Bernstein analysts reckon. Until the expense becomes clearer, it's probably best to put Chinese telcos on hold.

On Twitter https://twitter.com/cbeddor

CONTEXT NEWS

- China Telecom Corp said on Oct. 29 that profit attributable to equity holders rose 2.7 percent in the first nine months of 2018 to 19 billion yuan ($2.7 billion), compared to the same period a year earlier.

- China Mobile, the biggest of the country's three carriers, reported on Oct. 22 that earnings rose 3.1 percent during the same period to 95 billion yuan, while China Unicom Hong Kong reported a 117 percent increase to 8.8 billion yuan.

The elite of global telecoms is finally revealed

The shortlist for the Global Telecoms Awards 2018 has been unveiled, identifying the companies, products and initiatives that have defined the industry over the past year.
68 operators, vendors, service providers and consultancies will now be put in from of the panel of independent judges, which will have the agonizing task of picking 14 winners from this exceptional group. The award categories span the full range of all the topics that matter in global telecoms, from 5G to IoT to security. A veritable brain-dump of telecoms buzzwords.
“I’m really looking forward to announcing the winners at the awards dinner in November,” said Telecoms.com Editor Scott Bicheno. “If the event is anything like last year it will be a great night and the venue had better make sure it’s got plenty of champagne in reserve.” Joining him on stage, this year’s celebrity host will be Russel Kane, who is hilarious.
To find out if you’re one of the lucky entries shortlisted for the 2018 Glotel Awards, or even if you’re just curious to see who is rising to the top in your industry, you can read the full list here. #GlotelAwards

Increase in break-up borrowing following divorce or separation

According to conveyancing service provider, LMS, the proportion of borrowers remortgaging following a divorce or separation increased to 5% in May. This ‘breakup borrowing’ is up 3% from the previous month and up 2% on the same period last year.
As well as people refinancing to remove an ex-partner from their mortgage, the figures also include borrowers who need to raise funds to cover divorce settlements.
Remortgaging to pay off debts has also risen from 13% in April to 16% in May, while 26% of borrowers remortgaged to fund home improvements.
Commenting on the findings, Nick Chadbourne, chief executive of LMS, said: “While most borrowers remortgage to switch deals or save money, we have seen an increase in remortgaging for different reasons this month, including homeowners remortgaging due to divorce or to pay off debts.
“As divorce becomes simpler through innovations such as the government’s new online divorce system, so too is remortgaging. This may well be contributing to the use of remortgaging as a vehicle to raise fund for divorce settlements.
“In almost all cases customers are looking for an efficient process that delivers against both speed and value. A fees-assisted remortgage is the most appropriate vehicle, developed and refined for this process, it offers both customers and lenders great value and an efficient legal platform to make the switch.”
The most common reason for borrowers to remortgage is reaching the end of a fixed rate deal (63%) with demand for five-year fixed rate remortgages increasing year-on-year (up from 34% in May in 2017 to 42% in May 2018). However, in April 2018, five-year fixed mortgages made up 47% of the market, so there has been a decline month-on-month.
Nick Chadbourne added: “Demand for five-year fixed rate remortgages remains historically high as borrowers look to protect themselves from a potential base rate increase later in the year. While the popularity of five-year deals has dipped slightly month-on-month, they continue to dominate the market as borrowers lock in current rates for the long-term.
“Lenders are operating in a competitive landscape, given the volume of different five-year fixed rate products available. Borrowers may wish to consult a broker to ensure they get the best deal to suit individual requirements.”
Overall, equity released through remortgaging is at the highest level in ten months. At the same time, the gap between the average remortgage advance and the average redemption value of the original mortgage has widened.
Nick Chadbourne said: “The increase in the gap between mortgage advances and redemptions illustrates more borrowers are remortgaging to increase the size of their loans compared to previous months.”

Oppo’s former VP Sky Li resigns to form new technology brand Realme

NEW DELHI: Sky Li, former vice president of Oppo and head of Oppo's overseas business has officially resigned from Oppo and founded a new technology brand Realme. Li, who also previously served Oppo India as the country head has now joined as global CEO for Realme which started off as a sub-brand of Oppo.

In a letter to the Realme employees, Li introduced the new brand Realme while mentioning that the idea of creating the brand was born at the end of the last year. Realme is doing something similar to what Peter Lau did when he left Oppo and registered OnePlus.

Realme founder Sky Li led Oppo to grow in 3 markets to one that covers 31 countries and regions including Southeast Asia, South Asia, Middle East, Africa and Oceania, Realme mentioned in a release on Monday.

“Before leaving Oppo officially, I've been in charge of OPPO's global overseas market during these past few years, leading OPPO to grow from the business available in 3 markets to one that covers 31 countries and regions. The overwhelming response and trust from the young generation is something that has encouraged me to launch the new brand Realme,” Li wrote in the letter.

As reported by ET earlier, Realme is focusing on Rs 10000-20000 price range with its products for the India market. The brand has gained over 1% share in the second quarter with one month’s sales in India, as per Counterpoint Research.

The new online brand which is currently sharing production lines with Oppo in India is adopting “India-first approach” in a bid to garner a lion’s share in the country’s online channel, as part of which it will launch all new devices in India first before introducing it to any other global market.

On a casual note, Li wrote “I still remember the time during Diwali festival last year. I was dressed in a traditional costume to celebrate the festival along with our local colleagues.”

Airtel manages to hold on in the face of Jio's onslaught

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Microsoft continues Nadella’s quest for conversational AI

t is a strategy which we have been hearing a lot about over the last couple of months, and the inclusion of Semantic Machines adds further ammunition to the Microsoft AI garrison.
This acquisition is a perfect example of where CEO Satya Nadella wants to take the Microsoft business. When Nadella inherited the Microsoft throne, the business was in a trough, relying on a decaying legacy business while carelessly investing to chase segments which had already boomed. The Nadella strategy was to get out in front of the crowd with a heavy emphasis on cloud computing in the early days, and now a more acute focus on artificial intelligence. Semantic Machines builds on this vision.
“We are excited to announce today that we have acquired Semantic Machines Inc., a Berkeley, California-based company that has developed a revolutionary new approach to building conversational AI,” said David Ku, CTO of Microsoft AI & Research. “Their work uses the power of machine learning to enable users to discover, access and interact with information and services in a much more natural way, and with significantly less effort.”
The idea of conversational AI is a simple one. Take AI interactions from limited and specific questions to conversation based outcomes. With more of a focus on conversational AI, offerings like Cortana, the Azure Bot Service and Microsoft Cognitive Services will be able to become more intuitive, taking actions based on context and more nuanced enquiries. It becomes a much more natural interaction and will ultimately drive the normalization of the technology.
This is where the Semantic Machines acquisition could prove to be a valuable one, as it builds on the Microsoft mission statement. The objective of Semantic Machines is to develop a ‘new, language-independent technology platform that goes beyond understanding commands to understanding conversations’. While this does sound like a blue-sky ambition, the task is separated into several areas including extracting semantic intent from interactions, deep-learning models to enhance the concept of context, speech recognition, speech synthesis and reinforcement learning.
The conversational AI strategy does look like it is becoming a useful one for the Microsoft team, especially in the telco space, where operators are trying to reverse years of negative customer service experience. While it is not reasonable to assume 100% of customers would welcome virtual customer service agents, progress with conversational AI will make the virtual agents more intuitive, broadening acceptance, while also making them more useful.
TIM is one telco which has grasped onto the Microsoft AI experience for its customer services, and we suspect it won’t be the last. For industries which have traditionally struggled in the customer services space, the telcos being top of this list, Microsoft’s conversational AI department is certainly one to keep an eye on.