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<strong>ITU</strong> <strong>Secretary</strong> <strong>General</strong><br />

Dr. Hamadoun Toure<br />

speaks on ITRs & Future of ICTs<br />

December 2012<br />

www.teletimesinternational.com


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Business PIONEER LOGO.pdf 15-Mar-10 11:55:01 AM<br />

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A PROJECT OF PPA PUBLICATIONS


In this edition<br />

Interviews<br />

13<br />

<strong>ITU</strong> <strong>Secretary</strong> <strong>General</strong> speaks on ITRs<br />

& Future of ICTs<br />

Khalid Athar<br />

19<br />

29<br />

“We are ‘the mobile satellite operator’ used in<br />

most countries on the planet”<br />

Drew Brandy ,VP, Industry Enterprise - inmarsat<br />

Gulraiz Khalid<br />

The main purpose of State Foundation is<br />

Involvement of investments ...<br />

Dr. Ali Abbasov - Minister of Communications & IT,<br />

Republic of Azerbaijan<br />

Research & Analyses<br />

21<br />

23<br />

33<br />

41<br />

48<br />

Articles<br />

39<br />

61<br />

Purchase mobile computers wisely<br />

not to lose productivity<br />

Jerker Hellstrom<br />

Catching the Smart Home Opportunity<br />

Dr. Karim Taga, Didier Levy, Omar Saadoun<br />

and Lars Riegel (Arthur D. Little)<br />

The new reality of cyber war<br />

James P. Farwell & Rafal Rohozinski<br />

The Global ICT 50:<br />

The Supply Side of Digitization<br />

Olaf Acker, Florian Gröne, Germar Schröder<br />

Booz&Co.<br />

Europe should choose future-proof broadband<br />

NOW!<br />

Karin Ahl<br />

Special Reports<br />

09 WCIT - What happened for the revision of<br />

International Telecom Regulations?<br />

16<br />

International Conference on new approaches<br />

in Electronics communication and information<br />

technologies<br />

Yasemin Saygi<br />

Branding in ICT and telecom sector<br />

Hanan Rafique Dahar<br />

How technology can enable a Literate Pakistan<br />

in 24 months - A self experience<br />

Rehan Allahwala<br />

09 09<br />

58<br />

59<br />

04 December 2012<br />

www.teletimesinternational.com


In this edition<br />

16<br />

37<br />

Reports & News<br />

29<br />

19<br />

56<br />

28<br />

37<br />

49<br />

50<br />

51<br />

53<br />

54<br />

55<br />

56<br />

57<br />

57<br />

58<br />

59<br />

21st Convergence India 2013 Expo - Enriching a billion lives<br />

Pawan Dixit<br />

Mobilink to invest USD 1 billion to enhance nationwide mobile network<br />

du launches in-house contest at the UAE’s 41st National Day<br />

Frost & Sulivan: Regulatory compliance to be one of the key drivers ...<br />

Deepshri Iyer<br />

Huawei: Customer experience -<br />

The future benchmarking in Telecom innovation<br />

Comguard unveils irresistible bundle offer<br />

Gulraiz Khalid<br />

Etisalat accompanies media representatives to visit Huawei in China<br />

Nawras installs high speed enterprise connectivity at GUtech campus in Halban<br />

Julie Amann<br />

PCCW Teleservices receives 5 contact center awards<br />

Ivan Ho<br />

Thuraya recognized as the Satellite Communications Player of the Year award<br />

Mini Sree Narayanan<br />

Making copies of data – Better media options<br />

Khawar Nehal<br />

PTCL celebrates 41st National Day of UAE<br />

Aqeel Shigri<br />

ZONG and Huawei establish state-of-the-art GSM laboratory at NUST<br />

and much more ....<br />

December 2012<br />

www.teletimesinternational.com<br />

05


Media partner:<br />

Online partner:


Letter to readers<br />

Khalid Athar<br />

Chief Editor<br />

Dear Reader,<br />

Welcome to the December edition of<br />

<strong>Teletimes</strong> International.<br />

The Emirate of Dubai, UAE hosted one of<br />

the most significant telecommunication<br />

events connected with future shape of the<br />

International telecommunication regulations.<br />

World Conference on International<br />

Telecommunications (WCIT) conveyed<br />

by <strong>ITU</strong> in Dubai hosted some intense two<br />

weeks of late night deliberations between<br />

Governments of <strong>ITU</strong>’s member states.<br />

<strong>Teletimes</strong> International was covering<br />

this important conference over the<br />

past four months in the form of articles,<br />

news and available information of the<br />

proposed amendments and revisions in<br />

the ITR (International Telecommunication<br />

Regulations) document. In this edition, we<br />

are also featuring an exclusive Interview of<br />

Dr. Hamadoun I. Touré, <strong>Secretary</strong> <strong>General</strong><br />

of the <strong>ITU</strong> arranged just before the start of<br />

WCIT. A detailed conference summary is<br />

also available with this edition narrating the<br />

proceedings and outcomes of WCIT.<br />

It may be kept in mind that International<br />

Telecommunication Regulations have not<br />

been updated since 1988. Some of the most<br />

significant happenings at the WCIT were the<br />

presence of ICANN’s President and the CEO<br />

Fadi Chehadé, approval of a resolution aimed<br />

at fast-tracking connectivity for Land Locked<br />

Developing Countries (LLDCs) and Small<br />

Island Developing States (SIDSs) and global<br />

agreement on the need for the next phase of<br />

ICT development to prioritize environmental<br />

sustainability.<br />

The second week of the event brought<br />

some high observance of uncertainty<br />

and disagreement on the issue of<br />

including ‘Internet’ as a part of revised<br />

International regulations. Most countries<br />

at the conference agreed that a United<br />

Nations agency should play an active but<br />

not dominant role in Internet governance.<br />

Delegates from United States, United<br />

Kingdom, Canada and Australia refused to<br />

sign the document.<br />

This month we are also featuring interview<br />

of his Excellency, Prof. Dr. Ali Abbasov,<br />

Minister of Communications and Information<br />

Technologies, Republic of Azerbaijan. Mr.<br />

Drew Brandy, Vice President - Industry<br />

Enterprise at inmarsat is also presented in<br />

this edition in an exclusive interview held<br />

recently.<br />

Our research and analyses section for this<br />

month brings ‘The Global 50: the supply side<br />

of digitization’ ,‘Purchase mobile computers<br />

wisely’, ‘Branding in ICT & Telecom’, ‘Europe<br />

should choose future proof broadband<br />

now’ and a post conference summary<br />

on ‘International conference on new<br />

approaches in electronic communication’<br />

by our correspondent at Istanbul. We are<br />

also brining a conclusive report model for<br />

telecom operators to catch the smart home<br />

opportunities prepared by Arthur D. Little.<br />

This month’s online survey inquired the<br />

respondents to tell us If they believe that<br />

‘Government control inhibit the growth of<br />

Internet innovation?’ results show that 45%<br />

of the respondent were of the view that<br />

Government control does restrict innovation<br />

over the Internet while the rest said it<br />

doesn’t. Readers will also enjoy latest news<br />

and reports from Thuraya, Nokia, PTCL,<br />

Comguard, PCCW, Huawei, Etisalat, Nawras,<br />

Zong and VimpelCom. As a regular feature,<br />

the edition also present “Teletoons” and<br />

upcoming events calendar for Global ICT and<br />

Telecom events.<br />

We would look forward to receive your<br />

comments and suggestions to assist<br />

us in bringing more value to <strong>Teletimes</strong><br />

International.<br />

Wish you a very happy and prosperous 2013!<br />

Enjoy Your Reading.<br />

December 2012<br />

www.teletimesinternational.com<br />

07


WCIT –<br />

What happened for the revision of International<br />

Telecommunication Regulations?<br />

<strong>Teletimes</strong> Special Report<br />

The last month of the year<br />

2012 brought together decision<br />

makers from around the world<br />

in Dubai for the World Conference<br />

on International Telecommunications,<br />

or WCIT. The<br />

conference held an inimitable<br />

importance to renegotiate the<br />

International Telecommunication<br />

Regulations (ITRs) that was<br />

agreed upon in 1988 to promote<br />

global interconnectivity and<br />

interoperability of telecommunication<br />

facilities and availability<br />

of services to the public. WCIT<br />

2012 welcomed almost 1600 delegates<br />

from 151 Member States,<br />

including almost 70 ministers,<br />

deputy ministers and ambassadors.<br />

<strong>ITU</strong>’s member states<br />

were invited to revise and set a<br />

future treaty for International<br />

Telecommunications, a total of<br />

1275 proposals were submitted<br />

by Member States during the<br />

proceedings. The event hosted 2<br />

weeks of intense, long and late<br />

night deliberations between<br />

Government representatives,<br />

concluded with 89 of the<br />

participating states signing the<br />

updated international telecommunications<br />

treaty. 55 of the<br />

144 participating economies<br />

reserved their rights to sign at<br />

a later stage or refused to sign<br />

the treaty.<br />

A number of high ranking officials<br />

and dignitaries attended<br />

the conference, including<br />

Mohamed Nasser Al-Ghanim,<br />

Director-<strong>General</strong> of the UAE<br />

Dr. Hamadoun Touré<br />

Telecommunications Regulatory<br />

Authority and Chairman of<br />

the Conference; Fadi Chehadé,<br />

President and CEO of the Internet<br />

Corporation for Assigned<br />

Muhamed Nasser Al-Ghanim<br />

Names and Numbers (ICANN);<br />

and <strong>ITU</strong> <strong>Secretary</strong>-<strong>General</strong>, Dr.<br />

Hamadoun I. Touré. UN <strong>Secretary</strong>-<strong>General</strong><br />

Ban Ki-moon in his<br />

opening remarks thanked UAE<br />

December 2012<br />

www.teletimesinternational.com<br />

09


for hosting WCIT and stressed<br />

that the conference is focused<br />

to facilitate in providing a multilateral,<br />

bottom-up stakeholder<br />

approach while reviewing the<br />

agreements.<br />

Over the past several months,<br />

the babble surrounding WCIT<br />

had been nothing short of fear.<br />

Public advocacy groups like the<br />

Electronic Frontier Foundation<br />

and other organizations issued<br />

several warnings that WCIT<br />

could be the end of the Internet<br />

world as we know it. The largest<br />

scaremongering came by<br />

Google through campaigns<br />

organized; Google had been the<br />

leader of a conspiracy theory<br />

posted before WCIT stating that<br />

ITR process is primarily focused<br />

to take over governance of the<br />

Internet and supply to member<br />

states a power to censor and<br />

filter Internet content. Though<br />

at the later part of these campaigns,<br />

some analyst concluded<br />

them to be ill-informed and selfserving.<br />

An analysis posted in<br />

the Huffington Post argued that<br />

Google’s real motivation behind<br />

its WCIT campaign revolved<br />

around shared payment system<br />

among service providers, it may<br />

be noted that presently the<br />

requesting operator pays the<br />

sending operator for requested<br />

content. Mr. Nothias in his post<br />

concluded that, under such a<br />

system, Google “would be unable<br />

to continue using freely the<br />

worldwide infrastructure network<br />

for which it did not spend<br />

a penny.” As recognition to calls<br />

for greater transparency, <strong>ITU</strong><br />

kept the sessions of the review<br />

committee and plenary meetings<br />

opened to the public.<br />

It was heartening and appropriate<br />

that the first Resolution to<br />

be approved during the WCIT-12<br />

was all about connecting those<br />

who are still not connected.<br />

It was a Resolution aimed at<br />

fast-tracking connectivity for<br />

Landlocked Developing Countries<br />

(LLDCs) and Small Island<br />

Developing States (SIDSS). The<br />

agreed resolution reaffirms<br />

the right of access for landlocked<br />

countries to the sea and<br />

freedom of passage through<br />

the territory of transit countries<br />

by all means of transport, in accordance<br />

with applicable rules<br />

of international law.<br />

During the first week, <strong>ITU</strong> member<br />

states also approved a new<br />

<strong>ITU</strong> standard on Deep Packet<br />

Inspection (DPI) that will enable<br />

Internet Service Providers (ISPs)<br />

to manage network traffic more<br />

efficiently and thereby ensuring<br />

users’ quality of service<br />

and experience. The standard<br />

‘<strong>ITU</strong>-T Y.2770, Requirements for<br />

Deep Packet Inspection in Next<br />

Generation Networks’, is an<br />

outcome of <strong>ITU</strong>-T Study Group<br />

13 approved by WTSA.<br />

The first week of WCIT did had<br />

few grim moments but a very<br />

little indication as what the final<br />

document will actually look like<br />

and who will sign the new treaty<br />

on the last day.<br />

A major difference was<br />

observed among the member<br />

states on the buzz word of<br />

the ‘Internet’. For example,<br />

the proposed revisions asked<br />

the Members States to ensure<br />

that administrations/operating<br />

agencies cooperate within<br />

the framework of ITRs to<br />

provide by mutual agreement,<br />

a wide range of international<br />

telecommunication services<br />

including services for carrying<br />

Internet traffic and data<br />

transmission. They also asked<br />

Members States shall ensure<br />

As recognition to calls for greater<br />

transparency, <strong>ITU</strong> kept the sessions<br />

of the review committee and plenary<br />

meetings opened to the public.<br />

that operating agencies provide<br />

and maintain a minimum<br />

an agreed quality of service<br />

with respect to access to the<br />

international network by users<br />

using terminals which are<br />

permitted to be connected<br />

to the network and which do<br />

not cause harm to technical<br />

facilities and personnel; harm<br />

to technical facilities and<br />

personnel shall be construed<br />

to include spam, malware, etc.<br />

as defined in relevant <strong>ITU</strong>-T<br />

Recommendations (as the case<br />

may be), as well as malicious<br />

code transmitted by any<br />

telecommunication facility or<br />

technology, including Internet<br />

and Internet Protocol. Draft<br />

Article 4 also asked Member<br />

States to take measures to<br />

ensure Internet stability and<br />

security, to fight [cybercrime]<br />

and to counter spam, while<br />

protecting and respecting<br />

the provisions for privacy and<br />

freedom of expression as<br />

contained in the relevant parts<br />

of the Universal Declaration of<br />

Human Rights.<br />

During initial deliberations, United<br />

States and some countries<br />

from European region called for<br />

keeping ‘Internet’ and its governance<br />

out of revised treaty,<br />

while others—like Russia, China,<br />

and Saudi Arabia pushed to<br />

include clauses addressing Internet.<br />

However, a far more conciliatory<br />

approach was adopted by<br />

majority of the delegates by the<br />

end of first week.<br />

Week two started with an<br />

agreement to adopt three new<br />

proposed Regulations in Article<br />

5 of the ITR’s recognizing the<br />

absolute priority for safety<br />

of life telecommunications,<br />

including distress telecommunications,<br />

emergency telecommunications<br />

services and telecommunications<br />

for disaster relief.<br />

A new provision was also approved<br />

on “Energy Efficiency/<br />

e-Waste” encouraging Member<br />

States to adopt energy efficiency<br />

and e-waste best practices,<br />

taking into account relevant<br />

<strong>ITU</strong>-T recommendations. A new<br />

provision on “Accessibility” was<br />

also approved calling on Member<br />

States to promote access<br />

for persons with disabilities to<br />

international telecommunication<br />

services taking into account<br />

relevant <strong>ITU</strong>-T recommendations.<br />

During the mid time of week<br />

two proceedings, WCIT ap-<br />

10 December 2012<br />

www.teletimesinternational.com


proved new provisions on mobile<br />

“roaming” that intended to<br />

ensure transparency of end-user<br />

prices for international mobile<br />

services, allowing users to receive<br />

full information promptly<br />

whenever they cross a border.<br />

Another resolution passed<br />

during this time recognizing the<br />

Internet as a central element of<br />

the infrastructure of the information<br />

society, saying that it<br />

has evolved from a research and<br />

academic facility into a global<br />

facility available to the public.<br />

The resolution also recognizes<br />

the importance of broadband<br />

capacity to facilitate the delivery<br />

of a broader range of services<br />

and applications, promote investment<br />

and provide Internet<br />

access at affordable prices to<br />

both existing and new users.<br />

As the conference entered into<br />

its last two days, the key issue<br />

of whether the new treaty text<br />

will include the Internet was<br />

yet to be resolved. The United<br />

States and a number of allies opposition<br />

expanded on, whereas<br />

Russia and others supported it.<br />

The conference also witnessed<br />

locked clauses number 3.7 and<br />

3.8, and coffee wasn’t helping<br />

the opposing sides reach any<br />

kind of consensus.<br />

U.S. Ambassador Terry Kramer<br />

tweeted that work would<br />

continue around the clock, but<br />

added: “The U.S. remains committed<br />

to keeping the Internet<br />

out of the ITRs (treaty).”<br />

The later part of the day claimed<br />

some consensus on these issues<br />

but it seemed clear that even<br />

a compromise is not possible<br />

from US, Canada, and the UK<br />

side. The day ended with<br />

representatives from countries<br />

from Denmark to New Zealand<br />

consulting home offices to determine<br />

their signing status.<br />

The last day of WCIT brought<br />

approval of provision addressing<br />

security and robustness of<br />

networks, the approved provision<br />

states: “Member States<br />

shall individually and collectively<br />

endeavor to ensure the security<br />

and robustness of international<br />

telecommunication networks in<br />

order to achieve effective use<br />

thereof and avoidance of technical<br />

harm thereto, as well as the<br />

harmonious development of international<br />

telecommunication<br />

services offered to the public.”<br />

The hot debated issue of<br />

recognized operating agencies<br />

(ROAs) versus operating agencies<br />

(OAs) was also resolved on<br />

the last day under Article 1 dealing<br />

with the purpose and scope<br />

of the treaty. In this article, “authorized<br />

operating agencies”<br />

now refer to those operating<br />

agencies, authorized or recognized<br />

by a Member State, to<br />

establish, operate and engage<br />

in international telecommunication<br />

services to the public.<br />

The last few hours of WCIT<br />

brought more uncertainty; the<br />

puzzle word of ‘Internet’ made<br />

Australia to join the US, Canada<br />

and the UK in refusing to sign<br />

the proposed international telecommunications<br />

treaty.<br />

The United States ambassador<br />

to WCIT, Terry Kramer, said<br />

The hot debated issue of<br />

recognized operating agencies<br />

(ROAs) versus operating agencies<br />

(OAs) was resolved on the last day.<br />

“The US cannot sign revised<br />

telecommunications regulations<br />

in their current form,” he said.<br />

“ITRs should be a high-level<br />

document, and the scope of<br />

treaty does not extend to the<br />

internet.”<br />

Negotiators from Denmark, Italy,<br />

the Czech Republic, Sweden,<br />

Greece, Portugal, Finland, Chile,<br />

the Netherlands, New Zealand,<br />

Costa Rica and Kenya also said<br />

that they would need to consult<br />

with their national governments<br />

about how to proceed and<br />

would also not be able to sign<br />

the treaty at present.<br />

WCIT concluded in Dubai with<br />

89 countries having signed the<br />

updated International Telecommunication<br />

Regulations. Those<br />

who signed include China,<br />

Oman, Bahrain, Qatar, Singapore,<br />

Malaysia, Egypt, Kuwait,<br />

Saudi Arabia, UAE, South Africa,<br />

Brazil and Turkey.<br />

In a post conference, the <strong>ITU</strong><br />

noted that while one of the<br />

treaty’s appendices does say<br />

that “all governments should<br />

have an equal role and responsibility<br />

for international internet<br />

governance,” this text was<br />

non-binding and should not be<br />

viewed as part of the agreement’s<br />

formal regulations. Another<br />

provision states that the<br />

ITRs do not address contentrelated<br />

telecommunications.<br />

<strong>ITU</strong> <strong>Secretary</strong>-<strong>General</strong>, Dr.<br />

Hamadoun I. Touré said that<br />

the drafting of the text for the<br />

newly revised International<br />

Telecommunication Regulations<br />

treaty contains many gains and<br />

achievements including increased<br />

transparency in international<br />

mobile roaming charges<br />

and competition, an extremely<br />

important win for consumers.<br />

He further said that this conference<br />

was not about governing<br />

the Internet. I repeat that the<br />

conference did not include<br />

provisions on the Internet in<br />

the treaty text. Annexed to the<br />

treaty is a non-binding Resolution<br />

which aims at fostering the<br />

development and growth of the<br />

Internet – a task that <strong>ITU</strong> has<br />

contributed significantly to since<br />

the beginning of the Internet<br />

era, and a task that is central to<br />

the <strong>ITU</strong>’s mandate to connect<br />

the world, a world that today<br />

still has two thirds of its population<br />

without Internet access.<br />

History will show that WCIT has<br />

achieved something extremely<br />

important. It has succeeded in<br />

bringing unprecedented public<br />

attention to the different and<br />

important perspectives that<br />

govern global communications.<br />

There is not one single<br />

world view but several,<br />

and these views need to be<br />

accommodated and engaged.<br />

December 2012<br />

www.teletimesinternational.com<br />

11


Interview: Khalid Athar<br />

<strong>ITU</strong> secretary <strong>General</strong> speaks to <strong>Teletimes</strong><br />

on ITRs & Future of ICTs<br />

December 2012<br />

Dr. Hamadoun Touré<br />

www.teletimesinternational.com<br />

13


<strong>Teletimes</strong> - How has been your<br />

experience as <strong>Secretary</strong>-<strong>General</strong><br />

of <strong>ITU</strong>, given the vast set of<br />

responsibilities and challenges<br />

in supporting the Union and its<br />

members?<br />

Dr. Hamadoun Touré - It is six<br />

years since I was first elected as<br />

<strong>ITU</strong> <strong>Secretary</strong>-<strong>General</strong>. In that<br />

short space of time, the landscape<br />

of telecommunications<br />

and information and communication<br />

technologies (ICTs) has<br />

continued to change dramatically.<br />

Every shift and new advance<br />

brings new challenges for <strong>ITU</strong>’s<br />

membership, and for the world<br />

as a whole. But I am pleased to<br />

say that <strong>ITU</strong>’s dedicated staff<br />

has been more than able to<br />

meet these challenges, offering<br />

an expert, neutral space where<br />

crucial issues can be examined,<br />

while dealing with the core matters<br />

that are the responsibility<br />

of <strong>ITU</strong>.<br />

With my re-election as <strong>Secretary</strong>-<br />

<strong>General</strong> in 2010, I renewed my<br />

determination to lead the organization<br />

forward in engaging our<br />

membership and providing what<br />

they need, using <strong>ITU</strong>’s central<br />

position in the area of telecommunications<br />

and ICTs to give a<br />

timely response to emerging<br />

issues.<br />

TT - How would you rate the<br />

success of recently concluded<br />

<strong>ITU</strong> World Telecom 2012 conference<br />

with the theme of shaping<br />

the global ICT future?<br />

HT - <strong>ITU</strong> Telecom World is going<br />

from strength to strength as<br />

a venue for high-level leaders<br />

of industry and government to<br />

network and share their knowledge.<br />

I am delighted to say that<br />

our 2012 event, held in Dubai,<br />

UAE, 14-18 October, was a great<br />

success.<br />

We heard visionary keynote addresses<br />

from such figures as Eugene<br />

Kaspersky, CEO of Kaspersky<br />

Lab, and, with the BBC and<br />

Telecom TV, we took part in<br />

what were called ‘Big Conversations’<br />

on the central topics of<br />

online privacy and the role of socalled<br />

‘OTT’ players. Participants<br />

joined in from all parts of world,<br />

online and through social media.<br />

In Dubai itself, we welcomed<br />

delegates from across the globe<br />

and examined a wide range of<br />

themes. Such bringing together<br />

of diversity is, I believe, the great<br />

strength of <strong>ITU</strong> Telecom World.<br />

Through coming together we<br />

become a powerful force in<br />

shaping the future of ICTs.<br />

“We need<br />

to focus on<br />

communicating<br />

<strong>ITU</strong>’s message to<br />

the wider world.”<br />

TT - The event hosted debates<br />

on the role of ICTs in emergency<br />

services as well as on nextgeneration<br />

mobile broadband<br />

networks. How do you see this<br />

transformative technology being<br />

used in future?<br />

HT - From my experience not<br />

only as <strong>ITU</strong> <strong>Secretary</strong>-<strong>General</strong>,<br />

but also previously as Director<br />

of <strong>ITU</strong>’s Telecommunications<br />

Development Bureau, I know<br />

that nothing is more important<br />

than harnessing ICTs to protect<br />

people’s lives and livelihoods,<br />

particularly as we enter a period<br />

of global climate change. This<br />

was the focus of the ‘Saving<br />

Lives Platform’ at <strong>ITU</strong> Telecom<br />

World 2012, where we launched<br />

two new initiatives that tap<br />

into the immense potential<br />

of mobile broadband. The ‘M-<br />

Powering Development’ project<br />

will be a catalyst to achieve<br />

sustainability while boosting<br />

economic growth. And <strong>ITU</strong>’s<br />

‘Smart Sustainable Development<br />

Model’ will show how linking ICT<br />

for Development (ICT4D) with<br />

ICT for Disaster Management<br />

(ICT4DM) can make best use of<br />

resources.<br />

It is clear that smart ICT solutions<br />

can create affordable<br />

models for the expansion of<br />

infrastructure and mitigation of<br />

climate-change effects, as well<br />

as for strengthening emergency<br />

telecommunications and disaster<br />

preparedness. I believe that<br />

these solutions are the answer<br />

to bringing vital services – and<br />

economic opportunities – to<br />

people everywhere. We must<br />

seize the chance to promote<br />

them, now that there are more<br />

than six billion mobile subscriptions<br />

worldwide, including a<br />

fast-rising number that are<br />

broadband. Mobile broadband is<br />

truly M-powering!<br />

TT - What is the most important<br />

and immediate undertaking for<br />

<strong>ITU</strong>’s management team?<br />

HT - There are so many important<br />

tasks it is difficult to specify<br />

just one! But I would say that, in<br />

addition to our core work, we<br />

need to focus on communicating<br />

<strong>ITU</strong>’s message to the wider<br />

world, while also continuing to<br />

encourage the engagement of<br />

diverse players in <strong>ITU</strong> activities.<br />

We are an innovative organization<br />

at the cutting edge of<br />

technological issues and developments,<br />

and that is something<br />

that the public needs to know<br />

better.<br />

Of course, the management<br />

team is also focused on the<br />

proceedings of the next big<br />

event on the horizon: the World<br />

Conference on International<br />

Telecommunications, or WCIT-<br />

12, taking place in Dubai 3-14<br />

December 2012.<br />

TT - How do you envisage revision<br />

of International Telecommunication<br />

Regulations (ITRs)?<br />

HT - WCIT-12 has the job of<br />

examining the International<br />

Telecommunication Regulations<br />

(ITRs), which were last defined<br />

way back in 1988. That’s almost<br />

ancient history, as far as the<br />

world of technology goes! Mobile<br />

phones were the size and<br />

weight of bricks at that time,<br />

and few people had them. The<br />

Internet was in its infancy.<br />

So what should be done with<br />

the ITRs that underpin international<br />

connectivity, including the<br />

networks that deliver Internet<br />

access? Stakeholders representing<br />

various interests have been<br />

suggesting a number of possibilities,<br />

from leaving the ITRs<br />

as they are, to rewriting them<br />

completely. We have consulted<br />

very widely on the issues, and<br />

received many contributions. All<br />

our Member States (and industry<br />

and civil society representatives<br />

among their delegations)<br />

will have an equal chance to participate<br />

in the debate at WCIT-12.<br />

It will then be for the conference<br />

to decide what happens.<br />

As the neutral convener of<br />

WCIT-12, we at <strong>ITU</strong> can only<br />

reiterate that we fully support<br />

the basic purpose of the ITRs: to<br />

facilitate international interconnection<br />

and interoperability so<br />

as to ensure the free flow of<br />

communications worldwide,<br />

accessible to all. WCIT-12 is a key<br />

opportunity to help countries<br />

reach new levels of economic<br />

and social development through<br />

efficient telecommunication<br />

services. It is vital that we grasp<br />

that opportunity.<br />

TT - With reference to revising<br />

the ITRs, there have been<br />

certain suggestions that <strong>ITU</strong> is<br />

seeking to take over the Internet.<br />

How do you respond?<br />

HT - I respond with disappointment<br />

and a degree of frustration!<br />

<strong>ITU</strong> has made great efforts<br />

to put out full and correct information<br />

about the issues that<br />

concern WCIT-12 and the ITRs.<br />

All that information is freely<br />

available at the <strong>ITU</strong> website<br />

(http://www.itu.int/en/wcit-12/<br />

Pages/default.aspx), where<br />

there is also a space for anyone<br />

to comment.<br />

<strong>ITU</strong> pioneered the multi-stake-<br />

14 December 2012<br />

www.teletimesinternational.com


holder approach to ICTs with the<br />

holding of the World Summit on<br />

the Information Society in 2003<br />

and 2005. That approach has<br />

not changed; in fact, it is more<br />

important than ever. I think that<br />

even the lobbyists behind suggestions<br />

about <strong>ITU</strong> managing<br />

the Internet have now admitted<br />

that the notion is nonsense. <strong>ITU</strong><br />

has neither the mandate nor the<br />

resources nor the desire to ‘take<br />

over’ the Internet.<br />

TT - <strong>ITU</strong> is giving a specific focus<br />

on ICTs and climate change.<br />

What are the key highlights of<br />

this initiative?<br />

HT - Climate change is perhaps<br />

the biggest challenge the world<br />

faces today, so of course we<br />

give it prominence at <strong>ITU</strong>. We<br />

know that ICTs are among the<br />

most powerful tools we have for<br />

mitigating the effects of climate<br />

change and reducing carbon<br />

emissions. They can save a lot<br />

more energy than they themselves<br />

consume, and communications<br />

are literally vital in the<br />

midst of natural disasters resulting<br />

from extreme weather.<br />

Many <strong>ITU</strong> activities are carried<br />

out within our focus on<br />

climate change. For example,<br />

we organize symposia and other<br />

events that gather together key<br />

specialists in the field, from top<br />

decision-makers to engineers,<br />

and from regulators to standards<br />

experts. The promotion of<br />

a ‘green’ ICT sector is our target,<br />

and already practical steps have<br />

resulted, such as the new Universal<br />

Power Adapter standard<br />

– meaning that only one adapter<br />

is needed for whole host of<br />

electronic devices. Not only will<br />

this help do away with some of<br />

the clutter we all experience, it<br />

has been estimated that it will<br />

save 300,000 tonnes of e-waste<br />

annually.<br />

<strong>ITU</strong>’s work concerning satellites<br />

plays an important part in monitoring<br />

the environment. In the<br />

sphere of telecommunication<br />

development we create toolkits<br />

and training programmes that<br />

can help countries most at risk<br />

of the results of climate change.<br />

As I mentioned before, this is<br />

all part of sustainable development,<br />

and I am very pleased that<br />

Rio+20 (the UN Conference on<br />

Sustainable Development) recognized<br />

in its output document<br />

that ICTs have a critical role in<br />

achieving this.<br />

TT - What are the key concerns<br />

at <strong>ITU</strong> with regards to global<br />

management of the radio-frequency<br />

spectrum and satellite<br />

orbits?<br />

HT - The hundreds of satellites<br />

that now circle Earth must be<br />

kept in safe orbits and at safe<br />

distances from each other; the<br />

limited natural resource of radiofrequency<br />

spectrum must be<br />

distributed fairly and efficiently.<br />

Helping to achieve these tasks<br />

is a fundamental role of <strong>ITU</strong>.<br />

Of course, there is competition<br />

among players that want to use<br />

these resources, especially given<br />

the very dramatic growth in mobile<br />

communications. This need<br />

must be met alongside those<br />

of broadcasting, other space<br />

services, and so on.<br />

Our job at <strong>ITU</strong> is to provide<br />

the place where issues can be<br />

resolved. We held our latest<br />

Radiocommunication Assembly<br />

and World Radiocommunication<br />

Conference in January and February<br />

this year. Together, they<br />

were a massive event, attended<br />

by hundreds of experts from<br />

around the globe. International<br />

agreements forged at these and<br />

other gatherings are the cooperative<br />

– and effective -- way to<br />

make progress.<br />

TT- What do you rate as the top<br />

ICT opportunity for policy makers,<br />

regulators and the industry?<br />

HT - As you know, <strong>ITU</strong> brings<br />

together governments and<br />

industry in its membership.<br />

Together they can form partnerships<br />

to generate the increased<br />

investment that is needed in<br />

the expansion of telecommunications<br />

and ICTs. As well as<br />

fair competition, cooperation<br />

among players that provide and<br />

use infrastructure will lead to a<br />

win-win situation for all. Quite<br />

simply, the demand is out there:<br />

we encourage all players to fulfill<br />

it, and further extend affordable<br />

access to all.<br />

TT - You have a focused<br />

audience among our readers,<br />

belonging in the telecommunications<br />

value chain. What would<br />

be your message to them?<br />

HT - For most people on the<br />

planet, telecommunications and<br />

ICTs are now an essential part of<br />

life. They are not just a means<br />

of communication, but also a<br />

source of information, entertainment,<br />

education and employment.<br />

But we are only just at the<br />

very beginning of this new era of<br />

unlimited possibilities.<br />

Everywhere I go I come across<br />

new – usually young – entrepreneurs<br />

who are creating new<br />

careers for themselves in ICTs,<br />

while serving their wider communities.<br />

Connectivity is key.<br />

We still must work hard to bring<br />

everyone into the information<br />

society, wherever they live and<br />

whatever their level of income,<br />

their gender or their abilities. By<br />

putting the power of ICTs into<br />

people’s hands, we will move<br />

forward to a brighter future. Social<br />

and economic development<br />

can germinate and flourish from<br />

the grassroots level, rather than<br />

relying on outside assistance.<br />

That is the special power of ICTs,<br />

and that is where I believe we<br />

all – and <strong>ITU</strong> in particular -- can<br />

make a difference.<br />

December 2012<br />

www.teletimesinternational.com<br />

15


International Conference<br />

on new approaches in Electronics<br />

communication and information technologies<br />

Yasemin Saygi<br />

<strong>Teletimes</strong> Correspondent<br />

at Istanbul<br />

The President and the<br />

Commission Members of the<br />

Information Technologies and<br />

Communication Authority<br />

and the representatives of<br />

the industry, Dr. Hamadoun<br />

Toure, the <strong>Secretary</strong><br />

<strong>General</strong> of International<br />

Telecommunication Union<br />

(<strong>ITU</strong>) met in the international<br />

conference arranged in<br />

Sarajevo University.<br />

An international conference<br />

titled “New Approaches in<br />

Electronics Communication and<br />

Information Technologies” was<br />

arranged in International Sarajevo<br />

University (IUS), founded<br />

by Turkish entrepreneurs. The<br />

event, sponsored essentially<br />

by Türksat, was attended by Information<br />

and Communication<br />

Technologies Authority’s (BTK)<br />

President Dr. Tayfun Acarer<br />

together with a delegation<br />

composing of the Authority<br />

members, civil society organizations,<br />

academicians and a lot<br />

of business representatives.<br />

The guests of the conference<br />

were including the <strong>Secretary</strong><br />

<strong>General</strong> of (International Telecommunication<br />

Union) <strong>ITU</strong>, Dr.<br />

Hamadoun Toure, the Turkish<br />

Ambassador of Sarajevo, Mr.<br />

Ahmet Yıldız, Bosnia-Herzegovina<br />

State Communication<br />

Authority (CRA) Director Dr.<br />

Kemal Huseynovich, IUS Rector<br />

Prof. Dr. Özer Çınar, Georgia<br />

(USA) Technology Institute<br />

President Prof. Dr. İlhan Fuat<br />

Akyıldız. Dr. Tayfun Acarer explained<br />

their aim for arranging<br />

such a conference as increasing<br />

the activity of Sarajevo<br />

University (founded by Turkish<br />

entrepreneurs) and other Turkish<br />

universities and emphasized<br />

that the conference also holds<br />

a great importance for the<br />

local academicians as well. Dr.<br />

Acarer, as pointing out the<br />

valuable profile composed by<br />

the participants, spoke as such:<br />

“The <strong>Secretary</strong> <strong>General</strong> of<br />

International Telecom Union<br />

(<strong>ITU</strong>) Hamadoun Toure was<br />

also one of the attenders of<br />

the conference. In our previous<br />

talk with him he had said<br />

that he wanted to attend and<br />

support this event in Sarajevo<br />

if he could find time. Although<br />

he was hardly having time to<br />

breath, he attended to this<br />

conference. This is a favorable<br />

indication of our recogni-<br />

Dr. Hamadoun Toure<br />

tion and his sensitivity about<br />

Bosnia-Herzegovina. Actually,<br />

this is a clear indication of the<br />

value given to Turkey. Similarly,<br />

Prof. Dr. İlhan Fuat Akyıldız,<br />

President of Georgia (USA)<br />

Technology Institute came here<br />

from America for this conference.<br />

Mr. Akyıldız is a Turkish<br />

academician with considerably<br />

successful and popular works,<br />

by the way. He has a lot of<br />

academic personnel trained by<br />

him. He is rather popular and<br />

well known in the informatics<br />

environment.<br />

The <strong>Secretary</strong> <strong>General</strong> of <strong>ITU</strong>,<br />

Hamadoun Toure, although<br />

he was hardly having time to<br />

breath, attended to this conference.<br />

This is a favorable indication<br />

of our recognition and<br />

his sensitivity about Bosnia-<br />

Herzegovina.<br />

Dr. Acarer also points out<br />

that another important<br />

benefit of such meetings is<br />

that they provide a base for<br />

coming together to discuss<br />

the macro problems, bringing<br />

the international and national<br />

industry authorities together.<br />

BTK President Dr. Acarer also<br />

said that Turkish companies are<br />

willing to find solution to the<br />

Dr. Tayfun Acarer<br />

training course problems of the<br />

university students of Bosnia-<br />

Herzegovina.<br />

International struggle on cyber<br />

security<br />

At the meeting, Dr. Acarer added<br />

that <strong>ITU</strong> <strong>Secretary</strong> <strong>General</strong><br />

Hamadoun Toure emphasizes<br />

that cyber security requires<br />

serious efforts especially in the<br />

near future, and the subject<br />

should be considered together<br />

internationally. He said that, in<br />

the special session of information<br />

technologies for the<br />

Turkish participants composing<br />

of civil society organizations<br />

and business representatives,<br />

they exchanged information<br />

and experience with Sarajevo<br />

telecommunication authorities,<br />

and added: “BTK already has<br />

a policy of arranging common<br />

works and cooperation about<br />

the regulation issues with<br />

either Balkan, or Turkish Republics<br />

and African countries.<br />

To provide the base for moving<br />

together with the international<br />

organizations is a part of our<br />

present policy and these meetings.<br />

In this context, we plan<br />

to continue these meetings in<br />

case of a need in the forthcoming<br />

period.”<br />

16 December 2012<br />

www.teletimesinternational.com


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Exclusive Interview: Gulraiz Khalid<br />

“We are ‘the mobile satellite operator’<br />

used in most countries on the planet”<br />

Drew Brandy<br />

Vice President, Industry Enterprise - inmarsat<br />

speaks to <strong>Teletimes</strong><br />

Gulraiz Khalid: How was the<br />

GITEX 2012 experience for<br />

inmarsat?<br />

Drew Brandy: It’s been good.<br />

We exhibit here every year.<br />

We’ve been here for certainly<br />

over the last 7 years because<br />

it’s an important show. It’s<br />

important for us to be present<br />

in the region because so many<br />

of our partners are based<br />

here, also because a lot of the<br />

purchase decisions and the<br />

product is sold from this region<br />

going out into other regions<br />

around the world, typically<br />

serving North African Market<br />

and the Middle East markets.<br />

GK: Is it financially profitable<br />

to participate in such events<br />

for you?<br />

DB: Well, for us it’s about<br />

supporting our partners in<br />

region.<br />

December 2012<br />

www.teletimesinternational.com<br />

19


GK: So it is about presence?<br />

DB: It is absolutely about<br />

presence. Reinforcing and<br />

reestablishing our brand<br />

and also making sure that<br />

customers and partners who<br />

want to have interaction with<br />

us have visibility of us here.<br />

GK: There are a lot of satellite<br />

companies at GITEX, how<br />

would you differentiate<br />

inmarsat from the other ones?<br />

DB: Firstly, we are a global<br />

satellite operator. So what<br />

that means for organizations<br />

is whether you’re delivering<br />

your service in North America<br />

or South East Asia and you’re<br />

getting the same quality and<br />

the same service from us.<br />

We’ve been at the forefront<br />

of the satellite industry for<br />

over 30 years. And we are ‘the<br />

mobile satellite operator’.<br />

We’re used by customers<br />

across most sectors around<br />

the globe. Our services are<br />

used in most countries on the<br />

planet.<br />

GK: Globally, what are the<br />

most profitable markets?<br />

Firstly which regions are you<br />

operating in?<br />

DB: When I say global, I<br />

truly mean global with the<br />

exception of just some areas<br />

and when we launched<br />

our new service in 2005, it<br />

was used in almost every<br />

country around the world.<br />

We launched our I-Sat phone<br />

service two years ago, we<br />

sold more than a hundred<br />

thousand handsets and we’ve<br />

seen the service used in<br />

every licensed country on the<br />

planet. But then you asked<br />

about sectors.<br />

We operate across land,<br />

air and sea so we’ve got a<br />

maritime business that is the<br />

mainstay of the inmarsat<br />

business. We provide<br />

aeronautical services for<br />

commercial airlines and for<br />

business jets and also for<br />

military and government use<br />

as well. And the land business<br />

is which I’m responsible for.<br />

We provide services to the<br />

majority of broadcasters<br />

around the world; the BBCs,<br />

the Aljazeeras, organizations<br />

like that but also oil and gas<br />

and other multinationals.<br />

GK: That would make things<br />

different for you as compared<br />

to other companies in the<br />

ICT center because normally<br />

people are making more<br />

profits from the emerging<br />

markets.<br />

DB: Yes. But it’s not just that,<br />

I mean though if I look at the<br />

majority where our services<br />

are used extensively is in parts<br />

of the Middle East and North<br />

Africa and those are regions to<br />

a large extent where there’s<br />

a lot of investment coming<br />

from outside of those regions<br />

to help develop some of those<br />

markets for various education<br />

initiatives, for healthcare<br />

obligations and for social<br />

aspects.<br />

GK: When you talk about<br />

satellite, how do you see the<br />

future of just the Middle East<br />

market? And how do you see<br />

inmarsat as a player in the<br />

market in the Middle East?<br />

DB: There always is<br />

competition in every market.<br />

I think completion makes you<br />

better or makes you sharper<br />

in terms of the services and<br />

solutions you bring to market<br />

because it focuses you on<br />

how to better address your<br />

customer’s requirements.<br />

So the competition, I think<br />

is healthy in the market. The<br />

Middle East market has been<br />

an important market for us<br />

and hence we have presence<br />

“The key piece in all this is that<br />

we’re not rusting on our laurels.<br />

We as an organization continue to<br />

innovate and our portfolio continues<br />

to grow. We have the broadest<br />

portfolio in the satellite industry”<br />

in this region, we have an<br />

office here which continues<br />

to grow, our channel in this<br />

region continues to grow<br />

and it’s just support, not<br />

just the UAE but the region<br />

surrounding it where the<br />

services are used extensively.<br />

GK: Are you planning on<br />

introducing any new services?<br />

DB: We’ve introduced a<br />

few new services this year<br />

but in 2013 we’ll increase<br />

our streaming capability<br />

on our BIGAM portfolio.<br />

But later in 2013 we’ll also<br />

launch our global express<br />

program which is a brand<br />

new service, launched on<br />

three new satellites call the<br />

I-5’s, deploying cave end<br />

technology and offers much<br />

greater throughout to Ng’s.<br />

GK: How are you planning to<br />

increase capacity?<br />

DB: We will increase our<br />

capacity through I-4 satellite in<br />

2013 and that’s a joint initiative<br />

for the European Space<br />

Agency called Alphasat.<br />

GK: How are you adding<br />

value to or making better the<br />

communication experience<br />

for the customers?<br />

DB: We are continuing to<br />

evolve our portfolio in line<br />

with customer’s expectations.<br />

We’re increasing the<br />

throughput available to<br />

them on our existing services<br />

and we’re moving beyond<br />

the mobile satellite into<br />

the broader satellite space<br />

to deliver unparalleled<br />

throughout in the fixed space<br />

with our new offerings in 2013.<br />

GK: Is there anything else you<br />

would like to add on?<br />

DB: I think for me, the key<br />

piece in all this is that we’re<br />

not rusting on our laurels. We<br />

as an organization continue<br />

to innovate and our portfolio<br />

continues to grow. We have<br />

the broadest portfolio in the<br />

satellite industry.<br />

20 December 2012<br />

www.teletimesinternational.com


Purchase mobile computers wisely<br />

not to lose productivity<br />

Jerker Hellström<br />

CEO, Handheld Group<br />

Higher productivity, increased<br />

labor costs and a strong trends<br />

towards true mobility in the<br />

work place are all factors that<br />

have put the spotlight firmly<br />

on ‘total costs of ownership’<br />

for computers and devices.<br />

Organizations will have to start<br />

spending more on durable and<br />

reliable mobile computers rather<br />

than looking for bargains, if<br />

they want to avoid losing valuable<br />

productive time.<br />

20 years ago, a laptop<br />

could cost the equivalent<br />

of a month’s salary for the<br />

employee who was supposed<br />

to use it. Since then, prices of<br />

mobile computers have been<br />

slashed. Great news, isn’t it?!<br />

Let us just continue to buy the<br />

cheapest computers available.<br />

They are so cheap to replace!<br />

Not so fast. Yes, mobile<br />

computers have become much<br />

more inexpensive, and much<br />

more advanced, in the last<br />

decade or two. But there has<br />

also been other major changes<br />

in the workplace.<br />

One such is the trend towards<br />

true mobility. Smaller and better<br />

devices, better software<br />

solutions for mobile work,<br />

and increasing availability<br />

and affordability of wireless<br />

broadband have made people<br />

less confined to the traditional<br />

office environment. Traditional<br />

field workers and many white<br />

collar workers now spend<br />

much of their time out of<br />

the office and on the go. But<br />

consumer, or commercial,<br />

computers are simply too<br />

fragile to withstand mobile<br />

work even in moderately tough<br />

environments. They might last<br />

one year, or two at the most.<br />

Rugged computers, on the<br />

other hand, are more expensive<br />

but they are built for tough<br />

environments and can last five<br />

years or more. They also have<br />

much lower failure rates, simply<br />

because they are rugged.<br />

Another strong development<br />

has been the steady rise in<br />

wages and productivity for<br />

e.g. professional field workers.<br />

A tablet or a smartphone<br />

now costs the equivalent<br />

of maybe only a few hours’<br />

salary for an employee. In the<br />

old days it was important to<br />

get the best possible price<br />

for mobile devices. Today it<br />

is more important to not lose<br />

productivity. A field worker<br />

who sits idly for four hours<br />

because his or her computer<br />

is malfunctioning, has wasted<br />

the entire cost of the computer<br />

in lost productivity. Also,<br />

everything is connected these<br />

days – one broken computer<br />

can affect the work of many<br />

people.<br />

It all boils down to the magic of<br />

Total Cost of Ownership TCO.<br />

The total cost of ownership<br />

includes all direct and indirect<br />

costs associated with the<br />

purchase of an asset over its<br />

entire lifecycle. A TCO analysis<br />

includes the total cost of acquisition<br />

and the subsequent operating<br />

costs. Acquisition costs<br />

are quite straightforward: they<br />

include the costs for computer<br />

hardware and programs, Installation<br />

and integration, and<br />

migration expenses.<br />

Ofter overlooked are the<br />

subsequent operating<br />

expenses during the lifespan<br />

of the computers. They are<br />

usually much higher than the<br />

purchase costs and include<br />

downtime, outage and failure<br />

expenses, backup and recovery<br />

process, and replacement<br />

costs. Downtime is the most<br />

serious, and costly, of these<br />

expenses.<br />

Independent research firm<br />

VDC estimates that mobile<br />

workers lose an average of 75<br />

minutes each time their mobile<br />

devices fail. In a study focused<br />

on rugged computers, VDC has<br />

performed TCO computations<br />

across four levels of computers,<br />

from non-rugged to fully<br />

rugged, across a number of<br />

common mobile applications.<br />

The total cost for each type of<br />

computer has been calculated<br />

over a five-year lifespan. The<br />

results show that using a commercial<br />

or non-rugged device<br />

will cost you about 65 per cent<br />

more per year than using a fully<br />

rugged device.<br />

<strong>General</strong>ly speaking TCO studies<br />

show that over a 3-5 year<br />

period of use, the more rugged<br />

devices will carry a lower total<br />

cost of ownership, meaning<br />

that over that period they are<br />

actually cheaper than the less<br />

rugged devices, even though<br />

they are usually more expensive<br />

to purchase.<br />

With the complexity of today’s<br />

technology configurations,<br />

the cost of deployment and<br />

downtime is high if something<br />

breaks down. The upfront cost<br />

of a piece of mobile technology<br />

pales in comparison to the<br />

potential cost of downtime and<br />

redeployment. Organizations<br />

would be well advised to start<br />

increasing the costs for their<br />

mobile devices, in the name of<br />

productivity.<br />

December 2012<br />

www.teletimesinternational.com<br />

21


Tech titans go to war<br />

Just in time for the holidays,<br />

Microsoft and Google have<br />

become embroiled in a bitter<br />

dispute over who is the fairest<br />

of them all for online shopping,<br />

stepping up the battle between<br />

the tech giants.<br />

Microsoft threw the first punch<br />

when it launched a campaign<br />

for its Bing search engine “to<br />

highlight Bing’s commitment to<br />

honest search results.”<br />

The campaign also seeks “to<br />

help explain to consumers the<br />

risks of Google Shopping’s<br />

newly announced ‘pay-to-rank’<br />

practice,” a Microsoft statement<br />

said. Microsoft created a Web<br />

page called “Scroogled,” which<br />

points out that its rival has<br />

reversed course on its pledge<br />

at the time of the Google<br />

stock offering to avoid paid ad<br />

inclusion for search results.<br />

“Google Shopping is nothing<br />

more than a list of targeted ads<br />

that unsuspecting customers<br />

assume are search results,”<br />

Microsoft claims.<br />

Google announced earlier this<br />

year it would revamp its product<br />

search to become a shopping<br />

service with paid listings. This<br />

eliminated merchants which<br />

opted not to pay, including<br />

some notable ones like Amazon.<br />

Google said it completed the<br />

transition in October in the US,<br />

and will be rolling out the same<br />

model in Britain, Germany,<br />

France, Japan, Italy, Spain,<br />

Netherlands, Brazil, Australia<br />

and Switzerland.<br />

“We think this will bring the<br />

same high-quality shopping<br />

experience to people — and<br />

positive results to merchants<br />

— around the world,” a Google<br />

blog posting said.<br />

Microsoft is promoting its<br />

campaign online and offline<br />

with ads “demonstrating why<br />

consumers should be concerned<br />

and helping them take action”<br />

on the Google shift, a Microsoft<br />

statement said. “We’re also<br />

calling on Google to stop this<br />

‘pay-to-rank’ system for their<br />

shopping results and give<br />

shoppers what they expect<br />

— an honest search.” Google<br />

maintains that merchants<br />

cannot improve their rank<br />

simply by paying more, and<br />

that sellers who have a financial<br />

stake in the results will keep<br />

their information up to date.<br />

“Google Shopping makes it<br />

easier for shoppers to quickly<br />

find what they’re looking for,<br />

compare different products<br />

and connect with merchants to<br />

make a purchase,” said an email<br />

from a Google spokeswoman.<br />

But some analysts say both<br />

companies are less than<br />

transparent about how their<br />

shopping engines work, and<br />

that Microsoft is not without<br />

blame. Danny Sullivan, analyst<br />

with the website Search Engine<br />

Land, said of the Microsoft<br />

effort: “Great campaign, if it<br />

were true. It’s not. Bing itself<br />

does the same things it accuses<br />

Google of.” Sullivan said that “at<br />

least Google has the fine print<br />

that you can read; Microsoft<br />

doesn’t have it at all.”<br />

Microsoft, according to Sullivan,<br />

excludes new merchants from<br />

Bing search results if they<br />

don’t pay for inclusion with<br />

its partner, Shopping.com,<br />

even though this is not fully<br />

transparent to consumers.<br />

“Payment is a factor for<br />

ranking,” in Bing, said Sullivan,<br />

who maintains that Microsoft’s<br />

campaign is misleading.<br />

Microsoft said its own shopping<br />

results through Bing are not<br />

influenced by payment.<br />

“Bing includes millions of free<br />

listings from merchants and<br />

rankings are determined entirely<br />

by which products are most<br />

relevant to your query,” said<br />

Stefan Weitz, senior director at<br />

Bing, in an emailed statement.<br />

“While merchants can pay fees<br />

for inclusion on our third party<br />

shopping sites and subsequently<br />

may appear in Bing Shopping<br />

through partnerships we have,<br />

we do not rank merchants<br />

higher based on who pays us,<br />

nor do we let merchants pay to<br />

have their product offers placed<br />

higher in Bing Shopping’s search<br />

results.”<br />

Sullivan argues that Google,<br />

ironically, may have moved to<br />

paid listings to deflect attention<br />

from regulators and others who<br />

complain it had been skewing its<br />

search results.<br />

“If you have people complaining<br />

you search results are unfair,<br />

you can turn them into ads,”<br />

he said. But Sullivan noted that<br />

Google merely adopted the<br />

same policies of most shopping<br />

sites, which use paid listings<br />

even if they appear to be an<br />

impartial search.<br />

The overall message from the<br />

latest row, according to Sullivan:<br />

“You need to shop around. Use<br />

multiple search engines. All of<br />

them that suggest that they<br />

are gathering stuff from across<br />

the Web but may not be doing<br />

that.”<br />

22 December 2012<br />

www.teletimesinternational.com


Catching the Smart Home<br />

Opportunity<br />

Room for Growth for Telecom Operators<br />

Dr. Karim Taga<br />

Didier Levy<br />

Omar Saadoun<br />

Lars Riegel<br />

Smart Home services are<br />

poised for strong growth<br />

and represent an attractive<br />

opportunity for telecom<br />

operators to expand their<br />

services and revenue<br />

streams. Telcos have several<br />

competitive advantages,<br />

including their internet<br />

gateways, strong customer<br />

relationships, and sales and<br />

support networks. However,<br />

partnerships are essential and<br />

timing is critical.<br />

In this report, Arthur D.<br />

Little reviews the key trends<br />

driving the potential for Smart<br />

Home solutions, presents<br />

an overview of four main<br />

segments and provides<br />

December 2012<br />

www.teletimesinternational.com<br />

23


ecommendations for telecom<br />

operators in the launch of<br />

Smart Home services.<br />

A Smart Home is a home or<br />

building that is equipped with<br />

a special connected platform<br />

enabling its occupants to<br />

remotely control and program<br />

an array of automated home<br />

electronic devices. The Smart<br />

Home becomes “intelligent”<br />

as it offers a wide array of<br />

new applications from home<br />

automation (home security,<br />

comfort and entertainment),<br />

home cloud (management of<br />

content, productivity, sensors<br />

data used or produced at<br />

home), and e-Health services.<br />

Major electronics and software<br />

companies have offered Smart<br />

Home products since the first<br />

home automation products<br />

in the 1980s. These were<br />

followed by integrated media<br />

systems, such as Microsoft’s<br />

Home Media Center in the<br />

1990s, and then with the first<br />

connected appliances, such as<br />

the Electrolux Screenfridge,<br />

in the 2000s. These solutions<br />

initially met with limited<br />

success, so why is the Smart<br />

Home a hot topic again today?<br />

And how should telecom<br />

operators position themselves<br />

in this growing market?<br />

Key Trends are Creating<br />

Opportunities for Smart Home<br />

Services<br />

Homes, and the way we live<br />

and behave in them, have<br />

changed dramatically in<br />

the past ten years. Today,<br />

fundamental trends have<br />

emerged to drive the take-up<br />

of Smart Homes:<br />

● Societal trends – Society is<br />

ageing; in 2020, a fifth of the<br />

European population will be<br />

over 65 years old and single<br />

parent families are expected<br />

to represent 21 percent of<br />

total families, increasing<br />

demand for new services in<br />

the home.<br />

● Digital addiction – Forecasts<br />

predict there will be on average<br />

3.6 screens per person<br />

in Europe in 2015 (including<br />

smartphones and tablets)<br />

versus 1.7 in 2000. This<br />

develop¬ment is a strong<br />

enabler for Smart Home<br />

applications as portable<br />

devices are the perfect<br />

counterparts (as controllers)<br />

for smart applications in the<br />

home.<br />

● Strong push by large<br />

players positioning homes<br />

at the center of the digital<br />

ecosystem – A wide range<br />

of leading players are<br />

entering the Smart Home<br />

market, including Over-thetop<br />

players (such as Google<br />

and Microsoft) offering<br />

applications and operating<br />

systems, telecom and utility<br />

service providers (such<br />

as Telefonica, E.ON and<br />

GDF Suez) managing the<br />

customer relationship, and<br />

appliance manufacturers<br />

(such as Philips, and LG with<br />

the LG Homnet) providing<br />

Smart Home devices (see<br />

Figure 1).<br />

There is a window of<br />

opportunity today, as these<br />

trends are developed enough<br />

to make Smart Home a<br />

potential business. Based on<br />

various projects, Arthur D.<br />

Little estimates that Smart<br />

Home revenues will grow by<br />

12 percent a year until 2020 in<br />

Europe. This revenue sizing<br />

includes both direct revenues,<br />

such as home automation<br />

services/products, and<br />

indirect revenues, such as<br />

the maintenance of the new<br />

devices/services.<br />

It should be recognized that<br />

Smart Home markets are still<br />

in an embryonic phase and<br />

24 December 2012<br />

www.teletimesinternational.com


many players are entering<br />

the market. Telcos are one<br />

of them, and should act now<br />

in order to capitalize on the<br />

opportunity.<br />

The Smart Home market<br />

is composed of four major<br />

segments, which we will<br />

explore in the following<br />

sections:<br />

● Home automation/security<br />

● Home assistance<br />

● Home cloud<br />

● e-Health<br />

Home Automation – When the<br />

House Becomes Smarter<br />

Home automation refers to<br />

the centralization on a unique<br />

user interface of five main<br />

home systems: home security,<br />

home energy and utility<br />

management (smart meters),<br />

home motorization (remote<br />

control of devices such as<br />

alarm systems or thermostats),<br />

lighting and entertainment.<br />

The main drivers of this<br />

segment are comfort,<br />

modularity and peace of mind,<br />

especially when it comes<br />

to security, while energy<br />

management emphasizes cost<br />

savings. Security and energy<br />

management are the more<br />

advanced systems in terms<br />

of integration, while home<br />

automation is still at the early<br />

stages of development. Arthur<br />

D. Little forecasts a 6 percent<br />

annual growth rate for these<br />

services to 2020.<br />

The primary challenge<br />

for home automation is<br />

the existing disparity of<br />

technologies (e.g. power line<br />

versus wireless networks,<br />

diversity of protocols and<br />

platforms). Players are<br />

developing alliances and<br />

partnerships along the value<br />

chain to promote and develop<br />

their platform. Telecom<br />

operators’ main entry points<br />

are their primary assets,<br />

namely the home network<br />

(broadband access, set-top<br />

boxes, cloud storage and<br />

other connectivity layers)<br />

and related services, such as<br />

field service staff and network<br />

management capabilities<br />

(i.e. field staff capable of<br />

supporting a home network).<br />

They could also extend to<br />

home security and alerting,<br />

often with the objective of<br />

developing a presence in home<br />

control and automation (see<br />

Figure 2).<br />

Smart Home Assistance –<br />

Required by the Increasing<br />

Complexity of the Ecosystem<br />

Home assistance refers to<br />

configuration, maintenance,<br />

repair and support services<br />

available for digital home<br />

devices, such as PCs, TVs,<br />

audio sets, video players, game<br />

consoles and networks. Home<br />

assistance can be divided into<br />

two sub-segments: in-home<br />

assistance, through the<br />

physical presence of support<br />

staff, and remote assistance,<br />

which is managed through the<br />

remote control of the device<br />

by a off-site technician. This<br />

market is expected to grow<br />

at a pace of 5 percent per<br />

year to 2020. Despite strong<br />

market drivers, such as home<br />

digitization, tele¬working<br />

and “home shoring” (homebased<br />

employees), there<br />

are still barriers to further<br />

development, such as privacy<br />

concerns, poor offers and few<br />

successful business models<br />

(Figure 3).<br />

The Home assistance<br />

ecosystem is very fragmented<br />

with a wealth of solutions<br />

offered. Successful players are<br />

primarily making partnerships,<br />

with each one focusing on<br />

specific aspects of the value<br />

chain, such as personnel<br />

qualification, sales, service<br />

delivery, billing and CRM. For<br />

example, in the United States,<br />

OnForce works as a technician<br />

network aggregator and open<br />

marketplace. In North America<br />

and Europe, the Geek Squad<br />

December 2012<br />

www.teletimesinternational.com<br />

25


generates more than $1.5<br />

billion in revenues, and other<br />

players are emerging such as<br />

iYogi or Virgin Digital Help.<br />

The main success factor in the<br />

Smart Home Assistance market<br />

is the legitimacy perceived by<br />

customers, mainly retained<br />

today by manufacturers, but<br />

telecom operators are also<br />

well positioned among trusted<br />

companies for technical<br />

support.<br />

Home Cloud – High Growth<br />

Perspectives<br />

Home cloud covers three main<br />

types of digital data: content<br />

(video, music, and pictures),<br />

productivity (email, documents<br />

and contacts) and sensors<br />

(data collected through Smart<br />

Home devices, such as smart<br />

meters and e-Health devices)<br />

(Figure 4).<br />

Home cloud solutions<br />

allow new ubiquitous and<br />

collaborative usages, but<br />

raise concerns about the<br />

management of data. This<br />

market is driven by the<br />

increasing amount of data,<br />

mainly video, leading to a<br />

strong demand for remote<br />

storage and access. Despite<br />

some inhibitors, such as<br />

privacy and trust, the market is<br />

expected to grow at a strong<br />

pace of 50 percent per year.<br />

There is a vast array of offers<br />

pushing interactivity, service<br />

personalization and multiscreen<br />

usage, such as Hulu<br />

Plus and Spotify, which up-sell<br />

their viewers to multi-screen<br />

services for a monthly fee, or<br />

Boxee, which is integrating<br />

all kinds of locally-stored<br />

and online content, such as<br />

video, music, and photos, and<br />

allowing users to share their<br />

preferences and content with<br />

friends using social network<br />

integration. Over-The-Top<br />

players, such as Apple or<br />

Google, also offer multidevice,<br />

cloud-based solutions<br />

for Personal Information<br />

Management.<br />

e-Health – Long-term<br />

Opportunity for Telecom<br />

Operators<br />

Health expenditures of<br />

most developed countries<br />

are growing steadily due<br />

to the aging of societies<br />

and developments in<br />

medical technology.<br />

e-Health, the application<br />

of telecommunication<br />

technologies in the health<br />

sector, offers a unique<br />

cost control lever for<br />

health stakeholders by<br />

dematerializing some<br />

healthcare components.<br />

Switzerland, for example,<br />

launched the e-Health Strategy<br />

Switzerland program, with<br />

potential cost savings of 5<br />

percent of total expenditures,<br />

thanks to telemedicine. New<br />

companies are also emerging,<br />

with innovative e-Health<br />

solutions, such as Cardiocom,<br />

which provides a complete<br />

solution for telemedicine,<br />

including connected sensors.<br />

A wide variety of actors,<br />

such as telecom operators,<br />

device manufacturers and big<br />

pharmaceutical companies, are<br />

playing in the e-Health market<br />

with two market strategies:<br />

a mass market approach,<br />

such as Wii Fit or Withings – a<br />

WiFi body scale, addressing<br />

mainly B2C markets, and a<br />

niche market strategy, such as<br />

electronic patient records and<br />

patient remote monitoring, as<br />

a B2B (or B2B2C) market.<br />

While market players are<br />

entering e-Health according<br />

to their natural position in<br />

the consumer electronics<br />

or medical device industry,<br />

several telecom operators are<br />

addressing both (Figure 5).<br />

However, the value sharing<br />

mechanism among actors<br />

is uncertain, as it is highly<br />

26 December 2012<br />

www.teletimesinternational.com


dependent on standardization<br />

scenarios, making the<br />

market potential for telecom<br />

operators uncertain<br />

Telecom Operators Have Key<br />

Assets to Capture a Significant<br />

Part of the Smart Home<br />

Value…<br />

Thanks to their broadband<br />

Internet gateways, telecom<br />

operators are the leading<br />

players by several hundred<br />

percentage points in terms<br />

of penetration of households<br />

with Smart Home solutions.<br />

The broadband box has<br />

evolved from a mere internet<br />

connection device to a<br />

highly innovative platform<br />

connecting various devices.<br />

As shown on Figure 5, the<br />

Freebox Revolution broadband<br />

box or the Bbox Sensation<br />

by Bouygues Telecom offers<br />

a wide range of multi-media<br />

applications, such as Internet,<br />

TV, music and gaming,<br />

combined with innovative<br />

remote storage services.<br />

In addition, telecom operators<br />

offer interoperable solutions<br />

based on open models that<br />

can allow heterogeneous<br />

Smart Home solutions to<br />

interconnect, contrary to<br />

closed OTT ecosystems.<br />

Good examples are the<br />

“beywatch.eu” and “Energy@<br />

home” initiatives, the home<br />

automation alliances of<br />

Telefonica and Telecom Italia,<br />

respectively, with a large<br />

number of partners, such as<br />

utilities or household appliance<br />

manufacturers. However, this<br />

openness could also be seen<br />

as a threat since it allows other<br />

players to bypass operators<br />

(Figure 6).<br />

Another significant asset of<br />

telecom operators in the Smart<br />

Home environment is the<br />

central role they play in the<br />

customer relationship. Unlike<br />

home appliance manufacturers<br />

or some OTT players, operators<br />

are continuously in contact<br />

with their customers, and<br />

can thus capture great value<br />

by promoting, distributing<br />

and managing future Smart<br />

Home services. They also<br />

have a secure, regular billing<br />

relationship with customers<br />

that can be leveraged.<br />

Other key assets that telcos<br />

could leverage include their<br />

sales force, shop networks<br />

and support capacity, as well<br />

as network management<br />

capabilities. In any case,<br />

telecom operators will need<br />

a strong emphasis on staff<br />

training in order to correctly<br />

address Smart Home’s specific<br />

needs.<br />

… and Need to Place Their<br />

Bets Now and Promote Open<br />

Platforms<br />

As the Smart Home market is<br />

still emerging, players need<br />

to consider and prepare for<br />

various scenarios. Arthur D.<br />

Little anticipates two possible<br />

market configurations:<br />

Market configuration 1: The<br />

Smart Home market is captured<br />

and aggregated into<br />

large ecosystems driven by<br />

global players<br />

This model is clearly favored<br />

by OTT players, which have<br />

already developed solutions<br />

that can bypass the operators.<br />

For example, Google has<br />

explored various solutions,<br />

such as Google Health, Google<br />

Powermeter and Google docs,<br />

some of which have nevertheless<br />

been discontinued.<br />

Dedicated Smart Home<br />

players have also emerged,<br />

such as Control4 or iControl,<br />

in the United States. With a<br />

revenue growth of more than<br />

45 percent a year, Control4 is<br />

building an ecosystem with<br />

leading vendors, such as Black<br />

& Decker or LG Electronics, to<br />

ensure the interoperability of<br />

its platform with the largest<br />

number of home devices.<br />

In this concentrated model,<br />

telecom operators will face<br />

the risk of being circumvented<br />

as in the case of smartphone<br />

application store. Operators<br />

are actually amplifying this risk,<br />

as most still favor proprietary<br />

solutions in order to capture a<br />

maximum share of revenues,<br />

but with limited success so far.<br />

Indeed such models imply long<br />

development cycles and a limited<br />

number of applications, as<br />

operators fail to find developers<br />

to build the ecosystem on<br />

verticals.<br />

On the contrary, Arthur D.<br />

Little believes that to mitigate<br />

this risk telecom operators<br />

should participate in alliances<br />

when available and should also<br />

promote hybrid Smart Home<br />

platforms with applications<br />

close to their core business<br />

but also other services offered<br />

by external providers. An<br />

example is PCCW in Hong<br />

Kong, which has built its digital<br />

home solutions around open<br />

models enabling a whole range<br />

of innovative functions from<br />

other players, such as MOOV,<br />

Android, etc.<br />

Market configuration 2: The<br />

Smart Home market grows<br />

strongly, but with a patchwork<br />

of solutions and standards<br />

In this second scenario with a<br />

patchwork of standards, the<br />

ecosystem will remain highly<br />

fragmented with numerous<br />

heterogeneous competitors<br />

trying to capture value from<br />

the Smart Home market. In this<br />

case, which we see actually as<br />

an opportunity, operators will<br />

be in a position to leverage<br />

not only their assets to offer<br />

their own solutions, but also<br />

to integrate external solutions<br />

and facilitate the digital life<br />

of their customers. By doing<br />

so, they would generate new<br />

revenue streams and also<br />

improve the stickiness of<br />

customers to their existing<br />

services.<br />

Conclusion<br />

The Smart Home is a significant<br />

growth opportunity for many<br />

players including telecom<br />

operators, thanks to favorable<br />

societal trends, growing<br />

demand and the acceleration<br />

of the innovation.<br />

Thanks to strategic assets,<br />

such as the internet gateway,<br />

control of the customer relationship,<br />

and sales and support<br />

capability, telecom operators<br />

are well positioned to capture<br />

value from Smart Home<br />

services. Despite the fact that<br />

payback will materialize in the<br />

medium term, they should act<br />

now and establish footholds or<br />

they will face a similar fate as<br />

what happened in the smartphone<br />

application market.<br />

To benefit from this coming<br />

growth, telecom operators<br />

should promote hybrid platforms<br />

where they can offer<br />

their own solutions as well as<br />

a myriad of external solutions<br />

and position themselves as<br />

digital life facilitators.<br />

Finally, the future Smart<br />

Home needs also to be seen<br />

in a broader context than<br />

just within the home space.<br />

Platforms will also connect<br />

the home to various other<br />

locations, such as school,<br />

office, shopping malls or cars.<br />

This will broaden the type<br />

of actors in the ecosystem,<br />

and will give the opportunity<br />

to telecom operators to<br />

strengthen their central<br />

position as the integrator of<br />

Smart Home services. It will be<br />

up to them to define to what<br />

extent.<br />

December 2012<br />

www.teletimesinternational.com<br />

27


21st Convergence India 2013 Expo<br />

The Information and Communication<br />

Technology sector has<br />

been recognized the world-over<br />

as an important tool for socio<br />

economic development for a<br />

nation. It enables the societies<br />

to produce and apply information<br />

in greater amounts, more<br />

rapidly and at reduced costs<br />

and offer enormous opportunities<br />

for enhancing business and<br />

economic viability. Being one of<br />

the prime support services, this<br />

industry helps in rapid growth<br />

and modernization of various<br />

sectors of the economy. Driven<br />

by various policy initiatives, the<br />

Indian ICT sector witnessed a<br />

complete transformation in the<br />

last decade and is poised to take<br />

a big leap in the future also.<br />

The Indian telecommunication<br />

industry is the second largest<br />

Enriching a billion lives<br />

series of Convergence India<br />

Expos have been recognized as<br />

South Asia’s largest Information<br />

and Communications Technology<br />

(ICT) event. The three day<br />

international exhibition and<br />

conference is the preferred<br />

B2B platform for companies<br />

to showcase cutting-edge<br />

technologies and interact with<br />

the policy-makers, key decision<br />

takers, research analysts, academia,<br />

media and industry peers<br />

to promote brand and generate<br />

business.<br />

With the support from the<br />

Government of India, Ministry of<br />

Communications and Information<br />

Technology, Department<br />

of Telecommunications (DoT)<br />

and Department of Information<br />

Technology (DiT), and Ministry<br />

of Information and Broadcast-<br />

inclusion and enrich the lives of<br />

people.<br />

Developed around the theme<br />

of “Enriching a billion lives”, the<br />

rich format of the event will feature<br />

a wide range of Information<br />

and Communications Technologies<br />

(ICT) including broadband,<br />

broadcasting, cable and satellite,<br />

data centre virtualization,<br />

digital money, Green ICT, IT &<br />

info security, mobility, security<br />

& surveillance, telecom, unified<br />

communications, VAS, WiMAX,<br />

etc. A host of leading domestic<br />

and international associations<br />

and media have extended their<br />

support for promotion and success<br />

of the forthcoming event.<br />

The forthcoming expo will<br />

showcase leading devices<br />

and innovations to enhance<br />

e-Development at all levels and<br />

Pawan Dixit<br />

Fulfilling its long-standing mandate<br />

as a premier knowledge<br />

sharing forum, the milestone<br />

edition of Convergence India<br />

Expo will play a key role in<br />

facilitating trade & commerce,<br />

technology transfers, collaborations<br />

and new launches that will<br />

provide further impetus to the<br />

growth of the sector.<br />

Spread over a gross area of<br />

12000sqm, the event has received<br />

a robust response from<br />

the domestic and international<br />

industry. Over 375 exhibitors,<br />

100 speakers, 2,000 delegates<br />

and 15,000 trade visitors from<br />

over 25 countries will participate<br />

at the 3 day-expo.<br />

Some of the key services like<br />

business matching and interactive<br />

Client Presentations allow<br />

the participants at the Expo to<br />

telecommunication network in<br />

the world in terms of number<br />

of wireless connections after<br />

China. According to Centre for<br />

Monitoring Indian Economy<br />

(CMIE), an economic research<br />

agency, the total subscriber<br />

base is expected to reach 1,042<br />

million by March 2013.<br />

Held every year, and organized<br />

by the Exhibitions India Group,<br />

one of India’s finest trade<br />

promotion organization, the<br />

ing, Government of India, 20<br />

editions of Convergence India<br />

Expos have been successfully<br />

hosted at New Delhi.<br />

As we move towards a world<br />

of connected economies, the<br />

milestone 21st edition of Convergence<br />

India 2013 Expo is being<br />

held from 16-18 January, 2013<br />

at Pragati Maidan, New Delhi.<br />

The event will focus on new-age<br />

technologies and merging business<br />

solutions, which will enable<br />

drive the growth of urban usage.<br />

Focused business-matching<br />

will provide the perfect opportunity<br />

to network with industry<br />

executives and establish new<br />

partnerships.<br />

Attracting global leaders, the<br />

concurrent conferences will<br />

serve as an ideal platform for<br />

knowledge-experts to share<br />

industry insights and successful<br />

case studies from across the<br />

globe.<br />

extract maximum benefit from<br />

the proceedings and harness<br />

the full potential of global wireless<br />

technologies. A continuous<br />

flow of high profile trade visitors<br />

include government officials,<br />

trade associations, regulatory<br />

bodies and media, the 21st Convergence<br />

India 2013 promises to<br />

be an exciting event for the ICT<br />

industry, buzzing with entrepreneurship,<br />

innovation and<br />

expansion.<br />

28 December 2012<br />

www.teletimesinternational.com


The main purpose of State Foundation is<br />

Involvement of investments and new financial<br />

resources to the perspective and rapidly<br />

developing ICT companies<br />

Interview with<br />

Dr. Ali Abbasov,<br />

Minister of Communications & IT, Azerbaijan<br />

Q: ICT has 2.5-3 times revenue<br />

growth during 2004-2011. At<br />

the same time, share of private<br />

companies in the market<br />

reached 80%. How did the state<br />

policy contribute to obtaining<br />

these achievements?<br />

A: Development of ICT<br />

sector in the country has<br />

been fulfilling in accordance<br />

with the “National Strategy<br />

on information and<br />

Communication Technologies<br />

for the Development of the<br />

Republic of Azerbaijan in the<br />

years of 2003-2012” and State<br />

Programs of “E-Azerbaijan”<br />

covering the years of 2005-<br />

2008 and 2010-2012, which was<br />

accepted for implementation<br />

of the National Strategy.<br />

Activities considered for wide<br />

application of ICT in different<br />

fields are also underway within<br />

the framework of about 20<br />

State Programs.<br />

In the recent years ICT sector<br />

has been developed and<br />

supported, and it has been<br />

achieved due to the state<br />

care. In order to stimulate<br />

development of this sector,<br />

important documents have<br />

been signed by H.E. President<br />

llham Aliyev in 2012. “State<br />

Foundation of Information<br />

Technologies Development”<br />

has been established and new<br />

tasks have been put forward<br />

before the Government.<br />

The main purpose of State<br />

Foundation is involvement of<br />

investments and new financial<br />

resources to the perspective<br />

and rapidly developing ICT<br />

companies. Facilitating<br />

implementation of public<br />

policy in the field of ICT,<br />

December 2012<br />

www.teletimesinternational.com<br />

29


supporting ownership activity,<br />

stimulating innovation and<br />

scientific-research projects and<br />

development of state-of-theart<br />

infrastructure, providing<br />

financial assistance for small<br />

and medium-size entrepreneurs<br />

and involving local and foreign<br />

investments to this field<br />

are also listed among main<br />

purposes of the Foundation.<br />

Due to the measures,<br />

undertaken by the State<br />

Foundation, it will be possible<br />

to develop production-oriented<br />

activity in the field of ICT.<br />

As a result of future activity<br />

of State Foundation and<br />

Regional Innovation Zone<br />

(RIZ), which is underway to be<br />

established, ICT sector will be<br />

diversified, new companies will<br />

be emerged and revenues of<br />

the companies, operating in<br />

this field, will be increased for<br />

several folds.<br />

Another event, as important<br />

as establishment of the State<br />

Foundation, will be creation<br />

of techno-park for ICT field. It<br />

is planned to realize creation<br />

of new techno-park within<br />

the framework of RIZ project.<br />

Successful implementation<br />

of the mentioned activities<br />

will stimulate intellectual<br />

business and innovative<br />

entrepreneurship. As a result<br />

of joint activity of State<br />

Foundation and technopart<br />

in the field of ICT, it<br />

will be possible to bring<br />

high quality ICT sector in a<br />

new arena. The documents<br />

that have been adopted<br />

so far set forth provisions<br />

on main development<br />

trends of ICT: liberalization<br />

and creation of effective<br />

regulation mechanisms in<br />

the, modernization of ICT<br />

infrastructure on e basis of new<br />

technologies; development of<br />

e-government and e-services,<br />

as well as, provisions state<br />

policy has been formed and<br />

canned out in the country<br />

according to these directions.<br />

Main purpose of public policy<br />

in the field of ICT is to provide<br />

transition to the information<br />

society, create and develop<br />

information and knowledgebased,<br />

competitive economy<br />

and arrange participation of<br />

citizens and social institutions<br />

in the management process.<br />

At the same time, creation of<br />

RIZ and special regime for this<br />

field and implementation of<br />

regional projects are the main<br />

components of ICT policy.<br />

The measures undertaken<br />

are yielding results according<br />

to the above-mentioned<br />

directions. Thus, ICT sector of<br />

the country is expanding for<br />

two times in every three year,<br />

average growth rate is 25-30%.<br />

Volume of the incomes in the<br />

sector has been increased 13%<br />

in 2011 and was approximately<br />

1,7 billion USD. 65 % of<br />

the population is internet<br />

users and more than 30% is<br />

broadband internet users.<br />

The number of computers per<br />

100 in habitants is 20 units.<br />

Mobile sector has been rapidly<br />

developing; application of new<br />

technologies, as well as 3G and<br />

4G services are expanding.<br />

Currently there are 110 mobile<br />

subscribers per 100 inhabitants.<br />

Special weight of the private<br />

sector in development of ICT<br />

sector has been increasing year<br />

by year. As you noted, now the<br />

share of the private sec tor in<br />

development of ICT is equal to<br />

80%.<br />

Naturally, great public support,<br />

properly defined long-term<br />

strategy and well-grounded<br />

public policy play important<br />

role in achievement of these<br />

successions.<br />

Q: In the last 10 years 2.3 billion<br />

USD was invested to ICT sector.<br />

21% of it belongs to foreign<br />

investments. Why is Azerbaijan<br />

market so attractive for<br />

foreign investors?<br />

A: Today I can say with<br />

certainty that a legal base<br />

regarding protection of foreign<br />

investments is existing in<br />

Azerbaijan, favorable business<br />

environment has been created<br />

in all spheres of the economy.<br />

State registration of the<br />

entrepreneurs began to be<br />

Implemented by “one stop<br />

shop” system and the period<br />

of state registration of the<br />

business enterprises was<br />

reduced to 20 times by this<br />

application and it is provided<br />

during 3 business days. As<br />

well as, number of registration<br />

procedures of the legal<br />

entities has been reduced 13<br />

to 5. Currently, this process<br />

takes up to 15-20 minutes with<br />

application of e-services. It is<br />

an example of special care,<br />

shown to the development of<br />

business. There is mature bank,<br />

transport and other service<br />

infrastructure for foreign<br />

investors’ and companies flies’<br />

activities in the country.<br />

Certainly, application of<br />

innovations, state-of-theart<br />

technologies advanced<br />

experienced and effective<br />

business models, created in<br />

the European countries are<br />

important for us; because<br />

application of innovations<br />

will fully meet the interests of<br />

consumers by rendering high<br />

quality services.<br />

Azerbaijan’s forcing its way<br />

through integration into<br />

Europe in the policy and<br />

measures are undertaken<br />

in this regard as performing<br />

institutional reforms in this<br />

direction, conformance of<br />

legislation and expedient<br />

events, performed in<br />

application of modern<br />

standards under legislation,<br />

application of European<br />

standards in the field of ICT<br />

and involvement of European<br />

companies and investments to<br />

this sector. Thus, information<br />

is provided in the world arena<br />

and request of proposals is<br />

submitted to the advanced<br />

companies in order to<br />

create transparency about<br />

procurement procedures<br />

concerning implementation<br />

of projects and support<br />

participation of foreign<br />

companies.<br />

Today, 10 ICT high rating<br />

companies of the world’s<br />

top 20 companies such as<br />

Microsoft, Cisco Systems,<br />

Hewlett Packard, IBM, Apple<br />

Computer, Intel, Oracle,<br />

Google, Nokia-Siemens<br />

Networks and Ericsson are<br />

operating in Azerbaijan and<br />

this process stimulates direct<br />

foreign investment stream<br />

to the country. As a result,<br />

Azerbaijan holds 39th place<br />

among 144 countries for<br />

the rating of “Capacity for<br />

innovation” according to<br />

the estimations of the “ICT<br />

Development Index” report of<br />

Davos World Economic Forum.<br />

Also according to the “Global<br />

Competitiveness Index” our<br />

country has improved 9 point<br />

and reached to the 46th place<br />

and preserved its leadership<br />

among CIS countries.<br />

It is the result of activities,<br />

performed in propagation of<br />

investments in the country<br />

that investment in the amount<br />

of 525.5 million USD has been<br />

put to this sector in 2011 alone<br />

for the first time during last 10<br />

years and this figure is 2 folds<br />

more than the previous year,<br />

and share of investments in the<br />

total investment, put to the<br />

economy of the country, varies<br />

approximately 3-3, 5%.<br />

Q: What will be the<br />

contribution of Azerbaijan’s<br />

joining to the projects<br />

30 December 2012<br />

www.teletimesinternational.com


“Trans-Eurasia Super In<br />

formation Highway” (TASIM)<br />

and “Europe-Persia Express<br />

Gateway”? How do you assess<br />

the potential of Azerbaijan as a<br />

“technological hub”?<br />

A: The project of “Trans-Asia<br />

Super Information Highway”<br />

(TASIM) is an important<br />

regional initiative and its<br />

purpose is to lay transnational<br />

fiber-optic cable line covering<br />

the Eurasian countries mainly<br />

from the Western Europe till<br />

the Eastern Asia.<br />

Implementation of the TASIM<br />

project from the strategic<br />

point of view will consist of<br />

two stages. In the first stage<br />

the leading regional countries<br />

and operators will create<br />

the main internet transit<br />

infrastructure connecting the<br />

West and the East. This transit<br />

infrastructure will enable<br />

TASIM to be the project which<br />

will meet the requirements of<br />

the commercially beneficial and<br />

highly growing international<br />

IP internet transit market. It is<br />

considered to complete this<br />

process by the end of 2013.<br />

In the second stage the TASIM<br />

will provide connection at a<br />

suitable price to the Central<br />

Asian countries, as well as the<br />

Eurasian as that have no access<br />

to the sea, by using transit<br />

infrastructure. There will be<br />

established new fiber-optic<br />

cable lines according to the<br />

plans for development of the<br />

national telecom infrastructure.<br />

However, existing lines<br />

will be improved from the<br />

technological f of view and<br />

connected to the TASIM n In<br />

the second stage the TASIM<br />

project will be realized in<br />

accordance with the mandate<br />

of the UN.<br />

The project takes into account<br />

laying of the main transit line<br />

routed from Frankfurt to Hong<br />

Kong. This line will connect the<br />

biggest information exchange<br />

centers of Europe and Asia. The<br />

transit line pass to Germany via<br />

China, Kazakhstan, Azerbaijan,<br />

Georgia and Turkey. Reserve No<br />

Transit Line will pass through<br />

Russia, Ukraine and Poland.<br />

The Ministry of<br />

Communications and In<br />

formation Technologies of<br />

the Republic of Azerbaijan<br />

initiated the TASIM project du<br />

ring the ministerial meeting<br />

held in Baku on November 14,<br />

2008 within the framework<br />

of the 14th International<br />

Telecommunication and<br />

Information Technologies<br />

Exhibition and Conference.<br />

On December21, 2009 there<br />

was adopted Resolution on<br />

the TASIM project at the<br />

64th session of the <strong>General</strong><br />

Assembly of the UN. Special<br />

role of the Republic of<br />

Azerbaijan is highly appreciated<br />

in coordination of project in<br />

the Resolution which was<br />

supported and adopted by<br />

consensus of 30 countries. It<br />

is planned to adopt the new<br />

Resolution at the end of 2012.<br />

On July, 2011 there was held<br />

the 1st International Seminar<br />

on TASTM in Azerbaijan<br />

with the participation of the<br />

leading telecom companies<br />

like China Telecom (China),<br />

Kaztranscom (Kazakhstan),<br />

Rostelecom (Russia), Turk<br />

Telecom (Turkey) and Pantel<br />

(European Union). As a result<br />

of event the <strong>Secretary</strong> of<br />

project has been established<br />

and operators have agreed<br />

to work out Memorandum<br />

of understanding which gave<br />

detailed information about<br />

the establishment of TASIM<br />

Consortium.<br />

The participation of Azerbaijan<br />

in “Europe-Persia Express<br />

Gateway” (EPEG) project<br />

enables to use Azerbaijan<br />

for establishment of transit<br />

route as a part of the strategy<br />

to evolve our country into a<br />

techno logical hub. We suppose<br />

that participation of Azerbaijan<br />

in this project will improve<br />

connection of our country with<br />

international internet. The<br />

participation in this project<br />

indicates the high technological<br />

level of Delta Telecom operator<br />

of Azerbaijan.<br />

<strong>General</strong>ly, Azerbaijan has great<br />

geographical and commercial<br />

potential which increases<br />

evolving the potential of our<br />

country into technological hub.<br />

TASIM, EPEG, Azercosmos and<br />

Regional Innovation Zones will<br />

sup port the implementation<br />

of these plans Projects,<br />

implemented all together, will<br />

connect vast territories with<br />

reliable, high-speed Internet<br />

and all other communications<br />

Q: Azerbaijan will launch its<br />

first communications satellite<br />

at the end of 2012. What does<br />

this achievement represent<br />

for the development of the<br />

country?<br />

A: One of the strategic projects<br />

carried out by the government<br />

of Azerbaijan, as a part of<br />

a wider plan of economic<br />

diversification and introduction<br />

to new industry fields, is the<br />

launch of a telecommunications<br />

satellite into upcoming years.<br />

Information and<br />

communications technologies<br />

have been declared to be the<br />

second priority area in the<br />

national economy after the<br />

oil industry. Consequently<br />

the share of this field in the<br />

economy is growing at an<br />

increasing rate, arid satellitebased<br />

communications are<br />

coming to play an ever-greater<br />

role in this respect. As such, it<br />

can confidently be stated that<br />

the current and forthcoming<br />

satellite projects cannot<br />

be regarded as having only<br />

political or purely commercial<br />

aspirations, but they are<br />

also sustainable and viable<br />

projects aimed at the longterm<br />

economic and social<br />

development of the country.<br />

Therefore, Azerbaijan has<br />

decided to ad dress these<br />

challenges by harnessing space<br />

tools since it possesses huge<br />

economic and intellectual potential<br />

for sustainable viability<br />

of space industry. By integrating<br />

the advantages of space<br />

capabilities to the national<br />

development program, the<br />

government of Azerbaijan aims<br />

to bring the country into new<br />

heights in terms of its economic<br />

power, intellectual capacity and<br />

information security. Economic<br />

benefits and information security<br />

brought about by utilization<br />

of satellite-based technologies<br />

will further enhance Azerbaijan’s<br />

contribution to regional<br />

development.<br />

The development and use<br />

of satellite communication<br />

services in the country has<br />

been promoted an accelerated<br />

through various legal and<br />

implementation measures.<br />

The State Program for the<br />

creation and development<br />

of the space industry, signed<br />

by the President in 2009,<br />

laid the foundation for<br />

the commencement and<br />

development of activities in<br />

this sphere. To materialize this<br />

political aspiration, Azercosmos<br />

was incorporated for<br />

commercialization of the space<br />

projects. Azercosmos is the<br />

first satellite operator in both<br />

Azerbaijan and Caucasus. It<br />

will provide satellite-delivered<br />

communication services<br />

and highly reliable satellite<br />

platforms to broadcasting,<br />

broadband, and government<br />

customers after the launch of<br />

Azerspace-1.<br />

Azerspace-1 which is planned<br />

to he launched in early 2013<br />

December 2012<br />

www.teletimesinternational.com<br />

31


and is expected to stay in<br />

orbit for 1 5 years, is being<br />

manufactured by the Orbital<br />

Sciences Corporation of the<br />

U.S. on a flight-proven Star-2<br />

platform. The launch vehicle<br />

for the satellite is the highly<br />

reliable Arien-5 of the French<br />

Arianespace. Azerspace-1 will<br />

be placed in the orbital slot,<br />

at 46 degrees east longitude<br />

and will have a wide coverage<br />

area including Europe, Africa,<br />

Central Asia, Caucasian<br />

countries and the Middle East.<br />

The loan agreement for<br />

the funding of the launch<br />

ofAzerspace-1 was included<br />

in the list of Best Financial<br />

Deals for 2011” by the<br />

magazine ‘Global Trade<br />

Review”. Azercosmos was<br />

also able to secure a robust<br />

insurance coverage and highly<br />

competitive premium rate<br />

for Azerspace-1, at the lowest<br />

rate in the satellite insurance<br />

market since 1999.<br />

Azerconsmos also pays close<br />

attention to introducing<br />

remote-sensing programs and<br />

launching Earth-observation<br />

satellites, which carry great<br />

importance and value for<br />

national security and economic<br />

infrastructure. As a low Earthorbiting<br />

satellite, the application<br />

fields of remote-sensing<br />

satellites in Azerbaijan have<br />

been studied in detail based on<br />

both local and foreign market<br />

research. Consequently, the<br />

relevant work has commenced<br />

on building the satellite based<br />

on the existent demand and<br />

within the required technical<br />

parameters.<br />

Azercosmos has embarked<br />

upon a variety of space-related<br />

activities which will boost<br />

the innovation and scientific<br />

research cape city in the<br />

country, but also lead to the<br />

development of manufacturing<br />

capacity in space technologies,<br />

and expand international<br />

integration.<br />

Q: Development of broad band<br />

internet is the one of main tar<br />

gets of several governments.<br />

Which achievements does<br />

Azerbaijan want to reach in<br />

this field by 2015?<br />

A: In the recent years internet<br />

services have also been<br />

dynamically developing<br />

according to the process in<br />

the ICT sector. Now, license<br />

for internet services is not<br />

required and this condition<br />

for development of small and<br />

medium-size entrepreneurship.<br />

With a view to provide high<br />

qualified fixed network<br />

services for population and<br />

organizations, reconstruction<br />

of Automatic Switching<br />

Centre has been done and full<br />

digitalization of fixed network<br />

in the country has successfully<br />

been completed. “AzData<br />

corn”, “Deltatelecom” and<br />

“Azertelecom” networks were<br />

linked to all regional centres of<br />

the country and approximately<br />

35% of rural areas with highspeed<br />

internet, and this<br />

opens wide opportunities<br />

for increasing the coverage<br />

level of ICT in the society and<br />

application of e-services in the<br />

regions.<br />

More than 40 ISPs operate<br />

Azerbaijan in severe market<br />

competition condition.<br />

Substantially, broadband<br />

internet services are provided<br />

by “Aztelecornnet” and<br />

“AzDataCom” state providers<br />

and several other private<br />

providers in other cities and<br />

regional centers of country.<br />

Currently, the number of<br />

internet users, computers and<br />

broadband internet subscribers<br />

per 100 inhabitants is 65, 20 and<br />

30 respectively. In the resent<br />

years, prices of broadband<br />

ADSL internet services have<br />

been decreased in multiple<br />

times and monthly payment for<br />

unlimited internet services with<br />

1 Mb/s speed by connecting to<br />

ADSL techno logy is less than 5<br />

AZN (around 5 Euros).<br />

Based on international<br />

institutions in the field,<br />

development directions<br />

and the recommendation<br />

of European Commission,<br />

Broad band Commission on<br />

Digital Development of UN<br />

about broadband internet<br />

services for 2015 on the basis<br />

of international practice, the<br />

development target has been<br />

chosen in this field. With a view<br />

to avoid the existing problems,<br />

as well as reach mentioned<br />

targets the main activity<br />

directions have been generally<br />

defined.<br />

Currently MC&IT and Azerbaijan<br />

State Oil Fund are preparing<br />

development of broadband<br />

inter in Azerbaijan. Under the<br />

strategy it is planned to reach<br />

broadband internet subs 20<br />

per 100 inhabitants in 2015. The<br />

strategy also plans to reach<br />

internet access speed to 30<br />

Mb/s, 10 Mb/s and 5 Mb in Baku<br />

city, the regional centers and<br />

rural areas respectively. 90% of<br />

households, in this strategy, are<br />

planned to get internet access<br />

too.<br />

Q: Azerbaijan re presented<br />

with the great number of staffs<br />

and overwhelming majority<br />

of private companies in Dubai<br />

at the event of International<br />

Telecommunication Union.<br />

How do you think, why the<br />

event was significant?<br />

A: You are right that Azerbaijan<br />

represented with 30 leading<br />

companies of country in the<br />

“<strong>ITU</strong> Telecom 2012”. They are<br />

the companies gained great<br />

achievements on e-government,<br />

program provision, mobile<br />

and fixed communication,<br />

computer production, space<br />

industry and other directions<br />

of ICT. L am delighted to note<br />

that additional program provision<br />

in ICT field and export to<br />

local computers produced are<br />

fulfilled. Simultaneously, the<br />

representatives of Cybernetic<br />

Institute of National Scientific<br />

Academy determined the scientifically-technical<br />

perspectives<br />

of this field, Information Technologies<br />

Institute and Research<br />

Centre on High Technologies of<br />

our Ministry participated in this<br />

event besides the mentioned<br />

companies. The increasing<br />

political-economic reputation<br />

and investment involvement,<br />

as well as reports of reliable<br />

international centers of Azerbaijan<br />

to the region is the great<br />

example.<br />

An official Baku has been added<br />

to the list of countries implementing<br />

the most reforms of<br />

the world in the “Doing Business-2009”<br />

re port of World<br />

Bank. Simultaneously, our<br />

country has shown the best<br />

result in “Global Competitiveness<br />

Index” of World Economic<br />

Forum formed for the period<br />

of 2010-2011 years in CIS region.<br />

Azerbaijan could keep its position<br />

in 2012-2013.<br />

<strong>General</strong>ly, ICT sector of country<br />

is being speedily developed<br />

during the last 7 years (2004-<br />

2011), noted field was increased<br />

6 folds, average annual growth<br />

race is 25-30%.<br />

Deliberate long-termed<br />

development strategy,<br />

adopted state programs, and<br />

implemented projects, suitable<br />

competitive-investment<br />

environment established in<br />

the sector and mainly state<br />

support play the great role<br />

in this increase. The number<br />

of Azerbaijani companies<br />

participated in “<strong>ITU</strong> Telecom<br />

2012” this year and the space of<br />

Azerbaijan’s national pavilion<br />

was 2 times larger than they<br />

were last year.<br />

32 December 2012<br />

www.teletimesinternational.com


James P. Farwell & Rafal Rohozinski<br />

The new reality of cyber war<br />

The June 2012 report by New<br />

York Times chief Washington<br />

correspondent David Sanger that<br />

the Stuxnet cyber worm was<br />

only part of a broader operation,<br />

Olympic Games, launched<br />

against Iran by the United States<br />

and Israel affirmed what many<br />

suspected: cyber attack is not a<br />

distant theoretical probability.<br />

Stuxnet was the first alleged<br />

identified instance of weaponised<br />

computer code or<br />

malware employed as a ‘use of<br />

force’. But it was not alone. Two<br />

other targeted computer viruses<br />

for espionage have surfaced:<br />

Duqu in September 2011, followed<br />

by Flame in May 2012.<br />

Media reports allege that both<br />

also targeted Iran.<br />

As tools of espionage, use of<br />

neither would qualify as a use of<br />

force, but reflect new emphasis<br />

on cyber tools. Of the two, Flame<br />

drew wider attention. Apparently<br />

20 times more complex than<br />

Stuxnet, Flame affected computers<br />

in Lebanon, the United Arab<br />

Emirates, the West Bank and<br />

Iran. It is said to have gathered<br />

intelligence by logging keyboard<br />

strokes, recording conversations<br />

by activating microphones, and<br />

taking screen shots. At Iran’s oil<br />

ministry and oil-export terminal,<br />

the virus also erased information<br />

on hard discs while gathering<br />

information.<br />

Many attribute it to the United<br />

States and Israel. These allegations<br />

remained unconfirmed by<br />

either government.<br />

A new era<br />

These developments put the<br />

spotlight on a new era of international<br />

engagement. Israeli<br />

sources have long boasted about<br />

Israel’s involvement in Stuxnet.<br />

The US/Israeli use of Stuxnet as<br />

reported in detail by Sanger has<br />

arguably created a new de facto<br />

norm for the conduct of cyber<br />

engagements other nations can<br />

follow or imitate. Previously, a<br />

key constraint on the use of software<br />

as a weapon has been the<br />

potential for legal liability arising<br />

out of collateral damage inflicted<br />

upon innocent parties not targeted.<br />

In practice, software can be<br />

narrowly targeted to surmount<br />

that challenge.<br />

What Stuxnet shows is that it<br />

is possible to have the specific<br />

intended effect while avoiding<br />

or minimising unplanned side<br />

effects by clearly differentiating<br />

between the propagator, or<br />

boost-phase code that disseminates<br />

the program, and the<br />

actual payload code that creates<br />

the physical effect on a target<br />

(the distinction between the<br />

gift wrapping and the gift). The<br />

reported operation did apparently<br />

limit the scope of damage.<br />

Stuxnet shows that one can<br />

surmount concerns that malware<br />

would take down the global network,<br />

not just a specific target.<br />

The lesson is that cyber weapons<br />

are in a different category from<br />

nuclear devices, which have<br />

little practical use except as a<br />

deterrent.<br />

The rules of conduct for the use<br />

of code are evolving. As parties<br />

develop more sophisticated capabilities<br />

and acquire experience<br />

in their use, the picture will grow<br />

more complicated and nuanced.<br />

The strategic situation contains<br />

echoes of the period between<br />

the two world wars, when rapid<br />

developments in new technologies<br />

and domains of war-fighting<br />

preceded an understanding of<br />

how effectively to employ them<br />

operationally. Tanks changed the<br />

way armies engaged in battle.<br />

But despite British and German<br />

experimentation with armour in<br />

the inter-war period, armoured<br />

December 2012<br />

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33


tactics could only be proven and<br />

fully developed on the battlefield<br />

from 1939 onwards. There are,<br />

moreover, significant differences<br />

of view about whether<br />

the Germans, renowned for<br />

their blitzkrieg tactics, properly<br />

understood the strategic use of<br />

armour for manoeuvre warfare.<br />

Reports that two states have<br />

employed code against another<br />

state against which war has not<br />

been declared undercuts the<br />

common view that risks of escalation<br />

render state-to-state cyber<br />

war implausible. Sanger reported<br />

that President George W. Bush,<br />

under whom Olympic Games was<br />

apparently initiated, desired that<br />

use of Stuxnet not violate the<br />

rules of armed conflict.<br />

The Law of Armed Conflict does<br />

not prohibit damage to such<br />

critical infrastructure. But a<br />

strength of using code is that the<br />

targeting process can manage<br />

the risks.<br />

Stuxnet may appear as embryonic<br />

as the British Mk.1 tanks<br />

that made their debut at the<br />

Battle of the Somme in 1916.<br />

But technology moves quickly.<br />

Modern states rightly fear cyber<br />

war. Evolving technology is accelerating<br />

the flow of information,<br />

placing unique pressures on<br />

decision-making. Responding to<br />

cyber attack may require making<br />

decisions at network speed using<br />

systems that are themselves<br />

targeted. The potential for cascading<br />

effects is amplified by the<br />

interconnectedness of cyberspace.<br />

Stuxnet worked leisurely.<br />

Future combat in cyberspace<br />

may be more akin to the global<br />

trading system than existing<br />

forms of kinetic engagement,<br />

and present a different strategic<br />

calculus.<br />

Active defence versus first strike<br />

As described by Sanger, Olympic<br />

Games puts into question the<br />

existing discourse over US doctrines<br />

of active defence versus<br />

offensive use of malware and<br />

the strategic communication<br />

employed to explain US actions.<br />

Nations have been rightfully unwilling<br />

to disclose their doctrines<br />

for the offensive use of cyber<br />

weapons. Open-source discourse<br />

has centred on delineating<br />

passive and active defence.<br />

No nation has been willing to<br />

declare its intent to use cyber<br />

weapons offensively for a first<br />

strike. But Stuxnet blurs the lines<br />

between what might constitute<br />

active defence and offense. It<br />

also moves the impact from the<br />

strictly cyber realm to one that<br />

may entail mechanical or physical<br />

damage.<br />

Passive cyber defence is easiest<br />

to grasp. The notion includes<br />

firewalls, cyber ‘hygiene’ that<br />

trains an educated workforce to<br />

guard against errors or transgressions<br />

that can lead to cyber<br />

intrusion, detection technology,<br />

‘honey pots ‘ or decoys that<br />

serve as diversions, and managing<br />

cyberspace risk through<br />

collective defence, smart partnerships,<br />

information training,<br />

greater situation awareness,<br />

and establishing secure, resilient<br />

network environments.<br />

Active cyber defence is a more<br />

elusive notion. Industry operates<br />

under different legal constraints<br />

than the military and they view<br />

the notion of active defence differently.<br />

For industry, the notion<br />

includes working actively with<br />

private-sector partners to identify<br />

and interdict cyber intrusions.<br />

Action beyond that raises real<br />

concerns. Under US law causing<br />

more than $5,000 of damage to<br />

another computer is a felony.<br />

US anti-trust and privacy laws<br />

raise other concerns. Yet private<br />

industry owns and operates 90%<br />

of US civilian critical infrastructure.<br />

Its concerns will grow as<br />

future malware come into play,<br />

for current laws and operational<br />

capabilities provide inadequate<br />

defences.<br />

The public sector operates<br />

under different rules. While<br />

private parties can take action<br />

unless prohibited by law, the<br />

military can act only within its<br />

prescribed authority. As a result,<br />

the military’s notion of active<br />

defence remains unformed: no<br />

one is certain what it means or<br />

how to apply it. The Pentagon<br />

has made clear it would employ<br />

force to defend against cyber<br />

attacks. But who has the authority<br />

to launch what actions, and<br />

under what circumstances? If<br />

a hostile force targets a naval<br />

cruiser for imminent attack, does<br />

the captain hold the authority to<br />

launch a preemptive attack? If he<br />

doesn’t, who does? Should he try<br />

to move his vessel out of danger?<br />

What if he cannot? How can he<br />

‘actively’ mount a defence?<br />

US Cyber Command Chief <strong>General</strong><br />

Keith Alexander has declared<br />

that ‘a Commander’s right to<br />

self-defence is clearly established<br />

in both U.S. and international<br />

law’. He did not define what<br />

that entails. Would it include hot<br />

pursuit? Former US Air Force<br />

<strong>Secretary</strong> Michael Wynne has<br />

stated that<br />

US law allows ‘hot pursuit’ of<br />

criminals, enabling law enforcement<br />

to track and address cyber<br />

crime through the digital world.<br />

That doctrine is well accepted in<br />

crime fighting, but where it applies<br />

may hang on the status of<br />

an attacker. What rules govern<br />

may depend upon the status<br />

of an event as criminal activity,<br />

a military attack or a terrorist<br />

action.<br />

Hot pursuit may well apply in<br />

cyberspace. Many concur that<br />

the law of the sea sanctions the<br />

use of the doctrine in the maritime<br />

domain, which along with<br />

air, land, and space is viewed as<br />

a global commons. President<br />

Barack Obama has declared that<br />

cyberspace is also a ‘recognized<br />

strategic commons’.<br />

A use of force?<br />

For the most part the US discussion<br />

on cyber war has revolved<br />

around these notions of defence.<br />

But Olympic Games has apparently<br />

shown that the United<br />

States and Israel will use cyber<br />

weapons offensively.<br />

The United States has previously<br />

said that its cyber strategies<br />

would respect international law.<br />

The key normative standards<br />

nest in United Nations Charter<br />

articles 2(4) and 51. Article 2(4)<br />

prohibits the ‘threat or use of<br />

force against the territorial<br />

integrity or independence of any<br />

state’. Article 51 states that nothing<br />

‘in the present Charter shall<br />

impair the inherent right of individual<br />

or collective self-defense if<br />

an armed attack occurs against a<br />

Member of the United Nations’.<br />

But ‘force’ is not defined. There<br />

is no international convention<br />

that defines whether the use<br />

of software code should be<br />

deemed equivalent to the use of<br />

force. Cyber expert Herbert Lin<br />

has argued that the term almost<br />

certainly covers conventionalweapon<br />

attacks that injuring<br />

persons or irreparably damage<br />

property, but excludes economic<br />

or political acts (such as sanctions)<br />

that do not. In that view,<br />

Stuxnet would have constituted<br />

a use of force only if it had<br />

inflicted damage comparable<br />

to a kinetic attack, but it injured<br />

no one and the Iranians make<br />

no claim of irreparable physical<br />

damage.<br />

But the US government apparently<br />

did view Olympic Games<br />

as a use of force. The strategic<br />

objective was not only to retard<br />

Iran’s progress in developing nuclear<br />

weapons but to persuade<br />

Israel that using cyber weapons<br />

34 December 2012<br />

www.teletimesinternational.com


mooted the need for a kinetic<br />

attack on Tehran’s nuclear institutions.<br />

Both the G.W. Bush and<br />

Obama administrations strongly<br />

believed that Iran’s nuclearweapons<br />

programme had to be<br />

stopped. The United States has<br />

clearly felt a need to communicate<br />

that it would not tolerate<br />

Iranian intransigence. Former<br />

CIA Director Michael Hayden<br />

stated that:<br />

This is the first attack of a major<br />

nature in which a cyberattack<br />

was used to effect physical<br />

destruction. And no matter what<br />

you think of the effects – and I<br />

think destroying a cascade of<br />

Iranian centrifuges is an unalloyed<br />

good – you can’t help but<br />

describe it as an attack on critical<br />

infrastructure.<br />

This implies that the Obama<br />

administration was willing in<br />

this case to affirm G.W. Bush’s<br />

policy of pre-emption to deal<br />

with a threat deemed vital to<br />

national security interests, was<br />

willing to act in concert with a<br />

‘coalition of the willing’ (even<br />

if the United States and Israel<br />

were the sole partners) to keep<br />

weapons of mass destruction<br />

out of the hands of rogue states,<br />

and that this concern trumps<br />

commitments – including those<br />

expressed in the US 2011 Cyber<br />

Strategy, to embrace multilateralism<br />

and partnership for cyber<br />

strategy.<br />

It seems evident that the<br />

intent of Olympic Games was<br />

to irreparably damage critical<br />

infrastructure. The tenor of the<br />

operation and strategic intent –<br />

and Hayden’s words – strongly<br />

imply that White House and<br />

Department of Defense lawyers<br />

considered the operation a<br />

use of force. The issue must<br />

have been considered. One can<br />

presume the answer the lawyers<br />

provided was affirmative.<br />

Legally, did the White House exceed<br />

its jurisdiction either under<br />

the Constitution, which reserves<br />

to Congress the right to declare<br />

war, or under the War Powers<br />

Resolution of 1973? It is hard to<br />

qualify Olympic Games as an act<br />

of war. US statute defines that as<br />

armed conflict, whether or not<br />

war has been declared, between<br />

two more nations or between<br />

military forces of any origin. It<br />

is significant that Iran has not<br />

suggested the use of Stuxnet<br />

constituted an act of war.<br />

The War Powers Resolution<br />

offers a more nuanced issue.<br />

The resolution applies to the<br />

introduction of ‘United States<br />

Armed Forces into hostilities or<br />

into situations where imminent<br />

involvement in hostilities is<br />

clearly indicated by the circumstances’.<br />

How does a nation use force<br />

except through military means?<br />

One can debate whether nonuniformed<br />

Stuxnet operations<br />

personnel qualify under the<br />

notion of distinction as combatants,<br />

but one can make a strong<br />

argument that Olympic Games<br />

fell under the ambit of the resolution.<br />

Presumably the response<br />

is that it constituted a covert<br />

action that did not trigger the<br />

operation of the law.<br />

Given that the objective was to<br />

destroy an enemy’s critical warfighting<br />

capacity, though, one<br />

might wonder whether the logic<br />

in avoiding the jurisdiction of the<br />

resolution – or Congress’s power<br />

to declare war – would apply to a<br />

modern Pearl Harbor. The air war<br />

in Libya may offer a clue to policy<br />

mindsets. Denying any obligation<br />

to ask Congress for authorisation<br />

to act, the Obama administration<br />

argued that ‘U.S. operations do<br />

not involve sustained fighting<br />

or active exchanges of fire<br />

with hostile forces, nor do they<br />

involve ground troops’.<br />

Similarly, Stuxnet did not involve<br />

armed fighting or exchanges of<br />

fire with hostile forces, although<br />

future engagements may focus<br />

debate on what constitutes<br />

armed forces. That cyber weapons<br />

often do not entail uniformed<br />

individuals firing rockets,<br />

dropping bombs, or firing guns<br />

does not, looking over the horizon,<br />

inherently render its users<br />

non-combatants.<br />

What if Iran decided to respond<br />

kinetically? How does that alter<br />

the authority of the White House<br />

to continue a programme?<br />

Stuxnet was a fire-and-forget<br />

weapon. Although code can be<br />

designed to hit a specific target,<br />

in practice, once launched, there<br />

was no control over the consequences<br />

it inflicted – or upon<br />

whom. Indeed, Sanger reported<br />

that American officials were<br />

quite unhappy when Stuxnet<br />

got loose on the Internet. The<br />

operational environment in war<br />

is random. The collateral effects<br />

of a cyber weapon add a new<br />

dimension to that challenge.<br />

One must think beyond the Iranian<br />

situation. What if Congress<br />

wanted a president to cease<br />

an operation that could not be<br />

terminated? Olympic Games sidestepped<br />

the problem, but hardly<br />

obscures the need for future<br />

strategic thinking.<br />

Whether there was use of force<br />

raises other issues. Olympic<br />

Games involved a pattern of engagements.<br />

One must consider<br />

the larger implications of an<br />

individual event. Does a pattern<br />

convert employment of cyber<br />

weapons into a use of force? The<br />

answer isn’t clear. The unpredictable<br />

nature of damage that cyber<br />

attack can inflict may require<br />

a new definition of war.<br />

Intent may also matter in determining<br />

whether an engagement<br />

constituted a use of force.<br />

Open-source reporting indicates<br />

that any damage inflicted on the<br />

Natanz uranium-enrichment facility<br />

was temporary and reparable.<br />

But that was not the intent.<br />

What if someone dropped a<br />

bomb on London or New York<br />

that failed to detonate? Isn’t<br />

that a use of force – or possibly,<br />

depending on the facts, an act<br />

of war? Deciphering intent may<br />

pose a challenge, but in law it<br />

may be objectively inferred. The<br />

case of unexploded ordinance<br />

seems easier to grasp, but how<br />

deep is the distinction between<br />

that and a cyber worm that fails?<br />

This issue needs debate and<br />

should enter future strategic<br />

calculations.<br />

Finally, did Article 51 of the UN<br />

Charter justify Olympic Games?<br />

Like ‘force’, ‘armed attack’<br />

remains undefined, even where<br />

force is clearly employed. Certainly<br />

the implications of new<br />

technologies for Article 51 or<br />

other international conventions<br />

remain unclear. This consideration<br />

matters enormously to<br />

December 2012<br />

www.teletimesinternational.com<br />

35


Israel, which contends that a<br />

nuclear first strike would destroy<br />

the nation, preventing or mooting<br />

a response. Washington worries<br />

about Israeli security, but<br />

also a potential and de-stabilising<br />

Middle East arms race should<br />

Iran acquire a nuclear weapon.<br />

Strategic implications<br />

The use of malware by state<br />

actors has altered the realities<br />

of cyber attack. History teaches<br />

that once weapons technology<br />

becomes feasible, states deploy<br />

it. Today the world may confront<br />

a dangerous technology race<br />

characterised by rapidly evolving<br />

and lethal weapons.<br />

Clausewitz believed that in<br />

warfare, the advantage rested<br />

with the defence. Cyber reverses<br />

that equation. It also offers the<br />

potential to build the fog of<br />

war through the ability to effect<br />

disruption, deception, confusion<br />

and surprise. We are only beginning<br />

to envisage the potential<br />

for different forms of malware,<br />

or the strategies or tactics employed<br />

to use it.<br />

A cyber-security tool may<br />

require millions of lines of code<br />

and a complex system to track<br />

and identify events. Malware<br />

requires a lot less. Computer<br />

code can be designed to evolve<br />

rapidly, mutating faster than<br />

defences can be mustered. Code<br />

can be highly targeted. It can<br />

leverage social and technological<br />

vectors. It can render a cyber<br />

defence obsolete within seconds.<br />

It can overwhelm a system<br />

that may have taken years to<br />

construct. Clausewitz believed<br />

that the advantages enjoyed by<br />

defence required that an offense<br />

employ greater resources. Cyber<br />

reverses that equation. Nations<br />

may now shift away from a<br />

refusal to use cyber weapons for<br />

first strike. That in and of itself<br />

complicates both offensive and<br />

defensive strategies.<br />

Although some have argued<br />

that Olympic Games lowered the<br />

threshold for the use of cyber<br />

weapons, it may in fact actually<br />

raise it. States may recognise a<br />

higher responsibility to design<br />

weapons that offer strong<br />

assurance of striking only the<br />

intended targets. That was the<br />

intent of Stuxnet’s planners and<br />

designers. But matters could<br />

have worked out much differently.<br />

Robert Burns was right:<br />

the best laid plans of mice and<br />

men often go awry.<br />

Stuxnet shows that creating effective<br />

malware turns on imagination,<br />

technical expertise and<br />

ingenuity. But to deliver code as<br />

a warhead also requires highly<br />

specific domain experience and<br />

superior intelligence capabilities<br />

that often only states possess.<br />

Our view is that malware is not a<br />

wide-area weapon. As it evolves,<br />

it will be used narrowly to attack<br />

particular targets and to generate<br />

specific shaping effects.<br />

Olympic Games raises the veil<br />

on key strategic implications.<br />

Stuxnet aimed to destroy a specific<br />

capability. But it importantly<br />

illustrates the political nature of<br />

war. Achieving a strategic political<br />

objective does not necessarily<br />

require destroying an enemy.<br />

Olympic Games was devised<br />

when G.W. Bush pushed for an<br />

alternative to the unpleasant<br />

choice between allowing Iran to<br />

develop a nuclear-weapons capability<br />

or halting the programme<br />

through kinetic attack. The cyber<br />

programme bought time in<br />

which to employ punishing sanctions<br />

and to signal to Iran that<br />

other nations would not tolerate<br />

an Iranian nuclear-arms programme.<br />

The lesson is that cyber<br />

weapons may offer non-kinetic<br />

ways to disrupt an operational<br />

capability of an adversary.<br />

Future cyber weapons will similarly<br />

aim to constrain the ability<br />

of an adversary to manoeuvre,<br />

coordinate or synchronise, and<br />

to divert enemy commanders<br />

from focusing on the achievement<br />

of their own objectives.<br />

Stuxnet succeeded splendidly<br />

in creating confusion. Sanger<br />

reports that Iranians came to distrust<br />

their own instruments. The<br />

idea, he quotes one source, ‘was<br />

to mess with Iran’s best scientific<br />

minds’ and ‘make them feel they<br />

were stupid’.<br />

Conceptually, unsettling the<br />

consciousness of an adversarial<br />

commander, or a CEO or government<br />

official, causing a loss of<br />

belief in his ability to control<br />

events and depriving him of control,<br />

helps disrupt an adversary’s<br />

ability to fulfil its objectives.<br />

Stuxnet’s creators merit high<br />

marks for recognising the value<br />

of that goal. While the final result<br />

fell short, open-source reporting<br />

indicates that Stuxnet did retard<br />

Iranian progress.<br />

As reported in open sources,<br />

Olympic Games exemplified an<br />

operation intended to reduce<br />

the resistance of a rival system<br />

and to inflict attrition upon<br />

its resources. Destruction<br />

of an asset is one of many<br />

potential objectives that cyber<br />

weapons can achieve. Future<br />

cyber weapons may disrupt<br />

communications systems or<br />

the ability of adversaries to<br />

cohesively operate air, naval<br />

or ground forces. They could<br />

slow the speed at which an<br />

adversary is able to mass forces<br />

or deploy assets, destroying<br />

precious momentum vital for<br />

an adversary’s offense.Indeed,<br />

smart strategy is often less<br />

about destroying an enemy<br />

than paralysing command and<br />

control, and neutralising an<br />

adversary’s operational ability.<br />

One unfortunate development<br />

has been the leaks from<br />

Washington and Israel (where<br />

sources have long claimed<br />

credit for Stuxnet) about<br />

Olympic Games. These present a<br />

strategic challenge. An obstacle<br />

confronting any nation that<br />

wishes to retaliate against a<br />

cyber intrusion is the need<br />

to identify the intruder. The<br />

leaks solved that problem for<br />

Iran, and opened the United<br />

States and Israel to potential<br />

counterpunches that would<br />

entail far less stigma for Tehran<br />

than action against a putative<br />

attacker whose guilt could not<br />

be confirmed.<br />

Finally, it is worth noting that<br />

the weapons employed by<br />

Olympic Games are largely<br />

indistinguishable from the<br />

technology that cyber criminals<br />

employ. That will make<br />

international treaties and<br />

conventions aimed at limiting<br />

cyber crime more difficult<br />

to secure. The utility and<br />

effectiveness of these weapons<br />

for national-security interests<br />

may trump policy considerations<br />

that favour better global policing<br />

of cyber crime.<br />

There has been a widespread<br />

view that criminal entrepreneurs<br />

or state-sponsored proxies,<br />

acting at arm’s length to insulate<br />

states from culpability for their<br />

policies, would emerge as the<br />

real challenges in a cyber era in<br />

which one individual can change<br />

the way the world does business.<br />

But now it seems that state-tostate<br />

engagement, whether or<br />

not it meets the conventional<br />

definitions of the use of force or<br />

an act of war, will define a new<br />

reality and require new strategic<br />

calculations. The discourse<br />

arising out of reports about<br />

Olympic Games underscores<br />

why the United States and<br />

other countries should engage<br />

in a transparent debate over<br />

whether or how cyber weapons<br />

should be employed. Every nation<br />

– including civilian as well as<br />

government institutions – must<br />

develop strategies to address<br />

these new realities.<br />

36 December 2012<br />

www.teletimesinternational.com


Mobilink to invest USD 1 billion<br />

to enhance nationwide mobile network<br />

Jo Lunder, Group CEO, VimpelCom briefs PM on preparations for 3G services<br />

PM Raja Pervez Ashraf in a meeting with Mr. Jo Lunder, Group CEO of VimpelCom. Mr. Ahmed Abou Doma, Group CEO of Orascom Telecom,<br />

Mr. Robert Conway, Chief International Affairs Officer, VimpelCom and Mr. Rashid Khan, President & CEO of Mobilink are also seen.<br />

A delegation comprising senior<br />

management from VimpelCom,<br />

the parent company of<br />

Mobilink, called on Prime<br />

Minister Raja Pervez Ashraf at<br />

Prime Minister House recently.<br />

The delegation was headed<br />

by Jo Lunder, Group CEO,<br />

VimpelCom who apprised the<br />

Prime Minister on VimpelCom’s<br />

global operations and the<br />

significance of the Pakistani<br />

market for VimpelCom’s<br />

growth strategy.<br />

Mobilink will be investing<br />

over USD 1 billion towards<br />

the enhancement of its voice<br />

and data services, paving the<br />

way towards introducing 3G<br />

services as soon as it is licensed<br />

in Pakistan. This was shared<br />

with the Honorable Raja Pervez<br />

Ashraf, Prime Minister of<br />

Pakistan by Jo Lunder, Group<br />

CEO, VimpelCom, during the<br />

meeting.<br />

VimpelCom continues to have<br />

a positive outlook on its operations<br />

in Pakistan, with Mobilink<br />

already having invested over<br />

USD 3.9 billion till date as part<br />

of its vision to reshape lives<br />

through connectivity. The<br />

additional investment of USD<br />

1 billion is part of VimpelCom’s<br />

aggressive plans to further consolidate<br />

its leadership position<br />

in Pakistan with the deployment<br />

of state-of-the-art nextgeneration<br />

mobile network<br />

equipment.<br />

Jo Lunder, Group CEO of<br />

Vimpelcom, highlighted, “The<br />

investment on our mobile<br />

network is a continuation of<br />

Mobilink’s promise made at<br />

the start of 2012 to create a<br />

paradigm shift in Pakistan’s cellular<br />

environment. Mobilink will<br />

sustain its focus on infrastructure<br />

investment, increased<br />

coverage and great customer<br />

relationship management to<br />

provide our valued customers<br />

with the best cellular experience<br />

in Pakistan!”<br />

Ahmed Abou Doma, Group<br />

Chief Executive Officer of<br />

Orascom Telecom, added, “This<br />

strategic investment is part of<br />

our commitment to provide<br />

leading-edge, high-quality<br />

mobile broadband and voice<br />

services to our customers in<br />

Pakistan.”<br />

Mobilink has announced<br />

the signing of a five year<br />

agreement with Huawei and<br />

Alcatel-Lucent for the design,<br />

purchase, deployment, and<br />

maintenance of state-of-the-art<br />

next-generation mobile network<br />

equipment. In addition<br />

to a superior network performance,<br />

Mobilink also expects<br />

that the improved capabilities<br />

will allow the company to<br />

significantly increase network<br />

efficiency to enhance customer<br />

experience.<br />

The year 2012 has been another<br />

landmark year for Mobilink,<br />

with the investment on the<br />

mobile network upgrade being<br />

a continuation of Mobilink’s<br />

focus on the enhancement<br />

of infrastructure and<br />

coverage footprint as well<br />

as on developing superior<br />

customer relationships. The<br />

investment plans follows the<br />

implementation of Mobilink’s<br />

Intelligent Network (IN), which<br />

has enabled subscribers more<br />

control and freedom over<br />

their services, and provided a<br />

consumer experience that is<br />

the best in business.<br />

Mobilink has witnessed<br />

unparalleled growth over the<br />

last few years as a result of a<br />

continued focus on investing in<br />

cutting edge technology, which<br />

has brought uninterrupted<br />

connectivity to over 36 million<br />

customers of Mobilink in<br />

20,000 cities, towns and<br />

villages across Pakistan.<br />

December 2012<br />

www.teletimesinternational.com<br />

37


Samsung demands<br />

Apple retrial<br />

Apple and Samsung will once<br />

again square up over rounded<br />

corners and other elements<br />

of smartphone design, as a<br />

US judge considers whether<br />

to overturn or enlarge the<br />

$1bn verdict against the South<br />

Korean group.<br />

Judge Lucy Koh and legal teams<br />

from the two leading smartphone<br />

makers will meet in San<br />

Jose, California on Thursday<br />

to consider arguments, in the<br />

most vigorously fought case in<br />

the long-running global patent<br />

battle.<br />

After a jury found that most<br />

of its asserted patents<br />

and that its trade dress,<br />

or product characteristics,<br />

had been infringed, Apple is<br />

seeking to ban eight Samsung<br />

smartphones from sale in the<br />

US, ahead of the Christmas<br />

trading season. It is also<br />

looking for an additional $707m<br />

in damages from Samsung<br />

for patent infringement and<br />

dilution, on top of the $1.05bn it<br />

was awarded by the jury.<br />

Samsung, however, has alleged<br />

jury misconduct and demanded<br />

a retrial. It maintains that<br />

Velvin Hogan, the San Jose<br />

jury foreman, failed to disclose<br />

his involvement in a 1990s<br />

court battle with Seagate, an<br />

IT company in which Samsung<br />

owns a significant stake, raising<br />

questions of potential bias.<br />

The Korean technology group<br />

has also argued that the jury’s<br />

verdict was inconsistent and<br />

its methodology for awarding<br />

damages “unclear”.<br />

In its response, Apple’s filings<br />

characterised Samsung’s<br />

position as an “attack<br />

on the jury and the jury<br />

process . . . waged in the<br />

press worldwide”, which it<br />

described as “baseless” and<br />

“unwarranted”.<br />

Despite August’s landmark<br />

verdict in California, Apple has<br />

not found the same degree of<br />

success in its patent cases in<br />

other markets, with an ugly<br />

argument in the UK over its<br />

fumbled “apology” to Samsung<br />

after a court in London ruled<br />

that the Galaxy Tab did not<br />

infringe the iPad’s designs.<br />

Last month, Apple struck a<br />

surprise patent settlement with<br />

HTC, a smaller smartphone<br />

maker. Despite protests<br />

from HTC, Samsung’s legal<br />

team has been allowed to<br />

see the financial terms of the<br />

agreement with Apple.<br />

Although hostilities continue<br />

against Samsung, some<br />

intellectual-property observers<br />

see Apple’s HTC agreement as<br />

a sign that peace across the<br />

industry is possible.<br />

Professor Michael Meurer of<br />

the Boston University School<br />

of Law says that patents no<br />

longer provide “predictable<br />

property rights” and predicts<br />

settlements among “all the<br />

players”.<br />

“This holy war that [Apple<br />

co-founder] Steve Jobs wanted<br />

to start was a strategically<br />

bad choice for Apple,” Prof<br />

Meurer said. “I think that<br />

Apple under [CEO] Tim Cook is<br />

recognising that . . . I think Jobs<br />

overestimated what IP could do<br />

for him.”<br />

Even if Apple wins injunctions<br />

against several Samsung<br />

smartphones, analysts say it is<br />

unlikely to have a major effect<br />

on Christmas sales.<br />

Sobia Pervaz<br />

Korek–<br />

A subsidiary of France Telecom<br />

opted for Genesys Call Center<br />

Solution<br />

With a vision to become stateof-the<br />

art multi-channel contact<br />

center, Korek Telecom,<br />

Iraq awarded their Call Center<br />

implementation to C Square<br />

Consulting. Korekaimsto<br />

have quick implementation<br />

of world’s number one call<br />

center software that is fully<br />

supported by C Square. The<br />

solution delivery is unique as<br />

it includes End to End Genesys<br />

with High Availability, IVR,<br />

Workforce Management, Call<br />

Recording, Screen Capture and<br />

Agent Desktop.<br />

As C Square Consulting<br />

focuses on delivering the<br />

highest quality solutions to<br />

its customers tailored to their<br />

needs, this has become the<br />

most trustable and dominant<br />

solution provider globally with<br />

special recommendation from<br />

Genesys itself.<br />

Korek offers the largest and<br />

most reliable mobile network<br />

and dominates in the country<br />

with its cutting edge technology.<br />

Providing customers<br />

with best quality network and<br />

services with best value is<br />

the main aspiration of Korek<br />

Telecom. To further strengthen<br />

and expand its network and<br />

to improve the quality of its<br />

services in all 18 provinces, the<br />

implementation of Genesysbased<br />

contact centre and<br />

solutions is a good step.<br />

Korek already possesses GSM<br />

and with the implementation<br />

and integration of Multisite<br />

Contact Centre in Erbil<br />

and Baghdad, Korek will<br />

be able to provide an<br />

enhanced, continuous, and<br />

speedy communication to<br />

its customers. Thus, the<br />

solutions provided by C<br />

Square Consulting will help<br />

Korekto reinforce customer<br />

relationship by facilitating<br />

improved communication and<br />

by providing quality services.<br />

Although, it is a challenge<br />

for C Square Consulting, but<br />

the implementation of so<br />

many solutions at the same<br />

time explains the reliability<br />

and strength of C Square<br />

Consulting. Also, this is<br />

another big venture of C<br />

Square Consulting in the<br />

Middle-Easter Region. Having<br />

Genesys-based solutions<br />

enables Korek to enhance<br />

interaction internally as well as<br />

externally.<br />

“We know Genesys is the leading<br />

software solution, we just<br />

need a company like C Square<br />

to implement it, which will<br />

enable us to provide best in<br />

class customer service to our<br />

subscribers. We also plan to<br />

launchMulti Channels like Chat,<br />

SMS and Social Media in next<br />

phase,” says Francis Nassif,<br />

Project Manager CIS Commenting<br />

on the achievement,<br />

Ahsan Mashkoor, Co-Founder<br />

of C Square Consulting noted,<br />

“While we continue to expand<br />

our presence in the Middle<br />

Eastern region, it is equally<br />

important for us to be mindful<br />

of our client’s priorities and<br />

to work with each, on the company’s<br />

individual needs. The<br />

technology solutions we offer<br />

are then mapped onto the<br />

company’s business blueprint<br />

which differs for each client.<br />

38 December 2012<br />

www.teletimesinternational.com


Tools to manage large<br />

file transfers<br />

The managed file transfer<br />

(MFT) industry has a players<br />

ranging from big-name tech<br />

titans to up-and-coming<br />

next-generation cloud-based<br />

vendors. Below is a list of<br />

some, but not all, players in this<br />

industry and a brief description.<br />

Axway<br />

A leading competitor in the<br />

managed file transfer industry,<br />

Axway says it specializes in not<br />

only B2B (business to business)<br />

MFT, but also A2A (application<br />

to application), and ad hoc<br />

transfers. Axway is a French<br />

company that is popular in the<br />

U.S. enterprise market, priding<br />

itself on baked-in visibility and<br />

monitoring tools that provide<br />

both technical and businessoriented<br />

dashboards to track<br />

which data is being transferred.<br />

Axway recently beefed up its<br />

security policies too with its<br />

acquisition of Vordel, which<br />

specializes in API security<br />

compatibility for mobile and<br />

cloud services. This could fit<br />

in with Axway’s Communities<br />

service, in which businesses<br />

can set up policies for different<br />

groups within an enterprise.
<br />

Citrix ShareFile<br />

Citrix, a trusted name in IT<br />

management tools, has its own<br />

line of file transfer products,<br />

headlined by ShareFile, which<br />

is what the company calls<br />

a “follow-me data” tool.<br />

ShareFile allows users to<br />

store and synchronize files<br />

across multiple devices and<br />

platforms, from mobile, tablet<br />

and desktop, with optional<br />

integration with Microsoft<br />

Outlook and centralized<br />

management, such as running<br />

audit reports, conducting<br />

remote wipes and linking<br />

in with an existing active<br />

directory. It supports transfers<br />

of files up to 100GB and also<br />

features Storage Zones, which<br />

is basically a fancy way of Citrix<br />

saying data can be stored<br />

on a customer’s premise, or<br />

in a Citrix cloud. Last week,<br />

the company announced a<br />

partnership with NetApp<br />

where that company’s storage<br />

operating system, NetApp Data<br />

OnTap 8, will be optimized to<br />

run as the on-premise platform<br />

in ShareFile environments.<br />

IBM<br />

Seen by some as the market<br />

leader in this category for<br />

enterprise MFT, IBM’s product<br />

is based on the Sterling<br />

Managed File platform.<br />

Optimized for high-volume<br />

traffic within and between<br />

enterprises, IBM’s MFT is<br />

a portfolio that includes<br />

additional bolt-on features.<br />

WebSphere MQ, for example,<br />

is an optional file transfer<br />

automation software, while File<br />

Gateway allows for integration<br />

with enterprise resource<br />

planning (ERP) and business<br />

process management (BPM)<br />

platforms. IBM also has a series<br />

of customizable Web-based<br />

interfaces, and a control center<br />

for IT management of the<br />

system.<br />

Ipswitch File Transfer<br />

Perhaps no company better<br />

epitomizes the transitions<br />

occurring in this broader<br />

industry better than Ipswitch.<br />

The company has a history of<br />

competing in the MFT space,<br />

but has recently launched a<br />

new, completely cloud-based<br />

version of its file transfer tool<br />

named MOVEit. It supports<br />

system-to-system, person-toperson<br />

file transfers, all with<br />

fast on-boarding and the ability<br />

to dynamically scale resources<br />

as needed through the cloud.<br />

Ipswitch has complementary<br />

tools such as MessageWay,<br />

which integrates with existing<br />

message platforms, and for<br />

customers that want an onpremise<br />

tool instead, Ipswitch<br />

sells its WS_FTP file transfer<br />

server.<br />

Tibco<br />

Tibco’s file transfer system is<br />

part of the company’s broader<br />

strategy around information<br />

management. Its MFT line<br />

includes both platform and<br />

Internet servers, for onpremise<br />

or public Internetfacing<br />

MFT applications<br />

respectively, plus it includes<br />

Command Center, a centralized<br />

dashboard with reporting<br />

and auditing features. Tibco’s<br />

Slingshot product is also used<br />

Brandon Butler<br />

on-premise as an integration<br />

tool with Microsoft Outlook<br />

and other messaging platforms<br />

that provides compression and<br />

encryption for files that will be<br />

transferred.
<br />

YouSendIt<br />

YouSendIt represents the<br />

up-and-coming crop of startup<br />

competitors looking to take<br />

on the legacy names in this<br />

business. A cloud-based<br />

service, YouSendIt emphasizes<br />

easy onboarding, including a<br />

free 14-day trial, and access<br />

to YouSendIt services from<br />

desktops, tablets and mobile<br />

devices. File transfers are<br />

capped at 2MB, but the service<br />

provides for synchronization<br />

of files across devices. An<br />

enterprise-geared product<br />

named Workstream starts at<br />

$12.99 per month for up to 50<br />

users, while a premium version<br />

of that with customized<br />

pricing includes active directly<br />

integration, single sign-on and<br />

monitoring and management<br />

tools.<br />

40 December 2012<br />

www.teletimesinternational.com


The Global ICT 50:<br />

The Supply Side of Digitization<br />

Olaf Acker<br />

Florian Gröne<br />

Germar Schröder<br />

The top 50 companies providing IT and telecom hardware, software, and<br />

services are facing dramatic change and convergence. Their response will<br />

transform life for the rest of us.<br />

Driven by a combination of<br />

consumer demand and the development<br />

of new information<br />

and communications technology<br />

(ICT), the world is rapidly transforming.<br />

This process, called<br />

digitization, has been happening<br />

since the arrival of the computer<br />

60 years ago, but in the past few<br />

years it has accelerated, altering<br />

everyday life in unprecedented<br />

ways. Technological developments<br />

such as handheld devices,<br />

pervasive sensors, “big data”<br />

analytics, digital supply chains,<br />

search engines, social networks,<br />

satellite-based geographic tracking,<br />

interconnected real-time<br />

digital infrastructure, and massive<br />

server farms have fundamentally<br />

altered our society. The<br />

2010s are arguably as different<br />

from, say, the 1980s as 1950,<br />

with ubiquitous electricity, automobiles,<br />

and broadcast radio,<br />

was from 1850.<br />

Digitization is being driven in<br />

part by the companies that make<br />

use of digital infrastructure and<br />

in part by consumers around the<br />

world. The enterprise market<br />

for online IT and digital telecom<br />

is booming — corporate sales<br />

worldwide grew 6 percent annually<br />

in 2010 and 2011 — while the<br />

market for consumer-oriented<br />

devices and services (including<br />

cloud-based online IT services)<br />

grew even more rapidly. At the<br />

forefront of change is Generation<br />

C, people born after 1990<br />

who expect to be connected to<br />

everyone, everywhere, at home<br />

and at work. As members of<br />

this group come of age, moving<br />

into managerial ranks or starting<br />

their own businesses, the tools<br />

and habits of digitization will<br />

become second nature.<br />

One might expect that because<br />

society is increasingly dependent<br />

on digital products and services,<br />

the producers of digitization<br />

would be affluent, assured of<br />

success, and complacent. But<br />

their industry is undergoing a<br />

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41


parallel transformation, and it is<br />

not clear how many companies<br />

will last in their current form.<br />

The traditional sectors of the<br />

ICT ecosystem — a multi-trilliondollar<br />

industry whose members<br />

include enterprise service<br />

providers, hardware producers,<br />

telecom companies, and software<br />

developers (including the<br />

purveyors of Internet services<br />

and social media) — are blurring<br />

and converging. For example,<br />

telecom, hardware, and software<br />

companies are moving into<br />

IT services. Offshore IT service<br />

providers are developing enterprise<br />

software, often in the form<br />

of low-cost, highly standardized<br />

systems delivered via the<br />

Internet, designed to take over<br />

large portions of the work of<br />

traditional corporate IT departments.<br />

The industry is also being<br />

invaded by a host of hungry<br />

new Internet players, who offer<br />

innovative Web-based solutions<br />

that bypass the systems of the<br />

past. In this context, even the<br />

wealthiest, most successful ICT<br />

providers, like Microsoft in the<br />

1990s, Google in the 2000s, and<br />

Apple today, cannot be certain<br />

of sustaining their success. The<br />

title of the first book by former<br />

Intel CEO Andrew Grove — Only<br />

the Paranoid Survive — has<br />

never seemed so telling a comment<br />

on this industry.<br />

How will the process of digitization<br />

play out? How will it affect<br />

the companies vying to supply<br />

these technologies, particularly<br />

in the business-to-business domain?<br />

The answers are essential<br />

for decision makers in any company,<br />

no matter its industry. The<br />

choice of ICT goods and services<br />

is a critical strategic factor: It<br />

deeply influences the quality and<br />

distinctiveness of a company’s<br />

capabilities. That choice, in turn,<br />

depends on a clear assessment<br />

of the future of these providers.<br />

It is all too easy to get locked<br />

into a technology system that<br />

will not be sustained in the<br />

marketplace.<br />

At a more exalted level, the<br />

leading digitization providers<br />

are among the most influential<br />

companies of our time, and their<br />

influence is increasing. Their<br />

digital channels shape behavior<br />

for all other businesses and, indeed,<br />

for a great deal of human<br />

interaction.<br />

Finally, these companies are a<br />

fascinating group in their own<br />

right. Some, like Hewlett-Packard<br />

(HP) and IBM, have existed<br />

for many decades, continually<br />

reinventing themselves; others<br />

are relative newcomers. Each, in<br />

its own way, has mastered innovation<br />

and struggled with disruption.<br />

Their story is our story.<br />

Anatomy of the ICT 50<br />

In early 2012, a group of Booz &<br />

Company researchers evaluated<br />

the 50 largest publicly traded<br />

global suppliers of information<br />

and communications technology<br />

products and services to<br />

enterprise: the “Global ICT 50.”<br />

We assessed how well they are<br />

doing now and how prepared<br />

they are for the changes that<br />

lie ahead, and then we ranked<br />

them according to their enterprise<br />

relevance: their potential<br />

importance to company value<br />

chains, in the present and the<br />

near future. Four qualities come<br />

together to make up this score:<br />

● Financial performance: Which<br />

companies can best sustain<br />

the profitability needed to<br />

make the investments that<br />

will help them win the digitization<br />

race?<br />

● Portfolio strength: Which<br />

companies possess the best<br />

mix of business-to-business<br />

products and services, given<br />

the demands of digitization?<br />

● Go-to-market footprint:<br />

Which companies have<br />

established sales and delivery<br />

capabilities in the top markets<br />

for ICT?<br />

● Growth potential: Which companies<br />

have the three factors<br />

needed today for expansion in<br />

this industry: prowess in innovation,<br />

presence in emerging<br />

economies, and the ability to<br />

attract new customers?<br />

With assessments of these<br />

four qualities based on publicly<br />

available information, we ranked<br />

the trajectory of performance<br />

for the leading companies in<br />

the four main sectors in this<br />

industry.<br />

1. Hardware and infrastructure<br />

companies. This sector, which<br />

includes Apple, Hewlett-<br />

Packard, Dell, Cisco Systems,<br />

and Xerox, has traditionally<br />

been the core of the technology<br />

industry. Although their<br />

hardware systems have<br />

often been complementary<br />

(Cisco produces the routers<br />

that connect HP’s printers<br />

to Apple’s tablets and Dell’s<br />

computers), these companies<br />

have long been perceived as<br />

being in the same business.<br />

Now they are striving to build<br />

more differentiated businesses,<br />

branching out into<br />

software and services, while<br />

retaining core businesses<br />

built around ever more powerful<br />

and affordable equipment.<br />

2. Software and Internet companies.<br />

This sector includes<br />

Microsoft, Google, Oracle,<br />

and SAP, and it is positioned<br />

to do well in a highly digitized<br />

world. Some of these<br />

companies are very large,<br />

giving them the strength to<br />

compete successfully in digitization<br />

(and in many cases, as<br />

with Microsoft and Google,<br />

to branch out into hardware).<br />

Others are smaller, but focused<br />

and capitalized enough<br />

to lead the industry. The<br />

small players’ products tend<br />

to be specialized or distinctive,<br />

giving them relatively<br />

protected platforms from<br />

which to expand.<br />

3. IT service providers. Having<br />

established themselves over<br />

the past 30 years as technology<br />

concierges to large- and<br />

42 December 2012<br />

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medium-scale enterprises,<br />

these companies offer a<br />

variety of services: hosting<br />

computers and networks,<br />

managing computer applications<br />

such as databases, and<br />

integrating hardware and<br />

software. This sector has<br />

three subgroups, each with<br />

its own business dynamic.<br />

The first is global companies,<br />

such as IBM, Accenture, and<br />

CSC. They have parlayed their<br />

scale into industry leadership<br />

positions. Second is<br />

regional service providers,<br />

such as Atos in France, Logica<br />

in the U.K., and Unisys in<br />

the U.S., which face a more<br />

challenging future. Some<br />

are using M&A to increase<br />

their scale and market share;<br />

for example, Atos bought<br />

Siemens IT Solutions and Services<br />

in 2011, to create what<br />

the announcement called a<br />

“European IT champion.” The<br />

third subgroup consists of<br />

offshore IT service providers<br />

based in India, including HCL,<br />

Infosys, and Wipro. Starting<br />

from a relatively low base,<br />

these companies have shown<br />

the strongest growth of all<br />

the ICT 50 in recent years —<br />

more than 15 percent annually,<br />

even through the global<br />

economic downturn.<br />

4. Telecom operators. Hundreds<br />

of companies bring telecommunications<br />

— a combination<br />

of mobile, landline, Internet,<br />

and television — to homes<br />

and offices around the world.<br />

The most prominent include<br />

NTT, Telefónica/O2, and<br />

Verizon. This sector faces the<br />

largest challenge of the four:<br />

Many companies still have<br />

significant amounts of cash<br />

on hand, but much of it is<br />

being consumed by ongoing<br />

investments in network<br />

infrastructure and in dividend<br />

commitments. And not all of<br />

them are funneling investment<br />

into innovation and<br />

new capabilities, such as IT<br />

services.<br />

Each of these sectors has its own<br />

combination of qualities, with<br />

different competitive strengths<br />

and weaknesses. (See Exhibit 1.)<br />

Despite their differences, however,<br />

all the members of the ICT 50<br />

have one thing in common: They<br />

share a context that has shifted<br />

markedly during the past few<br />

years, and not just because of<br />

the global economic downturn.<br />

Earlier waves of information and<br />

communications technology,<br />

during which businesses fulfilled<br />

their basic needs for connectivity<br />

and computing power, have<br />

effectively run their course. The<br />

two critical infrastructure elements<br />

required for digital media<br />

— computer power and Internet<br />

access — were established in<br />

the 1990s, were rolled out across<br />

the world in the 2000s, and are<br />

now commodities throughout<br />

most industries.<br />

The most recent wave of<br />

digitization began around the<br />

time the iPhone was introduced<br />

(in 2007), and has picked up<br />

speed since 2010. With the basic<br />

infrastructure in place, both<br />

businesses and consumers are<br />

demanding more from software<br />

and services. The mobile<br />

handheld device has become<br />

an all-purpose digital gateway;<br />

employees increasingly demand<br />

to use their own devices for<br />

work, which gives them the flexibility<br />

to mix their personal and<br />

working lives, and the continued<br />

expansion of their personal and<br />

social networks. As digitization<br />

takes hold, the boundaries<br />

between departments — and<br />

between companies — become<br />

looser and more permeable than<br />

they have ever been before. Supply<br />

chains integrate using cloudbased<br />

applications; marketers<br />

aggregate data from online<br />

sources, including social media.<br />

In all these ways, and more,<br />

sophisticated new services have<br />

rapidly and offhandedly moved<br />

into the business world, where<br />

they are disrupting the ICT<br />

market.<br />

The changing nature of the<br />

demand for ICT products and<br />

services helps explain why the<br />

supply side of digitization is in<br />

flux — with more volatility than<br />

at any time since the collapse<br />

of the dot-com bubble in 2000.<br />

The Global ICT 50 study was<br />

designed to provide an analytical<br />

portrait of that volatility. To our<br />

knowledge, it is the first study<br />

to examine enterprise relevance<br />

for all four sectors together. If<br />

some of the rankings seem counterintuitive,<br />

that’s because the<br />

December 2012<br />

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43


usiness-to-business emphasis<br />

leads to assessments very different<br />

from those of the typical<br />

technology press. For example,<br />

Apple, with its notable success<br />

and high market capitalization,<br />

is ranked below HP and Cisco<br />

Systems. Google is not even included<br />

in the top 10. (See Exhibit<br />

2.) Apple and Google are both<br />

remarkable, extraordinarily capable<br />

companies, but their impact<br />

on corporate ICT purchasing<br />

remains relatively low, no matter<br />

how many iPads or search engine<br />

advertisements are sold. If<br />

you are a CIO or an ICT decision<br />

maker designing your organization’s<br />

approach to digitization,<br />

the companies at the top of each<br />

category are the ones that are<br />

likely to be most relevant to you.<br />

(See Exhibit 3.)<br />

Financial Performance<br />

Where financial performance is<br />

concerned, the ICT 50 analysis<br />

confirms that one prevailing<br />

assumption of the past decade<br />

— “service rules” — no longer<br />

holds true. None of the top five<br />

financial performers were IT service<br />

providers or telecom operators.<br />

The software and Internet<br />

companies Microsoft, Google,<br />

and Oracle had the greatest<br />

overall financial health, followed<br />

by the hardware and infrastructure<br />

companies Apple and Cisco<br />

Systems. (The score combines<br />

several published measures:<br />

profitability, revenue growth,<br />

and investment capability.)<br />

The hardware and infrastructure<br />

sector experienced a slump during<br />

the economic downturn, but<br />

it has recovered since 2010, with<br />

three-year revenue growth of<br />

more than 11 percent. Margins,<br />

however, are comparatively<br />

low, at just 12 percent on average,<br />

and these companies face<br />

tremendous pressure as digitization<br />

expands. This pressure was<br />

highlighted in May 2012 when<br />

Hewlett-Packard announced it<br />

would cut more than 7 percent<br />

of its workforce and reinvest<br />

the savings in cloud-based businesses.<br />

As a whole, the software companies<br />

have the most enviable<br />

financial performance, at least<br />

for the moment. They have<br />

seen overall three-year revenue<br />

growth of more than 10 percent,<br />

and their margins have long<br />

been higher than 30 percent —<br />

higher than those of any other<br />

group. But they may soon face<br />

global rivals among the offshore<br />

service providers, who have by<br />

far the fastest growth rate and<br />

impressive EBIT (earnings before<br />

interest and taxes) margins of<br />

more than 20 percent, on average.<br />

Global service providers are also<br />

doing well; they maintain margins<br />

around 15 percent, and IBM<br />

generates more than US$15 billion<br />

in free cash flow each year.<br />

Regional service providers are in<br />

a more daunting position: With<br />

only mild revenue growth in the<br />

last two years, and margins in<br />

the 5 to 8 percent range, they<br />

may soon find themselves with<br />

little room to maneuver. Telecom<br />

companies are also stressed<br />

financially, but for a different<br />

reason: Comparatively stable<br />

and with relatively high earnings,<br />

they find that their growth has<br />

leveled off since the financial crisis<br />

of 2008 and shows no sign of<br />

renewed liftoff. (See Exhibit 4.)<br />

Portfolio Strength<br />

In the past, each group of ICT<br />

suppliers stayed well within their<br />

closely guarded sector boundaries.<br />

Software companies sold<br />

software, and telecom operators<br />

built communications networks<br />

and sold phone services. The<br />

four groups are still distinct, but<br />

not necessarily for long. Both<br />

traditional and nontraditional<br />

ICT companies are consolidating,<br />

seeking to build integrated<br />

ecosystems that cut across<br />

established business models and<br />

help them manage convergence.<br />

44 December 2012<br />

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The pattern of mergers and<br />

acquisitions provides a tangible<br />

clue to the direction in which<br />

companies are moving. In 2009,<br />

hardware company Xerox<br />

acquired Affiliated Computer<br />

Services, a business process outsourcing<br />

firm, thereby accelerating<br />

Xerox’s shift to IT services.<br />

Dell bought IT services provider<br />

Perot Systems the same year,<br />

with similar intent. Other acquisitions,<br />

like Oracle’s 2010 purchase<br />

of Sun Microsystems, represent<br />

moves toward more complete<br />

software integration (adding<br />

a little hardware to the mix as<br />

well). These types of consolidations<br />

allow software companies,<br />

which were formerly concentrated<br />

on specific applications,<br />

to internalize larger parts of<br />

systems integrators’ traditional<br />

home turf and hold the line<br />

against IT service providers.<br />

Launches of new products<br />

and services also frequently<br />

represent moves across sector<br />

boundaries. (See Exhibit 5.)<br />

Some telecom operators seek<br />

a foothold in cloud computing<br />

and IT services; Verizon’s cloudbased<br />

infrastructure-as-a-service<br />

offering is one example, as is<br />

KPN, which provides application<br />

management services to its customers.<br />

Software and Internet<br />

companies are also innovating<br />

across boundaries, albeit more<br />

selectively. Yahoo, for example,<br />

offers comprehensive Web<br />

hosting but has stayed out of<br />

data center services and desktop<br />

operations.<br />

The companies most likely<br />

to cross boundaries are the<br />

IT service providers. IBM, for<br />

example, offers its Sametime<br />

Unified Telephony service, which<br />

includes telephony features for<br />

individual users and multi-PBX<br />

telephony integration for telephony<br />

managers, and CSC offers<br />

Unified Communications as a<br />

Service as well as My Conference<br />

Space, an integrated audio and<br />

Web conferencing solution.<br />

Besides this ability to manage<br />

convergence, the score reflects<br />

the ability to provide next-generation<br />

products and services.<br />

Many companies are blending<br />

traditional offerings with new,<br />

highly advanced technological<br />

services, including radio frequency<br />

identification solutions for<br />

retail, near-field communications<br />

solutions, cloud computing,<br />

and mobile payment platform<br />

support. Unfortunately, the<br />

profits and growth expected<br />

from next-generation offerings<br />

have not yet materialized. Most<br />

companies still earn more from<br />

classic ICT products and services;<br />

the next few years will tell how<br />

rapidly their customers will shift<br />

to next-generation technologies.<br />

Two other capabilities figure in<br />

the score for portfolio strength.<br />

First is the development of<br />

horizontal digital offerings for<br />

particular functions. Companies<br />

in the ICT 50 offer such special-<br />

December 2012<br />

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45


ized services as customer analytics,<br />

digital marketing, campaign<br />

management, billing services,<br />

sales-force automation, social<br />

network integration, supply<br />

chain logistics, and e-procurement<br />

to company after company.<br />

Second is the provision<br />

of vertical offerings: tailored,<br />

industry-specific technological<br />

solutions that work across<br />

functions. Current examples<br />

include outsourced network<br />

management for telecom; clinical<br />

information systems, digital<br />

health monitoring, and homecare<br />

products for healthcare<br />

companies; and smart metering<br />

systems for utilities. In both the<br />

horizontal and vertical cases, the<br />

key value proposition appears to<br />

be integration; large companies<br />

are looking for ICT providers that<br />

can weave many diverse services<br />

around a coherent, focused,<br />

interoperable core.<br />

Some might assume that the<br />

industry is moving toward a<br />

consolidated group of comprehensive<br />

“one-stop” ICT<br />

companies with diversified<br />

portfolios. In three categories<br />

out of four, however, the results<br />

suggest otherwise: Companies<br />

with higher levels of coherence,<br />

applying the same capabilities<br />

to all their offerings, have higher<br />

levels of growth and profitability<br />

than do more diversified companies.<br />

The exception, at least to<br />

date, is IT service providers; that<br />

may change as their category<br />

converges and matures. (See<br />

Exhibit 6.)<br />

Go-to-Market Footprint<br />

Commentators often overlook<br />

a company’s geographic profile<br />

— especially its ability to sell and<br />

deliver products and services<br />

in the industry’s top markets.<br />

But this capability is critical to<br />

the success of any ICT company<br />

with global aspirations. That’s<br />

especially evident in the five<br />

most highly developed ICT markets<br />

— the U.S., the U.K., Japan,<br />

Germany, and France. These<br />

countries saw combined sales<br />

of $1.2 trillion in 2011, more than<br />

60 percent of total global sales<br />

of ICT services. Being proficient<br />

in sales and delivery in these<br />

markets certifies the ability of<br />

ICT players to satisfy the needs<br />

of the largest corporations. And<br />

these markets offer a source of<br />

revenue and a profit pool that is<br />

too big to be ignored.<br />

The offshore IT service providers<br />

are pushing hard to establish a<br />

foothold in these markets, which<br />

have not necessarily been their<br />

natural operating environment<br />

in the past. Tata Consultancy Services<br />

already has more than 600<br />

employees in Germany alone.<br />

We expect to see more aggressive<br />

investment and acquisition<br />

activities by these companies,<br />

which will increasingly compete<br />

(or form strategic partnerships)<br />

with regional IT service providers.<br />

The go-to-market footprint score<br />

also takes into account the ability<br />

to manage production facilities<br />

around the world, drawing<br />

on inexpensive labor, as well as<br />

“follow the sun” delivery (where<br />

a project is handed off daily from<br />

one time zone to the next, thus<br />

providing 24-hour scheduling).<br />

This type of global production<br />

is particularly challenging for<br />

many telecom operators. They<br />

are bound to their local markets<br />

by their existing infrastructure<br />

investments, which severely<br />

limits the efficiencies they can<br />

gain in other locations, and<br />

by the inherent complexity of<br />

combining offshore and onshore<br />

operations. Telecom companies<br />

also face more regulatory restrictions<br />

than the other sectors. This<br />

explains a striking correlation in<br />

the data for telecom operators:<br />

The more offshore activity they<br />

engage in, the less profitable<br />

they are.<br />

The opposite is true for IT service<br />

providers. The more their<br />

operations move offshore, the<br />

higher their profitability. Regional<br />

IT service providers may<br />

feel some disadvantage; they<br />

lack the capabilities and capital<br />

to break into emerging markets.<br />

But the offshore providers<br />

are already familiar with many<br />

emerging markets, and they<br />

have been able to realize savings<br />

from lower workforce costs.<br />

Global providers also do well on<br />

this score; they have established<br />

successful production facilities<br />

(and the requisite talent practices<br />

to staff them) around the<br />

globe. Companies such as IBM,<br />

with delivery centers worldwide,<br />

and Capgemini, whose workforce<br />

is distributed among 40<br />

countries, are significantly more<br />

profitable than those whose<br />

production takes place primarily<br />

in high-wage countries. (We<br />

saw little or no correlation effect<br />

with the other two groups,<br />

presumably because hardware<br />

and infrastructure companies,<br />

and their software and Internet<br />

counterparts, have more flexible<br />

geographic and labor requirements.)<br />

Growth Potential<br />

For a digitization provider, the<br />

prospects for growth are as important<br />

as current-day financial<br />

performance. The growth potential<br />

score is heavily weighted<br />

by each company’s ability to<br />

innovate: to maintain an active<br />

pipeline of new ideas and bring<br />

them to market successfully.<br />

The most visible ICT 50 innovation<br />

leaders are found in two<br />

of the four sectors: software<br />

and Internet companies, and<br />

hardware and infrastructure<br />

companies. These companies<br />

typically spend a considerable<br />

portion of their revenues on<br />

research and development,<br />

and even those that spend well<br />

below their group average, most<br />

notably Apple, tend to spend<br />

their innovation dollars wisely.<br />

In addition to investing in its<br />

traditional devices and components<br />

business, Fujitsu spends<br />

almost half of its $2.8 billion R&D<br />

budget on IT products, solutions,<br />

and services. And Xerox has<br />

invested considerable funds in<br />

its Computing and Information<br />

Services Laboratory, where it<br />

investigates scalable computing<br />

for business process solutions<br />

and big data analytics.<br />

By contrast, most of the IT<br />

service providers do not have<br />

the margins needed to invest in<br />

46 December 2012<br />

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R&D at high rates, and (with the<br />

notable exception of IBM) their<br />

innovation takes a more modest<br />

form. They see themselves as<br />

integrators, continually researching<br />

ways to link the products<br />

and services produced by other<br />

companies. As for the telecom<br />

operators, they continue to<br />

spend much of their funds on<br />

recurring infrastructure and<br />

network upgrade commitments,<br />

limiting the amount of capital<br />

available to innovate in more<br />

value-added services.<br />

The growth potential score also<br />

reflects each company’s ability<br />

to enter new markets — both<br />

within established geographies<br />

(such as selling to small and<br />

midsized enterprises or governments)<br />

and in new regions.<br />

Notwithstanding their current<br />

importance to the go-to-market<br />

footprint score, the five most<br />

highly developed ICT markets<br />

grew just 1 percent on average<br />

over the past three years, and<br />

their long-term growth prospects<br />

are not particularly strong.<br />

The BRICs (Brazil, Russia, India,<br />

and China), on the other hand,<br />

currently account for only $186<br />

billion in ICT sales, but they grew<br />

13 percent on average per year<br />

from 2009 to 2011. By 2020, the<br />

BRICs will be markets in which<br />

every ICT player must operate.<br />

Predictions and Prescriptions<br />

For companies buying ICT<br />

services, the convergence of<br />

the ICT 50 promises to be very<br />

exciting. As the ICT 50 companies<br />

compete across boundaries,<br />

winners will emerge that are<br />

more innovative, more responsive<br />

to customers, and able to<br />

deliver more at lower costs. But<br />

how should the different sectors<br />

position themselves?<br />

In general, the hardware and<br />

infrastructure companies have<br />

demonstrated relatively strong<br />

financial performance, with a<br />

well-developed go-to-market<br />

footprint and robust growth<br />

potential. Their greatest priorities<br />

should be finding a business<br />

model that works for them<br />

and increasing their portfolio<br />

strength. Much will depend on<br />

how well these players capitalize<br />

on the next generation of<br />

on-demand services. They will be<br />

the providers of the underlying<br />

infrastructure that enables realtime<br />

computing, in-memory processing,<br />

and more; they will also<br />

need to forge differentiated,<br />

profitable offerings by acquiring<br />

or partnering with connectivity<br />

and network providers. Apple<br />

is currently developing a closely<br />

guarded closed-service ecosystem,<br />

but other, more open<br />

system approaches may also be<br />

viable. New types of challengers,<br />

such as Amazon, will probably<br />

enter the ICT 50 soon; Amazon’s<br />

Web services business is built on<br />

a highly flexible, scalable data<br />

center and computing infrastructure.<br />

The telecom operators<br />

boast consistently high financial<br />

performance and a strong<br />

portfolio of critical communications<br />

products and services, but<br />

their core business is maturing<br />

and faces commoditization. To<br />

sidestep this, they must expand<br />

their go-to-market footprint<br />

through acquisitions or strategic<br />

partnerships, push for operational<br />

excellence and efficiency<br />

within the constraints imposed<br />

by physical network assets and<br />

local regulation, and develop<br />

a truly differentiating portfolio<br />

of services that will take them<br />

beyond their traditional telecom<br />

offerings. Some companies,<br />

notably Verizon and NTT, with<br />

their strong cloud offerings,<br />

are beginning to make these<br />

moves. But after paying for the<br />

next generation of network<br />

infrastructure, they have limited<br />

funds for further innovation,<br />

and their growth potential is<br />

constrained. They may seek additional<br />

partnerships or mergers<br />

as a vehicle for growth.<br />

The strength of the IT service<br />

providers varies, depending on<br />

their size, financial performance,<br />

and go-to-market footprint. In<br />

the short term, consolidation<br />

within this sector will continue<br />

— as demonstrated by CGI’s<br />

recent acquisition of Logica.<br />

Market share and scale alone,<br />

however, will not differentiate<br />

these companies or guarantee<br />

profitability; the firms will need<br />

to bolster their growth potential<br />

through innovation and stand<br />

their ground in competition<br />

against the other ICT 50 sectors.<br />

The changing nature of system<br />

integration will keenly affect<br />

them; as custom-integrated enterprise<br />

software solutions lose<br />

ground to prepackaged cloudbased<br />

solutions and as software<br />

players absorb some of the<br />

traditional system integration<br />

business, IT service providers will<br />

need to build portfolio strength<br />

by developing their integration<br />

capabilities.<br />

Many offshore IT service companies<br />

are already moving in this<br />

direction. They are using their industrialized<br />

delivery capabilities<br />

and low-labor-cost advantages<br />

to compete against such global<br />

players as IBM, Accenture, and<br />

HP. They will seek aggressive<br />

expansion into the lucrative markets<br />

of mature economies; the<br />

challenge for them will be to do<br />

so while remaining true to their<br />

low-cost, offshore roots.<br />

Finally, the software and<br />

Internet companies on the ICT<br />

50 are financially sound and<br />

highly innovative, with generally<br />

strong portfolios and a great<br />

deal of growth potential. They<br />

should expand, but only into<br />

areas that differentiate them.<br />

Microsoft, Oracle, and SAP are in<br />

a strong position today, and they<br />

are working hard to stay there.<br />

But “digital native” players<br />

are pushing aggressively into<br />

the arena, especially in cloud<br />

computing and social media.<br />

Expect digital-centric players<br />

such as Google to move up in<br />

the software ranks, and look<br />

for more cloud-based software<br />

companies to follow older<br />

firms like Salesforce.com into<br />

prominence.<br />

In most industries, it takes a long<br />

time for companies to change<br />

the way they operate. But many<br />

members of the ICT 50 have<br />

already shown themselves to be<br />

fast-moving and flexible. Next<br />

year, when we look again at the<br />

industry, we suspect that much<br />

will have changed; we may well<br />

see 10 newcomers among the<br />

ICT 50. But the biggest winners<br />

will undoubtedly be those that,<br />

like IBM, Microsoft, and Oracle<br />

(this year’s top three), combine<br />

flexibility with a distinctive core<br />

identity that no one else can<br />

duplicate.<br />

December 2012<br />

www.teletimesinternational.com<br />

47


Europe should choose<br />

future-proof broadband NOW!<br />

Karin Ahl<br />

President of the Board<br />

FTTH Council Europe<br />

Internet, broadband and<br />

next-generation information<br />

and telecommunications are<br />

the pillars upon which Europe<br />

will be built. We must make<br />

the right decisions today<br />

in order to create a futureoriented<br />

Europe. The EU can<br />

come out of the current crisis<br />

as a strong player on the<br />

global telecommunication<br />

and broadband services<br />

market, but getting there is<br />

challenging. Strong leadership<br />

is required to support decisionmakers<br />

in their choice for the<br />

only future-proof broadband<br />

access solution: Fibre to the<br />

Home!<br />

FTTH Council Europe is aware<br />

there is a long and difficult<br />

road ahead. Let me give you an<br />

example of what we’re facing<br />

today. The local government of<br />

Lower Austria - the country’s<br />

largest federal state with<br />

over 1.6 million inhabitants -<br />

recently sent a letter to rural<br />

municipalities, informing them<br />

that their broadband will be<br />

upgraded with the ‘latest<br />

wireless technology’, allowing<br />

‘up to 8 Mbps in downstream’.<br />

This means 5 million euros of<br />

public money will be spent<br />

on a technology that doesn’t<br />

even support the European<br />

Commission’s lowest Digital<br />

Agenda for Europe 2020 target!<br />

This is a prime example of<br />

how decision-makers across<br />

the European Union deal with<br />

ICT and broadband. Since<br />

the European Commission<br />

published the Digital Agenda<br />

(DAE) in 2010, there are voices<br />

that say the broadband targets<br />

are ambitious. But given the<br />

ambitions and plans of strong<br />

economies outside Europe, the<br />

targets are merely appropriate,<br />

or even low.<br />

After two years of escalating<br />

crisis, Europe’s governments<br />

and decision-makers are<br />

questioning the DAE targets,<br />

to delay steps and bring down<br />

targets, instead of facing the<br />

challenge and leading Europe<br />

into a competitive future. Let’s<br />

subject their main arguments<br />

to a reality check:<br />

There is no market evidence<br />

that higher speeds are needed<br />

Financing networks is not<br />

possible Europe has more<br />

urgent problems than<br />

broadband<br />

No evidence?<br />

Many larger operators admit<br />

Fibre to the Home is the ‘end<br />

game’ solution, yet claim that<br />

there is no proof of broadband<br />

demand. The FTTH Council<br />

Europe has investigated takeup<br />

rates of fibre networks that<br />

have existed for several years.<br />

The result? Consumers WILL<br />

subscribe to high-speed fibre<br />

products, even at a premium<br />

price. Take-up is a question of<br />

time and consumers who have<br />

experienced high bandwidth<br />

and quality of services are<br />

very loyal. However, many<br />

Europeans mistrust advertised<br />

bandwidth as studies show<br />

huge differences between<br />

promised ‘up to’ speeds and<br />

what is actually delivered.<br />

When someone tells you<br />

‘nobody will need 100<br />

Mbps in the next 10 years’,<br />

consider this: a century ago,<br />

governments claimed there<br />

was no evidence that more<br />

cars would ever be sold, and<br />

therefore no need for more<br />

roads. In 1958, IBM CEO Tom<br />

Watson stated “there is a<br />

world market for about 5<br />

computers”. Back in 1981,<br />

Bill Gates claimed that “no<br />

personal computer will ever<br />

need more than 640 kB of<br />

memory”.<br />

Just ten years ago, consumers<br />

didn’t know about HDTV on<br />

demand, big-screen LCD-TVs,<br />

tablets, smartphones, online<br />

business or digital cameras. The<br />

first 4k devices, with four times<br />

the resolution of HDTV, will be<br />

on sale in time for Christmas<br />

this year. European consumers<br />

will soon be demanding<br />

services widely available in<br />

many other parts of the world,<br />

but operators won’t be able to<br />

deliver.<br />

Impossible financing?<br />

A significant – albeit solvable<br />

– challenge is the investment<br />

size and lack of infrastructure<br />

project financing. We’ve<br />

conducted several studies on<br />

this topic and set up a special<br />

‘financing of fibre networks’<br />

project to support making<br />

funds available.<br />

Many studies look at the<br />

European or national level<br />

and come up with terrifying<br />

figures - but without publishing<br />

the underlying model, making<br />

verification impossible.<br />

Therefore, FTTH Council Europe<br />

started its own ‘cost project’.<br />

Instead of extrapolating rough<br />

cost estimations, our model<br />

is based on bottom up cost<br />

calculations of existing fibre<br />

projects and real geographical<br />

information data.<br />

The surprising result: delivering<br />

fibre to nearly all European<br />

households will cost (less<br />

than) half of many other<br />

cost estimations, at just over<br />

200 billion euros! (Germany<br />

alone spent over 80 billion<br />

euros on telecommunications<br />

infrastructure over the last 10<br />

years...)<br />

Furthermore, over the last 18<br />

months, pension funds, institutional<br />

and private investors<br />

and regional investment banks<br />

have started examining the<br />

possibilities and making investments.<br />

A special ‘Investors Day’<br />

during the February 2013 FTTH<br />

Conference in London will<br />

bring investors and fibre projects<br />

even closer together. In<br />

addition, the European Union’s<br />

‘Connected Europe Facility’<br />

(CEF) in the 2014-2016 budget<br />

foresees 7 billion of a total of<br />

9.2 billion euros for broadband.<br />

Innovative financing tools and<br />

private-public-partnership models<br />

will leverage a much higher<br />

investment from this budget.<br />

More urgent matters than ICT?<br />

Although 9.2 billion isn’t that<br />

much compared to the total<br />

1,000 billion European Union<br />

budget, the CEF is under heavy<br />

attack. Decision-makers in several<br />

countries question even<br />

the smallest budget reservations<br />

for broadband, preferring<br />

to invest in streets, railways or<br />

airports - even though there’s<br />

already an infrastructure budget<br />

proposal four times larger<br />

than the CEF.<br />

48 December 2012<br />

www.teletimesinternational.com


du launches in-house contest at<br />

the UAE’s 41st National Day<br />

Ahmad bin Byat<br />

During the celebrations of<br />

the UAE’s 41st National Day,<br />

du launched an in-house,<br />

interdepartmental contest.<br />

Under the theme ‘Proud of the<br />

UAE’s culture’, the competition<br />

encouraged du employees<br />

to decorate their division to<br />

demonstrate their patriotism<br />

and pride in the UAE. The<br />

contest falls under the<br />

umbrella of du’s National Day<br />

initiatives, which aim to spur<br />

national pride amongst people<br />

in the UAE.<br />

Each department within du<br />

demonstrated its creativity and<br />

research talent, by decorating<br />

designated chill out areas,<br />

desks – and even themselves<br />

– to reflect a unique element<br />

of Emirati culture. Entries were<br />

judged on the educational<br />

element of their feature,<br />

based on new information<br />

shared about the UAE; the<br />

creativity of their decorations,<br />

and the levels of participation<br />

amongst team members. “The<br />

‘Proud of the UAE’s culture’<br />

competition brings together<br />

every member of staff into<br />

a unified commemoration<br />

of the things we are most<br />

proud about in our country.<br />

Emirati culture is unique and<br />

something to be celebrated<br />

by itself. We encourage others<br />

across the nation to devise<br />

unique, creative ways to<br />

demonstrate their admiration<br />

of the country,” said Ahmad<br />

Bin Byat, Chairman, du.<br />

du presents Aviation Business Awards 2012<br />

Reka Sepsy<br />

At a recently held ceremony,<br />

du, presented Emirates Flight<br />

Catering with the Technology<br />

Implementation of Year award,<br />

Qatar Executive with the<br />

Business Aviation Operator<br />

award, and Emirates Aviation<br />

College with the Training and<br />

Education Provider of the<br />

Year award at the Aviation<br />

Business Awards 2012. The<br />

awards recognised the stars of<br />

the aviation industry for their<br />

dedication and achievements.<br />

“On behalf of my colleagues, I<br />

would like to congratulate all<br />

of the winners at the Aviation<br />

Business Awards 2012, and wish<br />

them every business success<br />

in the years to come. Aviation<br />

is a core sector and more so in<br />

the Middle East region, which<br />

in a short span of time has<br />

become an aviation hub and<br />

home to world’s best known<br />

brands in this sector. The<br />

awards are a well-deserved<br />

recognition of the innovation<br />

and ingenuity of the companies<br />

and their high standards of<br />

service excellence,” said Farid<br />

Faraidooni, Chief Commercial<br />

Officer, du.<br />

The event was attended by<br />

senior members of the du management<br />

including John Lincoln,<br />

Vice President - Enterprise<br />

Marketing Segment, among<br />

others. As a leading provider of<br />

telecommunications services<br />

for the aviation sector, du has<br />

a portfolio of business services<br />

that enables the sector to excel<br />

and achieve its goals.<br />

December 2012<br />

www.teletimesinternational.com<br />

49


Deepshri Iyer<br />

Frost & Sullivan:<br />

Regulatory compliance to be one of the key drivers of the Enterprise<br />

Security Market in the Middle East<br />

With consumers and enterprises<br />

accessing more and more<br />

applications through the<br />

Internet globally, the computing<br />

industry is witnessing a<br />

paradigm shift. Enterprises are<br />

rapidly adopting and deploying<br />

applications and new services to<br />

gain operating efficiencies. As<br />

modern-day businesses become<br />

increasingly information-centric<br />

in the Middle East with changing<br />

technology trends, effective<br />

management of information<br />

security risks is of paramount<br />

importance for decision<br />

makers. To overcome this rising<br />

complexity of associated threats<br />

such as intellectual property,<br />

identity theft, unauthorised<br />

access, service interruption, and<br />

breakdown of internal controls,<br />

a shift in focus is necessary<br />

from threat management to risk<br />

management. To address these<br />

challenges, Frost & Sullivan<br />

will be hosting the Middle East<br />

Enterprise Security Summit<br />

2012 on 21st November, at<br />

Habtoor Grand Beach Resort,<br />

Dubai, U.A.E. This summit aims<br />

to convene the best minds in<br />

Enterprise Security under one<br />

roof to create an interactive<br />

milieu for exchange of<br />

knowledge and ideas.<br />

With the increased adoption of<br />

bring-your-own-device (BYOD),<br />

cloud and computing trends<br />

in business, the need for user<br />

based security has become even<br />

bigger. The adoption of these<br />

technologies has challenged the<br />

traditional security architecture,<br />

which has been unable to tackle<br />

increasingly sophisticated<br />

attacks in the Middle East. Also,<br />

due to increasing penetration<br />

of global companies in the<br />

region and Governments plans<br />

to spend more on security<br />

technologies, there has been a<br />

growing need amongst public<br />

and private sector companies<br />

to enhance their security<br />

infrastructure with IT becoming<br />

a critical component in their<br />

operational setups. Through<br />

this summit, Frost & Sullivan will<br />

address these emerging and<br />

continuing threats to Enterprise<br />

Security, as well as brainstorm<br />

on the innovative best practices<br />

in the increasingly competitive<br />

Enterprise Security sector to<br />

combat the increasing risk of<br />

security breaches and data<br />

leakage, cyber warfare, data<br />

center security, and more in the<br />

Middle East.<br />

Andy Baul Lewis,<br />

Director, Information and<br />

Communication Technologies<br />

Practice, Middle East and North<br />

Africa, Frost & Sullivan states,<br />

“The changing Enterprise<br />

landscape and paradigm<br />

shift in communications to<br />

collaborative technologies,<br />

coupled with increased Internet<br />

penetration and information<br />

sharing, network threats are<br />

making organisations review<br />

their security policies. Also, with<br />

the Government spending on<br />

IT, the Middle East Network<br />

Security market is expected to<br />

grow over the next five years,<br />

thereby opening up huge<br />

opportunities for vendors to<br />

identify and tap.”<br />

The key areas of discussion<br />

at the Summit would<br />

include Information Security<br />

Management, Evolving Role<br />

of the CIOs, Protecting IT<br />

Infrastructure from Future<br />

Threats, Efficient and Effective<br />

ways to protect Data and<br />

Applications, Ways to Manage<br />

Security Gaps in an Enterprise<br />

and Bridging the gap between<br />

Security and Operational<br />

Efficiency.<br />

NEC strengthens measures against cyber attacks<br />

on government offices and businesses<br />

NEC Corporation has established<br />

a new company structure,<br />

the “Cyber Security Factory”<br />

(CSF), for strengthening<br />

its support of the deployment<br />

and operation of solutions that<br />

protect against cyber attacks<br />

on government offices and<br />

businesses. CSF solutions are<br />

expected to be available in<br />

Japan in 2013.<br />

In recent years, there are a<br />

growing number of organizations<br />

and individuals who have<br />

lost confidential and personal<br />

information through targeted<br />

cyber attacks. Moreover, as<br />

these attacks become more sophisticated,<br />

they also become<br />

more difficult to detect, which<br />

slows the implementation of<br />

counter measures and allows<br />

the attacks to inflict greater<br />

damage.<br />

In order to expose this threat,<br />

and support the measures that<br />

organizations take against<br />

cyber attacks, NEC already<br />

provides its “Incident Visualization<br />

Solution,” “Targeted<br />

Attack Inspection Service,” and<br />

the “Utra-High-Speed Analysis<br />

Platform: InfoFrame DWH Appliance”<br />

in Japan.<br />

NEC is leveraging this experience<br />

in the development of<br />

decision support systems for<br />

the National Security field<br />

in order to build monitoring<br />

control technologies and to<br />

offer technologies for building<br />

highly confidential network systems.<br />

This has resulted in the<br />

creation of the CSF, a company<br />

structure that horizontally links<br />

the internal departments that<br />

manage security issues. The<br />

CSF allows NEC to provide its<br />

customers with a single service<br />

package that includes the<br />

installation of its cyber attack<br />

counter-measure systems as<br />

well as operational support.<br />

“NEC’s Cyber Security Factory<br />

cooperates with domestic<br />

security companies as part of<br />

analyzing cyber attack information<br />

that is constantly changing,”<br />

said Hironori Takahashi,<br />

National Security Solutions<br />

Division, NEC. “The Factory’s<br />

solutions capitalize on its<br />

structure of accumulated and<br />

shared technologies and knowhow<br />

(cyber test range, *2) in<br />

order to effectively respond to<br />

security related incidents and<br />

unauthorized access.”<br />

50 December 2012<br />

www.teletimesinternational.com


Huawei: Customer experience<br />

The future benchmarking in Telecom innovation<br />

<strong>Teletimes</strong> Report<br />

During Middle East Telco World Summit 2012, company outlines how local service providers can shift focus<br />

from the network to the end user for better quality of services<br />

Huawei, a leading global<br />

information and communications<br />

technology (ICT) solutions<br />

provider, teamed up early this<br />

month with leading telecom<br />

operators and regulators across<br />

the Middle East to illustrate how<br />

a renewed focus on improving<br />

the customer experience will<br />

drive holistic changes in service<br />

marketing & loyalty models<br />

being deployed over the coming<br />

year.<br />

According to Huawei regional<br />

executives speaking at the<br />

recently held Middle East Telco<br />

World Summit, concerns over<br />

the rapid growth of mobile<br />

broadband traffic are encouraging<br />

operators to look not only at<br />

technology upgrades, but how<br />

service packages can be customized<br />

to meet the very specific requirements<br />

of subscribers in the<br />

Middle East. Huawei’s keynote<br />

on ‘Customer Experience Management’<br />

(CEM) showed that<br />

much of these changes shall be<br />

introduced as proactive actions<br />

to improve consumer engagement<br />

and redesign processes<br />

of call centers; enabling service<br />

providers to better measure<br />

and retain the loyalty of their<br />

customers.<br />

“Heightened competition has<br />

certainly encouraged a lot of<br />

innovation on both the services<br />

and infrastructure layer,” notes<br />

Khalid Attia, VP Professional<br />

Services Consultancy at Huawei<br />

Middle East. “Moving into<br />

2013, one of the industry’s core<br />

priorities will be to understand<br />

the multitude of financial and<br />

technical choices that enable<br />

service providers to maximize<br />

benefits and at the same time<br />

differentiate their portfolio from<br />

competitors.”<br />

This is of heightened significance<br />

in the region today as<br />

telecoms services have become<br />

less defined by the types of<br />

technology used and instead<br />

are being benchmarked more<br />

closely to the customer’s actual<br />

quality of service experience on<br />

a daily basis. Huawei believes<br />

that while there are many different<br />

features within the field<br />

of CEM, operators in the Middle<br />

East today can start by magnifying<br />

their focus on three areas<br />

in particular: Retention and<br />

Loyalty, Service Assurance and<br />

Policy Control.<br />

“The industry as a whole must<br />

transform its management style<br />

from one that focuses on the<br />

network to one that focuses on<br />

the user,” adds Khalid. “Getting<br />

closer to the actual experience<br />

of the end users can help the<br />

service providers to expedite<br />

the process of discovering areas<br />

in which performance can be improved,<br />

dramatically increasing<br />

the total value of ownership.”<br />

In line with this approach,<br />

Huawei has been developing its<br />

SmartCare® service solution to<br />

enable service providers with<br />

real-time monitoring and quality<br />

assurance on the user experience.<br />

A strategic component of<br />

Huawei’s professional service<br />

portfolio, the award-winning<br />

service solution has already<br />

been deployed by several tier-1<br />

global operators and is currently<br />

under implementation by many<br />

of the leading service providers<br />

in the Middle East.<br />

In addition to Huawei’s CEM session,<br />

the company was also active<br />

in other forums within the<br />

Middle East Telco World Summit<br />

including the dedicated ‘LTE<br />

Focus Day’ on Day 2. Huawei has<br />

become one of the world’s most<br />

important contributors to LTE<br />

standards and patents whilst<br />

gaining the lead in global LTE<br />

commercialization as the top<br />

ranked brand worldwide with<br />

more than 50% market share.<br />

Now in its 17th year, the Middle<br />

East Telco World Summit was<br />

held in Dubai on December 4 &<br />

5 and is the longest established<br />

and largest annual Middle<br />

Eastern telecoms event. Huawei<br />

was both an Event Partner for<br />

this year’s summit as well as<br />

the Silver Sponsor for the ‘LTE<br />

Focus Day’.<br />

December 2012<br />

www.teletimesinternational.com<br />

51


Tadiran Telecom enhances its offerings in China:<br />

Aeonix, the new UC&C solution,<br />

was approved by the Chinese State Grid Power<br />

Tadiran Telecom, a leader in<br />

communications solutions,<br />

announced that the Chinese<br />

State Grid power has certified<br />

the company’s Aeonix solution<br />

for use in China. Recently<br />

launched globally, Aeonix is<br />

a new, UC&C solution that<br />

consolidates disparate business<br />

applications into a single<br />

communications platform<br />

and is designed to grow and<br />

adapt intelligently to changing<br />

customer needs.<br />

Aeonix’s scalability can extend<br />

customer networks based on<br />

current demand and changing<br />

needs.<br />

Its open architecture allows<br />

customers the flexibility to<br />

buy and install only what they<br />

currently need, and to add<br />

users, remote locations, and<br />

additional applications as they<br />

become necessary, by just<br />

acquiring software licenses.<br />

Aeonix delivers unmatched<br />

versatility, simplicity, and<br />

adaptability for customers<br />

ranging from 10 to 25K users.<br />

“This recognition by the<br />

Chinese State Grid Power,<br />

in one of Tadiran Telecom’s<br />

most important markets, is an<br />

acknowledgment of Aeonix’s<br />

innovative technology and<br />

flexibility. We are looking<br />

forward to working with<br />

this prestigious customer to<br />

implement Tadiran Telecom’s<br />

comprehensive UC&C<br />

technology” said Eldad Barak,<br />

President and CEO of Tadiran<br />

Telecom.<br />

Tadiran Telecom has been<br />

involved with many large<br />

projects in China over the past<br />

few years in vertical markets<br />

such as: Power and Energy,<br />

Subway and Operators. In<br />

the power industry, Tadiran<br />

Telecom is one of the leading<br />

providers for the State Grid<br />

Power and South Grid Power.<br />

Tadiran Telecom’s projects in<br />

China include: Three Gorges<br />

and Moda pipeline, telephony<br />

solutions in Beijing, Daxing<br />

and Yizhuang subway lines,<br />

and the airport express for the<br />

2008 Beijing Olympic Games.<br />

Recent projects include:<br />

Kunming, Chongqing, Chengdu,<br />

Wuhan, Zhengzhou, Harbin<br />

and Changsha subway lines. In<br />

2012 Tadiran Telecom became<br />

a qualified supplier of Beijing<br />

Unicom.<br />

MTN Afghanistan selects AIRCOM International’s<br />

AIQ to improve network performance<br />

Zoe Davies<br />

AIRCOM International, the<br />

leading independent network<br />

planning and optimisation<br />

solutions provider, has been<br />

selected by MTN Afghanistan<br />

to improve the quality of its<br />

network using its AIQ intelligent<br />

optimisation managed<br />

services and consultancy. AIQ<br />

is a managed service solution<br />

that targets the improvement<br />

of network KPIs and network<br />

auditing. Key benefits of AIQ<br />

derive from the state of the art<br />

methodology, data collection<br />

and structure workflow.<br />

MTN Afghanistan’s selection of<br />

AIQ follows an extensive endto-end<br />

network audit carried<br />

out by AIRCOM. In this audit,<br />

AIRCOM comprehensively<br />

examined MTN Afghanistan’s<br />

network performance and<br />

optimisation requirements,<br />

assessing its radio access network,<br />

transmission network,<br />

circuit switching core, billing<br />

system and packet switching<br />

core. This audit was intended<br />

to identify existing network<br />

glitches, with AIQ then recommending<br />

a series of ongoing<br />

techniques to improve<br />

network quality of service,<br />

increase subscriber numbers,<br />

and improve revenues.<br />

AIRCOM will be instrumental<br />

in identifying and resolving<br />

areas of MTN Afghanistan’s<br />

network that might be over<br />

or under-dimensioned. This<br />

will enable the operator to<br />

improve transmission and<br />

RAN quality of service and<br />

maximise spectrum efficiency.<br />

AIRCOM will be able to identify<br />

the bottlenecks affecting<br />

network performance, where<br />

routing can be improved, and<br />

where additional capacity may<br />

be needed. This will reduce<br />

dropped call rates, improve<br />

areas of low signal strength –<br />

especially indoors – and ensure<br />

that roaming revenues are<br />

captured.<br />

“Network performance is of<br />

critical importance in ensuring<br />

we continue to meet our<br />

customer’s growing expectations,”<br />

said Hassan Jaber, CEO<br />

at MTNA. “We’re delighted to<br />

be benefiting from AIRCOM’s<br />

expertise in maintaining the<br />

highest possible standards as<br />

we look to continue to capture<br />

growing market share.”<br />

“MTN Afghanistan is continuing<br />

in its wide-ranging project<br />

to improve and optimise every<br />

part of its network, and we’re<br />

very proud to be part of that,”<br />

said Alwyn Welch, CEO, AIR-<br />

COM. “This is our third major<br />

project in Afghanistan and<br />

we’re very pleased to be extending<br />

our working relationship<br />

with MTN Afghanistan.”<br />

MTN Afghanistan was awarded<br />

the second GSM licence in Afghanistan,<br />

entering the market<br />

in 2006. In July 2012, the company<br />

was awarded a license to<br />

deploy 3G services.<br />

52 December 2012<br />

www.teletimesinternational.com


Comguard unveils irresistible bundle offer<br />

Gulraiz Khalid<br />

Comguard, a Dubai based<br />

leading value added distributor<br />

for IT security products in the<br />

Middle East and North Africa<br />

region and the part of Spectrum<br />

group in association with<br />

gateProtect and Kaspersky Lab<br />

has announced an irresistible<br />

bundle offer for its channel<br />

partners spread across the<br />

Middle East region.<br />

The latest promotional offer<br />

from Comguard brings two of<br />

the best technologies together<br />

and offers an irresistible bundle<br />

for channel partners to gain<br />

maximum value by getting two<br />

products while just spending<br />

for one.<br />

The irresistible bundle deal offers<br />

a free license of Kaspersky<br />

Small Office Security software<br />

suite on every purchase of any<br />

gateProtect firewall. Channel<br />

Partners spread across GCC<br />

and West Asia including UAE,<br />

Qatar, Kuwait, Bahrain, Oman,<br />

Saudi Arabia, Iran and Pakistan<br />

can avail the benefits from this<br />

bundle offer. The offer is valid<br />

till 31st December 2012.<br />

Gateprotect is a leading manufacturer<br />

of Next Generation<br />

firewalls and the only manufacturer<br />

worldwide to implement<br />

the ISO NORM 9241 standard.<br />

The Next Generation Firewall<br />

Appliances fromgateprotect<br />

combine state-of-the-art security<br />

and network features such<br />

as firewalls, bridging, VLAN,<br />

single sign-on, traffic shaping,<br />

QoS, IPSec/SSL (X.509), IDS/<br />

IPS, web filters, virus filters,<br />

real-time spam detection,<br />

HTTPs proxy, and VPN Crypto<br />

acceleration in a single unified<br />

system.<br />

Kaspersky Small Office Security<br />

is exclusively designed for<br />

small businesses. It delivers<br />

highly affordable world-class<br />

PC and server protection that<br />

is quick and simple to install,<br />

configure and use. You can<br />

manage your entire business<br />

network security from a single<br />

PC – performing all the tasks<br />

needed to keep your business<br />

reputation safe and your confidential<br />

information secure,<br />

without leaving your desk.<br />

Kaspersky Small Office Security<br />

takes care of your network’s<br />

Amarjot Dhanjal<br />

protection so you can take care<br />

of your business.<br />

Amarjot Dhanjal, Senior business<br />

development manager at<br />

Comguard, said, “This bundle<br />

offer is in line with our strategy<br />

to encourage our partners<br />

to do more business at good<br />

margins. We expect that this<br />

irresistible bundle deal for<br />

gateProtect and Kaspersky Lab<br />

will help our partners secure<br />

more business opportunities<br />

and gain maximum benefit.”<br />

Comguard releases version 9.2 with application filter for<br />

gateProtect next-generation firewall in the Middle East<br />

ComGuard has announced the<br />

availability of Version 9.2 of<br />

gateProtect next-generation<br />

firewall solution with an<br />

extended set of features. This is<br />

the first time that an application<br />

filter has been integrated in<br />

addition to the latest security<br />

and network features. Version<br />

9.2 will now offer customers<br />

a sustainable solution to cope<br />

with changing conditions and<br />

future challenges in IT security<br />

and data protection, along with<br />

its usual reliable performance,<br />

security and stability.<br />

This upgrade is gateProtect’s<br />

response to the fact that these<br />

days companies must follow an<br />

entirely<br />

different approach to managing<br />

security risks in IT networks.<br />

“Unlike just a few years ago, it is<br />

no longer<br />

sufficient today to filter data on<br />

the basis of ports and protocols<br />

and to block individual pages”,<br />

says.<br />

Stephan Ziegler, CTO at<br />

gateProtect, when explaining<br />

the need for an application<br />

filter. “Next-generation firewalls<br />

must now exercise stricter<br />

control over data packages and<br />

the information provided in<br />

them.”<br />

These days, cyber-attacks are<br />

based on highly specialised<br />

software, with complex<br />

programming, constant<br />

updates and numerous means<br />

of penetrating a company’s<br />

network. Web-based user<br />

programs and social networks,<br />

microblogging and streaming<br />

all offer an ideal target for<br />

malware. This type of software<br />

makes use of the existing<br />

communication structure of<br />

the corporate network or<br />

the architecture of individual<br />

applications and is extremely<br />

difficult to trace.<br />

While URL and content filters<br />

can only prevent or limit the<br />

download of unacceptable<br />

pages and content, application<br />

filters are able to go into more<br />

detail and only block certain<br />

aspects of a service or website.<br />

An application filter records the<br />

data traffic, evaluates it and<br />

analyses the data packages. The<br />

company’s<br />

IT security administrator<br />

compiles rules for the network<br />

environment on the basis of<br />

these results, ensuring that<br />

these rules are in keeping with<br />

corporate policy and are able<br />

to offer maximum protection<br />

against possible attacks.<br />

Amarjot Dhanjal, Senior<br />

business development manager,<br />

Comguard said, “With addition<br />

of application filter to URL &<br />

Content filters, version 9.2 of<br />

gateProtect next generation<br />

UTM firewall will deliver a<br />

most comprehensive security<br />

solutions that can safeguard<br />

businesses against the growing<br />

menace of security breaches<br />

and concerns of in the region.<br />

December 2012<br />

www.teletimesinternational.com<br />

53


Etisalat accompanies media representatives to<br />

visit Huawei in China to keep them updated on the<br />

technology sector<br />

Etisalat UAE has organized<br />

a delegation visit to Huawei<br />

headquarters in China<br />

which included officials<br />

from Etisalat’s Corporate<br />

Communications Department<br />

and a large group of media<br />

representatives from the UAE.<br />

During the week- long visit,<br />

they attended high level<br />

meetings and undertook<br />

various field tours to the<br />

Huawei headquarters and<br />

many of its plants, research<br />

centers and labs. The visit<br />

aimed to view closely the work<br />

details and phases related to<br />

the development of solutions,<br />

services and products that<br />

Huawei provides to the ICT<br />

sector in general and to the<br />

Etisalat network in particular.<br />

Travelling between the<br />

Chinese cities of Shenzhen and<br />

Shanghai, the visiting members<br />

were given exclusive access to<br />

a number of Huawei’s stateof-the-art<br />

global facilities.<br />

Amongst the locations<br />

visited were Huawei’s Global<br />

Headquarters, the company’s<br />

largest global R&D center, as<br />

well as Huawei’s showrooms<br />

featuring the brand’s<br />

subsidiaries. The meeting<br />

with Huawei senior executives<br />

provided an overview about<br />

the company’s plans of<br />

expansion within the Middle<br />

East over the coming years—<br />

focusing on its strategic<br />

partnerships with industry<br />

leaders in the region like<br />

Etisalat.<br />

“This initiative is a significant<br />

part of Etisalat and Huawei’s<br />

close cooperation in<br />

pioneering the world’s most<br />

advanced ICT products and<br />

services, which in turn can<br />

deliver faster and more<br />

accessible telecom services to<br />

our customers across the UAE.<br />

There is no doubt that the new<br />

generation of communications<br />

will have a vital role in<br />

enhancing the development<br />

process in all communities,”<br />

noted Mr. Jaber Al Janahi,<br />

Vice President of Corporate<br />

Communications at Etisalat.<br />

“While the ICT industry is<br />

widely recognized as an<br />

immense driver of national<br />

competitiveness and economic<br />

development, Huawei also<br />

acknowledges that the technology<br />

involved in network<br />

planning has many different<br />

facets. We thus feel that it is<br />

important to work with entities<br />

like Etisalat and the media<br />

to showcase to the public<br />

how innovations happening in<br />

places as far off as China are<br />

interconnected with concurrent<br />

research around the<br />

world, and how these collective<br />

advancements are in turn<br />

delivered to individuals each<br />

and every day,” notes Mr. Leo<br />

Xu, Vice President of Huawei<br />

Middle East. “This is especially<br />

relevant in today’s global<br />

economy where companies<br />

like Etisalat and Huawei need<br />

to stay in constant dialogue on<br />

how new technologies can better<br />

serve users worldwide—regardless<br />

of where the technology<br />

originates. It is best if the<br />

media representatives to have<br />

this direct knowledge in order<br />

to reach the public.”<br />

Over the years Etisalat and<br />

Huawei have set many regional<br />

firsts within the telecom sector<br />

including several in the UAE.<br />

In 2011, Etisalat and Huawei<br />

announced the signing of a<br />

contract to commence deployment<br />

of the region’s widest 4G<br />

LTE network in the UAE, which<br />

was realized last September<br />

and is now expected to fully<br />

cover the nation’s populated<br />

areas within the next two<br />

years. Earlier this year, Etisalat<br />

Academy also signed a memorandum<br />

of understanding with<br />

Huawei to introduce the first<br />

certified LTE training programs<br />

in the region.<br />

Other notable collaborations<br />

include the Arab world’s first<br />

commercial deployment of<br />

a 3G UMTS network in 2003,<br />

the launch of the region’s first<br />

HSPA+ network in 2006, and<br />

the building of the world’s<br />

largest GPON FTTH fiber<br />

network during 2008 in UAE.<br />

The Middle East is one of<br />

the fastest growing regions<br />

worldwide for Huawei with<br />

regional contract sales<br />

across the Middle East in 2011<br />

totaling USD3.22 billion, a 20%<br />

increase from the previous<br />

year. Through the company’s<br />

140,000-plus employees<br />

and 20-plus years in the ICT<br />

field, Huawei has established<br />

end-to-end capabilities across<br />

the telecom, enterprise and<br />

consumer markets which<br />

have been deployed in over<br />

140 countries serving more<br />

than one-third of the world’s<br />

population.<br />

54 December 2012<br />

www.teletimesinternational.com


Nawras installs high speed enterprise<br />

connectivity at GUtech campus in Halban<br />

Nawras has successfully<br />

installed a fibre optic connectivity<br />

solution at the German<br />

University of Technology in<br />

Oman (GUtech) to provide<br />

voice and high speed internet<br />

across the entire new campus<br />

in Halban.<br />

The new voice installation<br />

uses SIP Trunk (Session Initiation<br />

Protocol). This service is<br />

uniquely offered by Nawras in<br />

Oman and gives customers access<br />

to significantly more voice<br />

channels than currently available<br />

through legacy systems.<br />

In addition, it provides capacity<br />

for growth to match future<br />

expansion. The use of a Nawras<br />

Internet Enterprise (NIE) gives<br />

an uninterrupted and secured<br />

internet connection to handle<br />

data requirements.<br />

Vikash Vardhan Sharma, Key<br />

Account Manager at Nawras<br />

Business, said, “This was an exciting<br />

project for Nawras that<br />

required innovative solutions<br />

for the new university campus<br />

as it is situated two kilometres<br />

across rough terrain from the<br />

nearest fibre ring. We installed<br />

a dedicated connection from<br />

the ring to the university which<br />

will ensure fast and uninterrupted<br />

internet access as well<br />

as accommodate unlimited<br />

additional lines. This future<br />

proofs the campus, as a vital<br />

Julie Amann<br />

part of the university’s communications<br />

network.”<br />

Jiji Tom Verghese, Head of IT<br />

department at GUtech, said,<br />

“We are incredibly excited to<br />

have Nawras as our communications<br />

provider. The product<br />

designed and delivered will<br />

benefit both existing and<br />

future students as we continue<br />

to grow as a university with<br />

a diverse range of courses to<br />

meet current trends and interests<br />

in the academic realm.”<br />

GUtech offers a range of postsecondary<br />

courses. The new fibre<br />

optic connection will serve<br />

over 800 students and faculty<br />

across the campus by delivering<br />

the latest technology to<br />

meet their growing communications<br />

requirements.<br />

Nawras has been working<br />

closely with various educational<br />

institutions to support their<br />

communication needs through<br />

customised services and pricing<br />

solutions. The company’s<br />

recent solution to the Ministry<br />

of Education enabled a faster<br />

access to their central web<br />

portal. This gives parents and<br />

students a better web browsing<br />

and data connectivity experience<br />

while enhancing study<br />

support by connecting over a<br />

hundred local schools through<br />

its internet server.<br />

Nawras launches Bulk SMS packages for SMEs with free trial and setup<br />

Nawras, Oman’s customer<br />

friendly communications<br />

provider, has introduced<br />

convenient Bulk SMS services<br />

in a wider range of bundle sizes<br />

specifically to suit the needs of<br />

small and medium sized businesses<br />

(SMEs). Nawras Bulk<br />

SMS now offers customers<br />

cost effective messaging packages<br />

with just 1,000 or 3,000<br />

messages each month and no<br />

setup cost or monthly fee.<br />

The service is now rechargeable<br />

online and provides a<br />

simple and easy online tool for<br />

SMEs to dispatch messages<br />

directly to their own customers.<br />

Businesses can easily<br />

purchase new bundles using<br />

any local credit or internet card<br />

and most debit cards. Customers<br />

can also visit any of the 27<br />

Nawras stores for an immediate<br />

recharge.<br />

Besides the new recharge<br />

channels, Nawras has also<br />

redesigned the web-based<br />

access with many new features<br />

including a Microsoft Outlook®<br />

plug-in which makes sending<br />

an SMS as simple as sending an<br />

e-mail giving more options to<br />

help entrepreneurs grow their<br />

business. Message templates<br />

and groups can be created<br />

and activity reports generated<br />

whenever needed.<br />

Nawras is currently offering<br />

customers the chance to try<br />

the service for free before<br />

buying any SMS credit. After<br />

registering at any Nawras<br />

store, customers get a free trial<br />

and gain access to a dedicated<br />

and secure website where SMS<br />

Bundles can be purchased in<br />

one, three, six or twelve month<br />

packages with messages costing<br />

as little as 3.7 Baisa.<br />

Mohammed bin Jaffar Al<br />

Najwani, Nawras Business Data<br />

and Internet Products Manager,<br />

said, “We have listened<br />

to the requests of our customers<br />

to offer a more versatile<br />

messaging package that ideally<br />

caters for small businesses,<br />

entrepreneurs and home office<br />

ventures.<br />

December 2012<br />

www.teletimesinternational.com<br />

55


PCCW Teleservices receives<br />

5 contact center awards<br />

PCCW Teleservices has swept<br />

five awards at the 13th Annual<br />

Hong Kong Call Centre<br />

Association Awards. PCCW<br />

Teleservices has won two<br />

gold medal awards for Best<br />

Inbound Contact Centre Quality<br />

Assurance Professional<br />

and Best Inbound Contact<br />

Centre of Team Leader<br />

(Southern China), and three<br />

bronze medal awards for<br />

Best Offshore Contact Centre,<br />

Best Contact Centre in Training<br />

& People Development,<br />

A Mexican court has awarded<br />

damages of $2.7 billion (Dh9.9<br />

billion) against Yahoo in a contract<br />

dispute with its former<br />

partners on a directories business<br />

in the country. Yahoo announced<br />

the “non-final” judgment,<br />

saying it believed the<br />

claims against it were “without<br />

merit” and it would “vigorously<br />

pursue all appeals”. The<br />

web company said the case<br />

and Best Outbound Contact<br />

Centre Manager.<br />

The event, organized by<br />

the Hong Kong Call Centre<br />

Association (HKCCA), aims<br />

to recognize the best of<br />

the best within the contact<br />

center industry in Hong Kong.<br />

This is the 12th year in a row<br />

that PCCW Teleservices has<br />

been honored. The judges<br />

from HKCCA recognized<br />

that a PCCW Teleservices<br />

contact center tailored for a<br />

leading online travel agency<br />

Court awardes damages of $2.7 billion against Yahoo<br />

was brought by Worldwide<br />

Directories and Ideas Interactivas,<br />

which in the early 2000s<br />

produced Yahoo! Paginas tiles,<br />

a printed and digital phone<br />

book in Mexico. The two Mexican<br />

companies allege breach<br />

of contract, breach of promise<br />

and lost profits from contracts<br />

relating to the yellow-pages<br />

listings service. The ruling was<br />

made by the 49th civil court of<br />

Ivan Ho<br />

has become a showcase of<br />

offshore account management<br />

implementation. Ms.<br />

Grace Liang, Vice President<br />

of PCCW Teleservices, said,<br />

“The Awards are solid proof<br />

of PCCW Teleservices’ dedication<br />

and edge in providing<br />

world-class solutions that<br />

meet the interaction needs<br />

between our clients and their<br />

customers. We will keep up<br />

the momentum and strive to<br />

offer even better services in<br />

the future.”<br />

Russia drops lawsuit against Telenor over VimpelCom<br />

shareholding<br />

Russia’s Federal Anti-Monopoly<br />

Service has dropped its<br />

lawsuit against Telenor after<br />

the Norwegian firm raised its<br />

stake in Russia based Vimpelcom<br />

early last month.<br />

The dropping of the lawsuit<br />

was expected though after<br />

Vimpelcom’s main shareholder,<br />

Altimo Group raised its<br />

own holding in the company<br />

above Telenor’s last month.<br />

The FAS said that it has<br />

asked the Arbitration Court<br />

in Moscow to reverse the<br />

injunctions it had previously<br />

passed, which will also enable<br />

Vimpelcom to make blocked<br />

dividend payments to its<br />

shareholders.<br />

At the beginning of October,<br />

Telenor increased its holding<br />

in VimpelCom to 42.95%,<br />

compared to Altimo’s 41.85%.<br />

Telenor’s recent decision to<br />

increase its holding in the<br />

company was being opposed<br />

by the regulators who wanted<br />

to see the largest shareholder<br />

remain Russian.<br />

A few weeks later, Altimo purchased<br />

just under 6 percent<br />

of Vimpelcom shares from<br />

Ukrainian businessman Viktor<br />

Pinchuk - raising its stake to<br />

47.85% and giving it effective<br />

control of the company.<br />

Telenor had long argued that<br />

Altimo effectively controlled<br />

the Ukrainian stake anyway,<br />

and the purchase simply formalized<br />

a long held suspicion.<br />

Subject to the court approval<br />

of the request by the FAS to<br />

drop its lawsuit, Vimplecom<br />

will be able to hold its first<br />

shareholder meeting on over<br />

a year next month.<br />

the federal district of Mexico<br />

City. Yahoo declined to comment<br />

beyond its statement.<br />

Worldwide Directories and<br />

Ideas Interactivas could not be<br />

reached for comment. Court<br />

documents relating to the case<br />

are unavailable, and no mention<br />

of it was made in Yahoo’s<br />

most recent 10-! filing, which is<br />

required to list major outstanding<br />

legal risks.<br />

Gegenheimer<br />

joins Zain as CEO<br />

Kuwait’s Zain appointed Scott<br />

Gegenheimer as group chief<br />

executive on Sunday, the<br />

former monopoly said in a<br />

bourse statement, six months<br />

after he quit as CEO of rival<br />

telecom operator Wataniya.<br />

Gegenheimer will start his new<br />

role immediately, Zain said,<br />

replacing Nabeel Bin Salama,<br />

who in October announced he<br />

would step down as group CEO<br />

at the end of his contract in<br />

February 2013.<br />

Gegenheimer joined Qatar<br />

Telecom (Qtel) subsidiary<br />

Wataniya in 2002, became CEO<br />

in 2008 and resigned from the<br />

company in June this year.<br />

Kuwait is a lucrative telecom<br />

market, with its wealthy citizens<br />

heavy consumers of mobile<br />

data, but stiffening competition,<br />

tax changes and a lack of an<br />

independent regulator has<br />

darkened the sector’s outlook.<br />

Zain is the market leader<br />

with an estimated 41 per cent<br />

share of the country’s mobile<br />

subscribers at 2011-end, also<br />

operating in Saudi Arabia,<br />

Sudan, South Sudan, Iraq,<br />

Bahrain, Lebanon and Jordan.<br />

Wataniya is the No 2 operator,<br />

claiming 39 per cent of Kuwait’s<br />

mobile subscribers. It also has<br />

units in Tunisia, Algeria, the<br />

Palestinian Territories, Saudi<br />

Arabia and the Maldives.<br />

Saudi Telecom’s (STC) lossmaking<br />

affiliate Viva is Kuwait’s<br />

third mobile operator.<br />

56 December 2012<br />

www.teletimesinternational.com


Thuraya recognized<br />

as the Satellite Communications Player of the Year award<br />

Industry leading Mobile<br />

Satellite Services operator,<br />

Thuraya Telecommunications<br />

Company, today announced<br />

it was recognized as Satellite<br />

Communications Player of<br />

the Year by the Arab States<br />

Broadcasting Union (ASBU) at<br />

the BroadcastPro Middle East<br />

2012 Awards event held in Dubai<br />

on November 12. Thuraya was<br />

given the award for supporting<br />

Journalism on-the-move and<br />

providing connectivity to those<br />

who are putting their<br />

lives on the line to<br />

report on important<br />

events across the<br />

region.<br />

BroadcastPro Middle<br />

East noted the<br />

significant contribution<br />

of Thuraya’s flagship<br />

product for reporters<br />

in the field, the Thuraya<br />

IP, which is an ultraportable<br />

broadband<br />

terminal allowing<br />

Mini Sree Narayanan<br />

broadcasters to link up<br />

to their studios across<br />

Thuraya’s congestionfree<br />

satellite network<br />

using convenient uplink/<br />

downlink streaming<br />

speed packages.<br />

Thuraya’s Vice President<br />

of Marketing, Mr.<br />

Sanford Jewett,<br />

participated in the<br />

ceremony and accepted<br />

the award on behalf of<br />

the Company.<br />

Shereen Hanafi heads up Corporate<br />

Communications at Thuraya<br />

Thuraya has announced that<br />

Shereen Hanafi has been<br />

appointed Director of Communications<br />

at Thuraya. In<br />

the newly created role, she<br />

reports to T. Sanford Jewett,<br />

Vice President of Marketing at<br />

Thuraya. She is responsible for<br />

the Company’s global communications<br />

strategy including<br />

media relations and corporate<br />

communications.<br />

Shereen brings nearly 15 years<br />

of experience in the fields<br />

of corporate communications,<br />

marketing and product<br />

management in satellite and<br />

telecoms industries. Her prior<br />

roles were with SES, Xantic,<br />

Fenestrae and KPN. During her<br />

9 year tenure at SES, she was<br />

responsible for launching and<br />

raising the Company’s brand<br />

profile, in addition to leading<br />

the team responsible for executing<br />

its marketing communications<br />

activities across media<br />

and enterprise markets in the<br />

Americas, Europe, the Middle<br />

East, Africa and Asia Pacific.<br />

“We welcome Shereen to the<br />

Thuraya Marketing team. This<br />

marks another step to raise our<br />

brand visibility in key market<br />

sectors including Media,<br />

Energy, Maritime, Government<br />

and NGOs.” T. Sanford Jewett<br />

said in a statement. “2013 will<br />

be a year of innovation for<br />

Thuraya, as we are gearing<br />

up for a number of product<br />

launches. We are pleased to<br />

have a seasoned professional<br />

like Shereen on board to create<br />

a strong communications<br />

function that supports our<br />

growth ambitions with<br />

consistent sector and solutions<br />

focus.<br />

Making copies of data – Better media options<br />

Recently I delivered a desktop<br />

with dual boot operating<br />

system options including<br />

Windows and Linux to a client.<br />

I booted windows XP first and<br />

the client asked “Is it Linux?”<br />

probably the Linux GUI made<br />

him consider this. This shows<br />

that that many users do not<br />

need to care about the type of<br />

technology.<br />

The year is 2012. USB drives<br />

are available along with CD/<br />

DVD/DL/BluRay writers. While<br />

writing DVDs, people do follow<br />

a multisession that may cause<br />

loss of files in some cases. USB<br />

is considered as a better option<br />

than multisession.<br />

I have noticed that Windows<br />

machines also do multisession,<br />

and the formats or options<br />

are not transparent. Also the<br />

user is not even informed that<br />

writing multiple times to a CD/<br />

DVD medium shall cause a<br />

multisession to be created. So<br />

here are some suggestions for<br />

users.<br />

Avoid multisession writing as<br />

it is likely to cause data loss.<br />

Make sure your software is set<br />

to close all disks written and<br />

write only once. For RW disks,<br />

you need to format the disk<br />

before writing again. To add<br />

more material to an RW disk,<br />

do the following. Copy data<br />

from the CD/DVD onto the hard<br />

disk. Format the CD/DVD. Add<br />

the old and new data as a new<br />

closed single session. Use USB<br />

Khawar Nehal<br />

media for data which changes<br />

many times.<br />

Hard disks can fail any time and<br />

usually last about 3 years. Data<br />

saved on a CD/DVD may last<br />

about 5 years. The toughest<br />

media for physical survival is<br />

the USB flash drive. Though it is<br />

still not sure how many years a<br />

USB can retain the data.<br />

I would suggest the readers to<br />

take copies of data on USB or<br />

DVDs; it cost a lot less and is<br />

more reliable.<br />

December 2012<br />

www.teletimesinternational.com<br />

57


PTCL celebrates 41st National Day of UAE<br />

H.E. Essa Abdullah Al Basha Al Noaimi (Middle), Ambassador of UAE along with PTCL President and CEO,<br />

Mr. Walid Irshaid (2nd Right) and SEVP Commercial, Mr. Naveed Saeed (1st Right) along with other PTCL<br />

officials at PTCL stall on 41st National Day of UAE.<br />

PTCL holds Annual Sales Conference<br />

Pakistan Telecommunication<br />

Company Limited (PTCL) held a<br />

day long Annual Sales Conference<br />

2012 in Islamabad. Senior<br />

(SEVP) Commercial PTCL, Naveed<br />

Saeed and Senior Executive<br />

Vice President (SEVP) Human<br />

Resources PTCL, Syed Mazhar<br />

Hussain led the conference by<br />

sharing valuable insights and<br />

holding brainstorming sessions,<br />

focusing on improving the processes<br />

and methodologies determining<br />

the customer experience.<br />

“Our people empower our<br />

business by conceiving ideas,<br />

sharing insights, and working together<br />

to create solutions with<br />

a single minded focus i.e. boosting<br />

our customers confidence<br />

for the offered products and<br />

services”, said Senior Executive<br />

Vice President Commercial PTCL,<br />

Naveed Saeed, while chairing<br />

the conference. “Innovative<br />

thinking and out of the box business<br />

ideas are vital to remain<br />

competitive in the ever changing<br />

telecom industry”, he added<br />

further. Themed “It matters not<br />

how far your goal is, but how far<br />

you are ready to go”, the conference<br />

was attended by PTCL’s<br />

countrywide sales management<br />

teams comprising consumer<br />

sales, direct and indirect sales,<br />

corporate sales, contact centers,<br />

one-stop shops, wire-line and<br />

wireless departments.<br />

Aqeel Shigri<br />

PTCL connects<br />

remote<br />

Balochistan<br />

through Vfone<br />

Wireless<br />

Service<br />

As part of its vision to<br />

bring latest Information<br />

and Communication<br />

Technologies (ICT) to<br />

the remotest areas of<br />

the country, Pakistan<br />

Telecommunications<br />

Company Limited (PTCL)<br />

has extended its Vfone<br />

wireless service to isolated<br />

Mekhtar, Bard and Murgha<br />

Kibzai areas of Balochistan.<br />

Part of Loralai region of<br />

Balochistan, Mekhtar, Bard<br />

and Murgha Qibzai areas<br />

are one of the remotest<br />

areas of the country.<br />

PTCL aims to facilitate<br />

the people of the region<br />

with the launch of Vfone<br />

service.<br />

PTCL Vfone has the<br />

country’s largest WLL<br />

coverage and is available<br />

with both prepaid<br />

and postpaid options.<br />

Supported by high-speed<br />

CDMA technology, Vfone<br />

also offers SMS and<br />

internet connectivity at<br />

affordable rates.<br />

“Our vision is to bring<br />

latest telecommunications<br />

infrastructure to every city<br />

and village of Pakistan,”<br />

said PTCL Executive Vice<br />

President (EVP) Wireless,<br />

Omer Khalid. “Provision<br />

of Vfone services in the<br />

area will go a long way in<br />

fulfilling the communications<br />

needs of the people<br />

of Balochistan.”<br />

58 December 2012<br />

www.teletimesinternational.com


ZONG and Huawei establish state-of-the-art<br />

GSM laboratory at NUST<br />

ZONG, the international brand<br />

of China Mobile and Huawei - a<br />

leading global information and<br />

communications technology<br />

(ICT) solutions provider have<br />

established a state-of-the-art<br />

GSM laboratory and training<br />

center at National University<br />

of Science and Technology<br />

(NUST) to liaison with the<br />

telecom industry’s needs by<br />

creating a bridge between the<br />

academia and the corporate<br />

world.<br />

With the expertise of China<br />

Mobile Pakistan and Huawei’s<br />

investment of US$ 1.3 million in<br />

hardware, the GSM laboratory<br />

will be providing exposure<br />

and hands-on experience<br />

of operating high-tech GSM<br />

equipments which can be<br />

used as platform for further<br />

Research and Development<br />

(R&D) for Value Added Services<br />

(VAS).<br />

This lab is to be used for study<br />

purposes; the lab is a complete<br />

telephone network including a<br />

GSM mobile infrastructure with<br />

one MSC, one BSC and one<br />

BTS, HLR and media gateway.<br />

The lab will also provide the<br />

platform for development of<br />

software, tools and patches<br />

to remove discrepancies.<br />

It will familiarize students<br />

(From 3rd left) Chinese Ambassador to Pakistan Mr. Liu Jian; Eng. Mohammed Ashar, Rector, NUST;<br />

Dr. Fan Yunjun, CEO, ZONG and Geng Simeng, CEO, Huawei and (1st left) Dr. Arshad Ali, DG-SEECS.<br />

with the fault, configuration,<br />

security, network performance<br />

management of telecom<br />

infrastructure.<br />

Dr. Fan Yunjun, CEO, ZONG<br />

said that the GSM lab created<br />

by ZONG is a fundamental<br />

part of their corporate social<br />

responsibility as helping<br />

young people access quality<br />

technological education<br />

will lay the foundation of<br />

cultivating talent necessary for<br />

the advancement of industry<br />

and development in Pakistan.<br />

Speaking at the launch Chinese<br />

Ambassador to Pakistan Mr. Liu<br />

Jian said “I am pleased to learn<br />

that ZONG has initiated such a<br />

marvelous project to help the<br />

talented students accomplish<br />

their goals. And with Huawei’s<br />

laudable investment of 1.3<br />

million dollars, I am confident<br />

that this lab is furnished with<br />

the latest technology where<br />

students will be able to gain<br />

experience related to practical<br />

application of communication<br />

standards.”<br />

He further added, “Moreover,<br />

ZONG’s and Huawei’s efforts<br />

do not only represent<br />

promotion of technological<br />

education; they also symbolize<br />

the commitment of China<br />

to Pakistan.” ZONG is China<br />

Mobile’s first venture outside<br />

of China. China Mobile has<br />

made the largest investment<br />

among all the Chinese<br />

investment in Pakistan and<br />

is considered an emissary of<br />

friendship between Pakistan<br />

and China.<br />

<strong>Teletimes</strong> Online Survey Report<br />

Government control inhibit the growth of<br />

Internet innovation?<br />

This month’s online survey inquired the respondents to tell us<br />

If they believe that ‘Government control inhibit the growth of<br />

Internet innovation?’ results show that 45% of the respondent were<br />

of the view that Government control does restrict innovation over<br />

the Internet while the rest said it doesn’t.<br />

Yes 45%<br />

No 50%<br />

Don’t Know 5%<br />

December 2012<br />

www.teletimesinternational.com<br />

59


Telecom infrastructure specialist Flexenclosure opens<br />

new office in Islamabad<br />

Flexenclosure, a specialist<br />

developer of intelligent<br />

power management systems<br />

and modular data centres<br />

for the telecom industry has<br />

announced the opening of a<br />

new office in Islamabad. The<br />

new office will serve Pakistan<br />

and Central Asia and is fastgrowing<br />

Flexenclosure’s<br />

fourth new office in 2012, after<br />

Gurgaon, India, Lagos, Nigeria,<br />

and Dubai, UAE.<br />

Flexenclosure has made<br />

great inroads in Africa and<br />

Asia with its award-winning<br />

power management solution<br />

eSite and its energy efficient<br />

modular data centre eCentre.<br />

Driven by the need for<br />

intelligent, green, advanced<br />

energy efficient solutions<br />

to power base stations,<br />

Flexenclosure’s solutions have<br />

become sought after by global<br />

mobile operators looking for<br />

reliable green solutions to<br />

lower their operating expenses<br />

and reduce their dependency<br />

on diesel fuel to power base<br />

stations.<br />

eSite is a power solution for<br />

off-grid and unreliable grid<br />

base station sites that cuts<br />

diesel-related costs by up<br />

to 90 percent. Powered by<br />

renewable energy sources<br />

or the grid and a backup<br />

genset, eSite can deliver a 90<br />

percent reduction in diesel fuel<br />

consumption, CO2 emissions,<br />

and energy related OPEX<br />

compared to traditional diesel<br />

based systems.<br />

eCentre is a complete, prefabricated,<br />

modular solution<br />

to house and power data and<br />

telecom equipment. Optimised<br />

for energy efficiency and<br />

low total cost of ownership,<br />

eCentre is specifically designed<br />

to be fast to deploy and fully<br />

future proof.<br />

The new office in Islamabad,<br />

Pakistan, will cover Pakistan<br />

and Central Asia. In Pakistan<br />

alone, there is a market of at<br />

least 35,000 telecom towers,<br />

of which majority are without a<br />

reliable grid connection.<br />

“Central Asia is a region with<br />

severe challenges related to<br />

power generation,” said David<br />

King, CEO, Flexenclosure.<br />

“Pakistan is a country with<br />

a growing telecom market,<br />

but the gap between power<br />

generation and power<br />

requirement is widening at<br />

a phenomenal rate, with<br />

demand for electricity<br />

increasing faster than the<br />

power companies’ ability to<br />

generate it. In Afghanistan<br />

about 70 percent of the base<br />

station sites are off-grid and<br />

most of the on-grid sites<br />

have highly unreliable grid<br />

connections.”<br />

“So the challenges are huge,<br />

and this is where eSite and<br />

eCentre fit in perfectly. eSite,<br />

with its ability to power base<br />

stations in areas off the grid or<br />

with unreliable grid, can help<br />

mobile operators reach target<br />

groups that would otherwise<br />

have been uneconomical to<br />

serve.”<br />

Flexenclosure already has<br />

experience working in<br />

Pakistan and the company has<br />

previously deployed thousands<br />

of telecom site solutions to<br />

Pakistan alone. Establishing<br />

an office in Islamabad gives<br />

the company a stronger focus<br />

on the region and ensures<br />

that it is present in all relevant<br />

markets for its eSite solution.<br />

Flexenclosure’s new office<br />

is located in the Islamabad<br />

area F-6/1. It will be headed<br />

by Nadeem Chaudry, who<br />

will lead Flexenclosure’s<br />

sales efforts in Pakistan and<br />

Central Asia. Mr. Chaudry has<br />

previously held managerial<br />

positions in the telecoms<br />

industry with Malaysian data<br />

services company Dancom,<br />

and Acision, world leader<br />

in text messaging software<br />

selling into the telecom sector.<br />

“A local office is important to<br />

show our customers that we<br />

are serious in our commitment<br />

to deliver reliable and sustainable<br />

power solutions in the region.<br />

This is another important<br />

step in Flexenclosure’s quest<br />

to become the world leader in<br />

energy economy off the grid,”<br />

concludes Mr. King.<br />

Microsoft has emerging marketplace in Pakistan: Sherif Morsi<br />

Pakistan is important to Microsoft<br />

in the world as there are<br />

huge opportunities in Pakistan<br />

due to huge population,<br />

computer users and significant<br />

developer community, which<br />

shows its plan to introduce<br />

Urdu as a language option on<br />

Windows 8.<br />

This was stated by Microsoft<br />

North Africa, East Mediterranean<br />

and Pakistan Business<br />

Group Lead Sherif Morsi. Microsoft<br />

has lunched Windows 8 in<br />

Pakistan same time it unveiled<br />

it in other part of the world.<br />

Whenever we have upgraded offers<br />

we want to make sure these<br />

are available in Pakistan also so<br />

that consumers here can benefit<br />

from such offers timely.<br />

Pakistan is also big in terms of<br />

PC shipments, which presents<br />

us with a huge opportunity<br />

with current installed base, he<br />

said. The number internet users<br />

are on the rise besides people<br />

are very avid having advanced<br />

laptop, Tablet PCs and Smartphones,<br />

Morsi said.<br />

Microsoft has emerging marketplace<br />

in Pakistan. Microsoft<br />

ensures support to local community<br />

to build local apps. For<br />

this reason, we are engaging<br />

with developers on regular basis<br />

to guide them to develop locally<br />

relevant apps.<br />

Pakistani developers can build<br />

and develop applications for<br />

Windows 8 because the GMaps<br />

developed by a Pakistani developer<br />

has the highest number of<br />

downloads in Middle East and<br />

Africa region. Popcorn Time is<br />

one of the hit movie-based apps<br />

developed by Pakistani developers<br />

and Microsoft anticipated<br />

that more developers in the<br />

country will make the difference<br />

through its platform across the<br />

world. We will be featuring a<br />

lot more apps developed by<br />

Pakistani developers in near<br />

future. The apps are being designed<br />

keeping in mind different<br />

needs of customers worldwide<br />

however Microsoft has made<br />

its priority to develop apps to<br />

be relevant to the local market,<br />

Morsi said.<br />

60 December 2012<br />

www.teletimesinternational.com


How technology can enable a Literate<br />

Pakistan in 24 months – A self experience<br />

Today I tried out Google Now in<br />

English, It is a search software<br />

similar to SIRI on iPhone, that<br />

allows most of the work to be<br />

done via voice. http://www.<br />

google.com/landing/now/<br />

shows an introduction video<br />

on how this works. I think that<br />

in near future this will become<br />

a platform for all commands<br />

on the phone and on the<br />

computer to give instructions<br />

on, and it will allow all other<br />

software’s to connect to it to<br />

take input from and will be<br />

used as a major input source of<br />

command.<br />

After using it for a little while<br />

I remembered how in 1989 I<br />

had made a similar device for<br />

Commodore 64 computer,<br />

where I could say 3 commands,<br />

pre recorded in my voice only<br />

and it will do the action of<br />

changing colors on my screen.<br />

And how in 2000 I had a phone<br />

that allowed me to speak the<br />

name of the person and the<br />

phone will dial the number,<br />

and the amazing part was the<br />

accuracy of the new Google<br />

now input method and how it<br />

was able to understand not just<br />

me but all my family.<br />

When I offered it to my father<br />

he also remembered my 24<br />

year old device and said, how<br />

will it know my voice since<br />

you made it, first I did not<br />

understand, but then now I<br />

realize that he may have been<br />

thinking of the same voice<br />

master made for Commodore<br />

64 by me before.<br />

Thinking of this, I was thinking<br />

that we need to invest time<br />

to make the same system<br />

understand Urdu/Hindi , so<br />

that the 1.5 billion people in<br />

India, Pakistan, Nepal and<br />

Bangladesh who speak the<br />

same language can start<br />

communicating the world and<br />

request the information via<br />

voice.<br />

Then I thought, where will we<br />

find the money to fund this<br />

project? and then I thought<br />

of the USF - Universal Service<br />

Fund. USF is made for creation<br />

of Technology and providing<br />

technology to the masses, and<br />

what better use of it to create<br />

a technology that will allow the<br />

masses computer literate over<br />

night.<br />

Let me Give you some<br />

background on why I think this<br />

is possible, For many years I<br />

have been viewing technology<br />

evolve. I had been saying now<br />

for 1 year that in 3 years prices<br />

of android will be 2000 rupees.<br />

Few days ago, I met the CEO<br />

of Advance Telecom in Karachi,<br />

and he showed me a iPhone<br />

sized Chines phone for 2000<br />

rupees retail price, I asked him,<br />

when can we expect Android<br />

in this, he said 6 to 9 months,<br />

I asked do you think by 18<br />

months it will be a common<br />

device in 2000 rupee with<br />

android inside, and he said yes.<br />

Now remind yourselves that In<br />

Pakistan 200 rupees buy’s you<br />

Zong Unlimited Internet, and<br />

in 18 months 3G or 4G may be<br />

available in similar prices on<br />

the phone. Now Imagine a very<br />

Rehan Allahwalla<br />

poor man, who does not know<br />

how to read and write, but<br />

does know how to view, and<br />

speak, He will pick up his phone<br />

and say “Achi kapaas kaisay<br />

ugaatay gain” and he will get a<br />

Youtube video explaining that<br />

to him?<br />

The only obstacle I see for now<br />

is this voice input software<br />

does not understand Urdu<br />

at this time, and if we can<br />

work with Google to create<br />

an engine that will allow us<br />

to be able to speak Urdu to<br />

the phone, that will change<br />

everything. I certainly believe<br />

that in near future some more<br />

serious work will be performed<br />

on this technology to enable a<br />

more literate Pakistan in next<br />

24 months.<br />

Nokia Pakistan becomes the top brand<br />

on Facebook with 1 million fans<br />

Having been launched in February<br />

this year, Nokia Pakistan<br />

Facebook page beats all the<br />

other brands on Facebook to<br />

become the most liked brand<br />

in Pakistan with 1 million fans.<br />

This record achievement<br />

became possible in only a short<br />

span of 9 months.<br />

Nokia entered the Facebook<br />

with a clear strategy to share<br />

interesting information, engage<br />

consumers with the latest<br />

Nokia devices and to make<br />

Nokia experience more fun for<br />

everyone. Soon after Nokia<br />

Facebook page was launched,<br />

it became the fastest growing<br />

brand on the social network.<br />

More than 6 million Pakistanis<br />

are currently using Facebook<br />

and one can safely infer that<br />

majority of them are Nokia users<br />

and fans. With its Facebook<br />

page, Nokia Pakistan aims to<br />

connect with its millions of fans<br />

in Pakistan on a more personal<br />

level. Nokia Pakistan has today<br />

become the most happening<br />

Facebook page with exciting<br />

games and activities that give<br />

everyone a chance to win and<br />

stay updated with the latest<br />

that Nokia has to offer on:<br />

http://www.facebook.com/<br />

NokiaPakistan.<br />

“We are thoroughly pleased<br />

with the growing excitement<br />

around Nokia Pakistan on<br />

Facebook. For us, achieving 1<br />

million fans of our Facebook<br />

page is a proof that Nokia<br />

<strong>Teletimes</strong> Report<br />

continues to deliver an<br />

exceptional communications<br />

experience to consumers. It<br />

also reflects the fact that Nokia<br />

has been able to successfully<br />

connect with Nokia fans across<br />

Pakistan on a personal level,”<br />

said Haseeb Ihtisham, head of<br />

marketing, Nokia Near East.<br />

With so much buzz around<br />

it, Nokia Pakistan Facebook<br />

page has evidently become the<br />

iconic social media brand in<br />

Pakistan.<br />

December 2012<br />

www.teletimesinternational.com<br />

61


Global Telecom events 2012-13<br />

December 2012<br />

Cloud Middle East<br />

04 - 05 Dec - Dubai, UAE<br />

Middle East Com<br />

04 - 05 Dec - Marriot Magquis Hotel, Dubai<br />

Digital TV Summit 2012<br />

04 - 05 Dec - London, UK<br />

MVNO Industry Summit Middle East<br />

04 - 05 Dec - Dubai, UAE<br />

6th Pakistan Microfinance Forum<br />

05 Dec - Karachi, Pakistan<br />

China Carriers Forum 2012<br />

06 - 07 Dec - Shanghai, China<br />

4th edition of FTTH Council MENA annual conference<br />

12 - 13 Dec - Doha, Qatar<br />

India Telecom 2012<br />

13 – 15 Dec – New Delhi, India<br />

January 2013<br />

OPASTCO’s 50th Annual Winter Convention<br />

05 - 09 Jan - Kauai, HI<br />

Convergence India 2013<br />

16 - 18 Jan - New Delhi, India<br />

Wireless Symposium<br />

16 - 18 Jan - San Antonio, TX<br />

PTC conference<br />

20 - 23 Jan - Honolulu Hawaii, USA<br />

Customer Experience Management in Telecoms<br />

21 – 24 Jan - London, UK<br />

Big Data Monetisation in Telecoms<br />

22 – 24 Jan - Venue to be confirmed, UK<br />

WHIR Networking Event<br />

24 Jan - TX, USA<br />

Smart Metering and Grids Cyber Security Summit 13<br />

24 - 25 Jan - London, UK<br />

Alaska Telephone Association Winter Conference<br />

27 - 30 Jan - Ka’anapali, HI<br />

WDM Asia 2013<br />

28 - 30 Jan - Singapore, Asia<br />

APAC WDM and Next Generation Optical Networking<br />

28 - 30 Jan - Singapore, Asia<br />

Roaming MENA 2013<br />

29 - 30 Jan - Dubai, UAE<br />

DECT & CAT-iq World 2013<br />

29 - 30 Jan - Barcelona, Spain<br />

TelecomFinance 2013<br />

30 - 31 - Jan - London, UK<br />

CDN Asia 2013<br />

29 - 30 Jan - Singapore<br />

February 2013<br />

World Summit Award 2013<br />

03 - 05 Feb - Abu Dhabi<br />

LTA Annual Convention<br />

06 - 08 Feb - New Orleans, LA<br />

Mobile Number Portability Forum 2013<br />

11 - 12 Feb - Dubai, UAE<br />

TELSA<br />

17 - 19 Feb - Riyadh, KSA<br />

STO Europe 2013<br />

18 - 20 Feb - Aberdeen, UK<br />

FTTH Council Europe<br />

19 - 21 FEb - London, UK<br />

APRICOT<br />

19 Feb - 1 Mar - Shangri-la Hotel, Singapore<br />

Mobile World Congress<br />

25 - 28 Feb - Barcelona, Spain<br />

62 December 2012<br />

www.teletimesinternational.com


March 2013<br />

Cable Congress 2013<br />

5 - 7 March - London, UK<br />

MENA ICT Forum 2013<br />

06 - 07 Mar - Dead Sea, Jordan<br />

COMTEL<br />

10 - 13 Mar - Las Vegas, NV<br />

Cards and Payments Africa<br />

11 - 13 Mar - Johannesburg, South Africa<br />

CABSAT 2013<br />

12 - 14 Mar - DWTC Dubai, UAE<br />

IT & Software Excellence Awards 2013<br />

13 Mar - London, UK<br />

IT Leaders Africa Summit<br />

13 - 14 Mar - Johannesburg, South Africa<br />

OFC/NFOEC<br />

17 - 21 Mar - Anaheim, CA<br />

Cyber Security UAE Summit 2013<br />

18 - 19 Mar - Dubai, UAE<br />

Broadband MEA 2013<br />

19 - 20 Mar - Marriott, Marquis - Dubai<br />

COMEX 2013<br />

25 - 29 Mar - Muscat<br />

TV Connect 2013<br />

19 - 21 Mar - London, UK, Europe<br />

April 2013<br />

Western Telecom Alliance Spring Meeting<br />

07 - 10 Apr - Las Vegas, NV<br />

CONNECT 2013<br />

09 - 11 Apr - Karachi, Pakistan<br />

International ICT Expo<br />

13 - 16 Apr - Hong Kong, China<br />

4th Telco Cloud Summit<br />

15 - 17 Apr - London, UK<br />

Big Data in Telecoms 2013<br />

15-17 Apr - London<br />

Caspian Telecoms 2013<br />

18 - 19 Apr - Intanbul, Turkey<br />

Telecom Cloud Services Summit 2013<br />

22 - 24 Apr - London, UK<br />

FTTx Summit Europe 2013<br />

23 – 25 Apr - Berlin, Germany<br />

Telecom CEM World Congress 2013<br />

23 - 24 Apr - Grand Connaught Rooms, London<br />

TD-LTE Summit<br />

23 - 24 Apr - Singapore<br />

Telecoms Regulation Forum 2013<br />

23 - 24 Apr - Venue TBC<br />

Transport Networks for Mobile Operators 2013<br />

23 - 25 Apr - Hotel Russell, London<br />

4G World India<br />

25 - 26 Apr - Delhi, India<br />

Data Center World<br />

28 April - 02 May - Las Vegas, NV<br />

May - June 2013<br />

LTE MENA 2013<br />

13 - 14 May JW, Marriott, Marquis - Dubai<br />

The Mobile Show ME-2013<br />

14 - 15 May - Dubai, UAE<br />

QITCOM Exb. & Conference<br />

14 - 16 May - Qatar<br />

IIR Telecoms Critical Communications World<br />

21 - 24 May - Paris, France<br />

KITEL 2013<br />

28 - 30 May - Almaty, Kazakhstan<br />

WDM & Next Generation Optical Networking 2013<br />

17 - 20 June - Grimaldi Forum, Monaco<br />

Hosting Con<br />

17 - 19 June - Austin, TX<br />

CommunicAsia 2013<br />

18 - 21 June - Singapore<br />

December 2012<br />

www.teletimesinternational.com<br />

63


Teletoons<br />

Download at 20%<br />

Download at 85%, nearly there I<br />

just hope this storm doesn’t knock<br />

out the modem.<br />

#%&@!!!<br />

Didn’t you get the memo about<br />

the paperless office of the future?<br />

I did! I’m making copies<br />

for everyone right now!<br />

I’m going to<br />

give you some<br />

tablets...<br />

Do they run<br />

on android?<br />

Mobile data is so cheap now, I<br />

need something extra to keep<br />

them coming here.<br />

64 December 2012<br />

www.teletimesinternational.com

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