Contents - Connect-World

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Contents 

3 & 4 - Connections 63 - Last Words 64 - Reply Card 

6 

Global development 

ICTs–Developing the human potential 

by Ambassador Dr Makarim Wibisono, Republic of Indonesia; 

Member of the UN-ICT Task Force; Former President of the United 

Nations Economic and Social Council 

ICTs boost economic and social development, help combat 

poverty and promote equality and gender empowerment. 

Developing countries trying to implement ICTs have often failed 

due to the quality of the available human resources. To foster 

sustainable human development, a concerted effort is needed 

to integrate ICTs into educational programmes and to promote 

learning as a basic human right. 

26 

Developing regions and 

technology 

Connecting people—new technologies, 

new hope 

by Bill Owens, President and CEO, Nortel Networks 

For many of the worlds inhabitants telephone service is still a 

luxury. Half of Africas 800 million people and 75 per cent of 

China's 1.3 billion inhabitants have never made a phone call. 

Converged networks, using packet technologies, can make 

communication affordable and revolutionize the lives of such 

peoplehow they work, learn, receive medical services, travel 

and entertain. 

11 

14 

National development 

Pervasive connectivity—towards building 

a knowledge society in Malaysia 

by The Honourable Dato’ Seri Dr Lim Keng Yaik, Minister of 

Energy, Water and Communications, Malaysia 

Malaysia needs to build its ICT infrastructure and increase the 

effective use of information technology to make the transition 

from a low technology, labour-intensive economy, to a high 

value-added economy. It is extending access to all segments of 

society by providing access in government departments, 

schools, research institutions, hospitals, libraries and community 

centres. 

Digital television broadcasting in 

Australia 

by Lyn Maddock, Acting Chair, Australian Broadcasting Authority 

Digital television broadcasting is now available to more than 

90 per cent of Australias population. The Australian 

Broadcasting Authority (ABA) has taken care to protect the 

rights of consumers, create a competitive market place, and 

foster the development of new broadcasting and data services 

during the transition to digital. 

29 

33 

Business development 

Asian tigers in a global market—technology 

implications for smaller organisations 

by Derek Williams, Executive Vice-President, Oracle Corporation, Asia 

Pacific Division 

Most large enterprises and governments across Asia Pacific have 

embraced Internet-based business processes and application. 

Behind these large organisations, a network of small and midsize 

enterprises dominates Asia Pacifics business and is the backbone 

of the global commerce value chain. Asia Pacifics smaller 

organisations can become more competitive in the global value 

chain through strategic adoption of IT. 

Mobility and small business 

Mobile enterprise: big opportunities for 

smaller firms 

by Mats Victorin, Regional Head, Asia Pacific, Ericsson Enterprise 

19 

Implementing policy to bridge Korea’s 

digital divide 

by Dr Yeon-Gi Son, President/CEO, Korea Agency for Digital Opportunity 

and Promotion. 

As the business world becomes more global, enterprises, especially 

smaller one need to be more responsive, more available, 

more flexible and more efficient than ever Mobile enterprise 

solutions and services can play a key role in leveling the playing 

field for SMEs. For operators, this represents a great competitive 

opportunity to address the valuable enterprise segment. 

Korea, an information society leader, has the worlds highest 

broadband Internet penetration. The governments policies aim 

at promoting the digital inclusion of Korean society as a whole. 

The government provides many with subsidised or free equipment 

and Internet access. Now its focus is shifting towards promoting 

the more effective use of IT. 

Regional development–wireless 

broadband 

22 

Tax Office tip: to try technology; talk to 

taxpayers 

by Bill Gibson, Chief Information Officer, Australian Taxation Office 

36 

Broadband wireless, people and the 

economy 

by Guy J. Kelnhofer III, President and CEO, NextNet Wireless, Inc. 

Australias Tax Office has been working to make it easier and 

cheaper for people to comply with their tax obligations. Its 

Listening to the community programme and Simulation 

Centre allow designers and users of the tax system to share 

experiences. As a result, a series of on-line systems now provide 

businesses and tax agents with higher quality, more timely 

information. 

Asias Internet driven integration into the global economy has 

fuelled job creation. Workers migrating to regions with essential 

services and jobs bring crowding and overload the service in 

these regions. These jobs are terrific for economies and people, 

but threaten traditional family structures and debilitate regions 

left behind. Wireless broadband can inexpensively connect 

these regions and help reverse this decline. 

All articles are available online at: www.connect-world.com 1

Contents 

40 

46 

VoIP 

VoIP networking for economic development 

by Richard C. Grange, President and CEO, New Global Telecom 

Voice-over-Internet Protocol or VoIP is changing the worlds 

telecommunications. In the USA, VoIP is regulation free and 

growing rapidly. Skype, offering free computer-to-computer 

voice service, has millions of users. Operating companies routinely 

use IP services to carry long-distance traffic. Companies of 

all sizes and residences will soon be using VoIP for low-cost, 

affordable, communications. 

Wireless Internet 

Wireless Internet access as the key to 

knowledge-based growth and economic 

prosperity 

by Thomas A. Freeburg, Chief Operating Officer and Director of 

Strategy, MemoryLink 

Giving a farmer a telephone can double his income; connecting 

workers to the Internet provides a similar advantage. Two 

billion additional Internet connections are needed for Asia- 

Pacific to reach North American penetration levels. Wireless 

operating at unlicensed frequencies, with capital investments 

as low as US$9 per dwellingis an economical way to provide 

such connectivity. 

55 

58 

New technology, new users, new possibilities 

in China 

by Charles Henshaw, Executive Director and Chief Executive Officer, 

China Resources Peoples Telephone Company Limited 

China, the worlds largest cellular user still has low market penetration, 

Hong Kong has one of the highest. In both, voice 

drives mobile usage, but data services are proliferating. Mobile 

growth in Hong Kong depends upon applications and content 

availability. In China, growth in mobile data is limited while 

awaiting government regulation of 3G. 

Location-based systems 

Locating everything–electronic trackers 

by Chris Wade, Chief Executive Officer, Cambridge Positioning 

Systems Ltd.–CPS. 

New technology lets mobile operators accurately track users, 

even in crowded city centres and indoors. Device manufacturers 

are now integrating standardised, high accuracy, location 

technology into phones and other devices. The technology is 

used for everything from child and pet tracking, to fleet and 

workforce management, to locating laptops, cash boxes and 

other valuable assets. 

Billing 

Broadband wireless 

61 

Real-time billing makes its mark in 

emerging markets 

by Yossi Shabat, Comverse, Division Vice-President, Asia Pacific 

48 

The road to broadband wireless—An 

industry overview 

by Majed Sifri, President and CEO, Redline Communications Inc. 

There is great need for high performance voice, data and video 

communications for applications such as e-learning, e-government 

and surveillance. Broadband wireless can provide backhaul 

for mobile and fixed wireless networks and bridge widely 

separated local area WiFi-networks. It offers cost-effective, coverage, 

quality of service (QoS) and security in areas that preclude 

traditional broadband deployment. 

The Asia-Pacific region makes use of real-time billing; this 

reduces subscriber bad debt risk, lowers costs and assures revenues. 

Real-time authorisation, monitoring, tariffing, charging 

and account updating make prepaid systems possible. 

Consequently, they make possible mobile services in the developing 

regions of the world. Real-time billing lets emerging 

markets enjoy the same services available in developed markets. 

Mobile data 

53 

How clever mobile multimedia solutions 

can help operators across the telecom 

sphere 

by Olivier Graëff, co-founder and co-CEO of Swapcom 

Mobile operators in developing countries are attempting to 

popularise data services. SMS, multimedia and games play a 

major role in familiarising users with mobile data. Nevertheless, 

the complexities and costs of serving relatively unsophisticated 

users challenge operators. Device recognition software permits 

over-the-air troubleshooting, service updates, makes usage simpler 

for the customer, promotes usage of advanced services and 

reduces costs. 

Promotional Features 

CommunicAsia 

GSM India 

Telecomm India 

Submarine Networks 

IT Solutions 

16 

28 

37 

42 

49 

2 

All articles are available online at: www.connect-world.com

CONNECTIONS, CONEXES, CONEXINES, CONNEXIONS 

The information and communication technology sector is entering what promises to be a 

period of steady and sustained growth. The sector will not return to the wild predot.com 

bust days. Those days are gone and the sector, the sector’s very structure, is different. 

The driving forces have changed, the economics have changed, the technology 

has changed and the market, what the market expects, has changed. The eternal more, 

better, cheaper, are still market drivers, but technologies long recognised as disruptive 

are now moving to the forefront and changing the nature of the market. Other, newer, 

technological contenders are clamouring for attention. Still, irrational exuberance 

especially when spun by sales and marketingis hard to cut through. Hype and enthusiasm 

sometimes mask real promises, but, then again, sometimes not. 

Fredric J Morris 

Editor-In-Chief 

Global Development—Ambassador Dr Makarim Wibisono of the Republic of 

Indonesia, a member of the UN-ICT Task Force and the former President of the United 

Nations Economic and Social Council, argues persuasively that, although ICTs boost economic 

and social development, combat poverty, promote equality and gender empowerment, 

developing countries trying to implement ICTs have often failed due to the quality 

of the available human resources. 

National Development—The Honourable Dato Seri Dr Lim Keng Yaik, Malaysias 

Minister of Energy, Water and Communications, feels that Malaysia needs to build its 

ITC infrastructure and increase the effective use of information technology to transform 

itself from a low technology, labour-intensive economy, to a high value-added economyin 

part, by providing ITC access in government departments, schools, research 

institutions, hospitals, libraries and community centres. 

Lyn Maddock, the Acting Chair of the Australian Broadcasting Authority tells how, 

preparing for digital television broadcasting, Australia has taken care to protect the 

rights of consumers, create a competitive market place and foster the development of 

new broadcasting and data services during the transition to digital. 

The President/CEO of Koreas Agency for Digital Opportunity and Promotion, Dr Yeon- 

Gi Son, explains the policies that have made Korea so effective in promoting the digital 

inclusion of Korean society. The government has provided many citizens with subsidised 

or free equipment and Internet access, but now its focus is shifting towards promoting 

the more effective use of IT. 

Australias Tax Office has been working to make it easier and cheaper for people to comply 

with their tax obligations. According to Bill Gibson, the Chief Information Officer of 

the Australian Taxation Office, its Listening to the Community Program and 

Simulation Centre allow designers and users of the tax system to share experiences. As 

a result, a series of on-line systems now provide businesses and tax agents with higher 

quality, more timely, information. 

Developing Regions and Technology—Bill Owens, Nortels President and CEO, 

speaks of the worlds many inhabitants for whom the telephone is still a luxury. Half of 

Africas population and 75 per cent of China’s inhabitants have never made a phone call. 

Converged networks, using packet technologies, can make communications affordable 

and revolutionise the lives of such peoplehow they work, learn, receive medical services, 

travel and entertain. 

Business Development—Most large enterprises and governments across Asia Pacific 

have embraced Internet-based business processes and application, explains Derek 

Williams, the Executive Vice-President of Oracles Asia Pacific Division. A network of 

small and mid-size enterprises, though, dominates Asia Pacifics business and is the 

backbone of its global commercial value chain. Asia Pacifics smaller organisations can 

become more competitive through the strategic adoption of IT. 


CONNECTIONS, CONEXES, CONEXINES, CONNEXIONS 

Mobility and Small Business—Mats Victorin, the Regional Head of Ericsson in Asia 

Pacific, believes that mobile enterprise solutions and services can play a key role in levelling 

the playing field for smaller companies. This is a great opportunity for operators 

to address the valuable enterprise segment. 

Regional Development—Wireless BroadbandIn the view of Guy J Kelnhofer III, 

President and CEO of NextNet Wireless, Asias Internet driven integration into the global 

economy has fuelled job creation. Workers migrating to regions with essential services 

and jobs, bring crowding and overload the service in these regions. These jobs help 

the economy, but threaten traditional family structures and debilitate regions left 

behind. Wireless Broadband can inexpensively connect these regions and help reverse 

this decline. 

VoIP—Voice-over-Internet Protocol or VoIP is changing the worlds telecommunications 

observes Richard C. Grange, the President and CEO of New Global Telecom. In the 

USA, VoIP is regulation free and growing rapidly. Skype offers free computer-to-computer 

voice service and has millions of users. Operating companies routinely use IP 

services to carry long-distance traffic. We will all soon be using VoIP for low-cost, 


Wireless Internet—Giving a farmer a telephone can double his income, notes Thomas 

A Freeburg, Chief Operating Officer and Director of Strategy at MemoryLink. 

Connecting workers to the Internet provides a similar advantage, but two billion additional 

Internet connections will be needed if Asia Pacific is to reach North American 

penetration levels. 

Broadband Wireless—Majed Sifri, President and CEO of Redline Communications, 

talks about the great need for high performance voice, data and video communications 

for e-learning, e-government and surveillance. Broadband wireless can provide costeffective 

coverage for mobile and fixed wireless networks and bridge widely separated 

local area, WiFi, networks. 

Mobile Data—Mobile operators in developing countries find that SMS, multimedia and 

games play a major role familiarising users with mobile data, says Olivier Graff, the cofounder 

and co-CEO of Swapcom. Nevertheless, the complexities and costs of serving 

relatively unsophisticated users challenge operators. Device recognition software permits 

over-the-air troubleshooting and service updates, making usage simpler and cheaper. 

Charles Henshaw, the Executive Director and CEO of China Resources Peoples 

Telephone Company, stresses that China, the worlds largest cellular user, still has low 

market penetration, whilst Hong Kong has one of the highest. In both, voice still drives 

mobile usage, but data services are proliferating. 

Location Based Systems—New technology lets mobile operators accurately track 

users, even in crowded city centres and indoors. Chris Wade, CEO of Cambridge 

Positioning SystemsCPS, discusses how device manufacturers are now integrating 

standardised, high accuracy location technology into phones and other devices. Location 

technology is now used for everything from child and pet tracking, to locating laptops, 

cash boxes and other valuable assets. 

Billing—Yossi Shabat, Vice-President for the Asia-Pacific region at Comverse, claims 

that the use of real-time billing reduces subscriber bad debt risk, lowers costs and 

assures revenues in the Asia-Pacific region. Since real-time authorisation, monitoring, 

charging and account updating make prepaid systems possible, they make mobile services 

possible in the worlds developing regions. Real-time billing lets emerging markets 

enjoy the same services available in developed markets. 


Global Development 

ICTsDeveloping the human potential 

by Ambassador Dr Makarim Wibisono, Republic of Indonesia; Member of the UN-ICT Task Force; Former 

President of the United Nations Economic and Social Council 

Information and Communication Technologies (ICTs) boost economic, social and cultural 

development, facilitate efforts to combat poverty and promote equality and gender 

empowerment. Developing countries trying to implement ICTs have often failed due to 

the quality of the available human resources. This is a dilemma, since many countries 

implement ICTs precisely to improve their human resources capacity. To foster sustainable 

human development, a concerted effort is needed to integrate ICTs into educational 

programmes and to promote learning as a basic human right. 

Dr Makarim Wibisono is the Ambassador Extraordinary and Plenipotentiary, permanent 

Representative of the Republic of Indonesia to the United Nations and other International Organisations 

in Geneva. Dr Wibisono currently is a Member of the United Nations Information and Communication 

Technology (UN -ICT) Task Force, Chairman of the APEC Counter Terrorism Task Force and a former 

President of the Economic and Social Council (ECOSOC) for the United Nations in 2000. Before moving 

to Geneva, Dr Wibisono was Director-General for Asia Pacific and Africa and Director-General for 

Foreign Economic Relations, Department of Foreign Affairs, Indonesia. 

Dr Wibisono has a PhD and Master of Arts Degree in Political Economy from Ohio State University, a 

Master of Arts Degree from the Paul Nitze School of Advanced International Studies, Johns Hopkins 

University, Washington DC and a Doctorandus Degree in International Relations, Gajah Mada 

University, Jogyakarta, Indonesia 

It is undeniable that the development 

of Information and Communication 

Technologies (ICTs) has greatly 

affected the lives of many people. 

ICTs have brought people closer 

together than ever before by providing 

a more efficient medium to access 

and share information. In fact, it is 

almost a clich to say that the use of 

technology is one of the characteristics 

of globalisation. 

The advent of ICTs has profoundly 

transformed the way we see the 

world. For instance, to operate a 

broadcast news station today, we 

would only need a very small fraction 

of the hundreds of people that would 

have been needed in the past. 

This situation could be construed as 

having negative implications on 

employment opportunities. 

However, we must not overlook the 

positive aspects of ICTs in their ability 

to significantly improve efficiency. 

Even a very cursory study of ICTs 

reveals their complex nature and 

their close association with a myriad 

of other pertinent issues. 

Furthermore, a comparison between 

countries shows that there are enormous 

disparities in their technological 

advancement. 

These disparities exist not only 

between the developed and developing 

countries, but also among developing 

countries. Despite these differences, 

ICTs can be used to strengthen 

national development. 

ICTs have the power to boost economic, 

social and cultural development, 

facilitate efforts to combat 

poverty and promote equality and 

gender empowerment. 

In some countries, such as India, 

China and Peru, harnessing ICTs has 

proven to be an effective way of combating 

poverty. 

Nevertheless, the main focus of 

encouraging the use of ICTs for development 

is not the technologies themselves, 

but their impact on humanity. 

Some analysts point out that if the 

main focus were solely on ICTs, there 

would be a tendency for the human 

element to recede into the background. 

This is why we should concentrate 

on improving and developing 

human resources. Through education 

and increased knowledge, 

ICTs will offer tremendous potential 

for development. In this regard, the 

focus should be on human capacity 

and on creating equal opportunities 

for all. 

Having seen the benefits of ICTs in 

various countries, many developing 

countries have tried to implement 

ICTs in numerous areas, occasionally 

with success, but more often with 

failure. 

The recent World Summit on the 

Information Society (WSIS) which 

took place in Geneva, Switzerland in 

December 2003, served as a catalyst 

to encourage countries to implement 

and develop ICTs. 

As countries began to produce their 

national e-strategies to fulfil the targets 

of WSIS, questions were raised 

as to the problems that may potentially 

lead to failed ICT projects. 

Many attributed the low quality of 

6


human resources to 

the failures. 

This is a dilemma 

since many countries 

implement ICTs precisely 

to improve 

their human 

resources capacity. 

Thus, the central 

question becomes 

what is the minimum 

level of human 

resource capacity 

required by a country 

to enable it to 

leapfrog through the 

use of ICTs. 

During Indonesias 

presidency of the 

Economic and Social 

Council of the United 

Nations in 2000, we 

promoted and concentrated on the 

importance of ICTs for development. 

This critical issue was put on the 

agenda of the High-Level Segment of 

the ECOSOC, where ministers 

exchanged views and established a 

common stance on the importance of 

ICTs in the promotion of development 

and the eradication of poverty. 

The discussions could be described as 

a warm-up session before the meeting 

of Heads of State at the General 

Assembly, which resulted in the 

Millennium Declaration and the 

Millennium Development Goals 

(MDGs). 

The outcome of deliberations and 

consultations in the ECOSOC led to 

the Ministerial Declaration on 

Development and encouraged international 

co-operation in the twentyfirst 

century in the sphere of information 

and communication technology, 

especially within the context of the 

knowledge-based global economy. In 

the Declaration, the consensus is that 

ICTs will provide unique opportunities 

for economic growth and human 

development. 

Discussions in the ECOSOC and the 

UN Secretary Generals subsequent 

establishment of the UN-ICT Task 

Force show that the issue is critical. 

Unless there is sufficient preparation, 

as well as willingness and understanding 

on the part of technologically 

advanced countries, the ideal 

objective of creating an altogether 

better world cannot be accomplished. 

In this regard, the UN-ICT Task 

Force can, through its objectives, 

Figure 1: The main focus of encouraging the use of ICTs for development is not the technologies 

themselves, but their impact on humanity. 

contribute to human development. In 

discussing the current dilemma facing 

many developing countries, the 

main strategy should be to invest in 

education and training. 

Without question, governments 

should spearhead these efforts to 

ensure proper implementation, while 

engaging the private sectors. 

In this context, the participation of 

the private sector, particularly the 

ICT industries, will indeed remain 

crucial. 

Despite uneven access to ICTs, also 

known as the digital divide, ICT 

industries can nevertheless still 

bridge the gap for countries wanting 

to reap the benefits of modern technology. 

During the United Nations 

Millennium Summit in 2000, a set of 

quantifiable goals was agreed upon 

the Millennium Development Goals 

as a coherent framework from which 

we could focus our efforts. 

Under the Global Partnership 

Development Plan, the private sector 

has a role to play by ensuring that 

everyone benefits from advancements 

in technology, particularly 

ICTs. 

“Through education and 

increased knowledge, 

ICTs will offer tremendous 

potential for development.” 

The involvement of 

private sectors will, 

hopefully, allow 

greater access to 

training and not, on 

the contrary, block 

access to it. 

In effect, training 

should be demanddriven 

to ensure that 

user needs are reflected 

and taken into 

account and the 

objectives they wish 

to pursue are fulfilled. 

Moreover, it should 

be noted that education 

and training cannot 

be provided for 

every individual, or 

even country, simultaneously, 

on the 

same level and at the same pace. 

In this regard, it is also important to 

realise that human capacity can be 

developed by tailoring individual 

needs to the particularities of each 

case. 

With adequate training, individuals 

can easily meet their future technological 

needs. This is vital, given that 

technology continues to evolve, so 

people need to not only keep rapidly 

up with the latest technological 

advancements, but also learn to 

utilise them properly. 

The commitment and political will of 

governments, especially those of 

industrialised countries, as well as 

that of ICT companies should prevail, 

as they carry enormous power in 

assuring the dream of a prosperous 

and peaceful world. The most important 

steps will be the commencement 

and acceleration of the transfer of 

technology. 

At this point, it is worth noting that 

ICTs potential contribution to 

human development, which includes 

elimination of gender disparities, is 

currently compromised by the 

unevenness in the pace and spread of 

these technologies. 

Urgent action is needed to ensure 

that men and women participate 

equally in the ICT sectors. 

It is also critical that there should be 

programmes designed to encourage 

young people to access ICTs and that 

employment is created to attract 

them to stay, build and expand their 

capabilities and help develop their 

7


“Education will foster 

sustainable human 

development, reduce 

poverty and empower 

people to capitalise on 

their potential and 

skills. ” 

respective countrys economy. On the 

subject of education, it is important 

to promote learning as a basic human 

right, but due to socio-economic disparities 

between developed and 

developing countries, people in most 

developing countries do not even 

have access to education. 

In the context of ICT literacy, a concerted 

effort has to be made to integrate 

ICTs into educational programmes. 

This is needed to design 

and implement a well-defined infrastructure, 

which could also promote 

sustainable development. 

This issue was clearly stated in the 

Tokyo Declaration on the WSIS: The 

Asia-Pacific Perspective (2002) that 

ICTs can contribute to enhancing the 

quality of teaching and learning and 

sharing knowledge and information. 

It is hoped that through this process, 

the level of literacy and ICT skills will 

be greatly increased. 

Education will foster sustainable 

human development, reduce poverty 

and empower people to capitalise on 

their potential and skills. 

One other challenge that stands in 

the way of achieving these goals is, 

notably, the fact that developing 

countries have restricted access to 

technology owned by the developed 

countries. For example, advanced 

countries often use intellectual property 

rights to protect access to modern 

technology. 

Therefore, a more harmonious balance 

between protection and access 

“Investments in education 

and training, including 

basic and digital literacy, 

with consideration 

for culturally diverse 

digital content and 

material, are fundamental 

to the development 

of human capacity.” 

must be achieved. Likewise, we must 

underscore the importance of narrowing 

the gap between countries. 

This can best be accomplished by first 

allowing access to ICTs in developing 

countries and second making it 

affordable for them. 

Connectivity is another vital element 

that must be considered if the implementation 

of ICTs is to give hope to 

anyone wishing to partake of the benefits 

of globalisation. In fact, connectivity 

is very central to enabling the 

construction of a foundation whereby 

everyone can participate and have 

equal access to technology. 

In this context, an example of what 

has been done to develop human 

capacity is the Government of 

Indonesias Information Technology 

Kiosk Programme, which was created 

to empower people by providing 

information on technologies useful to 

them. 

It can therefore be concluded that 

access to ICT education and training 

is critically important for the acceleration 

and expansion of a knowledgebased 

global society. 

For this reason, investments in education 

and training, including basic 

and digital literacy, with consideration 

for culturally diverse digital content 

and material, are fundamental to 

the development of human capacity. 

Hence, in order to take advantage of 

the potential benefits of information 

technology, these measures should be 

some of the core strategies adopted 

by each government and by other 

interested stakeholders. 

Moreover, it is important, through 

education, to develop human 

resources capable of responding to 

the demands of the modern information 

age and, similarly, able to 

address the rising demand for ICT 

professionals in various sectors. 

Increasing human capacity through 

ICT education and training will help 

countries meet the Millennium 

Development Goals (MDGs) and thus 

encourage the establishment of a 

knowledge-based global society. 

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National Development 

Pervasive connectivityTowards building a knowledge 

society in Malaysia 

by The Honourable Dato’ Seri Dr Lim Keng Yaik, Minister of Energy, Water and Communications, Malaysia 

Malaysia needs to build its ICT infrastructure and increase the effective use of information 

technology. The government is guiding the countrys transition from a low technology, 

labour-intensive economy to a high value-added economy. It is extending access to 

all segments of society, from school children to senior citizens, urban and rural residents, 

to businessmen and housewives. To create a critical mass of users and applications, 

Malaysia has provided access in government departments, schools, universities, research 

institutions, hospitals and clinics, libraries and community centres. 

The Honourable Dato Seri Dr Lim Keng Yaik, is the Minister of Energy, Water and Communications of 

Malaysia. He is the President of the Peoples Movement Party (Gerakan), within the National Front governing 

party of Malaysia. Honourable Dato Seri Dr Lim Keng Yaik was appointed a Senator in 1972 

and a Minister with Special Functions in the Malaysian Cabinet. Dr Lim Keng Yaik later served in the 

State Government of Perak, but returned to the Federal Cabinet as Minister of Primary Industries. Dr 

Lim Keng Yaik has participated in international conferences including the GATT Negotiations, Rio Earth 

Summit, Cairns Group Meeting and many others. Honourable Dato Dr Lim Keng Yaik served as the 

Chairman of the Associations of Tin Producing Countries and Vice-President of the World WUSHU 

Federation, among others. Dr Lim Keng Yaik led the Malaysian delegation in the negotiations for the 

Forest Principles at the Rio Earth Summit and has actively participated in international Forests and 

Timber conferences. 

Honourable Dato Dr Lim Keng Yaik graduated with a degree in Medicine and Surgery from Queens 

University, Belfast, Ireland and was awarded an Honorary Doctorate of Law by Queens University of 

Belfast, Ireland. 

Harnessing ICT for 

Malaysias future 

In an era that fosters a knowledgebased 

economy, the role of information 

and communications technology 

(ICT) is increasingly pervasive. This is 

particularly so in the Malaysian context 

with the government determined 

to hasten the development of a vibrant 

and dynamic information and knowledge-based 

economy and society 

through the use of ICT. 

The Multimedia Super Corridor 

(MSC) launched in 1996, was conceived 

to provide the impetus for the 

Malaysian information economy and 

remains a driving force towards pervasive 

connectivity today. 

Since its launch, the MSC has generated 

21, 200 knowledge worker jobs and 

sales of RM5.8 billion (US$1.5 billion) 

in 2003 or 1.5 per cent contribution to 

GDP and 0.2 per cent of the labour 

force. As a starter, the MSC has done 

well, considering that it was set up to 

be a test bed for new applications and 

to attract foreign investment in high 

technology. However, more remains 

to be done. The second phase rollout 

of the MSC will feature MSC status 

incubation in the Bayan Lepas Free 

Industrial Zone in Pulau Pinang and 

the Kulim High-Technology Park in 

Kedah. This phase aims to add 

100,000 high value-added jobs to the 

MSC. 

MSC development should not stop 

here. Industrial incubation has to 

accelerate nationwide to spur take-up 

of ICT by all Malaysians and businesses 

to reap the benefits of productivity 

gains, competitive business advantage, 

opportunity for innovation and 

growth towards a knowledge economy. 

Collaborative efforts to 

leapfrog national development 

The transition from a low technology 

and labour-intensive economy to a 

high value-added economy would produce 

great economic rewards. 

Nevertheless, achieving a knowledge 

economy requires national effort, in 

which, all stakeholders—the government 

and private sector, consumers 

and businesses—need to address the 

pressing issues of pervasive connectivity. 

The government and private sector 

need to provide consumers and businesses 

alike with the necessary communications 

services at acceptable 

quality and price. The public and consumers 

need to embrace ICT, use it to 

their advantage and make it part of the 

very fabric of our society. 

Spearheading connectivity 

The challenge of getting everyone in 

Malaysia connected today is to provide 

users with affordable access. The 

ability of broadband to narrow the 

digital divide need not be debated, 

given the experience of users throughout 

the world. Widespread use of 

broadband for high speed Internet is 

11


crucial if we are to maintain our competitive 

edge in an Internet savvy 

global market. 

Malaysias broadband penetration 

rate today is less than one per cent; 

this is a stumbling block to the development 

of future technologies and an 

information-based society, ready to 

compete in the global economy. 

Affordable broadband is essential to 

narrowing the digital divide and 

enriching the lives of citizens with 

applications such as e-health, e-transactions, 

e-education and e-recreation. 

The development of Malaysias 

telecommunications infrastructure 

calls for a high- priority national project 

to encourage further investment in 

broadband and facilitate Internet 

deployment. Accordingly, the government 

formulated its National 

Broadband Plan to stimulate the rollout 

of nationwide access to broadband 

communications services by fostering 

a supportive relationship with the private 

sector. 

Technology neutrality 

The government favours technological 

flexibility and inter-operability to create 

an environment that thrives on 

pro-competition policies and prudent 

infrastructure investment. This will 

ensure that market forces will prevail 

and spur the investment and innovation 

needed to meet the needs of consumers 

and stakeholders. 

Technology neutrality helps maximise 

the speed of rollout, and faster, cheaper, 

access. 

As outlined in the Communications 

and Multimedia Act of 1998, technological 

neutrality permits operators to 

freely choose and mix technologies to 

serve user needs. This helps to minimise 

cost and maximise operating 

efficiency, narrowing the market efficiency 

gap. 

Nevertheless, a degree of standardisation 

is needed to ensure equipment 

inter-operability. 

Quality of Service (QoS) 

Instituting a minimum quality of service 

standard is essential to ensure that 

services meet user requirements and 

provide value for money. Consumer 

awareness and discernment needs to 

be raised not only in regards to quality 

of service, but also to high-speed 

Internet access. 

“The government and 

private sector need to 

provide consumers and 

businesses alike with the 

necessary communications 

services at acceptable 

quality and price.” 

Last mile bottlenecks 

Deployment efforts are thwarted by 

last mile connection bottlenecks. 

Government intervention, by instituting 

an interconnection and peering 

regime and creating a transparent 

legal and regulatory framework to 

ensure continuous operating efficiency, 

can remove roadblocks to investment 

in broadband deployment. 

Demand and supply aggregation 

A concerted effort, by both the government 

and private sector, is needed to 

stimulate aggregate demand and supply 

so that broadband connections can 

reach critical mass. 

Mass-market applications, as with 

online games in Korea, hit the threshold 

of critical mass and accordingly 

stimulate demand for fast, high capacity 

broadband. Thus, to catalyse the 

aggregation of supply and demand, 

there needs to be wide-scale promotion 

of the usage of applications for 

the public and businesses. Towards 

this end, the National Broadband Plan 

serves to start aggregating demand 

amongst various communities, the 

private sector and home users. 

Communities include government 

departments, schools, universities, 

research institutions, hospitals and 

clinics, libraries and community 

centres. 

The e-government network will connect 

all e-government applications to 

“TheMalaysian 

Government has established 

clear policies 

regarding the digital 

divide, based on the 

principles of availability, 

accessibility and affordability.” 

about 84,000 terminals in 900 

departments at Federal, State and 

District levels. Schoolnet will provide 

all 10,000 schools in the country with 

broadband connections. The Smart 

School curriculum will be available on 

the web at these schools. With 

Schoolnet, the distinction between 

Smart Schools, urban schools and 

rural schools should be greatly 

reduced. Malaysia Research and 

Education Network (MYREN) is a network 

of research institutions and 

institutions of higher learning. 

The network will be operational at the 

end of this year with 12 major universities 

of Malaysia on-board. Upon stabilisation, 

other research entities 

would be taken on-board. MYREN 

would be connected to external 

resources and partner networks in 

Europe, East Asia and other countries 

to exploit the fullest benefits for our 

R&D entities. 

Other broadband networks such as the 

telehealth network, telecentres network, 

the library network and private 

networks will join the national broadband 

network. The government aims 

to create a critical mass; a penetration 

rate of five per cent by the year 2006 

and ten per cent by 2008, to attract 

industry players to rollout last mile 

infrastructure, including to domestic 

users. 

In the industrial sector, incentives will 

be given to small and medium scale 

enterprises (SMEs) to make greater 

usage of ICT, to produce goods with 

higher added value and to venture into 

new areas using cutting edge 

technologies. 

The thrust of this strategy is to spur 

domestic investment in SMEs. SMEs 

are encouraged to invest in ICT and 

upgrade their technology through tax 

rebates/relief, grants and by facilitating 

R&D and R&D commercialisation. 

The government has endeavoured to 

improve access to financing and seed 

capital as well as increased allocation 

of government-administered soft 

loans for these purposes. 

Narrowing the digital divide 

The digital divide is a socio-economic 

problem caused by unequal access to 

ICT for obtaining and leveraging 

information/knowledge within a society. 

Lack of physical access, lack of IT 

literacy, lack of suitable content, or the 

high cost of access can cause this. The 

Malaysian Government has established 

clear policies regarding the 

12


digital divide, based on the principles 

of availability, accessibility and 

affordability. 

Those living in the rural areas are far 

less likely to own computers, use the 

Internet or take advantage of new 

technologies than those who reside in 

urban areas. As a result, the outreach 

of the digital age is proceeding 

unevenly with the gap widening with 

time. This digital exclusion can have 

serious economic consequences for 

those who live in rural areas. The government 

is undertaking a variety of 

initiatives to bridge the digital divide 

between the urban and rural areas, 

among them are Universal Service 

Programme (USP), the One Home 

One PC Project and the Rural Internet 

Programme. 

Universal Service Programme (USP) 

was introduced with funds from both 

the government and the industry to 

help increase coverage of physical 

access. By providing network services, 

USP will give people individual and 

collective access to information and to 

the tools for knowledge building, to 

develop their potential and that of the 

nation. 

Equitable access and balanced development 

of urban and rural areas will 

help bridge the gap between the information 

rich and information poor. 

The government and local telecommunications 

service providers jointly 

fund USP. 

The One Home One PC Project was 

initiated in March 2004 by the government 

in collaboration with 

Association of the Computer and 

Multimedia Industry of Malaysia 

(PIKOM). It is designed to increase 

PC and Internet penetration as well as 

digital literacy amongst the Malaysian 

society. 

The Rural Internet Programme, in 

partnership with the postal organisation, 

Pos Malaysia and the local community, 

aims at bringing technology 

and ICT closer to rural communities. 

To date, 42 Centres located at Post 

Offices have been established nationwide. 

The Programme focuses on youth, 

women and senior citizens. The programme 

was conceived to provide a 

one-stop centre for e-government 

(G2C and G2B), e-learning, knowledge 

exchange, on-line examination 

centre, e-community, e-certification 

centre and centre for application 

development with shared resources. 

Profit orientation versus 

social obligation 

There needs to be a balance between a 

service providers priorities of producing 

profit and its responsibilities 

towards society. To this end, service 

provider activities need to be aligned 

to national development objectives. 

The communications and multimedia 

sector enables other industries and 

therefore contributes directly and 

indirectly to Malaysias gross national 

product. Hence, where market forces 

and competition govern private sector 

participation, the government can act 

to mandate the rollout of services to 

underserved populations where 

necessary. 

Content development 

“Pervasive connectivity 

is needed to bring the 

Internet to everyone so 

that knowledge and 

information prevail in 

every facet of our daily 

lives.” 

The promotion of creative content 

development is in line with the countrys 

vision to be a global ICT and multimedia 

hub. The fast growth of networked 

communications will intensify 

the demand and growth of contentbased 

services and vice versa. The 

MSC flagship applications provide a 

platform for the development of multimedia 

capability, spearheading 

growth in the content industries in 

areas such as e-Learning, e- 

Community, e-Public services, e- 

Economy and e-Sovereignty. 

Whilst contents for underserved communities 

such as minority ethnic 

groups as well as for the disabled are 

still lacking due to high development 

costs, various ministries and agencies 

in the country are collaborating in 

pursuing this agenda. 

Development of human capital 

and productive labour 

force 

Government policies need be constantly 

tuned to the development of 

knowledge workers and highly skilled 

workers to drive a knowledge economy. 

The government has introduced 

incentives and measures to advance 

ICT skills, for example 3D animation 

and various skills development programmes 

and vocational and technical 

training institutions for youths. The 

government provides tax rebates to 

spur PC ownership and encourage 

individual ICT usage. 

Malaysia has low wages, and relatively 

high literacy rates and language skills 

advantages when vying to provide 

online information processing for 

multinational corporations. However, 

we risk losing this advantage if our 

ICT and communications industries 

are not up to speed. 

Teleworking is an important use of 

ICT; it provides a way to capitalise 

untapped ‘human resources. The 

externalisation and delocalisation of 

employment and work, made possible 

by electronic connectedness, permits 

formerly isolated segments of the society 

to join the workforce. Teleworking 

lets homemakers raising children, 

many well educated, to work from 

home. Malaysian women, reportedly, 

comprise 36 per cent of the countrys 

Internet users. Similarly, disabled 

individuals can now work from home 

or create home-based businesses. 

Conclusion 

ICT enables the equitable distribution 

and dissemination of knowledge and 

information. Pervasive connectivity is 

needed to bring the Internet to everyone 

so that knowledge and information 

prevail in every facet of our daily 

lives. To achieve this, government, 

private sector and citizens alike need 

to act individually and collectively to 

make a Malaysian information society 

a reality. 

Tremendous opportunities lie ahead, 

but high-speed connectivity will be 

needed to reap the benefits of the 

advanced technologies and applications 

required to compete regionally 

and globally. 

The urgency of high-speed Internet 

deployment cannot be emphasised 

sufficiently. Communications service 

providers must meet their social obligations 

and help fulfil the national 

goal of building a connected information 

society and a knowledge-based 

economy to face the challenges of this 

era. 

13


Digital television broadcasting in Australia 

by Lyn Maddock, Acting Chair, Australian Broadcasting Authority 

Digital television broadcasting in Australia, which started in 2001, is now available in 

some form to more than 90 per cent of the population. The Australian Broadcasting 

Authority (ABA) has guided this process along, taking care to protect the rights of consumers 

and has endeavoured to create a competitive market place. The ABA is now 

studying uses for the radio spectrum that the move to digital broadcasting will free up by 

fostering the development of new broadcasting and data services. 

Lyn Maddock is the Acting Chair of the Australian Broadcasting Authority. Originally appointed in 

December 2000 for a three-year term as a member of the ABA, Ms Maddock has been reappointed for a 

further four years commencing 13 December 2003. 

Ms Maddock has extensive management and public policy experience across a range of areas, having 

held senior positions with the Productivity Commission, the National Occupational Health and Safety 

Commission, the Department of Prime Minister and Cabinet and Westpac Banking Corporation. Ms 

Maddocks policy experience has been concentrated in the areas of transport, communication and 

resources, regulatory affairs and public sector management. 

The first of January 2001 marked the 

start of the transition from analogue 

to digital television broadcasting in 

Australia and signalled the biggest 

revolution since the change from 

black and white to colour television 

in the 1970s. 

Digital technology brings many 

advantages; analogue television has 

reached the ceiling of its potential 

while digital represents the floor of 

new possibilities; better quality pictures 

and sound, multi-channelling, 

programme enhancements and 

interactivity. 

If the sales of digital television set top 

receivers and integrated digital television 

sets are any guide, there is no 

doubt that digital television is taking 

off in Australia. From a standing 

start in January 2001, 75 per cent of 

the population now has access to all 

five free-to-air television networks in 

digital and more than 90 per cent has 

access to at least one digital service. 

A datacasting trial is currently being 

conducted in Sydney and the first 

digital subscription service has started 

this year, offering extra channels, 

programming, interactive and 

enhanced services, better picture and 

better sound. 

Introduction of digital TV 

For two years before digital television 

was switched on, the Australian 

Broadcasting Authority, or ABA, laid 

the groundwork by planning the 

channels for the digital services to 

use, broadcasters invested in the 

infrastructure for its delivery while 

industry, through Standards 

Australia, developed the standards 

and specifications for transmission 

and reception. 

Broadcasters in the mainland capital 

cities of Sydney, Melbourne, 

Brisbane, Adelaide and Perth were 

required to commence digital services 

on at least one of their transmitter 

sites by 1 January 2001, as determined 

in the Broadcasting Services 

Act 1992. 

In regional markets, which cover the 

next most significant population centres, 

the ABA determined the commencement 

dates. 

The ABA had a degree of flexibility 

about the dates it could determine; 

however, the Broadcasting Services 

Act required that all regional broadcasters 

start by 1 January 2004. To 

meet their obligations, regional 

broadcasters commenced at least one 

transmitter within the market, 

simulcasting their services in both 

analogue and digital modes. 

Broadcasters must simulcast in their 

markets for eight years, or longer if 

prescribed, from the date of the first 

digital service in the market. Digital 

broadcasts must also match analogue 

broadcasts. 

Planning for digital services 

Both the analogue and digital transmission 

networks use channels in the 

VHF and UHF parts of the broadcasting 

service bands (those parts of 

the radio frequency spectrum 

assigned to the ABA for planning of 

broadcasting services) and the two 

transmission networks operate 

simultaneously. 

The ABA therefore had to find more 

than twice as many channels for television 

broadcasting. Fortunately, 

digital technology came to the aid of 

the planners, so they could use the 

channels for digital that could not be 

used for additional analogue television 

services and satisfy the 

increased demand for channels. 

14


Each area was planned with a least 

seven channels, to enable conversion 

of the five existing networks plus 

capacity for two future services. 

Preservation of viewers access to their 

existing free-to-air services in the 

simulcast area was of paramount concern 

for the ABA. The ABA was also 

concerned about potential interference 

to the reception of existing analogue 

services. So, when the switch-on 

of new digital transmissions results in 

any interference, the ABA expects the 

television industry to deal with the 

problem, in part through the mechanisms 

of the ABAs Interference 

Management Scheme. 

In general, the ABA has been pleased 

with the industrys response to managing 

the impact on viewers of digital 

transmissions. 

Following the introduction of the first 

services at the main transmitter in the 

metropolitan markets, broadcasters 

have expended considerable effort to 

increase the coverage of their networks 

in the rest of their metropolitan 

markets and to introducing digital 

transmission in regional areas. 

Current situation 

The challenge now facing Australia is 

to encourage the take-up of consumer 

equipment, such as digital set top 

boxes and integrated digital television 

sets. 

Although the switch-off of analogue 

transmission can, by law, occur as 

early as eight years after digital services 

began in each area, the government, 

through a series of statutory reviews, 

is only now considering the preconditions 

for turning off analogue services. 

Digital television set top receivers and 

integrated digital television sets sales 

had reached 530,000 units by the end 

of September 2004, and averaged 

40,000 in each of the preceding three 

months, compared to 10,000 units for 

the September quarter 2003. On the 

basis of these figures, more than 

700,000 homes (or eight per cent of 

all households) are expected to be 

(free-to-air) digital by the end of 

2004. 

Digital subscription television numbers 

are also growing: passing the 

900,000 mark by the end of 2004, if 

not sooner. 

Digital Broadcasting Australia 

believes that sales will continue to be 

“The challenge now facing 

Australia is to 

encourage the take-up 

of consumer equipment, 

such as digital set top 

boxes and integrated 

digital television sets.” 

strong as the number of suppliers 

grows, the range and type of receivers 

increases and consumers become 

more aware of the benefits of free-toair 

digital television. 

The number of transmitters continues 

to grow, enabling the continued roll 

out of digital services. More than 350 

transmitters currently provide digital 

services, reaching more than 90 per 

cent of the population and at least 

another 50 are expected to be on air by 

the end of 2004. 

The commercial broadcasters have 

confirmed that they are committed to 

a common platform for digital terrestrial 

services based on open standards, 

with a minimum standard for set top 

boxes. 

They also agree that interactive set top 

boxes for the Australian market 

should be able to receive all interactive 

applications from all commercial 

broadcasters and that boxes should be 

forward compatible, so that applications 

for first generation interactive 

boxes will work with later versions. 

What can Australian viewers 

expect from this digital technology 

HDTV 

In Australia, it was decided from the 

outset that high definition television, 

HDTV, would be an integral part of 

the suite of facilities offered by digital 

services. 

Accordingly, the ABA planned a seven 

MHz television channel for each 

national and commercial service in 

each transmission area. 

Broadcasters must provide services in 

standard definition mode and, as well, 

a legislated minimum of 1040 hours 

per calendar year of high definition 

programming. 

To protect consumers from being 

forced to purchase a high definition 

digital receiver, any programme transmitted 

in high definition must also be 

transmitted in standard definition. 

There are signs the decision to adopt 

HDTV may be vindicated; large display 

units that benefit from the betterquality 

digital pictures have proliferated. 

As the availability of flat display 

panels increases, and prices continue 

to fall, more and more Australian consumers 

are switching to widescreen 

television. 

There are now an estimated 640,000 

widescreens in Australian homes, of 

which 30 per cent are relatively expensive 

plasma or LCD screens. The average 

monthly sales of widescreen televisions 

to retailers for third quarter 

2004 were 46,000 units. 

Uptake of widescreen displays is 

believed to be a key driver in viewer 

decisions to upgrade to digital reception. 

Meanwhile, there are indications that 

demand for true HDTV displays may 

follow close behind. DVDs will soon 

be available in high definition and television 

games will be available in HD, 

starting Christmas 2004. These, and 

improved compression technologies — 

such as MPEG 4 — Part 10 and 

Windows Media 9 Series — are all driving 

the demand for better resolution, 

larger monitors and, ultimately, high 

definition displays. 

Data broadcasting 

When planning for the conversion 

from analogue to digital television 

transmission, the ABA planned at 

Figure 1: Both the analogue and digital transmission 

networks use channels in the VHF and UHF 

parts of the broadcasting service bands. 

15

CommunicAsia 2005 - CommunicAsia 2005 - CommunicAsia 2005 - CommunicAsia 2005 

CommunicAsia 2005 

European companies behind CommunicAsia’s growth 

European participation at CommunicAsia has grown by 30 per cent over the past 

decade–a reflection that strong European support remains a critical factor behind the 

success of Asia’s largest communications and IT trade exhibition, the 2005 edition of 

which will take place June 14-17, 2005. 

During the last CommunicAsia, that took place 

from June 15-18, 2004 at the Singapore Expo, over 

1,300 companies and 45,000 business professionals 

gathered to network, exchange ideas and negotiate 

business deals. 

More than 170 European companies were present at 

the event, which also hosted national pavilions from 

Belgium, Finland, France, Germany, Israel, Ireland, 

Sweden and the United Kingdom. 

"In the past decade, we have seen consistent support 

from United Kingdom, German and Irish companies. 

In recent years, we are seeing more participation from 

Belgium, France, Sweden, Italy and several other up 

and coming Eastern European nations," said Mr Alun 

Jones, director of London-based Overseas Exhibition 

Services (OES). OES is the worldwide associate of 

organiser Singapore Exhibition Services. 

The North American contingent at CommunicAsia2004 

brought 120 companiessignaling a show of commitment 

from United States and Canadian companies 

to reach Asia through CommunicAsia. 

"Both European and North American companies see 

the event as an ideal platform to tap into the fast 

growing and vibrant Asian market place," added Mr 

Jones. 

Several established European industry leaders such as 

Ericsson, Siemens, Racal Antennas, IPM International 

and Urmet Spa have been with CommunicAsia for the 

past eight shows. 

"CommunicAsia has been one of the most important 

exhibitions in telecommunication and network engineering 

in Asia for the last 10 years of Siemens 

Communications. 

As a consequence thereof we are able to address all 

our customers and potential buyers of South East Asia 

and the Pacific area and are therefore able to introduce 

our various portfolio of innovative products, solutions 

and services," said Mr Christian Trieflinger, 

Project Manager for Fairs and Exhibitions, at Siemens 

AG. 

CommunicAsia has grown to become Asias premier 

event serving the communications and IT industry 

through the last 15 editions. Since it began in 1979 

with 220 companies, the event has grown more than 

six fold. 

CommunicAsia has evolved to remain relevant to 

industry needs while providing a thought leadership 

platform and gateway into Asias info-communications 

technology industry. The event features sub-shows in 

networks, satellite communications and mobile communications. 

Enterprise IT, an event showcasing enterprise 

technologies, grew out of CommunicAsia to 

meet the growing business demands for technology 

infrastructure. 

CommunicAsia 2004, Enterprise IT 2004 and 

BroadcastAsia 2004 are key components of the fiveday 

Infocomm Media Business Exchange (imbX), 

which attracts some 30,000 visitors to Singapore. 

About the Infocomm Media Business Exchange 

The Infocomm Media Business Exchange (imbX), as 

Asias largest infocomm and media business platform, 

brings together business leaders, companies and 

industry professionals to showcase their latest innovations, 

network, exchange ideas and tap new markets. 

imbX is jointly organised by Singapore Exhibition 

Services (SES) and the Singapore infocomm 

Technology Federation (SiTF), and hosted by the 

Infocomm Development Authority of Singapore (IDA) 

and the Media Development Authority of Singapore 

(MDA). To be held from 14 to 17 June, imbX incorporates 

CommunicAsia 2004, BroadcastAsia 2004, 

Enterprise IT 2004, iX2004 Conference and a host of 

other activities. 

For further information on imbX, please visit 

www.visit-imbx.com 

Promotional Feature

CommunicAsia 2005 - CommunicAsia 2005 - CommunicAsia 2005 - CommunicAsia 2005 

CommunicAsia, Asias most established and comprehensive 

information and communications technology 

(ICT) tradeshow, showcases the latest products and 

services in the industry. 

Go to www.CommunicAsia.com 

BroadcastAsia serves as a launch pad for the latest hitech 

production and post-production technology 

from the electronic media industry. 

Go to www.Broadcast-Asia.com 

EnterpriseIT targets enterprises that deliver IT solutions 

in system integration, e-learning, data warehousing, 

storage systems, outsourcing services, business 

intelligence, enterprise resource planning and 

others. 

Visit www.goto-EnterpriseIT.com 

iX Conference is Asias definitive ICT conference. It 

brings together business leaders, IT visionaries and 

senior executives to discuss and share their experiences 

on the role and impact of ICT in shaping and 

reinventing the rules of business. 

Visit www.ix2004.com 

Figure 2: Countries including the US 

(top) and UK (bottom) were well represented. 

Figure 1: Just two of the many pavilions at 

CommunicAsia: Sweden (top) and Thailand 

(bottom). 

Figure 3: The busy Panasonic stand. 

Figure 4: Stands at CommunicAsia include (left to right): LG, Samsumg, 

Registration and Ericsson. 

Promotional Feature


least two additional television channels 

in each area to be used for data 

broadcasting, called datacasting. The 

Broadcasting Services Act defines datacasting 

as a special category of service. 

Datacasting content is subject to 

restrictions designed to encourage 

datacasting licensees to provide a 

range of innovative services, different 

than traditional broadcasting services. 

These include information-only programmes, 

educational programmes, 

interactive computer games, text or 

still images, parliamentary broadcasts, 

electronic mail and Internet content. 

A datacasting trial is underway in 

Sydney; it aims to help the industry 

develop technical and business models 

for potential new and innovative 

services. 

Mobile TV 

Over and above the more obvious benefits 

for the viewer — interactivity, better 

picture and sound, — the introduction 

of digital television has the potential 

to free up spectrum currently 

required for analogue television coverage. 

Analogue switch-off will provide a 

spectrum dividend: in other words, it 

will free up spectrum for alternative 

uses, both broadcasting and nonbroadcasting 

of the broadcast bands. 

Australia is well positioned to take 

advantage of technological developments 

even before the spectrum dividend 

is realised, as the two digital television 

channels originally planned 

for datacasting can be used for other 

purposes as well. 

The spectrum made available when 

the analogue system closes will also 

become available for new services and 

features for the consumer, should 

providers be willing and able. 

The ABA will continue to engage in the 

international planning decision making 

processes, such as the 

International Telecommunications 

Union forum, to ensure it stays well 

informed about international 

approaches to possible uses for spectrum 

in these bands. 

Many believe that mobile television 

will be the latest addition to the five 

waves of media: printing, radio, television, 

recording, Internet and (now) 

mobile television. It has also been 

tagged the fourth screen, following 

“Datacasting content is 

subject to restrictions 

designed to encourage 

datacasting licensees to 

provide a range of 

innovative services, different 

than traditional 

broadcasting services. ” 

after cinema, television and computers. 

Over the years there has been a trend 

for fixed devices to evolve into mobile 

devices. For example, families used to 

gather around radio in the evenings to 

be informed and entertained, until the 

transistor made it possible for radio to 

become truly a mobile medium and 

move with the listener. 

The same route has been followed by 

the telephone, strictly a fixed device 

until relatively recently. The desktop 

computer was chained to the office 

desk and later to the home office desk, 

until laptops made the computer a 

portable, increasingly mobile device. 

Television is apparently moving along 

the same path; in the future we might 

never need be without it. 

Government reviews 

The Department of Communications, 

Information Technology and the Arts 

is reviewing several aspects of digital 

television. These reviews will provide 

information for the Australian 

Government to consider before deciding 

when to switch-off the analogue 

system. 

The reviews will consider: 

ˆ Whether the requirement that programmes 

must be broadcast in both 

analogue and digital modes during the 

simulcast period should be amended 

or repealed—thereby allowing, for 

example, the provision of multi-channelling, 

or additional analogue and 

digital programming; 

ˆ Whether the prohibition on provision 

of subscription television services 

by broadcasters and other kinds of 

broadcasting services currently not 

permitted, should be amended or 

repealed; 

ˆ Whether all parts of the broadcasting 

services bands available for allocation 

for broadcasting or datacasting 

services have been identified and efficiently 

structured; 

ˆ Whether provisions of the 

Broadcasting Services Act relating to 

additional commercial television 

broadcasting licences in underserved 

areas — including the exemptions from 

HDTV requirements for multi-channelled 

services — should be amended 

or repealed; 

ˆ Whether the HDTV quotas should 

be amended; 

ˆ The competitive and regulatory 

arrangements that should apply to 

datacasting transmission licensees, on 

or after 1 January 2007, when providing 

licensed broadcasting services, as 

well as the revenues to be raised therefrom 

by the Australian Government; 

ˆ The conditions that should apply to 

commercial television broadcasting 

licences on or after 1 January 2007 for 

the provision of commercial television 

broadcasting services; 

ˆ The viability of creating an indigenous 

television broadcasting service 

and the regulatory arrangements that 

should apply to the digital transmission 

of such a service using spectrum 

in the broadcasting services bands; 

ˆ The regulatory arrangements for 

HDTV transmissions in remote areas 

that should apply to commercial and 

national broadcasters; 

ˆ The duration of the simulcast period. 

Conclusion 

The roll out of free-to-air digital television 

services in Australia has progressed 

remarkably well. Many difficult 

issues such as interference management 

have been effectively dealt 

with. 

The ABA continues to work with the 

Government, broadcasters and the 

industry in general, to ensure a 

smooth transition to the era of digital 

television. 

The benefits of digital television 

broadcasting in Australia include a 

range of new and different services 

that broadcasters can offer to viewers. 

Viewers are responding in increasingly 

larger numbers; they can see the 

benefits — to them, the future of digital 

broadcasting is clear. 

18


Implementing policy to bridge Koreas digital divide 

by Dr Yeon-Gi Son, President/CEO, Korea Agency for Digital Opportunity & Promotion 

Korea is an information society leader; it has the highest broadband Internet penetration 

in the world. The Korean Government has developed a stream of policies over the years 

aimed at reducing the digital divide and promoting the digital inclusion of Korean society 

as a whole—young and old, handicapped, city dwellers or rural inhabitants. The government 

provides all these with subsidised or free equipment and Internet access. Now 

its focus is shifting towards promoting the more effective use of IT. 

Dr Yeon-Gi Son is the President and CEO of the Korean Agency for Digital Opportunity and Promotion 

(KADO), Korea. KADO is a public organisation charged with bridging the digital divide, ensuring free 

access to information and communications throughout Korean society. Before joining KADO, Dr Son 

was President and CEO of the Information Culture Centre of Korea. At present, Dr Son is a member of 

the Korean National Commission for UNESCO and of the Advisory Committee for Policy of the Ministry 

of Government Administration and Home Affairs. Dr Son was awarded the Presidential Award in 2000 

and the order of Cambodian National Merit in 2003. Dr Son earned a PhD and Masters in Sociology 

from Texas A&M University, a Bachelor of Science from Utah State University and a Bachelor of Arts 

from Korea University, Seoul. 

Society and the digital divide 

Korea holds track records to prove its 

status as an information society. In 

2003, Koreas IT industry generated 

15.6 per cent of the countrys GDP, 

while IT exports accounted for 30 per 

cent of total exports. Korea is the 

world’s most wired society. It has the 

highest broadband penetration rate in 

the world. 

As of June 2004, there were 11.61 million 

subscribers to broadband 

Internet access. Internet adoption 

rates surged from 1.9 million in 1997 

to 29 million in end 2003—65 per cent 

of the population. Korea established a 

one-stop e-government online service 

centre at www.egov.go.kr, which provides 

guides for 4,000 categories of 

civil services and 393 categories of 

civil requests. 

E-government services handle such 

matters as resident certificates, real 

estate, automobiles, tax and corporate 

document matters — or about 70 per 

cent of all of the governments civil 

services. Korean e-commerce surged 

from 50 billion won in 1998 to 177 trillion 

won in 2002 [symbol — KRW; 

US$1 equals approximately1065 

KRW]; this corresponds to 12 per cent 

of the countrys total transactions. 

Despite the progress, however, Korea 

is challenged by its digital divide. The 

divide threatens to reduce the return 

on the nation’s investment in information 

and to undermine its social unity 

as well, becoming a burden on society. 

In the information society, ’knowledge’ 

and ’information’ are resources 

that generate wealth and are instrumental 

in every social activity. 

Accordingly, the governments policy 

emphasises efforts to bridge the 

divide. 

Almost 35 per cent of Koreas population, 

about 13 million people, remains 

out of the information loop. A significant 

part of this group consists of the 

handicapped, senior citizens, residents 

living in agrarian and fishery villages 

and low-income people. 

Meanwhile, Korea will soon have 30 

million of Internet users and is in the 

process of moving from the ’Internet 

1-Generation’ to the ’Internet 2- 

Generation’. In the Internet 1- 

Generation, the major issue was the 

’Internet literacy’, so the policy focus 

was upon educating people to access 

the Internet. In the Internet 2- 

Generation, its key issue is usually 

how people can make the most of the 

Internet in their daily lives. 

Accordingly, an important national 

task for the government is to reduce 

the gap, among the 65 per cent of 

Koreas population that uses the 

Internet, between those who use the 

computer and the Internet productively 

and those who simply use it as 

consumers. 

Concerning the digital divide 

As the general level of access to and 

use of information increases, there is a 

trend towards further widening the 

digital divide. The profession or gen- 

19


der triggered digital divide has 

been narrowed to a certain 

extent. However, the age, education 

or income-triggered digital 

divide remains prevalent and 

might be getting even larger. 

Figure 1 shows that the digital 

divide has increased by 43.2 per 

cent using the age benchmark, 

43.1 per cent measured by education 

and 25.1 per cent by 

income group, between 1999 and 

2003. 

Lately, such factors as age and 

educational level tend to play a 

larger role in affecting the digital 

divide. Figure 2 shows that 94.3 

per cent of the population in 

their twenties uses the Internet versus 

only 14 per cent of people over 50. By 

education, 87.7 per cent of those who 

graduated from college or higher are 

the Internet users versus only 8 per 

cent of those who graduated from junior 

middle school. 

The digital divide that separates handicapped 

people from non-handicapped 

tends to be larger in Korea 

than in the West. In Korea, 27.6 per 

cent of the handicapped are the 

Internet users, compared with 39.1 

per cent in the US, or 36 per cent in 

the UK. 

The digital divide between the handicapped 

people and the non-handicapped 

people was estimated at 14.8 

per cent in the US and 21 per cent in 

the UK, compared with 37.9 per cent 

in Korea. 

Bridging the digital 

divide—policy implementation 

Government efforts to bridge 

digital divide 

Molnar 

2002 

Selwyn 

2002 

Van Dijk et al 

2003 

Kim Mun-jo 

2004 

IT Accessibility 

Gap in IT accessibility 

Gap in information access 

Mental, material access 

Difference of opportunity 

Figure 1 Digital Divide Trend 1999 to 2000 based upon Internet adoption rate. 

The government drive to bridge the 

digital drive has been under way since 

1988, when the government kicked off 

its computer classes for villages project. 

In 1992, the government inaugurated 

a regional information project 

aimed at narrowing the digital divide. 

In the late 1990s, the government gave 

these efforts a higher priority. 

In 1999, Cyber Korea 21 established 

the second-phase basic digital inclusion 

plan and bridging the digital 

divide was designated as one of the 

tasks needed to build a nation that 

can make the best use of the computer 

in the world. This project had opened 

100 IT centres at post offices nationwide 

by 2002. 

The government also provides assistance 

for companies that develop and 

market information devices and software 

for handicapped people. 

In April 2000, the plan to build a 

ubiquitous knowledge information 

society was established at the fourth 

information strategy meeting. Under 

the plan: 

ˆ Internet education took place at 

post offices, social welfare centres and 

community libraries; 

ˆ PCs were handed out and a five-year 

Internet use fee was granted to 50,000 

low-income family students; 

ˆ Housewives received Internet education; 

IT Literacy 

Gap in IT literacy 

Gap in information use 

Skill access 

Difference of information 

utilisation 

Figure 2: Classification of the digital divide’s stages 

IT Productivity 

Gap in using pattern of 

Internet 

Gap in utilisation (effects) 

Usage access 

Difference of information 

reception 

ˆ A general information website was 

opened for the handicapped. 

In June 2000, the plan for information 

education for 10 million people 

was established to provide information 

technology (IT) education for the 

general public, rural and senior citizens. 

In January 2001, the act on bridging 

the digital divide was enacted. The act 

formalised a comprehensive policy 

and a structure, to bridge the digital 

divide throughout Korean society. In 

September 2001, 14 ministries including 

MIC established the comprehensive 

plan for narrowing the digital 

divide, which instituted cross-ministerial 

efforts to bridge the digital divide. 

Implementing policy to 

bridge the digital divide 

Bridging the digital divide means 

reducing the gap in information access 

between those who live in a big city 

and a small one, between those who 

are affluent and who are not and 

between the handicapped and the 

non-handicapped. The policies that 

have been implemented so far can be 

summed up as: deployment of 

Internet broadband access for residents 

in villages and small towns, 

hand-out of desktops and Internet 

devices to those who 

cannot afford to buy 

them and installation of 

Internet access points 

in public places. 

The government has 

financed KT’s (ex-Korea 

Telecom) deployment 

of broadband networks 

since 1999. The government 

provided loan 

assistance to KT so that 

KT could deploy the 

broadband Internet 

20


access network across 205 

villages and 1,208 towns. 

As a result, 93 per cent of 

the homes in agrarian and 

fishing villages (3.47 million) 

were connected to the 

Internet by the end 2003 

and half of these are now 

using broadband Internet. 

Meanwhile, the government 

has added the public 

access points at government 

offices, post offices, 

etc., for people who have 

no desktop at home or who 

have trouble using the 

Internet at home. In 2003, 

even the smallest town, village 

or ward, has at least 

one public access point. 

The Ministry of 

G o v e r n m e n t 

Administration and Home 

Affairs has fostered 180 

villages as the information model villages 

since 2001 to increase information 

access for rural residents and let 

them use Internet for their daily life. 

Likewise, the Ministry of Maritime 

Affairs & Fisheries is setting up about 

250 information living rooms at 

selected fishery villages. 

The government provides free or inexpensive 

Internet service to students in 

primary, junior and senior middle 

schools. The government finances PC 

leases and Internet fees for 50,000 

students from low-income homes. 

About 40,000 used desktops were 

handed out at welfare facilities, rural 

homes and to the handicapped. 

Since 2003, the government has provided 

aid devices that help the handicapped 

use computers. Low-income 

homes and the handicapped are entitled 

to discounted rates for fixed and 

mobile phones. 

Promoting information use 

through education and 

content development 

To reduce the gap in Internet usage, 

the government has implemented 

massive IT education programmes 

that target people with little information 

access. 

Figure 3: Digital Divide Characteristics Based upon 2003 Internet adoption rate. 

A total of 13.8 million people benefited 

from this project by June 2002. In July 

2002, a second-phase plan was established 

which focused on practical education. 

Under this programme, 5 million 

farmers, fishermen, labourers, handicapped 

and senior citizens, are receiving 

elementary and mid-level IT 

courses. 

Meanwhile, about 30 types of content 

have been developed, available at 

www.itall.or.kr, to help senior citizens 

and the handicapped make better use 

of IT. 

Establishing the legal 

foundation 

In January 2001, the act on bridging 

the digital divide was enacted to establish 

programmes for bridging the digital 

divide. In January 2002, the 

guidelines for providing senior citizens 

and the handicapped with IT 

access were drawn up to help these 

people make better use of computers 

and the Internet. 

New directions to bridge 

the digital divide 

Stages of the digital divide 

It is necessary to identify the concept 

about the stages of the digital divide to 

establish policies to bridge the digital 

divide. Discussions among the scholars 

are summed up in Figure 2, which 

introduces three stages of IT accessibility. 

Stage one simply promises 

access to IT devices and services. 

The second stage is IT literacy, which 

is concerned with the skilful use of IT 

devices and information. The third 

stage calls for users to make productive 

use of IT in their daily lives and 

generates digital opportunity. 

Future directions 

As Korea becomes a full-fledged information 

society, it becomes necessary 

to shift policy focus from increasing IT 

access or ownership towards its skilful 

use. 

The concept of the information gap 

must also evolve to provide digital 

inclusion and digital opportunity. 

Digital inclusion stresses the importance 

of including everyone in the 

information society rather than stressing 

the gap between those who can use 

information and those who cannot. 

The emerging concept of digital 

opportunity seeks to enhance the productive 

utilisation of information. 

This means that the goal of policies 

that seek to reduce the information 

gap is now to reduce the imbalance 

between those who utilise information 

productively and those who do not, so 

that Korea can enhance its return-oninvestment 

in information and 

improve its competitiveness. Korea 

must now shift the focus of its IT policies 

towards improving productive 

nature of IT. 

The policy drive to narrow the information 

access gap that still exists must 

continue, if only to keep Koreas citizens 

equal to the challenges that the 

future launch of new IT devices and 

services that it will surely bring and to 

forestall the creation of a new gap in 

the future. 

21


Tax Office tip: to try technology; talk to taxpayers 

by Bill Gibson, Chief Information Officer, Australian Taxation Office 

Australias Tax Office has been working to find ways to make it easier and cheaper for 

people to comply with their tax obligations. The Tax Offices Listening to the community 

program and its state-of-the-art usability lab called the Simulation Centre allows 

designers and users of the tax system to share experiences. This has resulted in a series 

of on-line systems that provide businesses and tax agents with new and enhanced functions, 

with higher quality, more timely, information and processing. 

Bill Gibson is the Australian Taxation Offices first Chief Information Officer. Mr Gibson has worked in 

both the public and private sector, including the Health Insurance Commission where Mr Gibson was 

involved in the Medibank and Medicare Private programmes. 

Immediately before joining the Tax Office, Mr Gibson worked with QANTAS in a variety of IT roles 

including systems development, infrastructure and operations. In his current position, Mr Gibson is 

responsible for ensuring that the Tax Offices IT systems and processes support day-to-day business as 

well as high-quality service to the community. Over the next few years Mr Gibson will be focusing on 

supporting specific initiatives designed to make the Australian revenue system easier, cheaper and more 

personalised for both staff and the taxpaying community. Many of these initiatives include the further 

development of the offices online environment to provide people with free, secure and convenient electronic 

products and services. 

In recent years, the Tax Office has 

adopted a number of innovations, 

which have led to real improvements 

in the way taxpayers experience the 

revenue system. 

In March 2002, the Commissioner of 

Taxation announced the Listening to 

the Community programme. This 

involved the Tax Office working with 

the general community, small business, 

industry and tax agents to 

develop ideas to make it easier and 

cheaper for people to comply with 

their tax obligations. 

In addition to community involvement, 

the Tax Office is also committed 

to the concept of user-centred 

design (or co-design) to conceive, 

develop and test products and 

services. 

This approach is applied at all stages 

of developmentconcept, design, 

building and testingand involves 

the user in working out what should 

be delivered, how it should look and 

function and testing the usefulness 

and usability of the final product. 

Listening to the community has 

evolved into the Tax Office’s threephase 

Change Programme, which 

takes the information the Tax Office 

has heard to plan, design and implement 

improvements for taxpayers 

and their representatives. 

When determining taxpayers’ needs 

and how to fulfil them, the Tax Office 

uses a range of user-centred design 

and testing techniques including: 

ˆ Focus groups: Small discussion 

groups, which involve questioning 

and getting responses from a group 

of users. Focus groups are effective 

for concept and product testing, 

learning how people may use a product 

and exploring problems or complaints 

relating to a specific product. 

ˆ Prototyping: This involves developing 

examples of a product, system 

or trial model using paper or screenbased 

mock-ups. Prototyping begins 

once requirements have been identified. 

These prototypes are then evaluated 

by users, after which further 

prototypes are built based on their 

comments. 

ˆ Walkthroughs: Participants are 

asked to imagine a process, product 

or system and discuss what they 

would do or expect to happen at each 

step. This technique is generally used 

to look at current operations to identify 

problems or inefficiencies. 

ˆ Usability evaluation: This involves 

the evaluation of a product by users 

who are observed while interacting 

with the product. This can extend as 

far as detailed evaluation of participants’ 

facial expressions, reactions 

and behaviour. This technique can be 

applied at any stage of development 

and can lead to suggestions for 

improved design. 

ˆ User testing and observation: The 

Tax Office has a state-of-the-art 

usability lab called the Simulation 

Centre, which allows designers and 

users of the tax system to share experiences. 

The Simulation Centre 

includes two simulation rooms, an 

observation room, a discussion room 

and a design space. The Simulation 

Centre’s set-up enables designers to 

observe users interacting with products 

with minimal intrusion. 

ˆ User interviews: This involves a 

one-on-one interview with a client to 

evaluate a product, process or system 

from the early stages of a project and 

continuing to the early product 

design. This approach is commonly 

used to evaluate a proposed design. 

22

P o l i s h Y o u r C o n n e c t i o n s 

Broadband and Content: 

From Wires to Wireless 

16 –19 January 2005 

Hilton Hawaiian Village 

Beach Resort & Spa 

Honolulu, Hawaii USA 

Program Themes 

• The Value of Content 

• Transformational Applications 

• New Approaches to Development Issues 

• New Technologies 

• Mobile Applications and Users 

• Access 

• Security and Privacy 

• Predicting Demand 

• Global Networks 

• Regulatory Issues 

• Whither Plain Old Telephone Service 

(POTS) 

•Enabling Change 

PTC’05 Conference 

PTC’05 will be a milestone conference 

addressing key shifts in telecommunications 

as the issue of broadband availability gives 

way to content, access and use. The PTC’05 

conference will focus on the value of content 

in broadband networks, the market forces that 

drive demand for content, the players positioning 

for new revenue opportunities — and 

the rising importance of content delivery over 

mobile networks. 

Call for Participation 

Anyone interested in the critical issues facing 

the future of telecommunications should 

actively participate in PTC’05! Seize this 

golden opportunity and maximize your total 

participation in PTC’05: 

• Register Early & Save 

• Sponsor, Exhibit & Advertise 

• Full Time Student Volunteer Opportunities 

PTC members enjoy a 40% discount on the 

conference fee. If you are not a PTC member 

and are interested in joining, please email 

Justin Riel at justin@ptc.org. 

For more information, visit: 

www.ptc05.org 

For detailed information on PTC’05, visit www.ptc05.org 

Pacific Telecommunications Council 2454 South Beretania St., 3rd Floor, Honolulu, HI 96826 www.ptc.org Tel: +1.808.941.3789 Fax: +1.808.944.4874 E-mail: ptc05@ptc.org


Using these methods has enabled the 

Tax Office to develop and deliver new 

products and services and improve 

existing ones, which better meet taxpayers’ 

needs. For example: 

ˆ The website www.ato.gov.au has 

been redesigned to make it easier to 

find the right information; 

ˆ Options for streamlining income tax 

return preparation and lodgment have 

been tested with selected taxpayers. 

For example, PhonePack, which 

allows taxpayers with straightforward 

returns to prepare them on paper and 

lodge them on the telephone using a 

voice recognition system; 

ˆ Improved phone services for each 

group starting with a priority service 

for tax agents; 

ˆ Trials of specialised phone services 

for specific industry groups and subgroups; 

ˆ Tailored websites for tax agents and 

businesses via the Tax Agent Portal 

and Business Portal which provide 

details about their tax accounts and 

registration information and facilitating 

a range of activities, such as, 

online lodgement for a range of forms, 

requests for transfers and refunds, 

and sending secure messages to and 

from the Tax Office. 

Future direction 

Whilst much has been achieved over 

the last two years, there is a lot of work 

to be done over the coming three 

years. 

The Tax Office will continue to work 

with the community to identify 

changes and improvements to products 

and services. 

In terms of technology, the Tax 

Office’s Change Programme will help 

bring systems into current day technology 

framework, replacing core 

legacy applications, and improving 

operational performance and efficiencies. 

The Change Programme has three 

broad phases: 

ˆ Phase One was the high level planning 

phase which confirmed that the 

key outcomes from the Change 

Programme are to deliver an 

improved taxpayers’ experience, 

reduce Tax Office costs and have more 

flexible technology; 

ˆ Phase Two (April 

2004 to September 

2004) was the 

design for the programme; 

ˆ Phase Three is 

implementation 

and runs from 

September 2004 

through to 2007. 

The Change Programme 

is making effective 

plans for developing, 

improving and using 

various customer 

contact channels 

(such as online, 

phone and paper) for delivering products 

and services. As part of this, the 

Tax Office has assessed current channel 

use and has proposed improvements. 

Whilst the Tax Office wants to optimise 

the use of particular channels it 

will not degrade other channels and 

will continue to support traditional 

methods such as paper and phones. 

As well, the Change Programme is 

about building insight and intelligence 

from "data mining" and data analysis. 

This insight and intelligence is used to 

produce profiles, reports and models, 

which help the Tax Office understand 

and predict taxpayers’ behaviour. 

A better understanding of taxpayers 

means they will benefit from receiving 

information, which is relevant to 

them, their compliance history and 

risk profile. 

The Tax Office is continuing to explore 

opportunities for integrating tax-related 

activities with natural systems. 

Two examples are its work in the areas 

of facilitated lodgment and web services. 

In facilitated lodgment, a clients software 

package interfaces with another 

system to transfer data required to 

complete an online transaction. 

In web services, data are transferred 

directly from the clients electronic 

accounts to the Tax Office. The Tax 

Office is working with providers of 

commercial software to enable electronic 

lodgment of activity statements 

via web services and has commenced a 

pilot of this. 

Figure 1: In web services, data are transferred directly from the client’s electronic 

accounts to the Tax Office. 

Taxpayers will get better phone services 

when the Tax Office has a system 

that provides a consolidated view of 

their contact history. This will contribute 

to improved customer service 

and increased resolution of calls at the 

first point of contact. 

For individual taxpayers, a range of 

additional calculators and expert systems 

will assist in the determination 

of such as individual zone and overseas 

forces tax offsets, depreciation, 

foreign exempt income and forward 

losses. 

The Tax Office will continue to 

improve the Business Portal and Tax 

Agent Portal to provide new and 

enhanced functions, with more information 

and processing. 

Case study: the tax agent 

portal 

The idea of the tax agent portal came 

from the Listening to the Community 

programme. Tax agents were asked 

what they wanted. Working with tax 

professional associations and tax 

agents, the Tax Office determined the 

information and functions they most 

needed. 

The first release of the portal was in 

October 2002 after which the Tax 

Office gathered reactions and, through 

releases during 2003 and 2004, 

increased the functions of the portal. 

What it now offers tax agents includes 

the ability to: 

ˆ Access balances and details for 

accounts; 

ˆ View details of debts; 

ˆ Request transfers between accounts 

and refunds of credit balances; 

ˆ Update preference for receiving 

activity statements; 

ˆ View schedules of activity statements; 

24


ˆ Lodge and have activity statements 

processed; 

ˆ Advise where a client is not required 

to lodge a return; 

ˆ View and update client identity 

information; 

ˆ Download calculators and decision 

support tools; 

ˆ Obtain information on call waiting 

times for the premium phone service; 

ˆ Notify appointment or cancellation 

of a tax agent for a range of tax types; 

ˆ Have two-way messaging within a 

secure environment; 

ˆ Receive alerts from the Tax Office 

on new products, services and 

changes; 

ˆ Use an access control function 

allowing tax agents to create separate 

user accounts for their staff. 

As well as 24-7 online access to information 

and services, the benefits the 

portal has provided tax agents 

include: 

ˆ Certaintyagents can ensure a 

transaction has updated the client 

record correctly; 

ˆ Integrated viewtax agent and Tax 

Office staff see the same information; 

ˆ Responsivenessquicker answers 

to questions; 

ˆ Transparencymore information 

online means clients have a greater 

level of confidence and trust in the tax 

system; 

ˆ Improved data qualityagents can 

correct data recorded by the Tax 

Office; 

ˆ Reduced costsagents can free up 

time for other activities. 

Benefits for the Tax Office include: 

ˆ Increased compliancetax agents 

can quickly work out if lodgments 

have not been made or where amounts 

are outstanding; 

ˆ Improved data qualityexposing 

records to the community ensures the 

Tax Office has a data quality focus; 

ˆ Reduced error ratesreduced manual 

handling means less human error 

and online lodgment with validation 

checks ensures data is ready for processing; 

ˆ Reduced coststhere are fewer calls 

to call centres; 

ˆ Platform for future development 

the Tax Agent Portal provided the 

platform for the Business Portal. 

Reuse of common modules ensures 

consistency of experience and outcome 

and enables quicker development. 

A number of challenges arose through 

the development of the tax agent portal, 

including: 

ˆ Securitythe Internet presents specific 

security challenges. 

There are two levels of authentication 

for the portaluser ID and password, 

and public key infrastructure digital 

certificate security. 

Information travelling between the 

Tax Office and end users is protected 

by secure encryption. 

The Tax Office has made the process 

of installing digital certificates and 

associated software faster and easier. 

Independent bodies undertake a 

threat risk assessment and conduct 

penetration testing for each portal 

release. 

ˆ Accuracy and privacyexposing 

client information online means data 

has to be accurate and up-to-date. 

The Tax Office confirms data quality 

before exposing information on the 

portal. 

ˆ Different user environmentsto 

effectively deliver online services it is 

necessary to cater for a range of hardware 

and software platforms. 

The Tax Office designs products and 

services for a range of operating systems 

based on data about users of the 

Tax Office and Business Entry Point 

websites. 

ˆ Accessibilityonline products must 

be accessible to those with special 

needs. 

The Tax Office liaises with the Human 

Rights and Equal Opportunity 

Commission and regularly undertakes 

usability testing before implementation. 

ˆ Meeting expectationsas more 

products and services are provided 

online, expectations for improvements 

also increase. 

Through collaboration with tax professionals 

and committing to a threeyear 

cycle of improvements, the Tax 

Office lets tax agents know what’s 

coming. 

ˆ Speed to marketthere is a tension 

between delivering improvements 

quickly and ensuring those improvements 

are of a high quality. 

Part of meeting this challenge has 

been the Tax Office creating reusable 

code to eliminate duplication when 

providing similar services to different 

client groups. 

ˆ Stability and availabilityas users 

rely more on online products and 

services, interruptions to availability 

can have an adverse impact on their 

businesses and their attitude towards 

the product and the organisation. 

The Tax Office has developed testing 

strategies to ensure arrangements are 

in place, which can address outages 

and users know of problems and 

downtime. 

We’re changing the face 

of our website! 


We are enhancing 

our website to make 

it even more user 

friendly, informative 

and accessible. 

What would 

you like to see us 

add to or change 

on Connect-World’s 

website 

Please let us know. 

Send your comments 

via email to: 

info@connect-world.com 

The decision makers’ forum for ICT driven development 

25

Developing Regions and Technology 

Connecting peopleNew technologies, new hope 

by Bill Owens, President and CEO, Nortel Networks 

The World Bank estimates half the people in the world live on less than $2 a day and telephone 

service is still a luxury for them. Half of Africas 800 million people and 75 per 

cent of China’s 1.3 billion inhabitants have never made a phone call. Converged networks, 

based on packet technologies, can lower the cost of communications, make it 

affordable for this population, and revolutionize many aspects of their lives—how they 

work, learn, receive medical services, travel and entertain. 

Bill Owens is President and Chief Executive Officer of Nortel Networks. Previously, Mr Owens was chief executive officer 

and chairman of Teledesic LLC and President, Chief Operating Officer and Vice-Chairman of Science Applications 

International Corporation (SAIC), the USs largest employee-owned high-technology company. Prior to joining SAIC, 

Owens was vice-chairman of the Joint Chiefs of Staff and the second-ranking military officer in the United States. Mr 

Owens had responsibility for the re-organisation and re-structuring of the United States armed forces in the post-Cold 

War era. Previously, Bill Owens served as deputy chief of Naval Operations for Resources, Warfare Requirements and 

Assessments, commander of the US Sixth Fleet and as senior military assistant to Secretaries of Defense Frank Carlucci 

and Dick Cheney, the senior military position in the Office of the Secretary of Defense. 

Mr Owens has written more than 50 articles on national security and authored the book High Seas. Mr Owens latest 

book, Lifting the Fog of War, was published in April 2000. Bill Owens is a graduate of the US Naval Academy with a 

bachelor’s degree in mathematics. Mr Owens has a bachelor and masters degrees in politics, philosophy and economics 

from Oxford University and a masters in management from George Washington University. Mr Owens is the 

founder of Extend America, a five-year state wireless telecommunications venture and also sits on the public boards of 

Nortel Networks and Daimler Chrysler AG. Mr Owens is the senior advisor to AEA Investors LLC and is a member of 

several philanthropic boards including the Carnegie Foundation, Brookings Institution and the Fred Hutchinson 

Cancer Research Centre. Bill Owens is also a member of the Canadian Council of Chief Executives. 

Connecting people 

The world is moving faster and change 

is occurring at a tremendous pace. 

Communications is an integral part of 

that change, with its new technologies 

revolutionising so many aspects of our 

lives—the way we work, learn, receive 

medical services, travel and entertain. 

In short, communications is changing 

the way we live and this can be as true 

for emerging markets as it is in more 

developed parts of the world. 

While the broad implementation of 

new technologies, and the new services 

they make possible, translates into an 

exciting time for the communications 

industry, it holds the potential to be an 

exciting time for emerging regions as 

well. 

These new services can have a profound 

impact, by connecting people 

and providing new hope for improved 

standards of living, through education, 

medical care, commerce and global 

trade. Yet, for the great promise of 

communications to be realised, great 

challenges have to be overcome. The 

World Bank estimates half the people 

in the world live on less than $2 a day 

and telephone service is still a luxury 

in parts of the world.Half of Africa’s 

estimated 800 million people and 75 

per cent of China’s 1.3 billion population 

have never made a phone call. 

Although China is the world’s largest 

telecommunications market in terms 

of total subscribers, the number of 

telephones per 100 people is still relatively 

low with a large gap between 

urban and rural services, an inequity 

that is very common in emerging markets 

in many parts of the world. 

At the first World Summit on the 

Information Society held late last year 

in Geneva, some 11,000 delegates from 

more than 175 countries, came together 

to focus on shaping a global commitment 

to co-operation among governments, 

private business and civil 

society to help bridge the digital divide 

that separates emerging markets from 

the more developed countries. Among 

the long-term objectives confirmed at 

the summit was to connect all schools, 

villages, governments and hospitals 

with information communication technologies 

(ICTs) by 2015. Work is progressing 

to the second phase of the 

summit to be held in Tunis in late 

2005 where the agenda will include 

questions on infrastructure financing, 

which is a leading concern in many 

emerging markets. 

"The power of information and communication 

technology is removing the 

boundaries of time and space, which 

have long kept us apart. But too many 

people in the world are deprived of 

access to information and to the tools 

for accessing it," International 

Telecommunication Union (ITU) 

Secretary-General Yoshito Utsumi told 

the summit. He added: "From trade to 

telemedicine, from education to environmental 

protection, we have in our 

hands, on our desktopsthe ability to 

improve standards of living for millions 

upon millions of people." 

To see the transformation of communities, 

when the power of communications 

is provided, is empowering, 

uplifting and inspiring. Connecting 

26

Developing Regions and Technology 

people empowers and supports 

change, enhancing the human experience 

through new technologies that 

bring new hope for improvement in all 

aspects of everyones lives. 

New technologies, new hope 

The benefits of connecting people 

through the proliferation of new technologies 

throughout emerging markets 

are not in question, but delivering 

those benefits means lowering the 

costs for communications is vital. 

The new converged networks, based 

on packet technologies, have important 

implications for emerging regions. 

There, the proliferation of communication 

services has often been hampered, 

not only by high costs of building 

infrastructure, but by the high 

costs of services for users on very limited 

incomes. 

In the past, traditional networks have 

relied on separate networks, one to 

deliver telephone services, others for 

data. Multiple networks have meant 

multiples of operating costs; these are 

now being greatly reduced by converging 

networks to a single infrastructure. 

When you have a single network, it is 

easy and cost effective to deliver reliable 

and secure high-speed broadband 

access for voice, data, multimedia or 

video, either individually or in combination, 

using multiple devices 

phones, computers or handheld PDAs. 

At the core of these new converged 

networks that are driving the communications 

revolution around the world, 

are packet-based technologies like 

Internet Protocol (IP) and voice over 

IP (VoIP). Packet technologies convert 

any type of information, regardless of 

whether it is a voice conversation or 

critical health data like an x-ray, into 

tiny packets that are sent flying across 

the network in the same way email or 

web site information is transmitted. 

When all information is being transmitted 

in the same format — packets — 

a single network can integrate all kinds 

of services together and make them 

available for affordable wireline or 

wireless access, regardless of location, 

anywhere in the world. 

With new IP and VoIP packet technologies, 

country boundaries disappear 

as telephone calls over the 

Internet reduce long-distance charges 

to pennies. Converged networks also 

mean small ’mom and pop’ businesses 

can subscribe to a full range of communication 

services that, in the past, 

were only affordable to larger corporations. 

They can pay one low monthly 

fee to have telephone service with 

inexpensive long-distance calling, fax, 

e-mail and multimedia capabilities 

bundled together through one service 

provider. 

Lower communication costs help these 

smaller businesses be competitive if 

they are looking to compete within 

their own markets or even internationally. 

The delivery of reliable and secure 

high-speed broadband services 

through packetised networks has 

benefits well beyond business, fundamentally 

changing the way education 

and medical services are delivered. 

Anyone with a computer and Internet 

connection, even in the most remote 

regions, now has the opportunity to 

enroll as a virtual student at some of 

the best education institutions in the 

world. 

These institutions were previously out 

of reach due to the high cost of relocating 

to attend on-campus courses. 

Multimedia applications allow virtual 

students to attend lectures through 

videoconference, or collaborate in real 

time with other students or professors, 

with instant messaging, or whiteboarding, 

making changes to projects 

together, simultaneously. 

For healthcare, new communication 

technologies are delivering benefits, 

not only in how care is provided, but 

also in how and where it is received. 

Increasingly, medical resources such 

as digitised patient records can be 

accessed and shared in real time, 

regardless of location, allowing a doctor 

in a small village to collaborate 

with medical specialists hundreds of 

kilometres away. 

Specialist care is no longer restricted 

only to large cities where demand is 

highest, but has its reach extended to 

anyone in need. 

Moreover, these new applications for 

business, education, healthcare and 

person services do not depend upon 

wireline communications, but can also 

be delivered wirelessly by new third 

generation (3G) broadband wireless 

technologies. 

Service providers in most developed 

countries around the world are now 

implementing 3G networks, making a 

new era of business and consumer 

services possible. 

It is expected that 3G will be implemented 

in developing parts of the 

world in the near future. 3G wireless 

networks are delivering true mobility, 

anywhere, anytime, through such services 

as Internet surfing on cell phones, 

e-mails, video conferencing and financial 

services. 

While this high level of service might 

seem to be out of reach in some emerging 

markets where even basic telephone 

service is not yet available, a 

wireless 3G technology called CDMA 

450 - Code Division Multiple Access in 

the 450 megahertz spectrum - has 

been proving to be ideal. Because 450 

megahertz is a low frequency radio 

spectrum that allows cost-effective 

coverage of a broad area, service to 

rural and remote areas is achieved 

with fewer base stations. 

CDMA 450 can provide basic communication 

services, quickly and cost 

effectively, in regions where the sparse 

population cannot support the high 

cost of laying cable for standard wireline 

communications. 

For fixed wireless service, CDMA 450 

only requires a small antenna, 

installed on the roof of a house—in 

place of expensive cable—to connect 

the user with the local radio base stations 

in the area. This results in substantial 

capital and operational savings 

that, in turn, translate to low rates for 

users. 

The telephone can be used inside the 

house like any fixed line cordless 

handset, but has, as well, a limited 

range outside. CDMA 450 can support 

a range of services from simple telephone 

capability to broadband data 

services such as high-speed access and 

multimedia capabilities. 

Additionally, areas that already have 

very basic first generation wireless 

capabilities can quickly and affordably 

move to advanced 3G services by simply 

adding a card to the network equipment. 

Communications on its own cannot 

solve important issues such as world 

poverty, curing disease or protecting 

the environment, but it can and must 

play a powerful catalysing role. 

This is no pie-in-the-sky, altruistic 

vision. Communication technologies 

already form part of today’s worldwide 

foundation for making progress on 

these and many other global, human 

condition issues. When people are 

connected by new technologies, new 

hope cannot help but follow. 

27

GSM India - GSM India - GSM India - GSM India - GSM India 

GSM India 

The leaders of India’s GSM operators will gather for the annual GSM India 

conference in Goa, 18th – 19th January 2005, to discuss the future of the 

industry. 

Indian GSM operators gained 1.53 million subscribers 

in September, almost 10 per cent up 

on the August figure, according to figures 

from the Cellular Operators Association of 

India. This gives a total of 33.56 million GSM 

subscribers for the end of September. This 

makes India’s wireless market the second 

fastest expanding in the world with a 39 per 

cent annual growth rate. 

India widely recognised as the next great, untapped 

mobile market, having the second largest population 

in the world, is set to become the largest within 40 

years or so. Penetration is low (four per cent) and 

growth is high. 

The government has awoken to the potential, and is 

lifting or clarifying restrictions on everything from 

public share listings, to mergers, to foreign direct 

investment. 

However, competition is fierce. Indias Tariff Wars 

have attracted extensive coverage in the industry 

press. Falling tariffs and reduced margins have meant 

that average monthly revenue per user (ARPU) has 

only just stabilised, after a decline which has lasted 

four years. The argument is that although the overall 

market is growing, the expansion is increasingly bringing 

in subscribers with lower disposable income. 

One of the key questions GSM India will address is the 

reversal of ARPU decline through the adroit implementation 

of Value Added Services (VAS). To take the 

case of this years election in India, around 130,000 

people called Airtel Live's 646 voice service to check 

the election results. This is the highest number of calls 

in a day that any operator has fielded, so far, on such 

a service. 

This success is more than a one-off phenomenon, 

"Voice portal minutes have grown 60 per cent over 

the last quarter," says Mohit Bhatnagar, vice-president 

(new product development and alliances), Airtel. 

Airtel's closest competitor Hutchison Max Telecom, 

claims that its two-year-old voice service (123-service) 

is picking up momentum. Idea Cellular (456-service) 

and BPL Mobile (Just Call service), who have just started 

their own voice services, say they too are banking 

on expanding revenues from VAS. 

Operators claim that none of the voice services are 

choking up their networks yet, but as volumes move 

up, this will change. 

GSM India will highlight Indias operators rising to this 

challenge. Witness BSNL 200 million euro (US$246 

million) contract with Nokia to expand its GSM/Edge 

and GPRS network in north India. 

On the services themselves, Hutchison Max Telecom 

became the first Indian operator to launch mobile TV 

services under the Hutch TV brand. GSM India will 

also bring the major players in media such as Sony 

and Universal to highlight their cutting-edge work 

with mobile. Technical implementation will be thoroughly 

discussed, as will overseas insights from operators 

O2 and Orange. 

GSM India will also highlight the opportunities for 

value chain players other than operators. For instance, 

on the data-content itself, Indian mobile games developer 

Indiagames has made major in roads into markets 

both at home and abroad, for example being the 

most deployed provider of downloadable mobile 

games in Singapore. 

Couple this with the high interest in Bollywood 

themed mobile content showcased by Players like Eros 

International, this years GSM India looks set to be the 

most forward looking in the series. 

. 

To find out how to be part of GSM India … 

Please visit: 

www.gsmconferences.com/gsmindia 

Moreover, GSM India will highlight the future of VAS 

in non-voice, data-based applications. Although, 

today, operators report most users find it difficult to 

remember SMS codes, and the number of GPRS users 

in India, as a share of the total subscriber base, is low. 

The problem is that voice services take up a lot of network 

space, and that can put strains on profitability. 

Promotional Feature

Business Development 

Asian tigers in a global marketTechnology implications 

for smaller organisations 

by Derek Williams, Executive Vice President, Oracle Corporation, Asia Pacific Division 

Most large enterprises and governments across Asia Pacific have embraced Internetbased 

business processes and application. Today, as the first wave of e-business, large 

organisations are starting to reap the benefits. Behind these large organisations, though, 

is a network of small and mid-size enterprises, SMEs, which dominates the Asia Pacific 

business landscape and is the backbone of the value chain for global commerce. Now, 

Asia Pacifics smaller organisations can become competitive in the global value chain 

through strategic adoption of IT. 

Derek Williams is Executive Vice-President of Oracle Corporation, Asia Pacific and Japan. He is a member 

of Oracle’s Executive Management Committee and a director for Oracle Japan. Mr Williams formerly 

was Senior Vice President of Oracle Asia Pacific Division and served as regional director for 

strategic accounts before moving to head the newly created Asia Pacific Division. 

In recognition of his contribution to the development of the Chinese software industry, Mr Williams was 

awarded an Honorary Professorship from Shanghai Textile University in 1995. 

The global marketplace we operate in 

today is becoming smaller as a result 

of greater visibility and real-time connectivity 

via the Internet and 

advanced mobile communications. 

This new, more transparent world has 

increased competitive pressure on 

organisations and it is the small and 

mid-sized businesses, which often feel 

the greatest brunt. 

Supported by improved logistics, the 

connected marketplace makes smaller 

enterprises more vulnerable to 

replacement in their value chain. 

Increasing global competition in the 

worlds economy means companies 

are searching for ways to both differentiate 

themselves through new products 

and exemplary customer service 

whilst, at the same time, improving 

margins through cost cutting to meet 

investor commitments. 

Furthermore, as customers and suppliers 

adopt more advanced technologies, 

they force these standards on 

their smaller business partners. 

Unfortunately, the ability of smaller 

enterprises to address these challenges 

is constrained by the fact that 

they generally are not masters of their 

own destinies. They play the role of 

cog within value chains defined by the 

larger organisations. It is the larger 

enterprises that traditionally set the 

rules for business practices, performance 

standards and communication. 

For example, trading partners are 

beginning to demand that more business 

processes be conducted electronically. 

This trend affects smaller 

enterprises more so than larger companies, 

because their survival and success 

may depend on establishing links 

to partners, customers and suppliers. 

Smaller enterprises, therefore, must 

keep up or face replacement by a more 

capable player. 

Asia Pacifics smaller companies also 

face many other challenges. The 

amount of information exchanged 

with other players across the supply 

chain is increasing dramatically. 

Collaboration between companies will 

also increase as they outsource both 

functions and work to multiple companies 

across extended supply chains 

to optimise operations. 

Data broadcasting is also on the rise. 

New technologies like RFID (Radio 

Frequency Identification) — miniature 

devices that can be implanted into any 

product to broadcast information anytime, 

anywhere—will double or triple 

the data circulating in the worldwide 

economy. 

This data must be managed, synthesised 

and ultimately converted into 

useful, actionable information by 

companies of all sizes. Companies 

information systems must be able to 

handle such data volumes. 

Smaller organisations also face many 

of the same challenges that large 

enterprises deal with. A key area is 

Corporate Governance. 

Across the globe, new regulations 

demand more transparency and 

process certification, as well as greater 

29


information storage for longer periods. 

In parallel, the new modus 

operandi of companies as virtual corporations 

demand more users to generate, 

process and transmit information 

through firewalls, creating new 

and unexpected volumes of information. 

Companies need to be well prepared 

to deal with this dynamic data 

mountain. 

Pressure has never been greater on 

companies to lower operating costs, 

whilst improving governance and productivity 

to reduce time to market. 

Economic uncertainty, increased competition, 

compliance requirements 

standards have placed heavy burdens 

on the administrative and information 

technology systems of smaller businesses. 

Many of Asia Pacifics larger enterprises, 

the early adopters of Internetbased 

applications, have weathered 

the economic storm by operating efficiently 

as e-businesses. To survive 

alongside this first wave of e-business 

adoption, smaller organisations must 

similarly transform their operations 

and processes. 

Desperate to keep 

up 

So what is stopping these 

smaller firms from 

adopting e-business 

Factors such as fear of 

cost and of disruption to 

daily business are uppermost. 

Many companies 

find some business 

applications difficult to 

use, forcing up implementation 

costs. 

The cost of keeping up 

with technology and new 

business processes is 

high but the cost of noncompliance 

can be even 

higher, often resulting in 

higher costs, lower productivity, 

squeezed margins, 

weak corporate governance 

and ultimately 

imperilled viability. 

In addition, failure to ensure connectivity 

with trading partners and meet 

customer service-level commitments 

leads trading partners to label ones 

company as being difficult to do business 

with. 

It is imperative that smaller companies 

be able to compete with their 

peers and larger organisations. In the 

Internet age, it is too easy for dissatisfied 

customers to switch suppliers, or 

for business partners to drop lower 

value resellers. Exasperated employees 

slump to lower productivity and 

may leave, resulting in a talent drain, a 

vicious cycle that is difficult to break. 

Positioning for growth 

Keeping up is a survival strategy. Just 

reacting is doomed to fail. The focus 

must therefore be on going on the 

offensive - playing to win. Increasing 

competitiveness will increase shareholder 

value and attract trading partners. 

Companies need to achieve 

more with less and do so rapidly. 

In the effort to create value, smaller 

enterprises face several obstacles to 

improvement. The organisations 

themselves typically operate in functional 

or operational silos. They are 

not organised in theory, or practice, 

for seamless business process management. 

Figure 1: Mid-market business pressures. 

Communication is manual rather than 

automated among departments and 

with trading partners. Management 

reporting is typically periodic and 

fragmented. Inquiries from stakeholders, 

customers or suppliers cannot 

be confidently or accurately 

answered in a timely fashion. 

Disparate and disconnected business 

systems create complexity and make it 

challenging to manage by fact. For 

example, when making an order fulfilment 

promise, is it based on the manufacturing 

inventory status or the 

inventory position in the order management 

system Which one is continuously 

updated Has the information 

in these two systems any relation 

to what is actually available to promise 

in the warehouse 

The dispersion of management and 

information leads to a lack of control 

and visibility. The result is an error 

prone, inefficient business with a penchant 

for making decisions based on 

complex and untimely information. 

This is not a characteristic that proclaims, 

Were easy to do business 

with. Smaller enterprises need access 

to information, in real time to ensure a 

handle on the business. 

To remain viableand more desirably 

competitive, with a focus on growth 

smaller companies must bring knowledge 

and people together to better 

manage their business. They must 

automate and connect business 

processes within the company and 

work to enhance relationships with 

trading partners. While a tried and 

tested strategy for large businesses, 

strategic adoption of IT is now finally 

the focus for smaller enterprises. 

The reason for the lag of the small and 

mid-market segment has been the 

perception that 

enterprise software 

is too complex, too 

costly to implement 

and maintain and 

suited only for large 

companies. 

Smaller organisations 

make 

their move 

There are two 

dynamics, which are 

motivating smaller 

enterprises to take 

action. First, many 

of the large companies 

are now forcing 

their smaller trading 

partners to comply 

with more advanced 

requirements. To 

comply with this 

edict, smaller enterprises 

question the 

need to change. Weve been in business 

and have managed just fine so 

far, havent we Our existing systems 

are good enougharent they But in 

reality, is organisational data available 

in real-time and accurately enough to 

provide information that management 

can be confident in Looking back at 

the challenges presented previously, 

the answer is, by and large, no. 

30


Smaller enterprises have one powerful 

advantage over large organisations— 

their size enables much greater business 

agility. This unique advantage 

can enable them to adapt and execute 

new strategies quickly to become more 

competitive. 

Secondly, enterprise class software 

packages are now available for smaller 

businesses. The barriers have come 

down significantly for total cost of 

ownership (TCO), including the price 

of the software, implementation, 

hardware and ongoing support. 

Best practices and lessons learned 

have significantly matured these products 

and services ensuring greater 

project success and return on investment 

(ROI) to the traditionally risk 

adverse small enterprise. 

Typically, smaller companies do not 

have large in-house IT teams or budgets. 

In the past, this meant that they 

could not afford to buy, implement or 

manage the latest e-business systemsputting 

all of the associated 

benefits of these systems out of their 

reach. 

The combination of mature software 

solutions, solution packages priced for 

smaller businesses and the global best 

practices incorporated into todays 

solutions, now make it possible for 

smaller businesses to invest strategically 

in IT. 

As small businesses have many of the 

same requirements as larger companies, 

they need similar e-business 

information architecture and software 

capabilities as those enjoyed by large 

enterprises. They do not need downsized, 

non-scalable versions, which do 

not accommodate growth or offer key 

functionalities. 

To match their agility, smaller companies 

need an e-business system that 

can be put in place fast, in a matter of 

weeks, not months. 

Today, there are entire pre-packaged 

applications and best practice business 

flows available that can be quickly 

deployed to improve business efficiencies 

and reduce time-to-market 

significantly. 

In addition, smaller companies are 

making open standards an essential 

criterion of their IT system selection 

process. This ensures that their business 

does not become tied into a single technology 

platform, but can integrate seamlessly 

with various types of technology. 

For example, many Asian companies 

“Pressure has never 

been greater on companies 

to lower operating 

costs, whilst improving 

governance and productivity 

to reduce time to 

market.” 

have complex supply chains that may 

involve partnering and trading with 

other businesses; be it purchasing 

parts from Taiwan and Hong Kong for 

local assembly before being marketed 

to Eastern Bloc countries. 

Having a single open technology 

architecture means it is easy to do ebusiness 

with different technology 

infrastructures. 

This is especially important if a company 

is looking to merge or expand in 

the longer term. Bear in mind, successful 

smaller companies do not stay 

small, they aspire to grow. 

Another consideration is the use of 

products based upon the Linux operating 

system. Linux can dramatically 

reduce computing costs—both capital 

and maintenance cost—for smaller 

companies, whilst ensuring the highest 

levels of performance, reliability 

and security. 

A complete and integrated 

information architecture— 

simplifying the complex 

Large and small organisations alike 

have tended to build IT systems in 

reaction to specific demands for business 

functionality. 

The result is that these organisations 

are left to manage fragmented data 

and systems that are complex, poorly 

integrated and costly to maintain. 

In contrast, companies benefit from 

having a roadmap to strategically 

build company-wide information 

architecture. 

This will eliminate complexity and 

enhance connectivity by consolidating 

“Having a single open 

technology architecture 

means it is easy to do 

‘e-business’ with different 

technology 

infrastructures.” 

the infrastructure across three layers: 

applications, data and technology. 

Briefly, the three layers or sub-architectures 

are: 

1. Application Architecture—a consolidated 

core business and commodity 

applications footprint that share integrated 

processes, components and resources; 

2. Data Architecture—a unified data 

model that underpins an enterprises 

business processes and application; 

3. Technology Architecture—a consolidated, 

secure, accessible, scalable, 

reliable and secure technology infrastructure 

that supports the consolidated 

data and applications architectures 

of the enterprise. 

This strategic approach is particularly 

important for smaller businesses as 

they need to eliminate the cost and 

risk of traditional managed integration, 

improve data timeliness and 

quality and enable the deployment of 

global standard processes. 

In turn, they will benefit from more 

accurate and timely access to enterprise 

data, as well as achieve faster 

return on investment and improved 

governance as a result of an integrated 

architecture and solutions that are 

quick to implement, easy to use and 

inexpensive to maintain. 

Embarking on the 

transformation today 

The first wave of e-business is well 

established amongst the larger enterprise 

market. Now is the time for 

smaller enterprises to embark on 

transforming their businesses. 

Many companies in Asia Pacific 

already realise that affordable, reliable, 

secure and scalable e-business 

software can improve processes, 

reduce costs, boost overall profitability 

and provide a competitive edge. 

With the right approach and architecture 

in place, smaller companies 

across the region can be in the forefront 

of the second wave of e-business 

and profit from that leadership. 

Challenging economics and competitive 

forces favour companies that 

invest for the future. 

Companies choosing to hold back on 

IT investments will face stronger competitors 

that are investing now to create 

a competitive advantage and 

implement best practices for growth. 

 

31

The Broadband Show... 

making convergence happen 

13 

th 

13 

nvergence 

India 2005 

Pragati Maidan, New Delhi, India 

22-24 March 2005 

International Exhibition & Conference 

Incorporating 

Carriers & Telcos 

Broadcast & Cable 

Enterprise Solutions 

Multimedia & Internet 

Networks & Computing 

Mobile Communications 

Customer Premise Equipment 

Satellite & Space Technologies 

Telecommunications Equipment 

Broadband Access Technologies 

Get connected... 

BRINGING Technology Together 

Bringing Technology to BUSINESS 

Co-sponsor 

Certified by 

Supported by 

Government of India 

Ministry of Communications & IT 

Department of Telecommunications 

CABLE OPERATORS 

FEDERATION OF INDIA 

Co-organisers 

Manufacturers 

Association of 

Information Technology 

Government of India 

Ministry of Communications & IT 

Department of Information Technology 

Association of 

Unified Telecom Service 

Providers of India 

Consumer Electronics 

and TV Manufacturers 

Association 

Indo-American 

Chamber of 

Commerce 

Internet Service 

Providers Association 

of India 

Telecom Equipment 

Manufacturers 

Association of India 

Exhibitions India Pvt. Ltd. (An ISO 9001:2000 Certified Company) 

A-17 (2nd Floor) DDA SCO Complex, Near Moolchand Flyover, Defence Colony, New Delhi 110 024, India 

Tel: + 91 11 2463 8680, 5155 2001 Fax: + 91 11 2462 3320, 2463 3506 E-mail: exhibitionsindia@vsnl.com Website: www.convergenceindia.org 

Ctc: Rajesh Kapur, Executive Director (M) 98111 51456 / Bunny Sidhu, Vice President (M) 98104 43925 

Mumbai: Tel: + 91 22 2857 5235, 2857 1672 E-mail:exhibitionsindia@vsnl.net Bangalore: Tel: + 91 80 2532 7322 / 7324 E-mail:exhibitionsindiablr@vsnl.net 

VSAT Services 

Association 

of India 

Supporting Journal

Mobility and Small Business 

Mobile enterprise: big opportunities for smaller firms 

by Mats Victorin, Regional Head, Asia-Pacific, Ericsson Enterprise 

As the business world becomes more global, enterprises need to be more responsive, 

more available, more flexible and more efficient than everthis is especially true for 

smaller enterprises that compete with large corporations on the world stage. Mobile 

enterprise solutions and services have a key role to play in levelling the playing field for 

small and medium-sized enterprises (SMEs) addressing these business challenges. For 

operators, such services represent a great opportunity to gain competitive advantage and 

address the valuable enterprise segment. 

Mats Victorin, is Ericsson Enterprise ABs director for the Asia-Pacific region. After a number of years 

in the IT industry he joined Ericsson Enterprise in 1993. Mr Victorin has since held numerous managerial 

positions in the companys sales and marketing division, including Regional Business Director for 

sales in UK, Ireland and North America, head of EMEA Sales (Europe, Middle East, Africa) and Director 

of Global Marketing. 

Mr Victorin holds an MBA DHS from Stockholm School of Economics, where he specialised in Marketing 

and Finance. 

Mobile operators in the Asia-Pacific 

region are doing business in some of 

the most fiercely competitive markets 

in the world. They are typically experiencing 

falling levels of Average 

Revenue Per User (ARPU) and rising 

levels of subscriber churn, as the mass 

market for mobile services expands 

and the popularity of prepaid services 

grows. 

One key way mobile operators can 

address this situation is to attract and 

retain business users through mobile 

enterprise services. This should be 

good news for SMEs throughout the 

region, which will have a greater range 

of more easily accessible services on 

offer from operators. 

According to market analysts ARC 

Group, the number of mobile enterprise 

users in the Asia-Pacific region 

will grow from 61.4 million today to 

163.8 million by 2008, overtaking 

Europe (which, currently has the highest 

number). The penetration of enterprise 

data users in the region is set to 

grow from todays 54 per cent to 74 

per cent by 2008, according to ARC — 

over which time the Asia-Pacific 

region will become the largest mobile 

enterprise market, accounting for 40 

per cent of global revenues. 

So how can SMEs take advantage of 

these developments and punch above 

their weight in the global business 

arena 

The growth of the mobile 

enterprise 

There is a growing trend for enterprise 

workforces to become more mobile as 

markets and businesses become more 

global and flexible working practices 

spread. It is not just outside the office 

where mobility is importantindoor 

mobility is also a key to becoming 

more accessible and responsive, so 

that productivity and customer service 

are enhanced. 

While voice telephony still predominates 

in business communications 

particularly outside the officeother 

forms of communications are increasingly 

complementing it. Fixed and 

mobile telephony, e-mail and mobile 

computing are all converging and 

beginning to interwork more successfully 

to support enterprises wherever 

their employees happen to be working. 

Enterprises are keen to mobilise their 

existing investments in office applications 

and it makes sense to start with 

the applications that are most beneficialand 

simplestto adapt to the 

mobile world. 

While enterprises adopt mobile enterprise 

solutions at different rates and in 

a variety of ways, there are three 

major phases of evolution taking place 

in the market today. 

The first phase involves adding mobility 

to horizontal enterprise applications 

like corporate telephony, voicemail, 

automated attendant, e-mail, 

messaging and intranet access. This is 

already happening with the deployment 

of mobile extension and push e- 

33


mail services in China, India and other 

countries of South-East Asia, where 

there is great interest in these types of 

services. Mobilising such applications 

enhances personal control over time 

and supports enterprise communication 

and collaboration generally. 

For example, it makes personnel more 

accessible and frees up time that can 

be spent focusing on customers 

instead, while helping personnel 

become more efficient and motivated. 

“Mobile operators in 

the Asia-Pacific region 

are doing business in 

some of the most 

fiercely competitive 

markets in the world.” 

The second phase involves mobilising 

more complex business processes, 

where the value of mobilityand 

immediacymay be more pronounced 

and contributes to a reduction 

in process delays. Such processes 

include Field Force Automation 

(FFA), Sales Force Automation (SFA), 

Customer Relationship Management 

(CRM), Supply Chain Management 

(SCM) and Enterprise Resource 

Planning (ERP). 

Mobilising this acronym soup of 

applications may modify working 

practices, but does not change business 

processes in any profound way. 

In the third phase, mobility will enable 

the creation and transformation of 

business models. For example, new 

ways of delivering products or services 

will be created through machine-tomachine 

(M2M) mobility and the 

deployment of wireless sensors/transmitters 

in all kinds of products and 

equipment. 

Mobile business advantages 

Mobile enterprise solutions offer 

enterprises of all sizes new competitive 

advantages, for example, by making 

business-critical applications 

available everywhere and helping to 

drive down total cost of operations. 

They also add business value by 

encouraging the development of business 

and relationship skills, the creation 

of new partnerships and 

alliances and the development of new 

business models. 

Cost savings are one significant potential 

benefit. Money is saved by bringing 

the mobile phone into the corporate 

domainthere are fewer wasted 

calls, mobile call costs are more transparent 

and there is the potential to 

make special deals with network operators. 

Furthermore, costs become more predictable 

for the enterprise. Integrating 

mobile devices into the corporate 

environment can reduce IT management 

costs, cut mobile phone costs 

and improve efficiency. 

By implementing one number, one 

phone solutions, enterprises can 

reduce the amount of equipment and 

the number of subscriptions required. 

Costs are reduced through savings in 

office space and phones and further 

cost savings can be made by centralising 

common support functions (such 

as attendants) and through automated 

functions that reduce the need for 

support staff. Management of telephony 

services is also improved. 

Recent analysis of a one phone type 

implementationwhere all employees 

have either a mobile or fixed extension 

as their communications devicehas 

revealed cost savings of around 30 per 

cent in telephony costs per user, when 

all factors were taken into account 

including device and network rationalisation, 

common support and the 

mobile tariff deals agreed with operators. 

Other companies that have 

implemented such solutions have 

quoted overall cost reductions of 38 

per cent. 

PBX world goes IP 

In parallel to the trend towards mobility, 

there is a continuing move to converged 

IP-based architecture to support 

enterprise communications. The 

benefits of mobile-enabled converged 

communications include potentially 

substantial cost savings through 

reduced capital and operational costs. 

Following a slower start than many 

predicted, IP-based enterprise telephony 

is gaining ground fast. Significant 

inroads have already been made and 

dramatic growth is expected over the 

next few years. 

Enterprises not only gain cost savings 

and future-proof architecture, they 

also benefit from the fact that new 

multimedia services and applications 

will be easier to implement and manage 

in a converged infrastructure. 

While pure-play IP-PBXs still represent 

a relatively small proportion of 

customer premises equipment (CPE) 

shipments, the deployment of IP lines 

is expected to grow rapidly over the 

coming years as hybrid IP-enabled 

PBXs dominate the market. 

Businesses value these hybrid solutions 

because they enable them to take 

advantage of the cost savings generated 

by using their IP infrastructure for 

voice traffic where it makes sense (for 

intra-site traffic or branch office integration, 

for example), while still protecting 

their investments in existing 

business-class communications systems. 

In parallel to the growing popularity of 

IP-based CPE, the increased availability 

of broadband connections is 

enabling the deployment of Voiceover-IP 

(VoIP) services such as IP- 

Centrexof particular interest to 

SMEs. According to market analysts 

Probe Group, by the end of 2008, 

nearly 27 per cent of the global fixed 

line market will be using voice over 

packet technology. 

The deployment of IP telephony, particularly 

in branch offices, provides 

cost savings through convergence and 

lower transmission costs. In addition 

to cost savings, IP-based branch office 

solutions can provide local survivability, 

automatic recovery and PSTN 

access with direct media routing. 

“The aim is to make corporate 

access to data 

applications in the wide 

area as seamless and 

simple as possible for 

the user, to maximise 

cost, productivity and 

customer service benefits.” 

Hosting enables focus on 

core business 

Many enterprisesparticularly smaller 

onescan improve productivity 

and business performance by focusing 

on core activities and handing over 

responsibility for communications to a 

managed service provider. This not 

only helps reduce costs by optimising 

corporate communications, it also 

enables the active development of corporate 

communications to support the 

business. 

34


Smaller enterprises can save the often 

significant capital costs of purchasing 

and upgrading converged communications 

solutions through such hosted 

services. 

Mobile and IP Centrex services give 

small enterprises access to the latest 

mobile enterprise capabilities, with 

the ability to manage the services 

themselves. Total cost of ownership 

can also be reduced by expert consulting 

services to optimise corporate 

communications. 

For the mobile operator, there are big 

potential revenues to be earned by 

helping enterprises go mobileafter 

all, enterprise users tend to spend 

around four times more on their 

mobile services than consumers do. 

Enhancing productivity and 

customer satisfaction 

Mobility-enabled converged communications 

solutions help enterprises 

boost productivity by enabling 

employees to make better use of their 

time. 

Through seamless and secure mobile 

access to corporate voice and data 

applications, employees are more 

available to callers and so spend less 

time returning missed calls. They have 

faster access to information and colleagues 

wherever they are. 

In addition, mobile enterprise solutions 

enable flexible working so that 

employees can work effectively at 

times and places that suit them. 

Business processes are not interrupted 

by the unavailability of people or 

information. 

Enhanced mobility and communications 

convergence can have a positive 

impact on customers perceived quality 

of communications and general satisfaction 

in a number of ways. 

One key area is improved availability 

and responsiveness of employees. 

Tasks get handled quicker and customers 

are dealt with more efficiently, 

even if the primary contact person is 

busy or unavailable. 

Availability while working around the 

enterprise premises is improved 

through the use of in-building coverage 

solutions for wireless access to the 

corporate networkwhether using 

WiFi or mobile network technology. 

In this way, corporate policies for 

maintaining professional customer 

communications are supported. 

Security matters 

As enterprises begin to implement IPbased 

telephony systems and services 

in their networks, what were once isolated 

circuit-switched networks are 

becoming part of the global IP infrastructure. 

That makes them just as 

open to abuse and attack as any other 

IP-based solution, especially as voice 

becomes more integrated with dataoriented 

applications. 

With mobility-enabled converged 

solutions, security becomes an even 

more important issueit is no longer 

possible simply to build a secure shell 

around the enterprise network in the 

form of a firewall. More sophisticated 

and flexible protection is needed. 

Security is as important off-site as it is 

on-site. For mobile enterprise communications, 

this means having 

secure remote access both to and from 

mobile phones, remote PCs and laptop 

computers. 

For smaller enterprises particularly, 

hosted services for security, back-up 

and disaster recovery not only ensure 

that corporate data are secure, they 

also provide access to carrier-class 

infrastructure and storage capabilities. 

For smartphone users, secure access 

can be provided in three main ways. 

At the most basic level, Microsoft 

Internet Information Server (IIS) web 

server security can be used. 

A higher level of security is provided 

by securing the connection with 

Transport Layer Security (TLS), which 

supports the Secure Sockets Layer 

(SSL). A third level of security can be 

provided using IPSec (IP security protocol), 

with a Symbian (mobile operating 

system) client, to secure a tunnel 

to the server. 

Towards the mobile 

multimedia future 

While business-class mobile telephony 

is the obvious starting point for 

mobilising the enterprise, mobile 

access to multimedia applications is 

becoming increasingly important. The 

aim is to make corporate access to 

data applications in the wide area as 

seamless and simple as possible for 

the user, to maximise cost, productivity 

and customer service benefits. 

New technologies and standardslike 

IMS (IP Multimedia Subsystem)are 

becoming available to enable operators 

to offer single-source provision of 

integrated fixed and mobile services. 

There are also fixed cellular access 

solutions that enable mobile operators 

to serve the fixed communications 

needs of SMEs cost-effectively in areas 

such as rural locations or business 

parks. 

One of the first IMS-based services is 

provided by Push-to-talk over Cellular 

(PoC) standard solutions that offer 

feature-rich services for group communications, 

chat rooms, personal 

alerts and presence management. 

PoC solutions can operate entirely in 

the packet-switched domain, using 

common service enablers for group, 

list and presence management and 

multi-party conferencing. 

The future prospects for mobile enterprise 

services look very promising. 

Operators in the Asia-Pacific region 

have a great opportunity to start offering 

value-added services that will 

attract and retain enterprise customers 

and SMEs will be among the 

major beneficiaries of this trend. 

We welcome your 

comments ... 


If you have any 

comments or opinions 

about this issue’s theme, 

Emerging Technology, 

Emerging Hope, as it 

affects Asia Pacific and 

beyond, we would like 

to hear from you. 

Send us your comments. 

Simply complete the reply 

card and fax it to 

our editorial team. 

Fax no: 

+44 20 7474 0900 

or send an e-mail to 

editorial@connect-world.com 


35

Regional Development–Wireless Broadband 

Broadband wireless, people and the economy 

by Guy J. Kelnhofer III, President and CEO, NextNet Wireless, Inc 

Asias explosive growth, due partly to its Internet driven integration into the global economy, 

has fuelled job creation. These high-paying jobs have stimulated the migration of 

workers to regions with the best essential services and jobs, bringing crowding and overloading 

the service structures in these regions. These jobs are terrific for economies and 

people, but threaten traditional family structures and debilitate the local economies of 

the regions left behind. Wireless Broadband can inexpensively connect these regions and 

help reverse this decline. 

Guy Kelnhofer III is President and CEO of NextNet Wireless and serves on the Board of Directors of the 

Wireless Communications Association. Before joining NextNet, Guy served as chief operating officer at 

Dataradio COR Ltd., as General Manager, Director of International Sales and Director of International 

Sourcing at E.F. Johnson Company and as Chief Executive Officer of Medical and Electronic Technology 

Exporters, Inc. Mr Kelnhofer is a graduate of Nankai University, Tianjin, Peoples Republic of China. 

Unique problems and 

opportunities 

The Asian broadband market is huge 

and still swiftly growing. Nearly half of 

the worlds people live in this region, 

with population growth among the 

highest in the world. 

Many Asian economies are booming, 

bringing with this growth intense 

needs for Internet accessparticularly 

broadband access. 

Clearly, high-speed Internet access is 

a crucial element in the strategy of 

Asian businesses. Broadband Internet 

access enables small firms in 

Indonesia, for example, to market in 

Europe or the US effectively. 

Asian firms with broadband Internet 

access increase their opportunities to 

compete in the global marketplace. 

South Korean residents enjoy one of 

the highest penetration ratesmore 

than 60 per centof broadband access 

in the world. Arguably, its focus on 

broadband access is a prime component 

of South Koreas successes in 

export industries ranging from electronics 

to automobiles. 

India is rapidly becoming the hightech 

outsourcing choice for US and 

European business. The city of 

Hyderabad is nearly as well known as 

Silicon Valley. 

These opportunities, while exciting, 

bring problems and disparities to 

Asian economies and people. 

Burgeoning growth fuels job creation, 

happily often in high paying industries. 

However, most job growth occurs in 

areas with the best essential services 

in place; this accelerates the migration 

of people seeking opportunity to these 

areas, bringing increased crowding 

and load upon these services. 

Rapid influxes of populations to and 

from cities and frequently within 

cities, create problems ranging from 

road crowding to overloaded utility 

services. Even the delivery of mail is 

impacted.Local school systems struggle 

to adapt, with minimal budgets, to 

exploding student populations. 

Despite these problems, this type of 

growth is terrific for economies and 

people. 

However, what of those left behind 

Even in South Korea, where broadband 

adoption is strong, large portions 

of the country have little or no 

broadband access. 

It is common for large underserved 

areas to exist within cities, even large 

cities. This problem is magnified in 

countries where broadband coverage 

is less prevalent. What are the human 

costs for inadequate broadband 

access 

This migration of populations disrupts 

the traditional family units that are so 

important in Asian cultures. In addition 

jobs are lost in the underserved 

neighborhoods and towns left behind. 

These growth areas and economies 

may falter. Tax bases drop causing 

disruption and degradation of essential 

services. It becomes harder for 

smaller businesses, which traditional- 

36

Telecomm India 2004 - Telecomm India 2004 - Telecomm India 2004 - Telecomm India 2004 

TELECOMM INDIA 2004 

TELECOMM INDIA 2004 INTERNATIONAL CONFERENCE, MUMBAI 

Honourable Mr Dayanidhi Maran, Minister of 

Communications and IT inaugurated the 

TELECOMM India 2004 International Conference, 

held at the Hotel Grand Hyatt in Mumbai on 

October 26, 2004. The conference was organised 

by the India-Tech Foundation, a public trust and 

industry association. 

The Conference, held concurrently with an exhibition, 

took place on October 25-28, 2004 at the 

MMRDA Exhibition Grounds, Bandra-Kurla Complex, 

Mumbai. The exhibition highlighted the current status 

and trends in the Telecom and IT sectors. It 

brought into focus the technologies, machinery and 

services now available in India to harness business 

opportunities with speed, quality and economy. 

Telecomm India 2004 afforded an ideal occasion to 

meet and network with experts and exhibitors from 

Bahrain, Belarus, Bhutan, China, Denmark, France, 

Germany, Ghana, Japan, Russia, Singapore, 

Switzerland, Sri Lanka, Syria, Taiwan, Uzbekistan, UK, 

USA and many more. 

Over 51 eminent experts, including six overseas 

guests, from the telecom and IT sectors, shared their 

views on subjects ranging from rural telecommunications 

to global technologies. A highlight of the event 

was the high-powered CEO Forum on Investment & 

Business Opportunities in the Telecom and IT sector 

chaired by Mr R. S. P. Sinha, Chairman & Managing 

Director, MTand NL, and co-chaired by Mr Vivek Sett, 

Chief Financial Officer, Tata Teleservices Ltd. 

India-Tech Foundation, with the assistance of the 

Government of Indias Ministries of Commerce and 

External Affairs, invited buying delegations from 

friendly neighbouring countries. High-powered delegations 

from Bhutan, Ghana, Nepal, Sri Lanka, Syria, 

Romania, and Russia participated in a highly focused 

Buyers-Sellers Meet. 

Figure 2: TELECOMM India 2004 International Conference, held at the Hotel 

Grand Hyatt in Mumbai. 

Six Indian state governments supported the event, 

with Chhattisgarh as the Partner State and Andhra 

Pradesh, Delhi, Gujarat, Rajasthan and Uttaranchal as 

Guest States. Telecomm India highlighted the role 

state governments play in the IT industry and how 

they are improving their respective infrastructures to 

make them Ideal Investment Destinations for both 

overseas and Indian entrepreneurs and investors. 

Among the senior policy planners in the Government 

and industry experts made incisive and thought provoking 

presentations were: Mr. Shyamal Ghosh, 

AdministratorUSO Fund; Mr. D. P. S. Seth, Member 

TRAI; Mr. R. K. Arora, Senior Director and Group Coordinator, 

Dept. of IT; Mr. A. K. Sinha, Chairman and 

Managing Director, Bharat Sanchar Nigam Ltd; Mr. S. 

N. Zindal, Director General, STPI; Mr. N. P. Singh, 

Director (IP), Department of Telecommunications; 

Mr. Sathya Prasad Rai, Industry Sales 

DirectorCommunications and Media, Oracle India. 

Renowned Overseas experts also shared their experiences 

at the Telecomm India Conference including: 

Dr. Charles Wheatley, Senior Vice President, 

Qualcomm Inc., USA; Ms. Claire Paponneau, 

Executive Vice President, France Telecom; Mr. Raj Puri, 

Vice President, VeriSign Inc., USA; Mr. Choon Hoe 

Chua, Industry DirectorTelecom (South America and 

Asia Pacific), Sun Microsystems; Mr. James Person, 

Director (APAC), CDG, USA. 

Telecomm Indias corporate sponsors were: 

Figure 1: Gold sponsors, Verisign. 

Diamond: Oracle 

Prime Co-Sponsor: Bharat Sanchar Nigam Ltd. (Bsnl) 

Strategic Partner: Mahanagar Telephone Nigam Ltd. 

(Mtnl) 

Platinum: Qualcomm Inc. 

Gold: Verisign Inc., Sify Ltd., Cisco Systems. 

Silver: France Telecom, Microsoft, WIPRO Ltd. 

Promotional Feature


ly employ most people in Asia, to compete 

and survive. 

Perhaps most importantly, the future 

of children is at risk in these communities. 

Schools and classrooms in 

underserved areas are relegated to 

inferior Internet access and educational 

tools. 

Opportunities for higher education 

suffer. Job opportunities become 

scarcer and pay less. Health care is 

impacted with reduced access to specialist 

knowledge and attention. 

The ultimate consequence of populations 

left behind without adequate 

broadband access is loss of opportunity 

and reduced quality of life. 

But are there solutions 

Existing broadband options in 

Asia 

Certainly solutions exist. However, 

each possesses strengths and weaknesses. 

Traditional broadband DSL services 

are deployed in major cities across 

Asia, despite their distance limitations. 

Cable television systems provide 

broadband in some Asian countries. 

Unfortunately cable does not scale 

well for business use. 

Deployments of fibre optic technology 

are growing, but are still prohibitively 

expensive for most markets. Remote 

rural areas may use satellite broadband 

technology despite significant 

problems with latency and cost. 

Cellular phone equipment is widespread 

in Asia. However, the deployment 

of 3G data services remains 

stalled due to costs. 

Additionally, 3G bandwidth capabilities 

do not meet business class needs. 

In some countries, traditional fixed 

wireless technologies fill gaps. These 

deployments relieve disparities in 

some communities, but unfortunately 

not all. 

Older broadband wireless technology 

suffers from line of sight (LOS) problems 

requiring physical installation of 

all customer connections and upping 

operational costs. Older fixed wireless 

technologies do not offer a path to 

mobile access. 

These tradeoffs suggest that these 

options should be viewed as complimentary 

technologies. In fact, recent 

advances and initiatives in broadband 

wireless technologies offer unprecedented 

opportunities to ameliorate 

these drawbacks and knit these solutions 

together. 

Broadband location flexible 

wireless technology and WiMAX 

Supported by a number of key members, 

the WiMAX Forum aims to continue 

to promote the best technologies 

currently offered by industry leading 

vendors. 

A key goal of the WiMAX Forum is to 

ensure true interoperability between 

vendors, allowing each vendor to add 

specific features that differentiate its 

products. The value is clear: lower cost 

gear for all wireless access providers. 

Consistent standards offer many 

advantages, not the least of which is 

identifying existing best in class technologies 

and building a standard 

around them. 

Many of these advances are already 

available through commercial deployments 

in countries such as Mexico, 

Canada, Brazil and the US. WiMax will 

help drive this technology to worldwide 

adoption. 

WiMAX designs integrate leading 

edge non-line-of-sight (NLOS) coverage 

from current vendorsallowing 

customers to simply plug & play. This 

essentially eliminates the professional 

truck-roll installations required with 

LOS first generation wireless systems. 

It also increases the potential customer 

base, resulting in lowered costs 

for both carriers and subscribers. 

The WiMAX Forum“ incorporates 

technical improvementscompared 

to older broadband wireless systems 

ranging from robust security to efficient 

spectrum utilisation, with 

increased range and throughput. 

“Forced to play catch 

up, many Asian countries 

have actually leapfrogged 

the West in terms of 

infrastructure. Cellular 

wireless is often chosen 

over wireline solutions.” 

An equally important new feature is 

location flexible portability, already 

being delivered in multiple markets 

worldwide, including a recent installation 

in Bangladesh. The ability to travel 

with a high-speed modem about a 

city offers innovative capabilities for 

public safety and emergency response 

teams. 

Current commercial deployments in 

Mexico, Bangladesh and North 

America offer WiMAX features such 

as long-range NLOS capability, multicarrier 

segmentation support and 

enhanced spectrum and data efficiency. 

WiMax adopted technologies such 

as Orthogonal Frequency Division 

Multiplexing (OFDM) and Time 

Division Duplex (TDD) are already in 

use in these markets. The WiMAX 

Forum chose these standards as optimum 

for high-speed wireless access 

delivery. The ability to offer true Telco 

level quality of service (QoS) capability 

with broadband wireless gives 

Asian carriers a real choice. 

Traditional wireline broadband 

options offer functional solutions in 

special cases. Broadband wireless 

extends this capability at the edge and 

at the core. The clear vision for the 

near future is being able to board a 

plane in Mexico City with a small wireless 

modem and touch down in 

Beijing, where the user can immediately 

connect through another wireless 

network, both of which are fed by 

fibre optics. 

How can current commercial gear, 

shortly to be enhanced with WiMAX 

interoperability, be successful More 

importantly, what capabilities can it 

bestow to the Asia of the twenty-first 

century 

The real world impact of 

broadband wireless on 

peoples lives 

The analysis firm of InStat/MDR 

reports that globally the total number 

of broadband wireless subscribers is 

expected to jump 500 per cent from 

2002 to 2006. Many of these new customers 

will be in Asia. Partially due to 

cost constraints, many Asian countries 

were unable to widely deploy older 

telecom technologies. 

Forced to play catch up, many Asian 

countries have actually leapfrogged 

the West in terms of infrastructure. 

Cellular wireless is often chosen over 

wireline solutions. Early stage broadband 

wireless technologies were used, 

as were the most recent fibre optic systems. 

Likewise, Asian access firms 

choosing WiMAX compatible technology 

to extend their markets can 

achieve superior capabilities relative 

to the world. 

38


However, what is the every 

day impact of this technology 

in peoples lives 

The capability exists nowand could 

be widespread soonfor a traveller in 

a Chinese city to board a train surfing 

the web with inexpensive high-speed 

wireless Wi-Fi access in the car. This, 

in turn, is fed by robust carrier class 

WiMAX radios spaced along the 

routeall supported by fibre optics 

buried along the railroad right of way. 

People could literally travel for hours 

shifting seamlessly from one regional 

carrier to another along the way. The 

leverage that people and society 

receive by being connected and productive 

during commuting alone is 

enormous when multiplied by millions 

travelling daily. 

No other existing technology offers 

this promise. People can work, shop, 

talk to their families, receive weather 

reports and hear public safety advisories 

all from a PDA or laptop virtually 

anywhere. 

Benefits go far deeper, however, 

because increased broadband access 

opens the world to people. 

Educational opportunities for school 

children to view advanced seminars, 

classes and lectures taught interactively 

over the web via a broadband 

wireless connection are unlimited. 

With broadband access doctors can 

access extensive databases maintained 

only at teaching universities. 

Specialists can consult, nearly instantly, 

on cases involving trauma or illness 

from hundreds of miles away. Remote 

surgical operations are even possible 

when the proper instruments and a 

broadband wireless connection are 

available. 

Being enabled and connected to the 

larger world brings jobs and the sense 

of pride that comes with the ability to 

compete in the global economy. 

Perhaps, however, some of the most 

impressive benefits will come in the 

areas of public safety and emergency 

response. 

Public safety 

Imagine a fire raging in a building in a 

mid-size Chinese city. The police 

respond along with fire, rescue and 

other emergency personnel. All emergency 

vehicles are equipped with 

broadband wireless connections, providing 

instant access to shared data. 

The police are routed for traffic and 

“Being enabled and 

connected to the larger 

world brings jobs and 

the sense of pride that 

comes with the ability 

to compete in the 

global economy.” 

crowd control by central dispatch, 

which can view traffic cams (as can 

officers) to anticipate problems and 

choose re-routes. 

The firemen are fed access to the 

buildings floor plans, exit routes and 

ventilation systems to most efficiently 

save lives and evaluate the buildings 

structural integrity. A plan is formed 

before they even arrive. Victims 

receive personalised treatment on the 

scene, via instant access to individual 

medical records. 

Citizenry in the area receive advisories 

to avoid the danger and traffic alerts 

automatically go out to radio stations 

via broadband connections. All of this 

convenience serves many ends: faster 

coordinated response, preservation of 

property, public safety and a greater 

ability to save lives when every second 

counts. 

The future you say Not so. The core 

technology for each piece of this scenario 

exists today. The missing piece 

is widespread broadband wireless 

connectivity. 

Selecting the right technology 

Asian countries possess widely varying 

terrain and broadband needs. One 

key element in evaluating broadband 

wireless radio systems for Asian 

deployments is to examine current 

extensive and successful, commercial 

deployments in a variety of markets 

worldwide. 

Vendors learn practical lessons working 

with carriers on actual deployments 

that are not otherwise understood. 

Deployments over large geographies 

such as existing installations 

in Mexico, Bangladesh and North 

America offer a practical proving 

ground. Tried and true is the watchword 

for the Asian carrier looking for 

a proven solution to build a business 

around. 

Asian carriers should view case studies 

of actual deployments in both urban 

and rural settings, such as Iowa farm 

communities and Bangladeshi villages. 

Solutions proven to deliver cash positive 

business performance for rural 

and remote carriers are essential in 

Asia. So too must actual urban deployments 

meet their planned business 

metrics. 

A successful NLOS track record is 

vital. The proven ability, in actual 

working markets, to provide customers 

with a radio they can literally 

plug in and use immediately is rare. 

Performance ranges of up to 30 

km from a base station site are 

reasonable. 

Depending on the business model of 

the carrier, the vendors technology 

should be compatible with multiple 

independent service carriers or just 

one. Cross-carrier roaming capability 

between access providers is the standard 

customers will expect. 

The OFDM standard offers numerous 

optimisations that enhance the 

always on broadband experience and 

network performance. Some technologies 

require build-up and tear down 

processes that add unnecessary overhead 

to connections. 

The carriers approach to mobility 

should be prudent and not overreaching. 

Current technology amply supports 

location flexible service whereby 

customers, such as a public safety 

officer, can drive around a city or town 

and immediately connect to the network 

seamlessly. 

Totally mobile service has been verified. 

However, it may require more 

coverage than is initially viable economically. 

For most current users, 

location flexible portability is more 

than sufficient. 

Conclusion 

Greater access to broadband connectivity 

throughout Asia promises many 

opportunities and benefits to the people 

who live there. Providers need 

effective solutions for each specific 

market need and situation. 

Clearly, plug and play location flexible 

broadband solutions offer the key 

to successful business models that 

deliver on this promise with reliable, 

flexible and affordable service. Expect 

broadband wireless to play a major 

role in creating new opportunities for 

social and economic growth in Asia. 

39

VoIP 

VoIPNetworking for economic development in the Asia- 

Pacific region 

by Richard C. Grange, President & CEO, New Global Telecom 

Voice-over-Internet Protocol or VoIP is changing the worlds telecommunications. A 

VoIP company in the USA, Vonage, won the fight to keep VoIP regulation free and is 

growing rapidly. Skype, which offers free software and free computer-to-computer voice 

service, has millions of users worldwide. Large operating companies routinely use IP 

services to carry much of their long-distance traffic. Within the next few years, companies 

of all sizes and residences throughout the world will be using VoIP for low-cost, 


Richard C. Grange began his telecommunications career in 1982 when he co-founded and served as 

Executive Vice President and chief executive officer of TMC of Colorado, a long-distance reseller. After 

TMC of Colorado was sold to TelAmerica, Mr Grange founded and served as President and Chief 

Executive Officer of Meridian Telecom International, a provider of international call termination and 

international operator services. Mr Grange served also as President of the Technology Resource Group, 

an international call back carrier. Mr Grange founded NGT in 1996 and has served as its President and 

Chief Executive since its inception. 

Voice-over-Internet Protocol, or VoIP, 

has been changing telecommunications 

around the globe. In the United 

States, a company named Vonage has 

led the charge with 10,000 new residential 

users per month. 

They boldly challenged—and won—the 

support of the Federal Communications 

Council (FCC) with regard to keeping 

the VoIP services regulation-free. 

Luxembourg-based Skype has created 

a stir by offering a free VoIP solution. 

Skypes free software has been downloaded 

over 32 million times since 

launch in August 2003. 

These are not isolated incidences—traditional 

phone companies, cable 

providers and Internet providers all 

expect to stimulate new revenue 

streams by implementing VoIP services. 

VoIP services are paving the way 

for rapid economic development as 

well as changing the manner and form 

of telecommunications around the 

world. 

How can service providers from within 

the Asia-Pacific region take advantage 

of VoIP services There are ten critical 

considerations that emerging VoIP 

service providers everywhere should 

take into account to participate in the 

VoIP revolution. 

Targeting markets 

Addressable market segments for VoIP 

services include residential; small 

office / home office; small and midsize 

businesses and enterprises. 

However, VoIP penetration is 

extremely low in all these segments. 

Today, we are still at the leading edge 

of the VoIP industry growth curve. 

Still, VoIP line shipments to the business 

sector will actually exceed TDM 

line shipments in 2005, indicating an 

enormous acceptance of VoIP solutions. 

In addition, local broadband access, 

DSL or high-speed Internet statistics 

are valuable for identifying potential 

markets since they are enablers for 

VoIP service penetration. 

The market segments chosen by any 

service provider will drive the development 

of a service value or sales proposition 

having the most appeal to that 

marketplace. 

For instance, there is a vastly different 

proposition for primary line residential 

service than for secondary line 

service; and a very different proposition 

for hosted PBX service to a business 

than for connectivity between an 

onsite PBX and the public network. 

Knowing your target market is central 

to effective product definition and 

development. 

Choosing delivery models 

Service providers can opt for a buildmy-own 

(i.e. self-provisioned) hosted 

VoIP services solution to address their 

markets, or they can utilise a managed 

wholesale option. This is the classic 

’build versus buy decision. Figure one 

reflects some of the most important 

factors (though by no means all of the 

factors) that figure into this decision. 

Capital cost avoidance (for instance, in 

relation to application servers) and 

operating cost savings (such as technical 

skill sets), in conjunction with 

access to IP (and legacy TDM) experience 

are sound reasons to consider a 

wholesale solution. Also compelling 

given the complexity and effort 

40

Special 

discount only 

US$99 for Indian 

Operators 

8th Annual Event 

Accessing the Second 

Largest Market in the World 

18th – 19th January 2005 

Leela Palace Hotel, Goa, India 

Sponsors: 

Including Presentations From: 

AK Sinha, 

Chairman & Managing Director, BSNL 

Naresh Gupta, 

Chief Technology Officer, Hutchison India 

Mohit Bhatnagar, 

Vice-President, New Product Development & 

Alliances, Airtel 

Sukanta Dey, 

Chief Marketing Officer & Commercial Officer, 

Idea Cellular 

Special Insights From Overseas Operators: 

Vivek Badrinath, 

Chief Technology Officer, Orange Group 

Richard Sedgwick, 

Manager Data Services & Business Development, mmO2 

Plus India's Industry Leaders Outside Cellular: 

Santosh Desai, 

President, McCann-Erickson 

Kishore Lulla, 

Chairman, Eros International 

Key Topics Include: 

Platinum 

Media 

Partners: 

Launching commercial 3G services, the 

overseas experience 

Strategies in product & service innovation for 

revenue growth 

India's operators’ progress in reversing ARPU 

decline, & increasing revenues from VAS 

The potential for India’s entertainment 

industry in the mobile space 

Evolution from 2G to 3G, 

Professional Training Course 

20th & 21st January 2004 

Communications strategies to differentiate 

your service offerings 

Getting the voice/data balance right in VAS 

BSNL’s next steps in making ‘5 to 25’ a reality 

Spectrum optimisation, network expansion, and 

progress towards next generation networks 

Reserve accommodation asap to 

avoid disappointment 

See back page for booking details 

For more information on the full agenda and to book your place please contact 

Tamara James on +44 (0) 20 7017 5506 or alternatively please visit the website 

www.gsmconferences.com/gsmindia 

Organised by: Part of: Part of the: 

Endorsed by: Media Partners: 

telecoms 

group 

WORLD SERIES 

IBC Global Conferences is a wholly owned subsidiary of the Informa Group plc which is quoted on the London 

Stock Exchange under the Media section and has offices in: • Australia • Austria • Brazil • Dubai • Finland 

• France • Germany • Hong Kong • Netherlands • Singapore • Sweden • Switzerland • United Kingdom • USA 

REGISTRATION 

HOTLINE 

+44 (0)20 7017 5506

Submarine Networks - Submarine Networks - Submarine Networks - Submarine Networks 

Submarine Networks 

The 7th Submarine Networks World 2004 event was successfully held in Singapore from 22 – 23 

September 2004. It brought together more than 100 delegates and 28 international speakers. Sixtythree 

per cent of the delegates were senior-level decision makers from the submarine community. 

The event was very well represented by participants from Asia, the USA, UK and the Middle East. 

Fifty per cent of the representatives were from Asia, 24 per cent from the UK and 14 per cent from 

the USA. 

The recent good news about Global Crossings emergence 

from Chapter XI bankruptcy protection provided 

positive news for the industry and gives customers 

and vendors renewed confidence. Following the successful 

merger of Reliance and Flag Telecom, the 

industry is poised for a year of transformation, 

through new partnerships and joint ventures, as 

regional submarine cable operators rally behind the 

potential of collaborations in the global capacity business. 

As one of the toughest years for the sub-sea 

community draws to a close, it is time to take stock of 

what has happened this year and seize the chance to 

look forward and preview the way forward in 2005. 

Submarine Networks World 2004 also provided an 

excellent platform for submarine industry players to 

learn, network and discover new strategiesnew 

waysto handle todays vigorous competition. 

Feedback from conference delegates was positive and 

encouraging. Most delegates commented on the 

quality of international speakers, conference programme 

and the extent of networking opportunities 

offered. Most speakers received very good evaluations, 

with several achieving exceptionally high 

evaluations. 

The two-day conference offered a wealth of insights 

into the issues that most concern todays submarine 

cable community. The conferencefeaturing case 

studies about leading international cable and telecom 

operators, interactive panel discussions of submarine 

cable consolidation, discussions of the ASEAN agenda, 

growing profits and increasing competition, 

direct selling to the marketplace and fast forward submarine 

networksgave delegates a valuable learning 

experience. 

Words from our delegates 

Figure 1: Submarine Networks World 2004 has established itself 

as Asia’s annual networking point. 

Submarine Networks World 2004 has established 

itself as Asias annual networking point; it brings 

together key industry leaderscable operators, telecom 

operators, submarine manufacturers and service 

providers to discuss key market trends and technology 

developments in Asia. 

The overall theme of the 2004 conference was 

‘Undersea Intelligence’. Unprecedented and extensive 

efforts were made to put together a top-level 

quality conference. The aim was to assist the submarine 

cable industry in discovering new winning strategies 

and emerging opportunities in Asias cable 

industry. 

"Great event organisation with excellent level of 

speakers, particularly Claire Paponneau, Fiona Beck, 

Michael Rieger, Robert Munier, Phillip Murphy and 

Patrick Gallergher" 

Olivier Verdier, Head of External Division, Telecom 

Division, OPT New Caledonia, USA 

"Well done to Terrapinns for well organised event" 

Mike Hynes, Chief Operating Officer, Azea Networks 

Limited 

"Good mixture of speakers, topics and especially the 

quality of panel discussions" 

Brian Tellam, Director of Project Finance & Advisory, 

ABN Amro 

This event provided the submarine community with 

an accelerated learning experience based upon the 

winning strategies of international cable operators, 

current and future project developments, latest technology 

deployments, future market trends and new 

business models used by cable operators. 

Promotional Feature

VoIP 

required to create an end-to-end serviceis 

increased speed-to-market and 

access to tested systems for smooth 

delivery. At the same time, a managed 

wholesale solution may not offer the 

same degree of network control and 

flexibility in voice product packaging 

as the build-my-own alternative. A 

thorough assessment would consider 

these and other important, aspects of 

product development, deployment and 

support for each particular service 

provider. 

Whichever delivery model is chosen, 

service providers will want to ensure 

they have a solid position in the market, 

relative to competitive alternatives. 

In the business market, competing 

head-to-head with IP PBXs and 

other hosted services, solutions need 

to effectively counter IP PBX limitations. 

ˆ Technology obsolescencePBXs 

require ongoing investment to maintain 

state-of-the-art features and technical 

capabilities, indeed most IP PBX 

manufacturers issue dot releases 

monthly and major releases every six 

to 12 months, which can require 

expensive hardware upgrades; 

ˆ Technology limitationsIP PBXs 

cannot generally interface to third 

party software or other vendors equipment, 

has limited resale value and 

often uses outdated technology; 

ˆ Challenging interfaceThe system 

interface is often not user-friendly and 

may require 10 to 15 days training; 

ˆ Security issuesAny breach of security 

from external sources jeopardises 

the integrity of your customers LAN 

network. 

Maximising customer 

acquisition 

Creating a compelling long-term sales 

proposition is critical to customer 

acquisition. While creating appeal for 

the early-adopter user can lead to 

some short-term success, VoIP is going 

to become a mainstream servicevery 

likely attaining primary line service 

status in homes and businesses across 

the country. So, creating a proposition 

that is focused on all the market hot 

buttons holds the most promise of 

continued appeal. The choice of distribution 

channels is critical from the 

perspective of rapid customer acquisition. 

Since retail distribution can 

account for 20 per cent of your operating 

expense, it is also critical from a 

financial viewpoint. A direct sale is the 

highest cost approach. Indirect channels, 

agents, can be difficult to manage 

in a pre-mass adoption market. 

These channels need to learn how to 

sell VoIP services in the most timeeffective 

way. Regardless of your chosen 

channel, you will need a well-constructed 

set of marketing support 

tools, including high-impact communications, 

benefit / cost demos, product 

functionality demos, easy-to-use 

post-sales materials and so on. 

Educating your target market, despite 

the flow of information from the large 

operators, is an important part of the 

communication process. Once 

prospects understand the power of 

VoIP services in addressing their 

needs, the excitement level risesthe 

challenge lies in making that power 

quickly and visibly effective. 

Accelerating ROI 

Service providers can buy market 

share through low ball pricingbut as 

tempting as this might be in the shortterm, 

it is not a sound financial strategy 

and will not maximise Return-On- 

Investment. The market is likely to 

respond very positively to prices 10 per 

cent to 30 per cent below the pricing of 

comparable legacy (TDM) service, so 

that should be the target range for 

price-positioning. In fact, 72 per cent 

of SMBs express interest in VoIP services 

with just a 15 per cent cost savings. 

As figure 2 indicates, 69 per cent of 

service providers agree on a target 

range for cost savings of 10 per cent to 

30 per cent. Cost reductions afforded 

by IP technology make this price positioning 

profitable and we believe, sustainable. 

The ability for VoIP services to attract 

new customers and to retain existing 

ones, is strengthened tremendously 

through product bundlingfor 

instance, with Internet accessto create 

a one stop offer. This is perceived 

by consumers and businesses as being 

much more interesting and compelling 

than buying VoIP service on its own. 

As with all sound product strategies, 

creating positive financials means 

ensuring you are delivering the value 

that customers want and will pay for. 

VoIP offers a wide range of exciting 

functionality that meets real consumer 

and business needs; this is the key to 

maximising long-term margins and 

ROI for service providers. 

Will the solution actually work 

IP technology has been deployed for 

several years as a means of achieving 

compressed transmission in long-haul 

backbone carrier networks. But, VoIP 

as a front-line voice service is relatively 

new, as are the plethora of products 

being deployed to enable VoIP services. 

So, first and foremost, a wise step is 

to request a demo account that permits 

thorough trialing of any product or 

service you might be contemplating. 

This will help you answer the does it 

work question and will allow you to 

understand capabilities and limitations. 

In addition, consider all the proactive 

tactics a network vendor or platform / 

software vendor can utilise to ensure 

reliability of their offering, and to give 

you a degree of comfort. These can 

range from physical network redundancy 

and active network testing procedures, 

to rock-solid SLAs (Service 

Level Agreements) and Network 

Operations Center coverage. Processes 

and procedures have to be tailored to 

the unique challenges of an IP network 

consisting of disparate, decoupled 

elements. 

It is important to understand plans for 

testing and extending the line of 

supported equipment, including 

media gateways and customer 

premise equipment (CPE)the 

marketplace will continuously try out 

and adopt new equipment. 

The challenge of moving 

from testing to live 

implementation 

This is a big leap, requiring internal 

expertise and vendor support. IP networks, 

by nature, are unlike consoli- 

Figure 1: Self-provisioned VoIP service solutions. 

43

VoIP 

dated TDM networks. IP 

networks are essentially 

decoupled, requiring critical 

voice networking knowledge. 

Here are some important 

considerations: 

ˆ Ensure that the production 

systems are redundant 

and fully tested; 

ˆ Testing should include all 

ancillary systems, such as 

media servers, POP3 

servers, DNS set-up and 

network connectivity (note 

that many times lab / testing 

environments do not 

include important ancillary 

systems); 

ˆ Security policies should 

be in-place; 

ˆ Provisioning processes 

should be in-place and testedincluding 

fall-back 

plans for each step along the 

way; 

ˆ Network documentation should be 

in-place, accurate and sufficiently 

detailed; 

ˆ Procedures for carefully taking endusers 

through planned changes should 

be thorough and tested; 

ˆ User Acceptance Testing (UAT) 

should ensure that all features and 

functionality are working as planned 

this should include troubleshooting 

checklists to systematically identify 

any minor problems. 

Voice expertise 

Delivering VoIP services does require 

experience in the voice telecom 

worldthis is not a data service, but it 

is not a traditional voice service either. 

Engineering issues can be successfully 

managed using either in-house expertise 

or available through vendors / partners 

in such areas as: 

ˆ Local Number Portability (LNP); 

ˆ 911 and e911; 

ˆ Directory Assistance and Directory 

Listings; 

ˆ Operator Services; 

ˆ Inter / Intra LATA dialing plans and 

billing; 

ˆ 800 Services; 

ˆ Equal access; 

ˆ Call flows (and feature use); 

Figure 2: 69 per cent of service providers agree on a target range for cost-savings of 

10 to 30 per cent. 

ˆ TDM-based trouble-shooting; 

ˆ Corporate CLEC (competitive local 

exchange carrier) status; 

ˆ Dealing effectively with LEC and 

other CLEC procedures, processes and 

people. 

In addition, a formalised training programme 

will be extremely valuable for 

internal staff, for business and for residential 

end-users. Since VoIP is new 

to most users, providing them with 

sufficient information is critical to 

ensure all involved are comfortable 

with the service. 

Ongoing technical and 

service support 

Quality of Service (QoS) must be 

addressed. The major contributing 

factors to QoS are: 

ˆ Latencythe time needed for a 

packet to traverse the network; 

ˆ Packet Lossthe percentage of 

packets lost while transiting the network; 

ˆ Jittera measure of the variation in 

arrival delay for a series of packets. 

Tier one and two customer support 

procedures and hierarchy must be 

established, with clear delineation 

between your companys responsibilities 

and those of your vendors. 

Responsibilities to carefully consider 

include problem troubleshooting, 

maintenance of system integrity, as 

well as hardware and applications support. 

If you are providing VoIP services 

to the business market, 

technical knowledge for 

customers LAN / WAN 

assessments and interworking 

will be needed. 

Success in VoIP will be 

defined by short product 

development cycles — 

quickly getting new features 

and capabilities 

from testing into production. 

So, product development 

and engineering 

functions need to be 

highly skilled and tightly 

integrated. 

Scalability of backoffice 

and delivery 

functions 

As sales volume grows, 

automation will be needed 

in such operational 

areas as: order input, 

account set up, feature 

assignment, billing, customer premises 

equipment (CPE) fulfillment, 

onsite network assessment and 

installation (business market) and 

customer relationship management 

(CRM). 

This requires considerable attention to 

automation and integration of 

Operational Support Systems (OSS) 

and Business Support Systems (BSS) 

in the early stages of service delivery. 

In addition to dealing with growing 

volumes, OSS / BSS systems must provide 

increased accuracy and audit 

capabilities through the entire service 

or product life cycle in order to ensure 

seamless delivery to customers. 

Replicating service and 

expanding service footprint 

Initial selection of geographic markets 

is a complex decision, considering the 

companys preferred sales approach, 

existing network, level of anticipated 

competition and so on. Appropriate 

phasing of growth is important to 

maintain smooth operations and 

sound financial results. 

An orderly expansion will be facilitated 

by what has been learned from initial 

market experiences, but will nonetheless 

require detailed cost analysis that 

takes significant variations into 

account, including conditions such as 

LEC (Local Exchange Carrier) interconnection 

for PSTN (Public Switched 

Telephone Network) access, collocation 

costs and local support, as well as 

intrastate and interstate toll arrangements. 

 

44

Featuring 

28 High-level speakers 

20 Carriers 

16 CEO / COO speakers 

12 Hours of networking breaks 

7 Year track record 

6 Keynotes 

4 panel discussions including 

+ 1 CEO panel discussion 

+ 1 Keynote panel 

2 Days of high-level content 

1 Post conference workshop 

1 Event... 

The 7th Annual 

Asia 2005 

8 – 10 March 2005, Conrad Hotel, Hong Kong 

New Revenue Streams 

Key speakers 

Adrienne Scott 

Vice President 

AT&T 

Bruce Akhurst 

Group Managing 

Director of 

Wholesale and 

Broadband 

Telstra 

Carla Cico 

CEO 

Brasil Telecom 

Prakash Bajpai 

President 

Reliance 

Infocomm 

Edward Tian 

CEO 

China Netcom 

Peter Wong 

CEO 

Hutchison 

Global Communications 

AK Sinha 

Chairman and 

Managing 

Director 

BSNL 

Kristiono 

CEO 

PT TELKOM 

Stefano 

Mazzitelli 

CEO 

Telecom Italia 

Sparkle 

Bruce Hicks 

CEO 

Sunday 


Vu Hoang Lien 

CEO 

Vietnam Post & 

Telecommunications, 

VDC 

Vichaow 

Rakphongphai 

roj 

Managing 

Director, COO 

and Member of 

Executive Board 

True Corp 

Silver sponsors: 

Shahid Farooq 

Si (M) 

Chairman 

National 

Telecommunication 

Corporation 

Ryan Jarvis 

Chairman 

Fixed Mobile 

Convergence 

Alliance 

Chief of 

Products and 

Partnerships 

BT Mobile 

Call today to book your place at +65 6322 2700 

or log on to the website to register now! 

Claire 

Paponneau 

Executive Vice 

President 

France Telecom 

Bronze sponsor: 

Luncheon sponsors: 

Document bag sponsor: 

Lanyard sponsor: 

Associate sponsor: 

Endorsed by: 

Organised by: 

CARRIERS WORLD ASIA 2005 FAX (65) 6226 3264 

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I am interested in sponsorship/exhibiting at the event. Please contact me 

Please send me a Carriers World Asia 2005 conference brochure 

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www.carriersworld.com/2005/cwa_HK


Wireless internet access as the key to knowledge-based 

growth and economic prosperity 

by Thomas A. Freeburg, Chief Operating Officer and Director of Strategy, MemoryLink 

A World Bank study showed that giving a small farmer a telephone could double his 

income. The Internet gives that advantage to all occupations. Internet penetration in 

North America is 60 per cent; in Asia Pacific, penetration is only six per cent. Nearly two 

billion additional Internet connections are needed for Asia-Pacific to reach North 

American penetration levels. Wirelessoperating in unlicensed frequency bands, with 

per dwelling capital investments as low as US$9is the only economical way to provide 

such widespread connectivity. 

Thomas A Freeburg is Chief Operating Officer and Director of MemoryLink. Mr Freeburg is one of the 

foremost experts in broadband Internet, particularly in the area of unlicensed wireless platforms. He 

has 60 US Patents and more than 120 published papers. With one eye on today and one eye on tomorrow, 

he rallies 39 years of experience at Motorola, where he served as Corporate Vice President, Chief 

Futurist and Director of Technology. Mr Freeburg earned a BSEE from Bradley University and a MSEE 

from the Illinois Institute of Technology. 

Emerging technology in the Asia 

Pacific region is much like a gigantic 

field of flowers about to burst into full 

bloom. Imagine a field where a handful 

of these flowers are already providing a 

glimpse of their beautiful colours; we 

see much of the same in our view of the 

regions economic and social landscapea 

future that will advance dramatically 

as communications technologies 

unfold. 

Information and communications 

knowledge-based poweris increasingly 

recognised as the key enabler in 

promoting growth, creating jobs and 

improving life, for both developed and 

developing nations. Access to information 

and knowledge stimulates economic 

growth by creating new products, 

increasing productivity and promoting 

new commercial and administrative 

methods. 

A decade ago, a study by the World 

Bank sought to rank industrial applications 

against investment priorities in 

Asia-Pacifics emerging nations. The 

study pointed to a union between agriculture 

and telephony; by giving a 

small farmer a telephone, one could 

expect to double his income! The 

Internet and its associated applications 

extend that principle to all occupations 

that have a knowledge-based component. 

In Asia Pacific, as in many other parts 

of the world today, communication 

connectivity is made up of three broad, 

yet distinct groups: entertainment, 

classical telephony and the Internet. 

Entertainment in the form of radio and 

television is typically one-way, overthe-air 

broadcasting. 

The balance of the entertainment market 

is shared by cable and satellite. 

Over-the-air broadcasting has maintained 

a major presence in Asia Pacific 

for a long time. Initially subsidised by 

the respective governments, over-theair 

broadcasting also has been regulated 

substantially. In the meantime, 

cable and satellite are becoming more 

and more important and are gaining 

new ground. 

Classical telephony has two groups: 

wired and cellular, both of which are 

true network technologies because they 

provide for two-way communication. 

In Asia Pacific as in most other parts of 

the world, a large percentage of the 

wired telephony networks continue as 

monopolies and considering the economics 

of installing new wire, it is easy 

to see why a second wired network 

would be difficult or even impossible to 

build. 

The cellular side of the scale is balanced 

by privatisation and competitionlots 

of competition. Twenty years 

after the breakup of the worlds largest 

communications monopolyAmerican 

Telephone and Telegraphmany consumers 

in the US have no fewer than 

eight distinct sources of wired and 

wireless telecommunications services 

available to them and at historically 

low prices. Also today a huge number 

of competing Internet Protocol (IP) 

carriers have become telephony players 

connecting customers via cable, fibre, 

telephone wireline-based DSL or dialup. 

Finally, there is the Internet, which is 

dramatically different from either the 

entertainment group or classical 

telephony. Both the entertainment and 

classical telephony models house vast 

46


amounts of network intelligence within 

the networks themselves. Devices void 

of intelligencetelevisions and telephones, 

for exampleare placed at the 

outer edges. The Internets intelligence, 

on the other hand, is situated at 

the extreme outer edges of the network. 

The network, in fact, offers no intelligence 

whatsoever, a key differentiator 

structurally and a significant underpinning 

for supporting the Internets continued 

global proliferation. 

The borders of the Internet are as 

unique as they are diversified. They are 

fashioned from copper twisted pairs for 

dialup, Digital Subscriber Line (DSL) 

over twisted pairs, high-speed fibre, 

Multipoint Microwave Distribution 

System (MMDS) satellite, cellular, 

broadband over cable, or wireless 

broadband, both licensed and unlicensed. 

In short, the Internet has become the 

undisputed master of network interconnectivity. 

Given the diverse nature 

of its interconnectivity, with all that 

intelligence spread out along the outer 

edges of its network, the Internet offers 

the lowest barrier to entry of any communications 

technology. Combined 

with mans insatiable appetite for 

information, it is extremely easy to see 

why the Internet has grown at such a 

rapid rate and to such mammoth proportions. 

Technologies that use wire, cable and 

fibre are destined to remain as integral 

parts of the communications technology 

mix, but most likely will never again 

experience the growth rates they once 

did. These types of networks are least 

likely to see substantial new growth, 

due to the high cost of installation. 

In Asia-Pacific, just as in Europe or the 

Americas, it is not unusual to incur an 

average near-urban installation cost of 

US$3,000 for every dwelling passed, 

even before the dwelling itself is connected 

to the network. In urban areas, 

though population density is greater 

and suggests increased economies of 

scale, the costs are typically higher. In 

rural areas, an obvious lack of population 

density fails to justify the substantial 

capital investment required for 

wired or fibre network expansion. 

For Asia-Pacifics communication and 

information technology to advance 

throughout the region at a rate commensurate 

with its growing appetite for 

knowledge and information, affordability 

is paramountboth for the 

provider and the subscriber. An unlicensed 

wireless approachwireless 

that operates in frequency bands that 

can be used without licensingprovides 

the only reasonable solution, 

especially when the typical near-urban, 

per-dwelling capital investment can be 

as low as US$9. 

Beyond capital expense, modern equipment 

deployments associated with 

unlicensed wireless require minimal 

intersystem coordination, which in 

turn helps minimise planning and 

management. While there has been 

much discussion about back office efficiencies 

such as billing, the fact is that 

a back office operation in an unlicensed 

wireless setting plays a minor role at 

most. 

The unlicensed wireless approach to 

last-mile delivery of the Internet 

strongly suggests a new economy of 

scale. Yet the economic reality actually 

is a diseconomy of scalethe most 

cost-efficient wireless Internet network 

is one that serves a few hundred to a 

few thousand dwellings. Networks of 

this size operating in a typical nearurban 

environment can be profitable 

even where some neighbourhoods have 

market penetrations as low as two or 

three per cent. 

Unlike wired networks burdened with 

US$3,000-per-dwelling capital investments, 

their unlicensed wireless counterparts 

do not have to get every person 

in every dwelling to sign up for service. 

Asia-Pacifics insatiable appetite for 

information and knowledge, just like 

the flowers preparing to burst into full 

colour, forms the basis for all kinds of 

new opportunities, as well as new challenges. 

On one side is the requirement 

for network expansion so that more 

people throughout the region have 

access to the Internet. On the other 

side is the bandwidth requirement. As 

demand for more content and new, 

more complex applications grows, so 

does the challenge to ensure that 

enough bandwidth is available to deliver 

all of what people wantto all of the 

people who want it. 

Around the world today there are more 

than 600 million Internet users. The 

largest groupsome 190 millionis in 

Europe. The second largest group187 

millionis in Asia Pacific. North 

America ranks third with 182 million. 

However, the data paints a much different 

picture when Internet users are 

presented as a percentage of population. 

Across Europe, about 37 per cent of the 

population has Internet access, whereas 

in North America, nearly 60 per cent 

of the population is connected. In contrast, 

in Asia Pacific the 187 million 

Internet users account for only six per 

cent of the regions total population. If 

that were to jump suddenly to the level 

of North America, nearly two billion 

additional people would require 

Internet connection! 

To accommodate effectively Asia 

Pacifics hunger for Internet-based 

knowledge and information, as well as 

the broadly anticipated increased 

bandwidth requirements, wireless 

specifically in the form of unlicensed 

wireless broadbandappears to be the 

only logical approach to a common 

solution. Not only does wireless broadband 

use unlicensed spectrum, equipment 

costs for delivery of the Internet 

to countless households is minimal. 

In all likelihood, telecentresmost typically 

public kiosks with Internet-connected 

terminalswill begin to appear 

on street corners throughout most 

Asia-Pacific urban centres. In nearurban 

and rural areas, fixed wireless 

broadband will become the primary 

means for Internet connectivity. 

Municipalities are becoming Internet 

service providers. Emerging economies 

in particular already recognise the 

value of the Internet for its ability to 

promote knowledge-based economic 

and social growth. 

The Internet is a tool that promotes literacy 

and has the ability to help lift a 

communitys citizenry from poverty. It 

looks for a growing number of municipalities 

across the region to provide 

Internet access to its citizens who yearn 

for a higher quality of life. Economic 

growth will accompany and ultimately 

support these efforts to provide a fertile 

ground for the rapid expansion of wireless 

broadband throughout the region. 

Rapid growth of wireless technology 

provides the perfect opportunity for a 

new variety of carrier. As traditional 

telecom carriers fade into the background, 

along with their high-cost 

infrastructures, new entrants such as 

power utilities, railroads and major 

real estate developers will use their 

land holdings and rights-of-way to take 

advantage of low-cost wireless technology. 

These new entrants to the communications 

knowledge-and-information 

delivery mix are well suited to provide 

the big pipe needed to transport the 

vast amounts of bandwidth to a growing 

number of last-mile wireless broadband 

service providers and their customers. 

Those who search for the perfect causeand-effect 

example need not look 

beyond the Asia-Pacific region: the 

causemass Internet connectivityis 

destined to produce a spectacular effect 

in the form of individual knowledge 

and prosperity. 

47

Broadband Wireless 

The road to broadband wirelessAn industry overview 

by Majed Sifri, President and CEO, Redline Communications Inc. 

There is increasing need for high performance voice, data and video communications for 

e-learning, e-government, surveillance and other bandwidth-intensive services, beyond 

traditional voice and data. Broadband wireless equipment can provide data and voice 

backhaul for both mobile and fixed wireless networks and serve as a bridge between 

widely separated local area or Wi-Fi networks. It offers cost-effective bandwidth, coverage, 

quality of service (QoS) and security in areas where cost or access difficulties preclude 

traditional broadband deployment. 

Mr Majed Sifri is President and CEO of Redline Communications Inc., a technology leader in the development 

of standards-based broadband wireless access solutions. He has extensive experience in information 

technology and telecommunications, having founded and led several companies in these fields, 

including: CTI Datacom (Chair and CEO), an International communication network services firm; SIC 

partnership (Managing Partner), an investment management partnership; and Applications 

Technologies Inc. (Chair and President), a McLean Virginia natural language processing software corporation 

which was sold in 1998 to Lernout & Hauspie (L&H). Mr Sifri also founded and continues to 

serve on the board of Polymore Circuit Technologies, a Tennessee-based innovative circuit board manufacturing 

company. Mr Sifri also serves on the board of the Canadian Advanced Technology Alliance 

(CATA) and on the Wireless Communications Alliance (WCA). Mr Sifri holds an MBA degree in Finance 

from George Washington University and Juris Doctor (JD) degree from the Washington College of Law 

at American University. 

The communications industry has 

been in a constant state of flux over 

the past 20 years. As market conditions 

and technology evolve, there has 

been unprecedented interest in the 

adoption of broadband. The wireless 

market is poised for explosive growth. 

The growing momentum in broadband 

wireless is driven by factors 

ranging from economics and market 

conditions, to new technologies and 

standards development. 

Reliable and secure broadband wireless 

services create opportunities for 

enterprises to expand their existing 

telecom resources, improve interoffice 

communications, deliver connectivity 

to remote sites and build 

redundancy faster and at lower cost. 

The business case for 

broadband wireless 

Broadband wireless fills an important 

communications gap. While highspeed 

wireline services provide the 

bandwidth needed to transfer large 

files, the cost of expansion is high, 

installation complex and time consuming 

and the ability to connect to 

remote sites limited or in some cases, 

non-existent. 

Users must depend upon a limited 

number of service providers that have 

the infrastructure to provide the connectivity 

they need. 

In many cases, these service providers 

cannot connect networks over great 

distances since the investment in 

infrastructure would far outweigh the 

returns. 

Wireless has provided some relief, but 

at a price. Satellite and microwave 

services do provide connectivity to 

remote sites, but coverage can be 

erratic and equipment costs and airtime 

fees can be quite expensive. 

Wi-Fi, while effective within buildings, 

cannot cover long distances, nor 

does it offer the speed or security 

needed for mission critical applications. 

Broadband wireless, on the other 

hand, provides the bandwidth, coverage, 

quality of service (QoS) and security 

of leased line services. Wireless 

also provides greater flexibility, significantly 

lower costs and eliminates 

monthly leased line or airtime fees. In 

addition, it can be deployed rapidly, 

allowing businesses to compete more 

effectively through improved communications 

between sites. 

Rapid deployment combined with better 

performance bodes well for businesses 

in cellular, internetworking 

and voice over IP (VoIP) service adoption. 

In addition, the relatively low cost of 

equipment and the ability to cover 

great distances, opens the door for 

smaller, non-traditional service 

providers to provide connectivity to 

organisations at virtually any location. 

The evolving telecom 

industry 

Over the past 20 years, the telecom 

industry has gone through several 

stages. 

The early conversions from analogue 

to digital networks preceded a period 

in the late 1990s of unprecedented 

48

Vietnam Telecomp 2004 - Vietnam Electronics 2004 - Vietnam Telecomp 2004 - Vietnam Electronics 2004 

Vietnam Telecomp 2004 

Vietnam Electronics 2004 

The 10th International Exhibition in Vietnam on Telecommunications, IT and Posts and 

Exhibition on Electronics Products–known as ‘Vietnam Telecomp 2004’ / ‘Vietnam 

Electronics 2004’, Vietnam Exhibition & Fair Centre, Hanoi, SR Vietnam took place on 

November 9 and lasted for 5 days (November 9-13). 

The first edition of Vietnam Telecomp was staged in 

1992; recognised by public, local and foreign experts, 

it is the largest, most respected, specialised telecommunications 

exhibition in Vietnam. 

For its 10th anniversary, the organisers, Vietnam Posts 

and Telecommunications Corporation (VNPT) and 

Adsale Exhibition Services Ltd., arranged an exhibit 

highlighting the contributions of Vietnam Telecomp 

to the industry during the past ten editions as it 

coped with the fast-changing development of 

Vietnams telecom market. 

A 10th Event Gallery presented pictures highlighting 

the exhibits of the past ten years. A cultural performance 

was specially arranged before the opening ceremony. 

Two categories 

of award, namely Long 

Term Support Award 

and Best Presentation 

and Design Award, 

were presented to 

exhibitors for their contributions 

to the show. 

The Long Term Support 

Award is presented to 

exhibitors who have 

participated in Vietnam 

Telecomp for many 

years. The Best 

Presentation & Design 

Awardstwo gold, two 

silver and three 

bronzewas presented to companies with outstanding 

achievements in terms of their exhibits innovations, 

the technology involved, social value and booth 

design. The prizes were awarded in a ceremony at 

the opening banquet at the Hanoi Horizon Hotel. 

This year, for the first time, in recognition of the convergence 

of the information and communications 

technologies, the event was organised to reflect the 

future trends of ICT market. Vietnam Telecomp and 

Vietnam Electronics are held concurrently to present a 

full spectrum of cost-effective solutions, covering 

next-generation telecom networks, broadband technologies 

and cable services as well as electronic products. 

Highlights of Vietnam Telecomp 2004 included 

network equipment and technologies, satellite communications, 

broadband solutions, mobile communications, 

cables and the like. Vietnam Electronics 2004 

displayed computer, peripheral audio and visual 

Figure 1: Awards were presented to exhibitors for their contributions. 

products, home appliances, personal electronics, 

electronics accessories, multimedia / electronics gaming, 

office automation and equipment and security 

products. The wide range of exhibits, the 23 on-site 

forum sessions and exhibitors seminars helped visitors 

collect the latest information about the IT and 

Telecom markets. 

Occupying an exhibition area of 5,000sqm, Vietnam 

Telecomp 2004 / Vietnam Electronics 2004 attracted 

more than 100 exhibitors from over 16 countries 

and regions worldwide. Delegations from Lao, 

Cambodia and Myanmarwith government telecom 

and IT authoritiesvisited the show. It is estimated 

that the show, continuing to break its records, attracted 

more than 55,000 visitors. A comprehensive promotion 

campaign, with 

a special program about 

the shows, will be 

broadcasted together 

on VTV. 

Sponsored by Ministry 

of Posts and Telematics 

(MPT), Vietnam 

Telecomp 2004 / 

Vietnam Electronics 

2004 is organised by 

Vietnam Posts and 

Telecommunications 

Corporation (VNPT) and 

Adsale Exhibition 

Services Ltd and coorganised 

by Vietnam Exhibition & Fair Centre 

(VEFAC). The event is sponsored by 9 ministries and 

industries and many reputed businesses in the fields 

of IT, telecommunications and electronics. 

For enquiries, please contact 

Ms Angela Chan or Ms Vikki Yu 

Tel: (852) 2516 3334 / 2516 3513 

Fax: (852) 2516 5024 

E-mail: telecom@adsale.com.hk 

Adsale Group: 

www.adsale.com.hk 

Adsale Content Network: 

www.2456.com/vnc or www.2456.com/vne 

Promotional Feature


acceleration in investment 

in incremental 

upgrades to core networks. 

Since that time, 

enterprises have 

retrenched due to capital 

constraints; the focus is 

now on controlling costs 

and capital expense. 

wireless broadband. 

Today, wireless technology 

can deliver better 

performance than conventional 

broadband 

services, without the 

high deployment costs 

and installation complexities. 

This has dramatically 

changed the way networks 

are developed. 

Uncertain revenues and 

rates of return, combined 

with slashed capital 

programs, have led to 

incremental upgrades on an as needed 

basis. 

There has been a significant refocusing 

of effort on finding economical 

ways to expand networks, especially 

broadband and wireless. 

There is overwhelming evidence, for 

example, that wireless ISPs (Internet 

Service Providers) can generate profits 

with broadband wireless. Although 

the industry is still proceeding with 

caution, growth in broadband promises 

to set the stage for a new communications 

era and enterprises both large 

and small stand to benefit. 

Broadband adoption 

Broadband demand is significant and 

growing. As such, there is a tremendous 

worldwide need for cost-effective, 

easy to deploy, broadband wireless 

systems to help organisations 

address the last mile access challenge. 

The increasing need for high 

performance voice, data and video 

communications has fuelled the adoption 

of new broadband services. 

Broadband offers: 

ˆ Faster uploading/downloading of 

bandwidth-intensive applications 

including video; 

ˆ Always-on communication; 

ˆ Delivery of VoIP (voice over IP) 

services over general-purpose 

Internet backbones at far less cost 

than traditional telecom networks; 

ˆ Elimination of per-minute charges 

associated with traditional fixed and 

mobility PSTN (public switched telephone 

network) for VoIP services. 

Where does broadband stand today 

According to the ITU (International 

Telecommunications Union) in their 

Figure 1: The Indian government has announced a plan for expanded broadband coverage, 

targeting 10 million subscribers by 2010. Much of this will be serviced through 

broadband wireless. 

report Birth of Broadband (Source: 

Birth of Broadband—ITU 2003), of the 

over 580 million Internet users in the 

world, approximately 63 million are 

broadband subscribers. The current 

leaders in broadband penetration are: 

South Korea with 21 subscribers for 

every 100 inhabitants and Hong Kong 

15 per 100 subscribers. Penetration in 

Japan is eight per 100 inhabitants, 

placing it ahead of the United States 

(6.5 per 100) in the G7 nation rankings. 

Broadband coverage is low even in the 

business sector. Todays broadband 

access technologies have significant 

deficiencies and cannot cost effectively 

deliver broadband to large numbers 

of potential users. In the US, for 

example, 95 per cent of businesses do 

not have adequate fibre service. 

The key challenge faced by fixed 

broadband service is the limited area 

covereddue to cost and complexity 

of installationespecially over long 

distances or in remote areas. Analysts 

at TD Capital in New York report that 

only three per cent of business buildings 

worldwide have fibre. Still, 

broadband has compelling appeal. 

Installation issues aside, according to 

the ITU, broadband serviceswhen 

measured on a per bit basiscan be 

up to 111 times less expensive than traditional 

leased line services for business 

users. 

This cost savings is motivating governments 

at the local, state and 

national levels to consider such broadband 

applicationsbeyond traditional 

voice and data servicesas e-learning, 

e-government, surveillance and other 

bandwidth-intensive services. 

The emergence of broadband 

wireless 

Broadband is rapidly changing in 

response to the growing adoption of 

Potential applications 

span everything from 

commercial and industrial 

to military and 

healthcare. 

Broadband wireless is 

used in a number of ways to bridge the 

gap between existing networks and 

expand services to previously underserved 

regions: 

ˆ In rural regions the ease of installation 

and ability to cover long distances 

permits greater throughput at lower 

cost than DSL or cable; 

ˆ Todays broadband wireless equipment 

can provide data and voice backhaul 

(connection to the backbone network) 

for both mobile and fixed wireless 

networks and provide a bridge 

between widely separated local area or 

Wi-Fi networks; 

ˆ Broadband wireless has been highly 

effective in accelerating the adoption 

and expansion of cellular networks, 

especially in regions of Asia and 

Europe where the telecom infrastructure 

is limited or costly to maintain. 

Using broadband wireless to backhaul 

their signals, cellular service providers 

can leverage existing infrastructures 

to bring coverage to more people in 

more regions in a significantly shorter 

time period at a very affordable rate; 

ˆ The high security levels and high 

bandwidth makes broadband wireless 

an ideal choice for multiple local area 

networks over a geographical area; 

ˆ Deployments by financial and 

healthcare institutions throughout the 

Asia-Pacific region have allowed for 

fast and easy communications 

between sites, distance learning and 

other bandwidth-intensive applications; 

ˆ The rapid deployment capabilities 

of broadband wireless have made it a 

valuable resource for mobile and temporary 

deployments, such as emergency 

communications; 

ˆ The Huaihe River Water 

Commission in China, for example, 

used broadband wireless following the 

50


and standards, the industry is entering 

a new stage of development. Over the 

next few years, we can expect to see 

major progress in the delivery of 

broadband wireless services around 

the world. 

Figure 2: Sky Light Research sees 2005 as a significant year for broadband wireless, with 

Southeast Asia representing one of the highest growth markets. 

torrential rains of 2003 to provide 

communications during the disaster 

recovery period; 

ˆ Broadband wireless is a highly costeffective 

means to provide network 

redundancy and backup; 

ˆ Organisations are taking advantage 

of the bandwidth offered by broadband 

wireless for a wide range of 

voice, data and video applications that 

include distance learning, video-conferencing 

and broadcasting; 

ˆ Oil and gas exploration, military 

operations and other nomadic applications 

are using broadband wireless 

to provide highly secure, real-time 

communications within hours of relocating. 

Broadband wireless in Asia 

The broadband market is growing at a 

healthy pace in the Asia-Pacific 

region. Taiwan Wireless, for example, 

introduced a project to provide Wi-Fi 

service covering the entire area of 

Taipei City. Similar initiatives by wireless 

Internet service providers in 

Malaysia have taken place, but on a 

smaller scale. Similarly Unwired Pty 

launched a nomadic broadband wireless 

service in early 2004. 

As for enterprise and government, 

many are planning to establish their 

own wireless backhaul infrastructure. 

This has exerted considerable pressure 

on telecom operators who no 

longer can rely on regular leased circuits. 

Some operators are already 

planning to provide better integrated 

service packages to enterprise and 

government entities. 

Breakthroughs in broadband wireless 

Technological issues have held back 

broadband wireless in the past, but 

recent industry advances are now 

bringing it to the mainstream market. 

Wireless technologies today offer a 

number of enhancements that overcome 

the past difficulties. One such 

issue was the inability to provide clear 

and consistent signals in non-line-ofsight 

conditions, such as over uneven 

terrain or through trees. Channel 

interference was another problem. A 

lack of standards was another, so 

interoperability between systems and 

networks was difficult and costly. 

These issues have now been resolved 

and many more deployments can be 

made than were once thought possible. 

Also, new low-cost chipsets have 

caused a substantial drop in equipment 

costs. This has allowed more 

widespread distribution of laptops 

and handheld devices. The use of the 

new generation multimedia handheld 

devices is expected to grow rapidly in 

2006 to 2007. 

Another technological development 

that is having significant impact on 

the widespread adoption of broadband 

wireless is the availability of 

equipment that operates in unlicensed 

bands. This is allowing organisations 

that were unable to attainor afford 

licensing fees, to operate in these 

bands, without incurring exorbitant 

costs. 

While North America is well ahead of 

the world in license-exempt band 

applications, Asia-Pacific countries 

are rapidly gaining ground as governments 

and regulatory bodies are opening 

up access as a means to support 

broadband wireless adoption. 

Pilot projects in license-exempt bands 

have already been deployed or have 

been announced in China and India in 

recent months for Internet telephone 

cafs and hotspot access. 

A new era 

With the demand for broadband 

growing exponentially and the recent 

advancements in wireless technology 

As deployments grow, so will the 

scope of the applications. Since broadband 

allows for dramatically shorter 

download times for extremely large 

files, it is enabling a whole new class of 

content distribution, including twoway 

video feeds for mobile news delivery 

and security surveillance, sharing 

of medical images over distances, collaborative 

learning and in time, digital 

set top boxes for distribution of video 

on demand. 

Broadband wireless specifically will 

play a major role in bringing high-performance 

communications capabilities 

in areas where broadband was 

previously cost-prohibitive or difficult 

to deploy. 

The lower cost of deployment, 

increased mobility, portability, range 

and performance promise to make 

broadband wireless a significant part 

of the broadband landscape. 

We’re changing the face 

of our website! 



our website to make 

it even more user 

friendly, informative 


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on Connect-World’s 

website 



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51

Meet 

40 exhibitors! 

Platinum partners 

14 – 18 February 2005, Sandton Convention Centre, Johannesburg, South Africa 

SatCom Africa 2005 – the satellite industry’s meeting place 

This conference features insights and expert opinions from some of the world’s most knowledgeable 

satellite communication authorities. Engr. Ernest Ndukwe , Executive Vice Chairman, Nigerian 

Communication Commission will be discussing the deregulation in Nigeria and Dr Ekwow Spio- 

Garbrah, Chief Executive Officer of the Commonwealth Telecommunications Organisation, will discuss 

the critical trends and technologies in the global industry. You will also benefit from leading African 

case studies from Côte d’Ivoire, Kenya, Namibia, Nigeria, South Africa, Uganda and Zambia. 

Gold partners 

Silver partners 

Bronze partners 

Benefits of attending 

• Learn how satellite technology can extend your business opportunities 

• Meet the world’s finest minds in the international satellite communications industry 

• Develop ground breaking strategies by using the invaluable information from African case studies from around the continent 

• Improve the profitability and operational efficiencies of your enterprise by adopting VSAT technology 

• Utilise the knowledge gained from our exclusive conference and make comparative, informed decisions 

Who should attend 

• Presidents and Vice-Presidents • Directors • Communications Executives 

• CxOs (CEO, CTO, COO, CFO, CIO) • General Managers • Engineers 

• Telecommunication Executives 

• IT Executives 

From the following industries … 

• Satellite operators • Satellite suppliers • Satellite broadcasters 

• Internet Service Providers • Government • VSAT solution providers 

• Telecommunication companies • System integrators • Finance and Banking 

• Petroleum • Mining & Construction • Education 

• Healthcare • Retail • Defence 

• All other major satellite / VSAT end users 

Visit the exhibition and win! 

The three day exhibition is a great opportunity to discuss satellite solutions with the world’s leading suppliers and view their 

latest products. You will meet the who’s who of the entire satellite industry – satellite operators, service providers, hardware 

and software suppliers, builders, telecoms providers and more. 

Plus! PanAmSat are giving away a trip for two to the 2006 Winter Olympic Games in Torino, Italy! Other exciting 

mystery prizes will be given away daily. To enter the draws, all you need to do is visit the exhibition stands. 

Pre Register to visit the show and stand a chance to win one of three Platinum Conference Delegate Passes! 

This will allow you access to all three days of the conference and both masterclasses, plus the cocktail function, networking 

lunches and more! Each pass is valued at US$ 3,414! 

Hear all the important issues, meet all the right people at SatCom Africa 2005. Register today! Call Maggie Pienaar 

on +27 (0)11 463 6001 to secure your seat at the conference or pre-register to visit the exhibition. 

Luncheon partner 

Endorsed by 

Media partner 

Organised by 

REPLY FORM FAX BACK +27 (0)11 463-6903 

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I would like to know more about promoting my company at this event – please contact me 

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Mobile Data 

Mobile data adoption and over-the-air device management 

by Olivier Graëff, co-founder and co-CEO of Swapcom 

Mobile operators in developing countries are attempting to popularise data services. 

SMS, multimedia, games and such play a major role familiarising users with mobile data. 

Once accustomed to data, users are more likely to use more serious, useful applications. 

Nevertheless, the complexities and costs of serving these relatively unsophisticated users 

challenge operators. Device recognition software permits over-the-air troubleshooting, 

bug patching, service updates and service installation, reduce the costs, make usage simpler 

for the customer and promote usage of advanced services. 

Olivier Graff is a co-founder and co-CEO of Swapcom. After studying sociology and applied computer 

science in Lyon, Olivier gained experience in the IT sector working as New Technologies Project 

Manager for Prosodie, French IT and Telecoms facilitator. Mr Graff subsequently worked in the development 

and sales departments of Mediaprogrs, an IT company specialised in online Videotext services. 

Mr Graff was recently invited by French President Jacques Chirac to take part in an official delegation 

of French businesses on a presidential tour of Vietnam. When not at work, Olivier is actively involved 

in the electronic music scene and enjoys composing music. 

Mr Graff holds a bachelors degree in Sociology and Applied Computer Sciences. 

In the telecoms industry, new technologies 

are emerging all the time and 

so are marketing opportunities, along 

with the hitches, the bugs and the costcutting 

guidelines. 

When designing end-to-end mobile 

solutions, one must cast a wide net and 

draw on experience to gain an accurate 

vision not only of emerging opportunities, 

but also of emerging headaches 

within the mobile technology sphere. 

That means listening attentively to 

operator needs, weighing the constraints 

and opportunities linked to 

size and demography, then trying to 

respond in the most effective and efficient 

way. 

The challenges facing multimedia 

take-up in areas of low literacy, for 

instance, are certainly far from those 

facing operators in the western world 

where converging technologies are 

calling for more profiling, more 

remote CRM (Customer Relationship 

Management) and more transmission 

tools to ensure seamless data delivery. 

From the poorest regions in the world, 

to the most hi-tech, delivering mobile 

multimedia services in the most appropriate 

way is an important concern. 

The majority of mobile networks in 

developing countries are attempting to 

make their first GSM data services 

popular. In these regions, SMS is playing 

a major role in familiarising users 

with mobile data. 

In many areas of sub-Saharan Africa, 

Asia and the Pacific, the poor understanding 

of technology and the low 

level of literacy are major drawbacks in 

promoting data applications. 

However, strong interest in mobile 

phone culture is encouraging young 

subscribers to read and use digital 

information. 

Local mobile content providers are 

well aware of the constraints of cultural 

awareness. They are often astute in 

defining trends and starting fashion 

crazes. Even simple mobile messaging 

content, such as ringtones, is an exciting 

way for young people in regions 

new to mobile telephonywho have 

never had even landline telephones 

to communicate with each other. 

It is a means of drawing youth towards 

information technology. Music festivals 

and roadshows are a way of drawing 

young people to see demonstrations 

of mobile services. In Kenya for 

instance, young music fans have been 

enticed to use SMS services by the 

opportunity to download a preview of 

a music clip by a popular rap artist. 

These are the youths who will become 

the prescribers of mobile culture and 

who will teach peers and family how to 

use them. 

Another means of raising data awareness 

among these communities is by 

running SMS voting in connection 

with with television programmes. 

Unaccustomed viewers learn how to 

follow a logical sequence of commands 

from instructions displayed on the TV 

screen. By selecting the keys one, two, 

or three and scrolling to vote, they gain 

confidence in their ability to use modern 

IT tools. What SMS is actually 

doing is taking the fear of technology 

away by making it fun to use. 

Mobile entertainment is a first step 

towards modernising daily life. Some 

countries exploring mobile multimedia 

content development are choosing 

to provide more useful daily services 

over the mobile. A mobile information 

portal implemeted on a network can 

53

Mobile Data 

format information services from an 

external server. The formatted content 

is delivered to profiled mobiles when 

requested via a short number dial-up. 

SMS feedback can provide useful 

information about pharmacy opening 

hours in the district, train timetables 

or school enrolment procedures, to 

name but a few. 

There are enthusiastic reports from 

service providers in the poorest parts 

of the world regarding the peoples 

eagerness to learn how to use the keypad 

and scroll. 

What we really need now is a concerted 

effort to help mobile coverage reach 

the remotest corners of the world, so 

everyone has a chance to get digital 

with the most user-friendly applications 

possible. 

In terms of service delivery, information 

by text messaging is often the 

most reliable way of reaching the 

mobile user. In many countries where 

GSM penetration has developed faster 

than the infrastructure could keep up, 

network equipment is nearing saturation 

and calls often do not get through. 

SMS messaging not only ensures 

potential traffic throughput, but 

increases quality of service (QoS) and 

hence customer satisfaction. 

Talk to any operator in large mobile 

operators, from Sydney to London, 

about the key issues in technology rollout 

and the same words and same 

issues are invariably heard, even from 

the poised giants of 3G. Basically, the 

three issues decision makers around 

the world comment on are building the 

Average Revenue Per User (ARPU) 

from data services, improving customer 

satisfaction using Customer 

Relations Management (CRM) and 

reducing the Total Cost of Ownership 

(TCO) using streamlined CRM. 

The first two issues aim at raising, 

boosting, improving and enhancingyou 

name the verb with a fastforward 

feel to it; the TCO matter, 

though, usually puts a damper on 

ambitions and remains a spanner in 

the works as far as ensuring service 

satisfaction is concerned. 

It seems a tall order for an operator to 

cut customer care costs, while making 

sure that their valued customers are 

not getting seriously frustrated by yet 

another failed attempt to set up a multimedia 

or other advanced service. 

It would seem that the answer lies in 

being able to gather device and subscriber 

metrics automatically over the 

network and then use them to make 

life easier for the people that actually 

use them. 

Customer-care services related to configuration 

enquiries are often complex 

and time consuming. Asking a subscriber 

to navigate the many menus 

and keystrokes necessary to make a 

modification increases call-handling 

time and reduces subscriber satisfaction. 

It is vital to take over these devicerelated 

tasks and solve them before 

they even occur. To do this requires 

high-performance software tools with 

a database that recognises all the functions 

of every device on the market. By 

implementing automatic device discovery 

software on the server, there is 

no longer a need to rely upon a customers 

initiative to sort out his service 

requirements. 

With the appropriate systems, full 

information about the type of phone 

and the available settings, can be 

retrieved by the operators server. The 

server can then anticipate customer 

needs and invisibly cure device management 

headaches before the customer 

even perceives them. 

With the right software, we can now 

detect the specifications and capabilities 

of every single mobile device on 

the networkits manufacturer, its 

model and even the settings available 

on that particular model. 

The device detection technique is fairly 

revolutionary at the moment, but it 

has already been successfully implemented 

on the Wataniya Telecom network. 

No doubt, the use of such software 

will snowball, and will spread to 

networks worldwide, as operators 

realise the benefits of such capabilities. 

Device characteristics have many uses. 

Automatic device discovery, knowing 

what each device can do — what services 

can be implemented — is a valuable 

marketing tool; sales pitches and 

offers can be directed to the owners of 

devices that can take advantage of 

them. 

The appropriate software patches and 

updates can be sent over the air to 

enable new services, fix configuration 

problems, or at times provide security 

patches. 

An obvious CRM application is the 

automatic delivery of service settings. 

By adjusting device settings over the 

air, the customer can start using WAP, 

MMS or GPRS services. As a result, no 

time is lost delivering the new data 

service delivery and the quality of customer 

service is improved. Another 

key application is device diagnostics 

for troubleshooting; the ability to correct 

faulty devices with the minimum 

of hassle for the customer. 

Converging technologies pose new 

challenges in designing devices. We 

are now dealing with ever more complex 

device lifecycles, different operating 

system versions, conflicts between 

installed applications, frequent device 

changes and great amounts of personal 

data to be saved and restored. 

In the mad scramble to keep up with 

marketing opportunities, operators are 

commercialising devices that are barely 

off the test bed and, which more 

often that not, contain firmware bugs. 

The challenge facing mobile software 

architects is to design software tools 

that can troubleshoot problems and 

deliver corrective patches. To do this, 

the device management solution must 

include a comprehensive database of 

handset functions, constantly updated 

in line with commercial releases. 

All this takes resources and strategic 

integration of device criteria into the 

device management tool. However, 

the rewards for an operator who can 

effectively manage all customer-base 

devices remotely can be considerable. 

Automating customer care is critical 

for profitable mobile data marketing; 

effective device management will be 

the foundation upon which most 

future service provisioning, bug troubleshooting 

and CRM will be well 

administered. 

Ultimately, the aim is to ensure seamless 

multimedia access to the entire 

operator customer base and provide 

effective customer-care and self-care 

tools. 

Such systems should lead rapidly to a 

considerable reduction of TCO. Device 

management software, by anticipating 

customer needs, or by correcting problems 

over the air, should substantially 

reduce calls to customer care services. 

Such calls cost an estimated industry 

average of $5.50 each, so huge savings 

can be realised in device management 

related queries. 

In a nutshell, from a mobile operator 

perspective, device management is 

certainly not to be over looked. 

Operators, by quickly and easily 

updating end-user phones, can build 

customer loyalty and gain a competitive 

edge. 

54

Mobile Data 

New technology, new users, new possibilities in China 

by Charles Henshaw, Executive Director and Chief Executive Officer, China Resources Peoples Telephone Company Limited 

China, the worlds largest cellular area still has low market penetration. Hong Kong has 

one of the worlds highest penetration rates. In both, voice drives mobile usage, but data 

services are proliferating. In China, the Internet is not yet widely used; mobile handsets 

substitute PCs for e-mail and text; SMS bridges between wireless and wired Internet. 

Mobile growth in Hong Kong depends upon applications and content availability. 

Growth in mobile data is limited while China awaits governmental regulation of 3G. 

Charles Henshaw is the Executive Director and Chief Executive Officer of China Resources Peoples 

Telephone Co. Ltd. Mr Henshaw joined China Resources Peoples Telephone Co. Ltd. as Chief Technology 

Officer in September 1998. Mr Henshaw was responsible for the strategy and implementation of new 

technologies within the Company, focusing on enhancements of mobile services into messaging, transaction 

and multimedia services. 

Previously, Mr Henshaw worked with Ericsson in a variety of telecommunications management capacities 

in different countries. He was the General Manager of the Fixed and Cellular Networks of Ericsson 

in Hong Kong before leaving for China Resources Peoples Telephone Co. Ltd. Mr Henshaw also sat on 

the committee of the Hong Kong Telecommunications Association from 1997 to 1998 and advised on 

issues within the HK mobile telephone market. 

High-speed wireless data, a 

foundation for growth 

We are becoming accustomed to seeing 

the global subscription numbers 

for mobile data services soar as new 

applications drive traffic upwards. 

High-speed networks based on 

advanced technologies such as EDGE, 

UMTS, CDMA 1X and WCDMA will 

grow steadily during the next few 

years. 

Although voice continues to drive 

mobile network usage, data services 

are proliferating rapidly. The outlook 

for data services stimulates the mobile 

carriers with its promise of future 

growth. 

IT convergence will play an important 

role in the development of data technologies 

and markets. 

Standardisation of IP-enabled voice, 

data and video on next generation networks 

will bring a wide range of innovative 

multimedia services and generate 

new revenue streams for the 

mobile carriers. 

The future looks good for mobile carriers 

that embrace the new database 

technologies. However, to realise the 

markets potential, service providers 

need to work closely with handset vendors 

and content developers, to create 

appealing products and services that 

meet customers needs. 

Technology has to be converted into 

innovative, compelling, content and 

applications. 

User experience determines 

success 

Insight into prices that customers are 

willing to pay for data services, the use 

that will be made of them, the driving 

applications and the types of devices 

users want, is essential so that mobile 

carriers, content and application 

developers and handset makers can 

guide themselves. Though a wide 

variety of intelligent devices with large 

colour displays can be expected, it is 

not so much technology as price, usefulness 

and usability that will determine 

the shape of the market to come. 

Users are willing to pay for new data 

services, but only at fairly lowaffordableprices. 

Users are open to new 

technologies, and can absorb new features 

so attractive prices and suitable 

customer education should result in 

rapid adoption. 

In view of the intense competition, 

customers satisfactions with service 

quality and customer care are crucial 

to building market share. Users tend 

to be uncompromising with regard to 

service qualityto signal reception, 

voice quality, dropped calls, customer 

care, technical support, user guidance 

and billing issues. 

Wireless data in China 

All of this is true in China, the largest 

cellular market in the world. China 

had 320 million subscribers at the end 

55

Mobile Data 

“Technology has to be 

converted into innovative, 

compelling, content 

and applications.” 

of October 2004 and an average of 5.5 

million new users signing up each 

month. China, with its enormous population, 

continues to lead the world in 

overall subscriber growth and has the 

highest potential for future growth in 

the world. 

Over the last decade, the China mobile 

market has gradually migrated into 

the digital era. SMS-based applications 

dominate growth9.8 billion 

short messages (SMS) were sent during 

the Chinese New Year, in January 

2004, alone. At RMB 0.1 per SMS 

(approximately 850 Renminbi = US$ 

1.00), RMB980 million in revenue per 

year has been generated over eight 

years. 

According to market researchers, e- 

mail is the most used mobile data 

service. Subscribers tend to use their 

handsets, as a substitute for the PC, to 

send and receive e-mail and text messages. 

In this way, the simple yet useful 

SMS acts as a bridge between the 

wireless Internet and the wireline 

Internet. 

Wireless subscriber growth is experiencing 

robust expansion in China. 

The availability of high-speed data 

networks such as CDMA2000, 

WCDMA, EDGE and the development 

of the homegrown TD-SCDMA, will 

give operators improved network efficiency, 

higher capacity and the ability 

to offer high-speed data services. 

Some analysts estimated that wireless 

data services in China will swell to 

US$5.68 billion and the number of 

users will reach 112.5 

million by the end of 

2005. 

The wireless system 

plays a significant role 

in China where the 

Internet has not been 

widely popular. It also 

provides open system 

content providers with 

an effective, attractive, 

business model. 

Availability of large 

amounts of content 

makes data communications 

attractive to 

subscribers and in 

return, subscriber 

demand stimulates 

content providers to develop and supply 

a wider variety of content. 

This cycle generates positive prospects 

for Chinas data market growth. The 

growth of Chinas mobile data market, 

though, will also depend upon the 

widespread availability of suitable 

equipment at affordable prices. 

The implementation of EDGE technology 

can be expected to play a significant 

role in the migration of users 

from voice-only communications to a 

more complex mixture of voice, wireless 

data, and multimedia services. 

Operators in China hope that positive 

user experience with the current 2.5G 

(generation 2.5) services will translate 

into the rapid adoption of 2.75G and 

later 3G services. 

However, 3Gs situation in China 

remains unclear, since the government 

has not yet decided what type 

licences to issue, how many to issue-- 

and when. 

The relatively conservative Chinese 

wireless operators would prefer to 

pace infrastructure rollout to accompany 

the resolution of regulatory 

requirements and technical issues and 

as well, the availability of attractive, 

affordable, handsets and relevant content. 

Since many 3G features are not 

yet in demand, it is likely to take several 

years before 3G reaches high 

growth levels. 

Hong Kong and China—the 

indispensable relationship 

Figure 1: E-mail is the most used mobile data service in China. 

Hong Kong, the natural gateway to 

mainland China for more than a century 

and the Asias telecom hub, has a 

vibrant mobile market. Although 

Hong Kongs economy is small, six 

operators, with twelve mobile networks, 

provide nearly ubiquitous coverage 

within the territory. The penetration 

rates are very high so there is a 

large base of tech-savvy customers 

prepared for new technologies. 

However, the high penetration also 

signals limited room for development 

in voice service. The growth potential 

of data services therefore gives operators 

a way forward to grow revenues. 

Although Hong Kongs wireless data 

usage is still only at an early stage of 

growth, 2.5G users grew from 

730,000 at the start of 2004 to over 

1.2 million by the end of September 

2004. This was driven by the increasing 

use of wireless both by corporate 

and individual users. 

“China, with its enormous 

population, continues 

to lead the world 

in overall subscriber 

growth and has the 

highest potential for 

future growth in the 

world.” 

The wide variety of devices, improved 

device functionality and variety and 

customer education all played key 

roles in the wider acceptance of 2.5 G 

by users. 

Hong Kongs customers, although 

very price conscious, are receptive to 

innovations in design and content. 

They are also knowledgeable and 

demand high quality service. They 

will not use a service twice that does 

not meet their expectations. 

Furthermore, they tend to invest in 

new services only when 

they see a tangible benefit, 

so making things in Hong 

Kong work technically and 

commercially has always 

been a challenge for equipment 

vendors and operators 

alike. 

Content and applications 

are important for the 

growth of mobile data in 

Hong Kong. 

Only by delivering innovations 

that cater to the users 

interest and needs have 

service providers, handset 

vendors and content suppliers 

been able to make Hong 

56

Mobile Data 

“The wireless system 

plays a significant role 

in China where the 

Internet has not been 

widely popular.” 

Kong a world leader in telecom and 

mobile communications. One sees 

everywhere a host of sophisticated 

handset functions for videos, games, 

push emails and many more, all working 

smoothly on the citys high-speed 

wireless networks. 

Hong Kongs government plays an 

important role in the exploitation of 

mobile technologies by maintaining a 

favourable environment for continuous 

investment and fair competition. 

The governments technology-neutral 

and open access policies help promote 

the development of mobile networks 

by third-party content and application 

providers all over the world. 

Hong Kong is well positioned to customise 

content and services for local 

Chinese and other Asian market conditions 

and requirements. 

Customisation of content commonly 

involves not only basic design, but also 

language, metrics and local cultural 

flavors as well. Its world-class telecom 

infrastructure attracts overseas companies 

to establish their regional 

offices and headquarters in Hong 

Kong where they can also more easily 

capitalise upon the business potential 

of the emerging China market. 

Chinas WTO commitments have 

tended to open its mobile and Internet 

platform content, applications and 

service markets to foreign investment. 

Hong Kong, equipped with the necessary 

infrastructure, serves as a springboard, 

which overseas companies can 

exploit to penetrate the worlds largest 

and fastest growing telecom market. 

For the territory itself, the CEPA 

(Closer Economic Partnership 

Arrangement) facilitates closer cooperation 

with its mainland China counterparts 

and provides easier access for 

local operators to capitalise upon 

Chinas immense telecoms VAS 

(value-added service) sector. 

Opportunities and challenges 

ahead 

Data services will provide operators 

with the opportunity to diversify their 

revenue streams. In Hong Kong, with 

its over-saturated market penetration 

and the leveling off of voice revenue, 

operators count upon data, video and 

multimedia applications to sufficiently 

increase their ARPU (Average 

Revenue Per Customer) to justify 

investments in high-speed infrastructure. 

Network and application developers 

are tackling interoperability issues for 

both infrastructure and terminal 

equipment, building a community of 

users for their products, minimising 

development time and time-to-market 

and making sure their applications 

work within the available bandwidth. 

Dealing with the processing constraints 

of wireless devices and networks 

are among their top priorities. 

Applications will have to be tailored to 

meet the requirements of each individual 

market banks and financial 

institutions, for example, require 

standards and services that meet the 

specific needs of their regulated and 

demanding user community. 

The relationship between China and 

Hong Kong is becoming more intimate 

as a result of the WTO and CEPA 

agreements; the closer ties between 

them promises many mutual benefits 

including, importantly, for their 

respective telecom sectors. 


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Figure 2: It is likely to take several years before 3G reaches 

high growth levels. 

57

Location-Based Systems 

Locating everythingElectronic trackers 

by Chris Wade, Chief Executive Officer, CPS–Cambridge Positioning Systems Ltd 

New, highly accurate technology lets mobile operators accurately track users, even in 

crowded city centres and indoors. Device manufacturers and solution providers are now 

integrating standardised, high accuracy location technology into their phones, PDAs and 

other devices. The uses of this technology range from parental child tracking to fleet and 

workforce management. As both the cost and size of tracking devices drop, they will be 

increasingly used in laptops, cash boxes and other valuable assets to track their whereabouts. 

Chris Wade is the Chief Executive Officer of Cambridge Positioning Systems Ltd. — CPS. Chris Wade 

joined CPSthen, a start-up venture capital funded companyand transformed it into a global leader 

in high accuracy mobile location technology. Before joining CPS, Chris was European Managing 

Director for network infrastructure supplier DSC Communications. Previously, he worked for Nortel, 

holding a number of senior positions in Norway, Turkey and the USA. Chris also acts as a telecommunications 

consultant and non-executive director to a number of leading venture capital companies. 

Picture the scene: a busy downtown 

in a major Chinese city. Couriers carrying 

important documentation are 

making their way between banking 

offices. Vehicles are delivering goods 

to a chain of stores. A businessman 

arriving at the railway station tries to 

find both a hotel and cash machine. 

A mother lets her child out to play 

with a warning not to leave the local 

area. 

All are seemingly unconnected 

events, but in the wireless world, 

there is now a common thread. 

Whether it is for the enterprise or the 

consumer, the ability to precisely and 

rapidly locate assets and peoplefor 

improved business efficiency, personal 

safety and securityis now a 

reality. 

Compelling new applications are now 

emerging which ensure companies 

can monitor safe delivery of assets or 

the arrival of their people at their destination. 

Turning to a mobile device allows 

individuals to place themselves and 

the services they want, using a variety 

of devices. Families can monitor 

their childrens whereabouts and 

even set virtual limits on where they 

can play from the handset or PC. 

Location is a logical, intuitive extension 

to the mobile experience and one 

that operators are now exploring and 

exploiting as a platform for new compelling 

services. 

So why should be this be the case 

After all, as sceptics point out, location-based 

services have been hyped 

for years without delivering on their 

promise. However, new drivers have 

emerged to ensure location is now 

very firmly on the map. 

First, new location technologies are 

now available which, for the first 

time, combine high accuracy, low cost 

and all-environment coverage 

seamless solutions that are easy to 

deploy at the network and device 

level. In short, they deliver what 

users expectfast, accurate locations 

where people want services to work, 

like city centres and indoors. 

As analysts, Frost and Sullivan confirm: 

"Ultimately, increased adoption 

of location-based services is expected 

to hinge on the availability of low 

cost, reliable solutions, which can be 

speedily implemented and can leverage 

existing network assets" 

(Location-Based Services Report, 

May 2004). 

Secondly, operators seeking new revenue 

opportunities but facing 

increasing competition are looking 

for new ways of capturing and retaining 

customers with innovative new 

services. 

The potential for low cost, higher 

accuracy location and user profile 

data to effectively filter out irrelevant 

content provides a far more personalised 

customer experience and offers 

considerable potential when coupled 

with a broad range of services. 

Critically, enterprises are now turning 

to location technologies as a 

means of managing their workforces 

or vehicle fleets more effectively. 

The increased need for staff and asset 

security also drives adoption. Where 

enterprises were previously turnedoff 

by the performance and usefulness 

of low accuracy technologies, the 

58

Location-Based Systems 

availability of highly accurate solutions 

creates new business models 

where efficiency gains far outweigh 

the cost of deployment. In turn, this 

new demand feeds into operators 

who are keen to retain and attract 

new corporate customers. 

In fact, a kind of tracking mania has 

developed in the enterprise. This is 

driven by the use of very small, low 

cost, GSM modems to track large 

number of objects. 

The size and cost of these devices 

make it feasible to put them in the 

collars of dogs and cats, embed them 

into laptop computers, or integrate 

them into cash boxes. Tracking 

device can now protect these valuable 

assets and locate them accurately and 

quickly, anywhere. 

Thirdly, the major network device 

manufacturers and solution 

providers are now integrating standardised 

high accuracy location technology 

into their offerings. This critical 

element in the equation, the support 

of global vendors, underpins the 

ability of operators worldwide to 

bring location-enabled services to 

market. 

The widespread availability of location 

software enabled devicesfrom 

handsets and PDAs through to credit 

card sized modulesis also providing 

a catalyst for service take-up. 

Finally, the location-based applications 

industry has matured and 

developed. Through trials and service 

deployments, a clearer focus has 

developed as to the kinds of services 

that people will use and pay for. 

Indeed, these applications are now 

becoming a key feature of wireless 

portalsnot as a standalone service 

but as an enabler for a whole host of 

services, including mobile mapping, 

find my nearest and friend finder 

services. 

Let us explore some of these applications 

and how they influ 

ence people and the communities in 

which we live and work: 

“Compelling new applications 

are now emerging 

which ensure companies 

can monitor safe 

delivery of assets or the 

arrival of their people at 

their destination.” 

Child safety 

Whether it is tracking children when 

they are missingor for peace of 

mindthe ability to locate loved ones 

is already proving one of the most 

popular location services; the great 

number children and teenagers with 

handsets and the availability of location-enabled 

watches or medallions, 

underlines the enormous potential in 

this market 

Personal safety 

Discreet credit-card sized location 

devices are now available which can 

be placed in bags, lunchboxes or even 

hidden in cars to ensure people are 

reaching their chosen destination; 

one of the emerging trends is pet 

trackingagain utilising small 

devices to prevent animal theft or 

loss; 

Asset tracking 

Already well established in the telematics 

field, the advent of new software-based 

location solutions is making 

it easier for corporate users that 

want to track valuable assets; increasingly 

it is not so much the asset itself, 

but, the information that the asset 

contains, such as in a laptop, which is 

of critical value and importance. 

There are other factors at play outside 

the technology community. 

Government-directed initiatives to 

provide country wide emergency 

caller location, within set accuracy 

limits, is an important recognition of 

the role wireless technologies can 

play in improving community and 

personal safety. 

While these are welcome initiatives, if 

location is to become a ubiquitous 

element of the mobile experience, it is 

critical that both the technology and 

the applications be completely 

aligned with commercial and business 

user needs. 

Innovation thrives in competitive 

environments and the rapid growth 

in the development and deployment 

of new applications is firm evidence 

of this fact. 

In-depth research underlines this. A 

recently completed series of workshops 

with leading operatorsmany 

from the Asia Pacific region 

explored and endeavoured to understand, 

current and future locationbased 

service strategies. Collectively, 

the operators served over 30 per cent 

The lone worker 

Health workers visiting homes in 

dangerous areas, security staff on 

patrol or delivery and despatch drivers 

delivering high value goodsall 

people who would want protection; 

equipping them simple devices with 

panic buttons or location-enabled 

standard handsets would be an obvious 

choice; 

Figure 1: Location is a logical, intuitive extension to the mobile experience. 

59

Location Based Systems 

Figure 1: Powerful new applications have been deployed recently in 

the Asia-Pacific region. 

of the global GSM subscriber market, 

in both established and emerging 

markets. 

The main findings were: 

ˆ Demand for high accuracy solutions 

is growing as operators seek to 

differentiate their service offerings in 

saturating markets. 

With operators planning to deploy 

new high accuracy location technologies, 

new market entrants are looking 

to high accuracy location-based services 

as an immediate marketing 

advantage in the fight for customers; 

ˆ Although high accuracy location 

solutions will be the catalyst for location-based 

services, deployment costs 

must be extremely cost-effective; 

ˆ Existing low accuracy Cell-ID 

based services have proved disappointing 

in terms of application innovation 

and consumer take-up; 

ˆ Corporate vehicle, fleet and workforce 

management will help drive 

early usage of high accuracy services 

in the corporate market; 

ˆ The major consumer market driver 

will be information services, with 

rapid growth predicted for personal 

and child safety services. 

Since this research took place, the 

market has moved forward, underlining 

the rapid pace at which location 

based services are moving into the 

mainstream of operator service 

deployments. 

“The increased bandwidth 

of WCDMA promises 

even higher accuracy 

levels and new opportunities 

for applications 

developers to exploit.” 

Powerful new applications 

have been deployed 

recently in the Asia 

Pacific region, highlighting 

the willingness of 

operators to launch new 

location-enabled services 

for the enterprise market. 

In China, a cooperative 

approach between operators, 

value added service 

providers and solution 

providers is a perfect 

example of this progress. 

Within months of successful 

technology trials 

in a mix of dense urban, suburban 

and rural environments a new generation 

of high accuracy location-based 

services will be launched for the 

enterprise market in early 2005. 

Vehicle, personnel and asset tracking 

will be the initial services offered, but 

it should not be long before we see 

consumer services available from 

every handset. 

The scene described in the opening 

paragraph of this article is becoming 

a reality. Location is rapidly emerging, 

not just as a standalone service, 

but to enable widely accepted everyday 

applications. 

These lessons will soon be used in 

new WCDMA, broadband mobile systems; 

location is expected to be one of 

the fundamental drivers for service 

take-up. 

The increased bandwidth of WCDMA 

promises even higher accuracy levels 

and new opportunities for applications 

developers to exploit. 

Location is moving into the mainstream. 

It is one of the best examples 

of an emerging technology in the 

wireless world today. Operators are 

making it a key part of their service 

portfolio, major global solution 

providers are integrating the technology, 

new devices and exciting and 

innovative location-based services 

are gaining traction. 

Not that long ago, location-based 

services were both hype and hope. 

Today, we can see they are very much 

a reality. 



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60

Billing 

Real-time billing makes its mark in emerging markets 

by Yossi Shabat, Comverse, Division Vice President, Asia Pacific 

The Asia-Pacific region makes use of real-time billing that lets operators handle credit 

and debit-based usage for their entire customer base. By reducing subscriber bad debt 

risk, real-time billing, lowers costs and assures revenues. Real-time service authorisation, 

monitoring, tariffing, charging and account updating are basic functions, which 

make prepaid systems possible. Consequently, they make possible most of the mobile 

services in the developing regions of the world. Real-time billing lets emerging markets 

enjoy the same services available in developed markets. 

Mr Shabat is Comverse Division Vice President for the Asia-Pacific region. Mr Shabat has worked for 

over 10 years leading business efforts in Greater China, Australia, South East Asia and India. Currently, 

Mr Shabat is the Vice President of Indo-China, managing seven offices in the region and an extensive 

R&D Centre in ShenZhen. 

Previously, Mr Shabat worked for such innovative technology companies as Apple Computers, Orbotech 

and Applied Material. 

Mr Shabat holds an MBA from the University of Tel-Aviv. 

Billing, spearheaded by the arrival of 

real-time billing systems, is now a 

dynamic force with strategic implications 

and major repercussions for 

operators worldwide. For one, it 

drives profitability by creating new 

revenue opportunities and cutting 

costs. At the same time, it intensifies 

an already highly competitive environment 

by enabling operators to offer a 

basket of advanced data services to 

target markets. Operators and subscribers 

in emerging markets, including 

those in the Asia-Pacific region, 

are among those enjoying the powerful 

benefits of real-time billing. 

New revenue opportunities 

The development of next-generation 

billing can be attributed to several factors. 

In the current age of instant gratification, 

subscribers are attracted to 

the availability of new data services 

that offer instant information, instant 

entertainment, instant communication 

and instant purchases. To complete 

the circle, however, subscribers 

need to know instantaneously the status 

of their account and the cost of 

such servicesfeatures that real-time 

billing provides. 

Second, promotions and discounts are 

becoming increasingly popular tools 

for stimulating additional mobile 

usage, particularly in the prepaid 

world. However, this can be accomplished 

only if the billing system is 

dynamic, flexible and able to react 

without delay. 

Third, operators can seize the opportunity 

of impulse buying, which is critically 

dependent on prompt action. 

For example, if subscribers purchase a 

musical ringtone of a specific artist, 

there is a good chance they might buy 

a music video from that same artist, 

particularly if they receive a brief trailer 

or are offered a discount immediately. 

The potential for additional revenues 

is substantial if operators can 

seize the moment via real-time 

billing systems. 

Cost-cutting tool 

With operators looking to lower the 

risk of bad debt among subscribers, 

real-time billing is a godsend. Banks 

have long recognised the need for realtime 

purchase authorisation and 

charging to a credit card account. 

Now, mobile providers can for the first 

time operate based on managed risk 

principles rather than on trust. 

With revenue leakage proving to be 

more damaging than ever, real-time 

billing can reduce the extent of losses, 

since circuitous CDR (Call Detail 

Recording)-based processes can be 

replaced by real-time equivalents. 

With real-time billing, operators can 

handle credit and debit usage-based 

billing for their entire customer base, 

leading to lower costs and assured revenues. 

A paradigm shift 

Real-time billing is no longer a dream. 

In fact, it already serves as the foundation 

of prepaid billing, which in many 

markets worldwide represents the 

dominant payment method. 

Real-time service authorisation and 

monitoring, tariffing and charging and 

account updating are basic functions 

in most prepaid systems. 

However, few companies have adapted 

prepaid systems to address their 

non-prepaid market and even fewer 

61

Billing 

are prepared organisationally to introduce 

real-time billing principles into 

their mainstream markets. Therefore, 

for most operators, moving to a convergedprepaid 

and postpaidbilling 

infrastructure is a huge paradigm 

shift. However, the payoff makes such 

a change worthwhile. 

Open door to data services 

Real-time billing is highly flexible, 

allowing tariff plans to be changed 

dynamically, offering creative valuebased 

methods of billing for new data 

services and enabling easy support of 

the multitude of emerging new content 

providers. Capitalising on such 

flexibility, operators, for example, now 

can charge for services based on their 

perceived value. 

With a range of data services such as 

video and multimedia messaging service 

(MMS) in place, the complexity of 

subscriber packages increases, as does 

the importance of real-time billing in 

the network. 

In order to fully realise the revenue 

potential of these new services, it is 

essential to leverage real-time billing 

for all voice and data transactions, the 

authorisation of every service request, 

the imposing of a credit limit on all 

accounts and instant availability of 

usage information. 

Affordable option for all 

Real-time billing is not only about new 

service availability, but also about 

affordability. With advanced billing 

systems, new services are an affordable 

alternative for both operators and 

subscribers. As mentioned earlier, 

real-time billing limits operator credit 

risk, which, in turn, reduces overall 

service cost. At the same time, subscribers 

can access new services without 

exceeding a predetermined budget. 

Moreover, with real-time billing, 

subscribers pay only for the content 

and services they actually want, rather 

than paying for a high-priced content 

package of which, they are not likely to 

take full advantage. 

For the enterprise, the cost benefits 

can be even greater. With real-time 

billing, mobile phones issued by companies 

to their employees can, in fact, 

operate via two accounts business 

and personal. As a result, employees 

can access their business account for 

the full range of data services that can 

improve business communications 

and ultimately lead to more productivity 

and success. At the same time, they 

can access their personal account with 

the same mobile phone, while the 

employer does not pick up the tab. 

Boon for emerging markets 

Real-time billings impact can be felt 

in all corners of the globe, particularly 

in emerging markets. Given the 

opportunity to introduce easily the 

most advanced services, emerging 

markets no longer lag behind the rest 

of the pack, but instead have leaped 

forward to reach a level on par with 

the developed world. 

With real-time billing, all operators 

whether in emerging, developed or 

advanced marketscan offer an 

extensive portfolio of advanced voice 

and data services to their entire subscriber 

base. As a result, all services 

for all subscribers is no longer a pipe 

dream but a reality for all providers. 

If there was concern that investing in a 

state-of-the-art real-time billing system 

would deter new operators, particularly 

in emerging markets, the 

opposite has proved true. Real-time 

billing is ideally suited for green-field 

deployments, since such implementation 

does not require any integration 

or adaptation, unlike instances where 

legacy systems already exist. 

Real-time billing has put emerging 

markets on the map. One area that has 

benefited is Asia Pacific, which is ideally 

suited for these next-generation 

systems due to the popularity of prepaid 

services there. Most mobile subscribers 

in many parts of the region 

are prepaid, sometimes reaching up to 

95 per cent of an operators entire customer 

base. 

With the prepaid market growing rapidly 

in the region, real-time billing systems, 

which are most suited for supporting 

this growth, are likely to 

become an even more integral part of 

the industry. 

The adoption of new billing systems 

has, in fact, enabled nations such as 

Indonesia, India and Malaysia to gain 

a foothold at the forefront of the 

mobile phone world. 

Also in Indonesia 

Take, for example, the new 

Indonesian operator Mobile-8 

Telecom. As a newcomer in a fiercely 

competitive field, Mobile-8 required a 

secure real-time service offering for 

integrated control and support of both 

its prepaid and postpaid subscriber 

operations. As a result, the company 

recently deployed a real-time billing 

system to address all voice and data 

billing needs. 

The end-to-end solution supports 

billing for prepaid and postpaid subscribers, 

voice and data services and 

customer relationship management 

(CRM), while enabling the authorisation 

of all subscribers service requests 

in real-time. 

The real-time billing system allows 

Mobile-8 to concentrate on its core 

business — providing top-quality services 

to subscribers — regardless of the 

payment system. By implementing a 

state-of-the-art system, together with 

fully integrated customer care software, 

Mobile-8 is well positioned as a 

new player in the Indonesian mobile 

telephony market. 

Enhance personalisation, 

reduce churn 

Real-time billing also can play a role in 

tackling one of the industrys most 

burning issues — churn. One way to 

address the problem is by reducing 

acquisition costs — but this is much 

like treating a symptom. Service personalisation 

is a better solution, since 

it vaccinates against the disease in the 

first place. 

As creatures of habit, the more comfortable 

we feel, the less likely we are 

to contemplate change. Service personalisation, 

which is enabled by realtime 

billing, has the potential to 

become a highly effective way to fight 

the problem of churn by making subscribers 

feel more comfortable. 

When subscribers can select their tariff 

plan, choose preferred locations for 

discounted calls and transfer credit 

between accounts, they are less likely 

to switch operators due to the hassle 

of having to completely redefine their 

mobile environment. They are even 

less likely to churn if the same personalisation 

options are unavailable elsewhere. 

A different world 

The new and improved billing systems 

of today are clearly making their mark 

on the mobile phone industry. 

Facilitating instant availability of 

information, dynamic and interactive 

marketing programmes, creative 

value-based pricing schemes and convenient 

service personalisation for 

each and every end user are just some 

of the ways that life in a world with 

real-time billing is different for operators. 

At the same time, real-time 

billing blurs the lines between emerging 

and developed markets, affording 

unprecedented equal opportunities to 

all operators and subscribers worldwide. 

 

62

Last Words 

Dear Reader, 

The Internet has had a profound impact upon the worlds economy. It has made it possible to live in Rio de Janeiro and 

work in London. It has brought information and diversion to homes and multiplied the efficiency of business. The selfsame 

Internet, VoIPVoice over Internet Protocolis now, steadily but surely, overtaking traditional voice communications. 

In the process, it is profoundly changing the communications sector, the technology it uses, the services it provides 

and its entire economic structure. A call to any point on the globe will soon cost no more than a call to a next-door neighbour. 

Operating companies throughout the world, faced with competitors such as Skype and Vonnage that offer very low cost, or 

even free calling, have to re-think their strategies for survival. Service providers of all sorts and makers of both wired and 

wireless equipment for networks and terminals have to revise decades of thinking and planning to accommodate the 

change. The impact upon users throughout the world and especially in developing regions where telecommunications were 

never affordable, cannot be estimated. 

The next issue of Connect-World Asia-Pacific will examine this latest Internet invasion. We will look at what it means to 

Asia Pacifics people, businesses, service providers and equipment suppliers and how both governments and companies 

need to plan for the change. 

The theme for the next issue of Connect-World Asia-Pacific will be IPIntelligent Positioning for Growth. It will explore 

what can be done to maximise the benefits and minimise the pain of the critical migration of telecommunications services 

to Internet Protocol, IP- based, communications. 

Fredric J Morris, 

Editor-in-Chief 

Advertisers 

Company 

Page 

Company 

Page 

IPM Group 

Veraz Networks 

Amdocs 

RFS 

PTC 

Convergence India 

IFC 

5 

9 

10 

23 

32 

GSM India 

Carriers World 

SatCom Africa 2005 

Teleglobe 

Ericsson 

41 

45 

52 

IBC 

OBC 

If you would like further information, or to contact any of the above advertisers, please send a fax to +44 20 7474 0090, or e-mail at: info@connect-world.com 

quoting the the companys name. 

Editor-in-Chief: Fredric J. Morris, fredric.morris@connect-world.com; Publisher: David Nunes, david.nunes@connect-world.com; Managing 

Director: Valetta Brown, admin@connect-world; Head of Production: Cristina Dols, cristina.dols@connect-world.com; Head of Sales: Ahsan 

Zaman, azaman@connect-world.com; Sales Executives: Prashant Jain, prashant.jain@connect-world.com, Wayne Power, wayne.power@connect-world.com; 

Web Master: Marri Sehkar, marri.sehkar@connect-world.com; Head of Administration: Trinidad Sadia, trinidad.sadia@connect-world.com; 

Editorial Manager: Christina George, christina.george@connect-world.com; Administration Assistant: Farida Begum, farida.begum@connect-world.com; 

Online Conversion: World InfoComms Ltd; Proof Reader: Bernard Simon; Printers: Print House of India 

All rights reserved. No part of this publication may be reproduced, stored in a retrieved system or transmitted in any form or by any means electronics, mechanic, 

photocopying, recording or otherwise, without prior permission from the publishers. The content of this Publication is based on best knowledge and information 

available at the time of publication. No responsibility of any injury, death, loss, damage or delay, however caused, resulting from the use of the material can 

be accepted by the publishers or others associated with its preparation. The publishers neither accept responsibility for, nor necessarily agree with the views 

expressed by contributors. 

Connect-World Asia-Pacific Issue I 2005 is published under Licence by WORLD INFOCOMMS LTD. 

Executive Office: Global House 12 Albert Road London E16 2DW United Kingdom. 

Tel.: +44 20 7540 0876 Fax: +44 20 7474 0090 e-mail: info@connect-world.com URL: www.connect-world.com 

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