Telecommunication Issue #11

Axiata stresses new identity; cuts IDD rates

Malaysian news source Bernama is reporting that Malaysian telecoms group Axiata, formerly TM International (TMI), plans to embrace its recent name change, and will introduce the new brand in the consumer space. To that end, Axiata has announced that, whilst it has not renamed its mobile subsidiaries, it has refreshed their respective logos to include the Axiata prism. Malaysia’s Celcom, Sri Lanka’s Dialog Telekom, Excelcomindo (XL) of Indonesia and Telekom Malaysia International Cambodia (TMIC) have all had their logos updated. In addition, Axiata has announced that it is cutting IDD rates across its network in the region by up to 50%, with the offer applying to calls made to Singapore, India, Bangladesh, Cambodia, Sri Lanka and Indonesia.

StarHub enlists in APG cable consortium

Singaporean telecoms group StarHub joined forces with the consortium set up to develop the Asia-Pacific Gateway (APG) submarine cable system that will link the Asia-Pacific region. Once completed, APG will span 8,000km linking eight countries, namely Malaysia, Singapore, Thailand, Vietnam, Hong Kong, the Philippines, Taiwan, China, Japan and South Korea. The link will utilise Dense Wavelength Division Multiplexing (DWDM) technology with a minimum design capacity of 4Tbps of data bandwidth. The other carriers in the APG consortium are Chunghwa Telecom (Taiwan), China Telecom (China), China Unicom (China), KT Corporation (South Korea), NTT Communications (Japan), PLDT (Philippines), Telekom Malaysia (Malaysia) and VNPT (Vietnam).

TM partners with Verizon Business to launch IP node

Malaysian incumbent Telekom Malaysia (TM) has launched a new Internet Protocol (IP) node in partnership with US-based Verizon Business, Bernama reports. TM expects the node, christened Platinum Transit IP, to position Malaysia as an internet hub for the Asia Pacific region, and the launch comes just four months after the two companies signed a memorandum of understanding to develop the hub. The operator expects the new infrastructure to provide faster connections among local ISPs, lower broadband costs and more reliable international connections. Commenting on the launch Datuk Zamzamzairani Mohd Isa, TM’s CEO, said: ‘The IP node will enable TM to offer high-end network services at competitive price, which will enhance its ability to offer high-quality IP-based services to local service providers and hence companies with operations in Malaysia.’

TIME dotCom focusing on wholesale and corporate data sectors

Malaysian news source Business Times is reporting that fixed line and broadband operator TIME dotCom (TdC) is planning to focus its attention on its data service offerings directed at the wholesale, enterprise and corporate market segments. It is understood that TdC plans to concentrate on these specific areas as it believes there is stronger growth potential. Commenting on the strategy Afzal Abdul Rahim, TdC’s CEO, said: ‘The focus on data service offerings will allow us to optimise our existing infrastructure and take advantage of the many opportunities currently available in the market place.’ The announcement followed the release of the operator’s financial results for the three months ended 31 March 2009, with TdC posting a 12.1% increase in revenue to MYR74 million (USD20.5 million). Net loss meanwhile narrowed by 61.7% at MYR34.7 million for the quarter, compared to MYR56 million in the same period last year. TdC attributed the improved performance to higher data revenues helping to offset the decline in voice revenue, while the reduction in losses was a result of lower depreciation and finance charges.

SE-ME-WE 3 CABLE FAILURE AT 282 KM away from Deep Water Bay CLS (HONG KONG)

Telecommunication Issue #10

XL claims a ‘first’ with ‘funbook’ mobile media service

Indonesian mobile operator Excelcomindo Pratama (XL) has launched a new mobile social networking application ‘XL funbook’, claiming a first for Indonesia. The operator’s new service allows users to share content with a variety of third-party social networking and web sites including Facebook, Friendster, Photobucket and many others directly from their mobile handsets or through XL funbook’s web site. The mobile client supports a number of operating systems such as J2ME, Symbian, and Windows Mobile and currently supports over 500 phone models from the likes of Nokia, SonyEriscsson, HTC, and Samsung.

Bayanat Al-Oula extends WiMAX with Samsung

Saudi mobile operator Mobily has announced that its broadband arm, Bayanat Al-Oula, has contracted Samsung Electronics to expand its WiMAX operations. Under the terms of the USD100 million deal Samsung will extend Bayanat’s WiMAX coverage from four cities to 20 by the end of 2009. Samsung will install 1,400 base stations to increase Bayanat's overall total to 1,800 nationwide. Mobily CEO, Khaled al-Kaf, said, ‘Bayanat's existing WiMAX network currently serves 30,000 subscribers. With this expansion, we will be able to increase Bayanat's WiMAX capacity by at least three times.’

Telecommunication Issue #9

1. TM’S FY2008 REVENUE UP 4.6% to RM8.67 BILLION

Telekom Malaysia Berhad (TM) finished the year 2008 with an improved performance driven by growth in broadband and data. For the financial year ended 31 December 2008, TM posted a revenue of RM8,674.9 million, a growth of 4.6% from RM8,296.0 million recorded in 2007. The Company continued to win new customers and maintained leadership position in the broadband segment registering 1.6 million customers as at end of 2008, a growth of 26.7% from 1.2 million customers a year ago.
TM also announced a proposed final gross dividend of 14.25 sen per share less tax of 25%, amounting to RM382 million. Combined with the interim dividend of 12 sen per share less tax of 26% paid in September 2008, the total dividend in respect of financial year 2008 is 26.25 sen per share, which translates into a total dividend payout of RM700 million

2. XL swings into loss despite strong subscriber growth

Indonesia’s third largest mobile operator by subscribers, PT Excelcomindo Pratama (XL), reported full-year losses of IDR15 billion (USD1.26 million) for 2008 despite increasing its subscriber base by a healthy 68% to 26 million, a fact it attributes to higher interest rates on loans it assumed and foreign-exchange losses. The company posted year-on-year revenue growth of 45% to IDR12.2 trillion, said XL president Hasnul Suhaimi, ‘driven by a 705% increase in our total [voice] minutes to 54.9 billion minutes, and 68% growth in our subscriber base.’ He added that the firm’s strategy of offering a high quality service at lower prices ‘helped us gain about 5% market share in terms of revenue’. Earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 46% y-o-y to IDR5.13 trillion last year, while the EBITDA margin remained stable at 42%. Hasnul said that XL booked higher than expected interest expenses in FY2008, relating to additional loans it took out. Excluding the impact of FOREX and other losses, the operator would have booked normalised net income of IDR348 billion, he added.

In 2008 Excelcomindo invested heavily in its networks and services, Hasnul noted, upgrading both its hardware and software platforms to improve subscriber and traffic capacity levels. XL deployed an additional 5,572 base transceiver stations (BTSs) last year, at a total cost of USD1.2 billion, to end the year with a total of 16,729 BTSs. The CAPEX forecast for 2009 is a less ambitious USD600-USD700 million, which will be targeted at selected investment projects, he said.

3. Saudi cellco sees stronger than expected sales

Zain Saudi Arabia, the cellular operator which began commercial operations last August, has reported revenues of SAR505.2 million (USD135 million) for the 120-day period from its launch to the end of December, exceeding its own revenue targets by 27%. Active customers totalled 2.01 million at the end of 2008, which the firm says represents a 7% share of all Saudi users. Gross profit for the period stood at SAR16 million, though hefty start-up and initial operating costs left the company facing a net loss of SAR2.28 billion. Zain competes with the Kingdom’s two established cellular providers, STC and Mobily.

SUBMARINE CABLE CUT

1. APCN2 System: Cable cut at Segment 1 between Kuantan (Malaysia) and Katong (Singapore)Cable Station at 7 KM from repearter 1.
2. APCN2 System: Cable Shunt Fault at Segment 7 between Shantau and Tanshui Cable Station.

Telecommunication Issue #8

DiGi announces CAPEX for 2009, 30% set aside for 3G investment

Malaysia’s third-placed mobile operator, DiGi Telecommunications, is planning to spend more than MYR1.1 billion (USD318.9 million) in 2009, Reuters reports. DiGi, which trails Maxis Mobile and Celcom in the mobile market, is set to invest a significant amount towards its 3G services, with the company’s chief executive, Johan Dennelind, noting, ‘Our guidance for 2009's capital expenditure is MYR1.1 billion to MYR1.3 billion, of which 30% will go to 3G networks.’

Telecommunication Issue #7

International long-distance is going mobile

Amidst relentless pressure on prices and a growing array of international communications services, international voice traffic continues to grow. According to new data from the annual TeleGeography study of the international voice market, international voice traffic reached 343 billion minutes in 2007, and is projected to reach 385 billion minutes in 2008.

Mobile phones have been a key driver of growth, due to subscriber growth in developing countries and the recent emergence of low-cost international mobile calling plans. In 2007, nearly one-third of international calls were placed from mobile phones, and 45% of international calls were terminated on mobiles. Current trends suggest that by 2009, more international calls will be made to mobile phones than to fixed lines.

Telecommunication Issue #6

TM defends international tender decisions for HSBB project

Malaysian fixed line and broadband operator Telekom Malaysia (TM) has defended its decision to offer four tenders worth a total of approximately MYR10 billion (USD 2.82 billion) to international companies, according to local news source Business News. The operator was responding to a report issued by the Malay Chamber of Commerce (DPMM) which criticised its tender process for the high speed broadband (HSBB) project. TM claims its decision to award the tenders to international companies was only due to the fact that no domestic company could provide the necessary technology. TM also noted that the tender process had not been completed. DPMM president Syed Ali Attas however said that TM had given priority to foreign suppliers, and effectively blocked local companies.

Saudi Zain signs a million subs in first month

Zain Saudi Arabia, the cellular operator which launched the country’s third national mobile network in August, says it had signed almost a million subscribers by the end of September. ‘Things are moving much faster than expectations,’ company executive Marwan Al-Ahmadi told Reuters. Around 90% of Zain’s subscribers have signed to pre-paid packages. The firm says it expects to turn its first profit in its second full year of operation and it aims to have networks covering up to 95% of the population within two years, up from 55% currently. ‘Our ultimate aim is to get a third of the market,’ Al-Ahmadi said. ‘This is definitely not going to happen in the short term... I believe we should be able to achieve it in the range of five years.’

Wireline licensee looks to USD3bn rollout

The Saudi Arabian fixed line licensee Optical Communications Co, which is led by US telco Verizon Communications, is expecting to spend USD3 billion on deploying infrastructure. Verizon has taken a 15% stake in the venture, with other investors including Millicom International Cellular and a number of local partners. ‘For the moment, we have set a USD3 billion budget for the optical wire infrastructure alone,’ a company executive told Reuters. Optical Communications hopes to raise some of the cash it will need to launch its operations through an initial public offering next year, the executive added. A launch is scheduled for 2010.

XL secures USD214m loan from EKN

The Jakarta News reports that publicly listed mobile operator Excelcomindo Pratama (XL) has signed a deal with Swedish export credit guarantee agency EKN concerning a USD214 million loan for the purchase of equipment from Ericsson of Sweden. XL says the facility, which was arranged by ABN AMRO Bank Stockholm Branch and Standard Chartered Bank, is the first tranche of the total USD400 million facility provided by EKN. The funding will be used to fund part of the cellco’s CAPEX plans for 2008/09. The mobile operator has increased its capital expenditure target for 2008 from USD1 billion to USD1.25 billion, a significant portion of which will be used to upgrade its networks as subscriber numbers rise sharply. XL had 22.9 million mobile subscribers at the end of June 2008, up 124% year-on-year. Last month XL secured a USD140 million syndicated loan from four international banks – DBS Bank, Economic Development Canada, The Bank of Tokyo-Mitsubishi UJF and Chinatrust Commercial Bank – to help finance its ambitious rollout objectives.

Penang’s free internet projects move forward

Malaysian news source The Edge Daily is reporting that the free Wi-Fi internet project in Penang will proceed, despite opposition to the scheme expressing concerns about health implications. The project will see the entire state gain free access to internet services, and the project is due for completion within two years. Two operators have agreed to invest in the state, REDtone, which pledged MYR10 million (USD2.8 million) to the scheme, and Packet One Networks (P1), which said it would invest MYR20 million. The state government is still understood to be looking for additional partners in the project. Free Wi-Fi access is expected to launch in public areas around Komtar next week, courtesy of REDtone. P1 will meanwhile roll out WiMAX services, although this will be a paid-for service.

Telecommunication Problem #2

SUBMARINE CABLE PROBLEM

Three international submarine cables in the Mediterranean Sea were damaged on Friday, 19 December, causing significant disruptions to internet and voice traffic in Egypt, Saudi Arabia, India and all of the Gulf states. The fault is thought to have occurred between Tunisia and Italy. The three damaged cables are the FLAG Europe-Asia cable, operated by India’s Reliance Globalcom, and two consortium cables, SEA-ME-WE3 and SEA-ME-WE4, owned jointly by several telecommunications companies. Additionally, there were reports that the GO-1 cable connecting Malta with Sicily had been damaged on the evening of Thursday, 18 December. It was not immediately known if the outages were connected.

The current series of faults is reminiscent of the submarine cable faults that occurred in January 2008. Friday’s events have the potential to create worse disruptions: while the January 2008 accidents broke two of the three cables connecting Europe with Asia via the Middle East, the most recent cable failures have caused faults on all three. France Telecom (FT) projects that service on all cables will be restored by 31 December. Until then, many carriers in the Middle East and South Asia will need to route their European traffic around the globe, through South East Asia and across the Pacific and Atlantic oceans.

New cable construction should help to prevent such outages in the future, according to TeleGeography Research Director Alan Mauldin: ‘Many new cable systems are slated to enter service between Europe and Egypt in the next few years, including Telecom Egypt’s TE North cable, Orascom's MENA system, FLAG's HAWK cable, the IMEWE consortium cable, and the EIG consortium cable.’ Though constructing multiple cables does not guarantee against outages, the introduction of these new systems will provide additional routing options and improve resiliency.

A team of FT’s marine engineers arrived at the site of the damage to the SEA-ME-WE3 and SEA-ME-WE4 cables at 13:30 GMT yesterday (Sunday). The capacity situation had ‘improved’ in India, Singapore and Reunion by 15:00 GMT on the same day, according to an FT spokesman quoted by Reuters, whilst the Egyptian government reported that more than 80% of its internet capacity had been restored, although there remained some ‘tangible impact on call centres’. Meanwhile, Reliance said in a statement to Reuters this morning (Monday) that a repair ship was on its way to the site of the FLAG cable breakage, and that it expects to complete repairs this week. The actual cause of the cut remains unclear, although it is thought unlikely to have been a deliberate attack, with a ship’s anchor being put forward as a likely culprit.

1. Flag Cable System: Cable cut at Segment D between Alexandria (Egypt) and Palermo (Italy) on 19 Dec 2008 at 08:06 UTC .
2. SMW4 Cable system: Cable cut at near Alexandria Segment 4 on 19 Dec 2008 at 07:28 UTC
2. SWM3 Cable System: Cable Cut at Segment 8.8 F2 at about 3KM from R822(Nearer to Mazara) on 19 Dec 2008 at 07:22UTC.

NOC (each cable system) is unable to provide restoration because other cables SMW3, Flag & SMW4 are also failed on the same segment.
-------------------------------------------------------------------------------
Note:
Cable Cut : Whole cable break (Optical fiber break) and traffic affected.
Shunt Fault : The cable insulation is damaged causing a contact at sea of the power feeding conductor and create zero potential. Normally in this case the traffic not affected.

Telecommunication Problem #1

SUBMARINE CABLE CUT

1. Flag Cable System: Cable cut at Segment B SS1 between Estepona Cable Station at 8.75 KM toward Branching Unit (BU).

2. SWM3 Cable System: Cable Cut at Segment 2.14 between Hong Kong Cable Station toward BU6.

3. APCN Cable System: Cable cut** at Segment 3 B15 43Km from Changi cable Station.

4. SAFE Cable System: Shunt Fault** at 8Km from St Paul Reunion to 1st repeater.

Note:

Cable Cut : Whole cable break (Optical fiber break) and traffic affected.

Shunt Fault : The cable insulation is damaged causing a contact at sea of the power feeding conductor and create zero potential. Normally in this case the traffic not affected.

Telecommunication Issue #5

TIME dotCom sells payphone subsidiary

Malaysia’s Business Times is reporting that TIME dotCom (TIME) is to sell its payphone subsidiary TIME Reach, divesting its stake to local pre-paid fixed line telco Paycomm for MYR8.3 million (USD2.29 million). The sale is expected to be completed by the end of February 2009. The move comes as TIME looks to focus on its more profitable operations, which include subsidiaries TT dotCom, which offers voice, data and video communications, and TIME dotNet, which offers internet services. TIME’s chief executive officer, Afzal Abdul Rahim, commented, ‘We are highly committed and are in the midst of identifying several recovery programmes with an objective of returning TIME to profitability in the long term. TIME Reach will be the only asset divestment made by TIME in the near future and recovery of the group will mainly focus on strengthening our operational capabilities, improving competitiveness as well as cost management.’

P1 WiMAX launches in Johor

Packet One Networks (P1) has announced that its WiMAX-based broadband services have been launched in the Johor region, its first region of operation outside of the Klang Valley state, the Star Online is reporting. P1 chief executive offer Michael Lai has also reiterated plans for the operator’s rollout of WiMAX services, stating, ‘P1 will expand the coverage of P1 WiMAX to Skudai, Batu Pahat, Muar, Segamat and Kluang by the end of 2009 and Yong Peng in 2010. P1 expects to cover at least 70% of the population in Johor Baru by the end of next year and 30% of the Malaysian population by mid-2009.’ According to TeleGeography’s GlobalComms database, P1 launched its WiMAX network using the 2.3GHz band in August 2008 in the Klang Valley, and the company expects to have 600 base stations in operation by the end of 2008.

Qtel agrees to up Indosat offer price, reports say

Qatar Telecom (Qtel) has reportedly agreed to increase its offer price to raise its ownership in Indosat. Reuters writes that Indonesia's capital market regulator reported Qtel’s decision on Friday, pushing shares in the mobile phone firm up 20%. Qtel is holding a tender offer to acquire more Indosat shares and is hoping to increase its stake to the maximum limit allowed under local law, 65%, after it bought a stake from Singapore Technology Telemedia for USD1.35 billion in June, which increased its ownership to 40.8% from around 10%.

Telecommunication Issue #4

1. TMI sees net profit fall in 3Q despite revenue growth

Despite increased revenues for the three-month period ending 30 September 2008, Malaysian mobile group TM International (TMI) has revealed a 26% drop in net profit for the quarter. Attributing the drop in profit to escalating financial costs and higher losses from its overseas subsidiaries, the company reported net profits for the three-month period at MYR243.9 million (USD67.6 million), compared to MYR328.4 million year-on-year, while revenues rose to MYR3.28 billion, up 28.2% from MYR2.56 billion a year earlier. Strong performance from subsidiaries Celcom in Malaysia and Excelcomindo in Indonesia boosted revenues, with the operators reporting turnover growth of 10% and 60% respectively y-o-y, thanks to increases in both subscriber numbers and usage.Commenting on the results TMI chairman Tan Sri Azman said, ‘We are generally pleased to see that TMI is still recording healthy financials despite the unprecedented volatility in the global markets. We are confident of TMI's longer term growth potential given that through its holdings, TMI addresses a target population of 1.45 billion people with an average penetration rate of 31.1%.’ TMI was listed as a separate company earlier this year after state-controlled Telekom Malaysia spun off its mobile operations.

2. StarHub deploys world’s first commercial 3G femtocell product

Singaporean mobile and broadband service provider StarHub has launched what is being touted the world’s first commercially-available 3G femtocell service, under the banner ‘Home Zone’. The operator’s portable 3G femtocell devices will connect StarHub users’ UMTS handsets directly to their MaxOnline broadband-enabled router in the home/SOHO allowing them to make voice and video calls and send text messages via their cable connection. According to ACN Newswire StarHub is making all local outgoing voice, video calls and SMS messaging free for customers using Home Zone, saving them a significant amount on their monthly bills.

3. Mobily IP network

Mobile operator Mobily has contracted Huawei to assist in the deployment of an internet protocol (IP)/multiprotocol label switching unified core network. Mr Liu Qi, chief executive officer of the Huawei Saudi Arabia Representative Office said, ‘The integration of bearer networks for voice and data is the basis for an all-service operation.’ At the begining of November Mobily paid SAR80 million (USD21.3 million) to take a 94% stake in local internet service provider Zajil as its second move into the Saudi data market, following last year’s USD400 million buy of WiMAX licensee Bayanat al-Oula.

Telecommunication Issue #3

Masalah 1515 (Dial Up)

Email from The Star online:

Patience running out with TMnet staff and service

I HAVE been a subscriber to Telekom Malaysia’s Internet service 1515 and have been having problems sending e-mails for the last six months. E-mails sent locally are bouncing back with the message that 1515’s server SPTM is rejecting my messages. I work for a foreign company with the regional office based in Sydney and have not been able to e-mail my assignments.
Dialing into the company server in Sydney is costly, so I opted to use the 1515 service. I have been complaining almost daily to TMnet by calling 1300 88 1515 and telling whoever answered my call the problems I have been experiencing.
Each time I was also asked whether my telephone number was 732 9637. It has been years since Klang Valley telephone numbers were changed to eight digits yet this question is always asked.
I was told to forward a few e-mails that have bounced back to help@tm.com.my. I did this on Monday. It was not acknowledged. I called again on Wednesday and was told that someone would call me shortly but no one did.
There is nothing wrong with the settings on my laptop. It has been checked by friends, three IT consultants and my son, a computer science Honours graduate. As a customer my patience is running out and I have written this letter out of frustration.

This is the result of monopoly!
WILLIAM DENNIS,
Subang Jaya

+++++++++++++++++++++++++++++++++++++++++++++++

Komen: Come on lah bro, Monopoly apa, nowaday there is a lot of option if you want to use Internet. You may subcribe Broadband Streamix, Celcom, Maxis, Digi and Wimax services. So setakat pakai Dial Up dah ada hati nak complaint.

Memang benar kita kena layan walaubagaimana kecil mana pun bayaran yang dibayar oleh pelanggan kerana Pelanggan always right kan.. Tapi bagi aku nak layan pelanggan nie biarlah bertempat dan realistik. Kalau setakat dial Up takle access dah bising sampai masuk paper aku rasa mesti ada masalah dengan mamat nie.

My 2 cents

Telecommunication Issue #2

TMI WILL PAY TM MYR 4 Billion

Source: The Malaysia Reserve.

1. Azman (CEO Khazanah Nasional Bhd CEO which is Majority shareholder in TMI) Said TMI will have sufficient funds to pay TM amount MYR 4 Billion.

2. Dateline bayaran ini adalah tahun hadapan (FY2009).

3. TM juga akan membayar dividen sebanyak RM 700m or up to 90% of its normalised after-tax profit and minority interest whichever higher.

4. Mempersoalkan kekuatan kewangan TMI, Khazanah akan akan sentiasa kekal komitmen dengan TMI dan menyediakan struktur pembiayaan jangka panjang untuk TMI.

TM Q3 FY2008 NET PROFIT DECLINE

Source from The Star online

KUALA LUMPUR: Telekom Malaysia Bhd posted net loss of RM165.82mil in the third quarter ended Sept 30, weighed down by foreign exchange losses of RM195.7mil. Announcing a weaker set of results on Tuesday, the net loss was in sharp contrast of the net profit of RM658.51mil year ago. Revenue was RM2.06bil compared with TM2.13bil year ago. Loss per share was 4.8 sen compared with earnings per share of 19.2 sen.
TM said its profitability was affected by ssignificant non-recurring items/exceptional costs. These included unrealised forex translation loss and realisation of foreign translation loss on disposal of Societe Des Telecommunications De Guinee S.A. (Sotelgui).
“Excluding these significant non-recurring items/exceptional costs, the normalised profit after tax and minority interests would have been RM176.4mil for the current quarter,” it said.

TM said the group recognised RM68mil charge arising from volume commitment with foreign carriers for prior years based on final settlement. It added that upon completion of disposal of Sotelgui, the group realised foreign translation loss of RM88.8mil in the current quarter, arising from the translation of the net assets in Sotelgui.

Telecommunication Issue #1

APABILA MAHFUZ OMAR BERBICARA TENTANG HSBB

Dalam Harakah bertarikh Rabu 12 November 2008, MP Pokok Sena mempertikaikan pemberian kontrak bernilai RM11B project HSBB kepada TM dan alasan yang diberikan adalah pemberian tersebut adalah tinggi dan boleh dijimatkan kepada RM5B dengan menggunakan teknologi 'Digital Power Line' (DPL) iaitu menggunakan cable power TNB yang ada. Pandangan tersebut memang ada kekuatannya tetapi adalah lebih baik jika kita lebih memahami apa itu DPL. Ini bukan kontrak tetapi Public Partnership (Joint Investment).

++++++++++++++++++++++++++++++++++++

KUALA LUMPUR, 12 Nov (Hrkh) - Kos perbelanjaan Projek 'High Speed Broadband' yang dijalankan Telekom Malaysia lebih mahal iaitu melebihi RM11 bilion, sedangkan terdapat kaedah lain yang jauh lebih murah dari itu. Mahfuz Omar (PAS-Pokok Sena) berkata terdapat kaedah yang lebih murah iaitu tidak sampai RM5 bilion, iaitu 'Digital Power Line' (DPL) yang boleh dimanfaatkan kerajaan di saat krisis kewangan melanda. Dalam masa yang sama, tambah beliau kerajaan boleh terus memberi peluang perniagaan kepada TNB agar mereka boleh menyewa kepada mana-mana syarikat komunikasi yang menggunakan DPL ini.

++++++++++++++++++++++++++++++++++++++++++++++

- Digital Powerline (DPL) technology provides the transmission of data to users over the same lines that bring electric power to homes and businesses. Using the Internet's TCP/IP protocol, companies using DPL across the mains electricity grid plan to deliver data at speeds up to 100 Mbps (for download). DPL would allow a user to get Web pages and other Internet information over power lines with a 24-hour continuous connection (since your power lines are always connected). This would free your telephone for voice use. In addition, since many home appliances are attached to the power system, they could easily be addressed as Internet devices when plugged in. http://www.powerlinecommunications.net/

Bagi aku HSBB dan DPL ini adalah sesuatu yang tidak sama jika kita melihat dari segi perkhidmatan memang benar mereka berdua memberi perkhidmatan Internet tetapi jika dari segi kelajuan adalah berbeza. DPL kelajuan adalah up to 100 Mb/s tetapi HSBB kelajuan boleh mencapai kepada 1Gb/s dan kita berkata tentang Mb/s dan juga Gb/s adalah kelajuan yang tidak sama. Contain yang ada dalam HSBB adalah tidak sama dengan contain yang akan diberikan kepada DPL (mungkin hanya terhad kepada internet access sahaja).

Project ini akan memberikan satu lagi peluang/menjana pendapatan kepada Syarikat yang satu - satunya memberikan peluang pekerjaan kepada hampir 80% Bumiputera.

TM set to increase backbone internet capacity

Telekom Malaysia (TM) has revealed plans to increase its broadband infrastructure capacity by 30% to 130Gbps in 2009, citing a rise in demand for online services as the main driving factor. Malaysian news source The Star Online also reports that the telco plans to increase its bandwidth to 100Gbps by the end of 2008, up from the 90Gbps it presently offers. Rozaimy Rahman, COO of TM Global, a subsidiary of TM, noted that rising demand has been driven by an increase in the number of voice calls, the growing number of home offices and the rise of high definition TV content.

Telecommunication Trend #2

TMI may sell additional stake to Khazanah

Reuters is reporting that TM International (TMI), recently spun-off from Telekom Malaysia, is considering a stake sale to state investment vehicle Khazanah to finance an acquisition in India, citing local press reports. It is understood that the company is considering the sale in place of a loan to finance the USD1.8 billion loan it took to acquire a 19% holding in Indian cellco Idea Cellular. Khazanah already holds a 44.51% stake in TMI. Additionally, the report suggests that TMI has looked at selling a 10% stake in its Indonesian unit Excelcomindo, although it is believed that current weak market conditions have forced the sale to be reconsidered.

Mobily buys another ISP

The Saudi cellular operator Mobily has paid SAR80 million (USD21.3 million) to take a 94% stake in local internet service provider Zajil. The deal, which was first announced back in July, is Mobily’s second move into the Saudi data market, following last year’s USD400 million buy of WiMAX licensee Bayanat al-Oula. The country’s internet sector is currently dominated by Saudi Telecom Company (STC), with more competition on the horizon in the form of three new wireline licensees led by PCCW, Verizon and Batelco.

XL secures USD140m loan to fund CAPEX plans

Indonesian mobile operator PT Excelcomindo (XL) has secured a USD140 million syndicated loan from four international banks to help fund its capital expenditure plans. XL, an 83.79%-owned unit of Telekom Malaysia, was granted the funding facility by DBS Bank, Economic Development Canada, The Bank of Tokyo-Mitsubishi UJF and Chinatrust Commercial Bank, reports Reuters. The mobile operator has increased its CAPEX target for 2008 from USD1 billion to USD1.25 billion, a significant portion of which will be used to upgrade its networks as subscriber numbers rise sharply. XL had 22.9 million mobile subscribers at the end of June 2008, up 124% year-on-year.

Telecommunication Trend #1

Jakarta limits Qtel In Indosat ownership to 65%:

Indonesia’s Ministry for Communications today announced it intends to limit Qatar Telecom’s (Qtel’s) ownership of the country’s second largest telecoms group Indosat to 65%. The decision comes, writes Reuters, as Qtel prepares to conduct a tender offer for the rest of Indosat's shares after increasing its control over the Indonesian company to 40.8% earlier this year in a USD1.35-billion deal.

DiGi revenues up 10%, profit down 1% on marketing spend:
Malaysian cellco DiGi has reported that its third-quarter net profit fell by 1% year-on-year to MYR269.9 million (USD74.9 million) on higher advertising spending. During the three months ending 30 September 2008, the country’s third largest mobile operator said that revenues rose nearly 10% y-o-y to MYR1.22 billion, while the EBITDA margin fell to 45.6%, against 47.9% in the same period last year, due to pressure from higher traffic and network operating costs. The company added 166,000 net new customers during the quarter, comprising 126,000 new post-paid and 40,000 pre-paid users. At end-September it had 5.83 million pre-paid customers and 976,000 contract subscribers; a total of 6.8 million. CEO Johan Dennelind said in a statement, ‘We believe that over time, higher voice and advanced data usage will lead to continued revenue growth…We also see opportunities to further generate revenues in the medium to long-term with the newly-introduced mobile number portability and the impending launch of our 3G mobile broadband offerings in early 2009.’ DiGi Telecommunications is wholly owned by holding company DiGi.Com, which is itself 49% owned by Norway’s Telenor.

(Business Strategic)
Following the nationwide launch of mobile number portability (MNP), Malaysian cellco DiGi Telecommunications (DiGi) has revealed plans to leverage the service to increase its subscriber base. According to The Star Online, DiGi intends to absorb the cost for any customer switching to its service, despite the regulations allowing operators to charge up to MYR25 (USD7.16) to change provider while retaining mobile number. The move comes as the operator looks to increase its overall market share, placing a specific emphasis on the post-paid market. According to TeleGeography’s GlobalComms database, DiGi had 26.4% market share at the end of June 2008, and DiGi CEO Johan Dennelind noted, ‘With less than 20% of the post-paid market share, MNP allows us to further tap into the space dominated by high usage users who care about their bills.’ In an effort to further drive subscriber uptake, the cellco has also announced the launch of its new ‘1 Low Flat Rate’ tariff, which offers a single flat-rate to all networks across pre- and post-paid and business numbers.

Mobily profits beat forecasts:

Saudi Arabian cellular operator Mobily has reported a 73.3% rise in profits for the three months to the end of September 2008, beating analyst forecasts. Mobily saw third quarter net profits of SAR539 million (USD143.7 million), up from SAR311 million in the same period last year. Reuters says averages of analyst predictions had put profits at SAR492 million.

Indosat's 9Month 2008 net income up 1.9%, but Q3 profit falls sharply:
Indonesia's second largest fixed line and mobile operator Indosat today reported a 1.9% year-on-year rise in its nine-month net income to IDR1.47 trillion (USD149.8 million). Reuters reports a company filing which shows the firm’s revenues in the period under review increased by 14.9% on 9M07 to IDR13.65 trillion driven by strong demand for the operator’s internet and data services. On a less positive note, the operator posted a 30.5% fall in its third-quarter net profit on higher operating expenses and declining ARPU from mobile users. According to Reuters' calculations, Indosat's net profit dropped to IDR417 billion in the three months to 30 September, compared with IDR600 billion in 3Q07.

Monitor the Vessel

AIS IMPLEMENTATION

The Automatic Identification System (AIS) is a system used by ships principally for identification and locating vessels. AIS provides a means for ships to electronically data including: identification, position, course, and speed and with other nearby ships. This information can be displayed on a screen. AIS is intended to assist the vessel's watchstanding officers and allow maritime authorities to track and monitor vessel movements. It works by integrating a standardized VHF transceiver system with an electronic navigation system, such as a LORAN-C (LOng RAnge Navigation Version C) or Global Positioning System receiver, and other navigational sensors on board ship.
This system is required and mandatory for all the ships with 300 GT (gross Tonnage) or more and all the passenger ships regardless of size as regulated by the International Maritime Organization's (IMO) International Convention for the Safety of Life at Sea (SOLAS). It is estimated that more than 40,000 ships currently carry AIS class A equipment.

AIS transponders automatically broadcast information, such as their position, speed, and navigational status, at regular intervals via a VHF transmitter built into the transponder. The information originates from the ship's navigational sensors, typically its global navigation satellite system (GNSS) receiver and gyrocompass.

Other information, such as the vessel name and VHF call sign, is programmed when installing the equipment and is also transmitted regularly. The signals are received by AIS transponders fitted on other ships or on land based systems, such as VTS systems. The received information can be displayed on a screen or chart plotter, showing the other vessels' positions in much the same manner as a radar display. The AIS standard describes two major classes of AIS units:
Class A - mandated for use on SOLAS Chapter V vessels (and others in some countries).
Class B - a low power, lower cost derivative for leisure and non-SOLAS markets.

Other variants are under development specifically for base stations, aids to navigation and search and rescue, though they will all be derived from one of the existing standards and inter-operate with them.

CRISIS ECONOMY

Krisis ekonomi adalah akibat peraturan yang buruk, bukan kapitalisme
Oleh Dr Eamonn Butler

Kegawatan ekonomi dunia menyebabkan ramai yang menuntut supaya kawalan sektor kewangan dipertingkatkan. Reaksi sebegini memang boleh kita fahami. Tetapi ini reaksi yang salah. Krisis yang kita hadapi bukan kegagalan kapitalisme. Penyebab utama krisis ini ialah ahli politik yang memaksa bank-bank memberikan pinjaman yang tidak munasabah, pihak berkuasa kewangan yang membiarkan Barat dibanjiri oleh kredit murahan, dan juga kegagalan proses pemantauan.
Tarikh lahirnya krisis ini ialah 12 Oktober 1977. Sebelum tarikh ini, institusi kewangan biasanya tidak memberikan pinjaman kepada mereka yang menetap di kawasan-kawasan miskin kerana mereka yang tinggal di kawasan sebegini biasanya mempunyai pendapatan yang terlalu rendah dan aset mereka juga murah. Kombinasi ini biasanya hanya akan melahirkan peminjam yang akhirnya gagal melunaskan pinjaman mereka. Tetapi pada 12 Oktober 1977, Presiden Amerika Syarikat Jimmy Carter menandatangani rang undang-undang yang juga dikenali sebagai “anti-redlining law”. Undang-undang ini tidak membenarkan institusi kewangan meneruskan pemberian pinjaman secara selektif sedemikian rupa. Akibatnya institusi kewangan terpaksa memberi pinjaman kepada mereka yang tidak berkemampuan untuk membayar balik pinjaman dengan penuh. Niat ahli-ahli politik pada waktu itu mungkin baik. Mereka mahu semua rakyat boleh memiliki rumah dan itulah sebabnya mereka meluluskan undang-undang ini yang mengharuskan institusi kewangan memberi pinjaman yang berisiko tinggi, atau kini dikenali sebagai pinjaman subprima.
Menjelang tahun 1985, keputusan tersebut hampir-hampir menyebabkan institusi-institusi tabungan dan pinjaman di Amerika Syarikat menjadi bankrup. Maka, kerajaan Amerika mengambil alih hutang-hutang lapuk yang semakin banyak dan menggalakkan konsolidasi hutang-hutang tersebut, lantas melahirkan syarikat-syarikat yang amat besar sehingga jika mereka gagal, kesannya akan amat buruk kepada ekonomi secara keseluruhan. Ringkasnya, tindakan kerajaan secara tidak langsung melahirkan syarikat-syarikat yang terlalu besar untuk dibiarkan gagal.
Seterusnya, selepas itu, pasaran saham di Amerika pula merudum kerana terdapat kebimbangan jika institusi kewangan lain juga akan gulung tikar. Pasaran saham Asia juga menjunam. Mexico, Argentina dan Rusia pula gagal membayar hutang mereka. Saham-saham dotkom yang sebelumnya memuncak pun tiba-tiba runtuh. Dan kemudian berlaku pula tragedi 9/11. Setiap kali berlaku peristiwa-peristiwa ini, kerajaan di negara-negara Barat bertindak balas dengan cara mempertingkat jumlah wang tunai di pasaran mereka.
Selepas tragedi 9/11, Bank Negara Amerika (Federal Reserve) memotong kadar faedah daripada 6.25% kepada 1% sahaja kerana mereka bimbang ketidakyakinan pelabur akan membawa kepada merudumnya ekonomi. Tindakan mereka ini menghantar isyarat yang salah kepada pasaran dan ia menyebabkan ‘credit bubble’ berterusan. Penurunan kadar faedah menyebabkan hutang pada waktu itu menjadi enam kali lebih murah daripada sebelumnya. Maka jumlah permohonan pinjaman perumahan pun memuncak . Institusi kewangan pula dengan senang hati memberikan lebih banyak pinjaman subprima. Apabila lebih ramai orang yang mahu membeli rumah, maka harga rumah pun meningkat dengan tinggi. Peningkatan harga rumah menyebabkan berlakunya kitaran yang beterusan - lebih ramai orang yang mahu membeli rumah, dan lebih ramai yang membuat pinjaman, kerana ia dilihat sebagai cara yang selamat untuk membuat keuntungan.
Di London pula , satu dekad di bawah pentadbiran parti Buruh (Labour) menyaksikan perbelanjaan kerajaan yang jauh melebihi pendapatan. Ini mengakibatkan pinjaman kerajaan meningkat dengan tinggi. Hutang peribadi rakyat, dan juga harga rumah, juga turut meningkat.
Selama hampir sepuluh tahun semua pihak berpesta meraikan pertumbuhan ekonomi dunia. Tetapi pertumbuhan ekonomi tersebut sebenarnya dibiayai oleh ‘wang palsu’ yang dicetak oleh kerajaan semata-mata untuk menjana pesta pertumbuhan ekonomi yang berterusan. Apabila pesta tersebut sampai ke penghujung, maka lahirlah kesan yang kita alami sekarang.
Pihak berkuasa pula seolah-olah terus tertidur, atau mungkin telah bertahun-tahun pengsan. Sekitar 200 agensi pengawalan dan penguatkuasa sebenarnya mengawasi Fannie Mae dan Freddie Mac tetapi kedua-dua syarikat ini masih lagi roboh dengan hutang hampir USD$5 trilion. Kedua-dua syarikat dokongan kerajaan ini membiarkan pelabur menyangka bahawa pinjaman perumahan yang mereka miliki, walaupun banyak yang lapuk, tetap dilindungi oleh kerajaan. Ini menyebabkan agensi-agensi pengadaran kredit (credit rating agencies) memberikan mereka markah tinggi termasuklah kepada bon-bon yang sebenarnya tidak boleh dipercayai.
Banyak institusi kewangan yang mempakej semula hutang-hutang lapuk tersebut dan menjualnya semula di pasaran dunia. Ada institusi kewangan yang memberi pinjaman terlalu tinggi sehingga tiga puluh kali jumlah aset yang mereka miliki. Tetapi pihak berkuasa terus membisu. Contohnya, walaupun Bank Negara England mengetahui bahawa syarikat Northern Rock hampir gagal, mereka tidak melakukan apa-apa langsung.
Apa yang berlaku menunjukan bahawa terdapat ketempangan yang jelas pada pihak berkuasa dan peraturan. Apabila pihak berkuasa tertidur, jangan lah pula kita terkejut apabila ada pihak yang mengambil risiko terlalu tinggi. Yang patut dipersalahkan ialah pihak berkuasa dan bukannya sistem perekonomian.
Sebarang penyelesaian yang dicadangkan sekarang mestilah kembali kepada prinsip-prinsip asas ekonomi. Usaha kerajaan Amerika untuk ‘bail out’ syarikat tertentu hanya akan menyelamatkan mereka yang bersalah tanpa menghiraukan mangsa sebenar situasi ini.
Pada waktu yang sama kita juga harus sedar bahawa dunia ini lebih besar daripada Amerika Syarikat sahaja. China kini merupakan ekonomi ke-empat terbesar di dunia dan ia terus berkembang dengan kadar hampir 10 peratus. India dan lain-lain negara membangun juga terus berkembang. Rakyat miskin di negara-negara membangun akan tetap merasai kesan positif pembangunan ekonomi negara mereka. Walapun ekonomi negara-negara Barat merudum, ekonomi dunia dianggarkan akan terus berkembang pada kadar 4 peratus. Ini masih baik.
Maka, walaupun kapitalisme yang diamalkan di negara-negara Barat kini terpukul akibat daripada kelemahan dan campurtangan ahli politik dan pegawai-pegawai penguatkuasa, tetapi kapitalisme global terus berjaya mengeluarkan jutaan manusia daripada bencana kemiskinan. Hakikatnya kapitalisme terus utuh.

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Source from WAUBEBAS.. Writer : Dr Eamonn Butler

NEW CABLE SYSTEM FROM SOUTH AFRICA TO INDIA

SEACOM CABLE SYSTEM

Tyco Telecommunications has announced that it has started construction on the US$650-million Seacom undersea fibre-optic cable, which will link southern and eastern Africa with India and Europe by 2009, bringing down connectivity costs on the continent.
"Seacom's offerings will complement communication carriers of south and east africa through the sale of wholesale international capacity to global networks eastward through India and westward through Europe," Tyco said in a statement on Wednesday.
"The system will provide African retail carriers with equal and open access to inexpensive bandwidth, removing the international infrastructure bottleneck and supporting east and south African economic growth."
According to Tyco, the increased capacity of the cable as compared to existing infrastructure will enable the greater availability and lower cost of high-demand services such as high definition television (HDTV), peer to peer networks and internet protocol television (IPTV).

According to Business Day, New York-based Herakles Telecom is a development group that has invested some $4-billion in Africa, and owns 25% of the cable.

Seacom will have a capacity of 1.28 terabits per second, which is approximately 10 times the current capacity of the SAT-3 cable which runs along Africa's west coast and connects South Africa to Europe.

South Africa's second national operator, Neotel is not part of the cable-building consortium, but owns the landing rights as part of its licence and will contribute R20-million toward the project, with funds going toward the cable landing station and all related facilities within South African territory.

According to Neotel, the cable should be ready for service during 2009, placing South Africa in a much stronger position to support the 2010 Fifa World Cup, whose demand for international bandwidth, and in particular high definition television broadcasting, will be unprecedented.

Nationwide MNP launches

KUALA LUMPUR: Mobile number portability (MNP), which allows mobile phone users to switch operators without the need to change their existing numbers, is finally here. Energy Water and Communications Minister Datuk Shaziman Abu Mansor is scheduled to launch MNP nationwide here this afternoon, flagging off what is expected to be an even fiercer battle in the mobile space. MNP had been on a limited live trial in the Klang Valley from Aug 29 (for prepaid users) and from Sept 15 (for postpaid users).
The extent of the impact from MNP is still unknown at present, given that each of the four service providers — Celcom (Malaysia) Bhd, DiGi.Com Bhd, Maxis Communications Bhd and U-Mobile — could only accept up to 100 requests a day during the trial period at five designated porting locations each. Any additional porting requests were to be put on queue for the following day. There is also limited publicity allowed on the service during trials. Moreover, business customers and organisations can only port after today’s nationwide launch.
CIMB Research recently downgraded the local telecommunications sector to neutral from overweight on concern that MNP would bring about higher risk of a price war, resulting in margins and profits thinning for mobile operators.
“We believe the potent mix of MNP and the entry of newcomers U Mobile and mobile virtual network operators (MVNOs) heighten the risk of price disruption… industry revenues in Japan and Taiwan declined following the introduction of MNP, largely due to lower ARPU (average revenue per user),” CIMB said in a note dated Sept 30.
MNP is likely to inflate subscriber and retention costs, CIMB said, noting that earnings before interest, tax, depreciation and amortisation (Ebitda) margins of telcos in North Asia fell for three to four quarters by five percentage points from their “normal” run rate due to MNP.
In Singapore, MNP had left revenues intact but Ebitda margins fell 3.5 percentage points, it added. Malaysian cellular operators currently enjoy margins of between 45% and 52% versus the regional average of 35% to 40%. Still, the launch of MNP is good news for the consumer, especially during difficult times when every ringgit counts.
Service providers are allowed to charge a maximum of RM25 for each request to change the service provider. Analysts expect some service providers to absorb this fee as part of its package to attract new users

New Cable UNITY

Google's subsea ambitions expand

On the heels of its investment in the Unity trans-Pacific submarine cable, Google is working with a consortium of carriers planning to build an intra-Asian submarine cable system. The new cable, dubbed the Southeast Asia Japan Cable (SJC), would link Unity's landing station in Japan to Guam, Hong Kong, the Philippines, Thailand and Singapore. The cable is still in the planning stage, and the consortium has yet to announce a supply contract (boleh caya ke??). 'Given the current flurry of undersea cables under construction, the SJC cable will probably not be ready for service until 2011(lama nye.. AAG dah RFS around next year) at the earliest,' said TeleGeography analyst Alan Mauldin.The members of the SJC consortium are nearly identical to Unity with a few exceptions. Companies that are participating in both consortiam are Google, Bharti, SingTel, KDDI and Global Transit. Pacnet, which will control two fibre pairs on Unity, already operates the EAC-C2C intra-Asian mesh cable system and consequently is not involved with SJC. Globe Telecom of the Philippines and TOT of Thailand are also members of SJC and will be the landings parties for the cable in their respective countries.