March 9, 2007 - As part of its Networks and Vendor Business Models Solutions, Pyramid Research conducted an online survey at the end of 2006. The purpose of the survey is to understand how operators allocate their network Opex and Capex among the different network functions identified by Pyramid Research.
Of the operators surveyed, only about 30% in each operator category stated that they are not interested in managed or hosted services and will not consider such engagements in the medium term. Purchase Subscription
March 1, 2007 - Voice-over-IP is a maturing technology in some of European markets. The rate of take-up varies significantly in different countries in the region. This can be attributed to different competitive structures and regulatory environments. VoIP take-up is the highest in France and Netherlands, where regulators have been successful in fostering competition. As a result, incumbents have been forced onto the offensive, providing competitive VoIP packages. Consolidation has also been a reaction to intense competition. However, fixed line voice services are also under threat in less competitive markets. Purchase Subscription
The Cost of WiMAX Licenses: From Highest to Lowest
March 1, 2007 - Using a sample of 17 markets in which WiMAX licenses were sold through auctions, we found the median price per MHz per population (PMP) for WiMAX spectrum to be US$0.013 and the average PMP to be US$0.031. We see the median PMP1 as a more reliable indicator than the average PMP because outliers tend to skew averages. For example, Bahrain, the country with the highest PMP in our sample, had an average PMP of approximately US$0.20 (of two 3.5 GHz licenses issued in January 2007), US$0.14 more than the next highest PMPs. Purchase Subscription
India: Looking to the 700MHz Frequency Band
February 23, 2007 - Several of India's major carriers (including Reliance Infocomm, Bharti Tele-Ventures, and Sify) have acquired licenses for spectrum to deploy WBA and intend to deploy WiMAX. In September 2006, The Telecom Regulatory Authority of India (TRAI) recommended that spectrum in the 2.3–2.4 GHz, 2.5–2.69 GHz, 3.3–3.4 GHz, and 3.4–3.8 GHz ranges be auctioned for the use of WiMAX. Purchase Subscription
Why Ericsson’s Services Business Will Drive Growth, but Continue to Pressure Margins
February 23, 2007 - Ericsson’s services business has been its fastest growing division over the past two years. The company’s CEO, Carl-Henric Svanberg, remains optimistic about the unit’s prospects, forecasting strong growth for 2007. Ericsson has won some key operator contracts over the past two years to become the world’s largest telecom services provider by revenue. Purchase Subscription
3G Spectrum Was Overpriced, and Why WiMAX Spectrum Is Undervalued
February 15, 2007 - The price of WiMAX spectrum has been significantly cheaper than that of 3G spectrum—in some cases, less than one-thousandth of the 3G price.
3G spectrum was valued higher because it was purely mobile spectrum, licenses were national, it was the dot-com era, and deep-pocketed MNOs saw the spectrum as strategic to their future. Few of these conditions apply to WiMAX. Purchase Subscription
Mobile vs. Fixed Penetration in Switzerland
February 15, 2007 - Switzerland’s mobile subscriber base will grow at a CAGR of 4.9 percent between 2006 and 2011, from 7.4m to 9.5m. Thus, penetration will increase from 99 percent at the beginning of the period to 123 percent at the end of the period. Operators are focusing on increasing ARPS and reducing churn with customer retention strategies. By hosting niche-segment-oriented and “no-frills” MVNOs on their networks, operators will be able to turn further profits with the network traffic generated by MVNO subscribers. Purchase Subscription
WiMAX vs. 3G Performance: Looking Beyond the Hype
February 9, 2007 - Although press attention on WiMAX has diminished lately, considerable WiMAX activity is nonetheless still being witnessed in Europe. Below we share some of our latest thinking on WiMAX, and in particular how its performance compares to that of 3G. Our examination shows that, in performance terms, there are no clear winners amongst WiMAX and 3G. Purchase Subscription
Telmex’s Shopping Spree Not Limited to Colombia
February 9, 2007 - In August 2006, Telmex, one of the largest operators in Latin America, reached a purchase agreement to acquire Colombian cable operator, Superview, for US$40m, or US$270 for each of the company’s 150,000 subscribers. This signaled the start of a series of purchases made by the Mexican incumbent in Colombia, which also included the acquisitions of Cable Pacifico and TV Cable for a combined US$300m, or US$1,485 by subscriber. Purchase Subscription
Convergence Regulation in Brazil
February 2, 2007 - Threatened by the success of Net Servicos’ cable-based triple play offer of voice, broadband, and video, Telefonica and Telemar purchased their own cable infrastructure in 2H06 by acquiring an equity stake TVA and Way Brasil, respectively. Purchase Subscription
Video-on-Demand (VoD): Enhancing the Digital Video and DTH Proposition
January 26, 2007 - The top two US cable players, Comcast and Time Warner Cable, have offered VoD since the early 2000s, but they’ve only begun reaping its benefits. Indeed, both of the companies attribute increases in video revenues partly to the growth of enhanced digital video services, including VoD, high-definition (HD), and digital video-recorder (DVR) services. Purchase Subscription
Japan and South Korea: Long Hike to Convergence
January 26, 2007 - Despite high rates of broadband adoption and the high-speed/high-bandwidth broadband technologies available, in the path toward fixed-mobile convergence, Japanese and South Korean telcos lag behind their peers in Western Europe. Two major factors impact FMC adoption negatively—the inadequate regulatory framework dealing with FMC and late IMS deployment by carriers. Purchase Subscription
The opportunity: A $7bn Outsourcing Market
January 19, 2007 - In Latin America, we estimate that mobile operators have invested a total of U$8.5bn in network services (as tracked by Pyramid Research) in 2006. About 70% of this amount was spent externally on services such as network build, maintenance, network operations, hosting, and training and hardware and software platforms including application and billing solutions and network and service management tools. By 2010, we expect almost 80% of operator spending to be addressable by third parties, which is projected to reach US$7bn. Purchase Subscription
USA: Bundled Packages—The Trojan Horse of Service Providers
January 12, 2007 - Bundled services are shaping the US telecommunications market as players form “amiable” relationships with consumers. The “nice-guy” image operators are trying to create helps secure customers in the long-term with multi-play offerings, as well as target new products to them. Thus, bundled services allows old players to compete in new market sectors, resulting in heightened competition with lower prices and improved customer service as well as new innovative services and favorable adoption rates of new technologies. Purchase Subscription
India: Telecoms Market Performance
January 12, 2007 - Pyramid Research estimates the Indian telecoms market will grow at a CAGR of 9.6 percent over the 2005-2010 period. This is the third highest growth rate in the region, only behind that of Indonesia and Vietnam, and highlights the potential opportunity available within the country’s mobile as well as fixed sectors. With teledensity currently around 12 and expected to almost double to 23 by the end of the forecast period, India’s telecommunications market promises a huge return to anyone willing to invest heavily initially and expand the reach of their networks. Purchase Subscription
Canada: Fixed Communications Revenue
December 22, 2006 - Fixed network operators generated just over US$20.6bn in revenue in 2005, and are expected to generate only about US$17.9bn in 2011. This is due to a sharp decline in domestic long-distance, which accounted for 21 percent of fixed-line revenues in 2005, but will decrease at a compound annual rate of 10 percent over the next six years because of loss of traffic on operators’ networks due to VoIP and mobile telephony. Purchase Subscription
BT Vision or IPTV as the Third Way
December 22, 2006 - On December 4, 2006, BT launched BT Vision, its IPTV service. BT Vision requires no subscription and uses a set-top box dubbed V-box, a personal video recorder (PVR) capable of storing up to 80 hours of content. The V-box is valued at £199, but is currently being offered for free after installation and connection fees of £60 and £30, respectively. Faced with sharp competition from digital terrestrial television (a free service after set-top box costs) and Pay TV from cable provider NTL and satellite behemoth BSkyB, BT opted for a third way, somewhere between free and Pay TV. Purchase Subscription
Saudi Arabia: Unleashing the Market Potential
December 7, 2006 - In October 2006, Saudi Arabia’s telecom regulator, the CITC, announced auctions for new fixed and mobile licenses in the Kingdom, with applications due at the end of January 2007. Upon the entry of these upcoming new operators, Saudi Arabia will have the most liberalized telecom market in the Gulf, with four mobile operators and at least two fixed service providers. Purchase Subscription
Canada's Leading Triple Play Market
December 7, 2006 - There is much to be learned from the Canadian market, as carriers set their sights on bundled services and convergence. By our estimates, nearly 42 percent of Canadian households will have a triple play subscription, up from about 30 percent at the end of 2005. Purchase Subscription
November 30, 2006 - Qatar, with one of the world’s fastest growing economies and the world’s third-largest gas reserves, has expressed an ambition to become a regional data-services hub, but its own telecommunications sector has fallen somewhat behind those of its Gulf neighbors. Purchase Subscription
Italy: Telecom Italia Restructuring— Myth and Reality
November 16, 2006 - In September 2006, Telecom Italia (TI) unveiled a major restructuring plan which involved breaking up the company into three separate units: an independently incorporated wholesale fixed-line network, a retail fixed-line operator (which will remain the main company), and a mobile unit (TIM). Purchase Subscription
The Fixed Line Forecast in Brazil
November 9, 2006 - Broadband adoption continues to drive revenues in the Brazilian fixed line market, which Pyramid Research expects to reach US$22bn in 2006. Purchase Subscription
Mexico: Fixed Market Overview
November 2, 2006 - While the majority of Latin American countries suffer from decline or slow growth in terms of fixed telephony subscriber lines, Mexico’s lines continue to expand, albeit at a slower pace than in the past. Purchase Subscription
Portugal: PT in Play - The Danger of Holistic Thinking
November 2, 2006 - In a decisive chapter of Sonaecom’s bid for Portugal Telecom’s (PT) assets, the Portuguese anti-trust agency Autoridade de Concorrencia (AdC) announced its preliminary non-opposition to the tender offer. Purchase Subscription
Smart Takes Broadband to Rural Areas
October 26, 2006 - Smart faces its most pressing challenge: slowdown of organic subscriber expansion. The carrier’s high margin performance had rested on driving high volumes of traffic—mostly SMS—through a rapid expansion of its subscriber base. Purchase Subscription
Highlights from the Seoul and Tokyo Asia-Pacific Workshop
October 26, 2006 - 46 percent of the 3.7bn total global telecoms subscriptions came from Asia-Pacific at YE2005; by YE2010, around 2.35bn of the global 5.63bn subscriptions will come from the region.
Apertio Promises to Radically Change Core Network Economics
October 11, 2006 - This month’s 3 Questions features our discussion with Wallace Ascham, Co-founder and Director of Strategic Partner Marketing at Apertio. Purchase Subscription
Guatemala: Upholding the Prepaid Paradigm
October 4, 2006 - A quick look at Guatemala’s mobile subscriber base reveals a high proportion of prepaid customers-90 percent and growing. Purchase Subscription
Telmex: Affordable Internet Plans Reaping Rewards
September 28, 2006 - Mexican telco incumbent, Telmex, has developed one of the more progressive affordability plan offerings in the telecommunications world. These customized plans allow customers to mix and match services according to their needs, has reaped significant rewards for the company. Purchase Subscription
Brazil: Traffic Migration
September 21, 2006 - Brazil’s fixed operators still control the majority of the country’s voice traffic, despite the fact that mobile accesses outnumber fixed ones 2.5 to 1. Purchase Subscription
FMC Potential: A US$25bn Market?
September 14, 2006 - We expect the number of operator-driven FMC households to reach nearly 40m by 2010, annually generating about US$40bn in services revenue annually. Purchase Subscription
Some Key Points About IMS
September 14, 2006 - As a fixed-mobile convergence and SIP application enabler, IMS is the best existing solution on a carrier’s migration path to all-IP. Purchase Subscription
Spain: It’s All About Telefonica
September 7, 2006 - Continuing a process begun in 3Q05, the Spanish incumbent Telefonica is successfully stabilizing its retail broadband market share after years of decline. Soon after starting this stabilization, Telefonica doubled speeds of all broadband packages free-of-charge. Purchase Subscription
The Evolving IMS Services and Applications
August 31, 2006 - IMS is designed for a cost-effective transition to a service-centric world. In an environment in which carriers are competing against more nimble rivals, services have shorter life cycles and face stringent time to market requirements. Purchase Subscription
The Evolving IPTV Business Model
August 31, 2006 - The introduction of video services calls for a fundamental business transformation for telcos as they become media and entertainment companies. Purchase Subscription
The Evolving Triple Play ARPU Dynamics
August 31, 2006 - It would stand to reason that triple play would increase ARPU; broadband offerings and voice bundles tend to be based on flat rates, limiting upward or downward flexibility. Purchase Subscription
The Evolving VoIP Service
August 31, 2006 - The most aggressive portal VoIP, Skype, is shifting to PSTN calling. VoIP services can be categorized by three stages, each a progression from the former and each increasingly disruptive for telcos. Purchase Subscription
Asia-Pacific: Broadband Access
August 24, 2006 - Growth in Asia Pacific will continue to be characterized by a slowdown in developed markets such as Japan and South Korea, which will be overshadowed by surging emerging markets like India and China. Purchase Subscription
Advanced-IMS: IMS Simplified, or Just More Complicated?
August 17, 2006- On July 27, Verizon Wireless and a group of vendors that includes Cisco, Lucent, Motorola, Nortel, and Qualcomm, announced a new IMS/MMD initiative called Advanced-IMS (A-IMS). Purchase Subscription
Carphone Warehouse Shows Power of Unbundling
August 17, 2006 - UK telecoms group Carphone Warehouse is experiencing tremendous success with its £20.99 telephone and broadband bundle, in which the broadband element is offered for “free.”
Australia: Regulation & Telstra
August 10, 2006 - With Telstra’s continued hold of the local loop and with other ISPs still being subject to Telstra’s access pricing rules, Pyramid Research expects prices in narrowband and broadband segments to remain high. Purchase Subscription
How Fixed Telcos Can Combat VoIP
August 3, 2006 - Inevitably, VoIP will make its way into all markets—whether delivered by portals, third-party operators, cable companies, or telcos. With this unstoppable tide, fixed operators may have to radically rethink business strategies based around PSTN revenues, but in the meantime there are a variety of steps that may slow the spread of VoIP:
Brasil Telecom Profile
August 3, 2006 - Brasil Telecom Participações SA is one of the fixed-line telecommunications companies that resulted from the breakup and privatisation of Telebrás by the Brazilian Federal Government in 1998. Purchase Subscription
South Africa: Enter SNO
July 27, 2006 - Growth in the South African fixed-line sector has been fuelled by broadband adoption, although ADSL tariffs are still considered fairly high both locally and in comparison with other markets in the region. Purchase Subscription
VoIP: The Inevitable Creep of Google, Yahoo! and other Big Internet Players
July 20, 2006 - VoIP has been nothing short of a nightmare for fixed operators. Faced with the onerous choice of losing PSTN revenues to third-party VoIP services, or losing revenues to in-house VoIP, telcos can do little to stem the accelerated decline of voice revenues in an inevitable zero sum game. Purchase Subscription
A la Carte and Pay TV: Growth Catalyst or Disruptive Force?
July 6, 3006 - A la carte TV programming received a major setback in the US market with the defeat of a bill proposed by politicians (led by Senator John McCain). According to the FCC, a la carte TV will help decency efforts in broadcasting and bring down the pricing. By contrast, cable providers argue that a la carte programming would result in less choice and higher prices for consumers. Purchase Subscription
Honduras’ Prospects for Fixed Communications
June 29, 2006 - Wireline service revenues are expected to grow at a CAGR of 3.9 percent from 2005 to 2010. Overall, local voice services account for the largest share of revenues in the fixed communications market, representing approximately US$108m in 2005. Purchase Subscription
Triple Play Discounts: Are They Really Necessary?
June 22, 2006 - Belgium’s altnet, Telenet, does not follow the traditional triple play model of offering bundles with a discount. Rather, the operator is betting on the price value and service differentiation of each individual product (telephony, broadband and TV) to simply sell itself. Purchase Subscription
Deutsche Telekom Secures Its VDSL Network
June 14, 2006 - In August 2005, DT announced that it planned to invest 3bn Euro in building a high-speed, next generation network. Purchase Subscription
Belgium: Telenet’s Unconventional Triple Play Strategy Continues to Reap Rewards
May 31, 2006 - Telenet is the largest cable operator in Belgium. The company provides cable TV, broadband, and telephony services in Flanders, the northern region of Belgium. Purchase Subscription
China: IPTV Offering Expected to Boost Broadband Adoption
May 23, 2006 - At the end of March, China’s two fixed operators indicated that they will expand their IPTV trial areas to six more cities in two other provinces. Purchase Subscription
Telefonica Flexes Its IPTV Muscle
May 16, 2006 - Spanish incumbent Telefonica launched its Imagenio (the name is a combination of the words “imagine” and “genius”) IPTV service in 2004 as a mainly defensive proposition, seeking to counteract the push of cable-based triple-play services of voice, pay TV, and broadband. So far, the service is succeeding, celebrating 200,000 connections at YE2005. Purchase Subscription
Alcatel-Lucent: Why Vendors Need Scale, and Why Others Will Follow
April 20, 2006 - The proposed merger between Alcatel and Lucent is another in a series of deals highlighting the ongoing quest for scale in the global telecommunications market. Purchase Subscription
IPTV in Brazil: A Challenge for Telcos
March 23, 2006 - Facing increasing competition from mobile phones and the resurgent cable industry, Brazilian fixed operators are getting ready to deploy television services over DSL, a service otherwise known as IPTV. Due to regulatory constraints, offerings will at first be limited to video-on-demand services; operators will need to find ways to circumvent adverse regulation at a latter date. This regulatory uncertainty, coupled with a strong native broadcast industry, will impact the development of IPTV negatively, as will the development of DTT. Purchase Subscription
How Alternative Carriers can Survive the Wireline Market Shakeout
March 23, 2006 - When Portuguese alternative network (altnet) operator Sonae Networks launched a hostile bid for incumbent Portugal Telecom at the beginning of February, the move added a wrinkle to the impending consolidation of the European wireline market. Sonae is not merely an altnet; it is an altnet on the expansion trail. Altnet success and, ultimately, existence will hinge on service differentiation, clever usage of multiple play and investment in next generation infrastructure and CPE. Purchase Subscription
Triple Play in Chile:
March 9, 2006 - The recent VTR-Metropolis merger dramatically altered the Chilean telecommunications market, creating a dominant triple-play provider overnight. Purchase Subscription
KT Accelerates Toward FMC:
Feb 23, 2006 - Market incumbent and technology pioneer, KT Corporation, has announced US$3.1bn CAPEX guidance for 2006 despite a dismal revenue performance during its earnings call for the last quarter. Purchase Subscription
Mexico: How Axtel is Positioning Itself for Growth:
Jan 26, 2006 - In 2005, Axtel began to shift its strategic positioning in order to achieve future growth. Purchase Subscription
Pyramid Research Predictions for 2006:
Jan 12, 2006 - 1. Carrier margins will decline over the course of the year, most notably on the fixed side. Purchase Subscription
Australia: What’s in Store for the Broadband Market?
Dec 28, 2005 - By 2004, Australia had enjoyed an impressive 120 percent CAGR for the last three years in broadband subscribers.
DSL Keeps Fixed-line Operators Happy in Central & Eastern Europe:
Dec 28, 2005 - The DSL revenue market in Central and Eastern Europe will more than quadruple over the next five years growing from US$0.8bn in 2005 to almost US$4bn in 2010. Purchase Subscription
IPTV is About Broadband, Not TV:
Nov 29, 2005 - Successful IPTV deployments are more about selling broadband than about selling television. While telcos are leaders in the broadband space, they remain novices in the pay-TV market. Purchase Subscription
Residential VoIP in Brazil:
Nov 23, 2005 - Brazil’s three regional incumbents, Brasil Telecom, Telefonica, and Telemar all have announced plans to launch residential voice over IP (VoIP) solutions by YE2005. Purchase Subscription
Is IPTV Ready?
Nov 17, 2005 - The IPTV marketplace offers an often confusing dichotomy; in Europe, players such as FastWeb and Free Telecom are offering IPTV services to millions of subscribers.
Yahoo!: Still a Growth Story:
Nov 7, 2005 - Founded in 1994, Yahoo! has grown to become a leading Internet brand globally. Purchase Subscription
VoWLAN: Banking on the Enterprise Opportunity:
Nov 7, 2005 - The marketplace is warming up to VoWLAN. Purchase Subscription
Israel: Fixed-Line Incumbent in Foreign Hands:
Nov 7, 2005 - After months of negotiations, the government’s sale of a 30 percent stake in fixed-line incumbent Bezeq was finally completed in July. Purchase Subscription
China: Navigating IPTV Licensing Rules:
Nov 7, 2005 - In May 2005 the Shanghai Media Group (SMG), a municipal broadcasting and cable TV operator, received the country’s first and only IPTV license... Purchase Subscription
IPTV Technology Challenges and Considerations:
Nov 3, 2005 - The drive to IP is inevitable as the demand for personalization and customization grows. Cable networks are optimized for what they do:
IPTV Success lies in Triple Play for Telcos:
Oct 25, 2005 - Telcos may be counting on IPTV to revitalize their businesses, but the competition they will face in the pay TV market will be expensive, relentless and possibly damaging. Purchase Subscription
Portugal: Broadband Taking Off, but Further Battles Loom:
Oct 18, 2005 - Encouraged by government support, both at the executive and regulatory levels, broadband penetration in Portugal is rapidly climbing. Purchase Subscription
VDSL2: Filling the ADSL-Fiber Gap:
Oct 14, 2005 - On May 27, 2005, the International Telecommunications Union (ITU) ratified the new VDSL2 standard, which promises a considerably improved performance compared to ADSL platforms. Purchase Subscription
IPTV: PCCW Successfully Banks on Content:
Oct 14, 2005 - In September 2003, PCCW, Hong Kong’s incumbent fixed-line operator, became one of the first wireline operators in the world to launch an IPTV service. Purchase Subscription
Do You Know IMS? You Should:
Oct 14, 2005 - This year, IP Multimedia Subsystem (IMS) made an appearance on the stands of all major equipment manufacturers at 3GSM in Cannes. Purchase Subscription
Equipment Vendors and WiMAX:
Oct 14, 2005 - Own, Develop, or Resell: With the relative uncertainty over WiMAX only balanced by its promise, the world’s largest telco equipment suppliers face a dilemma in their approach to this new technology:
Is BPL Another Pipe Dream?
Sept 29, 2005 - The promise of Broadband over Power Line (BPL) delivering high-speed Internet access to households through electrical wall sockets has driven recent activity from investors. Purchase Subscription
Hutchison Stands Up To PCCW With a Triple Play Service:
Sept 29, 2005 - Hutchison Global Communications (HGC) announced in July 2005 that it will also offer pay TV services by distributing Galaxy Satellite Broadcasting Limited’s satellite pay TV service, SuperSUN, over its broadband network. Purchase Subscription
PCCW Goes for Quadruple Play:
Sept 1, 2005 - Hong Kong’s fixed incumbent PCCW re-entered the mobile market - after leaving three years ago - by purchasing 60 percent of Sunday Communications. Purchase Subscription
ADSL2+ Moving Center Stage in Germany:
Sept 1, 2005 - ADSL2+ is receiving increased attention from German telcos, like T-Com, Debitel, QSC, Versatel and Tropolys who have all signaled their intention to offer services over ADSL2+. Purchase Subscription
Best Practice: PCCW Proves Content is King for IP TV:
August 18, 2005 - PCCW’s NOW TV saw ARPUs increase 84 percent from US$7.34 in 4Q2003 to US$13.50 in 4Q2004. Purchase Subscription
The Future of IP TV? Belgacom Wins Belgium’s Football Rights:
Aug 4, 2005 - Last month, Belgian courts confirmed the award of the country’s football –also known as soccer- TV rights to fixed carrier Belgacom. Purchase Subscription
Argentina’s Burgeoning Broadband Market:
July 7, 2005 - After a three-year slump in Latin America’s broadband market the sector is now growing healthily. This is most evident in Argentina, which ended 2004 with 431,548 broadband users, an increase of over 102% compared to December 2003. Purchase Subscription
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