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Tuesday, January 12, 2010
Today's News Headlines
* IMS revenues to grow 16% 2009-2014 - analyst - Regional
* Motorola seeing double digit growth with barcode readers - Regional
* Roundup: Number portability, Tandberg, virtual clinic, Copaco - Regional
* Government accepts OECD invitation - Chile
* Competition could stiffen if Telecom Argentina goes to local investors - report - Argentina
* Bidding rules for 3G auction snapped up - Mexico
* GT&T lands submarine cable - Regional
* Vivendi to hold offer for remaining 13.2% stake in GVT - Brazil
* IN BRIEF Telephone number portability at 4.2mn in 2009 - Brazil
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* IMS revenues to grow 16% 2009-2014 - analyst - Regional
Revenues from mobile IMS (IP Multimedia Subsystem) in Latin America should see a CAGR of 16% from 2009-2014, totaling US$2bn in 2014, ABI Research analyst Aditya Kaul told BNamericas.
Revenues from IMS in the region totaled some US$1bn in 2009, he said. Worldwide, in 2009 approximately US$8.4bn was spent on IMS. That figure will rise to US$17.3bn in 2014, Kaul said in a report.
Sparking that growth will be the deployment of LTE (Long Term Evolution) networks around the globe, added Kaul.
Though growth is just below the global average, Latin America is still seeing more investment in IMS than expected, largely driven by converged network services. It is almost head to head compared to North America in terms of investment, according to the analyst.
"Operators in Latin America are using IMS to bridge their different access networks. Telefónica, for example, who has significant holdings in the region, has been using IMS heavily, and so have other operators like Brasil Telecom, Telemar-Oi and Telcel," Kaul said.
While IMS has been talked about for several years, the transition to IMS worldwide has been slow.
According to the analyst, IMS has been plagued by a lack of standardization at the application level, leading to high costs.
Furthermore, there is the issue of complexity and operators' hesitation to interfere with their mobile switching center (MSC) platforms which are tied into circuit switched services like voice and SMS, he said.
"There is also the lack of IMS capable devices until now, although that is changing with RCS [rich communications suite] capable devices. And it's only now that we're seeing the introduction of data services in mobile and the rise of mobile applications. LTE is also a major factor for the introduction of IMS which is starting to kick in," Kaul said.
According to an ABI report, LTE has traditionally been seen as a largely data-centric set of technologies and only recently has it been recognized it can include good voice handling capabilities.
One must remember that most operators still earn 70% of their revenue from voice and SMS services, and that has been a stumbling-block for LTE, Kaul said in the report.
A group of operators and OEMs - AT&T, Orange, Telefónica, TeliaSonera, Verizon, Vodafone, Alcatel-Lucent, Ericsson, Nokia Siemens Networks, Nokia, Samsung and Sony Ericsson - has now agreed on the "One Voice Profile," a standard that defines a viable solution for voice in LTE.
That, says Kaul, should encourage more operators to migrate to LTE, with the resulting greater adoption of IMS.
There is one more hurdle for IMS, however: it is complex and expensive. The effort now will be to simplify and reduce cost, he said.
By Patrick Nixon
Business News Americas
* Motorola seeing double digit growth with barcode readers - Regional
Motorola (NYSE: MOT) is seeing double digit growth in Latin America for its barcode solutions designed for improving operational efficiency, Alfonso Caraveo, Motorola's enterprise sales director for the company's enterprise mobility business in Latin America, told BNamericas.
"We're really seeing double digit growth in Latin America as an emerging market; Europe, Asia and the US are consolidated markets. Companies have been using bar codes in applications such as storage control management, tracking of manufacturing lines, charging to department stores and self service," Caraveo said.
Motorola has been installing barcodes for vertical markets in the region including manufacturing and retail, education, distribution, transport and logistics, healthcare, tourism, energy and services such as public security, the executive said.
The company recently announced the implementation of a barcode system for Mexican transport company Transportes Pitic, which expects to see a 50% reduction in operational costs, or US$50,000 a year of which 33% is expenses related to lost or damaged cargo.
Most Motorola barcode readers can connect wirelessly to Wi-Fi networks using the 802.11b/g standard. Some devices connect using the 802.11a standard.
Companies tend to use the barcode readers to achieve greater control and a broader view of the business in order to improve the service to the end customer, Caraveo said.
By Patrick Nixon
Business News Americas
* Roundup: Number portability, Tandberg, virtual clinic, Copaco - Regional
Some 2,000 requests for number portability (NP) were filed in Peru from when the program was launched on January 1 up until January 5, and roughly 350 requests were accepted in that period, telecoms regulator Osiptel reported.
The watchdog said it would be handling customer complaints that operators were taking too long in porting numbers.
It also said it would look into users feeling duped by publicity leading up to NP. While the move itself was being marketed as free of charge, those looking to port their lines actually have to pay for a new SIM card, which was questioned by consumer association Aspec.
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Norwegian video conferencing company Tandberg's regional director for Mexico and Central America, Rafael Chávez, presented awards to those partners that most stood out in 2009, online news source InfoChannel reported.
The best partner award went to Grupo Dice as the wholeseller with highest sales volume, while Tandberg's main resellers were Excel del Norte, IP Total and TI América. The company also gave awards to its 10 best sales partners.
Chávez said the company is looking to grow in the double digits this year, "bringing video even to the desk, not just concentrating on video conferencing rooms."
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The company RaciMed is introducing telepresence in Chile for the provision of e-medicine under a program called "virtual clinic," local paper El Mercurio reported.
Health centers are being set up throughout the country with a sophisticated system of high resolution cameras that allow doctors in capital Santiago to monitor patients. The equipment allows the doctor to review vital signs, look over electronic charts and exams and interact with the local medical team.
"This is a direct consultancy service via telepresence for colleagues that have less expertise, that do not have a determined specialty or who are in areas that are hard to access. It's a type of optimized telemedicine," cardiologist and one of the project founders, Roberto Aspée, was quoted as saying.
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Paraguay's state-owned telecoms operator Copaco maintains a debt of 12.5mn guaraníes (some US$3,000) that has gone unpaid to suppliers in the city of Concepción, local paper ABC Color reported.
The current head of the Copaco Concepción office, Abrahán Rodríguez, questions the validity of the purchases made under his predecessor, Luis Fernando Vázquez.
By Business News Americas staff reporters
* Government accepts OECD invitation - Chile
Chile has become the Organization for Economic Co-operation and Development's (OECD) 31st member and the organization's first in South America under an accession agreement signed on Monday (Jan 11) in Santiago by OECD secretary general Angel Gurría and Chilean finance minister Andrés Velasco.
"The 'Chilean way' and its expertise will enrich the OECD on key policy issues," said Gurría during the signing ceremony in Santiago. "Chile has been engaged in a continuous effort to reform its economy. This experience will be an asset for the OECD as we try to address issues such as inequality or sustainable pension systems." The agreement requires ratification by congress.
Since it began talks with the OECD in May 2007, Chile has taken significant steps by introducing new laws to end the banking secrecy that provides a shield for possible tax evasion and enabling prosecutors to pursue companies suspected of bribery and corruption, OECD said in a press release.
"The Chilean economy has been growing at over 5% a year for the last 20 years. Impressive progress has been made in reducing poverty, although more still needs to be done. Chile's groundbreaking pension reforms in the early 1980s have served as a model for many other countries."
The OECD said that Chile's prudent tax policies gave it the necessary financial leeway for stimulus measures to support demand and employment when the financial crisis hit in 2008.
In recent months, and as part of the OECD accession process, competition laws and consumer protection in the country have been strengthened. New legislation has established a clear separation between the state and the board of copper mining company Codelco, Chile's largest state-owned enterprise, OECD noted.
In the private sector, a new law will boost transparency by requiring increased information for financial markets while combating misuse of insider information and reinforcing requirements for external auditors, the OECD said, adding that another major reform has seen the extension of public pension coverage.
The OECD will release its latest economic survey of Chile on January 21 in Santiago. The survey sets out the OECD's assessment and recommendations on the main economic challenges faced by Chile.
With both Chile and Mexico as members, and thanks to increasingly close cooperation with Brazil, the OECD said it will have substantially strengthened its links with Latin America. Four other countries - Estonia, Israel, the Russian Federation and Slovenia - are currently negotiating to become members of the organization, which is also working closely with other major economies, including China, India, Indonesia and South Africa, as well as Brazil.
By Business News Americas staff reporters
* Competition could stiffen if Telecom Argentina goes to local investors - report - Argentina
Competition in Argentina's telecoms sector could pick up if control of Telecom Argentina (TEO) (NYSE: TEO) passes over to local investors, BBVA Bancomer wrote in a research note.
Last week the government published in the official gazette that it was giving European telecoms operator Telecom Italia (NYSE: TI) until February 25 to sell its stake in Sofora - the holding company controlling Telecom Argentina. Otherwise it would step in and possibly fine the telco, or alter or confiscate the company's national license.
TI holds a 50% stake in Sofora, while the remaining 50% is owned by Argentina's Grupo Werthein, which according to BBVA, looks like the top candidate to acquire the control of TEO.
Argentine investment group Corporación América is also reportedly negotiating a strategic alliance with Mexican billionaire Carlos Slim to acquire TI's stake in Sofora.
Other groups reportedly interested in acquiring TI's stake, worth an estimated US$500mn, include Argentine triple play operator Telecentro, investment group Pegasus, Grupo Román and Brazilian group Andrade Gutierrez.
"Though there is uncertainty over whether TI's exit is imminent, we believe that its transition to the hands of local investors would cause a pickup in competition to satisfy the government's demand that the market become more competitive, at least in the short term," BBVA analyst Andrés Coello said in the note.
According to Coello, in a country where mobile penetration is now 117%, gaining market share means boosting promotions to attract the clients of other companies, which could mean a drop in Arpu.
The official gazette publication from last week instructs TI to report to the government on the progress of the sale before January 15.
Several companies have expressed an interest in acquiring the stake after CNDC's ruling last August that ordered TI to sell on the grounds that Spanish telco Telefónica's indirect stake in TI violates Argentina's antitrust laws.
According to CNDC, competition in the local market is affected since Telefónica already owns Telefónica de Argentina (NYSE: TAR), the other main telco in the country.
TEO accounts for 30.1% of the country's mobile lines and 47.3% of landlines.
By Business News Americas staff reporters
* Bidding rules for 3G auction snapped up - Mexico
A total of 93 companies have acquired bidding rules for an auction for spectrum in Mexico's 1.7GHz-1.9GHz bands, local telecoms regulator Cofetel said in a statement.
Cofetel said a combination of incumbent operators and potential new entrants bought the rules that went on sale for a mere three days, from January 6-8.
Forty four companies acquired the documents for the 1,850-1,910/1,930-1,990 MHz band tender, and 49 companies bought rules for 1,710-1,770/2,110-2,170 MHz.
The watchdog is hopeful that the auctions will see new entrants to the market and that the spectrum will be used for offering 3G mobile data services.
Those operators named as having picked up rules include local mobile market leader Telcel of América Móvil (NYSE: AMX), third-placed Iusacell and Mexican fixed line operators Axtel and Maxcom.
In addition, Mexican broadcast giant Grupo Televisa and cable TV operator Megacable bought bidding rules, along with Spain's Telefónica (NYSE: TEF).
The deadline for the submission of bids is May 25.
By Business News Americas staff reporters
* GT&T lands submarine cable - Regional
Guyana telecoms incumbent GT&T landed on Sunday (Jan 10) a 1,240km submarine cable system (SG-SCS) being built between Suriname and Guyana, the Stabroek News reported.
The newspaper said the investment needed for the cable is US$30mn, though previous press reports have said the amount would be double that.
Speaking at the landing ceremony, President Bharrat Jagdeo said the administration is working with several overseas companies to help leverage the enhanced network communication to boost Guyana's ICT sector as a whole.
He also reiterated the company's previously stated plans to invest in adding a connection to Brazil. Jagdeo said definitive plans for this venture were expected to be finalized during the second or third quarter of this year.
GT&T is 80% controlled by US telecommunications holding company Atlantic Tele-Network (ATN). The government said last year it intends to sell its minority share in GT&T and use those resources to develop the ICT sector.
The president also said he hoped that with SG-SCS, disruptions to telecommunications for the people of Guyana would be a thing of the past.
Up until now, the country has relied on a sole submarine connection to the outside world, the Americas II, which in recent times suffered damage and plunged the country into a temporary communications blackout.
The cable will next be connected to Curipe Bay in Trinidad and then neighboring Suriname by the end of the year. GT&T has partnered with Suriname state telco Telesur, Global Marine Systems Limited (GMSL) as well as several other companies to carry out the project.
The facility will make available 3,000 times the current bandwidth capacity in use locally, providing an improvement in the delivery of telecommunications and related services to Guyana.
By Business News Americas staff reporters
* Vivendi to hold offer for remaining 13.2% stake in GVT - Brazil
French conglomerate Vivendi will hold a public offer for the 13.22% of shares it does not already own in Brazilian telephone carrier and internet service provider GVT Holding, GVT said late Friday (Jan 8) in a statement.
Vivendi acquired control of GVT in November, after outbidding Spain's Telefónica. The French group now owns 85.7% of GVT's shares.
Vivendi will pay 56.00 reais a share for roughly 18.2mn outstanding shares in GVT, representing the 13.22% stake. The offer will be adjusted in line with Brazil's main lending rate, known as Selic.
GVT operates mainly in Brazil's south and center-west.
http://www.aebrazil.comAgência Estado
* IN BRIEF Telephone number portability at 4.2mn in 2009 - Brazil
In 2009, only 4.2mn people requested number portability in Brazil, according to a balance of last year, published Monday (January 11) by the ABR Telecom body managing number portability in the country.
ABR Telecom also said that in 2009, 3.2mn clients concluded migration, representing 1.56% of the 210mn fixed line and mobile phones in Brazil. Of total migrations, 2.28mn were mobile phones and around 1mn were fixed wire.
Portability began to be introduced in Brazil in September 2008, and it was available throughout the country by March 2009.
To date, 4.52mn clients have requested ports since the implementation of the system, and 3.48mn have migrated.
http://www.aebrazil.comAgência Estado
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In-deph interview
* Preparing the network for application enablement
Victor Agnellini
Corporate VP of transformation
Alcatel-Lucent
Regional
http://www.bnamericas.com/interviews/telecommunications/Victor_Agnellini_,Alcatel-Lucent,1/169479470
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Main companies covered in today's news
* TIM Participações S.A.
http://www.bnamericas.com/company-profile/en/TIM_Participacoes_S,A,-TIM_Participacoes/169479470
* Microsoft Corporation
http://www.bnamericas.com/company-profile/en/Microsoft_Corporation-Microsoft/169479470
* Organismo Supervisor de Inversión Privada en Telecomunicaciones
http://www.bnamericas.com/company-profile/en/Organismo_Supervisor_de_Inversion_Privada_en_Telecomunicaciones-Osiptel/169479470
* Telecomunicações de São Paulo S.A.
http://www.bnamericas.com/company-profile/en/Telecomunicacoes_de_Sao_Paulo_S,A,-Telefonica_Telesp/169479470
* GVT Holding S.A.
http://www.bnamericas.com/company-profile/en/GVT_Holding_S,A,-GVT_Brasil/169479470
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