November 2018 – Telecommunication PFA

Russian Telecommunications Market To Be Worth More Than 30bn In 2012

Posted on November 29, 2018 by blogger

Current situation

According to the latest report The telecommunications market in Russia 2011. Development forecasts for 2011-2015 published by PMR, a market research company, the value of the telecommunications services market in Russia increased by 17.3% year on year to 27.3bn in 2010, from approximately 23.2bn in 2009. The growth rate measured in local currency was lower and amounted to 10%. It should be noted that PMR last year forecasts concerning the telecoms market value in 2010, excluding exchange rate fluctuations, assumed the growth rate of 4 p.p. lower than the actual result.
Overall economic recovery in the country continue to be one of the main market growth drivers in 2010. The demand for telecommunications services in Russia went up after the crisis which hit the Russian economy end of 2008. In 2010, after a sharp decline in 2009, operators also increased the investments in the construction of new networks and the improvement of service quality.

The Russian telecommunications market has been steadily increasing, starting in 2000 with the development of mobile telephony and internet access. In the last two years, the market was affected by the migration of voice traffic from fixed to mobile networks and also to the internet and, as a result, the segment of fixed-line telephony began to stagnate. The growth of mobile voice services also declined with the increasing maturity of this market. The most dynamic during recent years was the segment of internet access, including both fixed and mobile technologies. This market was an area of business growth for the operators in 2009-2010, and it will continue to play a role of the development driver for the entire telecommunications market in Russia, considering its relatively low maturity.
Mobile telephony is by far the largest segment of the Russian telecommunications market. Based on the revenue reports provided by operators, total sales of mobile voice and non-voice services in Russia in 2010 amounted to RUB 710bn (17.7bn), which is 10.6% more than in the previous year measured in roubles, or 17.9% measured in euros. The mobile telephony market accounted for the largest part of the telecommunications spending in Russia last year. Even if to exclude mobile VAS and to consider only the mobile voice segment, the mobile telephony share would reach the level of almost 50% in 2010, while the total number of registered SIM cards already exceeded 150% of the total population of Russia.
Provision of access to the internet remains the most dynamic and fast growing segment of the telecommunications market in Russia, which increased by 30% year on year in 2010. This growth of the market was driven by quickly increasing penetration of fixed-line broadband but also enhanced by the fast expansion of 3G networks and the operators active promotion of mobile internet.

3G and LTE uptake

With the commercial launch of UMTS networks in 2008, an increasing contribution to the growth of the mobile telephony market in Russia is already coming from non-voice value-added services provided in mobile networks, especially from broadband internet. Development of 3G networks is also changing the landscape of the Russian mobile telephony market. Operators from the Big Three group got a new source of revenue from the development of mobile broadband internet, which became the main 3G application.
Meanwhile, two concepts of the future LTE networks development in Russia have been recently presented. In December 2010, the Russian government proposed to create LTE Consortium which was expected to come up with proposals related to the development of 4G networks in the country. The consortium was created by the leading national telecommunications operators, including Rostelecom, MTS, VimpelCom and MegaFon. Smaller regional operators were not invited to join. Mid of 2011, LTE Consortium presented a report which states that the available radio spectrum is feasible to be shared between four operators and each of the operators will need to invest RUB 85.7bn (2.1bn) to install approximately 20,810 base stations covering over 10,400 of locations in the country with more than 1,000 of inhabitants, i.e. to build a federal LTE network. The condition is that the operators will use simultaneously a 690-880 MHz and 2,500-2,700 MHz radio bandwidth having 30 MHz spectrum each. In March 2011, there was also an agreement between MTS, MegaFon, VimpelCom, Rostelecom and Skartel, which had already had available a bandwidth for LTE, that Skartel would build LTE networks in 180 cities and towns in Russia and would give each of the operator 20% capacity in this network. Skartel expects to invest approximately RUB 60bn (1.5bn) in the project.
It is not certain yet what kind of strategy for LTE development will be applied in Russia. Either the government will announce a tender for four federal licences or Skartel will build the network. A real barrier for the development of the LTE network in the country is the fact that radio bandwidth is already used by military communication systems and the investments in conversion are considered to be very high. All in all, the most probable scenario now could be the launch of the first LTE networks in Russia not earlier than in 2014 comments Pawel Olszynka, a PMR analyst and one of the report authors.

Short-term forecasts

Macroeconomic development forecasts for Russia for 2011-2012 are positive. GDP is expected to reach 4.5% annually. This remains a good background for the business development and investments in telecommunications services and networks. The growth in the consumers confidence boosts the demand for IT and telecommunications services and facilitates the spending on personal computers, mobile phones and the internet.
The Russian telecommunications market will continue its upward trend over the next two years or so, triggered by the growing internet services market, both in fixed and mobile networks. One strategic advantage of the Russian ISP market over other Central and Eastern European countries is its big size, poor development and territorial coverage, therefore, almost all providers and all wire and wireless technologies will have a chance to get their niche. In a broader perspective, the services connected with the telecommunications market, e.g. digital pay TV, will also play a more important role. The mobile market in Russia will not be driven by simple emission of millions of SIM cards, but rather by attracting customers to actively use new services. Non-voice and more advanced value-added services will continue to gain in significance and an increasing proportion of mobile carrier revenues will come from this source.

This press release is based on information contained in the latest PMR report entitled Telecommunications market in Russia 2011. Development forecasts for 2011-2015

For more information on the report please contact:
Marketing Department:
tel. /48/ 12 618 90 00
e-mail:

Opportunity At Home How Telecommunications Are Working For You

Posted on November 21, 2018 by blogger

This world is becoming a more and more interesting place to live. There is currently more of a breadth of opportunity at home than ever before. So many things that people used to travel long distances to do, they can now do from their bedroom.

It seems that there is such easy access to so many forms entertainment, news, music, and information right at your fingertips, that days that used to be spent working to survive are now spent foraging for new and more intricate ways to stimulate your mind. All of this advancement in the modern lifestyle is due to one thing; Telecommunication.

Today, telecommunication is a 1.3 trillion dollar industry, making up three percent of the gross world product in 2006. In short telecommunication is simply any sort of communication between two or more people over a distance; that does not involve physical contact. While the earliest forms of telecommunication involved smoke signals, drums and flags, today telecommunication devices make up a variety of every day home appliances, televisions, telephones, radios, and computers. These everyday items have made it so there are many options for at home opportunity. Many people neglect just how many opportunities to learn and to expand and to earn money telecommunications offer us.

The current boom in telecommunication technology has had a great impact on society in both positive and negative ways. The ability to communicate with nearly everyone in the modern world has made for more opportunity at home, particularly when it comes to at home careers. Life at home is full of chances to be productive, in that a person can perform an at home job, while still having the time to perform all of their other daily tasks.

Areas of at home work include data entry, taking surveys, marketing, pitching stay at home business products such as Tupperware and Mary-Kay; the possibilities are endless. The option of staying home to work has created a lot of freedom for many people, particularly students, stay at home parents, and the elderly. It is now easier to pay bills, keep in touch with friends over social network sites, order products, and do your homework. Yet most of the time when we think about all of these advantages to having a busy home life, we do not always consider the changes that these things have made to our collective physical and psychological health.

The key to maintain a happy, healthy, and safe home life in the aftermath of the technological revolution is simply to reflect. Think of all of the things that you expose your mind to, and how these things affect the way that you think and feel. Be aware of all of the opportunity at home that is now within your reach, and take advantage of this opportunity. Imagine the way that you would live in a state of nature, and expose yourself to the great outdoors. This is cultural evolution. The key is to adapt.

Fibre Optics Cabling- The Ultimate Choice In Telecommunication

Posted on November 11, 2018 by blogger

With the time, technology introduced fiber instead of copper wire. Now people are enjoying the gift of technology knowingly or unknowingly. Telephone cabling, fiber optics cabling, cabling services are helping people to enjoy communication too the fullest. As such if we go back in the history of telecommunication we used to have fiber connectivity.

Fibre optics cabling, was not at all new concept entirely. Fibre optics cabling, was available through cabling services since long. But now it has been prevailed more dominantly. Research and development have proved that this cabling is highly cost effective. Hence every company has started adopting this cabling system. The potential research has successfully increased the capacity of these fiber cabling. Now it has been increased exhaustively. These are easy and comfortable to use and the cost is highly affordable. These two properties of fiber cabling forced telecommunication fraternity to adopt fiber cabling happily.

Fiber optics cabling has become the spinal cord in cabling services or cabling systems across the globe. Now lets have a look on the advantages of these fiber optics cabling. Fiber cabling safeguards your security from all the four sides. This quality helps government organizations and bank very much where security is a main concern. Another significant feature is speed where data can be transmitted. This feature is very advantageous to health care industry. So hospitals install this fiber cabling because of the result it produces. It has been proved life saving in many of cases. So hospitals sure log for these cabling fibre cabling only.

Fibre optics cabling in cabling services or cabling systems act as intrusion prevention also. It can protect your cabling from all sorts of intrusion. Fiber cabling can offer you longer length with smaller diameter clubbed with lightest weight. Installation and up gradation is very easy. You can get it done with help of a professional. There are two types of fiber cabling you can decide according to your needs. One is single mode fiber and the other one is multi mode. Multiple mode has multi paths to reach its destination. And as the name indicates Single mode has only one path to reach the destination as well.

After having a thorough survey, you can decide which one you need to go for. Seek the help of a professional for installation. And tell them what type installation you need particularly, whether you would for indoor installation or out door. Indoor installation means not to worry about the environment disturbances. You can be relaxed and worry free. Fibre optics cabling, through telephone cabling and cabling services have a small check list. That is firstly you need to decide on installing fibre through inner duct is suitable for you? Next you need to decide on the distance. Then you have to go to method, which method you need to adopt.

Mistrust In U.s. And India Impacts Chinese Telecom Equipment Suppliers

Posted on November 5, 2018 by blogger

There are rising concerns in the United States and India over perceived security risks associated with using telecommunications equipment made in China, potentially slowing global sales growth for Chinas major gear makers, according to china market research experts iSuppli Corp.
Citing concerns over espionage, a group of U.S. senators last week asked the Obama administration to review a bid from Chinas Huawei Technologies to supply telecommunications gear to Sprint Nextel. Meanwhile, Huawei and fellow Chinese equipment maker ZTE reported that the Indian government has started blocking purchase orders placed with them in mid-February.
According to iSupplis market intelligence; the stakes are enormous as the combined global market for wired and wireless infrastructure telecommunications gear expected to amount to exceed $65 billion in 2010, and rise to more than $83 billion in 2014.
Obstacles in India

Indias move to obstruct the orders from the Chinese telecommunications has kicked off a sequence of events that resulted in billions of dollars of lost revenue for global telecom market vendors and significant project delays for Indias telecom service providers, said Lee Ratliff, Senior Analyst (Broadband & Digital Home) at iSuppli. Indias concern stems from suspicions that foreign-made equipment particularly Chinese gear represents a significant security risk given the possibility that sensitive information could be transmitted to foreign governments through firmware back doors.
As pieced together from accounts given by numerous service providers and equipment vendors, India started requiring all equipment purchase orders to be reviewed by the government for approval before allowing authorization. While Western vendors experienced severe delays in the approval process, Chinese vendors purchase orders were rejected outright. However, India has never acknowledged that a ban existed, and says simply that orders were put on indefinite hold while being investigated.
Indias Economic Times said that, until June end, a total of 450 orders amounting to more than $2 billion had been put on hold due to the security clearance process. Of these, 27 had been approved all with Western vendors like Alcatel-Lucent, Ericsson and Nokia Siemens Networks.
In May, Indias state-run telephone company BSNL announced that Huawei and ZTE would be excluded from bidding on a $500 million GSM expansion project. This was mostly to avoid delays because of the security clearance process. The decision came despite the fact that BSNL had chosen Huawei as a GSM vendor for a project earlier in the year that had since then been cancelled, telecom market research from iSuppli indicated.
Road block in U.S.

Chinese telecommunications gear makers have been facing obstacles when doing business in the United States even before the recent concerns expressed by the senators.

Huawei and ZTE rank among the top telecom equipment vendors globally, but neither has been able to crack the U.S. market despite more than a decade of effort, Lee Ratliff said.

Lingering concerns over security have reportedly led the U.S. government to ban transmission of its sensitive data over networks using Chinese equipment. A 2008 Pentagon report to Congress highlighted Huaweis links to the Chinese government, furthering concerns. Huaweis efforts to buy its way into the U.S. market through acquisitions of 3COM, 2Wire, and Motorolas wireless unit have all been scuttled due to concerns of a U.S. government veto.

Fair or not, Huaweis opaque ownership and structure, as well as its CEOs well-known ties to the Peoples Liberation Army and the Communist party, are likely to handicap the company in India, the United States and other countries at least until Huawei becomes considerably more transparent and consciously distances itself from Beijing.
Growth Inhibitor

The key elements that have made Chinese vendors successful inexpensive labor, a home-field advantage in Chinas hot telecom market, and access to an almost unlimited line of credit though government banks are unlikely to disappear any time soon, Lee Ratliff said.

However, the vendors face serious opposition in several of the largest markets left to penetrate. Having already picked the low-hanging fruit, these companies may find it more difficult to grow in the future than they have in the past. And each pause on the way to growth for the Chinese companies is an opportunity instead for Western vendors to get back on their feet and adjust to the new competition.