ROW Short Takes

Global revenue per user down: TeleGeographyNew data from TeleGeography indicates that wireless operators around the world are garnering less average revenue per user (ARPU) despite increasing subscriber additions and overall revenue (see table below). The company’s GlobalComms update shows that only North American and Western European wireless carriers have recorded second quarter 2005 ARPU levels near those reported in last year’s second quarter. According to the figures, Eastern Europe, Asia Pacific and Africa saw the greatest decline in ARPU at 27%, 18% and 12% respectively. Global ARPU was down 13%. TeleGeography suggests that third-generation wireless could be the saviour of wireless carrier revenue as evidence from certain operations shows considerably higher per user revenue. For example, the company notes Hutchison 3G UK reported Q2 2005 ARPU of $62 compared to the Western European average of $37.40. Hutchison’s Australian sister company had ARPU of $61.80 compared to $18.90 for the Asia Pacific region. Alcatel SA creates mobile TV business unitFrance-based Alcatel SA is capitalizing on the growing 3G services trend and has created a mobile TV division, dubbed Alcatel Mobile Broadcast. The company notes that while there are currently mobile video and broadcast services already available, "they have limitations in terms of global coverage and the number of users simultaneously receiving these channels in the same cell." The objective of the company is to "develop the appropriate technologies, build the necessary ecosystem" and promote the system to both mobile operators and broadcasters. Etienne Fouques, president of Alcatel’s mobile activities, said in a news release, "Alcatel’s unique positioning in both mobile and satellite activities worldwide will help to bring a complete and efficient mobile TV solution to our customers based on a hybrid offer combining terrestrial and satellite coverage." Musiwave to support Alcatel PacketVideo solution for music serviceMusiwave will now support Alcatel’s PacketVideo Network Solutions for its mobile music offering. Under terms of the agreement, Alcatel’s server can be deployed as part of a turnkey mobile music service provided by Musiwave or to develop new products with specific features. "We added Alcatel’s solution as one we can support because it offers advanced technology combined with carrier-class reliability and scalability," said Musiwave COO Guillaume Decugis. "We look forward to working with Alcatel to ensure that our carrier customers have a mobile music service that continues to deliver increased functionality and features." Mitec Telecom considers options to get back on trackMontreal-based Mitec Telecom Inc. is considering a variety of alternatives going forward to strengthen its balance sheet. "Because our shares are trading at a level that we believe is substantially lower than the company’s true value, our board of directors has initiated the process of exploring strategic alternatives. Our objective is to protect the integrity of the company and to maximize shareholder value. While we still have considerable work ahead of us and challenges to be addressed, I believe that Mitec now has the capacity to be a much more viable and focused enterprise," president and CEO Keith Findlay said in a news release. In a presentation at the firm’s AGM, Findlay detailed initiatives to strengthen the company, including rejuvenating the global corporate structure, revamping the organizational structure, empowering a new leadership team, rebuilding customer relationships, focusing the product and market strategy, and investigating strategic alternatives. Barrie deploying wireless infrastructure from DragonWaveThe City of Barrie in Ontario is expanding communications network facilities to cover a greater portion of the municipality. The city is deploying equipment from Ottawa-based DragonWave Inc., which will provide data throughput rates up to 200 Mbps. The project began in June with the deployment of a four-node ring connecting 25 locations throughout the city. Two more rings are planned, but won’t be completed until other facilities are built. Calgary and Fredericton in Canada have significant municipal wireless coverage, while Philadelphia and San Francisco are the two most well-known American cities deploying citywide wireless networks. Colligo inks 31 new customer deals in third quarterVancouver-based Colligo Networks continues to secure market share for its "instant networking" software by inking 31 new customers to deals in the third quarter of 2005. The company’s software is primarily used by small, medium and large accounting firms. At the end of the third quarter, Colligo’s accounting customer based topped 70,000 users. Among the new customers are Clark, Schaefer, Hackett & Co., Vitale, Caturano & Co., and Blue & Co. Barry Jinks, Colligo president and CEO, said, "Many of our customers have moved to a paperless audit system and face the challenge of how to network team members’ computers. Colligo replaces the more arduous server-cable system, and swapping memory sticks and diskettes with a server-less wireless network – connecting Wi-Fi-enabled laptops direct via the radio signal transmitted from the computers." Wi-LAN developing, deploying in Eastern EuropeWi-LAN Inc. has inked an agreement with Trans-World Communications Group (TWC) to develop a specialized version of Wi-LAN’s Libra WiMAX platform to work in Eastern Europe. The development deal is supported by a purchase order from TWC to deploy Wi-LAN’s Libra equipment on a national basis in the Ukraine. Equipment certification is currently underway and the network is expected to be completed by 2007. According to a news release, the network will "provide high-speed data, voice and video services to businesses and residences of rural towns and villages. Additional orders are expected over the next two years as the network is expanded through the Ukraine." OZ secures deal for mobile email with CingularMontreal-based OZ Communications Inc. has inked an agreement with Cingular Wireless, the United States’ largest wireless carrier, to provide the back end software required for a mass-market mobile email solution. Under terms of the deal, OZ will provide Cingular with its OZ Mobile Email Solution, which will power Cingular’s mobile email service. OZ noted in a news release that ordinary consumers can now stay in touch via email on their mobile devices. "The OZ Mobile Email Client provides Cingular Wireless subscribers with an intuitive email experience that mirrors that of their PC, making access to AIM Mail, AOL Mail, MSN Hotmail, Yahoo! Mail and SBC Yahoo! Mail accounts as easy as A-B-C," reads an October 24 news release. Ericsson scoops up Marconi business unitTelecom equipment giant Ericsson has bought the telecom business unit of Marconi in a deal that is worth approximately US$2.1 billion. The Swedish company has acquired the following businesses from Marconi: optical networking, broadband and fixed radio access network, softswitch, data networking and services, and relevant telecom services activities, as well as the Marconi trademark and associated brands. Ericsson plans to divide all the businesses into two units: network equipment and network services. Wireless as primary phone to grow in United States: In-StatMore than one-third of American consumers will use their cell phone as their primary phone by 2009, according to research from In-Stat. The research firm notes the figure could jump from its current 9.4% level to anywhere between 23% and 37% in four years. "Those who are considering wireless substitution for landline are primarily motivated by lifestyle issues, as long as they don’t have to give up too much in terms of quality, reliability and services. Wireless carriers can stimulate substitution by continuing to attract customers to advanced wireless features and educating them about availability of number portability," reads a market alert from In-Stat.

ROW Short Takes

News | 11/01/2005 5:00 am EST

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