Anatel App Allows Sharing of Mobile Experiences

Brazilian regulator Anatel has announced that the new version of its Anatel Mobile Service app allows users to share their experiences using mobile services. The app is available for Android and iOS devices and will soon launch on Windows. The accounts of the experiences shared by users—such as loss of signal, slow or unstable connection, dropping of a connection, bad connection or lack of signal—are available in a geo-referenced map covering the past 30 days. Accountability on the part of mobile operators is a major issue in consumer relations, and Anatel has taken a strong position. By making it easier for Brazilian mobile users to keeps each other informed about quality of service and to compare and contrast it across operators, it will likely encourage churn and put pressure on operators to improve their networks in order to remain competitive. While the app has no regulatory “teeth,” we believe that it represents a challenge to operators.

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Notable Global Telecommunication Developments

Asia/Pacific

Indian mobile operator Tata DoCoMo has launched SimplySwap, a handset protection service for its postpaid customers. New and existing subscribers who purchase a handset from the operator can enroll in the program, which will allow them to swap their devices for the same brand and model twice each year. All swapped handsets include a new six-month warranty. The SimplySwap service charge includes a monthly fee, which is included in customers’ bills as a well as a fee when the device exchange is completed. These charges depend on the type of device and start at INR 89.00 (US $1.46) for the monthly service fee and INR 400.00 (US $6.57) for the corresponding swap fee.

Europe

U.K. mobile operator Vodafone will launch a mobile wallet service next month. In a partnership with Visa, the MNO has developed services that will work with a SIM card that is embedded with NFC technology, which will enable mobile devices to be used for contactless payments. The Vodafone wallet, which will be available for Android phones, will allow users to pay for travel on the London Underground and to make person-to-person payments.

Latin America

Three of the four major operators in Brazil have requested a stop or changes to the upcoming 30 September auction for 4G services of the 700 MHz band. Operators Vivo, Claro and TIM Brasil have all said that they disagree with certain parts of the 700 Mhz auction rules and want them changed. The carriers are complaining that although the rules set a minimum on how much the operators would need to pay TV companies for the cleanup of

spectrum, they do not set a cap on those payments. The operators also oppose the extra payment that is being imposed on telecom service providers that currently own 4G licenses—basically the major MNOs. The regulator, Anatel, has indicated that the auction will not be postponed; however, it will judge all appeals against various aspects of the 700 MHz band auction at a meeting on 18 September.

Middle East/Africa

South Sudan’s largest mobile operator, Zain, has partnered with Huawei, a global technology solutions provider, and the United Nation’s peace and security promoting organization, UNESCO, to provide internet access to schools in the country. Zain’s base stations will be used to power the project, and the first phase of this initiative will bring internet access to more than 3,000 school children.

North America

Verizon Enterprise Solutions, the business and government solution provider of U.S. mobile operator Verizon Wireless, has announced that Verizon Auto Share, a secure platform that will enable drivers to rent, drive and return cars and other vehicles, will be available before the end of 2014. The Scan & Go feature of the service’s app, which is available for smartphones and tablets, will provide drivers with access to their chosen vehicle and with the ability to start and drive it through a key fob that appears on the app. The app targets customers of rental car companies and auto dealers.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:  http://www.tarifica.com/TarificaAlert.aspx

Brazilian Government Approves Telecom Tax Breaks

The Brazilian government has approved over BRL 15 billion (US $6.6 billion) in federal tax breaks for mobile telecom and broadband infrastructure projects. The program will grant tax breaks to 13 types of broadband networks, with a particular focus on projects aimed at expanding or improving fiber-optic and mobile networks. So far, 20 companies have submitted 1,400 proposals for projects. The goal of this initiative is to substantially increase access to the internet and internet speed, which have consistently lagged behind government targets.

While we have criticized the Brazilian government’s uneven and Byzantine taxation and regulation approach in the past, this newest initiative appears to be an important step in the right direction. Telecom infrastructure is the lifeblood of a 21st-century economy—creating avenues to instantly share information, opening new trade opportunities and fostering growth for both cottage industries and  global enterprises—but it is extremely expensive to both build and maintain. These expenses are amplified in isolated rural communities, which are precisely where this type of instantaneous connectivity could have the greatest impact.

Much of Brazil’s sizable population is scattered across remote areas and is hungry for the promised opportunities and lifestyles of a modern economy. To realize this promise, the country will need a vibrant and reliable telecom industry. These tax initiatives should be viewed as only the beginning. Many local and municipal governments still impose their own hefty taxes on broadband cables, and the regulator Anatel’s mobile spectrum auctions (see Regional Developments) appear aimed at gouging operators for as much up-front payment as possible rather than encouraging the expansion and strengthening of mobile networks. If Brazil’s leaders can reduce these headwinds to infrastructure investment, we expect that any immediate losses will be offset several times over by growth—in the telecom sector and in the economy as a whole.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:  http://www.tarifica.com/TarificaAlert.aspx