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Showing posts with label telecom operators. Show all posts
Showing posts with label telecom operators. Show all posts

Wednesday, July 9, 2014

Samsung’s Q2 Profits Below Expectations

Korean device manufacturer Samsung stated that according to its preliminary figures, second-quarter revenues were KRW 52 trillion , down from 54 trillion  in the same quarter last year, and that operating profits fell 23 percent year-over-year, to KRW 7.2 trillion. Analysts had expected profits of KRW 8 trillion. In a statement, Samsung attributed the shortfall to increased competition in China and Europe and to soft smartphone and tablet sales.
Samsung’s statement sought to contextualize the disappointing results and sound a somewhat optimistic note for the near future: “The second quarter is a seasonally weak period for smartphone demand in China. Samsung also saw an increase in inventory due to price competition and a weaker demand for 3G products ahead of the expected growth of 4G LTE products in the Chinese market.… The company cautiously expects a more positive outlook in the third quarter with the coming release of its new smartphone lineup.” Nonetheless, the preliminary Q2 figures for the manufacturing giant tell a larger story.
One cause of Samsung’s difficulty is the rise of the big-screen (5- or 6-inch) smartphone, sometimes known as the “phablet,” which has been championed by none other than Samsung. Such devices have been cannibalizing tablet sales. In addition, with the maturation of smartphone technology, users are finding that their devices have sufficient functionality and durability that they do not have to upgrade them as often as before. And finally, Samsung and other high-end device manufacturers, such as Apple, are finding their domain encroached upon by cheaper and simpler handsets that, with the advance of technology, can now perform enough key smartphone functions to deter many consumers from spending the extra money on a state-of-the-art phone. The Samsung Q2 figures are by no means the last word on the Korean giant’s business, but they are part of an evolving narrative about the maturation of the worldwide device market.

The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes noteworthy developments in the telecoms industry from around the world. For past issues or to learn more about The Story of The Week :  http://www.tarifica.com/storyoftheweek.aspx  

Monday, June 30, 2014

Sandvine to Support Smart’s Bite-Sized Data Plan Store

Smart Communications, the leading MNO by market share in the Philippines, has selected Canada-based Sandvine, an intelligent broadband solutions provider, to support its mobile internet store, PowerApp, which offers bite-sized, application-specific mobile data plans.  PowerApp, developed by Smart’s technology partner, Chikka Philippines, offers email, chat, photo and social packages in 15-minute, 3-hour or per-day increments with unlimited access.



Emerging-market operators such as Smart are increasingly adopting application-specific data pricing as a strategy. It offers a versatile means of tailoring plans according to customers’ usage, allows customers to use apps such as Facebook or YouTube without fear of bill shock and gives them a clear understanding of what they are paying for. Apart from benefiting from an incremental revenue stream, operators can also potentially upsell their customers as data usage grows and continually adapt their offerings to market needs. In emerging markets, where many users may not be able to afford a full-scale data plan, allowing them to access the apps most relevant to their needs not only encourages greater data consumption but puts mobile data within reach of a wider population. It also enables operators to attract users to data at an earlier stage of their mobile-use timeline. The success of this pricing strategy is increasingly evident—one example is Zimbabwean MNO Econet Wireless’ introduction of unlimited Whatsapp bundles, which we reported in the 22 May Tarifica Alert. Another is Facebook’s recent acquisition of Finnish startup Pryte, which enables operators to offer bite-sized data plans; the acquisition is aimed at supporting Facebook’s Internet.org initiative in emerging markets.
However, app-specific data pricing can also be relevant to certain segments of developed markets, such as the youth demographic. Since some users may utilize most of their plan allowances on certain apps only, offering an app-specific data plan may allow operators to better meet the needs of these subscribers. Furthermore, operators could offer app-specific plans or even unlimited data plans with short-term validity to coincide with popular events such as the FIFA World Cup. Operators could also price apps such as YouTube that consume a large amount of data at a different rate from apps such as Twitter that use less data. App-specific pricing also creates the possibility of allowing sponsorship of data for specific apps, which would constitute an additional revenue stream for operators. In the U.S., MVNO FreedomPop has already announced plans to launch app-specific and bite-sized data plans as well as sponsored apps in Q3 2014. These plans, currently in test mode, will be offered alongside FreedomPop’s basic service, which provides users with 500 MB of 4G data per month with no associated monthly fee.

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

Friday, June 27, 2014

3 UK to Launch App for Calls, Texts Via Wi-Fi

Mobile operator 3 UK has announced a new app called Three inTouch that allows customers to talk and text over a Wi-Fi connection. The app will be available beginning in early August and will be offered free to all contract, SIM and pay-as-you-go customers. Any minutes or texts used are charged against a customer’s existing monthly allowance or prepaid credit. The Wi-Fi usage is not charged against the customer’s data allowance.

This is an interesting service option. The calls and texts and not carried over IP; rather, a Wi-Fi signal conveys the calls and texts to 3 UK’s cellular network, which then completes the connection. Unlike with a VoIP or other OTT service, the charges are made to the user’s existing voice and text allowances. So it appears that the purpose of Three inTouch is not to compete with OTT providers but to ensure connectivity for 3 UK customers, especially if they are in a place where cellular coverage is poor or nonexistent, as long as a Wi-Fi connection is available.

 According to the operator, once the app is installed, the transition from standard service to Wi-Fi-assisted service is intended to be seamless.
Also in the U.K., operator EE has announced trials of a Wi-Fi voice service that is intended to create a “zero-defect” calling experience in the country’s busiest regions and get rid of “whitespots,” or no-service areas. In the U.S., T-Mobile currently has a similar service in which calls can be placed over a Wi-Fi connection and are charged based on monthly plan minutes.
“Using Wi-Fi to fill in low- or no-coverage “whitespots” makes sense in a country like the U.K., where free public Wi-Fi is available in many areas. In other markets, it is an open question whether operators would do better to invest in expanding and strengthening their cellular networks or in promoting the proliferation of Wi-Fi. In truth, while apps such as Three inTouch can offer some advantage to users, they are, in the long run, no substitute for reliable, gap-free mobile networks. “
John Dorfman,
Editor-in-Chief,
The Tarifica Alert

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