#3, Thursday 2 June 2016 CommunicAsia visitors Days 1 & 2: 14,053, Overseas visitors: 6,934 (49%) live update at www.telecomasia.net Digital transformation must be balanced by humans and ethics isn’t efficiency – it’s making customers happy. “All these algorithms and AI have to be balanced by ethics – it’s not a yes-or- no choice, but you need to find the bal- ance between them.” Leonhard stressed that he’s not a pes- simist about the future of telecoms. “I think the future is a brighter place than Hollywood makes it look.” However, he said that while we shouldn’t be afraid of the coming digital era, we should approach with caution and think seriously about who is in control, who enforces the rules, and who con- sumers ultimately trust. “It’s time to take responsibility. Security, moral standards, rules and ethics become crucial as every- thing becomes connected.” Leonhard also advised telcos to aban- don their old business models. John C. Tanner Digital transformation isn’t just about technology – it’s also about humans, and telcos need to find the right balance be- tween the two in order to successfully transform. That was the message from Gerd Le- onhard, futurist and CEO of The Futures Agency, during a keynote at the morning plenary of the CommunicAsia2016 Sum- mit on Wednesday. Leonhard said that digital transforma- tion is being driven by technology trends such as exponential connectivity (i.e. the Internet of Things), big data, intelligence (intelligent assistants and AI), and man- machine convergence. An example of the latter is the rise of the smart device as an external brain, and the cloud as a global brain. “This is chang- ing how we interact with computers – we touch them and speak to them,” he said. “We’re seeing increasingly powerful com- binations of man-machine convergence. The machine sits in the cloud and does all the work for you.” While this creates all kinds of new service and app possibilities, and creates efficiencies, it also impacts humanity in ways that raise ethical issues that can’t be ignored, from loss of jobs via automation to AI making non-emotional decisions about those jobs, for example. “Technology is exponential, humans are linear. Technology will grow exponen- tially faster but you will not live exponen- tially faster,” he said. “Technology has no ethics, but human societies demand it. So we have to figure out how to use technol- ogy without becoming the technology.” This is something everyone in the tel- ecoms/IT value chain has to look at seri- ously, he said. “The purpose of business SPLICE DANCE: Inno Instrument showcases its View 7 core-alignment splicer, which automatically splices fiber optic cables without the need for a connector and with less than 0.1% signal loss. Hence the gratuitous dancers. (Booth: BN3-07) Post-WRC-15, mobile and satellite still at odds over spectrum extended C-band. GapSat CEO Gregg Daffner agreed that the mobile and satellite sectors need to work together to make 5G a reality, and said that satellite wants to be a part of that ecosystem. However, he pointed out that of the two sectors, only one has had to sacrifice spectrum it already possessed towards that end. “We’re the ox being gored in the pro- cess of reallocation,” he said. On the long-contentious topic of ex- tended C-band, Daffner reiterated that coexistence between terrestrial and sat- ellite is simply not possible. However, he added that the satellite industry will stick to its agreement at WRC-15 not to revisit the matter. Daffner did revive the satellite indus- try’s criticism of the mobile sector for not using all of the terrestrial spectrum it’s already been allocated. “Their claims for needing additional spectrum has been overstated for years, and we’re skeptical of John C. Tanner Almost seven months after the conclu- sion of WRC-15, the mobile and satellite sectors haven’t fully reconciled their dif- ferences over spectrum allocations, de- spite having a shared interest in terrestrial evolution to 5G. At a spectrum panel during the broadband track at CommunicAsia2016 Wednesday, Guillaume Mascot, Director of Government Relations for APJ (Asia- Pacific, Japan) and India at Nokia, said that the outcome of WRC-15 was gener- ally good news for mobile broadband. “When you look at things like con- nected cars, connected homes, 5G – this is the future where we’re headed. We need to connect everyone and everything with the best possible connection,” he said. “We need to move forward to ensure the best outcome for users.” He added that it was important for mobile to work with the satellite sector to develop a complementary approach, particularly on the contentious topic of Continued page 3 ... Official Mobile Apps “Event Information at Your Fingertips! 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LATEST NEWS 3 2 JUNE 2016 AsiaSat, Hughes bring VSAT connectivity to Myanmar’s KBZ across Myanmar. Philip Balaam, VP of sales and business development at AsiaSat, said that with the scheduled late 2016/early 2017 launch of AsiaSat 9 – whose payload includes a dedi- cated Ku-band beam for Myanmar – KBZ and its clients will further benefit from increased power, en- hanced coverage and smaller, less costly antennas for VSAT broad- band and DTH services. Stephane Lamoureux, CEO of KBZ Gateway and CIO of KBZ Group, said that it’s used VSAT ser- vices in Myanmar before, but that bandwidth availability has been minimal. “It’s good for browsers and not much else. Between the OvERNIGhT WIRE new capacity and the Hughes gate- way, we’ll be able to run more ap- plications such as VoIP.” Vaibhav Magow, regional direc- tor of Asia-Pacific at Hughes, adds that Jupiter includes a multi-app gateway. “So they’ll be able to build on what they have now and fulfill future ambitions.” The earth station – which went live last week but was formally an- nounced June 1 – includes two sat- ellite networks that will connect all KBZ Group company sites coun- trywide. KBZ Gateway estimates a potential to connect more than 6,000 sites over the next five years. KBZ Group signed a deal with Hughes in August 2015 to supply the Jupiter system. 3 TIME dotCom Q1 profit falls 33% on forex losses Malaysia’s TIME dotCom has reported a 33.5% slump in net profit for its fiscal first quarter to 37.6 million ringgit ($9.1 million), due largely to forex losses of 8.1 million ringgit. But revenue grew 2% to 175.2 million ringgit, with recurring data revenue growing a strong 23% year-on-year and voice revenues up 15%. “We have managed to deliver a decent set of numbers, which we aim to improve on in the remaining quarters,” TIME CEO Afzal Abdul Rahim said, commenting on the results. The company expects new revenue sources from its investments in the Asia- Pacific Gateway and FASTER subsea cable systems once they become operational in the second half of the year. John C. Tanner Myanmar-based KBZ Gateway Co announced it has signed a partner- ship deal with AsiaSat to provide satellite-based networks serving Myanmar with high speed data connectivity services. KBZ Gateway also unveiled a new earth station in Bago powered by a Jupiter VSAT system from Hughes Network Systems, which will support high-performance data services for businesses and consumers throughout the country. On the connectivity side, KBZ will use C-band and Ku-band ca- pacity on AsiaSat 4 and AsiaSat 7 to establish high speed data networks Thai telcos expected to invest $4.2b on 4G by 2018 Thai regulator NBTC expects the nation’s mobile operaors to invest at least 150 billion baht ($4.2 billion) on 4G network expansion by 2018. The regulator’s vice-chairman told the Bangkok Post that that each operator will need to invest at least 25 billion baht annually to expand their wireless broadband infrastructure to meet burgeoning demand. There are currently around 103 million active mobile subscriptions in Thailand, and this is expected to increase to 170 million by 2017. The regulator intends to set a single tariff ceiling for 3G and 4G wireless broadband services, setting the cap at 69 satang per minute for voice and 26 satang per megbyte. Myanmar ministry taps Intelsat for VSAT, cellular backhaul tively. Terry Bleakley, Intelsat’s Re- gional VP for Asia-Pacific, said the MOTC will use the transpon- ders to provide cellular backhaul for KGSN, the mobile network be- ing built by the MPT, KDDI and Sumitomo. “It will also be used for the government’s which is currently a 600-site net- work currently on Thaicom that will move over to this network,” he said. “And the ministry told us on Friday that they see a lot of other opportunities for growth going forward.” “We will leverage [Intelsat’s] cellular backhaul services, respec- satellite solutions to extend 2G and 3G communications services beyond urban centers and ensure that all of our citizens have access to higher bandwidth, superior quality and more affordable mo- bile broadband connectivity,” said Khin Maung Thet, Permanent Sec- retary, Ministry of Transport and Communications, in a statement. “Today’s announcement further underscores our commitment to building a more digitally inclusive society.” By 2018, MOTC plans to move to the new, high power services on the recently announced Intelsat 39 satellite, the replacement space- craft at the 62E orbital location.3 John C. Tanner Intelsat announced that the Ministry of Transport and Com- munications (MOTC) of Myan- mar signed a multi-year, multi- transponder agreement to utilize services on two Intelsat satellites to advance the deployment of the country’s wireless communica- tions infrastructure, and expand broadband access for businesses. The MOTC will use C-band satellite services on Intelsat 902 located at 62° East, and Ku-band services on Intelsat 906 located at 64° East for VSAT network and VSAT network, Taiwan’s cellcos want 2G migration subsidies to be maintained Taiwan’s major operators have urged the government to continue providing subsidies aimed at helping 2G users migrate to 3G or 4G ahead of the expiration of 2G licenses a year from now. Industry body the Taiwan Telecommunication Industry Development Association has cautioned against regulator NCC’s proposal to have a single operator continue to provide 2G services after the licenses expire, the Taipei Times said. While the operator would be able to allocate a proportion of its 4G bandwidth for 2G use, the service would need different base stations, making it a tricky proposition, the industry body has argued. Taiwan still had around 710,000 2G users as of the end of April, NCC statistics show, with around 460,000 subscribed to Chunghwa Telecom’s 2G service and about 180,000 subscribed to Taiwan Mobile. “Digital transformation must be balanced by humans and ethics” from page 1... “Think about the auto industry – in the future we will share more cars, rather than buy more. So they won’t sell cars – they’ll sell mobility,” Leonhard said. “In the same vein, telcos can’t sell traditional telecoms services. Networks and infrastructure was a good busi- ness model when it made sense, but the future is add- ing value with services, experience and platforms.” Ultimately, Leonhard concluded, the key to digital transformation is this: “Be on Team Human, not just Team Future. Team Human is about humanity, emo- tions, intelligence, and purpose. Be aware of social con- tracts. Embrace technology but don’t become technol- ogy. And spend 5-10% of your time thinking of what will be next, not what is.” 3 Provider of the Official Daily Newspaper and Online News Service MANAGING DIRECTOR Jonathan Bigelow, ASSOCIATE PuBlIShER Jessie Cheung, EDITOR-IN-ChIEF John C. Tanner, MANAGING EDITOR Stefan hammond, ART DIRECTOR Pauline Wong An Event Organised by Singapore Exhibition Services Pte ltd © 2016 Questex Media Group llC All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage or retrieval system, without permission in writing from the publisher. The editorial content is not necessarily the opinion of the event’s organizer.
4 OPINION Free Subscription, please visit us at booth # BM4-07 2 JUNE 2016 The cloud paradigm shift affects everyone Stefan Hammond We talk a lot these days about paradigm shifts, and how the telecoms sector in particular is undergoing its own para- digm shift towards software-based net- works and services, and how they must transform themselves – not just net- works but their very culture – to survive the current paradigm shift and thrive in the digital economy. The same can be said for their cus- tomers. Or at least older ones like me. Recently I was telling a 20-something friend about a Latin music group popu- lar in New York in the 1960s. I’d discov- ered them a decade ago and to this day zealously guard my CDs and the music files contained therein. From vinyl to CDs to Blu-ray, the physical file is my provenance and my pathway to whatever I wanted to watch or listen to. No matter how obscure, as long as I have the file, I can enjoy it. “Is this the right album?” said my friend, holding her smartphone. As I was describing the music, she’d fired up Spo- tify, found the music, then started port- ing it to her Bluetooth speaker. That moment was a masterclass in how much the content paradigm has shifted. My thought process defaults to “where’s my file?”, while hers goes straight to “where’s my access?” She sim- ply reached into the cloud and plucked the music from it. I haven’t been Spotified yet, but I’m not totally cut off from the cloud, either. My big cloud experience is via Kindle Unlimited: a rotating ten-book library. I can travel to a city, download a few guides, and when I return from my trip I return the files and replace them with something else. Read it, toss it, get fresh material. Magic. A subscription-based rotating li- brary may sound like a bad deal for au- thors who want to make money from sales royalties. And certainly you don’t see a lot of bestsellers on Kindle Unlim- ited (or indeed much of anything from major book publishers like MacMillan and Penguin). On the other hand, some authors without the grand portfolio of (say) Stephen King or Janet Evanovich slap their novels up on Kindle Unlimited just to gain readers. Guess what: it works. I spend my morning commute reading obscure pulp-fiction novels (and some aren’t half-bad). Authors frequently include emails and I enjoy dropping the occa- sional line. Between that and my friend’s Spo- tify demo, I’ve come to realize the same experience can be had with music – be- cause if the cloud is good for anything, it makes content more available. Sadly “available” isn’t the same this as “discoverable” – at least not yet. Dis- coverability is one of the holy grails of digital content and services, and while recommendations and big-data analyt- ics have come a long way, we still have a way to go before analytics engines can figure out your content tastes with any reasonable level of accuracy and point you to cool stuff you didn’t even know you liked. But we’re getting there. In the meantime, we’ll have to set- tle for the fact that the content is there in the cloud, waiting to be discovered – STAT SNAP Public and private cloud revenue from the global carrier cloud market Source: Company data ad Technology Business Research estimates which, again, is a major paradigm shift for music mavens like me who spent a lot of time digging around used record stores looking for buried treasure or half-remembered obscure tunes heard on the radio years ago. In that paradigm, you’re focused on the file, and you go to great lengths to protect it, especially when it’s not commonly available. The cloud has changed that. Between iTunes, Spotify, Bandcamp and dozens of other music services and sites, you can find anything from 60s Cambodian psychedelic pop to Laotian groove, Mau- ritius funk, Mali desert blues, and Japa- nese mathcore. And I’m glad, because rare music be- ing commonly available is a good thing. It took me awhile to catch up with the paradigm shift, but now I realize I was tying myself to the hitching post instead of contacting Uber. 3 CEM Asia Conference Telco SDN/NFV Asia Conference Join Telecom Asia to discuss the future of telcos 11 October 2016 – Singapore 13 October 2016 – Jakarta Taking full ownership of the customer experience Cracking the mystery of network virtualization This October Telecom Asia will bring its CEM and SDN conferences to Singapore and Jakarta, giving delegates the chance to interact and share experience with other telco leaders from the region. For more information, please contact: Jessie Cheung firstname.lastname@example.org +852 2589 1338 For more information, please contact: Jessie Cheung email@example.com +852 2589 1338 CEM_SDN_2016_265x58mm.indd 2 05/28/2016 4:32 PM DigitalNewsletters_265x350.indd 1 05/28/2016 3:31 PM
MARINA BAY SANDS, SINGAPORE 6 BRIEFS 2 JUNE 2016 APAC premium OTT market cued for exponential growth 4K STB market worth $3.65b by 2024 The global 4K set-top-box market is ex- pected to reach $3.65 billion by 2024, ac- cording to a new report by Grand View Research. In Asia Pacific, the 4K STB market accounted for over 25% of the global revenue share in 2014. China and In- dia present considerable opportunities for regional industry growth due to the strong presence of UHD STB manufac- turers. OTT-based streaming devices are becoming the STB of choice for satellite TV providers in these emerging markets. IPTV UHD set top boxes contrib- uted to over 20% of market revenue in 2014. IPTV focuses on network scal- ability, end-user applications, and infra- structure. With IPTV, content is provid- ed through an internet service provider’s own infrastructure, ensuring UHD con- tent streaming across subscribed devic- es. Increasing number of UHD content providers is expected to propel industry growth but high upgrade costs and sub- scription fees for 4K content will chal- lenge the industry growth over the fore- cast period. The report also says that vendors are increasingly offering energy-efficient STB devices, especially in idle mode. Manufacturers and service providers across the globe are increasingly provid- ing advanced UHD STBs equipped with features such as interactive 4K content to be competitive.3 Asia Pacific’s premium OTT market will undergo rapid growth by 2019 despite challenges. A study conducted by MTM – covering 80 participants in Australia, Indonesia and Thailand – reveal sig- nificant challenges to expansion due to broadband infrastructure and content localization, revenues are expected to grow strongly between now and 2019. Figures go from around $85 million in 2015 to $230 million in Australia; from $7 million to $40 million in Indo- nesia; and from $8 million to $45 million in Thailand. Local service providers will own a significant portion of the market and will dominate in Indonesia and Thai- land, while Netflix will be the dominant player in Australia. The study highlights three main challenges to premium OTT market expansion. First, industry executives believe broadband infrastructure chal- lenges and limited access to affordable fixed-line services are significant barri- ers to growth. Second, despite the appeal of inter- national content, respondents believe local-language programming is essential to the proliferation of premium OTT services in Indonesia and Thailand. And third, while the presence of Net- flix will drive OTT market expansion in general, consumers will struggle with Netflix’s one-size-fits-all offering.3 MyRepublic tops first Netflix APAC ISP speed index Singapore’s MyRepublic has been found to provide the fastest average streaming speeds among ISPs in 12 APAC coun- tries in Netflix’s first ISP speed index for the region. MyRepublic provided streaming speeds of 3.78 Mbps under Netflix’s calculations, narrowly beating out StarHub Fiber at 3.71 Mbps. Singapore also had the fastest overall average streaming speeds in the region, followed by New Zealand (3.5 Mbps), Japan (3.39 Mbps), Hong Kong (3.35 Mbps), Taiwan (3.1 Mbps) and Indone- sia (3 Mbps). Australia (2.91 Mbps), Thailand (2.87 Mbps), Malaysia (2.72 Mbps), South Korea (2.68 Mbps), India (1.84 Mbps) and the Philippines (1.82 Mbps) round out the list. New Zealand had the lowest spread between the fastest and slowest ISP. Vodafone NZ provides average stream- ing speeds of 3.58 Mbps, while the slow- est is Trustpower with 3.28 Mbs. Likewise in Singapore, there was only a 0.48 Mbps difference between MyRepublic and Singtel’s DSL service, the lowest-ranked Singapore service evaluated. In South Korea by contrast, top- ranked SK Broadband provides aver- age speeds of 3.03 Mbps, while lowest- ranked D LIVE offers only 1.68 Mbps. In Indonesia, MyRepublic’s local operation provides speeds of 3.31 Mbps, compared to just 1.77 Mbps for Neuviz. The other top operators in their re- spective markets for Netflix streaming speeds are Optus (Australia), HKBN (Hong Kong), Airtel (India), eo Hikari (Japan), Time (Malaysia), HiNet (Tai- wan) and AIS (Thailand).3 average UltraHD will boost pay-TV ROI … eventually For pay-TV players banking on UltraHD to boost revenues and the bottom line, research firm NSR has good news and bad news: UltraHD can boost ROI, but it’s a long-term play, and in any case the bigger risk is not carrying it at all. Recent NSR research forecasts around 300 UltraHD channels on DTH platforms using leased capacity by 2025. (That doesn’t count satellites distributing UltraHD channels to cable and IPTV platforms, or dedicated DTH platforms.) Of those 300 channels, only some will have a direct revenue impact to their re- spective DTH platforms, at least in the short term. “Costs for acquiring UltraHD con- tent will be greater than SD or HD con- tent, resulting in net losses for the first few years of UltraHD operation,” wrote NSR analyst Alan Crisp in a research note. “After 2020, NSR expects a direct positive revenue impact from the intro- duction of UltraHD linear TV channels on pay TV platforms globally.” NSR expects that the large installed base of subcribers with 4K TVs from 2020 onwards will more than offset con- tent acquisition costs after a couple of years, with ARPUs expected to be ap- proximately 10% higher than those of the current high end package ARPUs in most regions. But while ROI from UltraHD may be relatively modest in the long-term, says NSR, the bigger risk is to lag behind the competition. Indeed, a key reason pay-TV platforms carry UltraHD video now is to showcase it to prospective subscribers in hopes of upselling them, or to retain viewers who want 4K con- tent, which is why NSR expects most DTH platforms with UltraHD content will include 4K channels in their top tier packages for the next four years, and start charging additional fees to access UltraHD by the end of the decade once 4K TV uptake starts spiking. “So rather than thinking in purely ROI terms, UltraHD may be just a nec- essary pill multi-channel operators need to swallow, especially in the near term, to stay competitive,” Crisp writes. 3 Organised by: Worldwide Associate: Incorporating: Held concurrently with: www.Satcomm-Asia.com @ Marina Bay Sands, Singapore www.Broadcast-Asia.com @ Suntec Singapore Supported by: Held in: A Part of: Hosted by: Endorsed: CE17AdW265x350_QuestexShowDaily_D1.indd 1 25/5/16 3:05 PM
8 Q&A 2 JUNE 2016 Big initiatives to accelerate digital transformation Joe Deng, Carrier Business President, Huawei Southern Pacific Region, explains the details of Huawei’s “Big Initiatives” strategy that is designed to help telcos embrace digital transformation Show Daily: When Huawei talks about its “Big Initiatives,” you also talk about “ROADS.” What is this, and why is it important to telcos? Joe Deng: “ROADS” encompasses five fundamental characteristics of the ultimate user experiences in a fully con- nected world: Real-time, On-demand, All-online, DIY, and Social. Huawei’s ROADS will foster an open industry ecosystem that enables agile innova- tions, advancing the ICT industry as well as all social sectors in the digital age. Global digitalization is accelerat- ing, and this is improving efficiency and user experience in many areas, including vertical industries, public services, and every aspect of our lives. As this shift becomes more imminent, the telecom industry is facing two major challenges. The first is slowing revenue growth and difficulty of rolling out new services, and the second is exploding bandwidth demand and increasingly complex net- works driving up opex. Operators can no longer grow by merely expanding their user base. They need to find new expan- sion points. The key is new services fo- cused on the ROADS user experience; SoftCOM is Huawei’s strategy for future networks. It helps operators restructure their services, operations, networks, and architecture, so that they are ready for the opportunities and the challenges of the digital transformation. ROADS is key to digital transforma- tion. Huawei is ready to support telecom operators win the opportunities through the digital services that can lay the foun- dation of business success. ICT will become a national endeavor for stimu- lating economic growth and bringing benefits to the society who will able to succeed in a digital world. allows operators to deliver the ubiqui- tous ROADS experience. What will be the impact for opera- tors who follow this multi-pronged strategy? A proven future-oriented telecom network architecture designed to re- shape the telecom industry in terms of service, network, operation and archi- tecture will help operators achieve suc- cessful business transformation. Telco digital transformation will create a path for carriers to come back to the top of the industry value chain. We will help operators restructure themselves in the following areas. First, restructuring services. Opera- tors will go beyond connections to in- crease revenue with new services such as video everywhere, IoT, cloud busi- ness, and “Safe City.” Next: restructuring networks. Ubiq- uitous ultra-broadband will provide key technology propositions and build experience-based networks to improve service quality, capacity, brand and net- work value. Third: restructuring operations – online operations for greater efficiency and delivery of the ROADS user experi- ence. And fourth, re-architecture of net- works to a software defined architecture –an open cloud-based data center with core infrastructure to become a future digital economy enabler. So what are the ‘Big Initiatives’ for digital transformation that Huawei is currently promoting? Huawei believes that operators must transform themselves. We recommends these digital transformation strategies which we call ‘Big Initiatives.’ The first is “Big Video – Everywhere.” Video is vital! Video will or has become a basic telecom service, and it will help operators regain control of the value chain. The second is “Big IT – Enabling”: IT systems which deliver the ROADS experience (hardware, software, ser- vices) and drive digital service capacity. The third Big Initiative is “Big Opera- tion – Agile”: ICT service that guaran- tees the end-to-end ROADS experience, building the network around the experi- ence. The fourth is “Big Architecture – Elastic”: Service-defined networks and Network Function Virtualization (NFV) technologies in data centers to create future networks that can carry any ICT service and allow agile delivery of the ROADS experience. And finally, we have “Big Pipe – Ubiquitous.” With their mas- sive capacity and vast numbers of con- nections, big pipes are the key asset that Joe Deng, Carrier Business President, Huawei Southern Pacific Region Do operators have to implement all five “Big Initiatives” at once, or can they pick and choose? Operators have the flexibility to spend their investment on ‘Big Initia- tives’ based on their company business goals, immediate and long-term strat- egy plan. Operators can plan initially to choose any of the initiatives or a combi- nation based on market needs, business operating model and competition to create differentiation of service offering and value to their customers. Operators will have to deliver new services (video, cloud, IoT, etc.) that create a ROADS user experience. One focus area will be addressing changing customer behavior and user experience using smart devices, which requires a big pipe to carry rich information. Huawei can help telecom carriers and enterprise achieve agile in- novation, accelerated transformation and business success in digital era.3 Booth BE3-01 RESEARCh NOTE 5G and IoT stimulate test equipment market The rapid evolution towards higher fre- quencies and wider modulation band- width, coupled with the advent of tech- nologies such as 5G, is creating growth opportunities for advanced electronic test equipment. However, says Frost & Sullivan, test and measurement (T&M) vendors will find it tough to provide en- gineers with superior equipment at com- petitive prices from both a technical and a business standpoint. A recent report from Frost & Sulli- van finds that the electronic test equip- ment market serving design engineers earned $1.99 billion in revenues last year. That figure is expected reach $2.36 billion in 2021. “Currently, the majority of the rev- enues for these segments come from fre- quencies below 6 GHz. In future, a much higher percentage of revenues will come from frequencies over 26.5 GHz,” said Frost & Sullivan Test and Measurement Industry director Jessy Cavazos. “Tech- nologies such as 5G and higher frequen- cies required in aerospace and defense and automotive radars will translate into a drastic shift in the signal generators, signal analyzers, network analyzers and power meters segments of the electronic test equipment market.” Principal opportunities will emerge from the RF, microwave, and high-speed digital test segments. More signal gener- ators will be needed and function gener- ators and signal analyzers will see higher demand than spectrum analyzers due to their vector capability. Further, the >60- MHz bandwidth segment will account for significant revenues as new technolo- gies require over 1 GHz of modulation bandwidth. Despite budget constraints, says Cavazos, end users have no choice but to upgrade their test equipment in the face of such rapid technological evolution. Test vendor success will be determined by the ability to provide high perfor- mance at competitive prices while ad- dressing the demand for greater ease-of- use with such complex instruments.3
ANALYST VIEW 9 2 JUNE 2016 Value of high-frequency spectrum is about QoS, not coverage or capacity Mark Colville / Analysys Mason Spectrum has traditionally been thought of as being of value to mobile operators due to improving either service coverage or capacity, or both. While high-frequen- cy spectrum provides roughly equiva- lent capacity per MHz to low-frequency spectrum, the low-frequency spectrum has always carried a significant premium due to also offering substantial coverage benefits, including more cost-effective “capacity in the coverage layer” for mo- bile data services. However, while the factors making low-frequency spectrum particularly valuable continue to hold true, its scarcity is reducing in many markets as the 700-MHz band starts to be released. Other factors, such as the growing importance of data speeds, begin to in- crease the relative importance of high- frequency spectrum (where availability of larger contiguous blocks makes deliv- ery of very-high-speed mobile data ser- vices possible). For several years, mobile operators have marketed their services based on peak download speeds theoretically achievable on their networks. Although this approach continues to be useful for operators, mobile subscribers now con- sider average data speeds to be among the most important factors in assess- ing the quality of the service offered to them by different operators. Perceptions of adequate data speeds are influencing consumer choice. For example, Analysys Mason’s Connected Consumer Survey 2016 found that 18% of respondents considering churning to another provid- er were doing so because of experienc- ing poor data speeds with their current provider. This measure of user experience is therefore becoming increasingly valu- able to operators and driving their net- work strategies, most notably in terms of spectrum usage. Similarly, we have ob- served that average data speeds are start- ing to form a key part of some mobile operators’ marketing messages. For example, at the time of writing, the homepage of UK mobile operator EE focused very heavily on promotion of data speeds, claiming as its main head- line: “IT’S OFFICIAL: Our 4G network is 50% faster than any other”, with ref- erence to results from Speedtest.net and EE being named winner of the “Fastest Mobile Network Award 2015”. In gener- al, these types of marketing messages are becoming increasingly ‘front of mind’ for mobile operators. providing a given level of coverage or capacity, commonly referred to as the technical value of the spectrum. In other words, while additional spectrum in- creases capacity per site to result in fewer sites being required (technical value), it also increases the operator’s service of- fering from each site resulting in a net- work performance improvement, which leads to a commercial value. It can be hard for operators to achieve these commercial benefits without hav- ing sufficient spectrum. In particular, the cost of improving network performance (i.e. increasing average user speeds) without new spectrum may be so high that it is unprofitable to attempt to do so. Hence the speeds that an operator offers in practice are likely to be determined by how much spectrum it acquires. The above considerations should feed into mobile operators’ assessments of spectrum requirements and hence spectrum acquisition plans. To gain a competitive advantage, operators will require large amounts of spectrum in harmonized bands, which means using high-frequency spectrum. This means that there is now significant commercial value attached to high-frequency spec- trum and we expect this to continue to be the case for the foreseeable future. Although low-frequency spectrum will always be more valuable on a per-MHz basis, it is arguable that this value pre- mium is starting to narrow as the market shifts towards achieving further increas- es in speeds. Operators need to be able to accu- rately assess the commercial value as- sociated with providing better service quality, including higher average data speed services to their customers. The risk is that otherwise they may miss out on spectrum to competitors placing greater emphasis on commercial value or, alternatively, could overpay for spec- trum if commercial value is overstated, without reflecting increased costs as- sociated with increasing subscriber vol- umes. Similarly, this higher willingness to pay for high-frequency spectrum is an area that is also important for regulators to understand when designing effective spectrum auctions.3 Mark Colville is a principal at An- alysys Mason QoS requires the right spectrum Providing this better user experience can lead to additional revenues for oper- ators, for example through an increased share of gross additions or through higher ARPU, as well as other poten- tial benefits such as cost savings related to subscriber acquisition and retention activities. Having more spectrum helps operators to deliver this better user ex- perience. In particular, aggregating spectrum into larger downlink carriers raises peak data speeds but also more generally helps to provide the higher av- erage speeds valued by many users. The top- and bottom-line benefits described above are commonly referred to as the commercial value of spectrum and sit alongside the network cost sav- ings that spectrum can generate for
11 ANALYST VIEW 2 JUNE 2016 Data to drive modest growth for Asia mobile roaming revenue to 2020 Meanwhile, roaming revenues in In- donesia and India remained under pres- sure in 2015. Indonesia’s third-ranked operator XL saw its roaming revenues decline 17.2% in the first nine months of 2015 compared with the same period in 2014. Roaming revenue pressure has forced operators in both Indonesia and India to actively promote roaming bundles to stimulate roaming data usage. Operators in Indonesia have rolled out data-only bundles and voice/text/data bundles for roamers for a flat fee, with challenger outfit Three offering WhatsApp roaming passes that target outbound travelers. Indian operators are offering discounted per-unit-priced bundles. By 2017 and 2018, respectively, Ovum estimates that Indonesia and India’s decreasing roam- ing data tariffs will spur sufficient data usage from consumer and business us- ers to ultimately lead to growth in total roaming revenues. Compared to emerging markets in Asia, roaming bundles are more estab- lished in Japan and Korea. As such, data roaming tariffs (consumer local) in Ko- rea are expected to fall at a slower rate than in China, India, and Indonesia be- tween 2015 and 2020. Similar to Japan, Nicole McCormick and Dimitris Xydias / Ovum Currently, operators launch bundles with or without government mandates. China, India, and Indonesia do not have specific regulations on roaming, but operators in China in particular have become aggressive in the promotion of roaming bundles. In 2015, the Chinese government launched its “speed increase and tariff reduction” initiative, which urged op- erators to decrease international roam- ing tariffs. Operators in China still offer per-unit roaming pricing but have been marketing data-only roaming bundles, starting from $4 a day for unlimited data, in the wake of the Chinese govern- ment’s decision to lower roaming rates. Ovum expects Chinese data roam- ing traffic will increase 42.6% in 2017 and 38.8% in 2018 as new bundles at- tract first-time roamers and encourage existing roamers to use more data. In turn, we forecast data roaming revenues to increase 6.6% in 2017 and 25.7% in 2018, with total roaming revenues due to increase 4.6% in 2018 as data revenue growth offsets declines in SMS and voice revenues. all operators in Korea offer extensive roaming bundles, including unlimited data. Ovum forecasts the total roaming revenue for the Asia & Oceania region to increase from 2018 by 6.7% due to the expected growth in roaming data usage, particularly in Korea. Korean roaming revenues are projected to increase by 12.3% in 2018 driven by low per-mega- byte tariffs. In terms of the roaming revenue mix, roaming voice revenue made up an esti- mated 69.1% of total roaming revenues in Asia & Oceania in 2015, compared with just 4.1% for SMS. Roaming data revenues’ share of the pie is expected to grow from 26.8% in 2015 to 55.5% by 2020. That growth comes largely at the expense of roaming voice revenues, whose share of the total pie is due to shrink to 43.1% by 2020 as roamers con- tinue to substitute voice and SMS ser- vices with OTT services.3 Nicole McCormick is principal ana- lyst, service provider and markets, and Dimitris Xydias is senior forecaster, forecasting team, Ovum Mobile app revenue outlook remains healthy despite slowing download volumes Mobile device users installed nearly 156 billion mobile applications worldwide in 2015, generating $34.2 billion in direct (non-advertising) revenue. The latest forecast from IDC estimates that these figures will grow to more than 210 bil- lion installs and nearly $57 billion in di- rect revenue in 2020. While the market will continue to grow throughout the forecast period, IDC expects to see slower growth in both application install volumes and direct revenue over time. This trend, which is largely driven by market matu- ration, will see annual install growth fall into the single digits over the second half of the forecast. Mobile application install volume will experience a five year compound annual growth rate (CAGR) of 6.3%. Meanwhile, direct revenue from mobile applications will also experience slower growth by the end of the forecast period, although the five year CAGR will remain in the double digits at 10.6%. Apple’s App Store “ecosystem” cap- tured nearly 58% of global direct app revenue in 2015, an increase of 36% year over year. Meanwhile, Apple’s share of global app install volume was only 15%, down nearly 8% year over year. The sheer volume of Android-based devices in use ensures a greater overall number of installs through Google Play, which captured about 60% of install vol- ume and nearly 36% of direct revenue in 2015. Although Google Play enjoyed sol- id year-over-year growth in both down- loads and direct revenues, the gains were somewhat lower than in previous years. Apple is expected to continue out- performing Google Play in terms of revenue generation. However both eco- systems are more than sufficiently estab- lished to sustainably attract developers. “While they provide a convenient measure of the mobile app economy and its beneficiaries, we caution that preoc- cupation with download/install volumes and associated direct revenue may miss the thrust of changes in the mobile mar- ketplace,” said John Jackson, research VP, mobile and connected platforms. “Facebook and Google continue to dom- inate mobile ad spending thanks to the scale and sophistication of their network effects, with Facebook’s moves to incor- porate news and other interests into its experience will likely pull traffic and in- stall volumes away from discreet apps. Similarly, the emergence of bots – which seek to automate interactions in a con- textually infused way – are another in a series of examples of value being created above the OS layer and even above the app.” 3
12 SPECIAL REPORT Free Subscription, please visit us at booth # BM4-07 2 JUNE 2016 Telecom strategies for navigating Myanmar’s enterprise ICT market Keeping you in touch with Asia’s telcos In the final installment of this three-part report, we look at five ways Myanmar telcos can target enterprise customers 5. Acquire influential enterprise customers and use them as brand ambassadors: Success stories with flagship customers deliver credibility and demonstrate capability. Due to the more personal nature of the Myanmar business environment, word of mouth can make or break a business’s prospect at lightning speed. No amount of PR or advertising can match that in the short term. in Myanmar as well. Some customized SME sector-specific offerings are also evolving, such as Tata Tele’s Bustracker service and Bharti Airtel’s security-based mobile applications targeting schools and business process outsourcing units, which are becoming increasingly popular in India. 2. Provide customized solutions to local conglomerate/MNC clients: Large enterprises in Myanmar are likely to spend significantly on ICT over the next few years. They will require customized support for rolling out major system upgrades and workflow designs to cope up with the new business environment. As many Myanmar enterprises are complex conglomerates with business interests ranging from construction to financial services, off-the-shelf toolkits may not work too well with these customers’ complex requirements. For these businesses, access to round- the-clock customer service and a help desk with efficient technical support, proactive monitoring and incident management and quick turnaround times can be a big differentiator. This requires operators to expand their service offerings to include systems integration, managed services, and cloud-based coupled with project management and alliance management expertise to deliver customized ICT solutions. Operators in are already using partnerships and acquisitions to build these capabilities. For example, T-Systems’ acquisition of AirIT International (a provider of airport IT services) and Metrolico were targeted to serve the IT infrastructure requirements of the transportation and financial sectors. 3. Build local partnerships and capacity: Building partnerships with specialist integrators and investing in development is a key differentiator in Myanmar – flying consultants in and out doesn’t demonstrate commitment and isn’t considered favorably in the local market. Many newer Myanmar companies such as Lantrovision, Axiom, Fortune, and Elite Techtc are active in the enterprise ICT space and are potential partners or acquisition targets for telcos. To offer more complex offerings, telecom operators typically partner with application providers. RCOM in India has partnered with multiple companies – such as Hitachi for cloud storage, Panasonic for cloud-based security surveillance and Polycom for cloud- based video conferencing – to become a one-stop solution hub for its SME clients. Singtel’s recent partnerships with FireEye and Akamai Technologies, and its acquisition of Trustwave, show its commitment to provide advanced security services to corporate customers, combined with a secure ICT solution. In doing so, Singtel is trying to integrate security in its overall portfolio to provide a more complete enterprise offering. 4. Leverage government relation- ships to capture transformation oppor- tunities: Myanmar government enter- prises are lagging behind their regional peers in terms of digitization initiatives, which provides a compelling business case for Myanmar telecom operators to position themselves as enablers for digital economies. They may be able to leverage their privileged government relationships and countrywide presence to be the pro- vider of choice for government ICT re- quirements. To promote increased transparency, the government in Myanmar must en- sure that government information in the near future is readily available online and at low or no cost. Digital transformation of this scale requires changes to both pro- cesses and IT systems that are more chal- lenging to implement in the public sector, especially given the fact that the bulk of the data and government operational in- formation were manually maintained and not publicly available in the past. This also requires maintaining confidentiality and appropriate access controls over large vol- umes of data and critical infrastructure, as well as complex project management and coordination ability – which prob- ably makes telcos the best candidates for helping the government. Samit K Deb Myanmar’s outlook is strikingly positive, presenting a serious growth opportunity for Myanmar operators as they face growing saturation of their consumer businesses. And they have a number of competitive advantages over pure-play systems integrators, from established customer relationships and large-scale project management experience to strong brands and government connections. However, operators will also need to change the traditional passive business model they are accustomed to using in the commoditized mass-market voice and data business. Operators must develop a relationship-based business model to win enterprise business, as well as a consultative approach to gain new SME business clients. Here are five recommended strategies for Myanmar operators: 1. Target SMEs to provide one-stop ICT solution: Many executives say that Myanmar today reminds them of India in the mid 1990s and Indonesia in early 2000 (immediately after liberalization). A few trends in these countries that emerged in the immediate aftermath for liberalization may be indicative as to how Myanmar’s economy and enterprise ICT market may behave in the short term. Myanmar SMEs are similar to their Indian and Indonesian counterparts in that they expect simplicity (transparent and predictable pricing), convenience (one-stop shop) and value for money (mainly a reduction in TCO). SMEs also do not wish to deal with multiple providers to fulfill their ICT needs, which range across telephony, broadband connections, mobile corporate connections, network and security, storage, domain and web hosting. They will prefer operators who can act as an umbrella solution provider. For example, with its “office-in-a- box” bundle, Ooredoo in Qatar offers basic data connectivity coupled with a managed IP-telephony solution for the SME segment. The “office-in-a-box” may be an effective off-the-shelf package enterprise ICT market Furious growth The number of enterprises in Myanmar is increasing at a furious pace, and ICT spending trend looks positive starting from a very low base similar to what has been observed earlier in Indian and Indonesian economies immediately following liberalization. Many industry experts draw parallel of today’s Myanmar with India of 1995-2005 and Indonesia of early 2000. Telecom operators are ahead of the curve and positioned to capture a larger share of this evolving ICT market similar to the way some Indian and Indonesian operators have done (Tata Tele, RCOM and Telkom all positioned themselves well to capture enterprise ICT revenue). However, technological advancement this period has shortened the window of opportunity significantly for ICT providers in Myanmar compared to their peers in India and Indonesia. Myanmar companies will be most likely leapfrog to cloud-based solutions, leaving behind many generations of incremental ICT changes. Forming alliances with application vendors and acquiring a few niche local players can be a way for operators to expand their services and capabilities in a shorter timeframe. Whichever route they choose, operators in Myanmar have to move quickly to position themselves as key players before the window of opportunity disappears. 3 Samit K Deb is a senior consultant with over 12 years of experience and based out of Singapore. He can be contacted at firstname.lastname@example.org during services other markets credible local local capability For more information, please contact: Jessie Cheung email@example.com +852 2589 1338 KeepInTouch_hseAd_265x350.indd 3 05/28/2016 4:01 PM
14 LATEST ENTERPRISE NEWS 2 JUNE 2016 CENX, Brocade, Red Hat and RIFT.io collaborate on SDN/NFV interoperability alized network infrastructure in CENX’s SDNFV Innovation Lab. The demo involves CENX Exanova Service Intelligence, Red Hat’s OpenStack platform, and RIFT.io’s RIFT.ware NFV Orchestrator and VNF Man- ager. CENX says the initiative highlights how interoperabil- ity between vendors can help accelerate time to market for service providers seeking to efficiently operationalize their SDN and NFV deployments us- ing Lifecycle Service Orchestra- tion (LSO) capabilities. “Many service providers are on an aggressive path to ex- ecute business transformation strategies, which are centered on next-generation SDN and NFV technologies,” said An- drew McDonald, CENX’s sen- ior VP of core products. “By bringing together lead- ing vendors to pre-integrate comprehensive solutions across complex, hybrid physical and virtualized infrastructure, we can help service providers more quickly realize the opex-saving benefits of these innovations.” The initiative is CENX’s lat- est push to provide interoper- able, multi-vendor LSO and SDN/NFV solutions. In Febru- ary, CENX successfully inter- operated its Exanova Service Intelligence software with Ixia, Mitel, and VMware in a demo for real-time assurance of mo- bile data services for virtual Evolved Packet Core (vEPC). CENX says its innovation lab provides an ecosystem, aligned with the “Central Office Re-architected as a Datacenter (CORD)” principle of providing data center economies and cloud agility to service providers. The lab showcases stream- lined operations and real- world leading-edge use cases, such as enterprise services using vCPE, VoLTE using vEPC, and Soft- ware-defined Wide Area Net- working (SD-WAN). CENX is taking part in the CommunicAsia Zone, showcasing its Exanova hyper-scale orchestrated ser- vice assurance solution for service providers. The software provides the unified LSO in- terface to the multiple compo- nents within a NFV architec- ture. 3 Booth: BJ2-07 (Ontario Pavilion) implementation of Fiona Chau CENX has teamed up with Bro- cade, Red Hat, and RIFT.io for an initiative aimed at building end-to-end service orchestra- tion and management solutions to accelerate the deployments of software-defined networking (SDN) and Network Functions Virtualization (NFV) for ser- vices providers. The companies are work- ing together to interoperate their respective technologies to demonstrate end-to-end ser- vice management capabilities over hybrid physical and virtu- Xperience Sennheiser showcases conference-room-in-a- suitcase device Big data visualization of network incidents discover APTs by their traffic signature. It can shut down net- work segments or services that may have been compromised to lock down the threat. Sniper One is another product focused on hardening network security. Sniper BD1 is a next-gen- eration intrusion prevention system that uses big data from all network components to ana- lyze network traffic. Chae says his solution stresses the visu- alization of network functions with a very intuitive UI. People in the security operations cen- ter can see on big data walls how the network is performing and drill down in real time to any incidents. Chae says that Wins is now number one in its home mar- ket of South Korea and has a 41% market share in Japan. The company has only recently decided to branch out into the Southeast Asian market.3 Wins booth: BP2-03 Don Sambandaraksa Nick Chae, strategic planning and overseas business manager at Wins, explains that one of the biggest threats to company networks today is the advanced persistent threat (APT) attack where an attacker gains access to resources within a network and stays there until it receives an order. Sniper APTx, a Wins prod- uct, analyzes network traffic to SpeechLine Digital Wireless, an encrypted digital 1.9-GHz wireless microphone with the ability to be remotely managed and diagnosed. IT support can remotely change settings and even mute or unmute the de- vice. A third new product: Sen- nheiser’s Mobile BYOD audio streaming. The device works over WiFi. After users install an app on their iOS or their Android device and connect to the Sennheiser AP, they can use their smart- phone and existing headset to listen to a soundtrack – with low latency. One initial use case is in theaters where alter- native language soundtracks can be offered for the perfor- mance on stage. 3 Sennheiser booth: 5L7- 01 Don Sambandaraksa Sennheiser is displaying its lat- est Team Connect Wireless re- mote audio conferencing setup at CommunicAsia. The device consists of up to four wireless modules that can be laid out across a desk to accommodate up to 24 people. The master unit can be connected to up to three devices concurrently via 3.5mm jacks, Bluetooth, or USB and allow everyone to engage in a multi-party con- versation. Shawn Tan, business com- munication product manager at Sennheiser, explained that the Team Connect was de- signed for executives to set up impromptu meetings when- ever and wherever the need arises. Another product on show: Connect Hitachi unveils enterprise-grade IoT core platform address associated with IoT solution creation. Lumada uses open, adaptive software architecture to help accelerate the development of IoT products and services. The platform provides a comprehensive of key IoT solution building blocks, including edge device and connectivity integration, application integration, data integration and orchestration, data repositories, the challenges and batch data processing, advanced analytics, artificial intelligence, simulation tools, repeatable solution blueprints, and enterprise services. Lumada also accelerates synthesizing of insights, delivering faster time- to-value and supporting better decisions. It will serve as the core foundation on which all of Hitachi’s IoT solutions are built and will enable the creation of IoT business ecosystems.3 Booth: 1K2-01/BES-01 Fiona Chau Hitachi Insight Group, the newly created responsible Hitachi’s global unified IoT business and strategy, has introduced Lumada, a new IoT core platform. Lumada integrates proven commercial technologies from across Hitachi’s portfolio and is designed to help enterprises subsidiary driving for actionable framework stream
15 LATEST ENTERPRISE NEWS 2 JUNE 2016 Rakuten launches drone delivery service on golf courses OvERNIGhT WIRE Softbank to sell $7.9b worth of Alibaba shares Japan’s SoftBank Group plans to sell at least $7.9 billion worth of its stake in Alibaba to help improve its cash position and reduce debt. The company plans to divest $5 billion in Alibaba shares in a private placement, ell $2 billion worth of shares back to Alibaba, $400 million to members of the Alibaba Partnership and $500 million to a sovereign wealth fund. The shares represent around 4% of Alibaba and will reduce SoftBank’s holdings in the e-commerce giant to around 28%. But SoftBank CEO Masayoshi son said the company plans to continue its partnership with Alibaba and pursue additional opportunities. The drone to be used in the service is the Tenku, a dedicated drone developed specifically for Sora Raku by Rakuten and Autonomous Control Systems Laborato- ry Ltd (ACSL). Rakuten invested in ACSL in March this year. Tenku is equipped with an autopilot system developed domestically by ACSL and boasts highly stable flight perfor- mance, even in strong winds. The drone also utilizes image recognition technol- ogy from the Rakuten Institute of Tech- nology for landing. Rakuten said the service will be of- fered initially for one month at the Camel Golf Resort, a golf course in the Chiba Prefecture. By offering the Sora Raku drone de- livery service at golf courses, Rakuten said it hopes to provide a new shopping experience and make drones more widely accepted among consumers. It is also looking into the utilization of drones for deliveries in sparsely popu- lated areas and mountainous regions, in transporting supplies during disasters and in its e-commerce businesses, includ- ing Rakuten Ichiba.3 Eden Estopace Japan’s e-commerce giant Rakuten has launched Sora Raku, a drone delivery ser- vice for consumers on golf courses. The service started in early May. The drones will be used to deliver golf equip- ment, snacks, beverages and other items to players at pickup points on the golf course. With the service, players can use the dedicated Android app to place orders, confirm the total possible order quan- tity, and receive push notifications when preparations begin for dispatch and when the drone commences its journey. To use the service players will need to log in using their Rakuten Member IDs, and can choose to pay by either credit card or with Rakuten Super Points. On the operator’s side, once an order has been received, staff waiting at a dedi- cated depot pack the goods into a delivery box and load it onto the drone. The staff then initiate the delivery process from the control screen on a dedicated tablet, and the drone flies to the pickup point auton- omously. Nokia establishes digital health business Nokia has established a new digital health business unit after completing the acquisition of French consumer electronics and wearables manufacturer Withings. The new unit will be led by former Withings CEO Cedric hutchings, and will focus on digital health products including activity trackers, smart body analyzer scales, thermometers, blood pressure monitors, home and baby monitors. Nokia paid around €170 million ($189.1 million) for the acquisition of Withings, which was announced in April. SPTel launches dark fiber, Ethernet services Singapore Power Group subsidiary SPTel has launched two new connectivity services optimized for operators, retail service providers, data centers and enterprises. The company has introduced a new OpticNet dark fiber network, as well as the SmartConnect service, which combines Ethernet with DWDM to optimize connections with key interconnection hubs. In the near future, SPTel plans to introduce bundled networking services in partnerships with companies in other industries. With the new services, the company aims to meet surging demand for connectivity, speed, diversity and reliability as more international companies use Singapore as a regional hub. DTAC Accelerate attracts $2b in VC funds in 1H16 Thai operator DTAC’s technology incubator DTAC Accelerate has attracted 70 million baht ($1.96b) in venture capital funding for its seven tech startups in the first half of this year. DTAC head of business innovation Sompoat Chansomboon told the Bangkok Post that this is indicative of a surge in interest in investing in fintech, transport and travel tech startups in the nation. Thailand is considered a hotspot in the tech startup world due to its young population and entrepreneurial spirit, he said. 53 percent of Singapore companies reported increased profits after implementing flexible working A vodafone study has shown that 75 percent of companies worldwide have introduced flexible working policies. The survey of 8,000 business professionals also revealed that 53 percent of companies in Singapore that have introduced flexible working have seen increased profits since its implementation. The rapid adoption of high-speed mobile data services, fixed-line broadband and cloud services is playing an integral role in this workplace revolution: 61 percent of respondents now use their home broadband service to access work applications and 24 percent use a mobile data connection.
16 LATEST NEWS 2 JUNE 2016 Repurposing satellites for affordable Internet access for Pacific Islands ExhIBITORS uPDATE COMPANY NAME BOOTH NO. width. This has led to knock- on development with software incubators and mobile money solutions being rolled out with huge benefits to society. Mobile money is especially relevant when people are on a tiny island with no banking in- frastructure at all. The Pacific islands has learned that C-Band is the best frequency to use. People might not want to watch YouTube in a storm, but they still might want to call for help. In order to achieve this, ABS moved one of its satellites, ABS- 6 from 75 degrees to 159 degrees, right above the Pacific. The sat- ellite was originally designed to cover Russia and Central Eu- rope for video and thus the tran- sponder footprints do not quite match up - for instance, New Zealand is not covered at all, but other than that it covers the Pa- cific market quite well. Hawker said that this was possible partly due to luck. ABS-6 (back then called ABS- 1) was scheduled to be launched as part of a dual payload. How- ever, the other satellite was cancelled meaning that ABS-6 was sent much higher into or- bit by the rocket. The fuel saved means that the satellite will be operational until 2024, a full ten years longer than what it was designed for when it was launched back in 1999. “This isn’t charity, but I believe in companies having a corporate social responsibil- ity. Everyone deserves access to broadband at reasonable pric- es,” he said. 3 Booth: 1R3-01 Don Sambandaraksa ALLTERCO PTE LTD BC4-06 CUBEACON BT3-01 Providing affordable, reason- ably priced broadband is a spe- cial challenge when the market is the Pacific Islands – 18 coun- tries spread over thousands of small islands some with a pop- ulation of just thousands. John Hawker, VP for Aus- tralia-Pacific at ABS, explained that the cost of maintaining fiber becomes prohibitive and satellite prices were very high, typically at over $2,000 per Mbps. In the Federated States of Micronesia, ABS last year won a tender for 60 Mbps. Hawker said that he managed to get the price at half the previous mar- ket rate this year because FSM tripled capacity as they were able to easily resell the band- DATA61 BN2-07 DATAON BT3-01 INNERTRON INC BM2-03 JUNIPER NETWORKS BJ2-01 NATIONAL ADVANCED IPV6 CENTRE OF EXCELLENCE 3B4-19 PEER CORE NEX GEN BN2-01 RADWARE 1E2-01 ROLEPLAY STUDIO BT3-01 SINGAPORE BUSINESS FEDERATION BM2-10 SKYNET COMMS PTE LTD BB4-14 UDC SYSTEMS PTY LTD BN2-01 ZAMRUD TECHNOLOGY BT3-01 ST Electronics intros ultra-lite Ka- band block-up converters The growth in high throughput satellite (HTS) applications has created increased requirements for smaller and lighter equipment, especially in the mobility markets of maritime, aero, and land com- munications. To tap the rapidly expanding mobility demand driven by the growth in HTS, ST Electronics (Satcom & Sensor Systems), a whol- ly-owned subsidiary of Singapore-based ST Electronics, has un- veiled an ultra-lite series of Ka-band block-up converters (BUCs). The series, touted as the industry’s smallest and lightest of its kind, consists of 3 Ka-band BUCs: 25W (2.9kg), 40W (4.9kg) and 110W (9.9kg). “Mobility applications, both commercial and government, will become the core of the HTS applications within the next 10 years. This ultra-lite series of BUCS was designed to meet the continued demand for higher speed and always on availability,” said Rajanik Mark Jayasuriya, vice president of satellite networks business group at ST Electronics (Satcom & Sensor Systems). 3 Booth: 1N3-01 “Post-WRC-15, mobile and satellite still at odds over spec- trum” from page 1... the numbers.” He also criticized the US FCC for proposing to allocate parts of the 28-GHz band for IMT purposes, which conflicts with Ka-band applications, despite an agreement at WRC-15 that the band would be excluded from consideration for IMT. Consequently, the satellite sector is now making moves to lob- by regulators and standards bodies and make clear that satellite is very much a part of the 5G ecosystem. Outside the panel, Ethan Lavan, director of the In-Orbit Re- sources division at Eutelsat, urged the satellite industry to engage with various industry forums working on 5G standards, particu- larly in the areas of equipment specifications and band plans. “We are at the point of no return,” Lavan said. “Equipment specifications for IMT 5G are being defined now. Unless we have some attractive and workable equipment specifications and means for the equipment manufacturers to use bands other than 28 GHz, there will be no going back.” 3 NOW YOU’RE PLAYING WITH POWER(BANK): Michael Oh Hong Choon (right), chairman and CEO for CEO-Roundtable Sdn Bhd, wins a powerbank via one of 12 scheduled lucky draws at the Questex Asia stand (BN4-07).
SUMMIT 17 2 JUNE 2016 COMMuNICASIA2016 SuMMIT highlights for Day Three: Thursday, June 2 using near real-time security monitoring Steve Christian, VP of Marketing, Verimatrix 13.30 Moving Beyond the Hype: Taking SDN and NFV from Early Trials to Hyper- scale Deployments • Learn how to control millions of packet flows under SDN orchestration • Explore hosting and managing thousands of VNFs in an NFV architecture • Understand the considerations for virtualized media processing and transcoding • Make it real – an overview of the Mobile CORD initiative Ray Adensamer, Director of Marketing, Radisys 2.00 Panel Discussion: Hyper-Scale Cloud and Dynamic Service Chaining for NFV for Improving the Quality of Applications • How to maximise the service chaining opportunities • Impact of service chaining on cloud and data center applications • Standardisation challenges an operator needs to account for • Successful case studies on early deployment for CAPEX reduction in opti- mising VAS Panelists: Thomas Sennhauser, CTO - Enterprise Group APJ, HP Yann Sendra, Head of Mobile Network Planning, Globe Telecom Divesh Gupta, VP - Technology & Sales Ops, Presales, PCCW Global Ray Adensamer, Director of Marketing, Radisys Morteza Seraj, CTO, Tose Etemed Mobin Company (TEM) Moderated by: Nan Chen, President, MEF 2.40 Best Practices in On-Demand Provisioning of NFV • NFV orchestration and possibilities of on-demand provisioning • Measuring the impact of scalable provisioning • Achieving cost efficiency at a faster turnaround • Case study from successful integration Divesh Gupta, VP - Technology & Sales Ops, Presales, PCCW Global 3.10 Network IQ: Enabling Digital Transformation through Network Intelligence • Companies continue to transform their businesses to a digital model to grow their businesses and increase efficiency • Providers can enable this transformation in an efficient, effective and se- cure manner that adapts to differing customer deployments in order to de- liver on the needs of today’s digital enterprises, providers need to increase the intelligence in the network, leveraging SDN and network-based security Adam Saenger, Vice President of Product Development & Management, Level 3 Communications NFV User Cases – Trends & Learning Points 4.00 Case Study: The Monetising Models of NFV • How the revision in architecture from hardware to virtualised functioning impacts the operational models • Collating and monetising network and subscriber data • Reducing operational costs through network optimisation • The rate of evolving business models and the faster NFV integration: agil- ity is the watchword Yann Sendra, Head of Mobile Network Planning, Globe Telecom 4.30 Efficient Extension of SDN & NFV Capabilities into the Optical Layer • How opening up optical platform for virtualisation could be beneficial for operators • What are the impacts on software defined optical port speeds, protocols and wavelengths • Increased capabilities such as on-demand provisioning of up to 100 Gbps and at higher speeds • Benefits in dynamic service chaining through optical layers Mohd Azlan Bin Zainudin, Network Architect - South Pacific Solutions Mar- keting, Huawei 5.00 100G PON, Releasing More Energy Of Fiber Access Network MORNING PLENARY I 8.00am – 10.20am Hibiscus 3612/3613 8.00 Registration 9.00 Chairman’s Welcome Address – Ville Kulmala, Chairman, Mobile Monday Thailand 9.10 Opening Keynote: Architecting Internet of Things - Uncovering Case Studies and Challenges towards Delivery This session will give a brief overview of what IoT is from the perspective of an Architect within Consulting Services. We will look at what kinds of pro- jects we are getting involved in, what those projects look like in reality, the kinds of challenges you will face, the network you need to succeed, and the risks involved. This session will move beyond hypotheticals and introduce real world examples that will help you prepare for life as a delivery architect working with IoT. Darren Hubert, Chief Architect, Microsoft Services APAC 9.40 Innovators Dialogue: Digital Disruption Digital Disruption is transforming the way companies and agencies oper- ate and how they engage with their customers. Digital Disruption in 2015 marked a shift in the collective consciousness of businesses. In this trans- formation not everyone will survive. Bricks and mortar retailers in particular need a digital model alongside their established business if they are not to miss out the wave of customers wanting to order products with tablets and smartphones. So how will the enterprises capitalise on this disruption, not just as channel but as an active participant in the new processes that are evolving? Panelists: Wing K Lee, CEO, YTL Communications Sdn Bhd Robert Le Busque, Managing Director, Strategy & Planning, APAC, EMEA, LATAM, Verizon Enterprise Solutions Dr. Amirudin Bin Abdul Wahab, CEO, Cybersecurity Malaysia Fermin Fautsch, Vice President, Global Enterprise, Telekom Malaysia Moderated by: Maurie Dobbin, Managing Director, Teleresources Engineering SDN and NFV – Optimising the Network Architecture Heliconia 3505/3506 10.55 Chairman’s Welcome Address – Dr. Ricky Chau, VP , Asia Pacific, Level 3 Com- munications 11.00 SDN and NFV: A Practical Approach to Implementation • Introducing vendor and network-agnostic SDN and NFV platforms • Identifying cross services opportunities in legacy infrastructure for faster migration • Redesigning the operational procedures and upgrading skills: turning the inhibitors into opportunities • Adopting Open Source architecture Sean Bergin, President, AP Telecom 11.30 Building Scale-Out Network Solutions Using SDN and High-Performance OpenFlow Forwarding Planes • Applying the presented principles to build NoviFlow’s Scale-Out Router • Allowing different network elements to scale independently based on a wide variety of characteristics • Enabling many applications to scale-out to extremely large configuration in simple, modular increments Marc LeClerc, VP of Strategy and Marketing, NoviFlow Inc. 12.10 A New Way of Thinking About Connected Revenue Security • Implementing a more robust security infrastructure to support active man- agement of devices and transactions • Connecting previously isolated security deployments through globally interconnected systems • Enhancing quality of service, leverage viewer behavior and identify threats
18 SUMMIT 2 JUNE 2016 COMMuNICASIA2016 SuMMIT highlights for Day Three: Thursday, June 2 • Demonstrating optical properties including PON access services simulation and taking common integrated platform technology to co-exist with GPON, EPON, MSAN and XGPON technologies. • Reusing the existing ODN network to protect existing networking invest- ments • Flexible selection of channels for downlink to enhance bandwidth Zhang Xiao, Marketing Director - Broadband Access Product, Fiberhome Technologies Group the 3DR concept is poorly understood. This session will look at: • What would a correctly implemented 3DR approach look like in IT? • How do we communicate what get the message across that delay alone is not defence in depth? Frank Ip, Vice President of Marketing and Business Development, Huawei 4.00 Next Generation Security for Telcos and ISPs • Overview of the DNS Threat Landscape • Are you the target or the vector of the attacks? • How to efficiently protect your DNS Infrastructure from new Cyberattack technics • How to optimize your infrastructure spending while increasing your level of security David Williamson, CEO, EfficientIP 4.30 RoundTable Discussions: Format: • Each moderator will have 10min to speak/share their understanding (or give a short topic opening) – 10min • Participants Discussion Time – 15min • Presentation of Discussion/Findings/Solutions – 15min • Wrap-up Summary by Moderators – 5min Moderator of each roundtable will share 4 takeaways of what is being dis- cussed earlier in the group RoundTable1: Countering the Threats to Cyber and Cyberphysical Assets Arising Out of Higher Connectivity Frank Ip, Vice President of Marketing and Business Development, Huawei Roundtable 2: Cyber Security Education Awareness and Training Mark Ames, Associate Director, KPMG Management Consulting Roundtable 3: Achieving a Secure Enterprise Architecture – Challenges and Practical Solutions David Williamson, CEO, EfficientIP Roundtable 4: Using Coordinated Security Intelligence and Analytical Tools in Detecting and Mitigating Advanced Persistent Threats (APT) Colin Cooper, General Manager Government and Defence, ViaSat Ko Sasaki, General Manager, LAC (Member of Japan Network Security As- sociation) Roundtable 5: Challenges for Regulators in National Cybersecurity Dr. Amirudin Bin Abdul Wahab, CEO, Cybersecurity Malaysia ENTERPRISE CYBERSECURITY – Securing for Sustainable Growth Heliconia 3502/3503 10.55 Co-Chairman’s Welcome Address – Lim Soon Chia, Director – Technology Division, Cyber Security Agency Singapore 11.15 Tackling Insider Threat Most technical controls and cyber security methods are aimed out towards the perceived threat, whereas the data shows that the financial, legal and reputational costs are much greater from the insider threat. Are current con- trols and processes sufficient to manage the risk associated with this threat? Professor Yuval Elovici, Research Director of iTrust, SUTD / Head of BGU Cyber Security Research Center 11.45 Advanced Persistent Threats (APT) Advanced persistent threats (APT) / Malware – We already have a difficult time detecting malware: why is it so hard? How can we be better at this, and what will the malware of tomorrow look like? Ko Sasaki, General Manager, LAC (Member of Japan Network Security As- sociation) 12.15 Enhancing Security and Privacy While Managing IoT Data Generation in Enterprises • The new paradigm of managing data generation through IoT devices • How are enterprises integrating data gateways and securing them from threats • Handling the combined challenge of miniaturatisation of IoT devices and the boom in data generation • Authentication issues in large enterprises Eric Lam, Director for Asia- Enterprise Cybersecurity, Microsoft 2.00 Innovating and Securing New Systems, all done in one Breath This presentation highlights how IT innovations should be protected and secured via key principles of Security, Privacy and Resiliency by Design so that operational and innovation risks of new systems could be balanced and at the same time, users could enjoy both agile and fast implementations. It is achieved via architectural simplifications using both foresight and insight skills. It also aims to guard the organization via a good dose of caution that will avoid disastrous failures or very expensive mistakes Professor Yu Chien Siang, Chief Innovation Officer, Certis Cisco 2.30 How Do You Manage the Risk of BYOD? The approach to managing the risk associated with BYOD by banning such devices from the workplace is no longer practical. The reality is that smart- phones and tablets are pervasive and are being brought into workplaces, and used for undertaking work activities. This presentation will address key issues including: • What recognition is there of this issue? • What technical controls are being utilised to protect the corporate border? • Have privacy and other issues been considered? • What policies are in place to manage the risk? Mark Ames, Associate Director, KPMG Management Consulting 3.00 Defence in Depth When implemented correctly, this approach to defending an IT system should incorporate elements of deter, detect, delay and respond (3DR). De- fence in depth strategies in IT rely on delay mechanisms, and it appears that CLOUD NETWORKING AND BIG DATA ANALYTICS – Driving Efficiency through Smart Data Heliconia 3406 10.55 Chairman’s Welcome Address – Maurie Dobbin, Managing Director, Telere- sources Engineering Trends in Cloud Architecture and Infrastructure 11.00 Delivering and Managing Green and Efficient Cloud Data Centers: What New Technologies are Impacting the Industry? • How cloud centers can be more efficient beyond achieving a higher PUE (Power Usage Effectiveness)? • Going beyond conventional HVAC considerations • Planning and integrating a decommissioning programme into your data center expansion • Identifying the ideal time to decommission comatose servers John Duffin, Managing Director – South Asia and APAC, Uptime Institute 11.30 Driving Up Business Value with Optimal Cloud Orchestration: Case Study • Automated tasks and coordinated workflow planning for ideal cloud or- chestration: the prime requirement • DevOps and cloud orchestration: creating a team for realising faster delivery • Combining the in-house capability build and outsourcing of orchestration processes
SUMMIT 19 2 JUNE 2016 COMMuNICASIA2016 SuMMIT highlights for Day Three: Thursday, June 2 12.00 Panel Discussion: Practical Opportunities and Challenges in Interoperable and Portable Cloud Infrastructure • Costs: regulatory, migratory and redevelopment • Data and IaaS / PaaS considerations during migrations • The level of standardisation and interface mechanisms between different cloud offerings • Trends in minimising redevelopment of codes while attempting portability • Addressing migration to cloud in the long term: how future interoperabil- ity and portability needs could impact OPEX Panelists: Bernie Trudel, CTO – Cloud / Chairman, CISCO / ACCA Mahesh Jaishankar, Vice President International Connectivity & Infrastruc- ture Commercial, Du Karthikeyan Rajasekharan, Head of Cloud Platform Channels APAC, Google Eric Hanselman, Chief Analyst, 451 Research Alex Cheng Yu Wee, CTO / IT / Data Centre and Cloud Solution Sales, Global Solutions Elite Team, Huawei Jerry Chung, Singapore Country Manager, CDNetworks Moderated by: David Siah, Country Manager, Trend Micro / Vice Chairman, CSA Asia Pacific Executive Council 2.00 Key Considerations in Scaling Hybrid Cloud Deployments and Operations Successfully • How does the world of Digital Transformation correlates to Cloud? • Understanding the key challenges operating in a multi-cloud environment. • Maturity Checklist for operating hybrid clouds Sandip Gupta, Vice President (Cloud Business), Singtel 2.30 Delivering an Enhanced Web Environment to Customers Discover how enterprises can: • Tap on a global infrastructure to accelerate delivery of their web content • Safeguard their websites against attacks • Analyse their web traffic to understand their customers Youngdo Jeon, Security Service Manager, CDNetworks 3.00 Big Data and ‘Deep-Learning’: Exploring New Opportunities • How big data is aiding deep learning by providing structural classifications • Reducing error rate for data recognition • Potential benefits in designing massive product launches, improving qual- ity of data analysis and minimising human errors in customer service • The road ahead for deep learning in big data Karthikeyan Rajasekharan, Head of Cloud Platform Channels APAC, Google Future Trends in Big Data and Cloud Computing 4.00 Hybrid Cloud: The New Paradigm for Telcos - Implications and Opportunities • Heterogeneous data from IoT and its impact on current data storage struc- tures: PaaS and beyond • Anticipating and preparing the infrastructure for the unprecedented growth in sensor, video and image data • The growth of data inputs from cognitive computing and M2M communi- cations in next two years: how is the industry approaching? Ajay Sunder, Vice-President for ICT Practice, Frost & Sullivan • Planning higher security while being flexible Ryan Eames, Chief Architect, Verizon Enterprise Solutions system for sustainable business operations • Understanding new standards, technologies and their availability for e.g. wireless access technologies and M2M platforms • Discussing the roadmap towards planning and implementing IoT services to realize this new opportunities. Sue Bryant, Director - South Pacific Solutions Marketing, Huawei Practical Applications of IoT in Industry Segments 11.30 How Real-time Big Data From Factories Enables Smarter Manufacturing Decisions: Case Study • Implementing simultaneous process automation in multiple locations: how key technologies are finalised through field data analysis • Understanding the Production/Process Life Cycles (PLC) to achieve mini- mally invasive automation through smart data analysis • Planning through varying levels of automation • Ensuring uninterrupted production while automating parts of production line Kirsten Billhardt, Marketing Director, Internet of Things, DELL Inc 12.00 Aviation Case Study: Harnessing the Power of the Connected Aircraft • Extensive growth in passenger demand for Inflight WiFi Connectivity • Recent developments in inflight global satellite connectivity networks • The modern ‘Connected Aircraft’ and growing need for connectivity for operational • effectiveness • Aircraft tracking and monitoring over global satellite networks Chuck Albright, Director, Airline Market Development, Inmarsat 2.00 Smart Manufacturing – Collaborative Industry 4.0 Workspaces • What makes a connected plant – key characteristics of Industry 4.0 projects • Planning a collaborative Industry 4.0 workplace • How to achieve data and knowledge based optimization in connected plants Thomas Jakob, Regional President, Asia Pacific, Bosch Software Innovations Technology Challenges in IoT’s Consumerisation 2.30 CIoT and Increasing Demands on Network Capacity: Getting Ready for Bil- lions of New Smart Devices • Projected growth in population of new millennials and smart, connected living • Why CIoT will constrain connectivity networks from the current surplus capacity and how operators are planning to address the demand • Latency challenges: the implications and evolutions • Opportunities from the future networks Linda Chandler, Smart Cities Lead, Microsoft 3.00 Stakeholders Panel Discussion: Understanding the Scope and the Infrastruc- ture Needs for a Faster CIoT Adoption • Are we doing enough to move from CIoT concepts to testbeds to partner- ship programmes? • How will the wireless carriers charge increased connectivity needs? • Technologies needed for the communication synergies between existing smart devices and wearable devices • New growth segments and their intrinsic challenges Panelists: Mazlan Abbas, CEO, Redtone IoT Linda Chandler, Smart Cities Lead, Microsoft Sanjaya, Deputy Director General, APNIC Ben Wark, Regional Director ñ Digital & IoT, Brightstar Corporation Moderated by: Toby Ruckert, CEO, Unified Inbox INDUSTRIAL AND CONSUMER IOT – Creating the Innovative Ecosystem Heliconia 3402/3403/3404 10.55 Chairman’s Welcome Address Sherrie Huang, Research Programme Head, Asia–Pacific, Analysys Mason 11.00 The Road to Monetising IoT • Addressing the complex challenge of ensuring profitability in the connect- ed world • Gaining market insight across various segments towards building an eco- For complete programme, visit www.communicasia.com