Category: Applications

  • Next-Gen technologies drive growth in consumer telecom market: Study

    MUMBAI: As Internet Protocol (IP) technology becomes more pervasive in the telecommunications industry, next-generation services is increasingly driving growth in the consumer market. Although regulatory constraints and dwindling fixed-line revenues are key challenges for service providers, renewed focus on 3G (Third Generation) services, convergence and multimedia should enable them to stay ahead of competition.


    New analysis from global growth consulting company Frost & Sullivan, Service Providers‘ Consumer Strategies Revealed in Asia Pacific, reveals that 3G, VoIP (Voice over Internet Protocol) and WiMAX (worldwide interoperability for microwave access) are perceived as key revenue generators for service providers. In fact, most service providers have invested heavily into deploying these technologies, states an official release.
     
    “Growth in the Asia Pacific consumer telecommunications market will revolve around wireless, IPTV (Internet Protocol television), and other multimedia services,” explains Frost & Sullivan research analyst Aravind Venkatesh. “Moving forward, service providers will continue to leverage on key next-generation technologies such as WiMAX, IPTV and VoIP to offer innovative service packages to customers.”


    Due to declining fixed-line revenues, service providers in developed markets have to consider next-generation technologies such as 3G, wireless broadband access, IPTV and VoIP to drive revenue growth. While service providers in China and India are anxious to deploy 3G services, their counterparts in South Korea, Singapore and Hong Kong are looking at media-rich 3G applications to boost revenues.
     
    The key challenge for all service providers in the consumer space is to maximize voice revenue and increase ARPU (average revenue per user) in the midst of increasing competition.


    Intense competition and product commoditization have resulted in service providers finding it difficult to increase ARPU and reduce customer churn. Regulatory barriers delaying the deployment of 3G services in markets like India and China have also fettered service providers. Fixed-line service providers face the dual challenge of declining fixed-line revenues and increasing fixed-to-mobile substitution, the release adds.


    “Regulatory barriers and spectrum allocation issues have been major hindrances to the rapid deployment of 3G services in some developing markets in Asia,” explains Venkatesh. “Delays in introducing regulatory frameworks have hampered the launch of innovative services based on new access technologies.”


    Innovative value-added services and lower price points are key differentiators in the fixed-line telephony segment. Fixed-line service providers should add value to their core services by offering bundled applications at competitive prices. Service providers in high growth markets such as India, China, Thailand and the Philippines can also explore new revenue streams by exploiting the largely untapped rural segment.


    The service providers‘ consumer strategies revealed in Asia Pacific study is part of the Communications Services subscription. It evaluates the competitive landscape, including key partnerships and alliances, service portfolio and product strategies, and marketing and pricing strategies of seven leading telecom service providers in the region. The study also offers an in-depth analysis of the service providers‘ growth strategies in the consumer segment. The leading service providers examined as part of the study are: Bharti Airtel, Chunghwa Telecom, KT, PCCW, StarHub, Telstra and True Corporation.

  • DirecTV US 2Q revenues increase 12% to $3.3 billion

    MUMBAI:The DirecTV Group Inc. today reported that the second quarter revenues increased 10 per cent to $3.52 billion and operating profit nearly doubled to $977 million compared to last year‘s second quarter.


    The Group reported second quarter 2006 operating profit and net income both more than doubled to $741 million and $459 million, respectively, when compared to the same period last year.


    Earnings per share were $0.36 compared with $0.12 in the same period last year. These operating results include the effect of $253 million of equipment that DirecTV US capitalized during the quarter under its lease program, which was implemented 1 March 2006, according to an official statement.
     
    “Similar to recent quarters, DirecTV US generated excellent financial results highlighted by a 12 per cent increase in revenues to $3.3 billion, a 93 per cent increase in operating profit before depreciation and amortization to $977 million and a nearly tripling of cash flow before interest and taxes to $450 million,” said DirecTV Group president and CEO Chase Carey.
     
    “In many ways, the results in the quarter reflect our strategy to target higher quality subscribers. For example, although gross subscriber additions of 863,000 and net additions of 125,000 in the quarter were below expectations, it‘s important to note that we added 11 per cent more higher quality gross subscribers in the quarter compared to last year,” said Carey.


    “This trend — which is driving both the top-line and bottom-line financial results — is primarily due to the ongoing changes we‘re making to refine our credit policy and dealer network. These factors played an important role in reducing DirecTV‘s monthly churn rate from 1.69 per cent to 1.59 per cent this quarter.”


    “In addition, customers are buying more premium services such as high definition programming and digital video recorders which is contributing to the strong ARPU growth of 5.6 per cent in the quarter.”


    On 1 March 2006, DirecTV US introduced a set-top receiver lease program primarily to increase future profitability by providing DirecTV US with the opportunity to retrieve and reuse set-top receivers from deactivated customers. Under this new program, set-top receivers are capitalized and depreciated over their estimated useful lives of three years.


    The amount of cash DirecTV U.S. paid during the quarter ended 30 June 2006 for leased set-top receivers totaled $253 million — $153 million for subscriber acquisitions and $100 million for upgrade and retention.

  • Interoperability wouldn’t support VAS, interactivity: Kaushik

    NEW DELHI: With the arrival of the second pay DTH player in the market, a buzz word would be interoperability, meaning whether consumers can switch from one service to another effortlessly.


    Though Indian government norms specify that all DTH systems need to be interoperable for consumer’s convenience, in reality it may not be so.


    Vikram Kaushik, MD and CEO of Tata Sky, which launched its commercial service on 8 August, hinted that interoperability may be limited.


    “Interoperability may not support interactive and value added services,” Kaushik admitted to a specific query on the issue today in Delhi.
     
    Tata Sky consumer marketing head Vikram Mehra explained that for seamless interoperability of all services, including interactive services, DTH service providers must have similar software.
    “In the absence of some (proprietary) software, value added services of a DTH platform may not get supported when a consumer changes the service provider. Yes, the TV channels would be available and that’s what government rules specify,” Mehra elaborated.


    What does this mean?


    If an existing Dish TV consumer, wants to switch over to Tata Sky service and hopes just a replacement of the smart card in the set-top box would give him all the features of Tata Sky, then he would have to think again.


    Features like interactive news and sports and some value added services like movie-on-demand of Tata Sky would not be available by just inserting a Tata Sky smart card in a set-top box bought/rented from Dish TV.


    For the records, Siebel will manage customer relationship management of Tata Sky, while Kenan will support the billing system, SAP will be responsible for enterprise resource planning and Sun Microsystems will provide technology infrastructure.


    The boxes would be sourced from Thomson and Korean company Humax.


    Both the companies will be manufacturing the set-top boxes in India, Kaushik said, which would help in keeping the price line under control.


    At present country’s first pay platform, Dish TV, boasts of 1.25 million subscribers, while pubcaster Doordarshan’s subscription-free DD Direct+ has a reported consumer base of 3.5 million.


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    Tata Sky launches no-tier DTH service

  • Trai proposes tariff rate on STBs

    MUMBAI: The Telecom Regulatory Authority of India (Trai) has proposed that cable TV service providers in conditional access system (CAS) areas to offer digital set-top boxes (STBs) on a monthly rental scheme of Rs 30 and a refundable security deposit of Rs 999.
     
     Subscribers will also have the other option to take the permanent rental scheme with no security deposit. But the monthly rent in this case would be higher. They also have the choice of subscribing to analogue boxes.


    Under the first scheme, the regulator has said that subscribers would own the box after five years and no monthly rentals would have to be paid after that.
     
    In case of a period before five years, the multi system operator (MSO) or cable operator shall be entitled to make deductions from the refundable security deposit at the rate of Rs 12.50 for every month or part of the month for which the subscriber has used a STB taken on rent or lease. The deductions will be made upon the submission of the STB in working condition.


    Under the standard tariff package (STP), subscribers will have the second option of not paying any security deposit but the monthly rental will be higher at Rs 45 per STB. For analogue boxes, the rent will be Rs 23 per month per STB.


    “In both options, there will be no payment for installation, activation charges, smart card/viewing card, repair and maintenance cost. Stakeholders are also free to suggest any other option as a STP,” Trai said today in a release.


    “Since the Indian standards do permit analogue STBs, an option for these boxes has also been provided under the second category,” the regulator added.


    Trai‘s draft of the tariff proposals for STBs has invited comments of the stakeholders. Stakeholders may comment on these alternatives as well as suggest any other options for Trai to consider.


    “It has been proposed that each service provider should at least offer one STP in addition to any other alternate tariff package. The rationale behind this proposal is that every consumer should have the choice of choosing from amongst various alternatives of which at least one should be a package that is approved by Trai,” today‘s release said.


    Trai‘s proposed draft tariff order for STB schemes in CAS areas follows the government‘s notification on 31 July that CAS would be implemented in Delhi, Mumbai and Kolkata. Earlier, the division bench of the Delhi High Court had passed an order directing implementation of CAS with effect from 31 December in these three metros.

  • Tata Sky launches DTH service; STB price Rs 3999, basic subscription Rs 200













    NEW DELHI/MUMBAI: Tata Sky Ltd, the $ 500 million joint venture between Tata Sons and the Rupert Murdoch-owned Star Group, today officially announced its arrival as India’s second DTH platform after Dish TV.


    Tata Sky is kicking of its service in 300 cities at an “introductory” monthly subscription of Rs 200 for the 55-odd channels it presently has on the platform.
















    Price: hardware+installation Rs 3,999

    Monthly subscription: Rs 200

    No. of channels available: 55+

    Present area of service: 300 cities

    1st year target: 1 million subscribers

    Investments made till now: over Rs 25 billion

    Most critically, the Tata Sky set top box (supplied by News Corp owned NDS)
    has been priced at Rs 3,999 (inclusive of taxes). This includes installation
    and hardware cost and a full service warranty for one year.


    However, along with the monthly subscription of Rs 200, the Tata Sky offering will be more expensive than rival Dish TV‘s package.










    Tata Sky CEO and MD Vikram Kaushik with Tata Sky chairman Ishaat Hussain

    Click here for a slideshow
    The Subhash Chandra-owned Dish TV is priced at Rs 3,290 (inclusive of taxes). This includes the cost of the STB as well as three months‘ subscription. The monthly subscription for the basic Dish TV service of 75 channels is Rs 180.

    Announcing the launch at a glitzy event in Delhi where the likes of cricket commentator Harsha Bhogle rubbed shoulders with Mandira Bedi, Tata Sky MD and CEO Vikram Kaushik grandly proclaimed, “Entertainment will never be the same again.”


    Going on to harp on the state-of-the-art technology and finesse of the service, Kaushik added, “It’s a technological innovation that’ll bring the senses alive.”


    Apart from the many channels on the Tata Sky platform, a conspicuous absentee is the Zee Turner bouquet of over 20 channels as an agreement between Tata Sky and Zee Turner Ltd has not yet been concluded.


    Kaushik admitted that negotiations have not been concluded, but was hopeful that “things would get sorted out soon.”


    Another major absentee is the Sun Network, which dominates the South Indian markets. Tata Sky is, however, not alone in this, since Dish TV does not have access to the Sun channels either.


    “We are offering 55+ channels at the moment and with the passage of time the number of offerings would grow,” Kaushik said.


    The channels presently available on the non-tiered Tata Sky platform include all the channels from the Star (17), Sony Discovery One Alliance (14) bouquets as well as ESPN Star Sports and two channels of NDTV as its key offerings.


    It is worth noting here that it was only this morning that the deal for the carriage of the One Alliance channels by Tata Sky was signed and delivered.


    Confirming this to Indiantelevision.com, SET Discovery president Anuj Gandhi said the pricing terms was similar to the one signed recently with Dish TV.


    One Alliance is being paid around Rs 38 per subscriber by Dish for its channels. The deal is a five-year one that is extendable at the end of it, Gandhi revealed.


    Also available on the Tata Sky platform would be some Doordarshan channels as well the likes of Times Now, Aaj Tak, Headlines Today, etc. Some interactive and specially designed movie channels have also been thrown in as a sop.


    The Tata Sky service, Kaushik claimed in the presence of his company chairman Ishaat Hussain, has been designed to give subscribers “choice, control and convenience” in the way they want to watch television.


    A host of interactive services such as an on-screen programme guide, Actve Sports, Actve Star News, Actve Newsroom and Actve Khabar are also on offer.


    To offer maximum convenience to subscribers, Tata Sky has set up a pan-India distribution network of popular consumer electronic stores and mobile phone outlets for retailing its hardware and prepaid recharge vouchers.


    The pre-paid vouchers come in various denominations starting off with Rs 260.


    The company has also tied up with LG, ITC International Business Division and Indian Oil Corporation as part of its distribution drive.


    “We are looking at ramping up our activity and service over the next three months when the service should be covering the whole of India,” Tata Sky consumer marketing head Vikram Mehra said.


    The company has engaged a field force of approximately 3,000 people who will be complemented by a high-end 24×7 call centre, manned by multi-lingual customer service associates, trained to solve all customer problems.


    But Mehra was not forthcoming on the media campaign that’s about to break “soon”, except to say that it would be a 360 degree campaign using all normal media outlets.


    Tata Sky is an 80:20 DTH joint venture between the Tata Group and Hong Kong-based Star Group.


    The joint venture has invested over Rs 25 billion in the project till now, according to Kaushik, who added the target of 1 million subscribers in the first year is achievable.


    The unveiling of the Tata Sky service finally turns into reality a dream Murdoch has had since 1997 – of having a DTH platform in India

    (Rs 47 = $ 1)

    All pictures, including slide show, by SANJAY SHARMA/Indiapix Network

  • iTunes in Europe sells over 200 million songs

    MUMBAI: Apple has announced that music fans have purchased and downloaded more than 200 million songs from its European iTunes music stores in just over two years.


    The iTunes music catalog now includes more than three million songs from major music companies and over 1,000 independent record labels.
     
    Launched in the UK, France and Germany in June 2004, the iTunes Music Store now operates in 17 European countries. All iTunes Music Stores offer features, breakthrough pricing and integration with iPod.


    Apple VP iTunes Eddy Cue says, “The number of songs downloaded and purchased from the iTunes Music Stores in Europe have tripled in the past year from 50 million to 200 million. We are thrilled that music fans in Europe have shown such enthusiasm for the artists and exclusive music content found only on iTunes and would like to thank them for making iTunes such a success.”


    With Apple saying that it has pioneered features such as integrated video and podcasting support, iMix playlist sharing, seamless integration with iPod and groundbreaking personal use rights, the iTunes Music Store is the best way for Mac and PC users to legally discover, purchase and download music and videos online. The iTunes Music Store features a selection of over 2,500 music videos, Pixar short films, and more than three million songs from the major music companies and over 1,000 independent labels.

  • Discovery Networks (Asia) & Nokia select 10 Indians as semi-finalists for Mobile Filmakers 2006 Awards

    MUMBAI: Discovery Networks Asia -a division of real -world entertainment company Discovery Communications- coupled with the leading mobile communications company Nokia‘s initiative giving consumers the opportunity to try their hand at mobile filmmaking for the Mobile FilmMakers 2006 Awards sees ten Indians in the list of short-listed applicants as semi finalists.


    The 10 semi-finalists -J. Philip, Jeevan Konkar, Kayoom Mohd. Hanif Mistry, Koushik Choudhury, Kshitij Shankhdhar, Prasad Indap, Sajal Maiti, Samrat Sengupta, Sunil Babbar, and Tushar Joshi – have attended a special workshop on 5 August in New Delhi to learn the finer points of filmmaking and vie for a place in the finals.
     
    Organized by Discovery Networks Asia and Nokia, local filmmaker Saumya Sen was present at the workshop to offer insights and invaluable tips on mobile filmmaking. Similar workshops will also be conducted in other countries for semi-finalists from across the region.


    The workshops, conducted by experts in the industry, provide the semi-finalists with an opportunity to further hone their filmmaking skills. The semi-finalists will also learn about the many filmmaking functions and features of the Nokia N90, which they will be using to shoot a 30-second clip.


    A panel of judges comprising representatives from Discovery and Nokia will select the best two clips, and the two finalists will represent India at the regional workshop in Singapore. Finalists from all participating countries will be announced at a later date. The grand prize winner will take home USD$10,000 cash and will also win a three-month stint at Discovery‘s regional headquarters in Singapore.
     
    The Mobile FilmMakers 2006 Awards is the second collaboration between Discovery Networks Asia and Nokia, following the success of last year‘s initiative. This initiative empowers mobile phone users everywhere with the knowledge and technology of mobile filmmaking at their fingertips, and provides them with the opportunity to showcase their talent.


    Discovery Networks Asia senior VP of programming and creative services James Gibbons said, “We were very impressed by the quality of entries this year. We hope to uncover more new talent from India and other countries throughout the region. The number of entries received also shows that interest in the genre of mobile filmmaking is growing, and an increasing number of people are taking an interest not only in snapping photos with their mobile phones, but also in shooting their own mobifilms and expressing their creativity in a different medium. The Mobile FilmMakers initiative has clearly helped change the traditional concept of mobile phones, and has taken filmmaking in an exciting new direction.”


    Nokia business manager, imaging solutions, Shyam Sundar said, “The training that the semi-finalists and finalists of the Mobile FilmMakers 2006 Awards will receive during the workshops are invaluable. We hope the workshop participants will not only put their new-found skills to good use, but also teach others in their community to build the mobile filmmaking genre. With devices like the Nokia 90, and the soon to be released Nokia N93, both armed with Carl Zeiss optics, we hope to make mobile filmmaking a common and enjoyable activity amongst camera phone users.”


    To enter the contest, applicants were required to submit a brief written description of not more than 300 words with the theme:”My Discovery”. This was a chance for participants to explore the documentary filmmaker within themselves – share unique, insights, knowledge and experiences and bring to life a ‘discovery moment‘ as it is imagined on screen. The semi-finalists were selected based on the strength of their idea relating to the theme.


    Re-inventing the way people view filmmaking, the contest had kicked off on May 8 and more information is available at www.mobifilms.net, according to an official release.

  • Viacom looking to acquire social networking site Bebo

    MUMBAI: In a bid to connect better with youth US media firms are looking to buy social networking sites. Last year, News Corp plonked down $580 million for MySpace.


    Now media reports indicate that Viacom is looking to acquire Bebo, a social networking site. In the UK, reports indicate that it has overtaken MySpace. In the US, though it has fewer users. It has 25 million users globally compared to around 90 million for MySpace.
     
    On Bebo, members can stay in touch with their college friends, connect with friends, share photos, discover new interests and just hang out. Reports indicate that it also provides video sharing (via VideoEgg widgets) and built-in Skype presence. While the designs may be more controlled than MySpace pages, most of Bebo’s success seems to arise from network effects – users join Bebo because everyone else is using the site.
     
    The founders of Bebo are said to be looking at upwards of a billion dollars. British Telecom‘s offer of around $400 million was reportedly turned down. For the week ending 5 August, Bebo was the most visited social network in the UK, and its market share of visits has grown 17 per cent in the past two weeks. 1 in every 135 UK visits goes to Bebo, which is now the 11th most visited site on the Internet. Viacom was also said to have been looking at one stage to acquire Facebook the second largest social networking site in the US.


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  • Apple integrates the iPod in US automobiles

    MUMBAI: Apple has teamed up with Ford, General Motors and Mazda in the US to deliver seamless iPod integration across the majority of their brands and models.


    This makes it easy for iPod users to enjoy and control their iPod’s high-quality sound through their car’s stereo system. With the addition of these models, more than 70 per cent of 2007-model US automobiles will offer iPod integration.


    Apple VP worldwide iPod product marketing Greg Joswiak says, “We are delighted that Ford, General Motors and Mazda will support iPod connectivity in nearly all of their new models. Now more than 70 percent of 2007-model US automobiles will offer iPod integration, with General Motors alone making it available on all 56 of its models, representing millions of cars and trucks.”


    Ford and General Motors will feature iPod integration in the majority of their 2007 models in the US beginning later this year, while Mazda’s entire global 2007 lineup of cars and SUVs will offer iPod connectivity. iPod offerings for Ford, General Motors and Mazda provide drivers with outstanding sound quality while charging the iPod, while conveniently storing the iPod in the glove compartment. Seamless iPod integration also allows drivers to use their car’s multifunction controls to select their music using artist, album, playlist or shuffle songs, as well as to easily skip between tracks and playlists.
     
     
    Apple says that the iPod and iTunes are leading the digital music revolution, providing the best way to listen to music on the go, at home and in the car.

  • Dish TV set to create niche channels to beat the competition

    NEW DELHI: With a second player in the DTH arena round the corner in the form of Tata Sky, Dish TV is finalizing creation of new channels for its subscribers.


    According to Dish TV CEO Sunil Khanna, work has started on new niche channels to be introduced on the DTH platform over the next 12-24 months.


    Pointing out that the target is to have a between 190-200 channels on Dish TV, Khanna said, “Some of the new channels would be created within the Zee group, while few may be brought in as part of third party distribution.”
     
    The reason behind creating niche channels instead of importing products from outside India is that not all niche channels available are suited for Indian viewers.


    For example, Khanna said, if Dish wants to introduce a premium gardening channel, there was no use getting one from outside as the weather conditions and local environment is different in India.
     
    “To give an instance, if we have a gardening channel, then it’s best to create it in India and in-house. This way we would also be able to study the feasibility of such niche channels, which may have limited, but loyal viewership that would be ready to pay even a premium,” Khanna said.


    Dish TV, country’s first pay TV platform, is managed by the Subhash Chandra-controlled ASC Enterprises that is the DTH licence holder. Another Chandra company, Zee Network, has a programme supply agreement with ASC.


    Dish TV, which is pumping up the noise around the usefulness of subscribing to a DTH service, is also increasing its investment in the project.


    “We have spent around Rs 3.5 billion in the DTH project till now, out of which a major part has been spent on customer acquisition,” Khanna said.


    He added that investment would be upped “as needed from time to time to expand operations and offerings.”