Mobile operators in emerging markets in Asia, Eastern Europe and Africa have a higher capex spend as a proportion of total revenues than their counterparts in Western Europe and the USA, according to new research by Informa Telecoms & Media.

Emerging market players MobiNil, VimpelCom, Bharti Televentures of India and Indonesia's Telkomsel had capex to revenue ratios of 35-65% in Q2 2005,  according to World Cellular Operator Benchmarks, a quarterly report from Informa Telecoms & Media. This compared with 22% for Verizon Wireless of the USA, and 10% for South Korea's KTF  during the same period.

"Operators in fast growth markets such as Russia and India are obliged to invest heavily in increasing capacity and coverage in order to sustain subscriber and revenue growth going forward" said John Everington, Senior Research Analyst at Informa Telecoms & Media. "This is less of an issue for operators in more developed markets, where subscriber growth has slowed."

MobiNil and VimpelCom also scored highly in terms of EBITDA margins in comparison with mobile operators in the USA and Europe such as Sprint and KPN. VimpelCom reported an EBITDA margin of 51.4% in Q2 2005, compared with 30.5% across KPN's mobile operations in the same period.

Exactly four years after Japan's NTT DoCoMo became the first operator to commercially launch W-CDMA in October 2001, a further significant milestone in the development of W-CDMA was reached when the World's 100th commercial W-CDMA network entered service in October 2005.

The century of live networks was reached when Hungarian operator Pannon officially launched commercial services over its W-CDMA network in October 2005. After taking two and a half years to reach 50 live networks during the second quarter of 2004, the number of W-CDMA networks in service has accelerated considerably and it has taken less than 18 months to double that figure.

According to Devine Kofiloto, Informa Telecoms & Media's Principle Analyst "the pace of W-CDMA network roll-out might appear sluggish, but interestingly enough, it bears striking parallels to early GSM network deployment"  He said "It also took 4 years for the 100th commercial GSM network to enter service, after Vodafone UK's first launch of GSM in Q4 1991"

Western Europe leads the way with a total of 50 W-CDMA networks in service this month, closely followed by Asia Pacific where there are a total of 37 functioning networks. South America is the only region to have not publicly announced plans to launch WCDMA services.

Siemens Communications has announced the availability of its third generation of fully tunable Surpass hiT 7500 optical transponders, with 10 gigabits per second capacity. The Surpass hiT Dense Wavelength Division Multiplexing (DWDM) platform makes Siemens a leading high-volume vendor, deploying maximum likelihood sequence estimator (MLSE) technology designed to dramatically improve dispersion tolerance for long-haul (LH) and ultra long-haul (ULH) optical routes.

The addition of the MLSE technology to the Surpass hiT DWDM platform increases dispersion tolerances over distances beyond 1,000 kilometers, enabling service providers to streamline dispersion turn-up procedures and facilitate end-to-end management along optical routes. MLSE allows service providers to reduce and in most cases eliminate the need - as required of older LH/ULH systems - to send technicians out to the field with expensive equipment to verify that residual dispersion tolerances are within acceptable ranges for operation.

In addition, the new Surpass hiT DWDM platform has improved the density of multiplexing transponders (256 client ports at 2.5 gigabits per second on a single-bay footprint). This helps reduce space requirements for the operator. For more deployment flexibility, the Siemens transponder technology also supports a number of client types while preserving full-band tunable lasers. New clients, for example, include 10 gigabit Ethernet LAN PHY and full G.709 transparency. This enables service providers to reduce the complexity of the system and the number of spare parts required.

"Siemens is strengthening its competitive footing significantly on the Surpass hiT 7500, thanks to its new transponders, establishing solid differentiation", said Dave Dunphy, Principal Analyst of Optical Infrastructure at Current Analysis. "This includes OpEx differentiators combined with competitive muxponder (multiplex transponder) density, band-wide tunable characteristics, and 10G LAN and WAN PHY support to give Siemens a strong competitive offering."

Another improvement to the new Surpass hiT 7500 platform includes increased service reach, thus reducing optical-electrical-optical (OEO) conversions. In turn, at sites where a simple line amplifier can now be deployed, capital and operating expenses can be reduced by as much as 10 times, as well as the physical space and power required at a regenerator site. To help system planners ensure efficient, end-to-end network planning, commissioning and management, the Surpass hiT 7500 provides its TransNet network planning tool, which integrates into Siemens' element management.

A complete set of plug-and-play features as well as direct transfer of commissioning data to the network also assist installation and provisioning. With options for amplifiers, transponders and Reconfigurable Optical Add/Drop Multiplexers (OADMs/ROADMs), the Surpass family of transparent optical network solutions - including the SURPASS hiT 7500 DWDM platform - helps service providers to make the most of application deployments. The multi-haul Surpass hiT 7500 family allows for multiple competitive configurations from regional to ultra long-haul applications and supports a variety of customer DWDM transport needs.

Next-generation operator obtains shareholder approval to finalize acquisition

Interoute has announced that it has completed the acquisition of publicly-traded VIA Networks and its operations in Spain, France and Germany, in addition to all PSINet Europe operations in Germany, France, Belgium, Netherlands and Switzerland.

Over the past few years Interoute has made several acquisitions to enhance its business.

These acquisitions have fallen into 3 distinct strategic categories -- acquisitions that have added density to the existing network infrastructure (Ebone), acquisitions that have added applications and services to drive network traffic (Virtue Media Services) and then acquisitions that have increased the reach of the existing network outside its existing footprint (CeCom).

The acquisition of VIA Networks provides applications and services to drive additional network traffic as well as a 19,000-strong company base of customers and revenue.

It further enhances Interoute's product portfolio, notably Managed Hosting and Managed Security, such that the newly enlarged portfolio combines Data, Voice and Hosting services, offered over a uniquely large geographic footprint -- no other provider offers this range of services across Europe.

The acquisition is said to 'dramatically improve' Interoute's ability to serve the Enterprise market.

Interoute's Executive Chairman James Kinsella commented, "Concluding this acquisition is an important milestone in further confirming Interoute's credentials as Europe's leading Next Generation Services company. We are confident that our innovative portfolio of services will not only benefit our newly enlarged community of customers, but will attract further customers wishing to benefit from better service performance and superior customer service."

Plurimedia joins O2's growing number of i-mode content providers

Plurimedia and O2 have announced a partnership to provide astro-services using the i-mode service to consumers in the UK.  The partnership sees Astralia available from October 1st 2005 and helps Plurimedia develop a close relationship with UK and Irish mobile consumers.  The Astralia site offers subscribers exclusive access to Astralia on its i-mode site.

Astralia site provides a whole range of esoteric products, such as Tarot and Celtic Rune readings, Numerology, Luck tests and Horoscopes. A specific section is dedicated to love coaching with compatibility testing, hints and advice, and romance astrology. Consumers have the choice between two subscriptions: £1 for unlimited access to the monthly animation, astrology and numerology services, £2 for unlimited access to the whole site.
 
Grahame Riddell, Head of i-mode Marketing for O2 UK said: “We are pleased to be working with Plurimedia to offer its astro-service to our customers.  Plurimedia has managed to capture the benefits of i-mode and joined the i-mode ecosystem to offer its users a compelling mobile experience.”
 
Fabien Baunay, Managing Director of Plurimedia, said “Astralia's presence on the i-mode service from O2 in the UK is part of our development strategy in Europe. The enthusiasm of consumers for mobile content and the success of Astralia in several countries encourages us in this approach.

Major UK charities have joined the DTI in hosting a conference exploring how Information and Communication Technologies (ICT) can be made more accessible to the millions of disabled and older people across Europe.  Technology under the microscope included TV and broadcasting, the Internet, telecommunications and electronic consumer goods.

During the UK presidency of the European Union, delegates from across Europe met in London on Friday 21 October to challenge the current barriers that prevent these technologies from being fully accessible.
 
Accessible technology can help transform the lives of millions of disabled and older people.  However, much existing and emerging technology is inaccessible to the 82 million adults in Europe who have a hearing loss and the 30 million that have a sight loss.  Action to address this exclusion is a crucial part of the EU’s quest to increase employment and growth and create an ‘Information Society for All.’
 
Guido Gybels, Director of New Technologies at RNID, says: “Access to Information and Communication Technology (ICT) is vital in order to take part fully in society.  Deaf and hard of hearing people form a large proportion of Europe’s population.  Provisions like interactive texting and subtitling have great potential to bring benefits to all European citizens.  It is crucial that EU legislation and standards are developed to ensure technologies used in delivering these services and products are fully inclusive.
 
“It is only through collaboration at conferences such as this that universal solutions can be developed.”
 
The Partner Organisations are calling on EU decision makers for:
· Universal access to telecommunications services and terminals for disabled and older people ensuring compatibility between networks, services and terminals
· Easy and comprehensive access to subtitling, audio description and signing on TV
· A permanent standardisation committee for disabled and older users
· The Internet to be more accessible to deaf and hard of hearing, deafblind, blind and partially sighted and, older people
· Increased availability and usability of mainstream electronic consumer goods for disabled and older people
 
Richard Orme, Head of Accessibility at RNIB, says: “Information and Communication Technology (ICT) has progressed in leaps and bounds over the past twenty years.  We now live in a society increasingly dependent on electronic devices, online services and the opportunities these developments can provide.  RNIB wants to see a future where ICT and its potential are harnessed for people with disabilities rather than one where it creates new barriers.
 
“Technology, when applied appropriately, can open up new vistas for learning and employment.  We are delighted that action is being taken at an EU level through the recent Commission Communication on eAccessibility.  We also welcome the UK Government’s commitment to addressing these issues. The productive partnership between government, industry and people with disabilities must continue long after the conference has concluded.”
 
Speaking at the conference, Alun Michael, UK Minister for Industry and the Regions said:  “Europe has made great advances in design and technology in the electronic arena, but we face two great challenges in the future.  First, we have to accelerate our development in the next generation of ICT, second – and absolutely vital for the world - the next generation of electronic products and services must be designed and delivered so that all of our citizens, including elderly groups and people with disabilities can fully participate in the Information Society.
 
“I hope this conference will ensure that the i2010 strategy in Europe and our own Digital Strategy in the UK will make inclusion a reality and that each member state will promote a consistent approach to eAccessibility for the benefit of everybody in Europe.”
 
European Commissioner for Employment, Social Affairs and Equal Opportunities, Vladimir Spidla and Bert Massie, Chairman of the UK Disability Rights Commission, spoke at the conference organised by RNID, RNIB, DTI, Age Concern, Sense and Help the Aged.  The conference attracted 250 delegates from throughout Europe including key policy makers, industry representatives, user groups and other stakeholders. 

Ericsson has announced that it has reached an agreement with Marconi Corporation plc to acquire the parts of Marconi's telecommunications business that are strategically important to Ericsson.

* The agreement strengthens Ericsson's position in the accelerating transmission segment
* Expands Ericsson's platform for leadership in next generation converging networks
* Adds sales of approximately SEK 14.0 b. (GBP 1.0 b.), acquisition price SEK 16.8 b. (GBP 1.2 b.)
* Will contribute positively to EPS from 2007, neutral effect in 2006
* Headquarters and certain businesses in UK and Germany are not part of the acquisition
* Marconi's UK pension plan is not part of the acquisition

Carl-Henric Svanberg, President and CEO of Ericsson, said: "The acquisition of the Marconi businesses has a compelling strategic logic and is a robust financial case. As fixed and mobile services converge, our customers will substantially benefit from this powerful combination."

According to Ericsson, Marconi's competitive transmission offerings, especially in optical systems, will combine with Ericsson's strong microwave radio position and worldwide sales organization to create a solid foundation for growth.

Ericsson's fixed network business combined with Marconi's broadband access offering and Marconi's long-standing relationships with leading fixed operators will reinforce Ericsson's market position.

Strategic assets

Ericsson will acquire assets representing about 75 percent of Marconi's turnover:

* Marconi's optical networking business
* Marconi's broadband and fixed radio access network business
* Marconi's softswitch business
* Marconi's data networking equipment and services businesses
* Marconi's relevant telecommunications services activities
* The Marconi trademark, associated brand names and IPR

Ericsson will pay approximately SEK 16.8 b. (GBP 1.2 b.) to Marconi in cash on completion, subject to certain closing adjustments. The acquisition will add roughly SEK 14.0 b. (GBP 1.0 b.) in sales and is expected to have a neutral effect on Ericsson's EPS in 2006 with positive contribution from 2007. Ericsson believes that operating margins in line with Ericsson's corporate average can be achieved in the acquired businesses over time.

The businesses to be acquired had net tangible assets of approximately SEK 1.4 b. (GBP 0.1 b.) at September 30, 2005. The acquisition cost for Ericsson will be allocated mainly to intellectual property rights (brands, trade marks, patents etc.), which are expected to be tax deductible for Ericsson.

End2End, Europe’s leading provider of outsourced solutions for mobile data, has announced the expansion of mobile messaging capability of MSN Messenger to  Scandinavia. 

The expansion is part of the rollout of MSN Messenger 7.5, which incorporates mobile messaging in the PC client and therefore drives the convergence of PC based internet and mobile.   
 
The latest release of MSN Messenger, including mobile messaging capability, has been available to MSN users in many markets around the world including;  Belgium,  France,  Germany,  Netherlands,  Spain and the   United Kingdom  since May 2005. Following the announced expansion, this service will also be available for MSN Messenger users in  Denmark,  Norway and  Sweden. 
 
“Mobile messaging is a logic al enhancement to PC based instant messaging and a great example of the convergence of PC internet and mobile services,” said Atte Miettinen, Chief Marketing Officer of End2End. “MSN has been one of the leading innovators of online services and we’re excited to be play a key role in executing some of the new innovations which will now doubt set the scene for others to follow.”