BPN 1441 Dutch pension funds in FttH

Three Dutch pension funds (ABP, PGGM and PvVervoer) have set up the Communications Infrastructure Fund (CIF) in which they have invested some €1 billion. The purpose of the fund is to develop, over the next ten years or so, a national fibre network through a range of mergers and acquisitions of existing networks as well as new builds and network expansion commitments. This network will be made available to all players including the incumbent KPN and the principal cableco UPC and Ziggo.

CIF also aims to invest in antennae to be used by mobile network operators for their mobile broadband offers based on HSPA+ and LTE technologies. The move is astute, given recent developments in both the fixed-line and mobile markets.

A report from the Task Force Next Generation Networks to the government in mid-2010 recommended that 90% of Dutch homes and businesses have access to NGN broadband services by 2020. The report covered proposals for rolling out faster networks, and assessed ways by which average download speeds could be increased to between 75Mb/s and 400Mb/s by 2020, compared to 5Mb/s to 14 Mb/s currently.

Mobile broadband will have a more substantial role to play in pushing high-end data services to rural areas: the April 2010 auction for licences in the 2.6GHz band saw four licences awarded to the joint venture between Ziggo and UPC, Ziggo 4 (set up in December 2009 to deploy and run telecom and broadcast networks). This will allow the cablecos, which together have near national geographic coverage, to complement their existing bundled services (based on fixed-line access) with mobile voice and broadband offers.

KPN’s HSPA network is currently being upgraded to provide up to 21.6Mb/s, while Vodafone in July 2010 doubled download speeds on its HSPA network to 28.8Mb/s in Amsterdam, Rotterdam, Utrecht and The Hague. Tele2 NL in the same month announced plans to trial LTE in Diemen and Amsterdam (Tele2 also received four licences in the 2.6GHz frequency auction). All of these players would be able to make use of CIFs fibre-based mobile antennae as backhaul.

A main consideration for CIF is to provide a healthy return on investment for its clients. Real estate and most stocks have proved very volatile since late 2008, and there remain few safe havens for investors. The final cost of the project may reach up to €10 billion.

For more info see: Budde Blog

BTW In June the fibre connection was brought to the cupbord of our Almere apartment. But there is still no live connection. All this FttH effort has been going on in our neighbourhood since 2009.

BPN 1441

BPN 1357 Germany heats up for eReader battle

The German magazine Wirtschafts Woche brings the item that Vodafone is developing an eBook reader. The article does not have any hard facts about the developer and the type of eBook reader, except that it is a large screen (DIN-A4) for newspapers. Vodafone is presently in the test phase.

To some bloggers the news came as a surprise, but Vodafone has been involved in eReader experiments in Germany as far back as 2004. The project was named Papyrus and involved a project on electronic newspapers and DVB-H. News items were transmitted with DVB-H, the standard for mobile interactive broadcast. In 2004 the first trial was held in Berlin with 200 users. But Vodafone researched also other carriers for DVB-H as carrier for electronic newspapers like an eReader.

Vodafone did not choose for the e-readers like iLiad and STAReBOOK as Les Echos did. It started working together with Benq, a joint venture of Siemens, in developing the electronic tabloid newspaper. But Benq sunk in 2006 and so did that part of the project. In 2007 the consortium, in which Bertelsmann participated, then investigated other digital paper producers like Plastic Logic (which still has not been launched in 2009). More details on the project Papyrus can be gained from a lecture by Mr Geissler in 2007). In 2008 Vodafone Group R&D commissioned the Linz lab-atelier to come up with an interaction concept for their eInk-Newspaper Project Papyrus and demonstrated it at the Ars Electronica.

So the question is now whether Vodafone is still with Siemens or Plastic Logic. But of course Vodafone can also cooperate with developers who have a small display at present. Like Samsung, which has an A5 eReader named Papyrus. Or like the small German developer txtr which will launch an eReader of eInk Vizplex 6" display at 600x800 pixels in the fall of 2009 for the general consumer market. Of course of interest would be to know who will deliver the newspapers and books. Given the early project association with Bertelsmann, it would be striaght forward to make an alliance with that publisher.

It is interesting to see that there is a battle developing in Germany. T-Mobile has indicated last year that it is developing an eReader for newspapers. Now Vodafone is said to launch an eReader in the fall right at the time, when the small German developer will present its eReader with a 6” display.

Even more interesting it is to see that this fight heats up at a time when Amazon leaves a gap in the European ereader market with the absence of a European version of Kindle. Amazon has difficulkties to get in the European market and especially European telecom market as it will have to negotiate in all 27 countries with telecom companies. The European telecom market is one big fragmented industry. With T-Telecom picking up the iPhone and Android gadgets, it would be logical that Amazon woulkd negotiate with T-Telecom. But then the question still is whether T-Telecom is willing to pay the price Amazon asks.

Blog Posting Number: 1357

Tags: eBook, eReader, DVB-H

BPN 1125 Costly sms texting from abroad

The Dutch telecom watchdog OPTA has started another fight with the telecom companies operating in the Netherlands. The bone of contention is the price of sms texting messages sent from a European country to The Netherlands. This is way too high, the watchdog claims. It calls upon the telecom companies too lower the charges and threatens, that it will go to the European Commission (EC), if they do not conform to the call.

The whole affair reminds of the mobile telephone tariffs contention half a year ago. Having warned the telecom companies to lower their tariffs, the companies did not give in. The EC ordered the tariffs to remain under the ceiling of 58 eurocents per minute. In this way the Dutch saved 77 million euro in half a year. The volume of telephone calls increased with six percent.

The Dutch telecom watchdog is now after sms texting as the Dutch operators such as KPN, Vodafone and T-Mobile apparently have raised their tariffs to compensate the lost revenues of the lowered mobile telephone tariffs. The average for and sms texting message to the home country in Europe is 35 eurocents, while the Dutch have to pay 58 eurocents on average for an sms texting message sent home.

Of course the operators deny the rise and use fallacies in order to justify the high tariff. With dry eyes Mr Bram Oudshoorn, spokes person for KPN (still loyal to KPN after all these years), looked into the television camera and explained that the number of Dutch people holidaying in Spain is a lot for Holland and they do send many sms texting messages. But for the Spanish company with which KPN has a bilateral agreement, this is only peanuts. That is why the Dutch pay more than for example Spanish people texting from The Netherlands. A nonsense argument as there are more Dutch holiday makers in Spain, than Spanish people working in The Netherlands or holidaying in the Low lands. He was lucky to find a non-critical journalist (and there are many in the field of technology); for I wonder how he would have explained the tariffs in Estland and Malta being under 20 eurocents for a sms texting message from a European country to Estland. But Mr Oudshoorn announced lower tariffs for summertime (most likely to be raised after that period).

It will be interesting to see whether the EC will interfere and put a ceiling to the tariffs. So the next battle area will be mobile internet. The tariff for this went down from 6,60 euro per 1MB to 5 euro. But this is still a high price. Some operators have started to put a flat fee in effect for consumers. Still the operators think from a production point of view and do not look at the marketing side of mobile internet. Even the basic lessons from history have not been learned. Setting a unit like 1 MB creates a taxi meter, something the veteran information services like Dialog and BRS did. Setting a flat fee creates an open market, new products and new sources of revenues.

Blog Posting Number: 1125

Tags: mobile telephone

BPN 1118 KPN goes mobile TV

On the even of the European football championship, the Dutch incumbent telco KPN launches its MobielTV service. KPN will use the DVB-H technology and will be competing with Vodafone, which uses UMTS and HSDPA.

MobielTV will offer 11 broadcast stations: Nederland 1, Nederland 3, RTL 4, SBS 6, Jetix/Veronica, RTL Z, MTV Music, Nick Toons, Xite, Discovery Channel en Playboy TV, while more stations will be added in the future. The service will be offered on Nokia and Samsung devices. The service will cost 9,50 euro separately; when bundled with a new subscription above 27,50 euro, the service will be free. The service will have coverage of 85 per cent in The Netherlands, while 65 per cent in the car and in the train.

KPN will be the only DVB-H information provider in the Netherlands in collaboration with its technology partner Samsung. KPN has the sole right to the DVB-T/H frequencies until 2017. KPN will be in the company of other European telcos, offering TV services. Italy was first in launching with Operator La 3 of H3G, part of Hutchinson Whampoa, and has 600.000 DVB-H users. In the meantime competition has started in Italy with Telecom Italia Movile (TIM) and Vodafone; in Italy UMTS is used as back-up service. DVB-H services are also operational in Germany (Mobile 3.0), Switzerland (Swisscom), Austria (TDF/Mediabroadcast) and Albania (DigitAlb).

KPN is negotiating with Vodafone and T-Mobile to offer the service MobielTV through their networks. Vodafone took the occasion to send out a press release, saying that Vodafone had already a mobile TV service with 14 stations and a subscription for 7,50 euro a month. It also notes that with DVB-H you can only watch live TV, while with mobile internet people can watch TV in their own time.

KPN can make use of the DVB-H technology as it runs the Digitenne television service in the Netherlands. This television distribution service is part of the offer by KPN, while KPN has also interactive TV via a broadband connection. In total KPN has 553.000 TV subscribers over against 296.000 subscribers last year.

It is a kind of sarcastic. But in 1997 KPN was ordered by the Telecom watchdog OPTA to get rid of its cable network company Vision; now the company competes with the cable companies on triple play. MobielTV is an advantage to KPN.

Blog Posting Number: 1118

Tags: mobile TV, digital TV, DVB-H