Covering: February-March 2012
Published: 10-12 times a year
Next report: April 2012
Pages: 68

Following the joyn launch (see seperate report), it emerged that the European Commission (EC) is looking into the activities of the ‘E5′ group (the five largest European mobile players) from an antitrust standpoint, in a move that might not only stymy the inter-operator efforts on RCS development, but also threaten other joint initiatives, such as Deutsche Telekom’s mobile wallet collaboration efforts with rivals (now seeking EC approval).

The Financial Times reported that the EC has demanded information from the GSM Association (GSMA) for the probe, and outlined concerns at a ‘tense and previously undisclosed face-to-face meeting in February [2012]‘. The investigation is said to have commenced in 2011, with an initial focus on the E5 grouping, but moved its attention to the GSMA after January 2012, when the E5 is said to have been disbanded and shifted activity to the association.

The newspaper said the probe’s focus is on whether the operators colluded “to the detriment of third parties and consumers”, not only in service development, but also in discussion of long-mooted bandwidth charges for content providers (Deutsche Telekomwatch, passim).

Stephane Richard, Chief Executive of France Télécom, issued an angry response to the investigation, saying a lawyer attended the operators’ meetings, and notes shared with the Commission. “I find it scandalous that today someone dares to demand an account of these meetings”, he said.

Nevertheless, while it would be astonishing if the E5 grouping has left itself wide open to antitrust investigators, it has for years been blatantly obvious that major mobile players have been synchronising standpoints and thinly-coded messages regarding key industry themes and concerns, as frequently evidenced by chummy keynotes, briefings and announcements at gatherings like Mobile World Congress (MWC).

However, this behaviour is not necessarily anti-competitive, and, in recent years, has been astonishingly ineffective, with little or no progress achieved by increasingly desperate calls to tackle the power of device vendors and activist regulators, or to get internet players to contribute more for data. Recent joint initiatives, such as the Wholesale Applications Community and others that are often fronted by the GSMA, have been most notable by their lack of success. Together, this leads many third parties to mock, rather than fear, operator collaboration and influence — with a gathering of tier-one operator chief executives now seen almost inevitably to mire and doom any joint initiative. Indeed, the prospects for the industry-led RCS and joyn have already been widely derided, while the more nostalgic commentators harp back to the long-ago successes like GSM and SMS, which were often aided by a then more supportive and activist EC.

Assertiveness by the EC might reflect impatience at operators’ constant carping against regulators (repeated remorselessly at nearly every MWC keynote), rather than acceptance of new realities of a mood and industry that has moved on. The Commission could also seek to raise pressure on operators to modernise decaying and disjointed voice and messaging revenue-led business models, to IP-centric, technology- and service- neutral data models.

[Further reference: Telecoms antitrust probe details revealed -- Financial Times, 18 March 2012.]

Central Europe’s communications titan — surveillance, analysis, insight.
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• Covering not just Germany's integrated telcoms leaders and all of its international operating companies, but also its wider interests, including OTE in Greece, Magyar Telekom in Hungary, and much more.
• Our ‘watch' titles are repeatedly described by clients and end-users as the single most valuable source of third-party sales intelligence, and are considered invaluable by many high-achieving commercial teams and account directors.
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• A ‘must-have' for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
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• Contact us for further information, including samples and evaluation trial requests. info@marketmettle.com / +44-20-7183-0111.

Covering: February-March 2012
Published: 10-12 times a year
Next report: April 2012
Pages: 68

1. Q4 FY11: Deutsche Telekom’s financial report for the three months to end-December 2011 showed improved headline performance trends, but did little to dispel the image of a Group corralled by competitive and economic pressures in most of its markets. DT offered an uninspiring forecast for the current and coming financial years, dropping an ambition to return its Europe operating area to growth during FY13. The Group has no choice but to continue to “operate frugally”, said Chief Executive René Obermann. [pp.4-11.]
2. While overall spending remains constrained, the results presentation saw executives detail a five-point, investment-led turnaround programme at T-Mobile USA, following the failure of the Group’s attempt to offload the challenged OpCo (and its “investment overhang”) to AT&T. This kicked off further speculation regarding how DT will fund TMUS’ plans, with sales of European assets and TMUS’ infrastructure again both mooted. [pp.12, 61-63.]
3. GROUP: Reshuffling of DT’s senior hierarchy continued, following the recent exit of Chief Technology and Innovation Officer Edward Kozel, with reports indicating that Chief Technology Officer, Olivier Baujard, has also now departed the Group, and that DT has appointed a new Chief Information Officer to handle its consolidating IT operations. Obermann confirmed plans to personally take a more direct role in DT’s growth initiatives, after adopting its Products and Innovation function at the start of 2012. [pp.9, 10, 13, 14.]
4. The spring 2012 CeBIT and Mobile World Congress trade shows saw DT and operator rivals continue efforts to dampen over-the-top cannibalisation — in both the consumer and enterprise segments. CEBIT saw DT flag plans to roll out a Business Marketplace of third-party cloud applications; while MWC witnessed the Group pledge support for Mozilla’s new Open Web Devices mobile platform, and the high-profile cross-operator rich communications service joyn. DT’s T-Venture investment arm also bought into “free messaging” application developer Pinger, which should provide a good source of intelligence in the OTT battle. [pp.15-17, 19, 20, 22, 23.]
5. DT trumpeted global partnership efforts in the machine-to-machine communications space, talking up the importance of ties with innovative niche vendors at MWC, and with partners preparing a pilot of international M2M deployments via UK joint venture Everything Everywhere and US vendor RACO Wireless. [pp.22, 58.]
6. GERMANY: DT signalled cost-cutting will remain high on the agenda for Telekom Deutschland in the near- to medium-term, after the rate of decline in the home market OpCo’s sales worsened to 6% in Q4, and the Group said it expects TDE to shed further revenue in the next two financial years. The OpCo’s core profit slipped only slightly across FY11, due to margin-preservation efforts, and DT said its focus will remain on “stringent cost management and long-term process optimisation”. [pp.25-27.]
7. Germany’s lukewarm competition around Long Term Evolution service rollout appeared set to heat up, with TDE and rivals highlighting further expansion in urban areas, and finally extending their LTE device families beyond mobile and fixed modems. In TDE’s case, this saw the addition of Samsung’s Galaxy Tab 8.9 tablet computer to LTE data packages for business customers. [pp.24, 28.]
8. It was again indicated that TDE could face legal hurdles if it seeks Bundesliga broadcast and cable distribution rights, the bidding for which is set to kick off between 15 companies. TDE has mooted a push for expanded Bundesliga coverage to support its DSL/satellite Entertain pay-television offering, which boosted customers by 177, 000 to 1.6 million in the last three months of 2011, but it could face complications relating to its minority government ownership. [p.31.]
9. TDE’s recent assault on cable operators’ heartland of housing association contracts appears to be causing jitters, with Germany’s largest cableco Kabel Deutschland questioning TDE’s potential to compete in the space. [p.32.]
10. EUROPE: The Eurozone crisis remained a heavy drag on Group performance and outlook, with the Europe operating segment seeing the sharpest sales drop (-10.2%) across FY11, and every regional OpCo reporting a decline in revenue. Largest unit OTE continued to play down the prospect that it will need a refinancing bail-out by DT, despite settlement of large chunks of debt looming, and the Greek group’s operations featuring prominently in the multiple write-downs announced by DT at end-FY11 [pp.33-36, 38, 40-42, 45, 46, 49, 50, 52, 53, 55, 56.]
11. State competition and intervention continued to add to the Europe division’s headaches in eastern European markets — notably in Croatia and Hungary, where “crisis” taxes are sapping cash flow, and Hrvatski Telekom and Magyar Telekom are threatened by government expansion into the private sector. HT hit out a plan by national postal operator Hrvatska Pošta to enter Croatia’s pay-TV market, while MT proved unsuccessful in an appeal against the regulator’s decision to allow a new, state-controlled mobile player. Wider competitive pressures also remained a large burden in Europe, with Cosmote Greece seeing its hopes dashed for a duopoly-created merger between smaller rivals Vodafone Greece and Wind Hellas. [pp.37, 43, 46, 47.]
12. T-Mobile Czech Republic is to decommission its time division duplex 3G fixed wireless service, having superseded the offering with expansion and enhancement of its main WCDMA/HSPA infrastructure. [p.39.]
13. Everything Everywhere is shortly to start its second large trial of LTE services, with a pilot in Bristol — and indicated ambition to commercially release the technology by the end of 2012 as it aims to get a jump-start on rivals, amidst ongoing local uncertainty over new spectrum availability. [pp.56, 57.]
14. SYSTEMS SOLUTIONS remained afflicted by the cost pressures of serving large enterprises during Q4 FY11, seeing sales dented by a switch in its charging structure for internal DT customers, and profit hurt by “assurance” and other costs of fulfilling big deals. [pp.59, 60.]
15. USA: Isis, T-Mobile USA’s mobile wallet joint venture, continued partnership-building ahead of its planned soft-launch, later in 2012. It tied with three American financial service providers — Barclaycard US, Capital One, and JPMorgan Chase — to market Isis-based offerings to consumers, and announced a string of deals with point-of-sale equipment players. Marketing specialist Mobilize Systems indicated it is in discussions with both Isis and DT’s equivalent Project Oscar UK venture, over mobile couponing services. [pp.14, 64.]

About Deutsche Telekomwatch

Report: #8
Covering: February-March 2012
Published: March 2012
Next report: April 2012

Central Europe’s communications titan — surveillance, analysis, insight.
A unique monthly report for the industry.

• Deutsche Telekomwatch is the only independent monitor of everything and anything to do with Deutsche Telekom Group, worldwide. Nothing else comes close. Thorough, impartial, accessible, and time-saving.
• Covering not just Germany's integrated telcoms leaders and all of its international operating companies, but also its wider interests, including OTE in Greece, Magyar Telekom in Hungary, and much more.
• Our ‘watch' titles are repeatedly described by clients and end-users as the single most valuable source of third-party sales intelligence, and are considered invaluable by many high-achieving commercial teams and account directors.
• A unique source of valuable opportunities, knowledge, planning, strategy, and much more, the reports represent both tactical tool and strategic reference, providing input and even a springboard for corporate planning, reporting, and meetings.
• A ‘must-have' for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
• Pricing is typically USD $8.2k / EUR 5.7k / UKP £5k per year for an Account Team Licence, and can be tailored to meet your specific needs and situation. Copies of individual reports are also available, priced from GBP £999 (USD $1,650 / EUR 1,100). Multiple purchasing options available, including payment cards.
• Delivered electronically 10-12-plus times a year, with back issues also available, providing unparallelled reference and insight into major events, strategic initiatives, financials and KPIs.
• Contact us for further information, including samples and evaluation trial requests. info@marketmettle.com / +44-20-7183-0111.

Covering: February-March 2012
Published: 10-12 times a year
Next report: April 2012
Pages: 68

• Table of Contents
• Index
• About Vodafonewatch

Table of Contents

1 Executive brief

4 Q4 FY11 management update

4 Cuts at forefront again as growth eludes
4 Group pushes for US recovery but still on back foot
5 Table 1. Deutsche Telekom, financial summary, Q4 and FY11
6 Targets: cash generation missed; cost cutting surpassed
7 Table 2. Deutsche Telekom, operational indicators, Q4 FY11
7 Operating areas: reliance on Germany remains
7 Table 3. Deutsche Telekom, Group Headquarters and Shared Services financials (as reported) and operational indicators, Q4 and FY11
8 Germany — preserving the cash cow
8 Europe — gloom reflected in write-downs and lowered target
9 USA — TMUS bears brunt of iPhone 4S isolation
9 Systems Solutions: execution difficulties linger; margin still sub-par
9 Growth Areas: mixed progress, Obermann ups involvement
10 Table 4. Deutsche Telekom, Growth Areas, progress on FY15 ambitions
11 Guidance: cautious
11 Table 5. Deutsche Telekom, FY12 financial guidance

12 Group

12 M&A
12 Group linked again with UK exit
13 People
13 Revolving doors still swinging, as Baujard departs…
13 …and new CIO comes in from Allianz
14 More changes in pipeline
14 Deutsche Telekom Management Board, March 2012
15 Regulatory
15 Pan-operator efforts attract EC suspicion
15 People movement highlights
15 Products & Innovation
15 Operators pin OTT hopes on joyn RCS launch
16 Android, BlackBerry, Windows backing secured, but Apple watches on
16 Can operators go against form?
17 Smit offers carrot and stick to OTT rivals — but will they listen?
19 Products & Innovation
19 DT ties with Mozilla on wider reach mobile push
20 Products & Innovation
21 Hase talks up third-party M2M innovation, NSN link
22 T-Venture
22 DT flags OpenStack-backed SME cloud push
22 First partners announced
22 DT joins an already-crowded market
23 Group sets up OpenStack team
23 DT expands smart metering push to heating and water
24 Terminals
24 Terminal highlights

25 Germany

25 Q4 FY11: margin protection still the priority
25 Table 6. Deutsche Telekom, Germany area financials (as reported), Q4 and FY11
26 Reliance on TDE increases, amid Euro-American troubles
26 TDE ups game on mobile customer acquisition
27 Table 7. Deutsche Telekom, Germany area key performance indicators and operational indicators, Q4 and FY11
28 Network
28 Products and services
28 TMDE targets Frankfurt with LTE expansion
28 Vodafone remains well ahead on LTE site count
28 Device, service competition finally heating up
30 Regulatory
30 BNA to rule on 2G/3G licence re-issue in 2013
31 Strategy
31 More doubts raised over TDE Bundesliga push
32 Kabel CEO seeks to dampen fears on TDE housing drive

33 Europe

33 Albania
33 Austria
33 Q4 FY11: commercial costs paste TMAU margin
34 Bulgaria
34 Table 8. Deutsche Telekom, Austria financials (adjusted) and operational indicators, Q4 and FY11
35 Croatia
35 Q4 FY11: Cost control to the fore, amid macro woes
36 Table 9. Deutsche Telekom, Croatia financials (adjusted) and operational indicators, Q4 and FY11
37 HT hits out at new state TV entrant
38 Czech Republic
38 Q4 FY11: Smartphone costs hurt TMCZ margin
38 Table 10. Deutsche Telekom, Czech Republic financials (adjusted) and operational indicators, Q4 and FY11
39 TMCZ to shut down secondary 3G network
40 Greece
40 Q4 FY11: OTE assets see another write-down
41 Table 11. Deutsche Telekom, Greece financials (adjusted) and operational indicators, Q4 and FY11
42 Copp plays down borrowing fears; no plans for DT “assistance”
43 No competitive respite for Cosmote after rivals’ talks fail
45 Hungary
45 Q4 FY11: DT bemoans “crisis” tax, unclear on removal
45 Table 12. Deutsche Telekom, Hungary financials (adjusted) and operational indicators, Q4 and FY11
46 Incumbents knocked back in new entrant appeal
47 Operators and regulators diverge over competitive levels
47 TMHU revamps core network for data challenges
48 MT teams with E.ON on smart-metering pilot
49 Netherlands
49 Q4 FY11: one-timer sees TMNE regain growth
49 Table 13. Deutsche Telekom, Netherlands financials (adjusted) and operational indicators, Q4 and FY11
50 Poland
50 Q4 FY11: currency, MTRs thwart TMPO recovery
50 Table 14. Deutsche Telekom, Poland financials (adjusted) and operational indicators, Q4 and FY11
51 Comarch wins deal to support NetWorks! JV
52 Romania
52 Slovakia
52 Q4 FY11: ST cost trimming kicks in
53 Table 15. Deutsche Telekom, Slovakia financials (adjusted) and operational indicators, Q4 and FY11
55 United Kingdom
55 Q4 FY11: EE cost cull offsets sales malaise
55 Table 16. Deutsche Telekom, UK financials (adjusted) and operational indicators, Q4 and FY11
56 Synergy programme “on track”
56 EE pushes for 2012 LTE rollout
57 EE to upgrade Northern Irish mobile network
58 EE, RACO Wireless prep March multi-IMSI pilot
58 RACO in talks over Group projects

59 Systems Solutions

59 Partnerships
59 Commercial
59 Q4 FY11
59 Focus remains on efficiency as margin slide continues
59 DT ready to renew customer acquisition
60 Products and services
60 Table 17. Deutsche Telekom, Systems Solutions’ financials (as reported) and operational indicators, Q4 and FY11

61 USA

61 Legal
61 Q4 FY11
61 TMUS seeks path to revival after write-down
61 iPhone 4S launch adds to pain
62 Marketing
62 Five-point redemption plan sees network, distribution, wholesale investments
62 T-Mobile USA ‘refresh’: main facets
63 Products and services
63 Table 18. Deutsche Telekom, USA area financials (as reported) and operational indicators, Q4 and 9m FY11
64 Isis signs three card issuers to partner roster
64 Alliance-building continues, as Isis seeks depth to combat Google
65 Regulatory
65 TMUS seeks to stop VZW spectrum grab

66 Index

Index

Symbols

3rd Generation Partnership Project (3GPP) 15

A

Adobe 19
Agora SA / Gazeta.pl 51
Albtelecom / Eagle Mobile 33
Alcatel-Lucent 13, 15, 16
Allianz SE / Desdner Bank AG 13
Amazon.com Inc. 22
American Express Company 64
Americas
- Latin America 19, 22
- (USA 4, 6, 7, 9, 11, 14, 20, 24, 28, 60, 61, 65
- – FCC 24
Apple 16, 19, 20, 61
- iPhone 9, 19, 20, 26, 61, 62
Asia-Pacific 34
- India 17
- Japan 22, 23
- Pakistan 34
- Vietnam 34
AT&T 4, 6, 12, 15, 23, 59, 61, 62, 63, 64, 65

B

Barclays plc / Barclaycard 64
Blue Jeans Network Inc. 15
BT Group 15, 57
Bundesliga 31
Business Telecom Tavkozlesi (Btel) 46

C

Capgemini 57
Capital One Financial Corp. 64
CareerBuilder LLC / JobScout24 10
Carrier IQ Inc. 20
CeBIT 22, 28, 60
Cellular South Inc. / C Spire Wireless 61
China Mobile / Zong (Paktel/CMPak) 34
Cisco Systems 15, 47
Citigroup 64
ClearPath Networks 22
Comarch SA 51
Comcast Corp. 65
Cox Communications Inc. 65

D

Dell 23
Deutsche Bahn 28
Deutsche Telekom
- Europe 50
- – Austria 12, 24, 33, 34, 40, 51
- – Bulgaria (OTE) 8, 24, 34, 40, 42, 49
- – Croatia (Hrvatski Telekom) 15, 22, 35, 36, 37, 38, 47
- – Czech Republic 38, 39, 57
- – Greece (see OTE) 8, 40, 43, 57
- – Hungary (see Magyar Telekom) 8, 22, 37, 40, 46, 47, 48, 49
- – Netherlands 8, 12, 40, 49, 50, 55
- – Poland (PTC) 5, 49, 50, 51, 57
- – - NetWorkS! 51
- – Romania (Cosmote/OTE) 42, 52
- – Slovakia (ST) 15, 22, 52, 53, 57
- – UK (EE) 12, 13, 55, 56, 57, 58
- Executives 23
- – Balz, Manfred 14
- – Bogdain, Thomas 15
- – Clemens, Reinhard 13, 14
- – Hase, Jürgen 21
- – Hauber, Robert 52
- – Horn, John 58
- – Höttges, Timotheus 6, 14
- – Humm, Philipp 62
- – Katzer, Martin 15
- – Kiessling, Thomas 14
- – Marić, Branimir 15
- – Millen, Matt 59
- – Müller, Markus 6, 13, 14
- – Nemat, Claudia 13, 14
- – Obermann, René 4, 6, 9, 10, 11, 12, 14, 17, 22, 26, 42, 46, 48, 59, 62, 63
- – Prlić, Stipe 15
- – Riedmann de Trinidad, Gabriele 23
- – Roehn, Steffen 13
- – Sattelberger, Thomas 14
- – Shick, Marion 14
- – Spiegel, Philip 15
- – van Damme, Niek Jan 14
- Ex-executives
- – Baujard, Olivier 13
- – Kerkhoff, Guido 14
- – Kozel, Edward 9, 13
- Germany 8, 9, 10, 11, 13, 14, 16, 22, 23, 24, 25, 26, 28, 30, 31, 32, 48, 51, 57
- – InteractiveMedia 15
- – Strato 9, 14, 25
- – T-City 48
- Investments
- – Magyar Telekom 8, 22, 37, 40, 46, 47, 48, 49
- – OTE 8, 40, 42, 43, 49
- Management Board 4, 13, 14
- Product and Innovation 11
- – Telekom Innovation Laboratories (T-Labs) 9, 14, 16, 19
- Products and services
- – Business Marketplace 22
- – Connected Car 10
- – De-Mail 28
- – Dynamic Services Platform 22
- – Entertain 10, 28
- – Entertain Sat 31
- – FamilyWhere Check In 63
- – iMeet 22
- – Intelligent Network Solutions 23
- – LIGA total! 31
- – Net&Roll 4G 47
- – Scout24 9, 14
- – Smart Connect 10, 48
- – Spend Analyzer 60
- – T-Mobile TV 24
- Strategy
- – Connected Home 10, 21
- – Growth Areas 4, 9, 10, 21, 22, 23, 48
- – Intelligent Network 10, 21, 23
- – One Company 35, 52
- – Save for Service 4, 6, 8, 13, 14, 59, 62
- Systems Solutions 5, 6, 7, 9, 11, 59, 60
- – Telekom IT 6, 13, 14
- – T-Systems 10, 13, 14, 15, 22, 48, 59, 60
- – - Slovakia 15
- – - Software Daten Service 60
- T-Venture 22
- USA 4, 5, 6, 9, 11, 12, 13, 20, 21, 24, 40, 57, 58, 59, 61, 62, 63, 64, 65
du (Emirates Integrated Telecoms.) 34

E

EMC 35
E.ON AG 48
Equinox Payments 64
Ericsson 15, 47, 52
Europe
- Albania 33
- – AKEP 33
- Austria 15, 33, 34, 56, 60
- Bulgaria 34, 40
- Croatia 35, 36, 37, 38, 47
- Czech Republic 19, 38
- France 14, 21, 56, 57
- Germany 4, 5, 6, 7, 8, 12, 14, 15, 19, 20, 22, 23, 25, 26, 27, 28, 30, 31, 32, 35, 48, 52, 55, 56, 63
- – BNetzA 30
- – Sparkassen-Finanzgruppe 35
- Greece 8, 11, 30, 40, 41, 42, 43, 49
- Hungary 14, 45, 46, 47, 48, 55, 56
- Ireland 57
- Italy 15
- Macedonia 47
- Netherlands 47, 49, 55
- Poland 50, 51
- Romania 8, 30, 40, 47, 52
- Slovakia 30, 52, 53
- – TÚ SR 52
- Spain 19
- Switzerland 59, 60
- United Kingdom 12, 14, 19, 55, 56, 57
- – Competition Appeal Tribunal 55
- – Ofcom 55, 56, 57
European Union 35, 37, 43, 46
- European Commission 14, 37, 55
Everything Everywhere Ltd (see DT, FT) 12, 55, 56, 57, 58
- Executives / Swantee, Olaf 56
- Orange UK 13, 56
- T-Mobile UK 13, 56

F

France Télécom 14, 21, 56, 57
- Orange 13, 15, 33, 51, 52, 56
- – Austria 33
- – Poland (Telekom. Polska) 51
- – Slovakia 52
- – Spain 15
- – UK (EE/DT) 12, 13, 55, 56, 57, 58

G

Google 16, 17, 19, 20, 22, 31, 64
- Android 15, 16, 19, 20, 24, 61, 63
Groupon Inc. 17
GSM Association 15, 16, 17, 20
- joyn 15, 16, 17
- MWC 15, 16, 17, 19, 20, 21, 24

H

Hewlett-Packard 23
High Tech Computer Corp. (HTC) 16, 24, 28
Hrvatska Posta 37, 47
Hrvatski Telekom (DT) 15, 22, 35, 36, 37, 38, 47
- Combis d.o.o. 35
- MAXtv 37
Huawei Technologies 16, 24, 51
Hutchison Whampoa
- 3 Group
- – Austria 33
- – UK 55, 57

I

IDG 23
Informa Telecoms & Media / Ovum 16
Ingenico 64
Intellectual Ventures 61
Internal Revenue Service 60
Italtel 15

J

JPMorgan Chase 51, 64
JVL Ventures, LLC (Isis, USA) 14, 64

K

Kom. für Zulassung und Aufsicht der Medienanstalten (Media Authority/ZAK) 31
KPN 15
- E-Plus 30

L

LG Electronics 16
Liberty Global Inc.
- Unitymedia GmbH 32
- UPC Broadband 51
LogMeIn Inc. 40

M

Magyar Fejlesztési Bank Rt (MFB) 46
Magyar Posta Pal Szabo 46
Magyar Telekom 8, 22, 37, 40, 46, 47, 48, 49
Magyar Villamos Művek Zrt. (MVM) 46
Manchester United 34
MasterCard 64
McKinsey & Co 13
Microsoft 15, 16, 22, 61 / Skype 16, 17
Middle East 34, 60 / UAE 34
Mobilize Systems 14
Motorola Mobility Holdings Inc. 16
Mozilla Foundation 19, 20
Multimedia Polska 51

N

NEC 22
Netia SA 51
Nokia 16
Nokia Siemens Networks 15, 21, 51
NTT (DoCoMo) 23
- Dimension Data / OpSource 23
Nuance Communications Inc. 63

O

OTE (Hellenic Telecom) 8, 40, 42, 43, 49
- Bulgaria (Globul) 8, 24, 34, 40, 42, 49
- Cosmote 8, 40, 42, 43, 52, 57
- – Albania (AMC) 33, 57
- – Greece 8, 40, 43, 57
- – Romania 42, 52
- HellasSat 42
- Romania (Romtelecom) 8, 40, 42, 52

P

PGi 22
Pinger Pinger 17, 22
PLUS Comm. Sh.A. (see also PTK) 33
Polycom Inc. 15
Premiere AG 22
Providence Equity Partners
- KDG Holding GmbH / (Kabel De.) 32
Publicis Group 56

Q

Qualcomm 19
Quanta Computer 15

R

Rackspace Managed Hosting 23
RACO Wireless 21, 58
RadioShack Corp. 62
Reliance-Anil Dhirubhai Ambani Group
- Reliance Comms. (RCom) 7, 26
Research In Motion / BlackBerry 16

S

Samsung 16, 24
SAP 22, 23, 59, 60
Scope Visio 22
Slovak Telekom 15, 22, 52, 53, 57
Sony Corp. 16
Sprint Nextel 59, 61, 64

T

Tech Data 59
Technology
- 2G 19, 30, 57
- – GSM 15, 20
- 3G 30, 33, 39, 57, 62, 63
- – HSPA 24, 33, 39, 53, 57, 62
- – UMTS 39
- – WCDMA 33
- 4G 24, 28, 47, 57, 62
- – Long Term Evolution (LTE) 5, 24, 28, 30, 47, 52, 56, 57, 61, 62
- DSL 28, 31, 39
- DVB-T 37
- Ethernet 47
- Fibre 12, 16, 52
- GPS 24
- HTML5 20
- IN 10, 21, 23
- IP 16, 31, 35, 37, 40, 47
- IPTV 31, 36, 41, 45, 53
- M2M 21, 58
- OpenStack 22, 23
- Rich Communication Suite (RCS) 15
- Smartphone 10, 15, 16, 19, 20, 23, 24, 28, 33, 38, 40, 57, 60, 61, 62
- SMS 16, 19, 63
- Spectrum
- – 800 MHz 28, 39, 56, 57
- – 900 MHz 30, 46, 47, 52
- – 1800 MHz 28, 30, 47, 52, 56, 57
- – 1900 MHz 39, 62
- – 2100 MHz 65
- – AWS 62, 63
- – Digital dividend 28, 30, 47, 56
Telecom Italia 15
Telefónica 8, 15, 19, 20, 22, 24, 28, 30, 39, 55
- Europe 28, 30
- – Czech Republic 39
- – España 15
- – Germany 8, 24, 28, 30
- – UK 55
Telenor ASA 46 / Hungary 46
TeliaSonera 21
Terra Firma Capital Partners (TFCP)
- De. Annington Immobilien GmbH 32
Time Warner 65
TNT NV 28
TRAVIK (Sixpack) 55

V

Velti 62
VeriFone Systems 64
Verizon Communications 15, 61, 64, 65
- Verizon Wireless 15, 61, 64, 65
- – Rural Cellular Corp. (RCC) 65
Viber Media 16, 17
Visa 64
ViVOtech 64
Vodafone 15, 17, 24, 26, 28, 30, 31, 33, 40, 43, 46, 55
- Europe Region
- – Albania 33
- – Germany 24, 26, 28, 31
- – Greece 40, 43
- – Hungary 46
- – Spain 15
- – UK 55

W

Wal-Mart Stores Inc. 62
WhatsApp Inc. 16, 17
WPP
- Prism 24

Y

Yahoo! 31

Z

ZTE Corp. 16

About Deutsche Telekomwatch

Report: #8
Covering: February-March 2012
Published: March 2012
Next report: April 2012

Central Europe’s communications titan — surveillance, analysis, insight.
A unique monthly report for the industry.

• Deutsche Telekomwatch is the only independent monitor of everything and anything to do with Deutsche Telekom Group, worldwide. Nothing else comes close. Thorough, impartial, accessible, and time-saving.
• Covering not just Germany's integrated telcoms leaders and all of its international operating companies, but also its wider interests, including OTE in Greece, Magyar Telekom in Hungary, and much more.
• Our ‘watch' titles are repeatedly described by clients and end-users as the single most valuable source of third-party sales intelligence, and are considered invaluable by many high-achieving commercial teams and account directors.
• A unique source of valuable opportunities, knowledge, planning, strategy, and much more, the reports represent both tactical tool and strategic reference, providing input and even a springboard for corporate planning, reporting, and meetings.
• A ‘must-have' for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
• Pricing is typically USD $8.2k / EUR 5.7k / UKP £5k per year for an Account Team Licence, and can be tailored to meet your specific needs and situation. Copies of individual reports are also available, priced from GBP £999 (USD $1,650 / EUR 1,100). Multiple purchasing options available, including payment cards.
• Delivered electronically 10-12-plus times a year, with back issues also available, providing unparallelled reference and insight into major events, strategic initiatives, financials and KPIs.
• Contact us for further information, including samples and evaluation trial requests. info@marketmettle.com / +44-20-7183-0111.

Covering: February-March 2012
Published: 10-12 times a year
Next report: April 2012
Pages: 38

BT Global Services published the findings of a study of 1, 300 public employees who consider themselves well informed about the Public Services Network (PSN), dubbed the “network of networks”, revealing that 69% consider the adoption of PSN as “important” or “very important” for their organisation’s efficiency programme.

PSN is a project undertaken by the UK Cabinet Office to create a single network for use by a series of suppliers, in order to save an estimated £500m per-year on the purchase of data and voice services through standardised network infrastructure, and by encouraging greater competition in the supply of public sector IT services. The BT research accompanied a conference on PSN, which it hosted, that saw representatives of more than 400 organisations gather to discuss the framework’s potential.

In May 2011, BT Group signed a deed of understanding with the Cabinet Office (BTwatch, #221), under which BT Global Services and BT Wholesale will participate in bidding for contracts under the PSN. BT Global Services will be one of up to 20 Direct Network Service Providers offering services to public sector customers, while BT Wholesale will become a key supplier of open and competitive Government Conveyance Network services.

As well as finding a generally positive attitude towards PSN (80% of respondents said that PSN connectivity will be valuable at their organisation), the study also identified a number of perceived barriers to the adoption of PSN among the survey participants: 14% said they would not adopt PSN without widespread adoption by other public bodies; and a further 12% said they would be deterred if there is a risk that their organisation’s cyber-security could be compromised. The study also found a lack of awareness of PSN, with 56% of respondents unaware of their organisation’s current stance on PSN.

In light of these findings, BT reiterated recommendations from the Public Administration Select Committee, backed by the government, to do more to increase awareness of modern information systems and technology across public services.

“ The public sector is right to be optimistic about the Public Services Network. PSN is a unique opportunity to transform the way the public sector works, making it easy for organisations to save money, simplify, and share services. PSN is the start of a journey, which, if planned well, will transform the way public services can be delivered. By making it easier for public sector organisations to buy and connect ICT [information and communications technology] networks and services, PSN will create opportunities that haven’t existed before. ”

“ The government estimates that by 2014, Britain’s public sector could be saving £130m or more a year. BT is playing a leading role in making the Public Services Network a reality. We’re committed to helping central government, defence, health, ‘blue light’, and local government customers prepare for PSN and the transformational benefits it will enable. This research gives us valuable insight into how our customers and stakeholders are feeling right now, so we’ll be using it to help us evolve our approach, and make sure we deliver precisely to their needs. ” – Neil Rogers, President, Global Government, BT Global Services.

BT is particularly keen to paint itself in a leading role within the PSN framework, as competition mounts from rivals such as Telefónica UK (BTwatch, #226), Virgin Media (BTwatch, #225), and Vodafone UK (BTwatch, #227) in the business and government sectors for IT and managed services. PSN suppliers are expected to be appointed throughout 2012.

BT is also jockeying for contracts on cloud-based services through its involvement with the government’s CloudStore, a portal for government bodies looking to introduce more cloud services. BT said it had a portfolio of five services available through CloudStore as it was launched at the beginning of 2012.

Ministry of Justice named as BT’s first PSN customer

While trumpeting the virtues of PSN, BT noted that the UK’s Ministry of Justice is its first customer to use PSN-compliant services under a contract that features the use of BT’s network and Siemens’ Internet Protocol telephony.

[Further reference: Public services network considered crucial to public sector efficiency drive, survey reveals -- BT, 28 February 2012; PSN and G-Cloud -- on track and ready for business -- BT, February 2012.]

For comprehensive coverage of BT Group worldwide, nothing comes close to BTwatch. Independent and unbiased, BTwatch offers unparalleled scope, valuable analysis and a considered view of BT’s corporate, domestic and international activities.

• BTwatch provides a thorough yet accessible grounding in the state of BT now, and where it is going. Following BTwatch enables our clients to get up to speed quickly, and stay ahead of their game.
• BTwatch provides comprehensive analysis and insight into everything relating to BT, including its Divisions -- BT Retail, BT Wholesale, BT Global Services, and BT Openreach -- and its European and wider international operations. Also covered in-depth are strategy, financials, and associates and investments (such as Tech Mahindra).
• Our ‘watch' report services are repeatedly described by clients and end-users as the single most valuable source of third-party sales intelligence, and are considered invaluable by many high-achieving commercial teams and account directors.
• A unique source of valuable opportunities, knowledge, planning, strategy, and much more, the reports represent both tactical tool and strategic reference, providing input and even a springboard for corporate planning, reporting, and meetings.
• A ‘must-have' for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
• Pricing is typically USD $8.2k / EUR 5.7k / UKP £5k per year for an Account Team Licence, and can be tailored to meet your specific needs and situation. Copies of individual reports are also available, priced from GBP £999 (USD $1,650 / EUR 1,100). Multiple purchasing options available, including payment cards.
• Delivered electronically 10-12-plus times a year, with back issues also available, providing unparallelled reference and insight into major events, strategic initiatives, financials and KPIs.
• Contact us for further information, including samples and evaluation trial requests. info@marketmettle.com / +44-20-7183-0111.

Covering: February-March 2012
Published: 10-12 times a year
Next report: April 2012
Pages: 38

1. Openreach confirmed the April launch and initial pricing for its up-to-80Mbps fibre-to-the-cabinet offering. Wholesale prices are around 50% higher than 40Mbps services, with availability across the Openreach fibre network to follow a software upgrade. TalkTalk was the first major service provider to announce plans for a commercial launch of 80Mbps services at a £5-per-month premium to its existing fibre offering, while BT Retail is yet to show its hand. Low-cost BT subsidiary Plusnet is trialling the service more extensively before commercial launch. [pp.28-29.]
2. BT Global Services announced a raft of contract wins and renewals, providing glimmers of optimism for the division, which has been struggling for profitable growth of late. The telco is to provide long-standing customer NATO with a global communications network under a five-year £39m deal. The unit also trumpeted a five-year £30m network outsourcing contract with financial services company Standard Life, as well as providing field force automation solutions to a division of technical services provider Imtech, with scope for expansion across the group. A £7m deal with Farrer Park health centre in Singapore was highlighted, and can be viewed as a success of BT’s commercialisation of its healthcare services experience, as well as progress in growing its Asia-Pacific business. [pp.16-19.]
3. BT Global Services stated its intention of doubling the scale of its business in Africa and the Middle East in the mid-term, echoing its commitments to target growth in Asia-Pacific and Latin America. The drive for growth is hoped to see the region’s contribution to divisional revenue reach close to 10% within three-to-five years. While a search for new revenue opportunities outside its traditional markets might be welcomed, the BT strategy on expansion increasingly appears poorly focused and opportunistic. [pp.21-23.]
4. BT is set to follow recent testing of LTE fixed-wireless solutions in Cornwall with trials of white spaces technology covering the same areas. BT had stressed that the LTE pilots with Everything Everywhere were only one of a number of options it was considering for alternatives to fixed-line broadband in hard-to-reach areas, and, although the findings were considered positive, the telco is also seeing strong performance from existing trials using redundant broadcasting frequencies to serve remote locations. LTE is certainly not being sidelined by BT, though, and the success of its lab trials into the potential for fixed and mobile network synergies from LTE technology, conducted in conjunction with mobile broadband gateway developer Stoke, was trumpeted. [pp.8, 26-27.]
5. Deadlines expired for UK regional authorities to submit to the government plans for programmes to roll out superfast broadband to rural areas aided by central funding, with two Tyneside councils missing the cut-off date. Both authorities indicated they are still committed to next-generation access projects, and alluded to partnerships with BT, but the prospect of the government taking more direct control of the process could affect their ability to make decisions on partners. Fujitsu Telecommunications remains buoyant on its prospects for competing with BT on BDUK funding, a year after revealing its intention to participate, and in the wake of its withdrawal from recent BDUK-linked projects in Scotland and Wales. The technology vendor expects to win regional contracts ahead of the incumbent in coming months, and was also positive on Openreach services for communications providers. However, it was noted in the media that the BT access services division has yet to see any takers for its physical infrastructure access products for fibre, raising suggestions that revised prices are still too high. Fujitsu, which worked with BT on infrastructure access pilots, expressed confidence that, while there is still work to be done on the specifications of PIA, a viable product is within reach. [pp.4-6, 31-32.]
6. BT Group is considering offering a new claims management service to external customers, building on in-house experience of handling insurance claims for its BT Fleet unit. [p.7.]
7. Irish vendor Kinesense was awarded a contract to provide security solutions intended to stem the tide of copper cable thefts across BT’s UK network. [p.7.]
8. BT Retail and TalkTalk lost the latest round of their legal appeal against implementation of the Digital Economy Act in the UK. Further appeals are possible, and being considered, but the incumbent is now framing its legal action against the Act as an exercise in clarification of its scope, rather than an attempt to overturn it completely. Enthusiasm within government for the implementation of its more controversial elements also appears equivocal. BT appears still to be pursuing options for the introduction of music streaming services, which might provide an alternative to proscribed activities. [pp.9-10, 12.]
9. BT Engage IT is expanding its presence in NGD Europe’s tier 3+ data centre in Wales, to meet demand for cloud and co-location services. In Germany, BT Global Services unveiled plans for a new data centre in Frankfurt, to meet similar rising demand among its customer base. [pp.14, 23.]
10. BT Conferencing was seen deepening its relationship with Cisco on telepresence conferencing with another accreditation. The teleconferencing sector continues to see alliances and partnerships spring up, but both BT and Cisco were notable absentees from the group supporting a new standardised and interoperable high-definition conferencing solution announced earlier in February. [p.15.]
11. Momentum is gathering for the UK’s Public Services Network, which will enable public bodies to use a single network over which a range of suppliers can deliver data and voice services. The Ministry of Justice said it is working with BT on projects that are already compliant with the terms of the initiative. [pp.19-20.]
12. BT Global Services showcased an updated BT Connect portfolio at the CeBIT conference in Germany, with a focus on network intelligence that is intended to support strategic use of communications infrastructure. The telco is working with vendors including Compuware, Ipanema Technologies, and Riverbed to expand the BT Connect portfolio. [p.24.]
13. BT Wholesale selected IP solutions developer Genband to support its IP Interconnect offering, which enables interconnection between a wide range of global operators and platforms. [p.27.]
14. A multicast offering for fibre networks was launched by Openreach, which could herald the launch of retail services using the technology, with BT Retail expected to be more active in the IPTV field in coming months. [p.32.]
15. The Office of the Telecommunications Adjudicator indicated that progress is being made on effective service level guarantees from Openreach, building on more accurate forecasting of demand for appointments and order fulfilment from communications providers. The total number of UK unbundled lines is now comfortably past eight million. [p.33.]
16. The European Union cleared Ofcom’s new regulatory charge controls on LLU and WLR products from Openreach, which will come into effect from April 2012. BT is pondering an appeal against the decision as the final Ofcom proposals sit towards the more severe end of the range of cuts the regulator had been considering. The merits of LLU as a whole were also cast into doubt, following research commissioned by Ofcom. [pp.34-35.]

About BTwatch

Report: #231
Covering: February-March 2012
Published: March 2012
Next report: April 2012

For comprehensive coverage of BT Group worldwide, nothing comes close to BTwatch. Independent and unbiased, BTwatch offers unparalleled scope, valuable analysis and a considered view of BT’s corporate, domestic and international activities.

• BTwatch provides a thorough yet accessible grounding in the state of BT now, and where it is going. Following BTwatch enables our clients to get up to speed quickly, and stay ahead of their game.
• BTwatch provides comprehensive analysis and insight into everything relating to BT, including its Divisions -- BT Retail, BT Wholesale, BT Global Services, and BT Openreach -- and its European and wider international operations. Also covered in-depth are strategy, financials, and associates and investments (such as Tech Mahindra).
• Our ‘watch' report services are repeatedly described by clients and end-users as the single most valuable source of third-party sales intelligence, and are considered invaluable by many high-achieving commercial teams and account directors.
• A unique source of valuable opportunities, knowledge, planning, strategy, and much more, the reports represent both tactical tool and strategic reference, providing input and even a springboard for corporate planning, reporting, and meetings.
• A ‘must-have' for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
• Pricing is typically USD $8.2k / EUR 5.7k / UKP £5k per year for an Account Team Licence, and can be tailored to meet your specific needs and situation. Copies of individual reports are also available, priced from GBP £999 (USD $1,650 / EUR 1,100). Multiple purchasing options available, including payment cards.
• Delivered electronically 10-12-plus times a year, with back issues also available, providing unparallelled reference and insight into major events, strategic initiatives, financials and KPIs.
• Contact us for further information, including samples and evaluation trial requests. info@marketmettle.com / +44-20-7183-0111.

Covering: February-March 2012
Published: 10-12 times a year
Next report: April 2012
Pages: 38

• Table of Contents
• Index
• About Vodafonewatch

Table of Contents

1 Executive brief

4 BT Group

4 Digital Britain
4 Councils miss BDUK deadline, but claim BT partnership
5 Financial reports
5 Missed deadline may spark centralised approach
6 Fujitsu confident of snatching BDUK contracts from BT
7 Operations
7 Public sector using BT as example of efficiency
7 Insurance
7 BT to offer claims management services
7 Operations
7 BT selects Kinesense in fight against metal theft
8 Research and development
8 BT completes LTE tests with Stoke

9 BT Retail

9 Digital home
9 BT launches new video baby monitor
9 Digital content
9 BT and TalkTalk lose DEA fight
10 Advertising
10 BT sponsors London Live
10 Plusnet
10 Plusnet uses internet predictions for self-promotion
12 Corporate social responsibility
12 BT online music service mooted, again
13 OnLive
13 OnLive Desktop launch angers Microsoft
13 Regulatory
13 BT cheers as mobile operators’ MTR appeal backfires
14 BT Engage IT
14 BT Engage IT to expand data centre
15 BT Conferencing
15 BT deepens Cisco relationship as more providers tie up

16 BT Global Services

16 Awards and accreditations
16 Contracts
16 BT wins £39m NATO deal for global network services
16 Global Services wins £30m Standard Life deal
18 Financial services
18 ING Bank deal gives Radianz access to Russia
18 BT wins Farrer Park health deal in Singapore
18 Positive news continues trickling through on health solutions
19 Financial services
19 FEX joins Radianz Cloud
19 Imtech awards BT field force automation deal
19 Public sector contracts
19 BT highlights demand for PSN
20 Tech Mahindra/Mahindra Satyam
20 Ministry of Justice named as BT’s first PSN customer
21 BT International: Africa and Middle East
21 Expansion plans for Africa, the Middle East, and Turkey
22 Investment focused on local staff and hubs, while partnering on connectivity
22 BT flags range of portfolio on offer
22 Stability important for regional growth
23 Expansive strategy highlights challenges in Global Services’ core
23 BT International: Europe
23 BT to open new data centre in Frankfurt
24 Products and services
24 BT updates BT Connect portfolio

26 BT Wholesale

26 Network
26 BT to launch white space trial in Cornwall
27 Regulatory support encouraging adoption
27 Products and services
27 BT selects Genband for Global IP Interconnect solution

28 Openreach

28 Fibre
28 Openreach confirms 80Mbps FTTC upgrade and pricing
29 Network
29 TalkTalk first to announce 80Mbps commercial launch
31 Suppliers
31 Openreach may turn to Portugal for fibre services
31 No takers for PIA yet, but Fujitsu sees potential
32 Fujitsu confident of PIA viability, with tweaks
32 Products and services
32 Multicast for GEA launched by Openreach
33 OTA2
33 BT offers service guarantees, if CSP demand as forecast
34 Regulatory pricing
34 Ofcom confirms wholesale pricing, but BT protests
34 BT still objects
35 Research questions effectiveness of LLU

36 Index

Index

A
Adobe Systems, Inc., 13
Alcatel-Lucent, 15
Apple, 13, 14

B

Berg Design, 26
British Broadcasting Corporation (BBC), 26
Broadband Delivery UK (BDUK), 4, 5, 6, 31, 32
BSkyB, 26, 31
BT Group
- Asia
- – Tech Mahindra, 20
- BT Fleet Partners
- – BT Claims, 7
- BT Global Services, 4, 7, 16, 18, 19, 20, 21, 22, 23, 24
- – BT Advise, 24
- – BT Asia Pacific, 18
- – BT Benelux, 22
- – BT Compute, 22
- – BT Connect, 16, 22, 23, 24
- – BT Health, 7
- – BT International, 21, 23
- – BT One, 22, 23
- – BT Radianz, 18, 19
- – Ethernet Connect, 16
- – One Source for Cisco TelePresence, 15
- – Spain, 21
- BT Innovate & Design, 8
- BT Retail, 9, 10, 12, 14, 29, 32, 34
- – BT Business, 14
- – BT Conferencing, 15
- – BT Contact, 22
- – BT Engage IT, 14
- – BT Home Hub, 12
- – BT Vision, 12, 32
- – Digital Music Awards, 12
- – OnLive, 13, 14
- – Plusnet, 10, 29
- – Together, 12
- BT Wholesale, 8, 19, 26, 27, 33, 34
- Executives
- – Alvarez, Luis, 21
- – Bilton, Chirs, 8
- – Galvin, Mike, 28
- – Hageman, Edwin, 22
- – Hambley, Marc, 15
- – Hopkins, Mark, 7
- – Kelly, Jeff, 21, 22, 23, 24
- – Patterson, Gavin, 12
- – Rogers, Neil, 20
- – Saied, Tariq, 14
- – Sargent, Tim, 31
- – Stagg, Nigel, 26
- – Taylor, Kevin, 18
- – Thornhill, John, 14
- – Williams, Sean, 26
- – Wyatt, Trevor, 27
- Innovate & Design
- – Adastral Park, 8
- Openreach, 6, 28, 29, 31, 32, 33, 34, 35
- – Fibre Voice Access, 29
- – GEA-FTTC, 28, 29
- – Multicast for GEA, 32
- – Physical Infrastructure Access (PIA), 31
Business Services Organisation, 7

C

Cabinet Office (UK), 19
Cambridge Consultants, 26
Cambridge TV White Space Consortium, 26
CeBIT, 24
Centre for Future Studies, 10
ChildLine, 12
Cisco Systems, Inc., 8, 15
Citizens Online, 12
Competition Appeals Tribunal, 13
Compuware, 24

D

Department for Business, Innovation & Skills
Department for Culture, Media and Sport
- BDUK, 4, 5, 6, 31, 32
Deutsche Telekom, 15
Digital Britain, 4
Digital Economy Act (UK), 9, 10, 12

E

Ericsson, 15
European Union, 10
- European Commission, 34
Everything Everywhere (Orange UK, T-Mobile UK), 13, 26

F

Farrer Park Company, 18
Financial and Energy Exchange Group, 19
France Télécom, 15
- Orange Business Services, 15
Fujitsu, 6, 31, 32
- Fujitsu Telecommunications Europe, 6

G

Gartner Group, 16
Genband, 27
Google
- Android, 13, 14

H

High Court, 10, 12
Hutchison Whampoa
- Geo, 31

I

Imtech, 19
ING Bank NV, 18
Ipanema Technologies, 24
Italtel, 15

K

Kinesense, 7

M

Mahindra Satyam, 20
Microsoft, 13, 14, 23
- Lync, 23
- Windows 7, 13, 14
Ministry of Justice, 20
Mobile Termination Rates (MTR), 13

N

National Health Service (NHS, UK), 18
NATO, 16
Netpropagate, 26
Neul, 26
Newzbin2, 12
Next Generation Data Limited
- NGD Europe, 14
Nokia, 26
Nokia Siemens Networks, 15
Nomura, 5
North Tyneside Council, 4

O

Ofcom, 9, 13, 26, 27, 31, 32, 33, 34, 35
- Carrier pre-selection, 33
- LLU, 31, 33, 34, 35
- Physical infrastructure access (PIA), 31, 32
- Price controls, 34
- Richards, Ed, 26, 27
- Wholesale Line Rental, 34, 35
Office of the Telecommunications Adjudicator (UK), 33
- OTA2, 33
Olympic Games
- London 2012, 10
OnLive, Inc., 13, 14

P

Polycom, 15
Portugal Telecom, 31
Public Services Network (PSN), 19, 20

Q

Quanta Computer, 15

R

Redknee, 20
Riverbed, 24

S

Samsung, 26
Saudi Telecom, 21
Siemens, 20
South Tyneside Council, 4
Spotify, 12
Standard Life, 16
Steepest Ascent, 26
Stoke Inc, 8

T

TalkTalk Telecom Group plc, 9, 10, 29, 31
Tech Mahindra
- Mahindra Satyam, 20
Technology
- 2G, 8
- – GSM, 15
- 3G, 8
- 4G
- – LTE, 8, 26
- Broadband, 4, 5, 6, 8, 12, 26, 27, 28, 29, 31, 32, 35
- CCTV, 7
- Ethernet, 16, 32
- Fibre, 6, 12, 22, 28, 29, 31, 32
- – Fibre-to-the-cabinet (FTTC), 28, 29
- HD, 15
- IP, 16, 20, 27, 32
- LLU, 31, 33
- MPLS, 22
- Multicasting, 32
- Private circuits, 31
- PSTN, 27
- SIP, 27
- Telepresence, 15
- Unified communications, 15, 22, 23
- VoIP, 27
- Wi-Fi, 8, 27
Telecom Italia SpA, 15
Telefónica, 13, 15, 20
- Telefónica Europe, 13
- – UK, 13
The Pirate Bay, 12
TTP, 26

U

UBS, 5
University of Strathclyde, 26

V

Verizon Communications, 15
Virgin Media, 4, 20, 29, 31
Visabeira Group, 31
Vodafone
- UK, 13, 20

W

Wireless Broadband Alliance (WBA), 8

Y

YouView, 32

About BTwatch

Report: #231
Covering: February-March 2012
Published: March 2012
Next report: April 2012

For comprehensive coverage of BT Group worldwide, nothing comes close to BTwatch. Independent and unbiased, BTwatch offers unparalleled scope, valuable analysis and a considered view of BT’s corporate, domestic and international activities.

• BTwatch provides a thorough yet accessible grounding in the state of BT now, and where it is going. Following BTwatch enables our clients to get up to speed quickly, and stay ahead of their game.
• BTwatch provides comprehensive analysis and insight into everything relating to BT, including its Divisions -- BT Retail, BT Wholesale, BT Global Services, and BT Openreach -- and its European and wider international operations. Also covered in-depth are strategy, financials, and associates and investments (such as Tech Mahindra).
• Our ‘watch' report services are repeatedly described by clients and end-users as the single most valuable source of third-party sales intelligence, and are considered invaluable by many high-achieving commercial teams and account directors.
• A unique source of valuable opportunities, knowledge, planning, strategy, and much more, the reports represent both tactical tool and strategic reference, providing input and even a springboard for corporate planning, reporting, and meetings.
• A ‘must-have' for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
• Pricing is typically USD $8.2k / EUR 5.7k / UKP £5k per year for an Account Team Licence, and can be tailored to meet your specific needs and situation. Copies of individual reports are also available, priced from GBP £999 (USD $1,650 / EUR 1,100). Multiple purchasing options available, including payment cards.
• Delivered electronically 10-12-plus times a year, with back issues also available, providing unparallelled reference and insight into major events, strategic initiatives, financials and KPIs.
• Contact us for further information, including samples and evaluation trial requests. info@marketmettle.com / +44-20-7183-0111.

Covering: February 2012
Published: 10-12 times a year
Next report: March 2012
Pages: 70

Telefónica partners Sybase 365 for mWallet services

Telefónica Digital highlighted a strategic partnership with Sybase 365, Sybase’s mobile commerce subsidiary. The deal is expected to see the businesses work together to provide mobile wallet services supporting the planned launch of Telefónica’s mWallet offerings in Europe and Latin America in the first half of 2012.

“ The mobile wallet lies at the heart of our financial services strategy, and it is crucial that we deliver a strong, simple, and secure user experience to our customers. Sybase 365 is a leader in its field whose expertise will be a key element in helping us bring the best customer experience to market. ” – Joaquín Mata, Head of Financial Services, Telefónica Digital.

Sybase 365 joins a number of major partners for Telefónica in the mobile financial services space. Most recent activity has focused around the partnership with payment technology company Giesecke and Devrient for the development and supply of SIM cards for near-field communications (NFC)-based mobile payment services (Telefónicawatch, 2009.10), and the supply of its Trusted Service Manager technology as underlying platform for NFC services (Telefónicawatch, #61).

Telefónica’s mWallet service is designed to store debit, credit, loyalty, and prepaid cards, and will offer a range of financial services, including payments, peer-to-peer transfers, and a stored value account. NFC capabilities will not be included from the start in all markets, but Sybase’s solution does include support for NFC.

The Sybase deal does not, however, extend to the UK, where Telefónica UK is part of an m-payments joint venture with Everything Everywhere and Vodafone, called Project Oscar (Telefónicawatch, passim).

[Further reference: Telefónica selects Sybase 365 for mobile wallet -- Telefónica, 14 February 2012; Sybase 365 and Telefónica expand mobile financial services with innovative mobile wallet -- Sybase 365, 14 February 2012; Telefónica to launch mobile wallet service by mid-year -- FierceTelecom, 15 February 2012.]

Telefónica ties with Tecnocom for payment processing

Telefónica Digital’s Financial Services division signed a five-year agreement with Tecnocom, a Spanish technology company, for the latter to supply software to support authorisation, card management, payment processing, and routing for Telefónica’s future mobile wallet services. Tecnocom will provide technical assistance to Telefónica in financial services and support for developing future financial services products. The deal initially covers Spain and several Latin American markets.

The Tecnocom agreement adds to a number of Telefónica Digital partnerships around financial services, including with Sybase 365 (see separate report), which will develop the interface for the mobile wallet service. Telefónica has previously announced contracts with payment technology company Giesecke and Devrient for the development and supply of SIM cards for near field communications (NFC)-based mobile payment services (Telefónicawatch, 2009.10), and the supply of its Trusted Service Manager technology as the platform to support NFC services (Telefónicawatch, #61).

Tecnocom, through its subsidiary Getronics, has previously provided management services for Telefónica customers in Spain’s banking sector (Telefónicawatch, 2008.03).

[Further reference: Telefónica elige a Tecnocom para ofrecer su plataforma de procesamiento de medios de pago -- Tecnocom, 27 February 2012.]

Telefónica unveils Wanda brand for MasterCard JV

Telefónica Digital announced its new corporate and consumer brand, Wanda, for its 50:50 joint venture (JV) with MasterCard for the development of mobile financial solutions in Latin America. The company also revealed the executive team that will lead the JV going forward. However, there are still no firm details of launch plans for the service.

Wanda will offer mobile payment services linked to a mobile wallet or prepaid account to enable services such as bill payments, mobile airtime reloads, money transfers, and retail purchases, with the aim of capturing financial services customers among the “unbanked”. The JV will use the tagline “Tu dinero móvil” (“Your mobile money”).

“ The creation of the brand is a key milestone for the MasterCard and Telefónica joint venture in Latin America. Wanda and its newly appointed team are in good shape to continue building the foundation of a strong company that will be focused on offering a complete set of innovative mobile payment solutions, that will give access to financial services to the unbanked population in the region. ” – Joaquin Mata, Global Head of Financial Services , Telefónica Digital.

The company also referenced a global agreement between Wanda and Mobile Payment Solutions (MPS), under which MPS will be responsible for developing and implementing the mobile wallet technology and its services. The companies did not provide any details on MPS on launch, but it appears to be a reference to the partnership between MasterCard and StarHub, which is supporting the Telefónica and MasterCard rollout (Telefónicawatch, #54).

The two companies launched their JV in January 2011 (Telefónicawatch, #52), covering the twelve Latin American countries where Telefónica operates under the Movistar brand, but notably excluding Brazil. In November 2011, the two companies extended the JV to additionally cover Vivo’s 65 million customers in Brazil (Telefónicawatch, #60). However, within the Wanda branding announcement, Brazil has once again been conspicuously omitted.

Wanda team announced

Telefónica announced the following appointments for the team leading the Wanda JV:

• Sergio Regueros was appointed Lead Executive of Wanda. Regueros has worked for Telefónica for seven years in a variety of senior management roles in Latin America and Spain, including Regional Director for Telefónica’s mobile business for northern Latin America (Mexico and Central America), and President of Telefónica Móviles Colombia.
• Wes Rivel was appointed Lead Executive for Finance at Wanda. Rivel has worked at MasterCard for twelve years in a variety of senior business planning, finance, pricing, and risk management roles, including Senior Vice-President of Market Models & Business Strategy, Market Development, for MasterCard Latin America and the Caribbean.
• Marco Sá was appointed Lead Executive for Technology and Operations at Wanda. Sá was formerly Chief of Technology Operations at Mobile Financial Solutions, and previous roles include Chief Administrative Officer at Banco ITAÚ Europa, and Director of Operations & Technology at Citibank Group.
• Pablo Montesano, formerly Telefónica’s Global Director of Financial Services, was appointed as Lead Executive for Sales and Marketing. In his previous role, Montesano led a number of initiatives such as co-branded card programmes, mobile insurance, Movistar’s and O2′s prepaid mobile wallet, near-field communications and payments.
• Rodolfo Durán was named Lead Executive for Strategy at Wanda. He previously served as a Principal for MasterCard Advisors Latin America, MasterCard Worldwide’s consulting arm.

The new company’s Latin American operations will be headquartered in Miami, Florida.

[Further reference: Telefónica and MasterCard's joint venture unveils brand name -- Telefónica, 23 February 2012; MasterCard, Telefónica join forces -- Zacks Investment Research, 27 February 2012.]

Ongoing tracking and insight into Telefónica Group; delivering valuable insight into the labyrinth that is Spain’s global telco giant.
A unique monthly report for the industry.

• Telefonicawatch is the only independent monitor of everything and anything to do with Telefonica Group, worldwide. Nothing else comes close. Thorough, impartial, accessible, and time-saving.
• Covering not just a leading European and Latin American integrated telecoms group and one of the world's top-five players and its many operating companies, but also its wider interests, including the Atento contact centre business, Vivo in Brazil, Telecom Italia, Portugal Telecom, and China Unicom.
• Our ‘watch' titles are repeatedly described by clients and end-users as the single most valuable source of third-party sales intelligence, and are considered invaluable by many high-achieving commercial teams and account directors.
• A unique source of valuable opportunities, knowledge, planning, strategy, and much more, the reports represent both tactical tool and strategic reference, providing input and even a springboard for corporate planning, reporting, and meetings.
• A ‘must-have' for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
• Pricing is typically USD $8.2k / EUR 5.7k / UKP £5k per year for an Account Team Licence, and can be tailored to meet your specific needs and situation. Copies of individual reports are also available, priced from UKP GBP £999 (USD $1,650 / EUR 1,100). Multiple purchasing options available, including payment cards.
• Delivered electronically 10-12-plus times a year, with back issues also available, providing unparallelled reference and insight into major events, strategic initiatives, financials and KPIs.
• Contact us for further information, including samples and evaluation trial requests. info@marketmettle.com / +44-20-7183-0111.

Covering: February 2012
Published: 10-12 times a year
Next report: March 2012
Pages: 70

1. Telefónica presented an array of innovative products and solutions at the 2012 Mobile World Congress hosted in Barcelona, in various states of development and commercial viability. The telco is working with web developer Mozilla on the potentially hugely disruptive Open Web Device platform, which is intended to deliver mobile smart devices running on the open web and using HTML5-based applications for all functionality. Qualcomm is also working on the project, with chipsets for devices, and Deutsche Telekom is adding research support. A prototype device was demonstrated, and the partners suggested handsets could cost a tenth of the cost of an Apple iPhone. It was suggested the OWD devices could drive smart device adoption in markets such as Latin America, and, in the longer term, could impact more established smart device markets, building on a broad developer base and applications that will be transferable between platforms and devices. The initiative could be seen threatening the dominance of more established operating systems, such as Apple’s iOS and Google’s Android, and act as an early marker for Telefónica Digital’s innovation aspirations. Telefónicawatch also noted that a JaJah IP telephony app seemed to feature prominently on the prototype MozillaPhone, suggesting a willingness to embrace over-the-top services. [pp.24-26.]
2. The run up to MWC also saw a volley of announcements from Telefónica on M2M, and Telefónica Digital is clearly building up to a major assault on this emerging segment. Links with Telit to provide a platform enabling smaller market players to offer M2M solutions at scale were trumpeted, and the participation of China Unicom in M2M management systems flagged, raising the possibility of more alliances with vendors and operators. Telefónica is providing M2M connectivity to General Motors’ subsidiary OnStar, and supporting the offering with a deployment across its own vehicle fleet. [pp.21-23.]
3. Also around MWC was a series of announcements from Telefónica on progress in mobile payments. Sybase 365 was heralded as a strategic partner for Telefónica’s upcoming mWallet services, in both Europe and Latin America. Tecnocom also signed to provide support software for payment authorisation around mWallet offerings, which are already under trial in the UK. In Latin America, the financial services joint venture with MasterCard was christened Wanda, and a launch team for service was revealed. [pp.18-20.]
4. Telefónica Group released results for the 2011 financial year just days before MWC, and the media hoopla surrounding the industry event gave the telco cover to bury bad news. While headline profit was hit by one-off exceptionals, the underlying business continues to struggle, and is increasingly dependent on Latin America, and, more specifically, Brazil for positive performance that can make a difference at Group level. The FY11 results were the last to be reported under Group’s old divisional structure. Telefónica tried to use the results as a launching point for a recovery, but concerns about financial performance remain, and there is implied scepticism that the Group can reach targets. [pp.4-13.]
5. Telefónica massaged down its fiscal guidance for 2012, reducing expectations on margins, and setting revenue growth expectations at the bottom end of mid-term growth forecasts. The measure for the Group’s leverage position was also changed, which went some way to distracting from missing guidance on the debt metric. [pp.6-7.]
6. Financial performance in Brazil and Mexico was in the Latin America limelight for very different reasons. Brazil is now presented as an integrated business, with synergies delivering at the top-end of expectations, and to be embracing opportunities to expand into additional in-country regions. Telefónica Mexico continues to resemble a business in turmoil, and efforts undertaken to strengthen the core of the business, including an improved and more clearly defined customer base, so far have only revealing the extent of work that still needs to be done, as shedding customers has done nothing to boost average revenue. [pp.34-36, 39-40, 41-42.]
7. Business in Spain continues to suffer, and the company does not expect customer sentiment to improve any time soon, but the telco seemed bullish on the potential for its tariff refresh to stabilise its position, and the focus of recovery will be on improving customer service and the perception of the OpCo. Telefónica in the UK is also making efforts to restore its vitality, after performing a U-turn on its strategy of remaining aloof when there was deemed to be little value present. The operator acknowledged that ignoring low-margin competition was harming the business’s relevance in the wider market, and market share is once again being prioritised over margin enhancement. Telefónica spoke confidently on its Germany business, which has been buoyed by increasing scale with growth driven by a commercial strategy that has proven itself, at a time when sister operating companies in Europe have floundered with defensive posturing. [pp.44-46, 47-48, 53-55, 59-61.]
8. Telefónica sold its 13% stake in satellite broadcaster Hispasat to Abertis, raising EUR124m, as it looks to dispose of non-core assets and improve its debt position. There was speculation that a sale of the troubled Irish O2 unit could be on the cards. [pp.14, 15.]
9. Building on a previously announced partnership with VMware and Samsung, the imminent Telefónica launch of a new solution called DualPersona was flagged at the MWC. The offering will be Telefónica’s first concerted attempt to deliver ‘bring your own device’ services to enterprise customers, which enable users to have a single device with discrete modes for work and personal use. The offering will form part of the cloud computing service catalogue. The telco also demonstrated fleet mobile device management projects. [pp.20, 27.]
10. Telefónica Multinational Solutions confirmed a five-year EUR21m contract with BAE Systems for fixed and mobile voice services across the UK. [p.29.]
11. Telefónica demonstrated an LTE network in Barcelona for MWC, showcasing the Alcatel-Lucent lightRadio technology, which is said to offer a cheaper and faster network roll out using compact units and enabling simplified configuration. Telefónica has been an early advocate of the Alcatel-Lucent solution, and a contract in Spain could be worth EUR300m to the vendor. [pp.31-32.]
12. Polish operator Polkomtel, a former Vodafone investment, was linked to future membership of Telefónica’s partner programme. [p.33.]
13. Ceragon Networks was awarded a contract to provide wireless backhaul systems to Telefónica operating companies in Chile, Panama and Venezuela. In the Latin America region, the telco is partnering Bertelsmann and Grupo Planeto on eBook products, and working with TeleCommunications Systems on navigation services. Telefónica de Argentina awarded Finland’s Comptel a contract to deliver billing solutions. [pp.37-38.]
14. O2 Germany looks set to expand availability of its LTE network and launch new tariffs and devices by mid-2012. The company appeared to have fallen somewhat behind its larger rivals on new network rollout, but could be live in over 200 cities and towns by July 2012. [p.49.]
15. Telefónica indicated that its new-wave services in growing vertical markets, which have begun to gain footholds in the UK, are to be deployed more extensively across the Group footprint, and there is evidence of this expansion in Europe. In Germany, a new digital marketing service is to be launched, while, in Ireland, mobile money services are to be expanded to the youth market, echoing O2 UK efforts. [pp.50, 52.]
16. A youth MVNO with some similarities to UK testbed Giffgaff is also now on the Irish market. In Spain, Telefónica-owned social network Tuenti launched its own MVNO, TuentiMovil, with a data and social connectivity focus. [p.51, 56.]
17. Telefónica announced a development of its Frigo personal cloud platform, with a new file-sharing solution. A new self-care mobile applications portal, expected to launch in the Spanish market, also appears to be a further development of the platform, and is being built on HTML5 by Capgemeni’s Backelite business. [pp.19, 56.]
18. In the UK, Telefónica launched Flying Start, a new fixed-line voice and broadband service for medium-sized enterprises. BE Broadband, the fixed-line broadband network of Telefónica in the UK, appears to have committed to launching fibre services in conjunction with incumbent BT. The broadband business is losing customers, perhaps as its cutting-edge reputation has slipped, and it has dithered on fibre products strategy. [pp.62, 63.]
19. Telecom Italia also posted its full year results, with Latin America providing growth for the Group. Nevertheless, the Italian incumbent still cut its dividend, which will reduce the cash flowing into the Telefónica-backed Telco SpA holding company. [pp.66-67.]

About Telefonicawatch

Report: #63
Covering: February 2012
Published: March 2012
Next report: March 2012

Ongoing tracking and insight into Telefónica Group; delivering valuable insight into the labyrinth that is Spain’s global telco giant.
A unique monthly report for the industry.

• Telefonicawatch is the only independent monitor of everything and anything to do with Telefonica Group, worldwide. Nothing else comes close. Thorough, impartial, accessible, and time-saving.
• Covering not just a leading European and Latin American integrated telecoms group and one of the world's top-five players and its many operating companies, but also its wider interests, including the Atento contact centre business, Vivo in Brazil, Telecom Italia, Portugal Telecom, and China Unicom.
• Our ‘watch' titles are repeatedly described by clients and end-users as the single most valuable source of third-party sales intelligence, and are considered invaluable by many high-achieving commercial teams and account directors.
• A unique source of valuable opportunities, knowledge, planning, strategy, and much more, the reports represent both tactical tool and strategic reference, providing input and even a springboard for corporate planning, reporting, and meetings.
• A ‘must-have' for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
• Pricing is typically USD $8.2k / EUR 5.7k / UKP £5k per year for an Account Team Licence, and can be tailored to meet your specific needs and situation. Copies of individual reports are also available, priced from UKP GBP £999 (USD $1,650 / EUR 1,100). Multiple purchasing options available, including payment cards.
• Delivered electronically 10-12-plus times a year, with back issues also available, providing unparallelled reference and insight into major events, strategic initiatives, financials and KPIs.
• Contact us for further information, including samples and evaluation trial requests. info@marketmettle.com / +44-20-7183-0111.

Covering: February 2012
Published: 10-12 times a year
Next report: March 2012
Pages: 70

• Table of Contents
• Index
• About Vodafonewatch

Table of Contents

1 Executive brief

4 Telefónica Group

4 Telefónica Q4/FY11 results
4 Telefónica reports on tough year, but Digital offers hope
4 Profit plunges on exceptional items as Group restructures
4 Record cash flow cold comfort as targets hit through semantic acrobatics
5 Latin America dominance unabated; shrinking Spain still a drag
5 Table 1. Telefónica, selected financial data, Q4 and FY11
5 Telefónica makes peer comparisons, but refuses to name names
5 MTR cuts impact downplayed — in Europe at least
6 Telefónica guidance given another reality check
6 Telefónica has a chance to deliver more now it is promising less
6 Telefónica committed to TI as Telco refinances
7 Circumstances prompt modesty on dividend strategy
7 Accesses pass 300 million, but questions of value remain
7 Financial
8 Table 2. Telefónica Group, customer numbers (’000), Q4 FY11
8 Latin America prepay may be masking a multitude of sins
8 Awards and accreditations
9 Table 3. Telefónica Group, final accesses numbers by division (’000), Q4 FY11
9 Weight of expectations on Telefónica Digital
10 Mobile data monetisation said to be becoming a reality
11 Assumptions on data profitability built on patterns of big spenders
11 SMS significance downplayed as OTT fears linger
11 Bundles immunising against text revenue slump, but is it a long-term cure?
12 Board uncomfortable as difficult questions raised
13 Board exasperated by focus on mast sales
14 Acquisitions and disposals
14 Telefónica sells Hispasat stake for EUR124m
15 Telefónica denies Irish disposal rumours
15 Irish business small and underperforming, but offers transformation benefits

16 Telefónica Digital

16 Conferencing
16 Operators agree videoconferencing standards
16 Collective agreement features notable absentee
16 Mobile World Congress
16 Telefónica focuses on key verticals at MWC
18 Financial services
18 Telefónica partners Sybase 365 for mWallet services
18 Telefónica focuses on key verticals at MWC cont’d…
19 Telefónica ties with Tecnocom for payment processing
19 Telefónica unveils Wanda brand for MasterCard JV
19 Telefónica focuses on key verticals at MWC cont’d…
20 Wanda team announced
20 Telefónica focuses on key verticals at MWC cont’d…
21 M2M
21 Telefónica partners Telit for SME M2M
21 Digital continuing to create small partner ecosystem
21 Associates and investments
22 Unicom joins Telefónica M2M management system
22 BlueVia
23 Telefónica wins M2M deal from OnStar
23 Telefónica to deploy M2M on own car fleet
24 Mobile platforms
24 Telefónica ties with Mozilla new mobile platform
25 Hardware interfaces
25 DT also chipping in development support
25 A sign Telefónica is braced to embrace OTT
26 Taking the fight to Apple and Google
27 Virtualisation
27 Telefónica, VMware prep BYOD tie-up launch
27 NFC
28 Wayra
28 Wayra España ties with Caixa Capital Risc
28 Wayra links with MIT

29 Telefónica Global Resources

29 Devices
29 Device highlights
29 Multinational Solutions
29 Telefónica wins BAE Systems voice contract
31 Networks
31 Telefónica demonstrates LTE network
32 Major win for Alcatel-Lucent
33 Telefónica to complete Barcelona fibre rollout
33 Partner programmes
33 Polkomtel considers partnership with Telefónica

34 Telefónica Latinoamérica

34 Regional
34 FY11: Dominant Brazil still carrying hopes for region
34 Networks
35 Table 4. Telefónica Latinoamérica, revenue and OIBDA by country, Q4 and FY11
35 Commercial activity posing risks for profit
36 Outside Brazil, southern OpCos move start reflecting European patterns
36 Latinoamérica mobile customers papering over cracks for Group
36 Table 5. Telefónica Latinoamérica, customer numbers (’000), Q4 FY11
37 Telefónica picks Ceragon for microwave backhaul
37 Telefónica recruits partners for e-book venture
38 Telefónica partners TCS for LatAm navigation services
38 Argentina
38 Telefónica selects Comptel for mediation platform
39 Brazil
39 FY11: Brazil asset integration complete, time to build
39 Table 6. Telefónica Latinoamérica, Brazil, financial results, Q4 and FY11
39 Mobile grows, but fixed-line stumbles on modest broadband rise
40 Table 7. Telefónica Latinoamérica, Brazil, customer numbers (’000), Q4 FY11
40 Unbundling threat, and opportunity, played down in Brazil
40 El Salvador
40 Telefónica to dispose of fixed interests in El Salvador
40 Colombia
40 Movistar pushed to feature rivals in price promotions
41 Mexico
41 FY11: Mexico still getting its house in order
41 Table 8. Telefónica Latinoamérica, Mexico, financial results, Q4 and FY11
41 Market share dropping, but core may not be strengthening
41 Telefónica backs OECD report
42 Table 9. Telefónica Latinoamérica, Mexico, customer numbers (’000), Q4 FY11
42 Telefónica may face anti-trust investigation

44 Telefónica Europe

44 Q4/FY11 results
44 Telefónica erosion continues in tough conditions
44 Table 10. Telefónica Europe, financial highlights, Q4 and FY11
44 People
45 Customer numbers rise with strong contract performance
45 Table 11. Telefónica Europe, customer numbers (’000), Q4 FY11
45 Germany continues strong form; Ireland still in doldrums
46 Table 12. Telefónica Europe, revenue and OIBDA by country, Q4 and FY11
46 Czech Republic
46 Telefónica abandons broadcast network plans
46 Czech Republic
47 Germany
47 FY11: Telefónica Germany bullish on continued progress
47 Table 13. Telefónica Germany, financial results, Q4 and FY11
47 Telefónica to expand call centres
48 Continued strength in the contract base; fixed-line picture mixed
48 Table 14. Telefónica Germany, customer numbers (’000), Q4 FY11
48 Average data ARPU outstrips prepay
48 Table 15. Telefónica Germany, KPIs, Q4 FY11
49 O2 Germany flags plans for July LTE expansion
50 Telefónica ties with Sapient for digital marketing
50 Deployment of UK-trialled services underway
50 BNA to rule on licence re-issue in 2013
51 Ireland
51 O2 launches “48” youth-targeted MVNO
52 O2 expands O2 Money card to under-18s
52 Slovakia
53 Spain
53 FY11: España taking medicine, but recovery uncertain
53 Table 16. Telefónica España, financial highlights, Q4 and FY11
53 Customers cutting spending but bundles offer hope
53 Telefónica renews MACH deal for fraud protection
54 Fixed telephony still crumbling, and broadband sees bad year
54 Table 17. Telefónica España, customer numbers (’000), Q4 FY11
55 Data still not compensating for total ARPU decline
55 Table 18. Telefónica España, wireless KPIs, Q4 FY11
55 Movistar to refocus on existing customers
56 Telefónica launches TuentiMovil
56 Movistar preps multi-OS self-care portal
57 Telefónica claims success in 3G/Wi-Fi video pilot
59 United Kingdom
59 FY11: UK U-turn on market engagement
59 Table 19. Telefónica UK, financial results, Q4 and FY11
59 United Kingdom
60 Telefónica acts to maintain market relevance
60 Table 20. Telefónica UK, customer numbers (’000), Q4 FY11
60 United Kingdom
61 Modest data revenue rise as customers watch spending
61 Table 21. Telefónica UK, KPIs, Q4 FY11
62 O2 launches “Flying Start” for SMEs
62 Operators’ MTR appeal backfires
63 BE Broadband to use BT fibre
63 BE plans suggest lack of ambition from O2 on UK fibre
64 O2 strategist sets out predictions for 2012
64 O2 trials flexible working
65 O2 drops free access to The Cloud hotspots

66 Associates and investments

66 China Unicom
66 Huawei wins network upgrade contract
66 Telecom Italia
66 LatAm boosts TI results, but dividend to drop
66 China Unicom
66 Telecom Italia
67 Economic environment blamed for dividend reduction
67 TIM set for EUR1.3bn Brazil investment
67 Telecom Italia

68 Index

Index

Symbols

2e2, 29, 64

A

Abertis, 14
Albion London, 60
Alcatel-Lucent, 16, 18, 31, 32
América Móvil, 41, 42 / Telcel, 42
Amobee, 21
Anatel, 34
Antena 3, 19
Apple, 24, 25, 26, 56, 64, 66
- iOS, 20, 24, 25, 26, 48, 56, 64
AT&T, 9
Avantel, 40

B

BAE Systems, 29
Barclays / Pingit, 59
Bertelsmann, 37
Bouygues Telecom, 33
British Broadcasting Corporation, 19
BSkyB, 60, 65
- The Cloud, 65
BT Group, 16, 60, 62, 63, 65, 66
- BT Wholesale, 63
Bundesnetzagentur für Elektrizität, Gas, Telekom., Post und Eisenbahnen, 49, 50

C

Caixa Capital Risc, 28
Capgemini, 56
Casio, 24
Ceragon Networks, 37
China Telecom, 66
Circulo de Lectores, 37
Cisco Systems, Inc., 16, 19, 57
Citigroup / Citibank, 20
Citrix Systems, 64
Cloud, The, 65
CMT (Spain), 33
CNMV, 14
Competition Commission, 42
Comptel, 38
Czech Telecommunication Office (CTU), 46

D

Daisy Group, 61
- Fone Logistics, 61
- SpiriTel, 61
Deutsche Telekom, 16, 25, 26, 49, 50
- Slovak Telekom, 52
- T-Mobile Germany, 49

E

EMC
- VMware, 27, 64
Ericsson, 16, 32
Etisalat, 32, 33
European Union, 52
- European Commission, 59
Evernote, 22
Everything Everywhere (FT/DT), 18, 59, 62

F

Facebook, 48, 60
France Télécom
- Orange, 16, 24, 44, 52
- – UK, 44

G

General Motors, 23
- OnStar, 23
Giesecke & Devrient, 22
Google, 19, 24, 26, 27, 29, 56, 64
- Android, 19, 20, 22, 24, 25, 26, 27, 29, 48, 56, 57, 64
Greenpacket, 19, 57
Grupo Planeta, 37
GSM Association (GSMA), 16
- MWC, 16, 18, 19, 20, 21, 22, 24, 31, 32, 37, 48, 56, 57, 64

H

Hansen Technologies, 56
Hewlett-Packard, 8, 26
High Tech Computer Corp. (HTC), 49
Hispasat, 6, 14, 15
Huawei, 24, 32, 66
Hutchison Whampoa, 15
- 3 Ireland, 15
- 3 Italia, 66
3 UK, 59

I

Inbursa, 42
Intel, 24
Isobar, 27
Italtel, 16

J

Jacada, 63
John Doe, 61

L

La Caixa, 28
LG, 27
LiMo Foundation, 24

M

MACH, 53
MasterCard, 19, 20
Masternaut, 23
Mediaset, 16
Microsoft, 21, 26, 64
- Windows Phone, 21, 26, 48
Millicom, 40
MIT, 28
Motorola, 29
Mozilla, 24, 25, 26, 56
MVNOs, 51, 56

N

NEC, 24
NetQin, 22
Nokia, 21, 24
Nokia Siemens Networks, 16, 32
NTT DoCoMo, 24

O

OECD, 41
Ofcom (UK), 62
Office of Fair Trading
- Competition Appeal Tribunal (CAT), 62
Olympic Games, 59, 64
Omnicom Group, Inc.
- Organic, 34
Orascom
- Wind Telecomunicazioni SpA, 66

P

Panasonic, 24
Polkomtel, 33
Polycom, 16
Portugal Telecom, 4, 6

Q

Qualcomm, 24
Quanta Computer, 16

R

Regions
- APAC
- – China, 15, 22, 23, 66
- EMEA
- – Czech Republic, 45, 46, 47, 48
- – Europe, 5, 7, 9, 10, 11, 12, 15, 16, 18, 21, 24, 28, 36, 40, 41, 44, 45, 46, 52, 59, 60, 64
- – Finland, 38
- – France, 33
- – Germany, 7, 9, 15, 22, 25, 29, 32, 37, 45, 47, 48, 49, 50
- – Ireland, 9, 15, 45, 51, 52
- – Italy, 6, 66, 67
- – Luxembourg, 40
- – Portugal, 4, 6
- – Slovakia, 45, 52
- – Spain, 4, 5, 6, 7, 11, 14, 16, 19, 20, 22, 23, 25, 28, 32, 33, 37, 48, 53, 54, 55, 56, 57, 64
- – Switzerland, 33
- – UK, 9, 11, 18, 22, 27, 28, 29, 44, 45, 48, 50, 51, 52, 59, 60, 61, 62, 63, 64, 65
- Latin America,
4, 5, 7, 8, 11, 12, 18, 19, 20, 21, 24, 28, 34, 35, 37, 38, 42, 48, 55, 66
- – Argentina, 22, 28, 29, 35, 36, 38, 66
- – Brazil, 12, 19, 22, 28, 34, 35, 36, 39, 40, 66, 67
- – Central America, 20, 35
- – Chile, 28, 34, 35, 36, 37
- – Colombia, 6, 28, 35, 40
- – Ecuador, 35
- – El Salvador, 40
- – Mexico, 5, 6, 7, 12, 15, 20, 28, 34, 35, 41, 42
- – Panama, 37
- – Peru, 28, 35
- – Uruguay, 35
- – Venezuela, 28, 35, 36, 37
- North America
- – Canada, 23
- – USA, 23, 27
Research in Motion, 26, 56, 60, 64
- BlackBerry, 20, 26, 48, 56, 60, 64
Royal KPN, 33
- E-Plus, 50
RTVE, 16, 19

S

Samsung, 18, 22, 24, 27, 31, 32, 46
SAP / Sybase 365, 18, 19
Sapient, 50
SK Telecom, 24
Standard and Poors, 67
StarHub, 19
Sunrise, 33
Superintendencia de Competencia (El Salv.), 40
Swisscom / Fastweb, 66
Symbian, 48

T

TalkTalk plc, 60
Technologies
- 2.5G, 34, 66, 67
- 2G, 31, 32, 66, 67
- – CDMA, 66
- – GSM, 16, 23, 50
- 3G, 18, 19, 31, 32, 57, 66, 67
- – 3.5G, 34
- 4G
- – LTE, 18, 23, 31, 32, 34, 37, 49, 50, 67
- Broadband, 7, 8, 16, 29, 32, 33, 36, 39, 40, 45, 47, 48, 54, 55, 59, 60, 61, 62, 63, 65, 67
- Bluetooth, 19, 25
- Ethernet, 33
- GPS, 23
- High Definition Video Conferencing, 16
- IP, 25, 37, 46, 57, 61
- ISDN, 29, 64
- Java, 48
- Linux, 24, 56
- M2M, 18, 19, 21, 22, 23, 24, 64
- NFC, 18, 19, 20, 25, 27, 64
- P2P, 48, 55, 61
- PSTN, 29
- SDH, 66
- SIM, 18, 19, 22, 51
- SMS, 11, 24, 48, 51, 52, 55, 61
- Telematics, 23
- Telepresence, 16, 64
- TV, 8, 9, 36, 39, 40, 42, 45, 48, 54, 57
- WLAN
- – WiFi, 19, 31, 32, 57, 64, 65
Tecnocom, 19
Telco SpA, 6, 66, 67
Telecom Italia, 4, 6, 16, 66, 67
- TIM Brasil, 67
TeleCommunication Systems, 38
Telefónica Group
- Associates and investments
- – Amobee, 21
- – China Unicom, 15, 22, 66
- – Portugal Telecom, 4, 6
Telco SpA, 6, 66, 67
- – Telecom Italia, 4, 6, 16, 66, 67
- Atento, 6, 14
- Telefónica Digital, 6, 9, 15, 16, 18, 19, 21, 22, 23, 24, 25, 51, 56
- – BlueVia, 22, 24, 27
- – DualPersona, 19, 27
- – Frigo, 20, 56
- – Open Web Devices, 24, 25, 26
- – Telefónica I+D, 21
- – Tuenti, 56
- – Wanda, 19, 20
- – Wayra, 28
- Europe
- – Be Unlimited (UK), 61, 63
- – Czech Republic, 45, 46, 47
- – Germany,
5, 10, 22, 29, 46, 47, 48, 49, 50
- – giffgaff, 51, 60
- – HanseNet, 7, 48
- – Ireland, 15, 45, 46, 51, 52
- – O2, 10, 11, 15, 20, 25, 27, 29, 44, 46, 47, 48, 49, 50, 51, 52, 59, 60, 61, 62, 63, 64, 65
- – Slovakia, 52
- – Spain, 5, 9, 18, 22, 23, 28, 31, 33, 53, 54, 55, 56, 57
- – T. Germany Online Services, 50
- – UK, 18, 22, 27, 29, 44, 46, 59, 60, 61, 62, 63, 64, 65
- Executives
- – Abellan , Juan Antonio, 41
- – Alder, Steve, 25
- – Alierta, César, 5, 7, 9, 10, 12, 13
- – Álvarez-Pallete Lopez, Jose Maria, 12, 60
- – Blanco, Enrique, 31, 34
- – Carbajo, Cayetano, 37
- – Cardoso, Daniel, 39
- – Castano Gomez, Joaquin, 8
- – Cruickshank, John, 29
- – Devonshire, Simon, 28
- – Domingo, Carlos, 24
- – Dunne, Ronan, 59, 63
- – Durán, Rodolfo, 20
- – Fairman, Mike, 60
- – Faura, Kim, 33
- – Fernández Valbuena, Santiago, 12, 35, 39, 40, 41
- – Gil Diaz, Francisco, 42
- – Gilperez, Luis Miguel, 55
- – Green, Nicola, 44, 61
- – Haas, Markus, 50
- – Hanbury, Roland, 64
- – Karas, Jan, 46
- – Kohner, Adriana, 38
- – Linares, Julio, 12, 13, 32
- – Martin-Villa, Gonzalo, 28
- – Mata, Joaquin, 18, 19
- – Montesano, Pablo, 20
- – Morales, Carlos, 21, 23
- – Parton, James, 24
- – Piazza, Roberto, 39
- – Regueros, Sergio, 20
- – Rivel, Wes, 20
- – Rutter, Neil, 27
- – Sa, Marco, 20
- – Schuster, Rene, 5
- – Stemick, Kai, 50
- Ex-executives
Healy, Trevor, 21
- Global Resources, 29
- – T. Global Technology (TGT), 38
- – T. Multinational Solutions, 23, 29
- Latinoamérica,
5, 9, 12, 34, 35, 36, 38, 40, 41, 42
- – Argentina, 29, 38
- – Brazil, 36, 39
- – Colombia, 20, 40
- – Mexico, 41, 42
- – Telefónica Multiservicios, 40
- – Vivo, 4, 19, 34, 39
- Partners Program, 33
- Products and services
- – Joined Up, 64
- – O2 Blue, 47
- – O2 Money, 52
- – O2 My Firm (Moja Firma), 52
- – O2 o, 63
- – O2 TV, 46
- – O2 Unify, 29
- – O2 Wallet, 64
- – O2 wifi, 65
- – pay-TV, 7, 36, 39, 45
Telenomics, 62
Telenor, 33
Televisa, 42
Telit Communications, 21, 22
Telkom, 47
Tizen Association, 24, 25, 56
Tuenti / TuentiMovil, 56
TVA, 36, 39
TV Azteca, 42
Twitter, 48

V

Verizon Communications
- Verizon Wireless, 16, 23, 27
Visa, Inc., 52, 59
Vodafone Group,
16, 18, 23, 24, 27, 32, 33, 49, 50, 59, 62
- Germany, 49, 50
- UK, 59, 62

W

Wholesale Application Comm. (WAC), 56
Wikimedia Foundation / Wikipedia, 22, 48

Z

Zacks Investment Research, 20
ZTE, 29, 49

About Telefonicawatch

Report: #63
Covering: February 2012
Published: March 2012
Next report: March 2012

Ongoing tracking and insight into Telefónica Group; delivering valuable insight into the labyrinth that is Spain’s global telco giant.
A unique monthly report for the industry.

• Telefonicawatch is the only independent monitor of everything and anything to do with Telefonica Group, worldwide. Nothing else comes close. Thorough, impartial, accessible, and time-saving.
• Covering not just a leading European and Latin American integrated telecoms group and one of the world's top-five players and its many operating companies, but also its wider interests, including the Atento contact centre business, Vivo in Brazil, Telecom Italia, Portugal Telecom, and China Unicom.
• Our ‘watch' titles are repeatedly described by clients and end-users as the single most valuable source of third-party sales intelligence, and are considered invaluable by many high-achieving commercial teams and account directors.
• A unique source of valuable opportunities, knowledge, planning, strategy, and much more, the reports represent both tactical tool and strategic reference, providing input and even a springboard for corporate planning, reporting, and meetings.
• A ‘must-have' for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
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• Delivered electronically 10-12-plus times a year, with back issues also available, providing unparallelled reference and insight into major events, strategic initiatives, financials and KPIs.
• Contact us for further information, including samples and evaluation trial requests. info@marketmettle.com / +44-20-7183-0111.

Covering: February 2012
Published: 10-12 times a year
Next report: March 2012
Pages: 64

Vodafone Germany (VfD) highlighted that it has “intensified” ties with European IT services group Computacenter as part of ongoing efforts to widen its information and communication technology (ICT) portfolio.

VfD said it has now formed a “strategic partnership” with Computacenter, although it did not make clear how this differs from existing ties between the two companies, flagged by the OpCo for around the last five years (Vodafonewatch, passim).

It said the partnership will enable it to “offer more customised communications solutions”, including “cloud computing, mobile applications, managed services [including security], and outsourcing”. They will also look to jump on the bring-your-own-device bandwagon, offering “integration and centralised control of mobile devices such as Apple’s iPhone and iPad”.

VfD added that the tie-up will help position it as a “full-service provider in the ICT sector”.

Computacenter is among several ICT players with which VfD has highlighted collaboration in recent years, although with little subsequent detail on how each partnership has progressed. These include:

• Hosted service provider CGI, which has flagged work with VfD (and other Group OpCos, including Vodafone Netherlands) on enterprise application delivery, as well on VfD’s own e-commerce platform.
• IT service provider Computer Sciences Corporation, which agreed a deal to become a “strategic distribution partner” for VfD in the enterprise space during 2010 (Vodafonewatch, 2010.03).
• Google, whose Google Apps software suite VfD has resold to business customers since late-2010 (Vodafonewatch, #87).
• Microsoft, via an on-off deal, highlighted in early-2011, that sees VfD pushing the vendor’s Office 365 cloud communications and collaboration portfolio, hosted from its own data centres (Vodafonewatch, 2009.02 and #89). Microsoft has a similar agreement with Vodafone at Group level, announced in mid-2011 (Vodafonewatch, #92).
• Communications and hosted service provider NextiraOne, which formed a “strategic partnership” with VfD in mid-2011, to target “medium-sized businesses, nationally and internationally” (Vodafonewatch, #93).

[Further reference: Geschäftskunden: Vodafone künftig mit noch mehr services aus einer hand-- Vodafone, 8 February 2012.]

Vodafone and its rich web of OpCos — tracked and analysed worldwide.
A unique monthly report for the industry.

• Vodafonewatch is the only independent monitor of everything and anything to do with Vodafone Group, worldwide. Nothing else comes close. Thorough, impartial, accessible, and time-saving.
• Covering not just the world's number-one mobile group and its many operating companies, but also its wider interests, including Verizon Wireless in the US, Vodacom in Africa, China Mobile, SFR in France, Polkomtel in Poland, Safaricom in Kenya, Partner Markets initiatives, and much more.
• Our ‘watch' titles are repeatedly described by clients and end-users as the single most valuable source of third-party sales intelligence, and are considered invaluable by many high-achieving commercial teams and account directors.
• A unique source of valuable opportunities, knowledge, planning, strategy, and much more, the reports represent both tactical tool and strategic reference, providing input and even a springboard for corporate planning, reporting, and meetings.
• A ‘must-have' for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
• Pricing is typically USD $8.2k / EUR 5.7k / UKP £5k per year for an Account Team Licence, and can be tailored to meet your specific needs and situation. Copies of individual reports are also available, priced from UKP GBP £999 (USD $1,650 / EUR 1,100). Multiple purchasing options available, including payment cards.
• Delivered electronically 10-12-plus times a year, with back issues also available, providing unparallelled reference and insight into major events, strategic initiatives, financials and KPIs.
• Contact us for further information, including samples and evaluation trial requests. info@marketmettle.com / +44-20-7183-0111.