Telecom Regulation in Canada

From teleclick.ca

Canada’s fast-growing and ever changing telecom industry is regulated primarily by the Canadian Radio-television and Telecommunications Commission, or CRTC, a non-political government agency designed to protect public interest in the communications and broadcasting sectors.

In 2005, the CRTC was responsible for the approval of satellite radio in Canada, as well as a new policy making it possible for cell phone customers to port their phone numbers between wireless carriers.

Since the election of Canada’s new Conservative government, however, one could argue that the CRTC’s economic influence has diminished somewhat, due to the neoliberal monetary policy championed by Prime Minister Stephen Harper and his cabinet.

In May 2006, for example, the Harper government asked the CRTC to reconsider a policy preventing incumbent telephone operators from offering their own Voice over IP telephony services at fair market prices.

“After careful study … and the subsequent appeals, the government believes it is in the public interest for the CRTC to reconsider its decision,” commented Industry Minister, Maxime Bernier, in a statement. “This will give the CRTC the opportunity to take into account the increase in demand for VoIP services and changes to the overall regulatory environment since the original decision was announced.”

Four months later, after conducting a review, the CRTC chose to stick to its guns on the issue, upholding the same discriminatory policy against local telephone providers. In November, however, the federal government exercised its rarely used power to overturn a regulatory decision and took away the CRTC’s ability to restrict the VoIP market.

In an unrelated decision just days after the federal government’s VoIP decision, the CRTC also gave incumbent telecom operators the right to set their own prices on some fixed-line telephone services. A few months later, in April 2007, the government brought this a step further, deregulating the price of basic telephone service in all markets where adequate competition exists.

This chain of events sends a clear message that role of regulators in Canada’s communications market has diminished, and suggests that the free market will generally trump restrictive CRTC policies in future disputes over telecom regulation.

VoIP Regulation in the United States

From teleclick.ca

There has been much debate in recent years on what role, if any, regulatory agencies like the Federal Communications Commission should be playing in the American VoIP industry.

Back in the early days of residential VoIP, regulators saw IP voice technology as an obscure fringe of the largely unrelated internet, and chose to take a generally hands-off approach. As IP communication began its move into the mainstream, however, the issue quickly become more complicated.

E911 regulations, for example, which are enforced by the FCC and ensure that all telephone customers have adequate access to emergency response services, did not initially apply to IP voice services. VoIP users could dial 911 and speak to an operator, but the caller’s location would not automatically be made visible to emergency personnel.

As “broadband phone” services became popular among American customers, the FCC began to impose E911 restrictions on residential VoIP providers like Vonage. This led to a mad scramble as provides rushed to comply in time to meet largely unrealistic regulatory deadlines.

Vonage announced full E911 compliance in December 2005, about seven months after the FCC order, and other residential VoIP providers were quick to follow suit.

Federal telecommunications regulators have also involved themselves in another, perhaps more contentious issue, by demanding that VoIP providers comply with the Communications Assistance for Law Enforcement Act (CALEA) of 1994. This will allow police and government authorities to wiretap IP networks and listen in on the conversations of suspected criminals. The U.S. Court of Appeal ruled in June 2006 that the FCC had a right to enforce CALEA on VoIP services.

Aside from this decision’s obv

As broadband phone providers and privacy advocates fight this perceived injustice, however, most analysts believe that the more popular VoIP becomes, the more determined U.S. regulators will become to restrict and tamper with it.

ious privacy implications, it has raised a significant debate about who should foot the bill for CALEA compliance, as VoIP providers and customers argue that they should not be responsible for the steep costs involved.

AIS budgets $600m for 3G service

AIS budgets $600m for 3G service
Bangkok Post (18 October 2007)

Mobile market leader stressing convergence Advanced Info Service (AIS) has earmarked up to US$600 million to develop third-generation (3G) mobile phone services next year. The country's largest mobile-phone operator is also gearing up to restructure its billing systems, bundled services and overall efficiency to accommodate the group's convergence strategy. Hui Weng Cheong, deputy president for wireless communications, said AIS would seek loans to fund the 3G network, with initial capacity of 10 million users or about 40% of its total customer base. ''We are already pre-planning our jump onto the 3G bandwagon. We're ready to start the process once the National Telecommunications Commission (NTC) opens bidding for 3G licences,'' said Mr Cheong, who represents Singapore Telecom, which owns 21% of AIS. He said Thailand's mobile industry was expected to achieve another year of healthy growth in 2008, with 10 million new potential customers, fuelled by more liberalisation commitments and new data communication service offerings. The industry has forecast up to 11 million new customers in 2007. AIS alone expected five million new customers, second-ranked DTAC four million and No. 3 True Move two million. 'We expect to have between 4.5 million and five million new customers in 2008,'' Mr Cheong said yesterday. He said local mobile phone penetration was moving toward the pre-teen segment, with 50% of Thais aged between nine and 15 years already having mobile phones. AIS is formulating a series of tailor-made tariff plans to fit the pre-teen market, in which parents typically buy handsets for their children so they can reach them at any time. The company is also focusing more on small businesses, encouraging companies to use more postpaid services. Mr Cheong said AIS was stepping up promotion of its high-potential inbound roaming services, which generate 85% of total international roaming revenue. AIS has 5.3 million inbound roamers plus one million outbound users. International roaming is expected to account for 6% of AIS's revenue this year. ''We expect to have a total of six million outbound customers next year. International roaming would account for 10% of total revenue in 2008, driven mainly by the increasing number of foreign travellers thanks to the government's tourism promotion campaign,'' he said. Mr Cheong said AIS favoured a high-value managed-service strategy, by providing special privileges to inbound roamers at 10 concierge centres. Services include free SIM card and mobile phone replacement, a hotline number and limousine pickup from hotel to the airport. The company is also in talks with operators in 11 countries belonging to the Bridge Mobile Alliance, the leading mobile alliance in Asia Pacific, for possible discounts such as free talk-time for alliance customers using roaming services. Mr Cheong said AIS expected an upward trend in performance in 2008, based on hopes for economic improvement after the Dec 23 general election. Shares of AIS (ADVANC) closed yesterday on the SET at 92 baht, up one baht, in trade worth 289.04 million baht.

CAT board will discuss easing terms for B2.6bn cable project

CAT board will discuss easing terms for B2.6bn cable project
Bangkok Post (18 October 2007)

The board of CAT Telecom will meet today to discuss easing the terms for a 2.6-billion-baht cabling project so that more companies could compete. At issue would be a clause stipulating that qualified bidders must have experience with similar projects worth at least 15% of the amount the state telecom enterprise estimates its system would cost. The board may consider setting the limit at 10% or 260 million baht. The board chairman, General Montri Sangkasarp wants to set a benchmark for future bids, said Air Marshal Piriya Siriboon, the board spokesman. The 15% limit specified by CAT management earlier this week would eliminate all but three contenders for the 9,000-kilometre fibre-optic cable project, the spokesman said.
However, another industry source said that nine prospective bidders had experience with similar ventures worth 500 million baht or more. They are Alcatel/Lucent, Nokia-Siemens, Ericsson, Marubeni, Italian-Thai, Samart Telecom, NEC, Jasmine Telecom System, and United Telecom Sales & Services. The terms also require contenders to offer eight brands of SDH equipment that CAT is now using. They include Alcatel, Lucent, Ericsson, Siemens, ZTE, Huawei, ECI, Nortel and TelLab. The source said there was no need for CAT to change the criteria. He said that setting a 10% minimum requirement would appear to favour companies that used equipment from Huawei, a Chinese supplier. Huawei recently completed a 7.2- billion-baht project to expand the CDMA mobile network for CAT

Thai Cabinet drops plan to give army chief special powers

Thai Cabinet drops plan to give army chief special powers
The Business Times 18 October 2007)

(BANGKOK) Thailand's military-backed government said yesterday it has dropped a proposal to give the army chief sweeping powers under a security bill derided by one rights group as a 'silent coup'. Thailand had proposed naming the army chief as head of the Internal Security Operations Command (ISOC), the nation's top domestic security body, and granting him sweeping powers of search and detention. The bill was drafted after the military seized power in a bloodless coup in September 2006, toppling the elected government of premier Thaksin Shinawatra. Rights groups had voiced fears that the new measures would give the army chief continued influence over government, even after December elections that are supposed to restore democracy. Human Rights Watch had branded the original bill a 'silent coup' that would give soldiers far-reaching powers usually reserved for police and civil servants in times of emergency. But the Cabinet said yesterday in a statement that the revised draft would not give any special powers to the army chief and would leave the prime minister as head of ISOC with final authority for internal security. The prime minister would still receive broad new powers that would allow him to impose curfews, order arrests, control the media and restrict movements, according to Thai media. Sunai Phasuk, a Thai researcher for Human Rights Watch, said the revised draft left room for abuses and would cast a shadow over the next government.
On paper, 'it creates an impression that a civilian is in control', he said. 'But in fact, the political situation in Thailand will remain unclear after the elections.' The Cabinet on Tuesday approved Dec 23 as the date for the kingdom's first general election since the coup. The polls will be held under a new army-backed Constitution that was approved by voters in the nation's first-ever referendum in August. -- AFP

Thailand not lifting curbs on overseas investments

Thailand not lifting curbs on overseas investments
The Business Times 18 October 2007)

(BANGKOK) Thailand's central bank has no immediate plans to remove curbs placed last December on overseas investments, said a central bank official. The currency has strengthened because foreign investors are buying Thai stocks, Pongpen Ruengvirayudh, director of the Bank of Thailand's financial markets and reserve management department, said in Bangkok. The baht hasn't 'strengthened much compared to other currencies,' she said. 'This is partly because of our reserve requirements. The measures are still useful. We will have to make sure the removal has no adverse impact before we decide to do it.' The baht's rise beyond 36 to the dollar last year prompted the central bank in December to impose restrictions on foreign investments to cool the currency's gains after exporters said it threatened sales abroad. Consumer confidence has sunk to a five-year low since the September 2006 coup and exports, comprising 60 per cent of the economy, are the main driver of growth. The currency controls triggered the Thai stock market's steepest slide in 16 years and prompting a reversal of the rules for equity investors within 24 hours. Most curbs were removed in March for overseas investors taking hedging measures to avoid profiting from baht fluctuations. -- Bloomberg

What to expect from the Q3 results season

What to expect from the Q3 results season
The Business Times 18 October 2007)

Analysts see 'decent' earnings from banks, but tech sector likely to disappoint.

THE fallout from the sub-prime housing woes in the US. Exposure to collateral debt obligations. The effect of the weakening US dollar. These are just some of the questions on investors' lips as listed companies prepare to announce their third-quarter results in the coming weeks. Thanks to a still-robust global economy, the lessening dependence of companies on US exports and the growing dominance of China and India, local companies are expected to produce good report cards for the third quarter. 'Overall, the results for Q3 should be good and is likely to meet our expectations,' said Kevin Scully, managing director of NRA Capital, adding that the still-buoyant global economy was propping up the growth. He pointed out, however, that what he was more interested in was 'forward-looking statements' revealing how companies will be dealing with on-going issues. 'I'm more interested in finding out how the higher cost of capital and the weakness in the US dollar will impact the companies.' Indeed, the three local banks' results will undoubtedly be scrutinised as investors clamour to find out how they have been impacted by the recent financial market turmoil. The biggest of the banks, DBS, will be the first among the three to release its results on Oct 26, followed by United Overseas Bank (UOB) on Oct 30, and OCBC on Nov 6. Analysts expect Q3 earnings growth to be 'decent', but warned of large provisions the banks might make for any losses from their exposure to collateralised debt obligations, or CDOs. Analysts said that the market value of these debt securities may have fallen by half since the credit crisis began in August, which has caused the market for such instruments to dry up. One sector that is likely to disappoint is technology, said Mr Scully. This sector has been in a slump for the past few months. Except for consumer electronics, shipments of all the major electronic products registered double-digit year-on-year decline in September, according to figures for non-oil domestic exports (NODX). A UOB economic research report said that the weak electronics NODX in September suggested that recovery in the electronics sector could remain shaky in the coming months, compounded by an uncertain outlook in the global economic environment. On the other end of the spectrum, one sector that is expected to perform well is energy and marine. Rocketing oil prices, demand for rigs, and growing order books have reflected the boom in this robust industry. Companies in this sector are likely to show good results, starting with Keppel Corp which is releasing its results on Oct 25, followed by SembCorp Marine on Nov 1. With frenetic activity in the property market, strong demand for more hotels and local property boys venturing further afield, it seems that property counters can do no wrong. However, all eyes will be on whether stock market jitters caused by sub-prime problems in the US will have any effect on profitability in the future. Last month, sales of new homes slowed tremendously, and was said by property analysts to be the lowest monthly figure in the past four years. Property companies Keppel Land and CapitaRetail China Trust will release their results on Oct 23. Mapletree Logistics reports on Oct 25, while CapitaLand and Ascott Group will report earnings the next day. City Developments will announce earnings on Nov 14. Some 230 companies are expected to report their Q3 results even though there are 495 companies with a December financial year-end. This is because companies with a market capitalisation of $75 million and below - in view of the higher relative costs for smaller firms - are exempted from reporting quarterly results. All listed companies, however, have to report their first-half and full-year results.

Apple: SDK for iPhone third party apps coming in February

TgDaily (18 Oct 2oo7)

Cupertino (CA) – Steve Jobs believes that the iPhone is “the best mobile platform ever for developers”, but users are still waiting for Apple to open up the phone for third parties almost four months after launch. But according Jobs, the SDK is coming – as soon as concerns about malware threats have been reduced.

So far, the iPhone has been everything else but the open playground for software developers that Apple has promised. CEO Steve Jobs today addressed the complaints from users and developers and wrote on the firm’s website that the company actually wants “native third party applications” to run on the iPhone. “We are excited about creating a vibrant third party developer community around the iPhone and enabling hundreds of new applications for our users.”

An official kit that will enable the creation of such software is now expected to be released in February for what Jobs called the “best mobile platform ever for developers.”

It isn’t really a secret that especially mobile platforms have a great need for a comprehensive software portfolio built around them – a need Apple that takes Apple much longer than expected to address. As it appears now, the company may have run into some unexpected issues with its strategy to open up the platform”: Jobs wrote that the SDK will also have to “protect [the] iPhone users from viruses, malware, privacy attacks, etc.”

“This is no easy task,” he wrote and noted that “powerful” phones will be able to also run “more dangerous programs.” Additionally, the executive believes that the popularity of the iPhone carries the potential to make the device a “highly visible target.”

“We think a few months of patience now will be rewarded by many years of great third party applications running on safe and reliable iPhones,” Jobs wrote.