Month: September 2018

Mobile virtual network operators (MVNOs) play an increasingly important role in the telecommunications industry. ITU News recently caught up with Sasaki Futoshi, Deputy General Manager, Strategy and Business Development, MVNO at Internet Initiative Japan Inc. (IIJ), about the opportunities for MVNOs in Asia and beyond. Mr. Futoshi will speak at ITU’s “Rise of the MVNOs – Leveraging MVNOs in an ‘everything connected’ world” event on 12 September in Durban, South Africa.

What are the opportunities of expanding MVNOs in Asia?

Asian MVNOs have established or are establishing strong domestic market positions to deliver unique and cost-efficient services to their customers. Adding to this, from the international point of view, there are a lot of opportunities for Asian MVNOs as the trans-Asian movement of people and products increases.

Learn more about the ‘Rise of the MVNOs’ workshop at ITU Telecom World

Asian mobile markets are quite huge and are full of variation. Japan, South Korea, China, Hong Kong and Association of Southeast Asian Nations (ASEAN) countries all have different mobile market landscapes.

This variation and diversity could not be supported by the effort of mobile network operators (MNOs), which are essentially domestic beings, contrary to MVNOs, which have a little asset binding to land.

We Asian MVNOs have new opportunities to provide international services, both for people and for the Internet of Things (IoT), as well as to provide existing domestic services.

What are the benefits of increased connectivity?

Mobile phones are already in the hands of people, and people are always connected. But mobile phones, even smartphones, are merely for connecting people; phone calls, e-mails, etc. are only connecting one person to another.

But low-power wide-area (LPWA) and fifth-generation wireless (5G) technologies enable the connection of ‘things’ to each other. Those technologies have the potential power to change people’s lives, thinking and even culture.

RELATED: One world, one global SIM: How ITU-allocated ‘global IMSI ranges’ support IoT and M2M connectivity

Also, it has to be noted that it is very hard for the telecom sector to accomplish these makeovers by itself. Despite telecom operators’ increased use of the Internet, telcos’ nature to connect one person to another has changed little from the age of Graham Bell.

In the upcoming Internet of Things (IoT) era, the cooperation between telcos, including MVNOs, and the companies that have a fundamentally different mindset from telcos is the only way to make innovation possible.

What are the challenges of the 5G era for MVNOs and how might they be overcome?

Before 5G, MVNO’s typical distinction is in how much the network facilities are operated by MVNOs. If they operate none of the network facilities, they are called “Light MVNOs” or “Wholesalers.” If they operate much of the network, they are called “Full MVNOs.”

5G network architecture, however, is characterized by virtualization and all will go beyond the horizon of virtualization. Like a cloud, one MVNO might operate all networks figuratively, while at the same time they might operate none of networks literally.

‘The best regulations could vary not only by country or region, but also by the stage of the MVNO industry’s development.’

In the 5G era, MVNOs could utilize the host operator’s mobile network to build their own business, same as before 4G, however, it might be the virtualized core network, called the “slice.” Network functions virtualization (NFV) and “Slicing” could be inevitable for many MVNOs in the 5G era.

From this perspective, we also have to look for new and unprecedented relationships with our host operators.

What would you like to see out of regulatory environments?

The role of regulation is quite sensitive for fostering a healthy MVNO industry.

In some markets like Japan, unfortunately, MVNOs are not spontaneous businesses that can be easily created. So a clear and decisive will of regulators to introduce competition to the telecom market might be necessary.

RELATED: Regulation can help deliver on the promise of the digital economy

At the same time, the most important thing is encouraging innovation and strict regulation often suppresses imagination.

The best regulations could vary not only by country or region, but also by the stage of the MVNO industry’s development.

How has Internet Initiative Japan (IIJ) contributed to the mobile market?

Internet Initiative Japan (IIJ) was founded in 1992 as the first Japanese Internet Service Provider. Today IIJ is one of the leading telecommunication service providers in Japan.

IIJ provides comprehensive network services – not only fixed Internet access, but also data centers, cloud services, outsourcing, applications and mobile business as a mobile virtual network operator (MVNO).

IIJ’s MVNO was the first Japanese MVNO to support the 3G network in 2008, the first MVNO to support the Long-Term Evolution (LTE) network in 2012, and the first full MVNO, which is a virtual operator with its own mobile core network and own mobile network code (MNC).

‘We have always been looking for the path to new and innovative MVNO business…’ – Sasaki Futoshi, Deputy General Manager, Strategy and Business Development, MVNO at Internet Initiative Japan Inc. (IIJ)

IIJ has three different customer segments: consumers, business customers, including machine-to-machine (M2M) and Internet of Things (IoT) applications, and partner MVNOs, in which IIJ plays the role of a mobile virtual network enabler (MVNE), which provide network infrastructure and related services to MVNOs.

IIJ is hosted by NTTdocomo and the KDDI mobile network, and its total number of subscribers exceeded 2 million in 2017.

We have always been looking for the path to new and innovative MVNO business and have brought healthy competition into the Japanese mobile market so that Japanese customers could have the benefit of diverse options.

Data protection laws aim to do the very necessary job of safeguarding consumers and individuals in a digital, connected world, but we cannot neglect the impact on the companies that must meet these requirements.

As the association representing IT decision makers in Belgium, Beltug’s positions are drawn from the real experiences and concerns of business users of IT and digital technology in private and public entities of all sizes, including banks, local governments, retailers, manufacturers, and much more. These topics are also shared within our international association, INTUG. The ‘business users’ directly bring to us their challenges, and data protection laws are a priority topic for them.

Among their concerns are the lack of harmonisation on an international scale, which puts an undue strain on companies’ resources. Very many companies operate in more than a single market, and thus face multiple regulatory regimes. This is by no means only on an intercontinental basis: even within the 27 countries of the European Union, with the General Data Protection Regulation as a common ground, rules vary by country. Yet it is each company’s responsibility to ensure that they comply with the different requirements.

This requires, among many other obligations, translating complex, lengthy legal texts into practical IT implementation. By their nature, legal texts leave room for interpretation, and can be tens of pages long: conversely, IT and digital technology should be perfectly precise and, ideally, concise. This adds additional complexity. Regulators must keep in mind that the regulations they are drafting will bind all companies: not just the Facebooks and Googles of the world.

At the same time, technology evolves at a much faster pace than legislation, which puts brakes on innovation and the adoption by companies of new technologies that will support them. To give a single example, Blockchain has provoked a vast amount of involvement and interest by companies, opening exciting new possibilities. But Blockchain is not compatible with current data protection laws. So companies are hesitant to take advantage of the benefits it can bring. And we all suffer from this drag on innovation and growth: companies, individuals, national economies, international trade…

This disparity of development also creates a lack of clarity for businesses. One of the key questions they need answered: in a smart data-driven economy, or in ecosystems exploiting IoT, who owns the data? Who can commercialise the data? And how can we make sure the data is well-protected?

These are only a few examples to highlight how important it is to consider business users when drafting regulations that will impact them. The legislation must not only protect the privacy and rights of the individual, but simultaneously support and uplift the businesses that are critical to a strong economy. I look forward to exploring the options with a cross-sector panel of stakeholders in the Strengthening collaboration in data protection session at ITU Telecom World 2018 in Durban.

Governments and regulators around the world are working to make spectrum available for exciting new 5G services. There is global agreement that more spectrum is required: without a sufficient amount, consumers won’t be able to realise the true 5G experience.

Which bands will become available, when they will become available, and how is still to be decided, and the next big step will be at the upcoming World Radiocommunication Conference, WRC-19. ITU Telecom World 2018 provides an excellent opportunity to talk about this topic, and spectrum in general.

WRC-19 will take place from 28 October to 22 November 2019 and what happens there will have a major impact on the future of 5G.  Spectrum for mobile broadband in millimetre wave frequencies between 24.25 GHz and 86 GHz is on the agenda. The mobile industry has been working hard to complete sharing studies and pave the way for access to these important spectrum bands.

We know that wide blocks will be needed in the mmW bands for mobile operators to offer ultra-high speed 5G services that excite users and facilitate new services for businesses.

For WRC-19, the most important bands are 26 GHz, those around 40 GHz and 66-71 GHz.

Planning for the future is key. Adding an IMT identification for the whole 37-43.5 GHz range (which we call the “40 GHz” bands) at WRC-19 does two important things. First it creates the opportunity for individual countries to assign the portions of spectrum that work best for their specific situation.

Second, it facilitates equipment development across the broader range. This allows countries to do what is best for them and still enjoy the benefit of the economies of scale that come from equipment harmonisation across the broader range. This harmonisation ultimately benefits consumers – with more and lower-cost equipment being developed.

Fortunately, technical studies demonstrate that adding mobile in these bands is possible while still protecting incumbent users. Fair and open studies on spectrum sharing among industries benefits everyone, and we urge more of them as we make our way toward WRC-19.

National regulators have the challenge of needing to balance multiple needs. They are working with industry to make the spectrum identified at previous conferences available at the same time as planning for new spectrum identification at WRC-19 in higher bands. As challenging as it is, this work is extremely important because 5G will rely on low-, mid-, and high-band spectrum. The results are seen in trials around the world which are already showing 5G’s potential.

Gigabit speeds and low latencies are already opening the door for countless new and improved services, including high-speed broadband to homes and offices; industrial automation; and augmented and virtual reality. That regulators and governments are seizing the opportunity to make 5G the best it can be and making the right spectrum available under the best conditions is essential.

Of course, just identifying the bands available to mobile operators isn’t enough. Outside of the WRC, national regulators will have to make critical decisions about the amount of spectrum to assign, the technical conditions, the timing of the release and what access to it should cost. All these factors will have a major impact on the spectrum mobile operators will be able to make use of, and therefore on the quality of 5G services.

At ITU Telecom World, the GSMA will take part in two sessions on these topics: Spectrum challenges: preparing for WRC-19 and Spectrum pricing to drive the mobile broadband revolution. The GSMA also has a booth. Please make sure to visit and attend them – I promise it will be worth your time.

The last time I was in Durban was in 2010. South Africa was hosting the FIFA World Cup and the whole country was abuzz. There was no missing it, no one was left behind. I am coming back for ITU Telecom World. This time, it is not soccer on my mind, but access to broadband opportunities.

The same question comes back: can we harness the full power of the web when half of the world is still offline? This includes politics, public services and market value. Being online is no longer a ‘nice to have’- it’s a right we all have, but only half of us are benefiting from currently.

Over the next few months, we will cross an historic milestone where 50% of the world will be connected. As important as this is, we need to consider the impact this will have on those not connected. They will continue to lag behind as half of us will be benefiting from the digital revolution.

While 50% of the world will soon be ‘digital haves’, only 21.8% of Africa’s population is currently connected (ITU). This is a stark reality. There remains a need to invest in broadband infrastructure in Africa. The majority of people are shut out from being able to learn and earn online, and have a voice. Here are three things stakeholders can do to help connect:

1. Invest in women and girls. Our Women Rights Online Digital Audit shows that women are 50% less likely than men to be online in the areas surveyed, and 30-50% less likely to use the internet for economic and political empowerment. We need to change this.
2. Use available funds to extend connectivity. There is an estimated US$408 million sitting unused in Universal Service and Access Funds throughout Africa; these funds are collected specifically to expand internet access. That’s enough to bring 6 million women online, or to provide digital skills training to 16 million women and girls. Failure to expand connectivity to all risks widening global inequality and undermining global development.
3. Harness the connectivity tipping point. We all have a role to play in connecting the last 50% and ensuring that everyone can benefit from the web. At the Web Foundation, we’re working to change policy to enable more people to come online and have equal rights online. The Alliance for Affordable Internet is working with around 80 members towards this. Ghana and Nigeria, as well as ECOWAS, have all signed on to enabling policy to meet the affordability threshold – 1GB of data for no more than 2% of monthly income.

It is critical that all stakeholders join forces to connect the unconnected and to extend the opportunities of global digital benefits. Join us in Durban.

Nnena will be speaking at the High Level African Investment Dialogue.