Market for construction of new macro base stations (BTS) worth a nominal US$29 billion in 2015

Mobile telephone networks are in transition. Network architecture must manage high data-traffic growth rates, and support new 4G services and the increased demand for broadband and Internet access. In the developed countries a high level of coverage has been achieved but capacity is inadequate as data traffic escalates beyond all expectations. In the developing countries both coverage and capacity are wanting. Macro base stations with towers cover large cells and long distances but they fail to reach effectively inside buildings, where 70-80% of mobile broadband traffic is generated.

A new network concept has been launched – the HetNet, which combines large and small cell sites and different radio technologies like cellular and Wi-Fi. The first commercial HetNets are being rolled out. HetNets are the networks of the future with macro-micro coordination to improve Quality of Service.

Mobile Base Station Report 2016 Third Edition  quantifies the macro infrastructure of today, of base stations, ground based and rooftop towers and poles, forecasts growth and $ value to 2020 in every country, with analysis of ownership and market shares of tower vendors. The report outlines tomorrow’s new infrastructure, the HetNet, the macro-micro network. It outlines the technologies of macro and of micro cells and base stations, estimates current penetration and projects demand.

We are in the first stage of a new wave of technology for mobile telephones – the HetNet. Network technology is evolving rapidly to meet exponential new demands. The focus is shifting from coverage to capacity, driven by the rise in data traffic. The answer is the HetNet/Heterogeneous network. Past networks were based almost entirely on macro cellular base stations mounted on towers, rooftops and poles. They were designed for volumes of voice mail which were small by today’s standards. Data traffic has grown exponentially and is set to escalate by leaps and bounds, driven by the Internet, videos, and a plethora of 3G and 4G mobile devices.

The HetNet is providing the solution; a network which combines all types of base station, each designed for a different purpose; macros on towers and rooftops, micro, metro, pico, DAS and Wi-Fi both inside buildings and outside. These issues are discussed and analysed in this report. Macro base stations (BTS) will remain the core of the networks, but the networks must develop more granular delivery. We have constructed a database of macro base stations for every country, starting from the launch of mobile services in the 1980s.

In an electricity network replacement happens when equipment is past its design life and risks failure, and the replacement may also be an up-grade. In a mobile network this is not the case. From 1G to 2G, 3G and 4G and LTE the technology of the networks must be up-dated to new generations of technology at more frequent intervals. A regional analysis of GBTs (ground based towers) and RTTs (rooftop towers) is provided.

The total market is surveyed, macro and micro. Forecasts of base station capex, analysed by macro site additions, macro site upgrades and replacements, and new small cell sites with annual expenditure from 2015 to 2020. Total mobile traffic is analysed by cell site types: macro cell, in-building small cell, outdoor small cell, Wi-Fi hotspots, residential femtocell, DAS/RRH. The populations of GBTs and RTTs are analysed by region.

The market for construction of new macro base stations (BTS), ground-based, rooftop and street poles, upgrades and replacement of aged assets is estimated and forecast in nominal $ from 2015 to 2020, for the world, for regions and is analysed by 213 countries. Market commentary is provide by regions and major countries.

The steady growth of the macro cellular infrastructure does not fully reflect the real rate of expansion of the networks. With mobile data traffic expected to double annually, small cell base stations are set to play an important role in expanding the capacity of wireless networks. Small cells provide flexibility and increased QoS capabilities. Past development of small cells is analysed to help predict the future path. Shipments are analysed in units by cell type. The cost components of a small cell installation are analysed. Global expenditure on installing small cells with related costs and backhaul is estimated for 2015 and projected annually to 2020 for regions and 33 countries. Capex is analysed by residential/non-residential and by cell type.

Tower sharing allows operators to cut down on capital expenditure. Infrastructure cost for operators is estimated to decline by 16% to 20%. Running and maintenance of tower infrastructure, form a significant portion of operator Opex. Divesting responsibility for infrastructure unlocks value. Site and/or tower sharing is the most common form of network sharing, but full network sharing is gaining traction. The various forms of infrastructure sharing are outlined and the towerco market is analysed by country.

A breakdown of tower construction cost by component is given. Infrastructure and network sharing, either between operators or via independent tower owners, is growing rapidly but has a distinct regional pattern. MNOs share assets with jointly-owned infracos in Europe, Japan and many other regions. Independent towercos started in the United States and are also prevalent in India, in China since 2015, in Southeast Asia and are making headway rapidly in Sub-Saharan Africa.

The incidence of sharing is given by regions and major countries with total numbers of macro towers and the numbers owned by towercos. Detailed market profiles are given for regions and leading countries. Energy accounts for 30% of the network operating costs of an MNO. 90% of sites have diesel base generators where towers are off-grid or as standby to grid supply when grid-connected. For cost and environmental reasons there is a growing trend towards renewables systems, mainly solar PV or hybrid systems of solar PV and wind power.

Read the full report: Mobile Base Station Report 2016 Third Edition

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Africa is sitting on around USD 5 billion of 4G spectrum – report

Africa is at the very inception of a phase of strong 4G growth. The current LTE base is low; Africa accounts for less than 1 percent of the global 4G base at the end of 2015. Around half of the African subscription base actively uses data – but only around 2 percent of those use 4G devices.

Xalam Analytics reckons that African countries are sitting on around USD 5 billion of 4G spectrum – based on valuation on market benchmark basis, not actual economic value.

Rather than waiting for uncertain regulatory licensing schedules, operators are deploying what they legally can. The median market value of the 800 MHz band has increased nearly 10x from its initial CDMA-focused days.

In African markets, the 2.6GHz band sells at a 6x-8x discount to other 4G bands

For market leaders, acquiring high-priced spectrum is a risky investment, with potentially good returns over the long term. For some second and third ranked players, 3G/4G spectrum acquisition (assuming high valuation) is the investment equivalent of throwing cash down the drain.

A similar risk exists for 4G spectrum – but the base case for African 4G is not primarily an economic one. The price for 4G spectrum is a price to pay for long term relevance, and in truth, African 4G spectrum value looks better outside the traditional capital investment prism.

In a new report, Xalam values licences in upcoming (or ongoing) auctions in Nigeria, South Africa, Egypt, Senegal, etc. It also assess the value of so-called African spectrum plays – Players whose spectrum assets have higher value than the net present value of their free cash flows – and it highlights why they should sell.

The African market still accounts for less than 1 percent of global 4G subscriptions, a puny contribution that belies the continent’s potential for 4G services. The year 2016 will be a year of transformation for African 4G, with the most important phase of spectrum sales since the 2G licensing era – which generated around USD 10 billion.

Over the next 18 months, markets from Egypt to South Africa, Nigeria, Senegal and others will sell or seek to value a trove of 4G frequencies that will pave the way for next generation digital services. And yet, even as they seek to precisely assess the value of the 4G spectrum on offer, buyers and sellers alike have surprisingly few independent tools for intra-African spectrum transaction benchmarking and value analysis.

The Xalam Africa 4G Spectrum Value Report provides such a tool. It provides an extensive 3G and 4G Africa transaction and benchmark value table; it shows why 4G spectrum is valued higher than 3G in Africa; why operator 3G spectrum returns were terrible, but operators still need to take the leap into 4G despite the prices; what value ranges are put on 4G spectrum in South Africa, Nigeria, Egypt and other markets; and why for some operators, the spectrum assets are more valuable than their business operations, and more.

Xalam has analysed 60 spectrum transactions across 20 African markets over the past 10 years (2006-2016), included in around 35 separate processes covering 1100MHz worth of 3G and/or 4G spectrum.

The outcome is an in-depth assessment of the value of various 4G bands in African markets and offers a qualitative and quantitative framework for estimating 4G spectrum value in the African context. In addition, the report provides projected value ranges for upcoming and/or anticipated 4G spectrum auctions, including for markets such as Nigeria, South Africa, Egypt and Senegal.

The report also explores a range of issues related to 3G and 4G spectrum, from the business feasibility of 4G at current spectrum value points to the future of so-called spectrum asset companies.

Further details of the report are here.

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Virgin Media Ireland complies with ComReg number notification

The Irish Commission for Communications Regulation (ComReg) said on 29 April 2016 that Virgin Media Ireland Ltd has not complied with conditions attached to the rights of use of numbers under the National Numbering Conventions.

On 24 August 2015 ComReg notified Virgin Media Ireland (Virgin Media), formerly known as UPC Ireland, that for at least the period 05:30 a.m., 27 March to 12:52 p.m.,

28 March 2015, Virgin Media had not been compliant with the conditions of Regulation 14 of the Authorisation Regulations – European Communities. It had failed to comply with the Numbering Conventions.

Virgin Media has to ensure that CLIs transmitted (A-Numbers) are the assigned geographic, mobile or IP-based number for the calling party. Based on Call Data Records, ComReg found that Virgin Media did not comply with the condition attached to the rights of use of numbers in that CLIs (A-Numbers) were transmitted that were not the assigned geographic, mobile or IP-based number for the calling party.

Virgin Media was given 3 weeks to respond to the Notification or to remedy the non-compliance. Representations were received on 28 August 2015.

ComReg concluded that they present no grounds which would require ComReg to amend or revoke the notification in accordance with Regulation 16. Virgin Media stated that it had remedied the non-compliance. ComReg said it welcomed Virgin Media’s co-operation and appropriate action in response to the notified non-compliance.

ComReg said that further enforcement action is not appropriate and consequently ComReg said it had closed this investigation on 29 April 2016.

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Better KPIs for USF called for by French telecoms regulator

French regulator the Electronic Communications and Postal Regulatory Authority (ARCEP) on 25 April 2016 released an update on the quality of the Orange telephone network, and is calling on the Government to strengthen the universal service specifications.


The universal telephone service includes two components in particular: ‘connection’ (i.e. access to the network) and a ‘telephone service’ (i.e. calling). On 31 October 2013 Orange was designated by the responsible Minister to provide these services for a period of three years. The carrier is thus required to meet a set of specifications listed in the ministerial order, which include obligations to achieve results in terms of quality of service (QoS).

In 2014 ARCEP found that certain universal service QoS indicators reported by Orange for 2013 had fallen short of the objectives set by the specifications. Added to which, performances further deteriorated in 1Q 2014, which would have seemed to indicate that Orange was struggling to meet its annual targets. On 27 May 2014, ARCEP decided to initiate an inquiry into Orange.

Orange subsequently produced an action plan. ARCEP has now concluded that quality of service indicators have returned to a satisfactory level.

ARCEP however believes that greater attention needs to be paid to the quality of the universal service. At a time when superfast network rollouts are accelerating, the universal service continues to provide a fundamental safety net to users who will not be able to benefit immediately from the latest technological advancements, particularly in the country’s most sparsely populated areas.

The Government is currently gearing up for the designation in 2016 of the entity or entities that will be responsible for providing the universal service starting in 2017. ARCEP has made a number of suggestions, including introducing more detailed indicators, strengthening incentive mechanisms and ensuring more careful and more reliable monitoring of the quality of service being provided.

Further reading:

France Telecommunications Report
Published by Business Monitor International in March 2016
The France Telecommunications Report features BMI Research’s independent industry forecasts on the future strength of France’s ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including inv…(more)

France – Telecoms, Mobile, Broadband and Digital Media – Statistics and Analyses
Published by Paul Budde Communication Pty Ltd. in February 2016
This report provides a comprehensive overview of trends and developments in the French telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors. Subjects include: Market and industry analyses, trends and …(more)

Mobile services in Western Europe: trends and forecasts 2015–2020
Published by Analysys Mason in November 2015
‘Handset data revenue growth and fixed broadband revenue in Western Europe (WE) will not fully offset voice and mobile messaging revenue losses, resulting in fixed and mobile revenue decline in the region.’ Mobile services revenue in Western Europe (WE) accounted for 1…(more)

France: LTE, fiber and emerging revenue streams will help telecoms and pay-TV operators to ultimately stabilize revenue
Published by Pyramid Research in August 2015
SummaryFrance is the third largest telecoms market in Western Europe after the UK and Germany and is estimated to generate revenue of $37.3bn in 2015. The total market revenue is expected to grow at a CAGR of 2.7% over 2015-20 to reach $42.6bn in 2020 driven by the grow…(more)

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Bulgaria: draft decision call termination for MNOs published

The Bulgarian Commission for Communications Regulation has adopted a draft decision to identify, analyse and assess the market for voice call termination on individual mobile networks after a public consultation procedure.

In view of the provisions of the Electronic Communications Act, and to co-ordinate responses, the draft decision has been shared with the European Commission, the Body of European Regulators for Electronic Communications and the national regulatory authorities of the Member States of the European Union.

The draft decision and the results of the public consultation are is available here.

Further reading:

Call Tracking Software: Companies, Solutions, and Market Outlook 2014 – 2019
Published by Mind Commerce in June 2014
Call tracking software represents a means of recording information about incoming calls and allows the tracking of phone calls to be associated with performance based advertising and supplying additional analytic information about the calls. It allows firms to track the…(more)

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New roaming tariffs in Belgium from 30 April 2016

From from 30 April 2016, telecom operators in Belgium will only be allowed to add a capped surcharge to the domestic tariff. As a consequence calling, texting and surfing the Internet could be much, but the Belgian Institute for Postal services and Telecommunications warns subscribers to stay alert an check the rates they are being charged.

The document can be downloaded here.

Further reading:

Mobile Services and Pricing Country Reports
Published by Pure Pricing with 16 issues per year
About Pure Pricing Pure Pricing specialises in providing pricing analysis, insight and information on communication markets. Pure Pricing reports cover both the mobile and broadband markets, and are used by operators, regulators and consultancies. Country Reports, Mob…(more)

Posted in Europe | Comments Off on New roaming tariffs in Belgium from 30 April 2016

Vivo subscribers fall whilst 1Q16 revenues rise marginally

Telefonica Brasil published its 1Q 2016 results on 27 April 2016. In the first quarter of 2016, the release noted that Vivo achieved strong EBITDA expansion and ‘robust’ cash flow generation through sustained revenue growth, efficiency and synergies.

Net operating revenues were recorded at BRL 10.43 billion (USD 2.95 billion), a 0.6% rise year-on-year. It recorded net mobile revenues standing at BRL 6.21 billion (USD 1.76 billion), a fall of 0.3%. Net fixed revenues rose 2% y-o-y to BRL 4.22 billion (USD 1.20 billion).

EBITDA was recorded at BRL 3.79 billion (USD 1.07 billion), up 23.8 percent; whilst the EBITDA Margin % stood at 36.3%. Net income was BRL 1.22 billion (USD 345.6 millio).

It recorded the number of mobile accesses as 73.27 million (down 10.5% y-o-y), and fixed accesses at 23.95 million (up 0.3 percent).

It said it was the lead operator in the post-paid segment, with continuous growth (+8.1% y-o-y in 1Q16) and share of net additions of 41% until February 2016. The post-paid market share stood at 42.4% in February. Mobile ARPU recorded y-o-y growth of 10.9% in 1Q16, driven by the solid 35.7% y-o-y growth in Data ARPU, which already represented 52% of total ARPU.

Fixed broadband accesses reached 7.2 million in 1Q16, while FTTx connections reached 54.2% of the base in 1Q16, with annual growth of 12.6%. Pay TV accesses totaled 1.8 million in 1Q16, 4.9% up y-o-y, with strong increase in premium accesses (IPTV and Interactive DTH).

1Q16 investments totalled R$1.5 billion, accounting for 14.3% of net operating revenue. CAPEX saw accelerated growth of 37% y-o-y in 1Q16 with a strong evolution in Free Cash Flow in 1Q16.

Further reading:

Brazil Telecommunications Report
Published by Business Monitor International in March 2016
BMI View: The principal t rend in 2016 will be one of conso lidation involving mobile and wireline sectors. Th e biggest deal would be the sale or break-up of TIM Brasil , with leading players Vivo and Oi the likely winners. These companies would ob tain significant mar…(more)

Global Mobile Operators – Regional Leaders – Overview and Statistics
Published by Paul Budde Communication Pty Ltd. in March 2016
Mobile developments continue to shape the global landscape and the mobile sector has become a critical element to most countries of the world, providing important social and economic benefits. Amongst this vibrant and competitive sector have emerged a number of countrie…(more)

Brazil – Telecoms, IP Networks and Digital Media
Published by Paul Budde Communication Pty Ltd. in June 2015
This report provides a comprehensive overview of trends and developments in Brazil�s telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors. Subjects include: Market and industry analyses, trends and deve…(more)

Posted in Latin America, Mobile Operators | Comments Off on Vivo subscribers fall whilst 1Q16 revenues rise marginally

Belgium fixed broadband access coverage map published

The Belgian Institute for Postal services and Telecommunications (BIPT) has published on its Website maps showing the coverage of the fixed broadband networks in Belgium. These maps show the percentage of dwellings that can be connected to the broadband access service in each municipality according to the varying download  speeds.

The maps show that 99.9 percent of the residences in Belgium have access to a fixed 1 Mbit/s connection. As far as high speed (30 Mbit/s) is concerned, Belgium has an estimated coverage percentage of 93.5 percent of habitable dwellings and for very high speed (100 Mbit/s) the estimated coverage rate is of 91.1 percent of habitable dwellings.

Further reading:

World LTE market & MBB spectrum
Published by iDate in December 2015
Dataset+Report – 22/12/2015  Markets at June 2015 & Forecasts to 2019Markets – Players – Technologies – CapEx – Pricing The bundle World LTE market & MBB spectrum includes two deliverables dealing with both LTE and spectrum issues: 1. A database (updated h…(more)

Western Europe Pay TV Operator Forecasts
Published by digital TV research in September 2015
Liberty Global has been the largest pay TV operator in Europe for some time (with assets both in the West and in the East). However, its top slot in Western Europe is under threat, with Sky Europe [satellite subs only] expected to overtake its subscriber count in 2017, …(more)

Connected TV Forecasts
Published by digital TV research in August 2015
he number of TV sets connected to the Internet will reach 876 million by 2020, up from 105 million at end-2010 and the 415 million expected at end-2015, according to a new report from Digital TV Research. Covering 51 countries, the Connected TV Forecasts report states…(more)

Belgium telecoms market report 2015
Published by Analysys Mason in July 2015
This Country Report and accompanying data annex provide a comprehensive overview of Belgium’s telecoms market, including KPIs and data on subscribers, penetration, revenue and ARPU. The Report analyses the strategies of major players in the country’s fixed and mobile te…(more)

Belgium – Telecoms, IP Networks and Digital Media
Published by Paul Budde Communication Pty Ltd. in June 2015
This report provides a comprehensive overview of trends and developments in Belgium�s telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors. Subjects include: Market and industry analyses, trends and dev…(more)

Posted in Broadband, Europe | Comments Off on Belgium fixed broadband access coverage map published

Thai regulator cancels tender

The Thai Office of the National Broadcasting and Telecommunications Commission (NBTC) on 27 April said that it had cancelled the tender for six monitoring stations for radio frequency identification. The report can be downloaded here.

Further reading:

Thailand Telecommunications Report
Published by Business Monitor International in March 2016
BMI View: In 201 6 , the focus in the Thai mobile sector will be on 4G as the 2015 spectrum auctions saw operators forking out exorbitant amounts for valuable spectrum , which will enable them to expand their LTE networks and range of value-added-services (VAS) without …(more)

Asia – Mobile Infrastructure
Published by Paul Budde Communication Pty Ltd. in February 2016
This Asia market report covers 35 countries in North, South, South East and Central Asia. The theme of the report is mobile infrastructure and development. The report covers developments in 3G, 4G, 5G and LTE and related government, regulatory and spectrum developments…(more)



Posted in Asia-Pacific, Spectrum | Comments Off on Thai regulator cancels tender

Australia sets out Cyber Security Strategy

The Australian government has said that it will invest more than AUD 230 million (USD 179 million) over the next four years to enhance the country’s cyber security capability and deliver new initiatives. This complements the significant investment in cyber security outlined in the Defence White Paper, boosting Defence cyber capabilities by up to AUD 400 million (USD 311 million) over the next decade.

Malcolm Turnbull MP says that a Minister Assisting the Prime Minister on cyber security  will be designated and a Special Adviser on Cyber Security appointed. The Minister for Foreign Affairs will also appoint the first Cyber Ambassador and the Department of Defence will continue to lead the co-location of the Government’s operational cyber security capabilities in the Australian Cyber Security Centre.

This strategy will be to develop partnerships between the public and private sectors, support home-grown cyber security capabilities and promote international cyber cooperation.

The full document can be downloaded here.

Further reading:

Published by Visiongain in February 2016
CYBER SECURITY MARKET REPORT 2016-2021 Forecasts, Analysis & Profiles of Top Companies in Network, Data, Endpoint, Application and Cloud Security, and Identity & Access Management The inexorable rise of cyber attacks worldwide has led visiongain to publish thi…(more)

Cyber Security Market by Solution – Global Forecast to 2020
Published by marketsandmarkets in June 2015
Cyber Security Market by Solution (IAM, Encryption, DLP, Risk and Compliance Management, IDS/IPS, UTM, Firewall, Antivirus/Antimalware, SIEM, Disaster Recovery, DDOS Mitigation, Web Filtering, and Security Services) – Global Forecast to 2020 The cyber security market h…(more)

Global Cyber Security Market 2016-2020
Published by TechNavio in January 2016
About Cyber Security Cyber security solutions enable organizations by monitoring, detecting, reporting, and countering cyber threats to maintain data confidentiality. With an increase in Internet penetration in emerging countries, the adoption of cyber security solutio…(more)

Published by Visiongain in December 2015
Leaders in Cloud, Endpoint, Net, App, Data, Security Operations & Identification Management The latest report from business intelligence provider visiongain offers comprehensive analysis of the top 100 cyber security companies. These are the ones that you need to w…(more)

Africa Cyber Security Market by Solution, by Service, by Verticals, by Country – Global forecast to 2020
Published by marketsandmarkets in June 2015
Africa Cyber Security Market by Solution (IAM, Risk and Compliance Management, IDS/IPS, Encryption, Antivirus and Antimalware, Firewall, DLP, UTM, Security and Vulnerability management, Disaster Recovery and Business Continuity, DDOS Mitigation, Web Filtering) by Servic…(more)

Posted in Asia-Pacific | Comments Off on Australia sets out Cyber Security Strategy