29 Oct 2008
Eurasia Com: 2 out of 3 giant Russian cellcos say 'yes'
Joining MegaFon's Alexey Nichiporenko in a Keynote Session Roundtable Discussion will be Oleg Raspopov, VP and Director of the Foreign Subsidiaries Business Unit at market-leading MTS (MobileTeleSystems). We expect the discussion to be a robust forum for the exchange of views about how best to exploit the remaining telecoms sector growth opportunities across the CIS markets of Central Asia and the Caspian region.
In the region we have defined as the target market for delegates for this particular conference, MTS has a presence in Armenia, Uzbekistan and Turkmenistan. MTS has furher CIS subsidiaries in Ukraine and Belarus.
Of Russia's 'big three' mobile players, only Vimpelcom has yet to confirm that a participant will take part in this discussion, which will take place on the morning of Tuesday 31 March, day one of the two-day Eurasia Com conference and exhibition. Naturally, we are in discussions with Vimpelcom about this and I remain confident about a positive outcome.
I will consider this Roundtable line-up to be perfectly formed if we are also able to add a high-level participant from TeliaSonera's Eurasia business unit. I will keep you posted.
29 Sept 2008
Catching up on developments across Eurasia
For us, the term 'Eurasia' maps quite closely to TeliaSonera's use of this sometimes ambiguous word. With reference to the company's TeliaSonera Eurasia business area, the giant Scandinavian telco, like us, seems to use the term 'Eurasia' in the geopolitical sense, i.e. as a (neutral) way of referring to the post-Soviet states, in particular the Central Asian republics and the Transcaucasian republics.
So, our Eurasia Com conference, as well as attracting plenty of delegates from the host country's operators (Turkcell, Turk Telekom, Avea etc.), is really designed to offer networking and learning opportunities to execs from the service providers of Caspian states (Armenia, Azerbijan, Georgia) and 'the -stans' of Central Asia: Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan, Uzbekistan. Mongolian delegates have also shown up in pretty good numbers for the last two years.
We find that a number of tech vendors we speak with find this to be an interesting but challenging region. Growth potential is good: mobile markets are some way from reaching European-levels of penetration, 3G networks are not yet ubiquitous, wireline teledensity is quite low. However, my own experiences of developing contacts in this part of the world make me realise that it's not always easy for some companies to explore the possibilities and do business with the operators that are taking advantage of the growth opportunities. So we believe that our event offers a uniquely valuable one-stop shop for vendors looking to make improve their connections in this region.
I am therefore working to catch up with any interesting developments that have taken place across these markets since we last visited Istanbul in April this year. A notable one is TeliaSonera's integration of two previously separate mobile operators in Tajikistan, Indigo and Somoncom. These two companies were among the assets the Scandinavian telco acquired when it bought U.S.-based MCT Corp. back in 2007. MCT also had stakes in Coscom of Uzbekistan (now rebranded UCell) as well as a smaller stake in Roshan of Afghanistan. According to a Global Mobile Daily report last week, Ucell have just launched 3G services in the cities of Tashkent and Samarkand. This leaves Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan and Turkmenistan as the region's markets that had not reported W-CDMA subscriptions to the World Cellular Information Service by June of this year. Turkey's 3G licensing process has been much delayed so, overall, I expect Eurasia Com to be attended by a lot of delegates who have yet to gain extensive experience working in a market where 3G services are available. If that translates into pent-up demand to learn from colleagues who do have useful experiences and insights to offer, we should see very lively networking and discussions.
22 Sept 2008
Russian telcos heading for Africa?
Coming up in June, we have another CIS-focused meeting: Russia & CIS Com in Moscow. This gets a different crowd - delegates mainly from the Russian Federation itself, as well as from Ukraine and Belarus. Regarding the latter country, we really boosted the level of the participation. Belarus's incumbent carrier Beltelecom was represented by General Director Konstantin Tikar, who made some very kind comments abou the usefulness of the trip.
At the last two iterations of Russia & CIS Com, we've heard more and more about the plans of some Russian cellcos in terms of exploring the growth potential of markets outside their usual CIS footprint. Earlier this year, a delegation from Iran was very visible, clearly hoping to remind prospective strategic investors of the impending sale of a 3rd national mobile licence in the Islamic Republic. We've also seen Russian telco people showing up at a conference we used to run in Vietnam, clearly interested in that particular market.
It wasn't, therefore, a big surprise to see a news item this morning which indicates that Russian telecoms investment firm Altimo has expressed an interest in Nigerian operator M-Tel/NITEL. We'll encourage Altimo and other Russian groups to get involved at our huge annual pan-Africa event in November: www.ComWorldSeries.com/africa.
19 Sept 2008
3G coverage widens across former Soviet Union
As we prepare for the two Com World Series conferences which gather telco execs from CIS markets, I shall be asking whether discussions around extending 3.5G to these markets' outlying regions remains a hot enough topic to warrant significant talking time. The first of these will be our annual Eurasia Com event in Istanbul (next: March 2009), where delegates from the host country's telecoms operators are joined by colleagues from the Caspian Sea region (Armenia, Azerbaijan, Georgia) and the five other former Soviet Republics of Central Asia - the markets I've taken to calling the 'the Stans' for short: Kazakhstan, Uzbekistan etc.
MTS also has 3G deployment plans in that part of the world. The company holds 3G licenses in Uzbekistan and Armenia, where I believe the networks are scheduled for launch in 2009. As far as I know, that would put MTS first-to-market with 3G services in both countries.
However, W-CDMA networks have been live for some time in other parts of the region. I've twice had the pleasure of meeting David Lee, the British CEO of Metromedia-owned Magticom, one of Georgia's three MNOs. David has been kind enough to participate at both Eurasia Com and the Moscow-hosted Russia & CIS Com. Magticom was a 3G early mover, starting work on its W-CDMA network in 2005. At both conferences, David shared some useful insights his team has picked up along the way. By December 2006, our WCIS database was indicating that Magitcom's Turkcell/TeliaSonera-backed rival Geocell had its first few 3G subscriptions.
Tajikistan was also an (unlikely-seeming?) 3G pace-setter, with Babilon Mobile going first-to-market in 2005.
As preparations get underway for Eurasia Com 2009, I look forward to reacquainting myself with all these developments in the coming weeks. It's a fascinating region.
18 Sept 2008
A new day, a new WiMAX deployment announcement... oh, and another one...
This will be useful because shortly I am scheduled to initiate the programme of research and speaker acquisition leading to the development of the Com World Series team's annual Eurasia region conference and exhibition in Turkey. The relevance of getting one more chance to make further connections in Russia is that the CIS markets from which our Eurasia event gathers delegates are a natural place for Moscow-headquartered telcos to grown their footprints. In mobility, MTS and Vimpelcom have been particularly active in terms of snapping up existing MNOs in these markets, or winning new licences and building new operators from scratch. Perhaps WiMAX-deploying broadband service providers from the Russian Federation will follow this lead. That's a question I'll be keen to ask if I do make the trip to the WiMAX event in Moscow next month.
When we needed to rebrand our former GSM>3G Central Asia conference two years ago, 'Eurasia' was the best term we could find to cover a wide region which takes in Turkey itself, the area around the Caspian Sea and the former Soviet states of Central Asia. Happily, our preferred term maps quite neatly onto how this huge area is described by one of the telcos most active in that territory. TeliaSonera has a dedicated Eurasia Business Area, headed up by Tero Kivisaari. TeliaSonera are joint owners (with Turkcell) of Fintur Holdings, which in turn owns a number of mobile operators in CIS markets - Azercell (Azerbaijan), K'Cell (Kazakhstan), Moldcell (Moldova) and Geocell (Georgia). Two further MNOs are owned directly by TeliaSonera but managed by the Fintur JV with Turkcell. These are Ucell (Uzbekistan) and Indigo-Somoncom of Tajikistan.
I met Fintur's then-newly appointed CMO Gary Koeb at Eurasia Com 2008 back in April and look forward hopefully to involving the various companies under the Fintur umbrella more closely in 2009 than in previous iterations of the conference.
There has been evidence of some interest inWiMAX in the Eurasia region. Planned and actual deployments include:
- Cornet (Armenia)
- AZ Qtel (Azerbaijan)
- Babilon-T (Tajikistan)
- MTS Uzbekistan
The list is growing. This week, Alcatel-Lucent announced a deal to supply a mobile WiMAX network to Delta Telecom of Azerbaijan. I expect discussions around the business case for WiMAX deployment in these markets (for MNOs, for start-ups, for the incumbent state-owned wireline carriers) to form a pretty significant component of the agenda at our next Eurasia Com conference. So these are the kinds of regional pioneers we will be looking to involve. Watch this space.
Meanwhile, in the Middle East, MNO Mobily of Saudi Arabia recently announced the launch of WiMAX services in four cities, which is apparently the first stage of a plan to cover the entire Kingdom in broadband wireless. This story was picked up by our Global Mobile Daily service on 3rd September.
WiMAX announcements seem to be popping up all over the regions we cover via the Com World Series. Expect to see that reflected at the shows.