LTE is good to go so now what?
- Much awaited LTE spectrum allocation ultimately gets released; 8 agencies from preliminary nine shortlisted get the nod
- Operators should get their basics proper together with 2G & 3G services earlier than singing the LTE advertising and marketing praises
NEWS ANALYSIS: THE government, thru enterprise regulator the Malaysian Communications and Multimedia Commission (MCMC), has finally introduced the allocation of the tons-predicted 2600 MHz (2.6GHz) spectrum band to 8 operators for the deployment of Long Term Evolution (or 4G) wireless technology.
According to a press declaration the day before today, the 8 corporations in alphabetical order are Celcom Axiata Bhd, DiGi Telecommunications Sdn Bhd, Maxis Broadband Sdn Bhd, Packet One Networks (M) Sdn Bhd, Puncak Semangat Sdn Bhd, REDtone Marketing Sdn Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd.
At the time when these licenses had been first awarded a year in the past, tongues have been wagging, appreciably thinking three primary troubles.The first changed into whether or not or not Malaysia, having only 28 million people, could need 9 LTE providers to serve any such small marketplace; the second one turned into why a few groups were assigned the precious spectrum even though their present enterprise became no longer doing well.
The 1/3 was why was a new operator, Puncak Semangat – ostensibly with ties to a powerful nearby billionaire, Tan Sri Syed Mokhtar Al-Bukhary – turned into allotted 40MHz of spectrum despite its loss of verified know-how in running a complicated wi-fi commercial enterprise.
In its press announcement yesterday (Dec 5), MCMC chairman Dato’ Mohamed Sharil Tarmizi stated that his organization is constantly committed to finding the proper balance among the desires of customers, traders and other stakeholders of the enterprise.
“We believe that the balance struck between ensuring healthy opposition in the market and promoting industry improvement will help spur persevered growth for present provider providers and provide opportunity for brand spanking new marketplace entrants.”
Unfortunately searching at the day prior to this’s announcements and statements, we’re no toward answering any of those questions, a yr on. Malaysia desiring 9, or now eight licenses, is going against the worldwide norm, in keeping with an analyst.
Nicole McCormick, Ovum senior analyst, stated this [spectrum assignments] would make it hard for operators to achieve profitability, and beyond mobile consolidation in Malaysia shows this.“Heavy discounting with the aid of operators will probably turn out to be nine mobile broadband players contend for marketplace percentage,” McCormick had stated in ZDNet Asia.
When asked if awarding 30MHz of LTE spectrum to a nascent player which include Puncak Semangat turned into a very good concept, the Ovum analyst said such practices went against global traits. She referred to that during numerous Asian markets including Vietnam, India, Indonesia and the Philippines, the fashion became closer to consolidation, instead of the licensing of new gamers.
McCormick delivered that she expects consolidation to show up within the next few years as four of the cellular players may come to be three.
"On the WiMax side, it will be hard for even nationwide players -- as Malaysia has the maximum competitive WiMax play in Asia -- to compete alongside three to four LTE gamers," she said.
Besides this, there also are concerns as to what happens have to some of these eight gamers locate it too hot to deal with the competition.
Quoting from the same article, a senior telco government had then wondered how lots of those gamers are going to re-promote their spectrum allocation [at a later date] must they now not be able to roll out LTE networks, for the reason that a number of them have not been successful [with their WiMax rollout] in the first place.
“And what are the mechanisms by means of which MCMC will use to display their commercial enterprise plans this time?” he stated then. “At the quit of the day, the allocation of government sources should not be used as a get-short wealthy application,” he said, noting that spectrum is a countrywide aid that should best accept to those who've a tested tune report and may supply price to the united states.
Get the fundamentals proper
As plenty because the industry and consumers would like to complain about this matter, the state of affairs appears inevitable with the final allocation of those assignments.
While the industry can’t make extra headway as to the aforementioned questions, customers however can pressure service companies to buck up and make sure that those new LTE offerings are rolled out nicely.
MCMC in its declaration said that current service vendors might also use the 2600 MHz allocation to meet client demand, while new players are predicted to deliver sparkling ideas and innovation to the marketplace.
The industry regulator delivered that it expects service providers to enter into clever partnerships and sharing agreements between them, which include spectrum and radio access community sharing to be able to make use of large bandwidths, lower the cost of roll out and offer higher 4G-revel in and affordability to purchasers.
It also expects 4G wholesale MVNO (Mobile Virtual Network Operator), which will additionally be offered to other carrier carriers that do not get get admission to to the allocation.
While these are laudable goals for the 8 players to work towards and attain together in what is thought in today’s industry parlance as “co-opetition,” there are still some tough realities we want to face.
The first is to make certain that earlier than these players sing the hype of LTE and its superb guarantees – which are frequently couched in glitzy advertising promotions and classified ads – primary services from legacy structures inclusive of 2G to 3G are as much as par.
Many have experienced, and are still experiencing, negative provider now with their existing systems and so this time around, customers need to demand extra from their respective provider providers.
Hype usually trumps reality in marketing, but this time round, it’s incumbent on provider companies to move lower back to the drawing board and make certain that the basics are proper earlier than sounding the LTE trumpet.
What this indicates in practice is for them to make certain that during the entirety they do, they have got the consumer on the top of their minds.
From the layout of the network, rollout plans, patron provision and activation, customer service enquiries and complaints, right right down to billing disputes, or even to the termination of provider -- the entirety have to be about clients and their enjoy.
This implies that they have got to provide top-class service to their customers. No more should the customer experience inept name center officers who're simply parroting a checklist when supporting customers troubleshoot their issues; no greater commercials that declare high speeds and excessive best that aren't actual; no extra promises of time limits aren't met.
What clients need today is a dependable carrier that is affordable, smooth to use, and which meets their desires.
And with LTE, this have to be non-negotiable.
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