Adventures in telecoms socialism

In January, writing an article for the Com World Series blog, I discussed the links apparently being formed across Latin America by state-owned telecoms operators from countries with left-of-centre governments. The starting point was the news that Venezuelan incumbent telco CANTV was considering a strategic partnership with Ecuador's beleagured CDMA MNO Alegro PCS. I mentioned my own enjoyable trip to Caracas in April 2008, during which I had the opportunity to visit CANTV HQ. The operator had been renationalised by President Hugo Chávez in 2007. The external affairs representative whom I met was keen to tell me about how the organisation was looking to develop partnerships with telcos in politically sympathetic states such as Cuba and Nicaragua.

At that point, I was only aware of Latin America as an arena in which state-owned telecoms service providers from countries with left-leaning governments might look specifically to markets run by political fellow travellers for new opportunities.

Last month, however, I learned from a brief Global Mobile Daily report that Vietnamese operator Viettel, owned by the nation's military, has selected Huawei and Ericsson to provide equipment for expanding its networks overseas into North Korea, Cuba, and Venezuela. The report notes that the operator has yet to enter any of these markets, and states that, according to Viettel Deputy Director Tran Phuoc Minh, discussions are planned with telecoms authorities in each country.

This is just the latest move in an international expansion strategy with which Viettel has already made progress. Last month, Viettel's subsidiary in Cambodia, using the Metfone brand, officially launched mobile services. The unit is said to have over 1000 base stations supported by a 5000km fibre-optic network linking all provinces in Cambodia. The new operation reportedly attracted 500,000 subscribers in its first three months of trial services. A Saigon Times article on the operator's foray into neighbouring Cambodia indicates that the new cellco will target low-income subscribers with a wide range of low-priced services and packages. Viettel Deputy General Director Nguyen Manh Hung is quoted as saying that this approach is not only about customer acquisition but is also intended to "contribute to society".

Viettel, the article states, also announced the provision of free Internet services for nearly 1000 Cambodian schools within the next five years. Rural rollout seems to be high on the Metfone agenda, with the operating planning to "extend its coverage to Cambodia’s remote villages and islands."

Meanwhile in Venezuela, CANTV's mobile arm Movilnet is set to launch a low-cost mobile phone on the local market. A Telecompaper report this Thursday states that the device, dubbed 'El Vergatario' is the first mobile handset produced in the country. According to Movilnet President Jacqueline Faria the device will be the cheapest available in Venezuela. To be launched for Mother's Day in May, the CDMA phone will be available for VEF 30 (USD 13.95). El Vergatario will be produced at the Venezuelan Telecommunications Factory (Vetelca), a joint stock company, in which the Venezuelan state holds an 85% stake, with the remaining 15% owned by ZTE. The article suggests that Vetelca hopes to sell around 600,000 Vergatarios this year.

Movilnet's subscribers seem to be a remarkably loyal bunch and the country's mobile market overall is one in which the three competitors' share of the subscriber base has remained largely unchanged for some time. Movilnet's competitors have not remained complacent. Movistar Venezuela has been steadily migrating customers from a legacy CDMA to a newer GSM network since March 2007 and has more recently launched W-CDMA services. Digitel, owned by Venezuelan businessman Oswaldo Cisneros, is also working to roll out 3G services in two stages, starting this month, according to local news portal Ciberespacio. The operator currently offers Huawei USB modems and by mid-2009 will integrate voice and data services.

OK, comrades. That's all I have on telecom-socialism for now.

Adventures in telecoms socialism

The mobile phone: the tool of freedom fighter and terrorist alike

These are turbulent times for some mobile operators in South Asia. Earlier this week, India's oldest communications service provider, state-owned BSNL, had to shut down all of its mobile network base stations along a 500 km stretch of the border with Nepal. According to an Economic Times article, this was due to security concerns. "All the BTS towers of BSNL mobile established in all Nepal bordering districts including Basti, Balrampur, Bahraich, Gorakhpur, Shrawasti, Siddharthnagar and Maharajganj have been jammed," a Government source said on condition of anonymity." By taking this step we have tried to chop off a helping hand of those involved in anti-India activities on Indo-Nepal border," the official added.

This comes very soon after the mobile operators of Bangladesh lost revenues during the recent mutiny by members of the Bangladesh Rifles regiment. In a Daily Telegraph report, I read about the Bangladesh Telecommunication Regulatory Commission asking the country's cellcos to cut off services.

Further east, the tiny minority of Burmese citizens with access to mobile services had services suspended in during the 2007 protests led by Buddhist monks.

Even for those of us lucky enough to live in quite stable countries, it is easy to imagine how mobile devices could be used to accelerate the spread of dissent during times of unrest. The Burmese Government certainly takes no chances. Services are provided by a lone operator - the state-owned Myanmar P&T - to just 0.59% of the population (by December 2008), according to the World Cellular Information Service. It will not surprise many readers to see the close correlation between very low mobile penetration and a country ranking right at the bottom of the world press freedom index compiled by Reporters Without Borders. Burma is ranked 170 out of 173. Other countries in the bottom five are Cuba (2.93% mobile penetration), North Korea (0.02%) and Eritrea (2.13%).

More encouraging is the 19.51% mobile penetration rate of Turkmenistan. The Central Asian, former Soviet Republic was until recently notable for a long list of peculiar restrictions placed on its citizens. Former President Saparmurat Niyazov enforced a ban on satellite dishes, beards, long hair, ballet, opera and recorded music. These restrictions are now being gradually relaxed by the new President Gurbanguly Berdimuhamedow, who came to power after the death of his predecessor in December 2006. Although Turkmenistan continues to attract criticism as a repressive one-party state, the relatively more open society since the passing of the country's first President seems to correlate with the steady increase in the take up of mobile services. Penetration was just 4.40% around the time the Türkmenbaşy died in office. A year later this figure had doubled, growing faster still during 2008.

I am sure many applaud the mobile phone and Internet access as being useful tools for anyone seeking to weaken the grip of a repressive regime. These sames technologies, however, are equally useful to those keen to change the world in ways which do not meet with approval of the western media - hence the network suspensions in Bangladesh and on the India-Nepal border.

The mobile phone: the tool of freedom fighter and terrorist alike