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Smartphone penetration growth in emerging markets

Inside Telecom Staff

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Smartphone penetration

Smartphone continues to rise in the developing world. According to a GSMA report, by 2025, smartphone penetration will reach 80% globally. The countries contributing to the significant increase includes, India, Indonesia, and Pakistan.

Consumer behavior is shifting and changing. 70% of smartphones will run on LTE, which reflects the dominant influence of the mobile internet generation. Unlike Europe and the United States, operators can still leverage profit from emerging markets who have yet to be dominated by the tech giants.

Operators will have to step up efforts to provide reliable and efficient service delivery to the remaining ‘unconnected’ demographic within emerging markets, who need smartphone connectivity; the growing base of mobile internet users (from emerging markets) access internet directly from their mobile device and not from PCs.

As a result of this shift in mobile user behavior, there will be an inevitable rise in the growth of app development and online content – to meet the demands of our mobile-centric mindset. It is predicted that by 2021 there will be an estimated 7 billion mobile users worldwide.

In some countries, including Malaysia, India and Thailand, the average monthly data usage consumption has surpassed 10GB. In India, Jio’s competitively lower 4G data packages, partly justifies the rapidly growing consumption rate. But with recent talks about increasing spectrum pricing, the cheapest service provider in the world, may modify their rates respectively. However, according to analysts, this change will not curb the rate of consumption in the country.

Smartphone penetration has almost doubled throughout Thailand since 2014, with 38.5 million (55.9% of the population) using these devices in 2019. A survey revealed that most mobile users expect 5G technology to be available in a couple of years with half them expressing willingness to change providers within six months, if their existing operators did not offer the technology. According to a report, consumers were looking for new 5G-ready applications and services. Heightened expectations for high speed, low latency services has indeed, spread to all parts of the world.  

A change in Industry value is shifting operators toward vertical integration and network asset ownership. Mobile video traffic (OTT) is expected to grow 50% annually through 2020. This will account for 75% of all mobile data traffic. Emerging markets alone contribute to 59% of global smartphone shipments – creating more opportunities for operators in the emerging economies. 

While global economic instability continues to dominate front page news and threaten global growth prospects, 5G has provided new hope for the smartphone world. This year, 5G will propagate developments in the industry. An IDC report expects 5G shipments to reach 8.9% of smartphones shipped in 2020, accounting for 123.5 million devices shipped.

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Azercell’s 4G footprint expansion made possible with Nokia

Karim Hussami

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Azercell’s 4G footprint expansion made possible with Nokia

Azerbaijan operators are expanding their 4G LTE offering, which will bode well for the underlying dynamics of the market. Furthermore, steady 4G base stations and network expansion will further provide momentum for innovative uptake.

Nokia has announced plans to expand the 4G footprint of Azerbaijan’s Azercell by deploying its AirScale 4G base stations at over 1,400 sites in Azerbaijan; the first large-scale deployment outside of the capital city, Baku.

After Nokia announced an LTE FWA announcement involving Nigeria and an FTTH announcement involving the Philippines, the deal with the Azerbaijan-based mobile operator Azercell, will realize the expansion of 4G, preparing Azerbaijan for next-generation connectivity.

“Nokia’s AirScale Radio Access solutions will provide Azercell with high-speed mobile connectivity to cater for increased demand as well as providing a clear migration path in the future. Nokia is the sole supplier in this deal and will replace the former 4G provider and develop the network further,” according to Nokia’s website.

Azercell is the largest operator in Azerbaijan, with more than 5 million customers. It will use Nokia Software’s NetAct Cloud network management system that meets customer demands for software-only delivery.

NetAct manages both radio and core networks and provides applications for fault management, configuration management, network and administration management, performance management, and security management. The deal includes Nokia’s services for network design, deployment, and optimization. Installation began at the end of 2018 and was completed in July 2020.

“Azercell has expanded 4G network across the country with Nokia to provide its population with equal technological opportunities and the latest innovations through its high-speed Internet,” Marat Hamidov, Director of Network Technology Department at Azercell, said.

“A high-performing 4G network is absolutely fundamental, and with our AirScale solution, we also offer a simple upgrade to the next technological era when Azercell is ready,” said Mikko Lavanti, Market Unit Head, Central East and Central Asia (CECA) at Nokia.

Azercell plans to rollout 4G across the whole country, including semi-urban and rural regions. As well as further plans to deploy low-power and wide-area NB-IoT services. 

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NSCS Issues an Alert for UK Academic Institutions Amid an Increase in Cyberattacks

Ranine Awwad

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NSCS issues an alert for UK academic institutions amid an increase in cyberattacks

On September 17, 2020, the UK’s National Cyber Security Center NCSC has issued an alert to the academic sector following an increased number of cyberattacks on schools, colleges, and universities. In fact, UK universities have been suffering from cyberattacks following the rise of online schooling amid the Covid-19 pandemic. A new report by Kaspersky published on September 4, 2020, states that phishing, DDoS (distributed denial-of-service) attacks, Adware and Malware are among cyberattacks threats associated with online learning.

NCSC provided UK institutions with a set of alerts to keep criminals out of their network following the detection of 17 ransomware attacks in August 2020. These attacks usually target the encryption of an organization’s data by criminals, who demand an exchange of money for its recovery.

The National Cyber Security Center has encouraged UK institutions to ensure that all their data are backed up and copies are stocked offline to prevent data loss in case of any cyberattack. The authority said that it is ready to support institutions as well as offering guidance for them to better understand the cybersecurity sector. “The NCSC recommends that organizations implement a ‘defense in depth’ strategy to defend against malware and ransomware attacks”. Moreover, they added, “Your organization should also have an incident response plan, which includes a scenario for a ransomware attack”.

Paul Chichester, Director of Operations at the NCSC, said, “While these have been isolated incidents, I would strongly urge all academic institutions to take heed of our alert and put in place the steps we suggest, to help ensure young people are able to return to education undisrupted”. Moreover, he added, “We are absolutely committed to ensuring UK academia is as safe as possible from cyber threats, and will not hesitate to act when that threat evolves.”

On September 4, 2020, The DoppelPaymer ransomware gang breached Newcastle University systems and stole backup files, states IT Governance. The BBC also reported that Northumbria University suffered from “operational disruptions across networks and IT system on September 1, 2020.

David Corke, Director of Education and skills policy at the Association of Colleges, said “As the last six months have shown us, it has never been more important for colleges to have the right digital infrastructure in order to be able to protect their systems and keep learning happening, whatever the circumstance”, according to The York Press.

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Korea’s KT will build 5G testing to support SMEs

Ranine Awwad

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Korea’s KT will build 5G testing to support SMEs

On September 16, 2020, Korean Carrier KT announced plans to build 5G test facilities nationwide. This move comes as part of the Korean government plan to support companies developing new services using 5G technology.

The KRW 28.5 billion (US$24.2 million) project aims to provide small and medium-sized firms access to research versions of the 5G network to test new services and is expected to be completed by 2023, according to RCR Wireless. The testing will be running in 4 different locations including Pangyo, south of Seoul, and the central city of Daejeon.

Korean Carrier KT plans to install 5G at the facilities on the 3.5 GHz and the 28 GHz bands by the end of 2020. Moreover, the carrier has announced that 200 employees will work on developing plans on how Artificial Intelligence, 5G, the cloud and the Research & Development will support the new deal scheme which is expected to create 550,000 jobs this year. 

According to Mobile World Live, Yoon-Young Park, head of the taskforce, said, “KT will create a commercial standards-based 5G network environment in which companies can research and contribute to the industry, with a focus on services including connected cars, drones, smart factories, and media streaming”.

Korean telecom operators have introduced 5G technology since April 2019. In July, they agreed to invest a total of KRW 25.7 trillion by 2022 aiming to boost 5G infrastructures across Korea, according to RCR Wireless. Despite the impacts of Covid-19 on the rollout of 5G network infrastructure, the operator expressed confidence in closing 2020 with 3.5 million 5G subscribers. 

Back in June 2019, Huawei opened its first 5G OpenLab in Seoul which was set to provide 5G network testing and verification environments for partners and help Korean enterprises use 5G networks to incubate new services, according to GlobeNewswire. 

Recently, the government of South Korea has announced its aims to proceed with a pilot project for non-standalone 6G services by 2026.

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