Monday, February 27, 2012

Dialling Progress

Financial Chronicle 27th Feb 2012, FC KNOW


By V Sridhar, G Krishna Kumar Feb 27 2012

Despite 10-12 operators in each licence service area, a lot needs to be done to improve data communication quality

Complete network outages, frequent call drops, busy networks not able to allocate capacity, and poor call receptions have become daily woes for a typical mobile subscriber, although India boasts itself of more than 850 subscribers and the second largest mobile market in the world, with 10-12 operators in each licence service area. While this is the case of voice communications, much work is needed to define and improve quality of data communication when the country is on the verge of broadband revolution and uptake.

Although different approaches have been adopted in various jurisdictions, the regulatory goal according to International Telecom­munications Union (ITU) should be to ensure: The delivery of acceptable service for the telecommunications user; and that consumers are aware of the variations in performance from various service providers thereby allowing them to make an educated choice regarding their preferred service provider.

However, ironically, the latest Trai report on Indian Telecom Services Performance Indicators (January 2012) shows that the quality of service (QoS) performance of most of the wireless service providers meets the benchmark levels and have even improved in certain areas. The network performance data for Trai’s QoS reports are provided by the operators but audited by an independent agency.

The Trai initiated QoS regulation in 2000 and revisited the measurement and metrics in 2008. It was acknowledged in Trai’s notification in 2009 that operator provided network data alone is not sufficient to measure QoS, and it was mentioned to measure customer perception on network performance, reliability and availability. However, till date the implementation of the above is scarce.

The objective assessment of QoS by auditor(s) based on network data is available for different service areas. However, we could find only one public report of the assessment conducted by an auditor in Karnataka circle in September 2011 that includes both the audited network data as well as subscriber perception. Ironically, while the network data relating to accessibility and retainability of calls of all the operators were above benchmark levels of 95 per cent (not only in this report but in all service areas), the customer perception on network performance was on the average about 73 per cent, much below the threshold level of 95 per cent. Further assessments conducted by Trai in other circles conveniently omitted customer perception data on network performance.

During the Trai consultation process in 2008, it was also mentioned by some stakeholders to specify more stringent and comprehensive set of QoS parametres to check end-to-end quality of calls and “user perceived speech quality” using techniques such as Mean Opinion Score (MOS)/ Perceptual Evaluation of Speech Quality (PESQ). A live listener test performed by unbiased listeners in a controlled end-to-end network setting as per defined ITU recommendations to arrive at MOS/ PESQ score is an effective way to benchmark the speech quality across different networks.

Looking at the wide disparity between what we as subscribers experience and what is reported by the network operators or even by the auditors, Trai should actively consider collecting customer perception of network performance. In fact, it is now time for the regulator to define “Quality of experience (QoE)” as this is what matters to end subscribers. For transparency, Trai should also mandate the mobile operators to provide dropped calls details to individual subscribers and reasons for the same as part of monthly billing statement or through SMS when a call is dropped. Subscribers should not be charged for dropped calls due to the network faults. Further, in India the QoS of emergency calls are not measured and monitored. In the wake of disasters such as train accidents and natural calamities striking us every day in some part of the country, it is time to think about mandatory implementation of mobile emergency calls and monitoring the performance of the same.

While robust metrics such as the ones mentioned above do exist for the measurement of QoS and QoE, they are weaker in data networks. Though Trai’s quality of service of Broadband Service Regulations 2006 does indicate critical network parameters such as bandwidth utilisation during peak hours, packet loss, latency, downlink and uplink speeds and the methodology of the measurement for the same, some of the parameters such as latency are not reported in the Trai’s performance reports. Further, customer perception of broadband performance is also not measured. The benchmark data is also available only for wireline and not for wireless operators.

As diverse range of services such as internet telephony, email, and video streaming are capable of being provided over broadband networks, it is time to provide a comprehensive framework along the lines suggested by the ITU by specifying QoS/ QoE parametres for different category of services. For example, Finnish Regulatory Authority provided network speed measurement software to subscribers so that they can measure objectively the speed of the data link compared to what is contracted and charged. As unrestricted internet telephony is expected to be implemented soon, challenges abound for measuring the quality of internet telephony calls as well.

Finally, the bigger question is what if the operators are found not meeting the benchmark levels. As of now the Trai just publishes the QoS report and does not levy any financial penalty on the violators. However, in Trai’s recommendations in 2009, it is mentioned that Trai will consider imposing financial penalty on the errants, much similar to what has been implemented for unsolicited commercial communications.

It is time that DoT gives up some of its power as licensor and through amendment of Trai act, gives teeth to the regulator including levying penalties on the operators found violating QoS norms.

(V Sridhar is research fellow, Sasken Communication Technologies & G Krishna Kumar is VP-delivery, Symphony Teleca Corporation, Views are personal)

Wednesday, February 1, 2012

Mobile handset industry: Is change the name of the game?

February 1, 2012 14:55 IST, Rediff Business - Technology


Mobile Handset Industry: Is change the name of the game?

(G Krishna Kumar is a wireless Telecom professional based in Bangalore.  Blog: http://bloggerkrishnak.blogspot.com, krishnak.krishnak@gmail.com  Views expressed are personal)

Who could have predicted the rise of newcomers Google or Apple in the mobile arena and fall of the traditional market leaders, a few years back? In fact, the Top 5 ranked Smartphone vendors have changed dramatically over the last 5 years. 

Changing Market dynamics

The Mobile industry’s structure has witnessed unprecedented and tumultuous changes over the past two decades as the trendsetters and leaders have rapidly changed. Up until a few years back, the mobile Industry was controlled by the handset manufacturers or OEMs such as Nokia, Sony Ericsson etc on one hand and the Mobile operators on the other hand.

Japan, long considered as a top technology innovator and a pioneer in the mobile Industry has suddenly seen its leadership position eroding.  Although Japan has quite a few firsts to its credit like the concept of App store and mobile money,  the Japanese mobile industry of late has been struggling to keep pace with the Apple-Google effect.

The sheer size of the mobile phone market drives every other hardware or software vendor to believe that they have a high chance of being successful. This has led to creation of many software phone platforms, by companies with deep Mobile Industry expertise and through consortium. However, a few met with limited success and rest simply vanished. Google’s Android, the open source software platform is perhaps the most successful thus far.

In general, why is the Smartphone market important for OEMs and operators? While Smartphones offer maximum margin to OEMs, it also helps in increased data revenue for Operators. Content providers also enjoy direct benefits due to higher consumption of services and applications by Smartphone users.

Apple-Google double impact

The launch of Apple’s iphone and Google’s Android has created an unprecedented double-impact on the mobile Industry - iphone is still the undisputed reference for a Smartphone and has created an “Aspirational value” among business users and consumers alike. In contrast, Google’s Android has ensured availability of hundred of phones at affordable prices.

Apple’s user experience was a game changer, considering that many OEMs over the past 15 years failed in creating a compelling touch driven user experience. Android has played a key role in drastically reducing Smartphone prices to less than Rs5000. Android has significantly reduced engineering and R&D cost, thus lowering the entry barriers in the OEM space. No wonder the Indian OEMs like Micromax, Lava etc provide tough competition to established players in the Indian market. The Semiconductor companies have also enabled this change as they seek to win market share and also be competitive in offering comprehensive solutions to OEMs. Reduction in Hardware and semiconductor costs have also helped in bringing down the phone cost.

Apple is credited for being vertically integrated - offering Applications and content to its users through the App store and the recently launched iCloud service. Google’s App store too experienced tremendous success. This has resulted in a huge disruption in the market allowing users to personalize their phones from lakhs of Applications in the App store. Earlier, users had to depend exclusively on their operator to download Apps/content and this was working nicely for the operators’ walled-garden approach. Large global operators on their part, continue to believe in providing quality apps to its subscribers, but with limited success.

Traditionally, a phone’s life-cycle from concept to realization has taken roughly 18 to 20 months. Over the past couple of years, the cycle has shrunk by more than half.  Newer models hit the market every few months. The drastic reduction in the phone creation cycle has naturally reduced the number of differentiating features among phones. Increasingly product differentiation among the various mobile phones is reducing by the day and the Mobile market is looking more like TV and other consumer electronics market.

More Challenges/ opportunities and more changes!

With most OEMs under severe margin pressure, such a hyper competitive environment is certain to witness more consolidation, allowing only the strong and truly innovative ones to survive. Traditional hardware manufacturers can certainly cause disruption, but the challenging times are here to stay in the OEM space. Operators, on the other hand may eventually have to remain contented being a data-pipe provider (aka landline broadband providers).

As the role of mobile devices becomes ever more important in people’s lives, the platform powering the devices will play a critical role. Hence, more platforms like Android will emerge, however it is unlikely that Android will be displaced in the near future. RIM (creator of Blackberry) is expected to push its platform aggressively. However, Microsoft’s mobile platform may emerge as a dark horse, especially as Nokia has been able to move faster than before.

Another challenge that has come to the fore is Patents. Patent and royalties have always been part of the mobile Industry, but only recently has the patent war been so public. In the past most patent disputes have been relatively low key affairs resolved issues behind closed doors.  In order to strengthen their position, over the last few quarters companies have made significant investment in acquiring available patents from Nortel and IBM, Google buying Motorola etc.  With the on-going cases around the Android platform, and Apple's recent successful patent lawsuit against HTC, it's clear that the patent war is not going to subside anytime soon.

It is proven beyond doubt that in such a market, Innovative companies with strong IP portfolio have a distinct edge. Interacting with the mobile through gestures or tracking eye movement may re-define the market. Will Google’s future technology – Wearable computers bring about the ultimate disruption in the market. 

Apple has tried to maintain the stickiness quotient with its customers and there-by retaining its loyal customer base, however, will Apple be able surprise its users with innovative offerings every year?  Will Apple become a network service provider (MVNO), thereby creating an even tighter vertical integration and provide everything from handsets, network access, content to storage for its users?

The current social networking wave would continue, however, the next wave could well be Mobile-money or mobile wallet. Will other countries be able to repeat Japan’s success in Mobile Money?

Summing-up, the power equation in the Mobile Industry has shifted away from Operators/ OEMs to platform providers. Android and iphone, considered outsiders from a mobile industry perspective were able to revolutionize the mobile Industry and have created immense positive network externalities. Due to the dynamic nature of this industry, anyone within or outside the mobile ecosystem now have an equal chance of changing the mobile Industry. Amidst all the changes and challenges faced by the Industry, for the average mobile phone user, the good times are here to stay!