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Samena Telecommunications Council Discusses Various Ways Of Ensuring Sustainability Of Internet
Published Jun 12, 2011
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Samena Telecommunications Council, the South Asia, Middle East and North Africa region's telecom operators' representative body and European Telecommunications Network Operators' Association (ETNO), the European telecom operators' industry association, discussed various ways of ensuring the sustainability of the internet and the need to find a new equilibrium in which all players of the value chain contribute to the challenge ahead.
Thomas Wilson, CEO and Executive Managing Director of Samena Telecommunications Council said, "Telecom Operators can upgrade their current networks to cater to the ever increasing consumer demand, but is it a sustainable option? If the network operators upgrade to high capacity networks without developing additional revenue streams, they will encounter major shortfalls not so long into the future. Each of the models proposed by the Content Committee has its advantages and suitability or applicability depending on traffic growth, revenues, regulatory requirements, etc. Currently, such is the pace of change, whether in terms of consumer demand or innovation, that we have to be ready to face the challenges of an Internet economy."
Stating that the demand for increased network capacity, higher bandwidth, and innovative services and applications among others has never been higher, Eng. Saud Al Daweesh, Group CEO of Saudi Telecom Company & Chairman of Samena Telecommunications Council said, "The current Internet models that network operators have in place are sufficiently meeting the current demand for video and data streaming. However, internet traffic is expected to increase rapidly in the foreseeable future.
Global IP traffic has increased eightfold over the past 5 years, and will increase fourfold over the next 5 years. Overall, IP traffic will grow at a CAGR of 32% from 2010 to 2015. Telecom operators clearly need to rethink their economic model both from a revenue generation perspective, as well as from an investment perspective. There is no doubt that we as operators need to continue investing in broadband infrastructure; the question is though: How do we adjust our business model to ensure that this is sustainable."
Hakam Kanafani, Group CEO of Turk Telekom added, "Geographically, Turkey plays a very important role acting as the link between regions and continents, and Türk Telekom Group has the same vision for the telecommunications industry. We are glad to have facilitated this synergy and cooperation between Samena Council and ETNO, which we believe is the first step towards developing policies and strategies for building a sustainable Internet business model between telecom operators and over the top providers. Apart from a range of other attributes, operators have a distinct advantage of owning and managing their network. As Türk Telekom Group, we approach this issue through a convergence strategy, which includes convergence of services like voice and data, as well as convergence of IT and Telecommunications."
Samena Telecommunications Council's Content Committee has identified a number of possible future Internet models that Operators can adopt to cater to the future internet traffic resulting from the rapid growth of video and data traffic and increasing popularity of OTT applications. Some of the models include introducing commercial schemes to generate additional revenues by adjusting revenue structured schemes, Traffic dependent charges for all traffic, enhanced Quality Services over the public Internet, enhanced Quality Services based on bilateral agreements, Net Neutrality and tiered pricing to provide differentiated services, tapping into the advertisement industry and becoming an OTTP by capitalizing upon the operator's assets, Network Abstraction, tapping into Vertical segments, and developing a national or regional model jointly with telcos, content providers and OTTPs.
Luigi Gambardella, Chairman of ETNO's Executive Board said, "The evolution of broadband infrastructure and of online services and applications, as well as the related policy developments, need to be looked at from a global perspective. The sustainability of the Internet is not only an issue in Europe but also in the rest of the world. This is why ETNO values very much increased cooperation with Samena, which represents some of the fastest growing ICT and telecom markets in the world. There is currently a disconnection between traffic increase and revenue growth of operators who have to make the necessary investment. This calls for a broader reflection on the economy of the sector and its impact on the future of the Internet. A new sustainable environment must be found through which all players of the Internet are encouraged to contribute to the challenge of investing in additional Internet capacity."
Samena Telecommunications Council in partnership with ETNO will also be organizing the "CEO Leadership Dinner 2011" hosted by Türk Telekom Group on June 9th in Istanbul. More than 45 chief executives and chairmen from leading telecom operators are expected to convene together and discuss the leading issues prevailing in today's high growth yet highly challenging environment. This strict C level annual dinner gathering, provide the world's telecom leaders with an opportunity to have a dialogue on the leading issues they face, as well as discuss the theme "Facing Challenges: The Internet Economy".
About Samena:
Samena Telecommunications Council is a tri regional, non profit telecommunications association that unites the community of South Asian, Middle Eastern, and North African telecoms operators, manufacturers, regulatory authorities, and academics. Samena aims to promote collaboration and knowledge sharing in the Samena region spanning over 25 countries, including Afghanistan, Algeria, Bahrain, Bangladesh, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Nepal, Oman, Pakistan, Palestine, Qatar, Saudi Arabia, Sri Lanka, Sudan, Syria, Tunisia, Turkey, United Arab Emirates, and Yemen.
The Council is driven by telecoms issues that operators in South Asia, the Middle East, and in North Africa face, and provides its advocacy expertise to help incubate novel approaches and ideas to support the growth of the telecommunications industry in the region.
Headquartered in Dubai, Samena is chaired by Eng. Saud Al Daweesh, Group CEO of STC Saudi Arabia, and is directed by Mr. Thomas W. Wilson.
About Türk Telekom Group:
Türk Telekom Group, the leading communication and convergence technology group in Turkey, provides integrated telecommunication services from PSTN and GSM to broadband internet. As of March 31, 2011; Türk Telekom group companies have 15.8 mn Fixed Access Lines, 6.7 mn ADSL Connections and 11.8 mn Mobile Subscribers. Group companies have a modern network infrastructure covering the whole country and offer a wide variety of services to residential and commercial customers all over Turkey. Apart from 81,4 % shares in Avea, one of the three GSM operators in Turkey, Türk Telekom owns 100% of wholesale data and capacity service provider company Pantel International AG and its subsidiaries, 99.9% of broadband provider TTNET, convergence technologies company Argela, IT solutions provider Innova, online education company Sebit A.Ş., online gaming company Sobee and call center company AssisTT. Türk Telekom also has an indirect minority share in Albtelecom, the Albanian incumbent telecom operator. 55% of Türk Telekom shares belongs to Ojer Telekomünikasyon A.Ş. and 30% belongs to Turkish Treasury. The remaining 15% is publicly traded. Türk Telekom shares are listed in Istanbul Stock Exchange since May 2008.
For more information:
Walid Majzoub/ Farah Ibrahim
TRACCS
T: +9714 3672530
TRACCS Media Hotline: +97150 9448389
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VMD - [Virtual Marketing Department]
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