News Round Up

Sorry for the recent lack of updates I have been too busy to spend as much time as I would like posting. I lieu of a full post here are some links to interesting articles I have read over the last week or so. There has been a lot of talk lately about the future of Broadband so there is lots to talk about!

• Mobile Phone company MTS, are to release thermoresistant SIM cards which are able to withstand temperatures from -40 to +105C. Handy if you live in some kind of freezing wasteland/ scorching desert.
• Ferrets are key to bridging the digital divide between cities and rural areas according to one Broadband provider. (Check the byline date)
• Broadband 'to reduce the gap between internet and TV'. Will the computer screen become the new television screen?
• Gordon Brown want high speed Broadband to 'prevent a digital divide' and yet Labour are trying to rush the Digital Economy Bill through through Parliament before the election.
• Ofcom wants cheaper mobile phone calls and easier network switching. In particular they may force providers to make cross-network calls cheaper.
• Bangladesh has blocked 1.5 million mobile numbers and tightened regulations for buying and selling SIM cards in order to prevent mobile related crime.
  

3 Wins Best Mobile Broadband award

3 Mobile has won the best mobile broadband award at this year's Mobile Choice Consumer Awards. Three's 15GB tariff beat off the competition to take first prize for the best monthly package. Three offer a Samsung N130 netbook, mobile broadband dongle with 15GB data allowance and 100 free texts for £25 a month.

"We are delighted to be recognised as winners for our Mobile Broadband year on year and to be able to offer our customers deals that are great value for money," Marc Allera, sales and marketing, Three.

TheMobile Choice Consumer Awards also include categories for Phone of the Year, Tariff of the Year and Best High Street Retailer. The winners are decided by the readers of Mobile Choice.

T-Mobile and Orange Merger Could be Delayed

The merger of two of Britain's biggest telecoms providers is likely to be delayed whilst it is investigated by the Office of Fair Trading. The merger which was made public last month would create a company with a 37% stake of the mobile phone market in the UK and reduce the number of large providers to four.



The Guardian reports that the merger has been refered to EU regulators by the OFT and could be delayed. Consumer groups have been vocal in oposing the merger which they say will lead to reduced competition in an already limited market. Proposed reglations could mean that several of the main providers could be forced to sell of parts of their mobile spectrum to avoid any one company having too large a share.

The 3G spectrum needs improvement if the Governments pladge of 'broadband for all by 2012' is to be met. The Government has called on mobile broadband providers to increase their coverage to areas that cannot recieve fixed line broadband. (The Guardian article linked above claims that providers will have to 'plug the gaps in existing fixed-line infrastructure with wireless broadband'. They seem to be confusing Wireless broadband (which uses a wireless router plugged into a phone line) with Mobile Broadband) . If no single company is allowed a larger share of the spectrum this increase in coverage will have to have the backing of each of the main providers.

Broadband Tax To Be Law By Next Election

The minister for Digital Britain Stephen Timms has said that the new broadband tax will be law by the time the election comes around. Speaking at a debate in London Mr Timms said that the tax is still a priority and will be 'presented to parliament as part of the Finance Bill'.

The proposed tax which aims to raise cash to improve the nations broadband infrastructure will cost those with fixed phone lines 50 pence per month. The idea for the broadband tax was proposed in the Digital Britain report in order to finance the government's plan to provide 'broadband for all' by 2012.

Those without a fixed line will not have to pay the tax another reason why mobile broadband is best when it comes to saving money if not for download speeds. Pay as you go mobile broadband users will be able to avoid the tax which may help to provide them with a fibre optic connection (eventually).

The tax has proved to be controversial with the Conservatives saying that they would oppose it. Some have said that broadband providers should foot the bill as they stand to profit from increased broadband coverage whilst others have questioned the ability of a 50p tax to pay for a fibre optic network.

Steve Weller of uSwitch.com says that the proposed tax is 'a classic case of robbing Peter to pay Paul.'

"We are talking about a digitally dependent economy and society, and as such, the Government should be looking to share the burden across businesses and consumers alike."

3 Billion Mobile Broadband Users by 2014?

There could be 3 billion mobile broadband subscribers by the year 2014 according to the CEO of telecoms company Ericsson. Hans Vestberg was speaking at the Broadband World Forum in Paris when he made the prediction. Vestberg says that although mobile broadband is only in 1 in 10 homes so far Ericsson are expecting this figure to rise dramatically.

"It's a fantastic growth we can see in front of us"

Mr Vestberg added that "there are currently four billion mobile phone users and that this is likely to rise by three billion in the next five years". The stats quoted include multiple those who own multiple SIMs taking into account the fact that some households have several mobile phones, pay as you go mobile broadband and traditional fixed line broadband.

Orange and T-Mobile to Merge

As predicted on this very blog Orange and T-Mobile are to join forces to become the largest mobile telecoms company in the UK. The deal has been announced but has yet to be checked by the relevant regulatory bodies. The new company will start with 28.4 million customers and around 37 percent of the market. No details about branding have yet to be released but T-Mobile has been under performing lately and insiders have suggested that this deal has saved them from certain doom so I wouldn't be surprised in their brand name is let go.

This means that the Big Five mobile phone companies in the UK are now to become the Big Four with O2, 3 and Vodafone making up the numbers. Some have speculated that this could have a negative effect on consumers. Whilst the new Orange/T-Mobile hybrid will no doubt be able to offer increased coverage for mobile and mobile broadband it reduces the amount of competition in the UK market which could have an influence on prices.

Whilst the merger will cost the newly formed company it will also allow them to drastically reduce costs. Duplicate base stations and retail outlets will be closed and staff costs reduced. Most large towns have both an Orange and a T-Mobile shop and there will be no need for these to both remain open. Those who are already signed up with one of the companies are likely to see signal and coverage improvements.

3 announces 170 per cent rise in mobile broadband subscriptions

The telecoms provider Three has recently announced that it has seen a 170% increase in new mobile broadband subscriptions for the first half of 2009. The company currently has 3.8 million mobile broadband customers between their fixed monthly and pay as you go options.

Three's revenue has increased by 2% making them one of the only major broadband companies to record a profit this year. It seems that only the best mobile broadband offers will attract customers during a recession. The average spend of most of Three's customers has gone down but they have attracted new customers to their mobile broadband offering.

Mobile Broadband Provider 3 Unveils Mi-Fi

Mobile broadband provider 3 has announced plans to launch a new device which they hope will change the way we connect to the internet. The device which has been named the Mi-Fi acts like a mobile Wi-Fi modem allowing multiple users to connect anywhere.

Traditional Wi-Fi connection are only found in fixed locations such as coffee shops, train stations or at home. They allow users to connected wirelessly but require a wired connection to a telephone line for the incoming signal. The Mi-Fi will use mobile broadband technology to connect allowing users to set up ad-hoc networks anywhere they can receive a signal.


The device is aimed at both home and business users and will potentially be useful as a back-up connection when fixed line connections fail.

Mobile Broadband Coverage Maps Published by Ofcom

The Office of Communications has today published a series of maps showing mobile broadband 'not spots' around the UK. A 'not spot' is an area where no 3G connection is possible leaving consumers either unable to connect or only able to connect via a slower than 3G connection. As those in a 'not spot' may tell you, having a slower than 3G connection can stretch the definition of 'broadband' speeds a little too far.

The maps aim to make the choice for potential mobile broadband customers a little easier by showing clearly which areas are not well covered. Those in more rural areas seem to be the worst affected with Scotland receiving very little coverage by any of the main providers. Those in northern Wales also seem unlikely to get a great signal.

A map has been provided for each of the five main mobile broadband providers with Three Mobile Broadband and Orange appearing to have the most coverage. London is the best area for coverage which comes as no surprise. All five of the maps are available as a pdf from the Ofcom site. Those considering a pay as you go mobile broadband contract would be advised to check these maps before going ahead.

Offcom Confirms Aditional Spectrum Allocation for Mobile Broadband

The Office of Communications (Ofcom) has officially announced an additional spectrum allocation which has been cleared for mobile broadband. The 800Mhz band has been freed up by the shift from analogue to digital television.

Many European countries have cleared their 800Mhz spectrum in order to improve their mobile broadband infrastructure including Denmark, France, Switzerland and Germany. Originally the plan for the UK was to only clear a small section of the spectrum but Ofcom has since decided to clear the full band in order to match other countries allocations.



Once the digital switchover has taken place around the country the cleared areas of the spectrum will be auctioned off to the highest bidder. Mobile broadband providers will be keen to take advantage of this in order to improve their services and offer their customers the best possible coverage. Having a large area of coverage and good download speeds is vital for mobile broadband companies and this reallocation should help them to improve.

Mobile broadband customers should be set to benefit from the increased area of the spectrum available to their providers. The Digital Britain Group aims to see 100% broadband coverage by the year 2012. With the increased spectrum now available this is becoming a more realistic aim.

Three Offers One Month Mobile Broadband Contract

The Mobile Broadband industry is a very competitive one. Each year the big broadband providers try to bring out better deals in order to convince new consumers to sign up with them. Some offer free laptops others generous download limits. Three has decided to offer a new one month only contract aimed at those who don't want to get tied in to 18 months worth of monthly charges.

Their pay as you go mobile broadband offerings now include a month-by-month contract with a 5gb download allowance. Their 'dongle' (don't you just hate that word?) costs £20 on this contract taking the first monthly cost to £35. Users can cancel at any time and will only be required to pay for the remainder of the month. In contrast those canceling most 12+ month contracts are obliged to pay the remainder of their monthly costs making it effectively impossible to cancel most mobile broadband contracts.

This deal is likely to appeal to those needing mobile broadband in the short term. Students who spend part of the year at home will be able to use mobile broadband whilst at university without having to pay for it year-round. The downside to this plan is that you would receive a considerably smaller download allowance than with a long term contract.

Orange and Vodafone Bid for T-mobile

Mobile phone company T-Mobile is owned by Deutsche Telekom but might not be for much longer. Both Orange and Vodafone have expressed an interest in taking over the company. T Mobile has been under performing recently despite the appointment of a new MD but is not yet in the position of having to sell up in a hurry.

T-Mobile is the 3rd largest mobile phone company in the UK with around 19.2 million subscribers. Vodafone is the largest provider and Orange the 4th largest. Whoever is successful in their bid is likely to become the largest mobile phone operator in the UK by inheriting T-Mobile's massive user base.

If either Orange or Vodafone are successful in their takeover bids then the big five Mobile Phone providers in the UK will become the big four. Some have speculated that this will be bad news for consumers as it will result in less competition. Personally I believe that having one provider with double the amount of subscribers will mean that other companies will be forced to bring out some eye catching deals in order to compete. This would potentially be good for the consumer who is used to getting more for their money each year as it is.

Three mobile have already taken the big step of introducing free Skype-to-Skype calls as well as free Three-to-Three calls for most packages. It will be interesting to see how the other four (soon to be three?) providers compete with this.