Wire & Cable Asia September 2017

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Wire & Cable ASIA – September/October 2017
Telecomnews
able to deploy rapidly within a mature
4G ecosystem. 5G investment is
likely to follow a more gradual path,
over a longer timeframe, with capital
expenditure not expected to account
for more than 25 per cent of operator
revenue prior to commercial launch.
In the early phase, 5G networks will
concentrate on boosting the capacity
of 4G networks to support increasing
cellular data traffic demands. 5G
will also enable enhanced mobile
broadband (eMBB) services such as
4K/8K Ultra-HD video, augmented
reality and virtual reality applications.
Although some services will require
devices with new form factors, the
smartphone is expected to remain the
principal 5G interface at launch. The
first 5G smartphones are likely to be
priced at a premium to 4G models, as
they will require an enhanced chipset
and RF module supporting multiple
sub-6GHz, and possibly extremely
high frequency bands (mmWave), as
well as, potentially, a 4K or 8K screen.
Operators are collaborating with
the broader mobile ecosystem and
vertical industry players to develop
new services and business models
that fully exploit 5G networks.
5G will support applications that
require massive scale, or that are
mission-critical and demand low
latency. Key vertical markets for 5G
applications are expected to include
energy and utilities monitoring,
security, transport, finance,
healthcare and industry.
Pre-paid segment faces
disruption
India’s mobile providers are
facing a potential loss of revenue
following disruption surrounding the
implementation of a new Goods and
Services tax system. The Economic
Times reported that many distributors
and retailers were unable to register
under the new scheme by 1st July,
preventing the outlets from selling
top-ups. Pre-paid customers make up
around 90 per cent of India’s wireless
subscribers and provide over 80 per
cent of the industry’s revenue.
A large number of pre-paid customers
recharge their accounts with small
sums on a daily basis and the
disruption could potentially leave
many without service.
The Economic Times added that
even where distributors were able
to complete registration, customers
faced additional uncertainty over
tariffs while retailers awaited updated
information from cellcos detailing how
much credit customers would receive
for their top-ups.
Commenting on the disruption, Rajan
Matthews, director general of the
industry group Cellular Operators
Association of India (COAI), said:
“All policy changes of this size are
bound to face teething problems. As
long as the government and industry
work together for the greater good,
we are certain that all issues will get
resolved.”
In a related development, India has
added ten per cent basic customs
duty (BCD) on mobile phone imports
to maintain support for the domestic
manufacturing industry. Under the
previous tax structure imported
smartphones cost an additional 11.5
per cent over Indian-made handsets,
but the new tax system eliminated
any difference between locally made
and imported devices. The new
BCD ensures the continuation of the
incentive for domestic manufacturers.
Subscriber slowdown as
excitement fades
Light Reading reports that Reliance
Jio, launched last September, has
witnessed a sharp fall in subscriber
additions and a drop in the number of
active subscribers to its service.
Controlled by Indian billionaire
Mukesh Ambani, RJio attracted 100
million customers within five months
of entering the market, chiefly by
offering Indian consumers free voice
services for life and free data services
for three months. Subscriber numbers
dropped to 72 million, however, when
charging was introduced.
Subscriber growth has fallen for
several consecutive months, but more
worrying than the decline is the drop
in active subscribers. According to
a recent report from Goldman Sachs
and ICICI Securities, RJio added just
400,000 active subscribers in April,
compared to gains of 16 million in
September and October 2016.
A key reason for the drop is that many
bought RJio SIM cards purely to
take advantage of the free offers and
stopped using the service when they
had to pay for the privilege. Although
tariffs continue to be minimal, RJio’s
initial allure appears to be diminishing.
Market researcher Velocity MR
believes that only 18 per cent
of RJio’s subscribers use their
connections as a standalone SIM,
as evidenced by mobile number
portability (MNP) data released by
Telecom Regulatory Authority of India.
The number of subscribers asking to
port their phone numbers remained
stable after Jio’s launch: nearly six
million subscribers submitted MNP
requests in March 2017 and 4.96
million in April 2017, compared with
4.91 million MNP requests in July
2016 and 5.1 million in August.
RJio continues to attract more
customers than any of its rivals, but
the steady fall in numbers must offer
encouragement to longer-established
providers such as Bharti Airtel Ltd
and Vodafone India.
Chip production begins
in Seoul
Samsung Electronics has begun
production and shipping at its new
semiconductor fabrication facility in
Pyeongtaek, south of Seoul, South
Korea, said to house the largest
single fabrication line in the industry.
Production focus will be on the
company’s latest three-dimensional
V-NAND flash chips, and will help to
meet semiconductor demand in the
fields of Internet of Things, artificial
intelligence, big data and automotive
technologies.
By 2021 the company plans to have
invested 30 trillion Korean won in the
Pyeongtaek facility with a view to
further expanding the semiconductor
fabrication capacity. Samsung is
also committing six trillion Korean
won to its Hwaseong plant to install
new infrastructure, including extreme
ultra violet (EUV) equipment, and
is reviewing plans to establish a
new OLED (organic light-emitting
diode) manufacturing site in Asan,
South Korea, by 2018, with a second
semiconductor fabrication line in
Xi’an, China.
Gill Watson
Features Editor