Sharing a Common Platform

Content Sharing
Carriers serving the SAARC market will have to work very hard to retain their customers and one of the ways to achieve this is to provide a number of products in a financially attractive package; the key component being 'content'. Almost all service providers in the region are gunning for sharing of content locally. But despite having cultural resemblances, nothing has been done to tap the outside market within the SAARC region. Content sharing among SAARC nations could be a boon for carriers who are contemplating to launch data services in big way.

'Collaboration for content with Indian service providers is relevant'
–Mark Hanna, CEO Wataniya Telecom

What is your priority now that Maldives has achieved a good mobile penetration?
There is a huge expatriate community in the Maldives. There are several short-term subscribers who work in the Maldives for a short duration, so our challenge is to capture this captive market. On the domestic side the market is highly satisfactory with 70% of the population already tapped. Wataniya Telecom is focussing on providing services for the youth and mobile commerce. The society is largely cash-based as it's not easy to travel to a bank. We are trying to change that by introducing mobile banking solutions. We are trying to come out with unique products and services that are relevant to the Maldivian society.

How do you plan to address the corporate sector?
Maldives is a country ideally set up for the BPO industry as the population is largely English speaking. We are taking steps to educate the market for potential of mobility in areas like BPO, telemedicine, tele-education, etc.

Tell us about your plans to introduce new technologies like 3G and HSDPA?
Maldives has no fiber optic cable or copper connection. Broadband penetration in the Maldives is not very satisfactory owing to the geographical challenge in setting up infrastructure. Of the 1,200 islands only 200 are inhabited. We cannot wire up the islands using copper or fiber, so wireless is the only option. We have got the only national transmission network completely over microwave connecting every island. We plan to move on to next generation transmission-that will be completely IP-based, and will provide large distribution capacity.

Currently HSDPA trials are going on which will get all 1,200 islands connected. Our network covers 97.5% right now and we plan to connect all islands. 3G will be a good option to improve broadband penetration and we shall be introducing it in the capital region.

What is your relationship with India-based companies?
We have collaborated with Reliance through its FLAG unit for undersea cable. We are talking with Reliance for content as well. Maldives is culturally the same as India as Hindi population is dominant here. So collaboration for content with Indian service providers is relevant.

"As 3G has arrived in Sri Lanka, our priority is to attract consumers for it, and for this we feel content will be a major tool. Sri Lanka Telecom plans to buy a TV cable company in Sri Lanka that will get content from India which can be provided to our customers a through 3G network," said Shuhei Anan.

The content and VAS market would be $5 bn market in India in the next couple of years. Growth in value-added services will be the catalyst for modernising SAARC's telecommunication network. Of course the knock-on effect of this activity will be that local software and content companies will mushroom and take a more dominant role in the SAARC telecom market.

"We face a huge challenge in addressing Singhalese speaking populace with localized content. We are pursuing mobile TV and in this respect content sharing between India and Sri Lanka will be very vital. On the content and terminal device front, SAARC can have adoption of 3G so as to leverage it to have better a bargaining power, especially by countries like India, Bangladesh and Pakistan," says Amarasekara.

The Communications Ministers have already adopted a SAARC plan to promote cooperation in enhancement of telecom links and utilization of IT within the region; to minimize disparities within and among member states in telecommunications; to harness telecom technology for the social and economic upliftment of the region through infrastructure development by optimal sharing of available resources and enhanced cooperation in technology transfer, standardization and human resource development; and to evolve a coordinated approach on issues of common concern in international telecommunications forum.

All this can be done if the member countries agree to reduce telecom tariffs within the SAARC region to the lowest extent feasible within the framework of cost orientation based on international benchmarks. For Intra-regional traffic within SAARC countries, efforts should be made to utilize either direct links or hubbing facility within the region wherein all countries should offer special rates for transiting regional traffic and utilizing the facilities of other members for their traffic overflow. For this purpose, licensed International long distance operators should be encouraged to frequently negotiate agreements for offering lowest possible tariffs; and Intra-regional communications for the traveler and entrepreneur should be facilitated by promoting country direct services, calling cards, cellular roaming and liberalized leased lines within the regulatory frameworks of member countries.

A fine blueprint on action plans on telecommunication initiative in the region is the need of the hour. The committee has asked member states to encourage cooperation among regulatory authorities to develop policies to increase tele-density and access to information and communication technologies at affordable tariffs. It also emphasized on the development of human resources in the telecom sector through cooperation and utilization of training facilities in the region.

The SAARC regulation is very much predictable now. The market is here to stay. New telecom laws will make the market more transparent and introduce measures to free up and accelerate competition. Governments too are making a concerted effort to bring telecom development to the forefront. But some problems will remain in terms of definition of standards, and in attracting new investment.

Rahul Gupta
rahulg@cybermedia.co.in
with inputs from Malovika Rao
malovikar@cybermedia.co.in