Page 6 - Mobile World Daily - Day 4
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NEWS

                                                             Orange puts pieces into                                                            The company also recently                  “I’ve changed my view,” Rennard
                                                             place for MEA growth                                                             strengthened its position in Egypt by      said candidly. One reason for this
                                                                                                                                              increasing its stake in Mobinil to 99 per  change of heart was that 3G
MANAGING EDITOR:                                             By Anne Morris                          MEA unit will also publish its           cent from around 94 per cent for a total   smartphone prices declined to around
Justin Springham                                                                                     results as a separate region under       cost of €209.6 million. Rennard said       $50. Orange started selling the Alcatel
                                                             Orange is building the                  the Orange Group.                        Mobinil should take on the Orange          OneTouch Pixi smartphone, and in
SENIOR EDITOR:                                                         foundations for its                                                    brand this year, and also expects the      2014 sold 860,000 devices across its
Steve Costello                                                         continued growth in the         Although Rennard said the              long-delayed converged licences to be      MEA footprint.
                                                             Middle East and Africa (MEA), and       process is an internal measure and       launched in Egypt this year. That will
CONTRIBUTORS:                                                                                        will have no impact on customers         enable the market’s three mobile             Encouraged by this, Rennard
Saleha Riaz, Ronan Shields, Richard Handford,                also hopes to be able to exploit        and partners, he noted that it would     operators to offer fixed and mobile        supported the launch of Orange
Paul Rasmussen, Anne Morris, Joanne Taaffe,                                                          make it easier for Orange to bring in    services, while also allowing Telecom      Klif, the Mozilla OS-based
Joseph Waring, Ken Wieland                                   future        opportunities   for       new shareholders or enter into           Egypt to launch an MVNO.                   smartphone launched at Mobile
                                                                                                     mergers in the region.                                                              Congress this week that also
ALL ADVERTISING ENQUIRIES TO:                                consolidation in the region.                                                       However, Rennard is not                  includes a bundle of voice, texts
showdailysales@mobileworldcongress.com                                                                 Rennard pointed out that Africa,       convinced that the market can              and data for around $40.
                                                             The France-based operator is in         for example, has around 800 million      support four players, even if one of
PUBLISHER:                                                                                           mobile subscribers but 200               them is an MVNO.                             The smartphone will be launched
Rick Costello                                                the process of placing all of its 20    operators; in China, one operator -                                                 in different MEA markets in the
                                                                                                     China Mobile - accounts for about          As well as its organisational            coming weeks, and Rennard said he
PRODUCTION MANAGER:                                          units in MEA under one holding          that many customers. “There is           changes, Orange has also                   is already seeing positive signals
Samantha Burke                                                                                       room for consolidation in Africa,”       developed a strong smartphone              from local managers.
                                                             company, replacing the multiple         he said, adding that Orange’s focus      sales strategy in MEA - although it’s
ART DIRECTION & PRODUCTION:                                                                          is on building up its position in its    clear that Rennard was not initially         While he believes that Orange
Russell Smith, IntuitiveDesign UK Ltd.,                      holding companies that currently        existing markets.                        keen on that approach because he           has proved its smartphone sales
13 North St, Tolleshunt D’Arcy, Maldon,                                                                                                       did not believe that Orange was in         strategy is a good one, it remains to
Essex CM9 8TF, UK,                                           exist and thereby creating a simpler                                             the business of selling devices.           be seen if the Orange Klif strategy
email: russell@intuitive-design.co.uk                                                                                                                                                    will also be a success.
                                                             and clearer management structure.
PRINTED BY:
Servicios Gráficas Giesa, Barcelona                          According to Marc Rennard, EVP

                                                             for Africa, the Middle East and Asia,

                                                             the process should be completed by

                                                             June this year, by which time the

Whilst care has been taken to ensure that the data in        BBVA sees                               system that dates back to the 60         Xiaomi:                                    cent of gross margins. That’s a
this publication is accurate, the publisher cannot           Apple, Samsung                          and 70s; what moderator David            Freshness                                  fortune relative to the margins we
accept and hereby disclaims any liability to any party       as threats –                            Kirkpatrick termed a “spaghetti          of brand key                               look at,” he said.
to loss or damage caused by errors or omissions              and likes it                            platform” which still underpins the      to our
resulting from negligence, accident or any other                                                     kind of batch processing associated      success                                       “We have very few products – just
cause. All rights reserved . No part of this publication     By Richard Handford                     with old-school banking.                                                            two smartphones per year -- which
may be reproduced, stored in any retrieval system or                                                                                          By Joseph Waring                           gives us greater economies of scale
transmitted in any form electronic, mechanical,              Spain’s BBVA is a bank that no            Gonzalez wants to shake up that                                                   at the production level and the
photocopying or otherwise without the prior                         longer wants to behave like      model – and is staking the bank’s        Xiaomi’s global VP Hugo                    ability to keep costs down.”
permission of the publisher.                                        one and, according to CEO        resources on pulling it off. BBVA’s               Barra claims the company’s
                                                             Francisco Gonzalez, is happy to live    cloud-based wallet app has 450                    fresh brand will give it an          Its weekly beta software updates,
                     A GSMA Publication                      with rivals moving onto its patch.      people working on it. So far, it’s only  edge over better known rivals as it        based on input from its large beta
                     All content © GSMA Ltd. 2007-2015. All                                          available in Spain but Mexico, the US    moves into new markets.                    community, is something he said
                     rights reserved.                           Earlier this week at Mobile World    and Latin America are set to follow.                                                that “best defines us” and shows
                                                             Congress, Samsung announced its                                                    “It’s one thing to have a well-          the company’s commitment to
In an effort to minimise the environmental impact of         plan to launch a new mobile               And that’s just the starting point in  known brand, but it’s another thing        continually improving the customer
our event, the GSMA promotes the usage of recycled           payment service, as the South           terms of how the bank’s resources        to have a brand everyone is tired of,      experience.
materials and waste reduction wherever possible.             Korean vendor takes on Apple Pay        are likely to be heading over the next   especially when targeting the early
Building on this commitment, we are now pursuing             (which launched at the end of 2014).    few years. Currently just 3,000 of its   adopters,” he said.                          It has built up a beta track of 10
official Carbon Neutral certification of Mobile World                                                110,000 staff work on the digital                                                   per cent of its over 100 million user
Congress under the international standard PAS 2060.             But Gonzalez is sanguine about       side but in five years Gonzalez            Barra, speaking Tuesday on a             base worldwide, most of which use
                                                             the competition. “There is a threat     reckons it will be a majority.           panel discussion on content at             its devices. Every Friday it pushes out
  NEWS IN BRIEF...                                           element which I like because                                                     Mobile World Congress, noted that          software updates. He said it takes a
                                                             banking needs competitors. We              Gonzalez added that about 1.2         Xiaomi doesn’t spend on above-the-         few weeks for a change to move from
  Globe to deploy                                            need to be more efficient but we        billion people around the world have     line or below-the-line advertising         the beta to the “stable” track.
  Huawei’s SingleSON                                         can also collaborate with them.”        bank accounts, a figure that is          and goes direct to customers as
                                                                                                     limited because banking is “very         much as possible.                            He said Xiaomi does something
   Globe Telecom announced it                                   BBVA is already adjusting its own    expensive” he says. BBVA reckons                                                    similar with its hardware updates.
   has contracted Huawei to                                  approach as consumers move to           another one or two billion might be        “We generally don’t spend any
   optimise its wireless network                             mobile and digital payments. Last year  interested but not the traditional       money on buying media. All of our            With the absence of Apple and
   performance using the                                     it bought US banking startup Simple     route. More likely, they will access     conversations are via social media         Google in the app store space in
   vendor’s SingleSON (self-                                 for $117 million and is also working    their account through a mobile           and is pretty much organic. We also        China, it has had some success in the
   organising network). The two                              with online payments firm Dwolla.       phone.                                   avoid intermediaries as much as            mainland. It is ranked about number
   companies formalised an                                                                                                                    possible, which can be up to 30 per        three. “It’s the Wild West there
   operation and maintenance                                    But the Spanish bank, like all its      Gonzalez was speaking during                                                     because there is no App Store or
   (O&M) agreement in Barcelona                              peers, is stuck with a legacy IT        the keynote session on digital                                                      Google Play, but we have no plans to
   this week. Globe recently tested                                                                  transactions and social interactions                                                take that outside of China, because
   the technology on 20,000 2G,                                                                      yesterday morning.                                                                  we’re working with Google as a
   3G and 4G cells sites.                                                                                                                                                                Google Mobile Services partner.”
                                                             By Joanne Taaffe                        Tele2 still open to making
  Modular VRAN                                                                                       acquisitions, sees fewer                                                              Tele2 is retrenching to better
  outstrips the Cloud                                        Tele2 knows a thing or two              opportunities for MVNOs                                                             focus on providing profitable data
                                                                     about buying and divesting                                                                                          services across its own networks.
   Matrix, a new modular VRAN
   from Dali Wireless, claims to                                     international        telecom                                                                                          “Operators need to mentally
   outperform cloud-based RAN                                                                                                                                                            accept voice is free and gear up to
   by allowing operators to                                  operations. In January it reduced                                                                                           be successful in a data only world,”
   optimise the use of their                                                                                                                                                             said Granryd.
   existing network resources,                               the number of countries in which it
   including spectrum. The                                                                                                                                                                 The shift to charging for data is
   flexibility and scalability of                            operates to nine, from a peak of 24,    countries, we will do that,” said        interesting -- even though there are       closing MVNO opportunities,
   Matrix means operators no                                                                         Mats Granryd, CEO of Tele2,              political challenges. There are            believes Granryd.
   longer need to overhaul their                             when the Norwegian Competition          speaking on Tuesday in a session         plenty of opportunities, but we
   existing networks to meet                                                                         entitled Enabling M&A for Industry       have so far been reluctant,” said            “We are not in favour of MVNOs.
   current and future                                        Authority (NCA) approved the sale       Growth.                                  Granryd.                                   We believe we should own our own
   technology trends.                                                                                                                                                                    network. I don’t …. see OTT or
                                                             of its operations in the country to       But we “never have the ambition          Asked about the acquisition              fixed players obtaining very
                                                                                                     to be a 24 country player again.”        strategies of large companies such         lucrative MVNO agreements with
                                                             TeliaSonera.                                                                     as Altice, Granryd advised caution.        us. Those days are gone. We are
                                                                                                       Central Asia, where Tele2 already                                                 very mindful of protecting data
                                                             Despite having over-expanded in         operates in Kazakhstan, could              “Big operators buying up whatever        consumption.”
                                                                                                     present opportunities.                   they can are rarely a success case. It
                                                             the past, the company does not rule                                              bites them in the behind later.”
                                                                                                       “The ‘stans on the whole are very
                                                             out future acquisitions.

                                                             “We are clearly looking for

                                                             distressed assets. If we can find the

                                                             [right opportunity], within specific

PAGE 6 Thursday 5th March                                                                            MOBILE WORLD CONGRESS DAILY 2015 | www.mobileworldcongress.com
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