BroadForward Enables MVNO to Upgrade to LTE with Old Generation HLR

BroadForward announced that Voiceworks [MVNO, Netherlands] has "extended the use of the BFX Interface Gateway to support integration with KPN’s 4G network. Like for Voiceworks and hundreds of other operators and MVNO’s worldwide, it used to be impossible to connect to 4G/LTE networks with existing, older generation HLR’s (pre 3GPP release 8). This limitation is now removed with the latest release of BFX, facilitating connectivity with LTE networks for various generations of HLR’s.

Working in close cooperation with Voiceworks, BroadForward has developed a unique solution to address this limitation, provided as an on-board function of the BFX product. Now service providers with older generation HLR’s can establish LTE connectivity with a cost-effective and independent solution. This offers providers the opportunity to avoid the usual route of upgrading their HLR, often involving high cost, risky projects and vendor lock-in".

See "Voiceworks launches 4G service with unique interworking solution from BroadForward" - here.

How Do 3, KPN, Swisscom, T-Mobile, A1, EE, TeliaSonera and Orange Pack LTE?

A new presentation by Openet reviews the how leading MNOs are "leverage the speed that LTE brings to create value for customers and generate more revenue".

KPN Belgium Enables Differentiated Services with ZTE

 
ZTE Corporation announced that "... KPN Group Belgium .. will deploy ZTE’s packet switched CN equipment which supports unified radio access .. ZTE helps operators to build a smart pipe that supports service differentiation and traffic distribution, and enables a flexible policy mechanism. This will help KPN deliver differentiated services, further enhancing its service innovation capability and network competitive strength".

At the end of Q2 2012, KPN Belgium had 4.4M subscribers and ~19% market share (see chart).

See "ZTE Partners with KPN Group Belgium to Deploy Packet Switched Core Network" - here.

Netherlands: Net Neutrality/DPI Restrictions Law Approved

   

Door Ot van Daalen reprots to Bits of Freedom (Dutch site) that "On 8 May 2012 The Netherlands adopted crucial legislation to safeguard an open and secure internet in The Netherlands. It is the first country in Europe to implement net neutrality in the law .. The net neutrality law prohibits internet providers from interfering with the traffic of their users. The law allows for traffic management in case of congestion and for network security, as long as these measures serve the interests of the internet user. A technical error in the law might still be corrected in a vote on 15 May".

"In addition, the law includes an anti-wiretapping provision, restricting internetproviders from using invasive wiretapping technologies, such as deep packet inspection (DPI). They may only do so under limited circumstances, or with explicit consent of the user, which the user may withdraw at any time".

This is a relatively quick reaction to the attempt of KPN to surcharge customers for using competitive voice and messaging applications (here).

See "Netherlands first country in Europe with net neutrality" - here. See also "Translations of key Dutch internet freedom provisions" - here.

Study: Majority of MNOs Worried of Revenues Decline due to OTT Applications

 

Mavenir Systems published the findings of an independent study, carried out by mobile^SQUARED, checking the impact of OTT chat and voice over IP applications such as Skype, iMessage, Facebook Message, Google Talk and WhatsApp on traditional operator-based SMS and voice services.

The study, based on interviews with 31 global mobile operators, found that ".. one third of operators already see traffic and revenue decline and three-quarters of operators are worried about losing revenues to this new group of mobile application providers .. The largest single group, 32.3 per cent of respondents thought operator traffic (from messaging, voice and video calling) would decline between 11 and 20 per cent and a further 20 per cent expected a decline of 31 to 40 per cent over the next 5-10 year period .. 42 per cent of operators say that they will roll-out IP Multimedia Subsystem (IMS) based services to offer RCSe and VoLTE, while 45 per cent of operators think that other similar technologies would enable a quicker route to market" 

When KPN tried to compensate itself for the reduced revenues lately (see "KPN [Uses DPI] to Charge Extra for VoIP, Messaging and Streaming Video" - here) it led the Netherlands to be the first European country with a Net Neutrality law (here).

Gavin Patterson (pictured), chief markets analyst & head of data at mobile^SQUARED, said: “The mobile landscape is changing as users embrace messaging of all kinds that enable them to seamlessly message a multitude of devices. This study confirms that lucrative messaging revenues are already impacted and operators are assessing ways to deliver core-network services in the all-IP environment. Rich Communication Ecosystem (RCE) applications are one example of how mobile operators can overcome the hurdles they face.”

See "Study on The Threat to Mobile Operators’ Voice and Messaging Revenues" - here.

Net Neutrality Follows KPN to Belgium

   
Jan Libbenga  reports to The Register that ".. Three political parties have joined forces to launch a proposed law (see below), which they hope will be approved early next year. If accepted, all internet traffic in Belgium needs to be treated equally, regardless of its type, with one exception: ISPs are still allowed to block heavy traffic from p2p or video services to avoid quality deterioration, as well as heavy-duty traffic from botnets. Charging for rival messaging, or VoIP services, is strictly forbidden. IPTV services through DSL or fibre will not be part of the proposal .. Belgian ISPs, including KPN's Base, are not happy with the proposed laws. They want to introduce low latency internet services for gamers and believe e-health services should be given priority. Under the proposal, these services wouldn't be acceptable".

It is a matter of life, death and gaming, as you can see.

See "Belgians aim to be third neutral-net nation" - here (First two are Chile and Netherlands).

"KPN has decided not to block any services or to set separate rates for different services"

 

After trying to impose a surcharge for the use certain mobile applications (here) and got in return the first European Net Neutrality law (here), KPN announced new mobile service plans.

"On September 5, KPN will introduce new mobile propositions for consumers in the Netherlands under its KPN and Hi brands. The propositions are based on the use of mobile data; they have a wider selection of data bundles and thereby respond to the latest trends in the Dutch telecom market .. The introduction of the new propositions means that .. Mobile data will become more expensive within the bundle .. KPN has decided not to block any services or to set separate rates for different services. The propositions comply with the forthcoming new Dutch legislation and are net neutral .. the consumer will pay more for a new smartphone because these devices are becoming increasingly expensive".

See "New Dutch mobile propositions KPN and Hi" - here.

Netherlands Mobile Operators Abuse Privacy with DPI?

 

The story of DPI use in Netherlands by mobile operators is not over. No wonder why operators deploying DPI still want to stay anonymous.

What started as the intention of KPN to surcharge the use of certain data applications (here) using a DPI based system, and quickly turned the Netherlands to be the first European country adopting a Net Neutrality law (here), has taken a new angle.

OPTA, the local communications regulator, says that (I hope I am translating correctly)  "In Mid-2011 it was told that some mobile network providers employ techniques for deep analysis of data packets over their mobile network. These techniques, which are usually referred to as Deep Packet Inspection (DPI), could infringe on the privacy of users of these networks". 

"OPTA has decided to do a "quick scan" among the four largest mobile network operators: KPN, Vodafone, T-Mobile and Tele2  .. OPTA found no evidence that the investigated operators read their subscribers emails, photos or contributions to social networks .. However, OPTA found that the four operators are aware of more information than the information intended for handling of traffic. .. It is possible the confidentiality of communications is at stake"

See "Voorlopige bevindingen OPTA over gebruik Deep Packet Inspection" - here.

Nice try, KPN - Netherlands First European Country to Adopt Net Neutrality

  

This was quick. Only two months after KPN announced it will surcharge the use of certain data application competing with its voice, SMS and video services (here) it became illegal to do so.

 

Brian O'Brien reports to the New York Times: "The Netherlands on Wednesday became the first country in Europe, and only the second in the world, to enshrine the concept of network neutrality into national law by banning its mobile telephone operators from blocking or charging consumers extra for using Internet-based communications services like Skype or WhatsApp, a free text service.

The measure, which was adopted with a broad majority in the lower house of the Dutch Parliament, the Tweede Kamer, will prevent KPN, the Dutch telecommunications market leader, and the Dutch units of Vodafone and T-Mobile, from blocking or charging for Internet services. Its sponsors said that the measure would pass a pro-forma review in the Dutch Senate without hitches".

See "Dutch Lawmakers Adopt Net Neutrality Law" - here.

Did KPN Go too Far? The Dutch Government Thinks it did

  

After KPN (and other operators in the Netherlands) announced its plans to surcharge the use of certain mobile applications such as Skype or Whatsup (here), the Dutch Minister of Economic Affairs, Agriculture and Innovation Maxime Verhagen announced that the "Dutch telecom law will be amended to ensure free access to the internet"

See "Garantie vrij internet in telecomwet" - here.

"Some providers of mobile internet had announced a levy for certain services. This is because of the necessary investments in the network and the declining of voice and SMS traffic. Minister Verhagen is not against charging by speed of the data traffic, but charging on certain services such as Skype or WhatsApp, however, go too far   .in few week the telecom law will be amended, to ensure Net Neutrality and ensue consumers that specific internet services will not be blocked or subject for extra charge".

FCC Net Neutrality doesn't Allow Application Surcharge

 
Recently we have seen several initiatives by mobile operators to impose usage fees for the use of certain applications, mainly those competing with their core services (VoIP, messaging and video streaming). See the case of KPN (here), TeliaSonera (here) and a recent win by Allot (here).

While US mobile services were exempted from some of the FCC suggested Net Neutrality rules (here), Karl Bode reports to DSLReports.com that Mark Wigfield, media relations for the FCC said that "Our rules do prohibit this kind of behavior ..See paragraph 99*, which pertains to mobile, and prohibits blocking applications that compete with the providers primary service offering -- voice and video telephony -- and you can make a strong case that text also competes with voice and so blocking SMS applications would be barred .. Also, paragraph 67** prohibits charging a fee in order to block"

See "FCC Tells Us Their Neutrality Rules Prevent Pay-Per App But ISPs Will Simply Argue They're Pricing Creatively..." - here.

See also:

• FCC: VoIP Replaces Regular Phone Service with Annual Growth of 21% - here
• FCC: We Need "Apps" to Monitor Naughty Service Providers - here
• FCC: Usage-Based Pricing is Important - here 

 *Paragraph 99:



Source: Allot Communications

 A person engaged in the provision of mobile broadband Internet access service, insofar as such person is so engaged, shall not block consumers from accessing lawful websites, subject to reasonable network management; nor shall such person block applications that compete with the provider’s voice or video telephony services, subject to reasonable network management.

**Paragraph 67:

67. Some concerns have been expressed that broadband providers may seek to charge edge providers simply for delivering traffic to or carrying traffic from the broadband provider’s end-user customers. To the extent that a content, application, or service provider could avoid being blocked only by paying a fee, charging such a fee would not be permissible under these rules.

Allot's Intelligent Charging Solution to be Implemented in 9 Countries

  

Allot announced a new product, Allot ChargeSmart, and said it ".. has been selected by a multinational mobile operator .. and will be deployed in nine countries, serving approximately 30 million subscribers.  Allot’s intelligent charging solution is unique in its ability to accurately identify OTT (over-the-top) applications in high speed networks.  .. One of the implementations of ChargeSmart for post-paid subscribers is a Social Networking Plan that makes applications such as Facebook, MySpace & Twitter ‘toll-free’, whilst all other application traffic is counted against the monthly quota .. Using ChargeSmart to meter usage in real time, the operator notifies the subscriber when their usage approaches the quota limit and redirects them to a portal where the subscriber can top-up volume, if desired".

See "Allot’s Intelligent Charging Solution Selected by Multinational Mobile Operator to Deploy New Pricing Models" - here.

Recently, KPN announced a plan to change its mobile data charging model in a similar way - see "KPN [Uses DPI] to Charge Extra for VoIP, Messaging and Streaming Video" - here.  Allot and Openet presented  a joint PCEF/PCRF solution for smart charging - see "Allot - Openet: Monetizing and Controlling OTT Applications Use Cases" - here.

[Update] KPN [Uses DPI] to Charge Extra for VoIP, Messaging and Streaming Video

  

An update to the previous post (here): the Dutch paper De Telegraff reports that KPN admitted it is using DPI to implement the new charge by application service.

See "KPN weerspreekt verwijt afluisteren" - "KPN denies eavesdropping allegation" ( here, Dutch).

According to the article, the operator said that it is using DPI only to identify the use of certain applications, such as WhatsApp, but does not eavesdrop to the subscriber content. The new charging model will be implemented in the summer.

".. KPN does not review the contents of messages. KPN is currently investigating whether any rules regarding the retention of data analysis are respected' says the group"

KPN to Charge Extra for VoIP, Messaging and Streaming Video

      

KPN announced that its  "[Q1] Consumer wireless revenues lower than expected following accelerated change in customer behavior .. KPN is making significant wireless portfolio adjustments in the Netherlands to address SMS and voice substitution by moving from voice to data-centric portfolios to optimize the value per customer .. To further lower the cost base in the Netherlands, a new reduction program of 4,000 - 5,000 FTE, around 20 - 25% of the workforce in the Netherlands" - see "2011 EBITDA outlook adjusted downwards, free cash flow confirmed" - here and chart below.

KNP CEO, Eelco Blok (picture), said "To make our Dutch businesses more robust I have decided to accelerate the investments related to the new strategy. I’m confident that we are taking all necessary measures to strengthen and grow our businesses and I will share my detailed KPN Group plans during the 10 May Investor Day"

However, we do not have to wait till then. KPN's spokesperson, Steve Hufton (picture), explained to Arnoud Wokke from the Dutch site tweakers.net what are these "wireless portfolio adjustments" going to be: "Services such as browsing, VoIP, instant messaging and video viewing will get its own price tag, just as is the case with calling and texting .. We will allow everyone to take the services they intend to use and what they want to pay"

See "KPN: 'chatheffing' voor mobiel internet komt deze zomer - update" - here (Dutch; the above quote is a Google translation).