Posts Tagged ‘Telco’

The big update: Telco networks in Queensland

January 17th, 2011

Telecommunication companies are currently struggling to restore their services in flooded Queensland territory, as access to damaged exchange sites is still denied and power outages prevent networks from operating.

Telecommunication companies are currently struggling to restore their services in flooded Queensland territory, as access to damaged exchange sites is still denied and power outages prevent networks from operating.

Back-up power generators, portable exchanges, cells on wheels and even an “army” of Telstra employees are all waiting for waters to recede in order to be deployed and restore services; while thousands of citizens are waiting for communication to be re-established.

Electricity provider Energex has estimated more than a hundred thousand customers have been affected by outages, spread across the Brisbane Valley, Lockyer Valley, Caboolture, Gold Coast, Sunshine Coast, Logan, Fassifern Valley and Ipswich. Outages are believed to be due in part to damage and in part to the provider’s choice to disconnect areas at risk.

Telstra maintains power and access to its damaged infrastructures are vital to restore its services. As of this afternoon, the telco has not managed yet to get to most of its affected exchange sites and needs to wait for waters to recede.

A document leaked this morning shows the telco has been unable to reach some 260 of its exchange sites due to flood waters. Furthermore — according to Telstra’s official updated report today — new sites in the greater Brisbane and Ipswich areas had lost power either from damage or from the power company disconnecting the areas for safety reasons; access to those sites is still denied.

“We have portable exchanges and Cells on Wheels, which are transportable mobile base stations, that we will use where possible to have services up and running quicker,” Telstra said in its statement.

However, the telco said power had been restored to some regional areas overnight and, as waters recede, efforts will be concentrated on repairs in the Brisbane Valley, Lockyer Valley, Ipswich and Gympie/Pomona areas, where mobile towers have been affected. One of the Cells on Wheels will be allocated to the Lockyer Valley, as soon as access becomes possible.

Furthermore, exchanges around Brisbane — Charlotte, Edison and Woolloongabba — have been manned to re-establish communication for emergency services. According to the telco’s bulletin, some extra staff, 130 Telstra employees, are ready to be sent where needed to help local teams, whenever waters permit.

“We are experiencing fault volumes at four times their normal level, so there will be delays in restoring services and we ask our customers to be patient during this time,” the company said.

Source:-http://www.itwire.com/it-industry-news/strategy/44351-the-big-update-telco-networks-in-queensland

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Telco, banking units drag down Ayala group results

May 15th, 2010

AYALA Corp. shares fell on Friday as the 175-year-old conglomerate reported a year-on-year drop in its first-quarter profit, dragged down by declines in the contribution of its telecom and banking units.

In a disclosure to the Philippine Stock Exchange, AC said its consolidated net income in the first quarter reached P2.1 billion, down 4.7 percent from P2.2 billion in the same period last year.

Its shares fell to P322.50 on Friday from P327.50 previously.

Equity earnings from the conglomerate’s business units rose by 6 percent, driven by higher profit contributions of Ayala Land Inc. (ALI) and AC Capital.

“We are pleased with the trend in earnings performance of the business units, particularly in comparison to the past three quarters. The continued and steady improvement reflects the sustained recovery in the domestic market. We remain confident this trend will continue to improve moving forward in step with the economy and the improving pace of domestic consumption,” Jaime Augusto Zobel de Ayala, AC chairman and chief executive, said.

Record sales and bookings from recently launched residential projects pushed ALI’s first-quarter net income by 32 percent to P1.2 billion. Its leasing portfolio also performed steadily with occupancy rate in malls rising to 94 percent and occupied business process outsourcing (BPO) office leasable area expanding by 59 percent.

But Globe Telecom’s earnings fell 26 percent to P2.9 billion, as revenues dropped 10 percent year-on-year and by 3 percent quarter-on-quarter because of intense competition and price pressures.

Bank of the Philippine Islands also suffered an income contraction of 5 percent to P2.7 billion. The bank’s revenues were steady at P9 billion, but net interest spreads narrowed by 54-basis points while trading profits weakened.

All companies under AC Capital–Manila Water Co., Integrated Micro-Electronic Inc., and Ayala Automotive–posted substantial growth and contributed to the turnaround, while AG Holdings and LiveIt recorded lower losses during the period.

Earnings of Manila Water rose by 35 percent to P839 million following its continued growth within its concession areas, as well as in other areas in the Philippines.

A recovery in the global electronics sector allowed IMI to post earnings of $3.2 million, reversing losses in the same period last year.

Ayala’s automotive dealerships rose by 9 percent in unit sales, reflecting the country’s vibrant domestic consumption. This pushed dealership income to surge by 124 percent as a result of higher vehicle sales, better service income, and improved income from collateral businesses.

The consolidated net loss of P279 million incurred by BPO investment firm LiveIt improved from last year’s P306 million.

Source:http://www.istockanalyst.com/article/viewiStockNews/articleid/4124438

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Telco price wars hit BPO margins

March 6th, 2010

The plethora of new pricing schemes from telecom companies, like ‘one paisa per second’ billing, has squeezed the margins of their business process outsourcing (BPO) partners.

Telcos typically outsource work on customer service (voice) and some back-office operations. BPOs get 70 per cent of their revenue from voice alone. However, Indian telcos are witnessing a dip in volumes and calls due to the pricing and other wars for customer share in an already crowded market. Telcos are now asking their BPO partners for price reductions of 9-15 per cent to protect their own margins.

Since the revenue model of BPOs is subscriber or call-linked (the more calls they take in a day, the higher their revenue), a fall in these impacts their bottom line. Hinduja Group’s BPO arm, Hinduja Global Solutions, is a case. Its net profit for the third quarter (October-December 2009) was down 20 per cent sequentially. It said one reason was the pricing war among telcos.

Firstsource reported a similar quarterly dip. Bank of America Merrill Lynch said operating margins were down three per cent more than expected due to slippage in Indian operations.

Analysts say the dips in calls are because of the way schemes are structured. For instance, many firms provide a SIM card free or allow you to create a special group for low talk-time. A majority of users have at least two to three SIM cards. “Callers just use those SIMs for a particular service. That, in turn, impacts the volumes.”

The variation in this regard can be very high, with the number varying between 30 and 300, says a source from a leading listed BPO firm. And, the ‘per second’ call rates are directly impacting the average revenue per user (ARPUs) of telecom companies. “We have seen telcos retendering business with existing service providers to get better price points,” says Milind Godbole, President, Asia Pacific, Aditya Birla Minacs.

“The cost of service two years back was Rs 2.9 to 3.2 per connect minute (cm). In 2008-09, it came down to Rs 2.2 to 2.7 per cm and today the rates being quoted are Rs 1.5 to 1.7 per cm,” said a source.

BPO firms are, therefore, changing their delivery models. Hinduja Global Solutions and Aditya Birla Minacs are moving to tier-3 and tier-4 cities. ABM’s Godbole says their strategy works on a hub-and-spoke distributed delivery model. “The hub, located out of a Tier-2 city, has 800-1,000 seats and handles 20-25 per cent of volumes across various telcos. The rest of the volume is distributed among the six to seven spokes, the seat capacity in each around 200.”

He says these spokes are in rural areas, so it takes care of issues like attrition, wage inflation and real-estate costs. Partha Sarkar, CEO Hinduja Global Solutions, also feels moving to smaller cities is the only way. “We are reducing volume from tier-1 cities and increasing these from tier-3. This immediately acts as a cost advantage and helps maintain our margins. We are also trying to see if we can consolidate common language capabilities like English and Hindi.”

Source:http://www.business-standard.com/india/news/telco-price-wars-hit-bpo-margins/387691/

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