ITU Telecom World 2006: Global Networking Platform

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Voice&Data Bureau
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ITU Telecom World is a global networking platform for the ICT
industry and it was here that the newly merged Alcatel-Lucent Technologies chose
to unveil its new brand identity and mission. A lot many partnerships were
formed and announced during the event. Microsoft and BT announced a deal to
provide IPTV services in the UK; and a pan Asian mobile TV consortium was
hatched between SK Telecom, Toshiba, Global Media Networks, and International
Mobile Broadcasting to provide the first mobile TV roaming service in Asia.
Global research specialists, Yankee Group and Analysys International launched
partnership to offer research that puts the China market in the global scenario.
In addition, Aperto Networks formed a WiSE partnership of 50 companies to drive
WiMAX interoperability.

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It was for the first time that ITU Telecom World was held
outside Palexpo, Geneva in Asia World Expo, Hong Kong. This was in response to
demand from ITU members and in recognition of Asia's role in fuelling ICT
growth.

Hosted by the government of the People's Republic of China,
and organized by ITU, the Telecom World 2006 stood out as a premiere
international ICT and networking event of the year. The theme for this year was
"Living the Digital World" and the focus was on exploring current and
future lifestyles and how are they shaping ICT.

Officials hit the button to
mark the launch of ITU TELECOM WORLD 2006. From left to right are HKSAR
Donald Tsang, China's NPC chairman Wu Bangguo, ITU secretary-general
Yoshio Utsumi and Nobel Peace Laureate Muhammad Yunus

The audience during the Forum
opening

China Unicom stand

A snapshot at the Samsung
stand

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The event started with a glittering opening ceremony on 3rd
December in the presence of His Excellency Wu Bangguo, chairman of the standing
committee of the National People's Congress of the People's Republic of
China; Donald Tsang, chief executive, Hong Kong Special Administrative Region;
Yoshio Utsumi, secretary general, ITU; along with Nobel laureate Professor
Muhammed Yunus, founder and MD, Grameen Bank; and a host of other top ICT people
from across the world.

Speaking at the inauguration, Yoshio Utsumi, secretary general,
ITU used the occasion to urge participants at World 2006 to "take up the
collective challenge, not only of growing our vibrant and exciting ICT sector,
but also of working together to extend their benefits to millions of people
currently left behind."

'In developing countries,
the focus is more on bridging the digital divide'

                   Â
-Dr Hamadoun Touré, secretary general
elect, ITU

What are
your priorities for the next four years?

We have short-term as well as
long-term goals but there are two main goals. First, bridging the digital
divide and achieving millennium development goals as laid out by WSIS;
second, is security in cyberspace.

We have broken
international treaty to make the world a better place and also prevent
potential cyber terrorism catastrophe that is damaging the whole world.
This can be done only through ITU as we have the credibility in terms of
development. In ITU, all partners' collaborative involvement is the key
to success both in telecom as well as ICT. ITU as an organization has not
been politicized and there are no different ideologies, which are
advantages for ITU to resolve issues.

What are
your priorities for developing economies?

In developing countries, the
focus is more on bridging the digital divide. Being accepted by all
concerned parties, public as well as private, I will look at active
private sector involvement and achieve the task for which I have been
hired in ITU.

What are
the targets for millennium development goals?

The millennium development goals
target is to connect one half of the world population through ICT by 2015.
Focus is also on providing Internet access in every school and villages
across the world. We have tied up with Grameen Bank to combine the power
of ICTs with microcredit financing to connect the world. And for this,
Cisco is planning to invest $1 mn for microcredit finance scheme. I expect
lot of private sector involvement for this project.

We have to work in two
main areas. First, creating a level playing field in the regulatory
environment, and here we need more investment from private sector and
competitors. Second, is in the area of capacity building and creating
center of excellence in ITU that needs to be expanded. All these
experiences would be helpful for India and China.

Three years
down the line, what do you expect in ITU Telecom World 2009 in Geneva?


Technology is evolving and it is becoming more and wireless. Even
software development is making it easier on the access front and will help
in bridging the digital divide. In future, there will be more usage of
speech recognition and it will evolve over next few years to a point where
you need not read or write to access ICT.

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During his opening remarks, Professor Yunus outlined his plans
for a new dynamic partnership between Grameen and ITU, together with Cisco
Systems, Qualcomm and a newly formed consortium, Enclusion to form a virtual,
global ICT Empowerment Network. In a separate announcement, Cisco Systems
announced a pledge of $1 mn to support ICT related micro-financing initiatives
within this empowerment network.

To help make this initiative a success, Grameen will reach out
to more than 3,000 microfinance organizations and 100 mn borrowers worldwide,
while ITU will provide support to its 191 member states and some 650 private
sector members from across the world.

Despite, the event being held outside Palexpo, the event was a
great success as Hong Kong achieved a record number of exhibitors and
participants from across the world. The Telecom World had 695 exhibitors from 37
countries and 61,958 participants from 141 countries. Hong Kong benefited a lot
from the event as over 230 Chinese companies participated in the expo. For the
first time, the Telecom World had product pavilions like Internet pavilion, GPON
pavilion and WiMax pavilion. Apart from this, the expo also had country
pavilions like Belgium, Canada, Egypt, Holland, Finland, France, Germany, Hong
Kong, Iran, Israel, Japan, Korea, Macao, Russia, Singapore, South Africa, Spain,
the UK and USA.

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'In 2007, we expect to
sell around 25 mn handsets globally of which 10 mn will be sold in India'

     -He
Shiyou, president, Handset Division and Sr VP, ZTE Corporation

What's
your handset strategy?



From 1998, ZTE has been manufacturing handsets and is presently a
well-known brand. We have a complete portfolio of handsets both on 2G as
well as on 3G spaces. On the technology front, we cater to GSM, CDMA, PHS,
and TD-SCDMA. When we started in 1998, we were strong in communication
systems and started our global expansion in 2004. Presently, we have our
presence in 50 countries. Earlier to 2004, we were focusing only on China
and utilized our handset experience and understood the requirements of
different handset segment categories for different markets.

Basically, we are
focusing on two markets-developed and developing. In developed, we are
looking at Western Europe and North American market whereas in developing
market we are looking at India, Pakistan, Latin America, and African
countries. For developing market, the focus is on multimedia handsets,
Mobile TV and HSDPA whereas for developing market we are looking at basic
voice and SMS.

How would
you rate India vis-à-vis other markets? What's your strategy for the
Indian market?


India is a very important market for ZTE. There is a huge potential for
local companies to contribute to the Indian economy. Since 2005 and till
date, we have sold more than 5 mn handsets in India. Our next strategy is
to bring more products and technologies, localize manufacturing and
R&D facility. By serving Indian market we can contribute to other
developing market also. India, China and developing economy are the
foundation triangle for our growth. So our focus will be investing more in
R&D and services, thus continue to grow the market.

We started our GSM
expansion in 2006. We visualize that there is a huge growth in Indian GSM
market and plans are to replicate CDMA success in GSM. For CDMA, we are
focusing on US, Canada, and Mexico whereas for GSM we are looking at
India, Africa, and Latin American markets.

In 2007, we expect to
sell around 25 mn handsets globally of which 10 mn will be sold in India.
On the technology front, GSM will contribute around 40% whereas CDMA will
contribute around 60% for the India market.

Are you
planning to change your distribution strategy in 2007?


In China, we used to sell through distributors but in 2007 we are changing
our strategy to sell more handsets through operators.

When are you
planning to close the mega order with Reliance Communications for GSM
infrastructure?


So far there is no official announcement. Presently, if something happens
we will put it on our website.

What's
happening on the BSNL 70 mn tender?


As you know operators have own right to make decision and there are many
factors affecting their decisions. From supplier's point of view, ZTE is
involved in negotiation and participation in this kind of project and we
make sure to always do our best.

How are you
planning to move ahead on the FIPB front for setting up a manufacturing
base in India?


As you know communication system is complex and we need approval from
Indian authorities. We will move step by step so that our manufacturing
technology can be fully brought to India.

Will ZTE set
up a manufacturing base in India in 2007?


Since we have a comprehensive product line, I won't put any timeline.
For certain products, some part is manufactured in India whereas some part
is manufactured elsewhere. There is always a gradual process of bringing
manufacturing in India.

The show floor featured wide range of products and services like
mobile solution and devices, content solutions, Internet, IP communications,
fixed wireless, wireless WAN, IT systems, satellite, hardware, software,
broadband, next generation networks, enterprise solutions, consumer solutions,
components and accessories.

Web-based services and applications such as email on the move,
multi-tasking or teleworking and a full range of location-based services were on
display. Focus was also on mobile broadband to mobile music and TV. Devices were
busy talking to other devices, there were robots, fridges that can communicate,
phones talking to vending machines and others. WiMAX and an array of other
wireless technologies enabling on-the-go broadband access were also on display.

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Statistics

Exhibitors:
695
exhibitors from 37 countries, including 21 Pavilions of which four
Industry Pavilions


Exhibition Space:
41,200 m2
(including upper levels)


Registered Trade Visitors:
43,846
from 141 countries


Total Participants:
61,958 from
141 countries


Electricity Consumption:
An
estimated 350,000 KWs of electricity was consumed. This is equivalent to
the power needed to supply a city of 583,333 inhabitants


Internet Links:
63 dedicated and
477 shared Internet links was set for the expo to connect several
locations worldwide


Carpeting:
28,484 square meters
of carpeting was laid in all 11 halls

Source: ITU

The event witnessed packed show floor and had participants such
as Alcatel-Lucent Technologies, AT&T, China Mobile, China Netcom, China
Telecommunications, China Unicom, Cisco Systems, Ericsson, Fujitsu, Hitachi, HP,
Huawei, IBM, Intel, LG Electronics, Microsoft, Motorola, NEC, Nortel, OKI,
Orange, Qualcomm, Samsung, Siemens, SK telecom, Toshiba, Verizon, ZTE and more.
Notable absentees from the show floor were Nokia.

It is not surprising that in today's world, digital business
is emerging as a big business and is increasing with each passing year. The
clearest evidence for this is at the macro-economic level, where the
contribution of ICTs to the general economy has grown rapidly, regardless of
falling prices. In 2005, The ICT market was worth more than $3 tn worldwide.

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The forum at the expo provided a chance to discover how, what,
when, and why the latest ICTs are going to affect our lives. Divided into three
separate domains-digital lifestyle, digital ecosystems, and digital society-the
forum took a 360° approach of technology in every sphere. The digital
ecosystems focused on the supply side of the industry and on the development of
efficient business models whereas the digital society looked at the challenges
for stakeholders in maintaining a transparent regulatory environment to build an
information society. Hot topics included mobile, wireless, broadband,
convergence, next-generation networks, multiple play, on-demand services,
user-generated content and personalized services.

In conjunction with the Forum, ITU organized a one-day event on
"Countering Spam Cooperation Agenda". Key international and regional
organizations participated in the event to discuss greater collaborative efforts
to combat spam and related threats as presently spam contribute around 90% of
email messages.

Another interesting aspect of Telecom World was the Youth Forum
where 240 young people from 131 countries converged and developed mentor
relationships with senior members of the ICT sector-government officials,
industry executives, technology leaders, content providers and strategists.

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Alcatel-Lucent Technologies
adds bright colour to the exhibition

Chairman of China's National
People's Congress, Wu Bangguo, addresses the audience at the opening
ceremony

Nobel Peace Laureate and MD of
Grameen Bank, Prof Muhammad Yunus announces his agreement to work with ITU
at the opening ceremony

Yoshio Utsumi, secretary
general, ITU, during the opening ceremony

Innovation was certainly the buzzword in the Digital Life
Theatre (DLT), a dedicated stage where futuristic visions of the digital world
were presented. The themes explored at the DLT included mobile TV, creating a
superior customer experience, digital networking, future communication,
optimizing user experience, and creating, sharing, and distributing content. The
winners of Digital Life are Ericsson (digital life at home), Motorola (digital
life at the office), Lucent Technologies (digital Life in the media of
entertainment), and Teldata (digital life in society).

Despite stiff competition where six countries had applied to
host the world event in 2009, two withdrew their offer during the process. Among
the four finalists-Birmingham (National Exhibition Center), Dubai (Jebel Ali
Exhibition Center), Geneva (Palexpo), and Paris Nord (le Parc des Expositions)-Geneva
won the race for hosting the event. ITU has awarded World 2009 to Geneva in
recognition and acknowledgement of the positive commitments made in their offer.

Pravin Prashant
in Hong Kong

pravinp@cybermedia.co.in