Lattelecom--500 Mbps internet by end of 2009

Latvia's Lattelecom hopes to implement 500 megabit per second (Mbps) symmetical internet connections by the end of the year, using fiber-to-the home (FTTH) technology, according to CEO Juris Gulbis. Gulbis said that initially, the FTTH connections would have speeds of 100 Mbps but by end-2009 would jump to 200 and 500 Mbps.
Lattelecom has started a three year project to convert most of its current DSL network to FTTH over the next few years. Around 30 apartment buildings in a Riga suburb were the first to be connected recently with the intention to replace DSL with FTTH in all residential buildings with at least 30 units in Riga and other urban centers.
Gulbis said that HD television, including HD films on demand would be one of the services made possible by the higher connection speeds. Initially, however, FTTH will meet the bandwidth needs of households with several home computers and television sets, including HD TVs.
Lattelecom is also in the early stage of planning a software as a service plaform for home and small businesses that would be available over its high speed, so-called "Future Network".
"Our goal is the have the fastest internet in Europe," Gulbis told this blogger.
Gulbis said that the higher speed services will be offered for the same price as present internet and/or triple-play packets, starting from around LVL 20 per month (tariffs have been boosted by higher VAT from January 1)
At the same time, Lattelecom has started to market Triatel's EV-DO based wireless and mobile internet service to more the 30 000 potential customers who cannot be connected to the company's fixed internet network. The service will initially offer 3.2 Mbps download speeds and will be available in around 70 % of Latvia's territory.

What may happen in 2009

Any of my Latvian-speaking readers may recognize this as a slight re-hash of what I wrote on my Latvian-language blog. However, having woken up at an early jet-lagged (or jet-pushed, as I am "ahead" and waking at 0530 after going to bed around 2230) hour here in the US, I will share some thoughts on what may be ahead in Latvian telecoms in 2009.

The government (or whatever government is in charge) will continue to endlessly drag its feet on the privatization of Lattelecom and mobile operator LMT. With the financial markets globally in a shambles and share prices down to rock-bottom, it is unlikely that anyone will pay or get a good price for either Latvian operator. The offer made by TeliaSonera to pay over 500 million LVL for the remaining state stakes in both companies would have been the deal of the decade. The Latvian government simply blew it. On this issue, there is no direction home (as Bob Dylan put it).

Lattelecom, meanwhile, will be very busy. It has to start its DSL to FTTH conversion (offering 100 Mbps to internet subscribers, instead of the present 10 Mbps) that will replace copper with fiber over the next three years for most Lattelecom internet users. The other project it will have to start immediately is setting up a digital terrestrial television network across the country. It won a tender for this project to convert the national television broadcast system to digital by 2011(?). The company has experience putting together a program package for its IP television service (which does not have a spectacular number of users, though it is growing), but terrestrial broadcast could be something new for it.

Meanwhile, cable operator IZZI will be boosting its internet services network to deliver 100 Mbps as well. What will Baltcom do?

The mobile operators, after a winter of advertising how easy it is to have "heartfelt conversations" with you darling kitten or beary-poo (the latest marketing campaigns by Bite and LMT have this kind of stuff), may get back to some real competition. One area for re-slicing the market could be government and local government, where Tele2 has been repeatedly claiming it can cut phone costs for such organizations by up to 30%. Now that we are starting a year (0r several) of santims-pinching, it may be worth a try to check out whether Tele2 can come up with the goods.

Triatel, the CDMA and EVDO wireless internet operator, will still be looking for a buyer (this has been a low-key story for some months) but will face the same market conditions as everyone. Not a good idea to sell itself on the cheap. Oh, and I think the CDMA voice business is no big deal, it is the rural wireless internet coverage that may make this company attractive.

On wireless/mobile internet, look for everyone in the Latvian mobile space to jump to 14.4 Mbps by the end of the year, perhaps to the HSDPA on steroids of 21 Mbps (Tele2 is doing it in Sweden).  2010 or 2011 may see some attempts at LTE on the Latvian market, or what will be left after the economic ravages many people are expecting.

At last, the light is sweating (Latvian- gaismiņa svīst) here in Newton, MA, so I may get back to this topic later.  Now  a shower and some breakfast. 

Triatel: Why give it to the fish?

Triatel, the CDMA mobile and EVDO wireless internet operator, has launched a clever summer product -- maritime mobile internet. The company's engineers determined that signals from Triatel's EVDO base stations were reaching as far as 40 kilometers over the sea. The entire Gulf of Riga has coverage, it is claimed. So they are now launching internet for boaters.
The business logic is simple. Most inland base stations cover a 360 degree zone where there are potential customers everywhere. But base stations near Latvia's seashore beam a good part of their coverage out over the water, where there is no one but the fish and the occasional recreational boater. Owning a powerboat or yacht in Latvia sort of puts you in an upper income bracket, so paying around LVL 23 a month to have internet on board is not a huge expense and kinda cool.
I am waiting for the headline: Luxury cruiser hits sand bar, helmsman was surfing draugiem.lv*

*the Latvian social network with 2 million users, sort of like Facebook or Friendster.

Lattelecom & wireless broadband, HP in NYC

Once the management/staff buyout (MBO) is complete, one of Lattelecom's priorities will be to expand its broadband coverage. CEO Nils Melngailis has said as much. More than 100,000 of Lattelecom's more than 600 000 wireline customers already have DSL, and the aim is clearly to get almost everyone aboard. That includes customers beyond the reach of the present network in rural towns and outlying areas.
Another priority is to move into mobile services. In this regard, I have mentioned a number of options, with the most likely one being a virtual operator (MVNO) on the Bite network, where all paying customers are welcome. Another option would be to experiment with mobile WIMAX (something not likely to be viable until the middle of 2008). I have also mentioned that Lattelecom could forge closer ties, perhaps even buy Triatel, which runs a non-standard (for Europe) CDMA mobile phone and data network, plus an EV DO wireless broadband network (satisfactory at my country cottage 35 km outside Riga). Triatel is already cooperating with Lattelecom for installing fixed wireless telephony and landed an EU and government-financed rural broadband project.
After a bit of chatting with sources, it looks like the best fit between Lattelecom and Triatel could be in the wireless broadband space, or so some think. Triatel appears ready to be persuaded into some kind of broader, more permanent deal. The question is, how much infrastructure overlap there may be and is this not at odds with the rather strange rural wireless broadband project backed by the government? The basic idea of that project, rather than helping spread "last mile" solutions (which Triatel is) was to establish parallel wholesale infrastructure and hope that resellers would appear in the poor rural areas and have a choice of wholesalers whose internet connection they could then distribute to the rural farmsteads, huts and hovels in the forest.
Meanwhile, earlier this summer, Lattelecom announced it was buying a bunch of Alcatel point to point high capacity microwave links in order to extend its broadband reach beyond the optical and wire network. That sounds like extending infrastructure to me. Still, the last mile could be set up and sold by Triatel, especially if it was part of the Lattelecom fold. Watch these developments...:)

HP in New York

I'm off to New York on September 4 for some kind of Hewlett-Packard (HP) all day event on September 5. Piecing together some sparse e-mails from the local organizers, it will be a series of break out events on various gadgets and issues. There has not exactly been a flood of information as to what, when (and just some bios of who), but it will held at some posh hotel (the Ritz) on the Battery, far from the delights of the rest of Manhattan. Or so the month old e-mails claim. But hey, I already have my electronic ticket (in French) from HP, so thanks!
Many of the discernable events are of interest, and, hopefully, I will be able to blog and videoblog from there, both here and for my Latvian employer. I notice blogger has added a "add video"function, which means I may be able to bypass the sometime slow(to post uploads) and (therefore) dubious YouTube and the quicker alternative, blip.tv. Anyway, I will give it a test. After that, I will be off to Boston to see family and back in Latvia on September 11

Some things that should be done by Midsummer

The Latvian version of the Midsummer bachanalia, called Jāņi, is also a marker for when political and major economic activity take a break for the summer, just as in the Nordic countries. So I have made a list of things that should be cleared in the Latvian telecoms "space" up by June 23, just a few weeks off.

1) The government should declare its position on the proposal by Lattelecom for a management and staff buyout of the whole company. TeliaSonera, the half-mother, has already indicated it favors the idea. With the Swedish government proposing an immediate sale of 8 % of TeliaSonera, it would be good for potential buyers to know that the Swedish group was getting out of a potential stranded investment for a reasonable price.

2) I am hoping to hear something about faster wireless internet speeds from Triatel and/or the GSM operators. This is personal -- I want to set up something at my summer house in Carnikava that has a reasonable speed compared to my 10 Mbps Riga DSL connection. Maybe I can get an extra DSL over my fixed phone line? Triatel has hinted at an upgrade of at least some of its EV DO network from the present maximum speed of 1 Mps.
Bite's 3.6 Mbps HSDPA (or a similar speed from Latvian Mobile Telephone) would be interesting, too. My present operator, Tele2 (via LETA) has not announced that it is expanding HSDPA coverage outside Riga (as yet).
A Latvian blogger with the nickname onkulis complains that Triatel has set an unannounced limit of 5 gigabytes (GB) per month download, despite professing to offer "unlimited" internet. Technologically, it may be necessary to ration wireless bandwidth in the face of BitTorrent junkies, but this sould be made explicit. Sorry, Triatel, you can be the first among many operators in Europe to tell it like it is with the fine print (my son, in Sweden, hit a ceiling on a 10 Mps fixed broadband connection).

3) Finally, my pre-Jāņi wish list includes at least one decent (at extra cost, if you please) international film channel on Lattelecom's IPTV service. The Bollywood channel now on the list doesn't count and I have yet to see what the video-on-demand film offerings are like ( I had to return my Ruckus wireless test set up, which worked fine as far as the TV went, but presented problems with using the internet at the same time).