ASIAN IT BRIEFING AUGUST 2017

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 1

H I G H L I G H T S

AUSTRALIA .................................................. 2

▪ Microsoft, Canberra Data Centres have set up Azure instances for the govt

▪ ACMA is consulting on multi-band allocation ▪ The Telecommunications and Other Legislation

Amendment Bill 2016 passes in the Senate, stipulating that telcos take more steps to secure network security

BANGLADESH ............................................ 11 ▪ Supreme Court has revoked the cancellation of

CityCell’s licence ▪ BTRC slashes 4G licensing fees ahead of planned

auction ▪ BTRC has launched a tender for Mobile Number

Portability Services

CAMBODIA ................................................ 13

CHINA ........................................................ 15 ▪ Central bank establishes mandatory clearing

house for all online transactions ▪ Premier Li has urged telcos to reduce prices in

support of SMEs ▪ Actility to roll out LoRa IoT network across “New

Silk Road”

HONG KONG.............................................. 20

INDIA ......................................................... 24 ▪ TRAI releases consultation paper on Privacy,

Security and Ownership of the Data in the Telecom Sector

▪ Proposed Data Protection and Privacy Bill has been tabled in parliament

▪ Deal between Snapdeal and Flipkart collapses

INDONESIA ................................................ 28 ▪ Kominfo releases draft regulation on OTT ▪ Govt releases e-commerce roadmap ▪ Twitter, Facebook and Google work with

Kominfo to fight negative content

JAPAN ........................................................ 30 ▪ Govt trials teleworking in preparation for Tokyo

2020 Olympics ▪ Alibaba offers marketing tool for local e-

commerce ▪ Tone Mobile releases smartphone that Auto-

locks to restrict screentime

LAOS ......................................................... 33

MALAYSIA ................................................. 34 ▪ Govt legalises e-hailing services

MYANMAR ................................................ 35 ▪ MPT launches LTE+ in three cities

NEW ZEALAND .......................................... 36

▪ Govt introduces the Telecommunications (New Regulatory Framework) Bill to modernize telecom regulations post-2020

▪ The Data Futures Partnership releases data sharing guidelines

▪ Simplified radio spectrum fees will begin in 1 Oct

PHILIPPINES .............................................. 41

SINGAPORE ............................................... 44

▪ National Digital Identity System under development

▪ Ministry of Education plans to rollout e-learning portal nationwide in 2018

▪ Amazon Prime launches in Singapore

SRI LANKA ................................................. 48 ▪ Govt steps in to resolve DBN licence conflict

SOUTH KOREA .......................................... 49 ▪ Govt to increase discounts on telecoms services

in Sep ▪ Govt approves testing self-driving cars on public

roads

TAIWAN .................................................... 51 ▪ Govt outlines plans to invest USD527m in AI

over next four to five years ▪ NCC fines APT for poor QoS over 3G network

THAILAND ................................................. 52 ▪ TOT to replace copper with fibre by 2025 ▪ Line launches on-demand taxi calling

VIETNAM .................................................. 54 ▪ MIC censorship system in the works

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 2

A U S T R A L I A

CLOUD NextDC Gets AUD300m (USD238m) for Future Data Centre Growth It will use the three-year debt facility from the National Australia Bank (NAB) to finance facility expansion. ▪ NextDC is also bidding for control of Asia Pacific Data Centre Group (APDC) with an

offer to buy remaining shares owned by 360 Capital. Impact Analysis: Building datacentres is a capital-intensive exercise.

ASIC in Data Analytics Partnership with Nuix The ASIC will work with Nuix as it spends AUD60m (USD48m) on improving its data analytics, IT systems, and surveillance and enforcement capabilities. Impact Analysis: ASIC wants to become better at extracting intelligence from diverse

data sources so it can do a better job of disrupting financial fraud and embezzlement.

Microsoft to work with CDC to Launch Azure Services for Govt Canberra Data Centres (CDC) will help Microsoft launch two cloud regions so that govt agencies can access Azure services by early 2018. ▪ CDC will soon host more than 60MW of data centre capacity in Canberra. ▪ The Australian govt spends AUD6-9bn (USD4.7-7.1bn) on IT annually, but less than 1%

of that is cloud related. ▪ The DIBP currently uses Dynamics365 and Azure for cargo inspections, while

emergency services in Queensland, NSW, and Victoria use Azure for natural disaster response.

Impact Analysis: The partnership between CDC and Microsoft lays down the trusted, secure foundation for govt agencies to move to the cloud.

ICT POLICY AND PREFERENCES ICT Procurement Changes Issued

The ICT Procurement Taskforce Report lays out a new govt ICT procurement framework wherein contracts will be capped at AUD100m (USD79m) or three years’ duration. Impact Analysis: The reforms will help SMEs better compete for smaller individual

parts of larger projects.

ACMA Opens Consultation on Multi-Band Allocation The bands in question are the remaining spectrum lots in 1800MHz, 2GHz, 2.3GHz, and 3.4GHz. Submissions were due by 25 Aug. Other open consultations include: ▪ The ACMA is also reviewing the scientific license pricing arrangements for 5G and other

radiocommunication research. Consultation closes 14 Sep. ▪ The ACMA is looking to ensure that the Integrated Public Number Database (IPND) and

directory publishers abide by the Emergency Call Services Requirements Code (ECSR Code). Submissions can be made until 8 Sep.

▪ The ACMA has released an update for licensing procedures for space-based communication systems. Feedback is welcomed until 15 Sep.

Impact Analysis: The ACMA aims to conduct a successful auction of the multi-band residual lots. It is contemplating using the simple clock auction (SCA) methodology.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 3

Govt Passes Amendment to Interactive Gambling Bill The amendment aims to end illegal offshore gambling operators by requiring everyone to apply for a license. Impact Analysis: ACMA will be given new enforcement powers to go after wagering

operators who refuse to comply with the new changes.

PC Releases Trade and Assistance Review 2015-16 Australian industry was the recipient of AUD15.1bn (USD12bn) in support from the govt – AUD6.8bn (USD5.4bn) in tariffs, AUD4.6bn (USD3.7bn) in budgetary assistance, and AUD3.7bn (USD2.9bn) in tax concessions. ▪ The review calls for the elimination of all remaining tariffs. ▪ The Global Connections Fund has released AUD1.4m (USD1.1m) in grants to 18

researchers and 11 SMEs to let them better collaborate with global partners. Impact Analysis: The manufacturing sector is the largest recipient of govt assistance at

the expense of the services sector which accounts for 85% of Australian economic output.

PC Issues Discussion Paper on Collection Models for GST on Imported Goods The imposition of a Goods and Services Tax (GST) on e-commerce goods bought from overseas online retailers has been a hot topic of debate. ▪ Submissions were due on 30 Aug, with the inquiry report expected to be released by

31 Oct. ▪ The govt is also leading an inquiry into the trade system and the digital economy.

Submissions are due by 12 Oct. Impact Analysis: A point of contention is who will collect the GST on behalf of the govt

tax collector.

Discussion Paper for Open Banking in Australia Now Out The govt is seeking feedback from the public on what would be the most appropriate model for such a regime. Comments on issues like what data should be shared and how are welcomed until 22 Sep. ▪ The four largest banks in Australia together hold a 95% market share. ▪ Cost-effective data access can lower barriers to entry for new providers and encourage

existing providers to offer new services. Impact Analysis: Govt feels there needs to be more competition and innovation in the

Australian finance industry. It understands there are significant costs and risks in implementing change in a highly-regulated industry like banking.

Parliamentary Friends of Blockchain Group Formed It is a new blockchain forum for politicians and their aides to discuss cryptocurrency issues. ▪ Australian senators are calling for the Reserve Bank to allow bitcoin to become an

official form of currency. Impact Analysis: Many feel the Australian govt should be doing more to embrace

cryptocurrencies so that the country can innovate in the realm of new financial services.

Driverless Vehicle Trials to Take Place in Melbourne The 18-month trial will be led by toll road operator Transurban to see how the vehicles interact with real-life road conditions and other hazards.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 4

Impact Analysis: An enormous amount of testing remains to be done before autonomous vehicles can truly be deployed around the country.

COAG to Support My Health Record The Council of Australian Governments Health Council (COAH) approved the National Digital Health Strategy (2018-2022), in which one of seven goals is for all Australians to have a My Health Record by 2018. The Council will start automatically signing up citizens to the service – with an opt-out option. ▪ The Strategy was released by the Australian Digital Health Agency (ADHA), which will

also be coordinating its implementation. ▪ The Strategy estimates gross economic benefit of secure messaging in the healthcare

sector could be AUD2bn (USD1.6bn) over four years. ▪ The My Health Record system is far from perfect and has been guilty of several data

breaches in the past. To date 5 million Australians have a My Health Record. ▪ The ADHA will publish a Framework for Action detailing implementation plans for the

Strategy, while a public consultation on draft interoperability standards is set to be released by end 2018.

▪ The Health Informatics Society of Australia, Nursing Informatics Australia, and the Australian College of Nursing have issued the Nursing Informatics Position paper which calls for nurses to take a leading role in implementing digital healthcare initiatives.

Impact Analysis: Interoperability of clinical data is a critical factor for the national digital health strategy to succeed. Data standardisation will have to be achieved as fragmentation is a barrier.

Review of Health Professional Online Services (HPOS) Open to Public A discussion paper has been issued about appropriate access to Medicare card numbers by health providers to confirm Medicare eligibility. Submissions were due by 8 Sep. ▪ The review comes in light of an article published in The Guardian newspaper that

Medicare card details had been sold on the “dark web”. Submissions to the dark web review were due by 31 Aug.

Impact Analysis: The review is to strengthen public confidence in govt’s ability to ensure the security of a citizen’s personal information.

Australian Bitcoin Exchanges to Come Under Austrac Supervision This will be the first time these exchanges are facing regulation. They will have to register on an Austrac Digital Currency Exchange Register and make sure they report customer transactions exceeding AUD10,000 (USD7,945). ▪ The changes are part of wider amendments to Australia’s anti-money laundering and

counter terrorism funding laws. ▪ The ASIC is holding a regtech conference in Sydney on 18 Sep. Impact Analysis: The govt believes that regulation of digital currencies will encourage

businesses to use them.

Australia Senate Opening Inquiry into Digital Delivery of Govt Services The Senate Finance and Public Administration References Committee will conduct the inquiry to see whether govt digital services comply with a high standard for privacy, security, quality, reliability, and value for money. ▪ The report will be tabled 4 Dec. ▪ DTA plans to hire 250 entry level staff in next 12 months to fill digital roles around govt.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 5

Impact Analysis: The govt was embarrassed last summer by the failure of the online census after a denial of service attack. The Dept of Human Services (DHS) was also hit with a “robodebt” scandal.

Australia Enters Fintech Alliance with UAE The ASIC and the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA) have agreed to provide mutual support services for fintech start-ups in both markets. ▪ UAE is Australia’s largest trade partner in the Middle East with trade worth AUD8.8bn

(USD7bn) in 2015. Impact Analysis: The alliance paves the way for Australian fintech firms to operate in

Abu Dhabi.

Dept of Finance Consultation on Whole of Govt ERP SaaS Draft Head Agreement The Head Agreement will form the basis for the whole of govt (WoG) ERP (Enterprise Resource Planning) Software as a Service (SaaS) panel. Comments were due by 28 Aug. ▪ DTA is tendering to establish a WoG software licensing and services panel, in particular

a Microsoft licensing solutions provider (MLSP). Tenders were due by 12 Sep. ▪ Australia has spent AUD364m (USD289m) on Microsoft software licenses between 1 Jul

2013 and 30 Jun 2016. Second Australian Digital Inclusion Index (ADII) is Released A digital divide continues to exist between rich and poor Australians. Poor Australians have a digital inclusion score of 41.1 compared to the 68.1 scored by rich Australians. ▪ One in five Australians only access the Internet through their mobile phone. ▪ An Australian Digital Inclusion Alliance (ADIA) has been launched to fight the digital

divide in Australia. Impact Analysis: Even in a country as wealthy and advanced as Australia it is important

not to forget that there are many people not so well off who cannot afford to connect to the Internet and all the prospects it offers.

Apple Gives Deliberation Before Senate Tax Committee It says all revenue from Australian sales is recorded locally and that it does not need to make any changes to its local business practices to comply with the new MNC tax avoidance law. ▪ In fiscal year 2015-16 Apple Australia booked AUD7.5bn (USD6bn) in revenue,

AUD400m (USD318m) in net profit, and reported an income tax payment of AUD120m (USD95m).

▪ Google has said it will contest its ATO tax bill. Impact Analysis: Apple is confident that neither the diverted profits tax (DPT) nor the

Multinational Anti-Avoidance Law (MAAL) will impact its tax position in Australia.

IPR Telsyte Survey Reveals 3.7 million Australians Subscribe Streaming Services According to Telsyte, streaming subscriptions will overtake traditional pay TV subscribers by Jun 2018. Netflix has more than 2 million subscribers at the end of Jun 2017, followed by Stan at 867,000. Impact Analysis: Besides Netflix there are other streaming service providers doing well

in the market, including Stan, Amazon, YouTube Red, Foxtel, and Optus Sport.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 6

Foxtel Gets Federal Court to Block 127 Piracy Domains Australian ISPs have 15 days to comply with the court order and block domain names connected with Yes Movies, Vumoo, Los Movies, Putlocker, Watch Series 1, and other sites. ▪ Foxtel pays AUD50 (USD40) for every blocked domain with the block in place for the

next three years. ▪ Film studio Roadshow succeeded in getting another 42 piracy sites blocked including

Demonoid, ExtraTorrent, LimeTorrents, MegaShare, Piratebay.to and EZTV. Impact Analysis: Piracy site domain blocking is one weapon in copyright holders

arsenal against intellectual property thieves.

Govt Busy Trying to Pass Media Reform Package The package includes an ACCC inquiry into impact of new digital environment on media, steps to enhance local content in smaller regional markets, an extension for community TV licensees, and a review of Australian broadcasting services in the Asia Pacific region. Impact Analysis: Australian media organisations are under technological and market

pressure. It is difficult for them to figure out how to transit to the new age of digital platforms.

PRIVACY AND SECURITY Govt Accepts Telecom Network Security Recommendations The recommendations were made by the Parliamentary Joint Committee on Intelligence and Security and are related to the Telecommunications and Other Legislation Amendment Bill 2016. The Senate has passed the Bill and referred it to the House of Representatives. ▪ Carriers are obligated to protect their networks from unauthorised access. Impact Analysis: The Bill provides a framework for managing threats to the telecom

sector which is part of a nation’s critical infrastructure.

Austrac Opens Civil Penalty Proceedings Against CBA The Australian Transaction Reports and Analysis Centre (Austrac) says the Commonwealth Bank of Australia (CBA) has failed in its anti-money laundering efforts. It notes 53,700 breaches on the part of the bank of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. CBA blames a coding error. ▪ The Senate has launched an inquiry into the Anti-Money Laundering Amendment Bill

2017. Impact Analysis: CBA could face a maximum penalty of AUD18m (USD14m) for each

one of the breaches.

Victoria Legalises Police Body-Worn Cameras The Justice Legislation (Body-worn Cameras and Other Matters) Bill 2017 was passed by the House body to give police new powers and tools to keep communities safe. ▪ The Surveillance Devices Act 1999 had to be amended so that a private conversation

recorded by the police is not construed as an offence. ▪ More legislation will be introduced to allow for body-worn cameras to record

statements in family violence matters and be used in court as evidence. ▪ The Queensland Police Service will work with the Australian Postal Corporation

(AuPost) to trial the Digital ID system for its national police clearance certificates process.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 7

▪ South Australia is working on a data project to help vulnerable children who are likely to be caught in abusive situations. Part of the project is to get better cooperation between different govt depts in sharing data.

Impact Analysis: New technologies require laws to be amended so that they can be legally used in certain venues and lines of work.

Privacy Commissioner Completes Investigation into Red Cross Blood Service Data Breach Last fall personal data from DonateBlood.com.au website was found in the public domain. After its investigation the Privacy Commissioner said it was satisfied with the measures Australian Red Cross has taken to prevent such a breach from re-occurring. ▪ Consulting firm PwC is undertaking a review of the Privacy (Credit Reporting) code

2014 for the OAIC. Impact Analysis: Companies must make sure that their partners to whom they

outsource IT work comply with all privacy obligations.

ASPI Puts out Report on Big Data and National Security In the report, the Australian Strategic Policy Institute (ASPI) counsels govt to not get swept up by the hype around big data ‘cracking’ the terrorism problem. Impact Analysis: There are huge technical, legal, cultural challenges and false positives

to harness big data in the fight against terrorism and other national security threats.

Australian Organisations with Cisco Routers Fall Under Cyberattack The Australian Cyber Security Centre (ACSC) has announced a warning that Cisco switches are vulnerable to attackers seeking to extra configuration files by abusing the Smart Install (SMI) function in Cisco software. Impact Analysis: Cisco recommends using newer Cisco technology like Cisco Network

Plug and Play to set up new switches.

AGD Puts out Report on Data Retention Scheme In “Telecommunications Interception and Access Act 1979 Annual Report 2015-16” the AGD (Attorney General Dept) says it will cost telcos AUD198m (USD157m) to install the correct systems. ▪ The govt has set aside AUD128m (USD102m) in grants to help with capital cost to

industry of compliance with the new law. ▪ AGD received 402 data retention implementation plans from 310 providers. ▪ Tracking illicit drug offences was the highest authorization for telco data access,

followed by miscellaneous, homicide, robbery, fraud, theft, and abduction. ▪ 63 enforcement agencies filed 333,980 retained data authorisations. Impact Analysis: The report is meant to illustrate that the govt agencies are handling

metadata in a compliant manner, although doubts remain that it could be used to silence journalists and other critics of the govt.

eSafety Office Assembles Online Safety Consultative Working Group The taskforce will look at ways to best protect those under the age of 18 from online pornographic materials. Impact Analysis: Australia might follow UK’s example and institute a law that online

porn viewers be age-verified before they can gain access to the content.

Ombudsman Says Australian SMEs Feel Misguidedly Safe from Cybercrime

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 8

Half of Australian SMEs think because they only have a limited online presence that reduces their risk of being hacked. ▪ The average cost to businesses of an online scam is AUD10,000 (USD7,941). 30% of

small businesses have reported a cybercrime. ▪ A small business in Australia is defined as one with less than 20 employees and a

turnover below AUD10m (USD7.9m). That is 97% of all businesses in Australia. ▪ Govt will make AUD2,100 (USD1,668) grants available to SMEs in 2018 for

cybersecurity systems. Impact Analysis: In reality, cyber criminals attack small businesses on a regular basis.

OAIC Updates Privacy Policy The update has a number of changes including what the OAIC collects through Google Analytics and Pwik tools, when the Dept of Industry might access information collected in its SmartForms service, and additional text to what happens when there is a data breach related to My Health Records Act.

APPS , NEXT -GEN DEVICES AND SERVICES Amazon Opening First Fulfilment Centre in Australia The 24,000 sqm centre will be built in the Pellicano M2 Industry Park in Dandenong South, Victoria. ACMA Releases Report on Children Multi-Screen Viewing Behaviour Australian children view 10 hours of screen content every week. Much of this content is delivered on demand via a range of devices and platforms ▪ The govt is seeking feedback on how best can the screen production sector be

supported to churn out quality children content. Inputs are due by 21 Sep. ▪ YouTube and Netflix join free-to-air TV catch-up services as three of the top four online

services used most frequently by children. Westpac to Invest AUD40m (USD32m) in Zipmoney Zipmoney offers digital payment services running off a proprietary data analytics platform. Impact Analysis: Through the partnership with Zipmoney, Westpac aims to gain insight

into the changing payments landscape.

Robert Half Survey Finds Automation Will Create More Jobs than it Destroys A survey of 160 Australian CFOs found 46% will expand headcount to implement automation efforts in coming 12 months. 86% say automation will require new skillsets such as problem solving and strategic vision to be mastered. ▪ Functions most likely to be automated are data collection, invoicing, financial report

generation, data entry and credit management. ▪ An IDC report, sponsored by Salesforce, predicts that AI-powered customer

relationship management (CRM) will create 16,000 new jobs in Australia from 2017 to 2021 and increase revenue by AUD19bn (USD15bn) over the next five years.

Impact Analysis: According to the survey automation is about adapting to change not destroying jobs.

Data61 Partners Ruralco on Farming Tech Solutions Among the areas the companies will look at is using unmanned aerial vehicles (UAVs) for: 1) livestock detection; 2) long-range sensing; and 3) application of geospatial tools for fertilizer, nutrient, and water management.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 9

▪ AUD1.5bn (USD1.2bn) is invested every year in agricultural and rural R&D in Australia. Impact Analysis: Drone technology is starting to be adopted in Australia’s agricultural

sector leading to interesting data-driven decision-making tools.

Vision Box to Deploy Facial Recognition Tech at Airports It has been awarded a three-year AUD22.5m (USD18m) contract by DIBP to roll out 105 smartgates which let “known passengers” pass through without having to show a passport. ▪ The DIBP also conducted a tender, which closed on 25 Aug, for a service provider for

automated processing at Australian ports to support the “seamless traveller”.

ACCESS NETWORKS Govt Invests in Thinxtra’s LPWA Network Sigfox operator Thinxtra has received AUD10m (USD8m) in funding from the govt’s Clean Energy Finance Corporation to boost its LPWA IoT network. ▪ The operator aims to cover 95% of the Australia population by end 2017, and reports

that more than 150 Australian businesses are already on its network. ▪ Telsyte’s Australian Emerging Enterprise Technology Study 2017 has found that 23% of

Australian organisations are using or testing IoT. 59% of early IoT adopters in Australia are claiming cost savings, 30% increased customer satisfaction.

Impact Analysis: Some of the biggest barriers to IoT deployment are legacy infrastructure and cost.

NBN Answers Speed Questions In a written response to the Senate Estimates Questions on Notice, NBN says 6% of Fibre-to-the-Node (FttN) connections will not reach the 25Mbps target until Jun 2022. ▪ The current average attainable FttN speed is 67.7Mbps download, 30.6Mbps upload. Impact Analysis: The NBN uses a multi-technology model where there is ‘co-existence’

with copper-based legacy broadband products such as ADSL until migration is complete.

ACCC Releases Wholesale Market Indicators Report There was a 36% increase in connectivity virtual circuit (CVC) capacity acquired by retail service providers in the quarter ending 30 Jun, from 2,149Gbps to 2,820Gbps. ▪ Strong disagreement between retailers and NBN Co exists over what the CVC charge

should be. ▪ The govt is asking the ACMA to collect data on the NBN customer experience to

identify most common problems. As more consumers migrate to the NBN there is a corresponding rise in the reporting of consumer problems with the NBN. NBN Co and retail service providers are blaming each other for the poor experiences.

▪ The ACCC has issued guidelines for retail service providers on how they can advertise their NBN offerings, including identifying minimum speeds during peak periods.

Impact Analysis: The ACCC is investigating whether the NBN should provide more CVC-related information to the regulator. Transparency is important for healthy competition.

Virgin Australia Deploys In-Flight Wi-Fi for 90% of Flights Domestic fliers will enjoy a free basic Wi-Fi service. The airline company is partnering with Gogo and Optus to deliver the service. No detail on available speeds has been released yet.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 10

▪ During a three-month trial, 49% of fliers used Wi-Fi to check their emails, 43% to check their social media accounts, 31% to read news, 27% to send texts, and 19% to watch Netflix.

Telstra Turns on Cat M1 Network The network will run across the operator’s 4GX footprint, and is optimized for IoT services. ▪ Telstra has started to offer Google Home to its Smart Home customers which lets them

control lighting and other residential functions through voice command. Impact Analysis: Older networks get switched off as newer technologies like 5G and

IoT optimised radio networks eclipse them.

Optus Ceases 2G Services on 1 Aug Having already switched off its 2G GSM network in Northern Territory and Western Australia, the switch-off in remaining states will enable the operator to reallocate some of the spectrum towards enhancing mobile services and developing emerging technologies including 5G. ▪ Vodafone will also shut off its 2G network on 30 Sep. TIO Figures Show Rise in Telco Service Complaints In the three-month period ending 30 Jun complaints per 10,000 services in operation (SIO) rose to 9 with Optus receiving the most followed by Telstra, according to figures from the Telecommunications Industry Ombudsman (TIO). ▪ Carriage service providers were to register their compliance with the

Telecommunications Consumer Protection Code (the TCP Code) by 1 Sep with Communications Compliance Ltd (CommCom).

Impact Analysis: Internet service complaints grew 53.6% to represent 37% of all complaints.

ABBREVIATIONS ACCC: Australian Competition and Consumer Commission ACMA: Australian Communications and Media Authority ASIC: Australian Securities and Investments Commission ATO: Australian Taxation Office DIBP: Department of Immigration and Border Protection DTA: Digital Transformation Office LPWA: Low power wide area NBN: National Broadband Network OAIC: Office of the Australian Information Commissioner PC: Productivity Commission STEM: Science, Technology, Engineering, and Mathematics UAE: United Arab Emirates

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 11

B A N G L A D E S H

ICT POLICY AND PREFERENCES Cancellation of CityCell Licence Revoked The Supreme Court ordered BTRC to return Pacific Bangladesh Telecom’s (CityCell’s) mobile spectrum and revoke the decision to cancel the telco’s mobile licence for non-payment of fees and charges. ▪ The order came only a few days after the Ministry of Posts, Telecommunications and

Information Technology had gave BTRC permission to cancel CityCell’s licence. ▪ CityCell has been out of operation since Q4 2016 after the authorities suspended its

services for non-payment of debts, but has remained in existence only via court orders allowing it time to pay instalments of overdue fees of which it has paid around 65%.

BTRC Gives Final Approval for Airtel-Robi Merger BTRC issued the ‘Order of Merger of Licence’ for Robi and Airtel, which formed Robi Axiata, the second largest mobile operator in the country with 28.7% market share. ▪ Malaysia-based Axiata owns 68.7%, India’s Bharti Airtel 25%, Japanese NTT DOCOMO

6.3% of the new company. BTRC Slashes 4G Licensing Fees BTRC will decrease 4G licensing fees by a third ahead of the 4G spectrum auction expected in Sep. Further amendments of the terms of the draft 4G guidelines have also been agreed on in consultation with industry stakeholders: ▪ Licence acquisition fees will be reduced to BDT100m (USD1.23m) from BDT150m

(USD1.85m). ▪ Annual licence fees will be BDT50m (USD618,000) down from BDT75m (USD927,000). ▪ BTRC will also remove restrictions on sources of funding – previously foreign partners

were expected to invest a sum directly equal to their percentage of ownership. ▪ The controversial spectrum conversion fee for technology neutrality in the existing

900MHz and 1800MHz allocated bands will be brought down to USD7.5m per MHz from USD10m.

▪ 4G licensees’ revenue sharing portion with BTRC will be reduced to 5.5% from 15%. Unlawful VAT Rebate Claim by Four Telcos The Large Taxpayers Unit of the National Board of Revenue claims that four mobile operators have unlawfully claimed BDT4.2bn (USD52.3m) as Value-Added Tax (VAT) rebate since 2012 and should refund the amount. Telcos have challenged the decision at the Customs Excise & VAT Appellate Tribunal. ▪ Robi supposedly claimed BDT2.37bn (USD29.1m), Grameenphone BDT0.99bn

(USD12.2m), Banglalink BDT0.78bn (USD9.7m) and Teletalk BDT0.15bn (USD1.86m). BTRC Releases Guidelines for TVAS Registration for Public Consultation BTRC released its “Regulatory Guidelines for Issuance of Registration Certificate for Providing Telecommunication Value Added Services (TVAS) In Bangladesh” – which covers music, news and sports content delivered via SMS, Unstructured Supplementary Service Data (USSD), Interactive Voice Response (IVR) and smartphone apps. Registration will be open, valid for five years with eligibility limitations based on foreign equity and source of investment.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 12

▪ Fees and charges include an application fee, a registration fee, gross revenue sharing and payment to the Social Obligation Fund – 5.5% and 0.1% of annual audited gross revenue respectively.

ACCESS NETWORKS BTRC Considering MVNO Licence BTRC is conducting a feasibility study on mobile virtual network operators’ (MVNOs’) potential to offer mobile service under a new licence. If MVNOs prove to offer consumer benefits, BTRC will release guidelines about their operation in the country. Number Portability Tender Launched BTRC has launched a tender for providers of mobile number portability services (MNPS). Offers will be evaluated according to their technical proposals and financial strength based on the requirements of the Regulatory and Licensing Guidelines of MNPS and the National Numbering Plan 2017 both released in late Jul. ▪ A single winner will be chosen to receive a 15-year licence at a cost of BDT2m

(USD24,700), and must implement a MNPS system within 180 days of licensing. ▪ The licensee will have to share 15% of its revenues with BTRC from the second year

onwards. SeaMeWe-5 Submarine Cable Yet to Be Operational The South East Asia–Middle East–Western Europe 5 (SeaMeWe-5) submarine cable, which landed in Bangladesh on 21 Feb, is yet to provide connectivity due to its failure to establish an uninterrupted inland link between the landing station and Dhaka. ▪ The network was initially scheduled to be launched in Mar, before being postponed to

Jul. Banglalink Fined for Illegal Towers BTRC is planning to fine Bangalink BDT170m (USD2m) for establishing 109 mobile towers in the border areas with India without the regulator’s prior consent. Banglalink claims to have applied for the relevant installation permits and have been waiting for BTRC approval.

ABBREVIATIONS BTRC: Bangladesh Telecommunication Regulatory Commission

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 13

C A M B O D I A

PRIVACY AND SECURITY Police Monitor Facebook for ‘Enemies’ The police issued their semi-annual police report that claims there has been an uptick in anti-govt communication on Facebook and have begun monitoring the website to catch dissidents. ▪ The “enemy” mentioned in the report is apparent reference to opposition parties.

APPS , NEXT -GEN DEVICES AND SERVICES Central Bank Expresses Support for Fintech The National Bank of Cambodia (NBC) cites fintech and digital finance as a way to increase financial inclusion and access for the unbanked. ▪ The NBC wants to develop a national financial inclusion strategy but emphasizes that

the private sector should take the lead in banking the unbanked. ▪ The NBC already allows for fintech companies to register basic financial services

through the licensing of the payment service providers. iFlix Becomes Second International Video Streaming Service Malaysia’s iFlix launched in the country 18 months after Netflix officially debuted. ▪ iFlix is in the process of providing Khmer subtitles for its content. Pi Pay Processed Over USD 1m in First Month The cashless payment launched in Jul and has been downloaded by over 30k smartphones users and has been used at 150 merchant locations in Phnom Penh. ▪ Pi Pay will continue to partner with local banks to expand their network and promote

cashless payments.

ACCESS NETWORKS TRC Revokes Three ISP Licenses Over Inactivity The Telecom Regulator of Cambodia (TRC) revoked the licenses of Acumen, G-Tell and E-Cloud citing their inactivity in providing Internet services. ▪ The loss of licensing is not viewed to impact Internet delivery in the country. Telecom Cambodia Inaugurates Greater Mekong Telecom Backbone Network Project The backbone project includes a 467 km cable connecting Sihanoukville to Kampong Cham to increase connection speeds and boost video and voice call quality. Impact Analysis: The extra investment into connecting interior Cambodia should help

deliver better Internet to the rural poor.

4G Availability Rises in Cambodia A recent report from OpenSignal found that Cambodia had an LTE availability score of 63.3% in Q2. This places Cambodia on par with Indonesia and Malaysia, and ahead of the Philippines. ▪ Cellcard and Smart Axiata had LTE availability scores of about 70%, while Metfone’s

was 56%. ▪ Cellcard had an average 4G download speed of 19.71Mbps, while Smart Axiata’s was

10.16Mbps, and Metfone’s 4.64Mbps.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 14

▪ Average connection speed across all networks in Cambodia was 5.7Mbps. According to OpenSignal’s global report, which examined 87 countries, these mobile speeds place Cambodia amongst the slowest.

Smart Axiata Partners with Huawei on 4.5G Network On 21 Aug, Smart Axiata, in partnership with Huawei, launched the 4.5G LTE network in Cambodia. ▪ Minister of Posts and Telecommunications Tram Iv Tek noted that Smart was the first

telecom operator to introduce 4.5G technology to Cambodia.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 15

C H I N A

CLOUD Huawei Inaugurates Guizhou Data Centre Located in Guian New Area, the data centre spans 400,000 sqm and houses 600,000 servers that support the telecom equipment vendor’s global services. ▪ Guizhou’s pro-big data policies have also attracted the likes of Apple, which announced

in Jul plans to build its first China data centre in Guian New Area. Guizhou Govt Committee to Oversee Apple Data Centre The provincial govt decided to establish the Apple iCloud working committee, which Guizhou’s Executive Vice Governor will be a member of, to accelerate the setting up of the US consumer electronics maker’s first local data centre, which was established to comply with China’s new data residency laws. Wanda Announces Public Cloud Ambitions Wanda Internet Technology plans to launch public cloud service in Q1 2018 and establish itself as one of China’s largest public cloud providers in five years. ▪ It also plans to launch IBM’s Watson AI technology in Jun 2018. ▪ Wanda Cloud Company was created as a JV between Wanda and IBM in Mar. Guangdong Bluesea Mobile Development to Launch New Data Centre Facility The 12,400 sqm Guangzhou (Nanxiang) Cloud Services Data Centre, which is jointly financed by Neo Telemedia and Guangzhou Huade Industrial, will be launched by end 2017. ▪ The facility will be run by Neo Telemedia’s subsidiary Guangdong Bluesea Mobile

Development, which formed a JV with China National Offshore Oil Corporation to invest in data centres for the energy sector in Jun.

▪ The company aims to have a 70% occupancy rate by end 2018. Alibaba Partners Macau Govt on Smart City The four-year partnership will see the Macau govt leverage Alibaba Cloud’s cloud computing technologies to upgrade Macau’s IT infrastructure, and the first phase of the partnership, from 2017 to 2019, will focus on building a smart transport network, optimising traffic management, and developing smart healthcare and smart tourism capabilities. ▪ During the first phase, smart city governance will be promoted through a centralised

cloud-based platform for govt agencies and departments. ▪ Alibaba will also launch its Alibaba Cloud IT Certificate program and B2B e-commerce

training program to equip Macau’s workforce with essential skills. ▪ The second and final phase, from 2019 to 2021, will see the scope of the partnership

expand to environmental protection, economic forecasting and customs clearance.

ICT POLICY AND PREFERENCES State Council Releases Guidelines to Strengthen Innovation-driven Development The guidelines aim to reinforce the spirit of mass innovation and entrepreneurship and turn scientific achievements into products and strengthen the implementation of China’s National Innovation-driven Development Strategy, which was released in May 2016. The guidelines urge related departments to tackle systemic obstacles through enhanced

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 16

knowledge of IP rights, marketisation of patents, better guidance for maker spaces, incentive measures and sharing equipment. ▪ Standards and regulations on the involvement of State assets in venture capital

investments will be established. ▪ Related departments will build product innovation centres to promote mass innovation

and entrepreneurship, and accelerate the development of the sharing economy. ▪ The govt will release a series of guidelines to promote the digital economy and

advanced manufacturing industries, improve the data collection and analysis of new growth models and emerging industries, and start-ups’ access to land.

▪ Incentive measures, including easier access to residential or work permits, will be rolled out to attract talent such as foreigners, returning overseas students, sci-tech experts and migrants.

Govt Establishing Cyberspace Courts Hangzhou’s cyberspace court, which was approved in Jun, was the first of its kind to be established, and had already accepted about 1,500 complaints by Aug. Its jurisdiction is limited to the Hangzhou, the capital of Zhejiang province, and cases that involve: 1) Online shopping contract disputes; 2) Online shopping product liability disputes; 3) Online service contract disputes; 4) Online loan contract disputes; and 5) Online copyright disputes. ▪ The Cyberspace Court has two defining features: 1) Cases are tried online; and 2) It

only hears Internet-related disputes. ▪ On 19 Jul, the Xishan District Court of Kunming partnered with Sina to establish the

Online Court of Xishan District. Impact Analysis: While Cyberspace Courts offer both a practical and efficient avenue

for handling China’s rising number of cyber-related civil disputes, their success will be largely dependent on effective data protection and cybersecurity features.

Central Bank Establishes Clearing House for Online Payment Systems The People’s Bank of China’s settlements and clearing arm reached an agreement with 44 financial companies on 28 Jul to establish the clearing house. According to a notice by the Bank, all online payment services must connect to the new platform by 15 Oct 2017 and route their transactions via the new platform by 30 Jun 2018. ▪ The Bank approved the new platform in Aug 2016, and begun a trial run of the new

clearing house in Mar 2017. ▪ By becoming an intermediary, the nationwide clearing house will prevent payment

service providers from transacting directly with banks, giving the central bank greater oversight over the online payments sector.

Impact Analysis: On the security front, the national clearing house will reduce settlement risks by enabling common standards to be applied across platforms. However, the mandatory use of the new clearing house implies that online payment service providers will be subject to tighter regulation, raising compliance costs for these companies and potentially consumers.

CAC Investigates Tencent, Baidu and Weibo Content Violations ▪ The CAC has launched an investigation into the companies’ social media services for

violating the new Cyber Security Law by facilitating the distribution of content that contained “violent terror, false rumours, pornography and other hazards to national security, public safety, social order”.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 17

IPR US Launches Investigation into Chinese IP Practices The US Trade Representative formally launched an investigation into China’s IP practices and alleged theft of US IP, representing the Trump administration’s first direct measure against Chinese trade practices. ▪ US administration officials have estimated that companies may have lost up to

USD600m from forced technology transfers. ▪ Beijing has responded with “strong dissatisfaction”, calling the move “irresponsible”

and a disregard of WTO rules.

PRIVACY AND SECURITY Govt to Review Internet Companies’ Privacy Policies The CAC, MIIT, Ministry of Public Security (MPS) and the Standardisation Administration of China (SAC) have jointly undertaken a project to review the privacy policies of 10 Internet products and services. ▪ The review will focus on ensuring that privacy policies: 1) Clearly inform subjects on

personal information details collected and collection method; 2) Clearly inform users of rules for using personal information including user profiling and commercial ads; and 3) Clearly inform users of their rights to access, delete and amend personal information.

CAC, MOE Partner on Cybersecurity Schools The govt aims to establish four to six “internationally recognised and influential” cybersecurity schools by 2027. ▪ The Ministry of Education (MOE) and CAC are inviting universities to apply for the role. ▪ After the schools have been chosen, the govt plans to rollout policies and investment

to support its goal.

APPS , NEXT -GEN DEVICES AND SERVICES JD.com Launches Unmanned Sorting Centre The sorting centre is located in Kunshan, Jiangsu province, and is fully automated from parcel sorting to loading. According to the e-commerce company, the facility can sort about 9,000 parcels per hour, and can handle four times more packages than facilities that employ human labour. Xiaomi Leads Wearables Market in Q2 According to Strategy Analytics, Xiaomi outperformed market leader Apple in Q2, shipping 3.7 million wearable devices, representing a 23% increase y-o-y. ▪ Xiaomi’s strong performance in the quarter has been attributed to surging demand for

low-cost fitness bands. ▪ According to the MIIT’s Telecom Service Quality Report for Q2 2017, IoT devices grew

120% y-o-y to 181 million. Impact Analysis: In addition to achieving this significant milestone in the wearables

segment, the company’s overall outlook for 2017 and beyond is looking brighter. Competition from local budget handset makers including Oppo and Vivo had resulted in falling smartphone sales and a sharp drop in valuation in 2016. However, Xiaomi has regained its footing with smartphone shipments rising to a record 23.2 million units in Q2 2017, while a three-year agreement with a group of 18 banks for a USD1bn loan will fuel growth through global expansion and online-and-offline integration.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 18

Beijing Ranks First in Chinese Smart City Ranking A report jointly published by Tencent, the Renmin University of China, and French market research firm Ipsos has named Beijing the “smartest” city in China based on a number of indices, including transportation, education, shopping, food delivery and mobile payments. ▪ Beijing also ranked first in the cashless society element, followed by Shenzhen,

Guangzhou and Shanghai. ▪ The report found that 84% of Chinese were “comfortable” going out with just their

mobile phones and without cash. Beijing Subway Launches NFC Mobile Payments Commuters are now able to purchase electronic metro cards on their mobile devices. ▪ Mobile commute payments already contribute 2% of total daily payments. Ping An Insurance to Allocate R&D Spending to AI The financial company announced plans to spend more than CNY7.77bn (USD1.16bn) on technology R&D in 2017, with a focus on AI, tapping on the technology’s potential and supportive policies. ▪ The company has applied its AI technologies in the finance, healthcare, automotive and

housing industries. Facebook Launches Photo-sharing App Under Different Name The New York Times reported that Colorful Balloons, which bears resemblance to Facebook’s Moments app, was released in May under a separate local company called Youge Internet Technology. ▪ The app interfaces with WeChat, rather than Facebook, which has been banned in

China since 2009. Impact Analysis: While the social media giant has been keen to comply with Chinese

censorship requirements for a slice of the world’s largest market, China’s Facebook ban and WhatsApp’s more recent partial ban have forced the social media giant to pursue a much more localised strategy to stay in the market.

Alibaba Partners Hangzhou Govt on Smart House Renting System The online system will enable consumers to access rental property from govt, real estate developers and agents, and individuals while Alibaba’s big data, e-payments technology and commerce credit system will be used to mitigate fraud. ▪ The whole process of house rental, from searching to signing contracts and payment

will be conducted on the platform. Alibaba Enters JV with Marriott International Targeting Chinese consumers through Alibaba’s customer base, the JV will see Alibaba act as a gateway to Marriott hotels worldwide. ▪ The companies’ loyalty programs will be linked and offer content, programs and

promotions targeting Chinese travellers. Alipay, Yelp Target Chinese Travellers in the US Alipay will bring the San Francisco-based online review provider’s content and business partners to Chinese travellers via its mobile app.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 19

ACCESS NETWORKS Telcos Urged to Reduce Fees Premier Li Keqiang has called on the three major operators – China Mobile, China Unicom and China Telecom – to increase Internet speeds and reduce prices for SMEs, particularly in dedicated Internet access, to support China’s industrial upgrading and nurture new economic drivers. ▪ The three operators planned to end 20-year long domestic roaming and domestic long-

distance charges by 1 Sep, one month before the MIIT’s deadline. ▪ China Telecom has reportedly reduced connectivity fees by 40%, resulting in increase

in network flow by 130%. Actility to Roll Out “New Silk Road” IoT Network The LoRa-based LPWA network will be launched through an agreement between the Xi’an Beilin District Science and Technology Bureau, Shaanxi Radio and Television Network Group and ThingPark China (a collaboration between Foxconn and Actility), ▪ The network will form part of China’s USD100bn Belt and Road program. ▪ The first stage of the IoT network will cover the Beilin district and include an

environmental monitoring data platform for the collection, upload and analysis of environment data.

Impact Analysis: Establishing cross-border connectivity over a homogenous IoT network will encourage technology integration in Belt and Road projects, in turn bringing efficiency to areas including transport and logistics.

China Telecom Completes LTE-800MHz Rollout The operator announced that its LTE network, which uses the refarmed 800MHz band, has achieved 98% population coverage. ▪ China Telecom has rolled out 1.05 million base station nationwide, and carrier

aggregation (CA) technology in more than 300 cities covering 75% of the population. China Unicom to Deepen Cooperation with Tencent, Alibaba The operator has established two operating centres in Shenzhen, Guangdong province, and Hangzhou, Zhejiang province, to support its nationwide cooperation with Tencent and Alibaba respectively. ▪ The centres will reportedly be involved in produce design, event planning and R&D

activities. Impact Analysis: This development reinforces expectations of the two Internet

companies’ involvement as major shareholders of China Unicom following the NDRC’s approval, and subsequent green light from the China Securities and Reform Commission (CSRC), on its mixed-ownership reform.

ABBREVIATIONS CAC: Cyberspace Administration of China LPWA: Low power wide area MIIT: Ministry of Industry and Information Technology NDRC: National Development and Reform Commission SARFT: State Administration of Radio, Film and Television WTO: World Trade Organisation

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 20

H O N G K O N G

CLOUD Fifth Data Centre for SUNeVision SUNeVision announced its tier 4 MEGA Plus data centre at Tseung Kwan O is ready for service, after being granted an occupation permit and certificate of compliance by the govt. ▪ SUNeVision now operates five data centres in Hong Kong, located in Fo Tan, Tsuen

Wan, Kwun Tong, Tseung Kwan O and Chai Wan. KDDI Launches Telehouse Cloud Link in Hong Kong Telehouse Cloud Link is currently available in US and EMEA regions. It is a connectivity exchange that provides enterprises with connections to multiple cloud services from Telehouse Hong Kong CCC. ▪ The Telehouse Cloud Link in Telehouse Hong Kong CCC aims to provide enterprises

with a single source to connect to multiple CSPs. AMS-IX Hong Kong Launches Dedicated 100Gbps Ports Users of the Amsterdam Internet Exchange (AMS-IX) Hong Kong internet exchange will now be able to connect with the exchange through dedicated ports offering a capacity of 100Gbps. ▪ AMS-IX Hong Kong, a collaboration between Hutchison Global Communications and

AMS-IX, has upgraded the platform to cope with an increasing demand for bandwidth and a growing number of customers.

Equinix to Open HK5 Data Centre in Q4 Scheduled to open in Q4 with a focus on the financial sector, Equinix, is investing USD32m to develop its fifth International Business Exchange (IBX) data centre in Hong Kong, also known as HK5. Canon, NTT Launch Video Analytics Cloud Platform Canon Hongkong and NTT Communications have teamed up to launch a Video Analytics Cloud Solution for the retail market in Hong Kong. ▪ The new service combines Canon’s network camera technology and video analytics

software, and NTT Communications’ Enterprise Cloud services, to capture and deliver a high volume of business intelligence on a single platform, in real time.

50% Cloud Awareness but Only 15% Usage More than 50% of Hong Kong companies are worried about their data being at risk in case of a ransomware attack, but only 15% respondents are currently using public cloud data backup services, according to the Ransomware and Cloud Readiness survey by Social Sciences Research Centre at the University of Hong Kong (HKUSSRC) for the Business Software Alliance (BSA). ▪ The top three security issues cited were confidentiality considerations, safety concerns

and no confidence in security. ▪ According to the survey, over a third of Hong Kong companies are backing up data

more than three times a week, however, more than 75% of them have adopted a non-cloud option for their primary data backup.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 21

ICT POLICY AND PREFERENCES OFCA Responds to Spectrum Critics The OFCA has responded to criticism, saying it is waiting for the ITU to define the standards and spectrum bands for 5G before pushing ahead with any new allocation of frequencies. ▪ In Mar, the OFCA opened a consultation on the possible award of spectrum for 5G

services in the 700MHz, 3.5GHz and 26-28GHz ranges, though an allocation is not expected to be made until 2020 at the earliest.

PRIVACY AND SECURITY Cyber Threat Intelligence Critical to Local Organizations: HKPC HKPC's plans to launch a new campaign to improve cyber threat intelligence. The campaign, to be conducted through the Hong Kong Computer Emergency Response Team Coordination Centre (HKCERT), will focus on the dissemination of intelligence of global trends and insights about ransomware and other pressing threats.

APPS , NEXT -GEN DEVICES AND SERVICES HKU x Cyberport Set Up a Digital Tech Entrepreneurship Platform The University of Hong Kong (HKU) x Cyberport Digital Tech Entrepreneurship Platform will serve the building of a unique digital tech ecosystem spanning the aspects of human capital, innovation and technologies, entrepreneurship, and legal and business expertise. ▪ Cyberport has the largest fintech cluster in Hong Kong with close to 200 fintech

companies, and houses fintech accelerators such as Accenture FinTech Innovation Lab Asia Pacific and SuperCharger.

▪ HKU will provide support to digital tech start-ups at Cyberport by hosting legal and business clinics with professional service on legal advice, business plan consultancy and internal valuation practices. Through this Platform, a "HKU x Cyberport FinTech Nucleus" is also set up.

Social Enterprise Pilots Smart Homes for the Elderly The Senior Citizen Home Safety Association, a social enterprise offering 24-hour emergency services for the elderly using sensor technology, is launching a two-year pilot scheme. ▪ Under the plan, the homes of 1,000 senior citizens will be installed with sensory

devices by the end of the year. ▪ The HKD22m (USD2.8m) project sponsored by HSBC features a show flat at the

association headquarters in Ho Man Tin with smart devices connected to a 24-hour call centre. The sensors can detect fire or smoke in an overheated kitchen and flooding in the bathroom, as well as monitor blood pressure levels.

Mobile Marketers Must Use Data to Stand Out in Saturated Market Mobile ad success in Hong Kong is increasingly dependent on two factors: data and share of voice (SOV), research from the Vpon Big Data Group indicates. ▪ The decreasing click-through-rate (CTR) of mobile ads is meanwhile highlighting an

importance of increasing SOV and improving the way CMOs and ad agencies use data to target customers, the group said in its Hong Kong Mobile Advertising Statistics and Trends report.

Hong Kong Mobile Payments “Complete Chaos”

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 22

According to the Hong Kong Monetary Authority (HKMA), in Q1, the total number of transactions by Stored Value Facilities (SVFs) was 1.35 billion which represents a fall of 3.7% q-o-q, and a fall in value of 1% from HKD29.4bn (USD3.8 bn). ▪ This despite HKMA issuing 13 mobile-wallet licences in 2016. ▪ The Smart City Consortium Fintech Committee has called it “complete chaos”.

Accounts in different SVFs are not interoperable; functionalities such as instant money transfer and money refill are not as fuss-free as touted. With varied properties and functions among SVFs, both customers and retailers are bewildered.

ACCESS NETWORKS OFCA Approves i-Cable Plan, Issues New Licence OFCA approved the takeover of local broadband and pay TV provider i-Cable, while also renewing the firm’s operating licence. ▪ In May, i-Cable shareholders voted to accept a rescue plan by the Forever Top

consortium, which is led by Henry Cheng Kar-shun, chairman of New World Development, and David Chiu Tat-cheong.

Pixel Networks to Offer Hong Kong’s First LoRa Network Pixel Networks, a local based IoT network and solution provider, has collaborated with Actility to rollout the LPWA wireless network providing IoT connectivity throughout Hong Kong. ▪ In addition, Pixel Networks will provide a one-stop shop of IoT solutions, including

sensors, software for data analytics and visualization, and full system support, integration and maintenance.

▪ It will offer smart building integration with apps including temperature monitoring in offices, smart lighting solutions for cost saving and pre-emptive maintenance of light bulbs, electric vehicle parking and charging management and hot desking solutions.

▪ Virtual private LoRaWAN networks can also use its public network infrastructure, which can be extended using the customer’s own outdoor or indoor gateways.

Superloop Switches on the TKO Express Cable Australia based fibre operator Superloop has switched on the TKO Express, the first subsea cable directly connecting the Tseung Kwan O Industrial Estate and Chai Wan. ▪ The TKO Express comprises 1,728 fibre cores, making it the world's highest core count

subsea cable. The cable provides a direct link between two areas containing some of Hong Kong's key data centres.

Govt Extends Free Wi-Fi through PPC The OGCIO announced extending the number of govt venues to provide free public Wi-Fi services through the Wi-Fi.HK Public-Private Collaboration (PPC) project. ▪ The OGCIO stated service providers will provide services to the public, and plan to

extend the service to other venues in the coming months, including public parks, public transport interchanges and markets.

▪ Private service providers are allowed to offer value-added services at these venues without any financing from the govt.

Hong Kong’s Interconnection Bandwidth to Grow the Fastest in APAC Hong Kong’s interconnected bandwidth is expected to grow at a CAGR of 51% between 2016-2020 to reach 149Tbps, the fastest growth rate in the region, according to research from Equinix.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 23

▪ Hong Kong is currently tied with Japan as the third top metro in Asia-Pacific in terms of interconnection bandwidth, after Singapore and Sydney.

▪ Globally, interconnection bandwidth is expected to grow at a 45% CAGR to reach 5,000Tbps by 2020, dwarfing global IP traffic in both growth (24%) and volume (755Tbps).

▪ In APAC, cloud and IT services providers are predicted to overtake telecommunications providers as the largest users of interconnection bandwidth by next year. But the industries with the largest CAGR are expected to include energy and utility (82%), healthcare and life sciences (74%) and banking and insurance (71%).

HKBNES to Extend Fibre to 19 Wharf Holdings Buildings HKBN Enterprise Services (HKBNES) has revealed plans to extend its fibre coverage to 19 commercial Wharf Holdings buildings. ▪ HKBNES expects to extend the network to 15 of Wharf's commercial buildings in

Central, Tsim Sha Tsui (Canton Road), Causeway Bay, Kowloon Bay and Kwun Tong. HKBN Signs 200,000 Mobile Subs in Less than a Year HKBN said it signed up more than 200,000 mobile subscribers in ten months since rolling out MVNO services using SmarTone’s mobile infrastructure. ▪ HKBN said in a statement that by mid-July more than half of its new mobile customers

bundled at least one additional service, such as fibre broadband, home telephone or OTT entertainment content.

▪ The company said 90% of its mobile subscribers ported their mobile numbers from an existing service provider, with 39% switching from the market leader HKT’s CSL and 1010 brands.

ABBREVIATIONS HKBN: Hong Kong Broadband Network LPWA: Low power wide area OFCA: Office of the Communications Authority OGCIO: Office of the Government Chief Information Officer

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 24

I N D I A

CLOUD TRAI Issues Recommendations on Cloud Services to DoT The TRAI has released its recommendations on cloud services based on extensive public consultation. TRAI recommends a light touch regulatory approach and for DoT to establish a broad framework for registration of an association of cloud service providers, which could create the industry’s code of conduct. ▪ The telecom regulator has also mooted a cloud service advisory group (CSAG), which

would “function as an oversight body” to periodically review the progress of cloud services and advise govt on the next set of steps.

▪ The Telecommunication Standard Development Society of India has been tasked to develop standards to ensure the interoperability of cloud services.

ICT POLICY AND PREFERENCES TRAI Issues Recommendations on Closure of Access Service The TRAI has released its recommendations on issues related to the closure of access services. The paper addresses uncertainties around the switching-off of services, and allows Unified Access Services (UAS) licensees to discontinue any service without surrendering their licence. ▪ Recommendations include for licensees to provide subscribers 30 days’ notice, and

notify the TRAI and DoT 60 days in advance, and to surrender administratively-allocated spectrum upon closure of service.

Telecom Market Consolidation Proceeds with Mergers’ Approval The consolidation of the Indian mobile market continues with various approvals of mergers among MNOs: ▪ The Competition Commission of India (CCI) approved the merger of Vodafone India and

Idea Cellular, and the Securities and Exchange Board of India (SEBI) has given its conditional approval. The second and third largest MNO will have nearly 35% market share, while current leader Bharti Airtel will have 23%. The agreement still needs approvals from DoT and the National Company Law Tribunal (NCLT).

▪ DoT will only grant its approval for the planned merger of Reliance Communications (RCOM) and Aircel once the deal has been greenlit by the Supreme Court.

▪ NCLT has approved the proposed merger between Bharti Airtel and Telenor India – the deal has been previously approved by CCI and SEBI.

TRAI Asks Telcos to Submit Tariff Information The TRAI has asked all telcos to submit their tariff plans online from 1 Aug, together with submitting hard copies. Tariff information must be shared within seven working days of announcement. ▪ The TRAI is planning to share all such data on its website by the end of 2017 to increase

the transparency of the mobile services industry. TRAI Releases Draft Mobile Number Portability Regulations The TRAI has released draft regulations on mobile number portability (MNP) for public consultation. The proposed changes aim to reduce the number of porting request rejections. Around 40% of all rejections are based on the mismatch, validity or expiration of the unique porting code (UPC).

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 25

▪ TRAI proposed a system under which a UPC which is generated by the donor operator should be shared with the MNP clearing house, which technically implements the mechanism and is approached by the carrier to which the user wants to change to confirm the correctness and validity of the code.

▪ Number portability has been available across India since 2011. TRAI Issues Guidelines to Curb Call Drops The TRAI issued guidelines to curb call drops with a penalty of up to INR1m (USD15,600) on service providers if they fail to meet benchmarks for three consecutive quarters. ▪ Measurement of call drop rate is proposed to be based on mobile towers as opposed

to circle level – 90% of base transceiver station or mobile site in a circle 90% of time should not fail to handle 98% of the calls, which means not more than 2% calls handled by them should drop. In peak times, not more than 3% of call drop should be registered on 90% of mobile towers in a circle.

PRIVACY AND SECURITY TRAI Releases Consultation Paper on Privacy, Security and Ownership of the Data The TRAI has released a public consultation paper to identify key issues pertaining to data protection in relation to the delivery of digital services; and devices, networks and applications that collect and control data generated by users through telcos. ▪ Submissions were sought by Sep 8 and counter-comments by Sep 22. Proposed Data Protection and Privacy Bill in Parliament Member of Parliament Baijayant “Jay” Panda tabled the Data (Privacy and Protection) Bill 2017 in the Parliament. The Act proposes the right to privacy to be a fundamental right for Indian citizens, but skips the pressing issue of data sovereignty. ▪ MeitY has put together a Committee of Experts to identify data protection issues and

suggest solutions, including a data protection draft bill by Sep. ▪ As part of its ongoing discourse on privacy in the context of Aadhaar, in late Jul the

Supreme Court conceded for the first time that privacy was a fundamental right under the Constitution with the caveat that the right could not be extended to “every aspect” of privacy.

MeitY Asks Smartphone Makers to Share Security Procedures The MeitY has asked 30 smartphone makers, of which the majority is Chinese, to share the security procedures and processes they have undertaken to ensure the security of their devices. The govt wants to ensure users’ data privacy in the wake of reports of data leakage and theft both domestically as well as abroad. ▪ The scope of security measures verification will include the device, its operating

system, the pre-loaded applications, and the browser of the device.

APPS , NEXT -GEN DEVICES AND SERVICES NSDC and Google Creates Android Course The National Skill Development Corporation (NSDC) and Google India has created an Android skill development programme to enhance the quality of the mobile app development ecosystem in India. ▪ The 100-hour course will be designed and delivered by NSDC partner agencies. Snapdeal-Flipkart Deal Falls Through

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 26

Even though Snapdeal’s board has accepted Flipkart’s revised takeover offer of around USD950m, the deal eventually collapsed as Snapdeal decided to pursue "an independent path" towards “Snapdeal 2.0.” The company sold its mobile payments business, FreeCharge, for USD60m to improve its financial standing. Impact Analysis: India’s e-commerce sector is in the midst of a fierce war for

supremacy between Amazon and homegrown player Flipkart as more and more Indians shop online thanks to the availability of cheap phones and data plans. The proposed takeover of Snapdeal could have provided Flipkart an advantage in its battle with Amazon.

RBI Approves NPCI as Bharat Bill Payment Central Unit RBI permitted the National Payments Corporation of India (NPCI) to function as the Bharat Bill Payment Central Unit and operate the Bharat Bill Payment System (BBPS), which manages utility, direct-to-home television and telecom bill payments. ▪ There are 24 Bharat Bill Payment Operating Units certified by NPCI. The certified units

include three public sector banks (Bank of Baroda, Union Bank of India and Indian Overseas Bank), 10 private sector banks, five cooperative banks and six non-bank biller aggregators.

▪ A customer will be able to pay several bills at a single location through BBPS, and receive instant confirmation once payment is made.

PayPal Opens Two Innovation Labs in India PayPal has opened two development centres in Chennai and Bangalore to focus on machine learning, artificial intelligence, IoT, wireless communication, augmented/virtual reality, computer vision, and robotics. The Indian launch was motivated by the availability of tech talent, the local start-up ecosystem and the rise of fintech boosted by NPCI. ▪ PayPal also has an incubator for fintech start-ups in Chennai.

ACCESS NETWORKS TRAI Releases Consultation Paper on Planned 4G,5G Spectrum Auction TRAI released a public consultation paper on spectrum auction for the 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz, 2500MHz, 3300-3400MHz and 3400-3600MHz bands. Among other things, the paper lists recommendations on auction timing, auction approach, block sizes, minimum quantity for bidding, quantum of spectrum, obligations to roll-out network, spectrum cap, valuation of spectrum, and reserve price estimation. ▪ Comments are due by 25 Sep and counter-comments by 3 Oct. ▪ The spectrum sale may provision 60% of unsold airwaves from last auctions and some

275 units of new spectrum in bands identified for 5G services in the 3300-3400MHz and 3400-3600MHz bands.

BSNL Asks for Licence Extension State-owned BSNL asked for a two-year extension of its mobile licence and spectrum till 2022. BSNL’s sister company MTNL, which operates in Delhi and Mumbai, also appealed to have its licences extended by two years till Jan 2021.

ABBREVIATIONS BSNL: Bharat Sanchar Nigam Limited DoT: Department of Telecommunications MeitY: Ministry of Electronics and IT

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 27

MTNL: Mahanagar Telephone Nigam Limited RBI: Reserve Bank of India TRAI: Telecom Regulatory Authority of India

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 28

I N D O N E S I A

ICT POLICY AND PREFERENCES Kominfo Releases Draft Regulation on OTT Kominfo released and held a public consultation on its draft regulation on OTT aimed at increasing collected taxes, particularly among foreign OTT providers. ▪ According to the draft regulations OTT service providers are required to: 1) have a

permanent establishment in Indonesia so that the govt can tax the providers; 2) register with Kominfo; 3) establish a customer service centre that will respond to complaints within 48 hours; 4) maintain traffic data for three months; and 5) use the National Payment Gateway (NPG) for paid OTT services.

Impact Analysis: If implemented, SMEs will be impacted the most as the cost for foreign OTT service providers will increase, which may be passed on to SMEs.

Govt Releases E-Commerce Roadmap The govt has released an e-commerce roadmap or Presidential Regulation No.74/2017, after announcing it in the 14th Economic Policy package in Nov 2016. ▪ A steering committee will be formed to coordinate the roadmap, led by the

Coordinating Minister for Economic Affairs. ▪ The regulation is in line with ongoing discussions on OTT and NPG and covers 1)

funding; 2) taxation; 3) consumer protection; 4) education and human resource; 5) communication infrastructure; 6) logistics and 7) cybersecurity.

Impact Analysis: The impact of the roadmap is not known. Many programmes are listed as part of the roadmap with a deadline of end of 2017, although it is unlikely the govt will complete the execution of these programmes by its targeted dates.

Supreme Court Rules Against Ride-hailing Regulation The Supreme Court has ruled that elements of the Transport Ministry’s Ride Hailing Regulation (No.32/2016 and No.26/2017) impede competition particularly for micro businesses. ▪ Minimum and maximum tariffs on ride-hailing services no longer apply. ▪ There is no limit to the number of ride-sharing vehicles that can operate in a region. ▪ The Transport Ministry has until 1 Nov to comply with the decision, but may use other

avenues to minimise the losses of taxi companies. Kominfo Defines Types of LTE Devices that Need to Fulfill Local Content Requirement Kominfo clarified the types of devices that are required to fulfill the local content requirement rule set in 2015. The devices are: 1) base station with harmonized system code HS 85176100; 2) mobile phone (HS85171200); 3) tablets and laptops (EX84713090); and 4) modem (HS85176241).

PRIVACY AND SECURITY Indonesia to Cooperate with Singapore on Cybersecurity Mr Wiranto, the Coordinating Minister for Political, Legal and Security Affairs, announced that he is keen to work with Singapore on counter-terrorism and cybersecurity given the country’s newly set up National Cyber and Encryption Agency (BSSN). ▪ No firm details on the cooperation have been released.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 29

APPS , NEXT -GEN DEVICES AND SERVICES Kominfo Re-opens Access to Telegram Kominfo has lifted the block on the web-version of messaging service Telegram after the latter agreed on procedures to screen negative content that is closely related to radicalism and terrorism. Telegram will also be required to appoint a representative to communicate with the govt. Twitter, Facebook and Google Partner with Govt to Censor Negative Content The Internet firms have partnered with Kominfo to implement separate programmes to combat fake news. ▪ Twitter will act on tweets that imply violent threats, self-harm, impersonation or spam. ▪ On Google, administrators within Kominfo have been given the “Trust Flagger” status,

which allows them to mark content on YouTube as “negative”. YouTube will assess the need for the content to be taken down.

▪ Facebook will open an office in Jakarta by Aug, establishing specific business activities as required by regulations for the type of business run by Facebook. It will also block all pornographic content.

Impact Analysis: Kominfo is actively working with social media companies to block negative content that incites violence or disunity within society, with the aim of fighting radicalism in the country. Through this effort, it hopes to reduce “fake news” in Indonesia that has seen an increase since Jakarta’s gubernatorial election in Apr.

ABBREVIATI ONS Kominfo: Ministry of Communications and Information Technology

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 30

J A P A N

ICT POLICY AND PREFERENCES MIC to Develop Japanese Language AI Chat System The MIC wants to work with private companies to develop a communications system that utilises artificial intelligence to fully understand the Japanese language, and aims to begin feasibility testing in 2018 with the goal to launch in 2020. ▪ The new system will be based on an existing system owned by the National Institute of

Information and Communications Technology (NICT), which falls under the communications ministry.

Govt Trials Teleworking in Preparation for Tokyo 2020 Olympics The trial teleworking campaign held for 60,000 people from about 1,000 companies based in the Tokyo metro area is meant to trial the viability of a “telework” day on 24 July 2020 to ease traffic congestions for the opening ceremony of the Tokyo 2020 Olympics. ▪ The govt plans to set 24 July as a "telework day" every year through 2020 and carry out

the large-scale campaign each year, but is also aiming to encourage broader work-style reform at more companies to encourage teleworking.

APPS , NEXT -GEN DEVICES AND SERVICES Alliance to Promote IoT in Factories Launched The Flexible Factory Partner Alliance promotes the use and adoption of wireless systems and IoT in factories and manufacturing facilities through the formulation of new standards for coordination control technology. ▪ The group consists of seven Japanese companies and research institutions including

NEC, Fujitsu, Omron, Sanritz Automation, Murata Machinery, Kyoto-based Advanced Telecommunications Research Institute, and the Tokyo-based National Institute of Information and Communications Technology.

Local Companies Prioritize AI, IoT for Investment R&D chiefs at 307 major companies have rated AI and IoT as the top areas for investment to boost their local competitiveness according to a Nikkei survey. Impact Analysis: While Japanese firms were once heralded as the hallmark of

technological innovation, they are now trailing behind western and other Asian markets in terms of innovation. While such surveys are indicative of where Japanese companies may be investing their R&D funds, they remain consistent with global investment priorities, and Japanese firms may need to consider investing into other areas where there is less competition so as to gain a comparative advantage.

Alibaba Offers Marketing Tool for Local E-commerce The Uni Marketing tool analyses user data to identify customer profiles who are more likely to respond positively to marketing efforts. The tool aimed to help local companies expand their reach in China, is being offered on a trial basis to a number of Japanese companies and will be fully launched in 2018. ▪ Alibaba is also planning to offer a localized version of its Alipay m-payment platform

next year and will work with Japanese banks on the rollout. Impact Analysis: M-payment platforms Alipay and WeChat Pay are hugely successful

and dominant in China but is uncertain if they will be able to replicate their success in a

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 31

strongly nationalistic country like Japan who is more likely to back a local service provider.

Sharp Offers “Matchmaking” Service for IoT Start-ups and Manufacturers The matchmaking platform helps to pair IoT start-ups with manufacturers willing to share underutilized manufacturing equipment suited for the former’s product and mass production needs. SMFG, Yahoo Japan Form Big Data Fintech JV The JPY300m (USD2.71m) joint venture by Sumitomo Mitsui Financial Group (SMFG) (49%) and Yahoo Japan (51%) will utilize data collected from SMFG with Yahoo Japan's analysis tools to look for patterns to develop innovative fintech services. ▪ Sumitomo Mitsui Banking Group has also introduced biometric authentication to allow

customers to login and make balance inquires or money transfers with their fingerprints, voice or face on their smartphones.

Fujitsu Partners with Telekomunikasi Indonesia on Digital Opportunities The two companies signed an MoU to work together on digital businesses including the use of IoT for smart cities, healthcare, manufacturing and logistics. Joint initiatives will start from market research, planning and review of digital solutions that utilize the companies' respective strengths for the co-creation of digital businesses. Amazon Japan Removes Lowest Price Clause on E-books The clause had previously required e-book publishers to market e-books on Amazon at the lowest price when compared to other online rival sites such as Rakuten. Amazon has removed the clause after pressure from the Fair Trade Commission that such practises undermine fair competition. Tone Mobile Smartphone Auto-locks to Restrict Screentime The JPY34,800 (USD312) Tone m17 smartphone is meant to restrict elementary school students' screen time offering a function to be automatically locked between 10 p.m. and 6 a.m. as default, although parents will be free to customize the actual lock periods. SoftBank Partners Ofo to Launch Bike-sharing Scheme Japan is China’s Ofo’s seventh overseas venture, after already expanding into Singapore, the United States, Britain, Kazakhstan, Thailand and Malaysia. The bike-sharing platform will be initially rolled-out in Tokyo and Osaka in Sep before further rollouts across the country.

ACCESS NETWORKS KDDI Acquires MVNO Soracom for Low-cost IoT Services The acquisition of Soracom’s outstanding shares will cost KDDI an estimated JPY20bn (USD181m). Soracom serves about 7,000 companies including construction machinery maker Komatsu, office solutions provider Konica Minolta and taxi service operator Nihon Kotsu providing IoT services on NTT DoCoMo’s communication network. JPIX Extends Service to Equinix Osaka Data Centre Japan Internet Exchange Co (JPIX) will peer with Equinix’s International Business Exchange (IBX) data centre in Osaka to improve connectivity and reduce the costs of network traffic exchange.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 32

ABBREVIATIONS MIC: Ministry of Internal Affairs and Communications

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 33

L A O S

ACCESS NETWORKS LTC and NSB Enhance Cooperation on Network Expansion Project LTC and Nokia Shanghai Bell (NSB) signed a MoU to cooperate on the LTC network expansion project and 5G. ▪ NSB will provide LTC with a 5G FDD LTE product, IP project and services to support

LTC’s network extension deployment and signal coverage improvement. ▪ NSB and LTC are also expected to cooperate in the areas of 5G including NB-IoT, VR,

cloud in addition to 2G/3G/4G services.

ABBREVIATIONS LTC: Lao Telecommunications Company

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 34

M A L A Y S I A

CLOUD Alibaba Cloud to Establish Digital Hub As part of the Electronic World Trade Platform (eWTP) initiative to assist start-ups and SMEs in becoming digital, Alibaba will offer the Alibaba Cloud Certified Professional certification programme, one-on-one cloud consulting services and customised technology solutions.

ICT POLICY AND PREFERENCES Govt Legalises E-Hailing Services The govt has amended the Commercial Vehicles Licensing Board Act 1987 to legalise e-hailing services including Grab and Uber. ▪ E-hailing services are required to apply for an intermediation business license from the

Land Public Transport Commission (SPAD) in Peninsular Malaysia or Commercial Vehicles Licensing Board (CVLB) in Sabah and Sarawak.

▪ Vehicle checks are to be conducted once every six months; vehicles less than three years are exempted from the checks.

▪ Service operators are given a grace period of a year to comply with the requirements of the bill.

APPS , NEXT -GEN DEVICES AND SERVICES TM to Offer Netflix in Oct TM will offer the Netflix service to its subscribers from Oct onwards. ▪ The details of the service, such as how to subscribe and prices, have yet to be revealed.

ACCESS NETWORKS webe Partners with iBasis for LTE Signalling and Roaming Services TM subsidiary webe has connected to iBasis’s LTE Signaling eXchange, which will offer subscribers roaming services over 480 networks in 170 countries.

ABBREVIATIONS TM: Telekom Malaysia

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 35

M Y A N M A R

APPS , NEXT -GEN DEVICES AND SERVICES Grab Launches Full Service After a four-month trial, Grab launched its full service in Yangon and plans to expand elsewhere in the country. It will create pickup points for people without smartphones. ▪ It currently has 5,000 drivers signed up for the app. Telenor Partners with Hmawbi University for Training Telenor partnered with Hmawbi University to train students in technology and make them more capable to enter the workforce. ▪ More than 400 students are actively participating in the programme. Drones to Replant Mangroves to Reduce Farmland Loss The Worldwide International Foundation will use drones to replant mangroves that have been lost in the last decades. The mangrove loss is tied to a decrease in rice production and an increase in vulnerabilities to natural disasters such as flooding or cyclones. ▪ A single drone can plant up to 100,000 trees in one day.

ACCESS NETWORKS LTE+ Goes Live in Three Cities Myanmar Posts and Telecommunications (MPT) launched LTE+ in Yangon, Mandalay and Nay Pyi Taw to double the speed of mobile Internet. ▪ Plans are in the works to cover 30 of the largest cities by Nov 2017.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 36

N E W Z E A L A N D

CLOUD HealthOne Expands Across South Island The cloud-based electronic health records system stores most South Island patient records and is used to improve health outcomes for one million New Zealanders. ▪ Pegasus Health and Orion Health are the technical providers. ▪ Medical information can now be shared securely between different institutions and

district health boards (DHBs). Qrious Launches LoQal Destinations It is a big data service for the tourism industry that lets businesses gain insight on visitor flows and travel patterns. Warehouse Group Adopts Cloud Business Software from Zoho It will get access to more than 30 business applications provided by Zoho at a fixed per-employee price per month. ▪ According to Dimension Data’s Digital Workplace Report: Transforming Your Business,

staff resistance is a major barrier to creating a digital workplace. Impact Analysis: The most innovative companies in New Zealand have a digital focused

leadership team who are effecting change within their companies through digital transformation initiatives.

ICT POLICY AND PREFERENCES MBIE Launches Updated Plan for the SSIF The new plan for the Strategic Science Investment Fund (SSIF) includes NZD21m (USD15m) for the Research Education and Advanced Network New Zealand (REANNZ) and NZD19.5m (USD14m) for natural hazards research. Impact Analysis: SSIF is funding long-term impact collaborative and borderless

scientific research.

2017 ICT Sector Report Launched There are today 10,700 more computer system design jobs compared to 2010. Computer services businesses spent NZD436m (USD319m) on R&D in 2016. ▪ MYOB has also released its State of Start-Ups report. It notes New Zealand’s start-up

ecosystem is a healthy one but the govt can do more to nurture homegrown entrepreneurs. 17% of New Zealand start-ups still find access to funding difficult.

Impact Analysis: The ICT sector in New Zealand is growing fast and starting to attract overseas investment.

ComCom Warns Four Telcos about Breaches to Fair Trading Act MyRepublic, Two Degrees, Spark, and Vodafone have been warned about confusing consumers when it comes to product offerings and billing failures. Impact Analysis: The telecom sector is a source of many consumer complaints.

Govt Issues Competition Paper

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 37

In Promoting Competition, New Zealand lays out its commitment to deter anticompetitive practices. ComCom will be empowered to carry out more reviews of sectors to stamp out cartel-like behaviour. ▪ The Commerce (Cartels and Other Matters) Amendment Bill that has been passed will

allow firms a wider range of collaboration to produce goods at a lower cost. A clearance regime will be formed to let firms test their proposed collaboration.

Impact Analysis: Competition is fundamental to a healthy and thriving economy. New forms of monopoly are starting to form in the tech world.

Parliament is Looking at Tax Treaty to Prevent Base Erosion New Zealand wants to update its tax treaties through a multilateral convention to be in line with OECD recommendations about stopping MNC tax dodges. ▪ Govt estimates it will be able to collect an additional NZD200m (USD146m) per year

from MNCs after it implements changes to strengthen its tax rules and tax collection ability.

Impact Analysis: MNCs have long taken advantage of different tax regimes to shit profits around and evade their tax responsibilities. Govts are now fighting back.

Telecommunications (New Regulatory Framework) Bill Introduced The bill will modernize telecom regulations, removing copper network regulation by 2020 where fibre broadband is available. ComCom will be required to file regular reports on retail service quality. ▪ The Telecommunications Users Association of New Zealand (TUANZ) wants ComCom to

begin a review of the mobile telecommunications market because it believes the lack of MVNOs is hurting competition and innovation.

Impact Analysis: The UFB will now have a more predictable utility regulation model as users shift to fibre connectivity. The model aims to connect New Zealanders with high-speed broadband access at fair prices.

Govt Releases Decoding Diversity Paper It is a guide from the Ministry for Women for how organisations can better attract more women to the tech sector and empower them. ▪ Women in New Zealand make up only 23% of the local ICT sector workforce. ▪ RWA Technology People’s inaugural Auckland IT Salaries Report re-affirms a low

representation of women in ICT and that women receive a lower median base salary compared to their male colleagues.

Impact Analysis: The gender gap in the ICT sector remains a difficult thing to close. Flexible work practices could be one way to creating more diverse and inclusive workplaces.

Data Futures Partnership Issues Data Sharing Guidelines It is an independent ministerial advisory group. The guide it has issued will help public and private organisations build policies and practices to better share data while not hurting public trust. ▪ The Partnership worked with Massey University to publish the report Our Data, Our

Way. ▪ It has also worked with Tuhono Trust for a report to engage with Maori, Sharing

Information for Wellbeing. ▪ The Partnership has built an online knowledge sharing tool, the Transparent Data Use

Dial.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 38

Impact Analysis: The Partnership brings together a cross-sector group of data experts to speak in a collective voice.

InternetNZ Creates Digital Divide Map It collaborated with the 20/20 Trust and Data Futures Partnership to create the interactive map, which shows broadband access and availability across New Zealand. Impact Analysis: The map is a helpful visualisation for policy makers of where the

digital divides in New Zealand exist.

Callaghan Innovation Publishes inCite Report The report warns AI and automation in a technological “tsunami” could see half of New Zealand jobs disappear in the next decade. ▪ Callaghan Innovation is also looking to fund Better by Lean pilot projects and

workshops that look at ways to help New Zealand businesses grow. Submissions were due by 29 Aug.

Impact Analysis: The coming technological wave will see many companies in New Zealand go under if they do not change and adapt. It is both a threat and an opportunity.

IPR Kim Dotcom to Appeal High Court Judgement The court has ruled to deny him access to his personal communications which were illegally intercepted by the Govt Communications Security Bureau (GCSB). Impact Analysis: Dotcom and his political party, the Internet Party, want to facilitate a

debate about mass surveillance in New Zealand.

PRIVACY AND SECURITY CERT NZ Releases First Cybersecurity Threat Landscape Report 364 cybersecurity reports were made to CERT NZ in its first three months of operation. Phishing and malware attacks account for 34% of reports submitted. More than NZD730,000 (USD535,000) was lost. ▪ In the latest ITU’s Global Cyber Security Index, New Zealand comes in at 19th globally,

fifth in Asia. Impact Analysis: For the first time there is a central place for people in New Zealand to

report cybersecurity incidents.

APPS , NEXT -GEN DEVICES AND SERVICES MPI Release New Online Teaching Resources The Ministry for Primary Industries (MPI) has created a set of resources for teachers to use to help their students learn about animal welfare, biosecurity, and food systems. ▪ Primary industries account for 70% of New Zealand’s exports. Ministry of Health Starts Social Media Health Tracking Project It is looking at monitoring unconventional data sources as a way to help predict disease outbreaks and improve medical responses to epidemics.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 39

▪ The Ministry of Health also plans to, through an RFI, acquire information it needs to complete the Indicative Business Case for the national Electronic Health Record project. The RFI has a closing date of 15 Sep.

Impact Analysis: Social media can help detect and potentially prevent the spread of infectious diseases.

InternetNZ Releases Research on Internet Perceptions

64% of New Zealanders worry about the amount of “fake news” available online. 74% of New Zealanders worry too about cyber-bullying, while 73% said access to information is one of the main benefits of being online. Impact Analysis: New Zealanders still overwhelmingly believe in the potential of the

Internet despite some qualms.

Blockchain to Preserve Oral Storytelling of Maori Culture The University of Waikato is looking at blockchain to securely store Maori stories in digitized form as part of an NZD200,000 (USD146,000) grant to investigate blockchain applications. Projectr Officially Opens It is a virtual and mixed reality centre and workspace in Wellington. Tenants include Mixt, ShowHow VR, Synty Studios, BeVR, Swibo, StaplesVR, Imersia, the New Zealand VR/AR Association, and the New Zealand Game Developers Association. Mastercard Launches Contactless Technology Campaign Working with the Australasian Acceptance Development Fund it has created the website www.switchonnz.co.nz to help retailers move into contactless payments. ▪ In its Perceptive Omnibus survey, Mastercard found more than half of respondents use

contactless tech at least once a week. Impact Analysis: Consumers are expressing a desire for contactless payment options.

Govt, Institutions and Industry Develop ICT Education Different schools, the Ministry of Education, and industry are collaborating in new and different ways to improve digital fluency amongst New Zealand’s school children. Helping young people from disadvantaged backgrounds is a priority. ▪ The South Island ICT Graduate Network and Laboratory (SIGNAL) has opened sites in

Christchurch and Dunedin. ▪ The NZD110,000 (USD81,000) Youth Digital Enterprise Awards scheme is accepting

applications from young people aged 12-18 who have an entrepreneurial project. ▪ Ministry of Education is finalizing its NZD6m (USD4.4m) Digital Technology for All

Equity Fund, which will be open to proposals from technology providers starting in Sep. Online Trade Portal Launched The portal aims to help New Zealand exporters overcome non-tariff barriers (NTBs). Inquiries will get a response within 48 hours. ▪ The govt has agreed on a negotiating mandate for Trans-Pacific Partnership 11 (TPP11),

that will potentially reduce tariffs on New Zealand exports. It will present its proposal at an APEC meeting in Vietnam in Nov.

Impact Analysis: The portal intends to improve access to international markets for New Zealand businesses and is part of Trade Agenda 2030.

Fuji Xerox Stops Sales to Govt

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 40

Fuji Xerox New Zealand has been marred by a financial misconduct scandal and has decided to temporarily suspend new sales and marketing activities to govt agencies. It has three all-of-govt (AoG) contracts for the provision of printing services.

ACCESS NETWORKS Simplified Radio Spectrum License Fees to Start 1 Oct The Radio Spectrum Management (RSM) will institute the changes that will see the majority of 3,000 license holders experience a decrease in their fees. 47 license categories have been pared down to 4. ▪ The RSM has deployed new 40GHz interference tracing equipment as it kicks off a

program of license audits. Impact Analysis: The new licensing regime is aimed at an even more efficient and

effect management of radio spectrum.

Quarterly Broadband Update Available 1.2 million homes and businesses now have access to UFB, with phase one deployment now 80% complete. The target is to connect 1.5 million homes and businesses by 2019. Impact Analysis: Demand for UFB connectivity remains strong.

2degrees Selects Chorus as Primary Backhaul Provider 2degrees has signed a multiyear contract with Chorus for its national 100Gbps backhaul service connecting to UFB points of presence and major data centres. SCCN Completes Route Survey for USD350m Southern Cross NEXT Cable Southern Cross Cable Network (SCCN) has finished the 15,000km seabed survey for the cable that will link New Zealand and Australia to the US. It has “signed intent” from eight customers. Impact Analysis: The route being planned will reduce latency on what will possibly be

the lowest latency route to the US.

Crown Fibre Rebrands as Crown Infrastructure Partners (CIP) The rebrand of the company building the UFB is to set up special purpose units to build and own trunk infrastructure for large-scale housing developments. ▪ With large parts of the UFB complete, the company is getting ready for a new role. Impact Analysis: Crown Fibre helped de-risk the early stage of investment and let

private sector investors come in at the more mature stage of investment.

ABBREVIATIONS CERT: Computer Emergency Response Team ComCom: Commerce Commission MBIE: Ministry of Business, Innovation and Employment UFB: Ultra Fast Broadband

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 41

P H I L I P P I N E S

CLOUD ADB Funds Cloud Banking Pilot The Asian Development Bank (ADB) and Cantilan Bank, in partnership with software provider Oradian, have launched a pilot project on cloud-based core banking technology in the southern Philippines. ▪ Backed by a USD150,000 ADB grant, Cantilan Bank will use Oradian’s cloud-based

banking technology to demonstrate how digital services can unlock financial opportunities for the unbanked and underserved segments of the population.

SAP Launches IoT Solutions for Local Businesses Global software manufacturer SAP has launched its portfolio of IoT solutions in the Philippines. ▪ These new solutions include the SAP Leonardo IoT Bridge, which is a configurable role-

based digital command centre giving operations managers visibility and ability to act in real time, and SAP Global Track and Trace, a cloud based offering for unified, end-to-end tracking, monitoring and reporting of objects and business processes across supply chain networks.

ICT POLICY AND PREFERENCES Senate Commits to Reforming Telco Sector The Senate has approved a report the Gatchalian Report (Chaired by Senator Gatchalian) that identifies three crucial problems in the telco sector: 1) the weakness of the NTC as industry regulator; 2) the lack of genuine competition; and 3) a flawed spectrum management system. ▪ For the NTC, the report recommends an expansion of the scope of its regulatory

powers, the establishment of fixed tenure for its commissioners, and the grant of greater fiscal independence to insulate the body from external influences.

▪ For competition, the report recommends a Mobile Number Portability (MNP) scheme. ▪ On spectrum, the report notes the "monopolization" of so-called "workhorse

frequencies" (used to provide essential voice call and SMS services) by Globe and Smart as one of the big factors hindering genuine competition in the telco industry, leading to “abuses” such as the non-utilization of spectrum allocated to improve service, and private spectrum trading between telco players. A more transparent and competitive system of spectrum assignment is proposed as well as refarming.

Ministers Calls for Lifting Foreign Ownership Limits The Economic Planning Secretary, Ernesto Pernia, has called for raising the limits on foreign ownership of Philippine utilities, including telecom companies, from 40% to 70%, in order to attract foreign direct investment. Crypto-currencies on the Rise The Bangko Sentral ng Pilipinas (BSP) is monitoring a rising trend in the use of virtual (or crypto) currency (VC) exchanges of remittance and transfer companies (RTCs) and are reviewing registration applications of VC or bitcoins users. ▪ BSP has so far registered two VC exchanges trading in bitcoins, and these are local

companies with international operations.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 42

▪ BSP will consider VC exchanges as transacting money or value transfer services and as per BSP rules on money businesses, these will be categorized as RTCs.

▪ The use of bitcoin transactions has risen from USD2m in 2015 to USD6m in 2017.

PRIVACY AND SECURITY DICT to Draft Cybersecurity Equipment Standards The DICT is drafting an order covering the standardization of equipment to be used for cybersecurity. DICT will consult with vendors before issuing the standard. ▪ The order is part of the implementation of the National CyberSecurity Plan 2022

(NCSP). ▪ Kaspersky data showed the Philippines as among the most attacked by mobile malware

and also one of the countries most vulnerable to cyberterrorism attacks. Philippines Slips Down Cybersecurity Index Philippines ranked 37 out of 164 countries for cyber-security readiness in the ITU’s 2017 Global Cybersecurity Index (GCI). ▪ This is a notable fall from its rank of 17 in 2015. ▪ The GCI measures against five categories: Legal, technical, organizational, capacity

building and cooperation and sharing of information.

APPS , NEXT -GEN DEVICES AND SERVICES Globe, Davao Norte LGU Push Cashless Ecosystem Globe Telecom has partnered with the local govt of Davao del Norte for the creation of a govt ID card that can also be used to pay taxes, goods and services using Globe's GCash platform. ▪ The card will be available to residents and govt employees in Davao del Norte. The

telco estimated that more than 300,000 residents of Tagum City and Carmen would benefit from the project.

LTFRB Sanctions Uber but Uber Resists The LTFRB has suspended Uber’s services for failing to halt the registration on new drivers. ▪ The LTFRB proposed limiting the number of vehicles used for transport services and

requiring a minimum number of hours of operation for drivers. ▪ Uber has countered that it has been receiving applications but not registering them,

and that the regulations would reduce the earnings of 60% of its drivers that drive on a part-time basis.

▪ Uber vowed to keep operating ride-hailing services in the Philippines despite a one-month suspension imposed by regulators, and authorities responded by threatening to arrest Uber drivers.

LTFRB Asks DICT to Close Taxi-App of Arcade City The LTFRB has sought the assistance of the DICT to disconnect US ride-sharing service Arcade City’s taxi-booking app from the mobile network. ▪ LTFRB said no application was filed to the LTFRB that would make it a transportation

network company (TNC). Micab Launches in Manila Micab recently launched a taxi-hailing app in Manila without approval from the LTFRB.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 43

▪ Unlike Uber and Grab, Micab, which has been in operation in Cebu for two years, does not add cars to the road, but uses existing taxis. It does not use surge pricing either.

Makati Eyes Becoming “Smart City” Makati City has entered into public-private partnership (PPP) contracts to turn itself into a smart city. ▪ Five digital projects have been agreed: 1) a fibre optic loop which will support a free

Wi-Fi network; 2) the installation of mobile-signal boosters to strengthen cellular and Internet connectivity; 3) the Makatizen card promoting e-currency and online payment; 4) city-wide towing, impounding and clamping that will allow online payment; and 5) e-Payment at Jollijeeps using the Makatizen card.

PayMaya Pushes Cashless-Transaction Solutions PLDT subsidiary PayMaya has rolled out mobile payment technologies in over 350 business establishments enabled by Smart Wi-fi. ▪ PayMaya also started rolling out PayMaya Scan-to-Pay, the country’s first QR code-

enabled mobile payment system, in May.

ACCESS NETWORKS Globe Launches USD250m Submarine Cable System Globe Telecom has launched the USD250m (PHP128tn) Southeast Asia-United States (SEA-US) submarine cable system that will provide direct high-speed internet connection between Davao and the United States. ▪ The cable is the first by Globe to land in Mindanao. ▪ The SEA-US cable system has a registered 14,500 km scope underwater and uses 100

gigabits per second transmission technology to deliver 20TBps capacity. Smart Upgrades Metro Manila Mobile Network PLDT's mobile unit Smart Communications has upgraded its mobile network in Metro Manila. ▪ A J.P. Morgan Asia Network Quality study found that LTE availability in Metro Manila

has increased from 49% at the start of the year to 63%. ▪ Nationwide, LTE download speeds currently reach 11Mbps, while in Metro Manila

customers can access 12.9Mbps average download speed, in South Luzon 9.5Mbps, and in the Visayas 8.3Mbps.

DOST Free Wi-Fi Project Gets a PHP3bn Upgrade The free Wi-Fi project has received PHP3bn (USD58m) from the Senate to bring Internet connectivity to class 4, 5, and 6 municipalities. ▪ Originally, the Project was designed to cover only town plazas of 748 class 4, 5 and 6

municipalities, with a budget of PHP334m (USD6.5m).

ABBREVIATIONS DICT: Department of Information and Communications Technology DOST: Department of Science and Technology LGU: Local government unit LTFRB: Land Transportation Franchising and Regulatory Board NTC: National Telecommunications Commission

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 44

S I N G A P O R E

ICT POLICY AND PREFERENCES MAS Establishes Payments Council The MAS has established a Payments Council, comprising 20 leaders from banks, payment service providers, businesses, and trade associations. ▪ The setting up of the Payments Council is part of a series of initiatives MAS is taking

towards realising the vision of an e-payments society in Singapore. Impact Analysis: This is part of a larger govt push towards building a strong payments

industry, promoting interoperability among e-payments solutions, and developing strategies for a strong e-payments ecosystem.

MAS to Regulate Digital Tokens in Singapore Since the increase in the number of initial coin (or token) offerings (ICOs) in Singapore as a means of raising funds, MAS has clarified that it will regulate the offer or issue of digital tokens if the digital tokens constitute products regulated under the Securities and Futures Act (Cap. 289) (SFA). ▪ Where digital tokens fall within the definition of securities in the SFA, issuers of such

tokens would be required to lodge and register a prospectus with MAS prior to the offer of such tokens, unless exempted.

▪ Issuers or intermediaries of such tokens would also be subject to licensing requirements under the SFA and Financial Advisers Act (Cap. 110).

▪ In addition, platforms facilitating secondary trading of such tokens would also have to be approved or recognised by MAS as an approved exchange or recognised market operator respectively under the SFA.

Impact Analysis: With the rise of digital currencies, the traditional lines of regulation become blurred. It is timely for MAS to clarify its position on the regulation of digital tokens in the country.

National Digital Identity (NDI) System Under Development The Smart Nation and Digital Government Office (SNDGO) said the NDI framework will allow citizens and businesses to transact online in a convenient and secure manner. This is alongside four other thrusts: 1) E-payments, 2) the Smart Nation Sensor Platform, 3) smart urban mobility and 4) Moments of Life. ▪ Singaporeans have already been using SingPass for key transactions with Government

agencies, and NDI will be building on the SingPass system, ▪ The NDI system is planned to be operational in three years’ time, with progressive

trials for digital signatures to facilitate paperless transactions, the agency said. ▪ GovTech will also work with the private sector to develop a variety of value-added

services which will make use of the NDI. These include signing of digital agreements, secure storage of digital documents and building access control so as to facilitate industry innovations and drive widespread adoption in five years’ time,

Ministry of Education to Launch E-learning Portal in 2018 The Singapore Student Learning Space (SLS) e-learning portal is currently being piloted at 62 primary and secondary schools, with the aim to roll-out in phases to all schools from 2018. ▪ The SLS will allow students to learn at their own pace, revisit concepts and read up on

other areas of interest through a range of interactive resources such as videos, animations, simulations, games and quizzes.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 45

▪ Teachers will be able to use the portal to better design learning experiences that promote critical thinking and teamwork among their students. Teachers will also be able to share lesson ideas within and across schools, allowing students to benefit from the wider range of resources.

IMDA Working with Telcos and Banks to Help SMEs Go Digital The three local telcos, together with four banks, have signed Memoranda of Intent (MOI) with IMDA to support Singapore's SMEs Go Digital programme. ▪ M1, Singtel and StarHub will provide local SMEs a one-stop service through digital

technology-bundled packages. ▪ DBS Bank, Hong Leong Finance, Oversea-Chinese Banking Corporation (OCBC Bank) and

United Overseas Bank (UOB) will provide access to financial instruments to SMEs such as bridging loans to help defray costs when investing in building new capabilities.

▪ Banks will also work with business leaders to launch innovative solutions with SMEs and industry partners.

▪ Launched in Apr 2017, the SMEs Go Digital programme helps advise SMEs on the adoption of digital technologies at each stage of their growth as well as to boost productivity.

Impact Analysis: Collaboration with telcos and banks will further propel SMEs’ adoption of digital and innovative solutions to their businesses, enabling them to scale up and compete in global markets.

Smart Nation Needs to Focus on Integrating Systems E-payments, public safety and security, and building digital skills were the focus of Prime Minister (PM) Lee Hsien Loong’s National Day rally speech identifying where Singapore needed to better integrate services. ▪ PM Lee cited the lack of interoperability of “too many different e-payment schemes

and systems” as a key reason for the low adoption rate of e-payments. ▪ An integrated sensor network where CCTVs in public flats would be able to

communicate with other sensors such as for water level monitoring was also not currently available in the country with aims to be the world’s first Smart Nation.

▪ There is also a need to groom digital skills for future professionals while ensuring senior citizens and the less-tech savvy were not left behind.

PRIVACY AND SECURITY PDPC Opens Consultation on PDPA The Personal Data Protection Commission (PDPC) has opened a public consultation seeking views on the proposed Notification of Purpose and Legal or Business Purpose approaches as parallel bases for collecting, using and disclosing personal data, and the proposed mandatory data breach notification regime under the Personal Data and Protection Act (PDPA). ▪ These proposals are part of the PDPC's review of the PDPA. Impact Analysis: With the fast-changing landscape of the digital economy, PDPC needs

to review its consent-based approaches to personal data protection to ensure the privacy and protection of users whilst at the same time, not stifling businesses and innovation.

Biometric Payments for Schools in 2018 POSB Bank is working with schools and the Ministry of Education to allow students to make purchases using their fingerprints, as well as manage their money using a digital

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 46

smartwatch. The POSB Smart Buddy programme aims to help parents monitor and supervise their children’s spending. ▪ Fingerprint information will not be stored on the device but will instead be encrypted

and stored securely in a cloud database. ▪ The POSB Smart Buddy programme has already been launched in 19 primary schools to

allow students to make payments using smartwatches.

APPS , NEXT -GEN DEVICES AND SERVICES Amazon Prime Launches in Singapore As part of its Southeast Asia expansion drive, Amazon has launched its Prime Now service in Singapore, with delivery services promising two-hour delivery on thousands of items including groceries and electronics. ▪ At present, Singaporeans will not need to pay for subscription to use the service. ▪ Singapore is seen as a launching pad for many e-commerce giants trying to take on the

wider Southeast Asian region, where the potential market of 600 million people is estimated to be worth USD700bn.

Impact Analysis: Amazon may face some resistance in its Southeast Asian expansion as the individual markets vary greatly from one another. Further, Alibaba already begun building its presence in the region and might be a tough e-commerce rival to tackle. While Amazon’s value-add is its two-hour delivery service, it has been facing teething problems of handling the overwhelming demand upon its launch resulting in complains of unfulfilled orders and longer than expected delivery times.

Parking App to Replace Paper Coupons The govt will launch Parking.sg in Oct to allow motorists to pay for their parking charges, replacing paper coupons which are being used in about 1,150 car parks and kerbside parking spaces. Impact Analysis: While the app will allow motorists to pay more accurate fares, it also

signals an impending replacement of jobs with technology where the need for manual checks by carpark attendants will no longer be necessary.

Taxi Company Introduces Alipay Option for Fares Commuters using ComfortDelGro taxis will now be able to pay for their fares using Alibaba-affiliate m-payment platform, Alipay. ▪ Visitors from China make up Singapore's top-spending travellers and enabling Alipay as

a payment option will make it more convenient for them to pay for taxi rides.

ACCESS NETWORKS Singtel Deploys Massive MIMO in 5G Race The operator will work with equipment manufacturers to deploy Massive MIMO commercially in its LTE-A network, increasing internet speeds by up to 200%. ▪ It will partner with Ericsson, Huawei and ZTE to boost network capacity in highly dense

environments, starting with the Marina Bay area. ▪ It will also use Massive MIMO base stations, featuring a large array of 64 antennas, to

improve spectral efficiency and cell capacity using innovations in radio technologies. Impact Analysis: The massive MIMO deployment will support Singtel in its race to roll

out near-gigabit mobile services using pre-5G technology, targeting 800Mbps LTE-A services in the Orchard area.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 47

M1 Launches Nationwide NB-IoT Network The operator has announced the launch of Southeast Asia's first commercial nationwide narrowband IoT (NB-IoT) network. ▪ Together with its partners, M1 aims to develop IoT solutions in the fields of smart

energy management for buildings, environmental monitoring, asset tracking and fleet management.

Impact Analysis: With investments into IoT, M1 can further drive Singapore’s Smart Nation initiatives as many of the deployments, such as the Smart Nation Sensor Platform will require a strong IoT network and ecosystem.

ABBREVIATIONS IMDA: Info-communications Media Development Authority MAS: Monetary Authority of Singapore

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 48

S R I L A N K A

ICT POLICY AND PREFERENCES MoU for Better Data Collection and Use by Govt The Sri Lanka Parliamentarians Forum for Evaluation and the Information and Communication Technology Agency signed an MoU to develop an environment to collect, use and disseminate data for monitoring, evaluation and decision making at district, provincial and national level. ▪ The project aims to develop comprehensive database and software systems, and

conduct M&E related capacity building programs for govt officials, especially in the district level.

Govt to Resolve Conflict over DBN Licence The govt has intervened to resolve the conflict between Sri Lanka Telecom (SLT) and Dialog Axiata subsidiary Dialog Broadband Network (DBN) over the renewal of DBN’s integrated transmission network licence. The Cabinet Committee on Economic Management has directed SLT and the TRC to end the dispute with an out-of-court settlement. ▪ In 2016, SLT filed a “fundamental rights case” with the Supreme Court against TRC and

DBN concerning the renewal of the latter’s operator licence. ▪ Dialog subsequently filed a case at the Colombo High Court against SLT for “acquiring

its confidential information containing the company’s planned future services including comprehensive network architecture and service delivery architecture design specifications.”

ICTA Training Programmes for Govt Officers The ICTA held a capacity building programme for the staff of the Department of Census & Statistics and TRC on how to collect reliable and internationally comparable ICT data, and on M&E methods to effectively measure outputs as well as outcomes of the digitisation process.

ABBREVIATIONS ICT: Information and Communications Technology ICTA: Information and Communication Technology Agency TRC: Telecommunications Regulatory Commission

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 49

S O U T H K O R E A

CLOUD LG CNS Launches Cloud Integration Services The tech solutions unit of the LG Group provides “cloud integration” services to help clients devise the optimal cloud transition strategy and transition to a new IT system. ▪ After cloud deployment, LG will also help track the cloud usage status to drive down

costs. ▪ LG’s partners include global providers such as Amazon Web Services, Microsoft,

Salesforce.com, Oracle, SAP. LG CNS will offer the private cloud while its partners will offer public cloud services.

ICT POLICY AND PREFERENCES Govt to Increase Telecom Discounts in Sep New subscribers will be able to receive a discount of 20-25% when they sign up for one- to two-year contracts with telcos. The govt aims to help cut the annual household telecom burden of over 190 million subscribers by up to KRW1tn (USD876m). Impact Analysis: It is unclear if the govt will actually be able to push through with its

plans as it is facing strong resistance from the country’s telcos which cite such demands as overly-burdensome. Should the telcos end up suing the govt the policy may end up being delayed indefinitely.

Court Rules in Favour of Samsung Following Note7 Allegations The Seoul Central District Court ruled in favour of Samsung in a class action suit filed by 1,900 owners of the Galaxy Note 7 which had to be recalled by Samsung due to reports of some handsets catching fire while charging. The Note 7 owners sought compensation over personal inconveniences caused by the recall. ▪ The court cited it was hard to believe the inconvenience in the wake of the recall of the

device and the production discontinuation was unacceptable for the plaintiffs. Govt Approves Testing Self-driving Cars on Public Roads SK Telecom is the first to announce its intentions and will use autonomous vehicles based on Hyundai Motor's Genesis luxury sedan in its road tests, and has already started testing 5G technologies for self-driving cars on tracks. ▪ LG has also received approval from the govt and will also develop its autonomous

vehicles with Hyundai Motor‘s Genesis by applying its own sensors and self-driving system.

▪ The Democratic Party’s Rep. Park Young-sun has proposed a law recognizing AI robots as “electronic personalities,” where they would be held responsible for accidents involving self-driving cars.

Impact Analysis: The debate over responsibility in accidents over self-driving cars remains hotly contested among carmakers, academics, policymakers, and industry groups where a consensus still appears far from being reached.

Daegu City Pilots IoT Water Usage Monitoring City officials in Daegu have installed wireless monitoring modules in the tap water meters of 3,649 houses, which use SK Telecom’s IoT network to monitor usage and estimate fees. ▪ Through the pilot, the city hopes to acquire more information on the underground

leakage of tap water.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 50

PRIVACY AND SECURITY South Korea to Draw up Mid-term Cyber Security Plan The Foreign Ministry plans to release a mid-term plan to boost cybersecurity measures and has hired an external consultant to draw up the 2018-2022 cyber security road map by year end.

APPS , NEXT -GEN DEVICES AND SERVICES Naver Launches AI Speaker The “Wave” AI-based speaker comes fitted with Naver’s AI voice-recognition technology Clova, can play music and provide information such as the latest weather and traffic, and control home appliances akin to Amazon’s Echo and Google’s Home. ▪ The Wave speaker, designed with Naver’s Japan-based Line operations will also be

launched in Japan. CJ Logistics Partners Alibaba’s Logistic Subsidiary on E-commerce CJ Logistics signed a MoU with Cainiao to expand and improve supply chain management for goods delivered from Korea to China. ▪ Cainiao also opened its global fulfilment centre in Gimpo, Gyeonggi to process Korean

goods purchased by Chinese customers. Kakao Consolidates Transportation Services under New Company The Kakao Mobility subsidiary will oversee the expansion and monetization of Kakao’s mobility services including the taxi-hailing app Kakao Taxi, chauffeur app Kakao Driver and mobile navigation app Kakao Navi. ▪ It also aims to partner with Korea’s parking space operators to launch a new parking

space search and booking app called Kakao Parking in Q4. ▪ Kakao’s Internet banking service Kakao Bank also launched and is second Internet-only

banking firm, four months after K Bank made its successful debut in Apr. Consumers can open an account at Kakao Bank by downloading an app and verifying their personal information online.

ACCESS NETWORKS KT Launches 100,000 Free Wi-Fi Points The 100,000 free Wi-Fi access points are located in convenience stores, department stores, shopping malls, bus stations, subway stations, gas stations, tourist sites, cinemas, theatres and bookstores to provide free Wi-Fi services in line with the govt’s “Public Wi-Fi 2.0” strategy. SK Telecom Develops and Tests 5G Repeater The 5G repeater, which was designed with local equipment maker KMW, will improve signals in blanket/shadow areas by amplifying 5G radio signals and has been built with SK Telecom's independently developed 5G relay technology for above 6GHz frequency bands. Impact Analysis: While SK Telecom has been working on 5G development with other

global telecom companies including Nokia and Ericsson, it has also begun working with smaller local SMEs which may have an edge in developing localised equipment.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 51

T A I W A N

ICT POLICY AND PREFERENCES Govt Outlines AI Investment Funded by the infrastructure bill and annual budget, the govt will invest TWD16bn (USD527m) over the next four to five years into developing AI capabilities through five initiatives led by the Ministry of Science and Technology (MOST): 1) incubating AI based-services; 2) adding value to sectors including medicine and finance through AI; 3) helping companies adopt AI; 4) promoting public participation in AI development; and 5) building up capacity for smart robotics with the aim of setting up 50 companies and creating 4,000 jobs in four years. ▪ The MOST also has plans to launch: 1) AI research centres nationwide by end 2017; 2)

an AI manufacturing base in Central Taiwan Science Park in Sep; and 3) an AI development base in Southern Taiwan Science Park.

APPS , NEXT -GEN DEVICES AND SERVICES Taiwan Ranks 3rd in Average Broadband Speed According to a report by Cable.co.uk, Taiwan’s average broadband speed of 34.4Mbps was the third-highest out of 189 countries surveyed, ranking below only Singapore and Sweden.

ACCESS NETWORKS APT Fined for 3G Service Issues The NCC has fined APT TWD1m (USD33,000) for poor quality of service (QoS) on its 3G network. The operator’s fall in QoS was reportedly due to it decommissioning some 3G base stations to accelerate transition to 4G, resulting in its 3G population coverage falling to 46.9% – below the minimum requirement of 75%. ▪ This was apparently done while its application to the NCC to terminate 3G services

before 2018 was still under review, and subscribers were not notified. ▪ This is the first financial sanction imposed by the NCC for such a violation.

ABBREVIATIONS APT: Asia Pacific Telecom NCC: National Communications Commission

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 52

T H A I L A N D

CLOUD Microsoft Thailand Shifts Workforce to Cloud Microsoft Thailand is retraining its workforce to increase the usage of cloud in the country. ▪ Currently, cloud accounts for 30% of local revenue, while in US, Singapore and

Australia it represents 80-90%.

ICT POLICY AND PREFERENCES Govt to Convert ICT Training Centres to e-Villages The MDES will convert 300 of the existing 2,280 ICT training centres to e-villages to help boost e-commerce in the villages. The centres will help local merchants with selling their wares online via support on logistics challenges, marketing, payments and packaging. ▪ The e-villages are expected to assist 4,500 shops by Jun 2018. NBTC Still Reviewing OTT Regulation After pulling back on the OTT draft regulation in Jul, the NBTC will add four more members to the committee, to the existing 11, overseeing the draft regulation on all OTT services. ▪ OTT companies are largely against the registration requirements and Netflix, Google

and Facebook refused to register when the draft was initially released in Apr.

APPS , NEXT -GEN DEVICES AND SERVICES AIC Ranks Thailand 10th in Asia for Digital Nation The Asia Internet Coalition (AIC) ranked Thailand 10th, just above Vietnam, for its annual Digital Nation scorecard. The country was ranked second to last on Human Capital, Digital Community, and last in Digital Products. ▪ The report did not include China. Line Launches On-Demand Taxi Calling Line Thailand worked with the regulator to launch a legal taxi hailing service to compete with Grab and Uber in Bangkok. The service will only work with licenced taxis, for now. Impact Analysis: Uber and Grab operate in a legal grey area that is prone to issues and

the launch of a ride-hailing app within legal bounds may increase pressure on Uber and Grab to work with the govt.

ACCESS NETWORKS NBTC Forces ISPs to Remove “Illicit” Pages The NBTC issued an ultimatum to ISPs that they must remove over 3,000 pages by 7 Aug or they could lose their operating license. ▪ The majority of the pages are on Facebook or YouTube, with the companies confirming

on 8 Aug that they have removed all such pages. TOT Will Replace Copper with Fibre By 2025, TOT will replace all existing copper wires with fibre in response to a slowdown in fixed-line demand.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 53

▪ The company’s goal is to increase ARPU to THB400 (USD12). Impact Analysis: Introducing more fibre will increase access to high speed Internet for

Thai people.

NBTC Approves Spectrum for IoT The NBTC has approved the 920-925MHz spectrum band for IoT use. ▪ The Thailand IoT Consortium believes this decision will lead to a 20% increase in the

use of sensors and imported equipment for IoT gateway devices. AIS Launches 1Gbps Next G Mobile Service AIS combined LTE-A and Wi-Fi to offer speeds of up to 1Gbps if both networks are available. ▪ Currently, only Samsung’s Galaxy S7 and newer devices support the combination service.

ABBREVIATIONS ARPU: Average Revenue per User MDES: Ministry of Digital Economy and Society NBTC: National Broadcast and Telecommunications Commission

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 54

V I E T N A M

ICT POLICY AND PREFERENCES MIC Targets Telco Equitisation Completion MobiFone Corp and VTC Multimedia Corp have been directed to complete equitisation by 2018, and VNPT by 2019. Local Vietnamese Content Providers Complain to MIC About Unfair Policies Local digital content businesses have given feedback to the MIC during a Forum on the Law on Information Technology in Hanoi, that the govt should adjust laws and regulation to ensure fairness for both local and foreign players. Impact Analysis: The increasing disparity between foreign players being seen as

“unregulated players” in local markets has created resentment from domestic companies.

MIC Lacks Info on Standards for Smart City Development Deputy Minister for MIC Nguyen Thanh Hung stated that Vietnam lacks information on comprehensive standards for Smart City development, which is one of the obstacles towards the country’s smart city aspirations.

PRIVACY AND SECURITY MIC Censorship System in the Works As part of Vietnam's national strategy on cybercrime prevention (2016-2025/2030), the MIC will soon be releasing a censorship system for the Internet which identifies, blocks, collects and processes misleading information. Other similar cybersecurity and anti-cybercrime software are also being developed by the MIC. Impact Analysis: While Vietnam does have a serious cybersecurity problem, this

proposal looks like it may have overreached; this policy bears monitoring.

APPS , NEXT -GEN DEVICES AND SERVICES E-Wallets Flourish in Vietnam More than 20 e-wallets have emerged in Vietnam, such as WebMoney, Payoo, MoMo, and Ngan Luong. The SBV has also granted intermediary payment licenses to 1Pay JSC, and WePay. Impact Analysis: Vietnam could leapfrog from a predominantly cash-based society, to a

e-wallet country, if it plays its cards right.

ACCESS NETWORKS Analogue Switch-Off in 15 Provinces MIC officially announced analogue TV channel switch-off in 15 cities and provinces on 15 Aug 2017: in Quang Ninh, Thai Nguyen, Nam Dinh, Thai Binh, Ninh Binh, Bac Giang, Phu Tho, Ba Ria-Vung Tau, Binh Thuan, Dong Nai, Long An, Ben Tre, Dong Thap, An Giang and Tien Giang. VinaPhone and Viettel Reduce Data Roaming Rates Both telcos have slashed data roaming charges for eight countries by up to 99.7%.

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 55

Impact Analysis: This will bode well for travellers to US, Japan, Singapore, Taiwan, Thailand, Malaysia, Laos and Cambodia.

Viettel Increases Broadband Speed Nationwide - for Free The military-run telco has increased its fibre optic cable speeds by 20-50% for free.

ABBREVIATIONS MIC: Ministry of Information and Communications SBV: State Bank of Vietnam VNPT: Vietnam Posts and Telecommunications Group

T R P C A S I A N I T B R I E F I N G | A U G 2 0 1 7 | P a g e 56

TRPC is a boutique consulting firm which specialises in telecommunications and information technology, particularly the policy and regulatory issues associated with national information infrastructure development, with an emphasis on the Asia-Pacific region. We offer specialised advisory, research, and training services, with a focus on economics, regulatory and strategic business issues, and possess an extensive network of industry experts and professionals throughout the region. For more information, please visit us at www.trpc.biz