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Martin Kovacs

PayPal Working Capital Loans Hit US$1B

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PayPal has lent more than US$1 billion to small businesses via its Working Capital program since the program’s inception in 2013.Darrell Esch, PayPal SMB lending vice president and general manager, has announced via a blog post that the program, which launched in Australia in October 2014, has helped more than 60,000 small business owners in the US, UK and Australia.

PayPal Working Capital is currently providing US$3 million per day, directly into the PayPal accounts of small business owners, more than triple the pace from a year ago, Esch advised, working out to more than US$100 million per month.

“Based on the customer feedback we receive, it’s clear that PayPal Working Capital is filling a crucial void in the traditional banking system,” he wrote.

“In fact, when PayPal Working Capital customers were asked to rate how likely they would be to recommend the program to others (on a scale of 1-10, with 10 being the highest), between 85-90 per cent responded with a nine or 10, which really speaks to business owners’ enthusiasm for this program.”

Telstra Manages The Hybrid Cloud With New Platform

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Telstra is set to introduce its Telstra Cloud Management Platform, designed for businesses managing multi-cloud environments.Amid the anticipated growth of hybrid cloud use among enterprises, Telstra is seeking to address the complexities associated with dealing with multi-cloud environments via the platform.

Michelle Bendschneider, Telstra executive director, global products, writes via a blog post that the platform, powered by RightScale,  “will help businesses operate hybrid cloud environments by providing a single, comprehensive view of their private and public cloud services”.

“It adds a critical layer across multiple cloud platforms that essentially gives businesses a bird’s-eye view across all of their cloud resources,” Bendschneider writes, with businesses able to “monitor applications and then automate how workloads respond and scale in line with business demands”.

It is designed to simplify the experience of connecting to, buying and managing cloud services, while ensuring compliance, with the platform’s self-service function providing IT with the capability to make a broader range of cloud services accessible, while ensuring policies and budgets are maintained.

The platform’s analytics help to identify efficiencies and reduce costs.

“We’ve invested heavily over the past few years to bring together our leading global network, cloud infrastructure and data centre capabilities with the world’s most popular public cloud platforms, like Microsoft Azure, Amazon Web Services, IBM SoftLayer and VMware vCloud Air,” Bendschneider writes.

“By combining these clouds with the connection and security capabilities of Cloud Gateway and the management tools from this new platform, we can provide customers with the choice, control and confidence they need to truly embrace the cloud.”

The Cloud Management Platform is set for global release next month.

Telstra Dealing With Another Outage

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Telstra is dealing with another network outage, a day after CEO Andrew Penn advised that the telco would invest $250 million in its network.Customers are taking to Twitter, with the issue apparently impacting business and enterprise customers in Victoria.

Telstra has advised via a tweet that it is working to fix the issue.

It is the latest of a number of outages suffered by the telco this year, amid a familiar pattern of disgruntled customers taking to Twitter to vent their displeasure.

Penn yesterday advised that Telstra had “recently completed an end-to-end review” of its “core network and IT systems, pinpointing sources of potential risk”.

“As a result of this work, we will be investing $250 million from our existing capital program, within our 15 per cent capex-to-sales ratio, over the next six-to-12 months to provide a higher degree of network resilience and improved network performance,” he wrote via a blog post.

Telstra has suffered a backlash from users via social media following its network outages this year.

The telco has held two free data days following outages, the most recent of which was at the beginning of April.

VoLTE Coming To Vodafone In December

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Voice over LTE (VoLTE) will begin to be available from Vodafone before Christmas, with the telco today advising that it will commence its rollout in December.Compatible smartphones will initially include the Samsung Galaxy S6, S6 edge, S6 edge + and Note 5.

Vodafone chief technology officer Benoit Hanssen stated Vodafone expects “the number of customers with  VoLTE-capable devices to increase  rapidly over the next few years as  more smartphone manufacturers incorporate the feature into new models”.

“For customers with capable devices, VoLTE will mean an enhanced call experience, including shorter call set-up times as well as longer battery life on some smartphones,” Hanssen commented.

“VoLTE not only allows users to stay on 4G during a voice call, they can also multi-task by continuing to use 4G data services such as web browsing while making or receiving a call.”

Existing customers with a capable device will be able to receive the settings for the feature over the air or via a software upgrade of their smartphone.

“It’s a really exciting change for the network, as this is the first step to moving all voice traffic over to 4G,” Hanssen commented. “In terms of the network, VoLTE means enhanced spectral efficiency with 2.3 times more users per MHz.

“It will also support the re-farming of our spectrum from 3G to 4G, so that we can continue to provide great data speeds as traffic grows. We’re continuing to invest heavily in our network to bring further enhancements, with seamless voice over Wi-Fi one of the next features our customers can look forward to in the near future.”

Over One In Five Aussies Think All Telcos Are The Same

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While telcos are engaged in intense competition for market share, competing on price and service quality, new Roy Morgan Research data shows that over one in five Australians think that all telcos are the same.According to Roy Morgan, 22 per cent of Australians (14+) think all telcos are the same, although this varies significantly depending on which provider customers are currently with.

One in 10 ALDImobile customers think all telcos are the same (10 per cent), while other telcos with fewer customers agreeing all telcos are the same include Internode (12 per cent), Adam (14 per cent), iiNet (17 per cent), Amaysim (17 per cent), Westnet (18 per cent), Virgin Mobile (18 per cent), iPrimus (19 per cent) and Southern Phone (19 per cent).

Roy Morgan notes that nearly two-thirds of Australians have some kind of relationship with Telstra, with 21 per cent of these customers thinking all telcos are the same, ranking marginally below the norm.

At the other end of the spectrum, 29 per cent of Dodo customers agree that all telcos are the same, 27 per cent of Vodafone customers, 27 per cent of Boost customers, 24 per cent of Optus customers and 23 per cent of TPG customers.

Michele Levine, Roy Morgan Research CEO, noted the question “raises many interesting issues worthy of further investigation by telcos”.

“It goes to the heart of the millions of dollars in expenditure on branding and advertising, pricing and special offers, product and service delivery,” she observed.

Levine noted the prevalence of the attitude also varies greatly “among customers of different generations, with different combinations of fixed and mobile products, either bundled or held across multiple providers, with different rates of spending, satisfaction and switching”.

“Perhaps it’s counterintuitive, but around one in four customers who are dissatisfied and/or intend to switch provider in the next year think all telcos are the same – that’s actually more likely than the norm,” she stated.

“So how will these customers choose their next provider? Are they seeking a point of difference (perhaps something new they don’t know they want yet) or, all telcos being equal in terms, will it just come down to price?”

Levine observed that ALDImobile and Dodo, both operating in the discount space, have the most and least discerning customers, respectively, suggesting “fundamentally different perspectives from which certain types of customers arrive at the same price-based decision”.

“It’s as though many of ALDImobile’s customers care enough about price to discern it’s the cheapest provider, while many of Dodo’s perhaps don’t care enough about telecommunications services to pay more than they need to,” she commented.

“Providers that aren’t operating in the no-frills space need to highlight the value of their differentiating frills – whether that’s wider network coverage and faster internet speeds, more inclusions and better customer service, or premium access to video and music streaming or sports content.”

Vodafone NBN Play: “Massive Potential Market” Awaits

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With Vodafone set to launch NBN services next year, Roy Morgan Research consumer telecommunications data reveals that 550,000 of its mobile customers are looking already to switch broadband provider.Vodafone had advised earlier in the week of its intention to enter the fixed-line broadband market, with the Roy Morgan data showing that the telco “has a massive potential market at the ready”.

Roy Morgan states that 3.5 million Australians aged 14+ have a mobile phone with Vodafone, of which nearly 2.5 million also have fixed-line broadband at home, including almost one in 10 already on the NBN.

Customers with Vodafone mobile “are – almost by definition – less keen than average on Telstra”.

Roy Morgan states that 22 per cent of Vodafone mobile phone customers have a home fixed-line broadband service connected through Telstra, compared with 32 per cent of all Australians, while another 12 per cent have fixed-line broadband with Optus, equating to the same nationally.

Vodafone customers are twice as likely as average to use a TPG Telecom fixed-line broadband service (13 per cent), with a further 8 per cent connected with TPG-owned iiNet, and 6 per cent with either Dodo or iPrimus, part of Vocus Communications.

Vodafone mobile customers’ fixed broadband providers

Source: Roy Morgan Single Source, April – September 2016 n = 3,991 Australians aged 14+ with a mobile phone with Vodafone. * iiNet Group includes iiNet, Internode, Westnet, Adam and TransACT; Vocus Group includes Dodo and iPrimus.

Roy Morgan notes that of the Vodafone mobile customers already on the NBN, the proportion with each internet provider is fairly consistent with the broadband market, with Telstra marginally less popular and TPG marginally more popular.

“Vodafone has a massive potential market at the ready: 550,000 of their mobile customers are already intending to switch fixed broadband provider in the next 12 months,” Roy Morgan states.

“Among the nearly 2.5 million Vodafone mobile users with fixed broadband, 22 per cent are very or fairly likely to switch.”

Vodafone customers are also over 50 per cent more likely than average to be dissatisfied with their current fixed-line broadband provider, Roy Morgan states, while customers with TPG fixed-line broadband are among the most satisfied, and least likely to be inclined to switch.

Roy Morgan Research CEO Michele Levine noted that in two months it is the second time “a mobile phone service provider has announced its aim to expand into the fixed broadband market”.

“Every new competitor compels all existing operators to take full stock of their current and trended market share, evaluate pricing and offers, analyse the satisfaction levels and intentions among customers, and pinpoint those who are most likely to switch to the new entrant,” Levine commented.

“Unlike with Amaysim, Vodafone has a massive existing customer base it can immediately target. But it’s not simply a matter of sending out the same series of texts to 3.5 million people. There are many different segments who would each be receptive to different communication strategies and offers.

“There are those who want the cheapest fixed broadband, those who want the fastest, those who trust brand-name recognition and customer service, those who prefer to bundle their telco services, those who already have the NBN and those without any fixed broadband at all.”

Apple, SAP Partnership Focuses On iPhone And iPad In Enterprise

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Apple and SAP have teamed up, in a partnership that will combine native apps for the iPhone and iPad with the SAP HANA platform, focusing on enterprise customers.Under the partnership, Apple and SAP plan to deliver a new SAP HANA Cloud Platform software development kit (SDK) for iOS, providing businesses, designers and developers the tools to build their own iOS apps for the iPhone and iPad, based on the SAP HANA Cloud Platform.

“These native apps will provide access to core data and business processes on SAP S/4HANA, while taking full advantage of iPhone and iPad features like Touch ID, Location Services and Notifications,” Apple states.

A new design language for SAP Fiori for iOS “will take the award-winning SAP Fiori user experience to the next level by combining it with a consumer-grade iOS experience”, while a new SAP Academy for iOS will offer tools and training.

The new SDK, design language and academy are scheduled to begin rolling out before the end of the year.

Under the partnership, SAP will develop native iOS apps for critical business operations, to be built with Apple’s Swift programming language, offering “a familiar user experience with the SAP Fiori for iOS design language”.

“This partnership will transform how iPhone and iPad are used in enterprise by bringing together the innovation and security of iOS with SAP’s deep expertise in business software,” Tim Cook, Apple CEO, commented.

“As the leader in enterprise software and with 76 per cent of business transactions touching an SAP system, SAP is the ideal partner to help us truly transform how businesses around the world are run on iPhone and iPad.

“Through the new SDK, we’re empowering SAP’s more than 2.5 million developers to build powerful native apps that fully leverage SAP HANA Cloud Platform and tap into the incredible capabilities that only iOS devices can deliver.”

Retail Set To Wobble As Property Bubble Gets To Bursting Point

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The 2014/15 financial year saw solid retail sales growth, however in the year ahead retailers are faced with something of a mixed bag of economic positives and negatives, according to Deloitte Access Economics, which has noted retail spending may suffer some collateral damage as housing market risks take hold.Deloitte noted while 2014/15 saw retail sales growth of 4.7 per cent over the year to June, the economy is faced with a number of pressures, including mining investment and commodity prices declining, in turn limiting jobs and income growth.

With interest rates reduced to a record low in May, Deloitte noted factors have combined to the favour of the housing market, with household goods retailers, where growth has been running in the double digits, among the beneficiaries.

“Rate cuts, a shortage of housing supply, and increasing foreign investment from China directed at property have turned out to be just the right fuel to again fire up the housing market,” Deloitte stated.

“The biggest impact has been seen in Sydney and Melbourne where house prices jumped to new highs in winter. Those housing gains are one important factor that has supported stronger retail spending growth of late.”

Low interest rates and the housing market, however, won’t be able to support retail spending indefinitely, with Deloitte noting the longer housing prices climb, the more likely the eventuality of a correction or levelling off in prices as underlying fundamentals kick in.

“In particular, as the support provided by low interest rates and rising asset prices begins to subside and the labour market remains patchy as a driver of household income growth, retail growth may moderate from its current level,” Deloitte stated.

“Extreme share market volatility over recent weeks won’t help, both by undoing some of the wealth gains seen earlier, and in keeping consumer confidence in pessimism territory. The fall in retail sales seen in the month of July reflects these pressures.”

Inflation-adjusted retail sales growth came in at 3.3 per cent for 2014-15, the best financial year retail outcome since 2007-08, however Deloitte sees 2014-15 as the peak of the cycle for retail, with sales growth moving down to 2.7 per cent in 2015-16 and 2.4 per cent in 2016-17.

Optus Offering Phone Upgrade 12 Months Into Plans

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Optus is offering customers who sign up to its latest postpaid My Plan Plus plans the option to get a new phone 12 months into their plan.New and existing customers who sign up or re-contract on a 24-month My Plan Plus contract will be eligible for the phone trade-up after 12 months, with the new phone also coming with a new 24-month contract.

Customers have two options, either swapping or keeping their current phone.

Customers who swap their phone (returned in good working order) will pay a one-off fee of $99 for the new phone, while customers who opt to keep their current phone along with upgrading to the new phone will need to pay the remaining full cost of their current phone, including any amount that Optus was going to cover.

Optus has additionally unveiled two new plans: the $100 My Plan Plus plan (minimum total cost $2,400 over 24 months), delivering 15 GB of data per month for use within Australia, and the $120 My Plan Plus plan (minimum total cost $2,880 over 24 months), providing 20 GB of data per month for use within Australia.

Meanwhile, Optus customers who sign up to a $30 and above 24-month My Mobile Broadband Plus plan will be eligible to upgrade to a new tablet after 12 months.

As with trading up to a new phone, customers have the choice of handing in their current tablet in good working order, paying a one off fee of $99, and getting a new tablet on a new 24-month plan, or keeping their current tablet, paying its full remaining cost, and getting a new tablet on a new 24-month plan.

Optus states that there are no plan cancellation fees for its latest My Plan Plus plans, stating that if customers need to leave before their contract expires, they will need to pay the remaining full cost of their phone or tablet, including any monthly handset credit that Optus was going to cover.

Further information on the My Plan Plus trade-up can be found here, and the My Mobile Broadband Plus trade-up here.

NBN Co Opts For FTTdp Rollout In Optus HFC Areas

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NBN Co will be rolling out fibre-to-the-distribution point (FTTdp) tech to up to potentially 700,000 premises across the country.The deployment of FTTdp, also known as fibre-to-the-curb, will cover premises previously earmarked for either fibre-to-the-node (FTTN) or hybrid fibre-coaxial (HFC) in areas served solely by the Optus HFC network.

FTTdp sees fibre potentially installed up to the driveway of an end-user premises, with it connected by a distribution point unit to existing copper lines.

“We have tested FTTdp over the last year and we’re confident we can now deploy the technology in areas where it makes better sense from a customer experience, deployment efficiency and cost perspective,” NBN Co chief network engineering officer Peter Ryan commented.

“This includes premises in the FTTN footprint that have too high a cost-per-premises (CPP) and premises served solely by the legacy Optus HFC footprint that are yet to be made ready for service.

“When we consider the advancements we’ve made in FTTdp, combined with the up-to-date learnings we have on the Optus HFC network, NBN has confirmed it will deploy FTTdp in those areas where the use of the Optus HFC network was planned, with the exception of the already launched network in Redcliffe, Queensland.”

NBN Co’s Corporate Plan 2017, released in August, revealed decreasing HFC distribution, forecasting a base case of 2.8 million (2.5-3.2 million) premises, down from 4 million in the previous year’s plan.

Fibre-to-the premises declined from the previous year’s forecast of 2.4 million to a base case of 2 million (2.0-2.5 million) premises, with FTTN (including fibre-to-the-basement and FTTdp) forecast for a base case of 6.1 million (5.1-6.5 million) premises, growing from 4.5 million premises in the previous year.

“HFC remains a highly valued part of our MTM deployment, however in balancing the requirements to convert Optus’ current network architecture and design to be NBN-ready, and the opportunity to introduce FTTdp, makes the new technology compelling in these selected areas,” Ryan stated.