Softbank to invest $100bn in US AI

close-up photography of 1 U.S dollar banknote lot

News

The cash injection follows a $50 billion investment in 2016

SoftBank Group, led by CEO Masayoshi Son, has announced plans to invest $100 billion in the US over the next four years, a move that will focus on advancing AI and its related infrastructure. This investment aims to create 100,000 new jobs.

Son made the announcement alongside President-elect Donald Trump, who praised the deal as a strong sign of confidence in the future of the US economy. Trump said that the investment shows “monumental confidence in America’s future.”

Trump welcomed the new investment as part of his broader strategy to boost the US economy and tackle inflation in his second term. “It will help ensure that artificial intelligence, emerging technologies and other industries tomorrow are built, created and grown right here in the USA,” he continued.

The new pledge echoes a similar commitment made in December 2016, when Son promised a $50 billion investment and 50,000 jobs. While that money was deployed, the impact on job creation was unclear.

Although the $100 billion is set to be deployed over the next four years, the funding sources remain uncertain. SoftBank reported $27 billion in cash reserves as of September 30, and the company’s Vision Fund 2 still has $3 billion left to invest. It’s also possible that SoftBank could use funds from its recent acquisition of chipmaker Arm Holdings to help support this ambitious pledge.

This year, SoftBank also invested $960 million in Japanese AIto upgrade its computing infrastructure to deliver a Generative AI  platform in the Japanese language. Over the next two years, SoftBank will purchase GPUs (graphics processing units) from US based chip company Nvidia, using them to train and power its own large language models (LLMs), and then loan access to them to other firms.

Join us at next year’s Connected America, 11-12 March in Dallas. Get discounted tickets here!

Also in the news:
Congress boosts funding for drive to replace Chinese equipment
BT’s network wrapped reveals how Brits connected with the biggest cultural moments of 2024
Talking the language of sustainability

BT’s network wrapped reveals how Brits connected with the biggest cultural moments of 2024

Press Release

LONDON, 17th December: The UK has become a nation of split-screeners, secret streamers and event schemers according to new research commissioned by BT Group. ‘Network Wrapped’ is a new annual study that combines mobile and broadband data with consumer insights to reveal the latest trends around how the British public engaged with the biggest cultural moments of the year, both in-person and online.

Era of split-screeners

Whereas once families were more likely to gather around a TV for major events like football matches or Christmas TV specials, the nation’s view of quality time now looks very different with more than a third (35%) of the UK admitting to regularly splitting their attention between multiple screens or devices at the same time. This rises to 58% among Gen Z who have been credited with giving rise to the split-screening habit.

The top reasons Brits are using secondary screens during major events include scrolling social media (47%), messaging friends and family (39%), shopping online (33%) and playing video games (30%).

Rise of secret streamers

When it comes to the most significant cultural moments of 2024, more than half of the UK population (56%) believe live sport is the most important for the nation’s psyche, more than the UK general election (55%), live music (29%), film and TV releases (15%) and gaming launches (11%).

With more connected devices in the household, this year has also seen a greater rise in ‘secret streaming’ with 46% of multi-tasking men having been caught watching a live event covertly; while one in 16 people admit to having watched live events on their smartphone while attending a wedding, funeral, or christening.

The growing desire to be part of the biggest cultural moments in real-time has led to an increase in livestreaming across the nation, with more than a quarter (27%) of Millennials now livestreaming their attendance at major events to share the experience with others, while 35% of Gen Z attendees admit to video calling friends or family members from an event venue.

Celebrating event schemers

Nearly two thirds of the population (61%) spend up to two hours preparing to attend live events, with 14% of ultra-organised Brits spending more than three hours researching travel routes, setting up group chats, buying new outfits online, and chatting to fellow event goers on social media.

This means Brits often spend more time planning to attend an event than the duration of the event itself; none more so than those in the East Midlands where people spend the most time preparing to attend a live event – an average of 2 hours and 4 minutes.

This national obsession with planning is in part caused by a desire to make the most of the biggest cultural moments because of the high cost associated with attending in person. ‘Network Wrapped’ found:

  • Despite ongoing cost pressures, people spent more than £155 on average, in addition to their ticket, to attend major events in 2024
  • One in ten Brits admit they splash the cash to make the most of the experience by spending an additional £300 per event
  • Fans in the Northeast of England are some of the most likely to spend on additional experiences such as VIP access and merchandise, splashing out 66% more than those in Norfolk and Suffolk who spend the least on average (£114.38 vs £68.51).

The biggest frustrations with attending the UK’s biggest cultural moments include queuing to get into the venue, for the toilets, or for food and drink (47%), managing parking and travel (27%), trying to find the right seats (15%), and people recording entire shows on their phones (13%).

Those frustrations aren’t doing much to dampen spirits though, with almost a quarter (24%) of Brits planning to attend or engage with even more major events in 2025.

Howard Watson, Chief Security and Networks Officer at BT Group, said: “This year has seen the British public connect, stream, and split-screen their way through some truly iconic moments – from the final of Euro 2024 to Taylor Swift’s record-breaking Eras Tour. But with more people using more connected devices than ever before, there is a growing desire – among all generations – to be part of the biggest cultural moments as they happen, and this is reshaping how we all use connectivity.”

The full ‘Network Wrapped’ report is available here: bt.com/network-wrapped

Openreach Name Top 5 London Boroughs for Full Fibre Broadband Cover

Network access provider Openreach (BT) has today revealed the top five London Boroughs for coverage of their Fibre-to-the-Premises (FTTP) broadband network, which sees Barking and Dagenham topping the table with more than 8 out of 10 premises now able to upgrade to the new service.

The boroughs of Bexley, Redbridge, Hillingdon and Merton then round off the remaining top five slots, although Openreach hasn’t provided any coverage figures for those. The network operator’s new full fibre network is currently available to more than 1.5 million homes and businesses across London. But London is home to around 3.8 million dwellings and Openreach’s coverage is thus somewhere around 40%, which could be better.

NOTE: Openreach’s full fibre network covers over 16 million UK premises and they’re investing up to £15bn to reach 25m by December 2026 (here), before rising up to 30 million by 2030. The operator’s average FTTP build rate is currently 81,000 UK premises per week (c. 1 million per quarter) and they have a take-up of 35%.

Elaine Hope, Openreach’s Partnership Director for London, said: “This Full Fibre upgrade is a huge boost for London. Better connectivity helps communities thrive and supports people to work from home easily, keep in touch with their loved ones and build connections and opportunities. And we’re not stopping yet; our investment across the city continues at pace with build continuing at forty locations across Greater London”.

The new service, once live, can be ordered via various ISPs, such as BT, Sky Broadband, TalkTalk, Vodafone and many more (Openreach FTTP ISP Choices) – it is not currently an automatic upgrade, although some ISPs (e.g. TalkTalk) have started to do free automatic upgrades as older copper-based services and lines are slowly withdrawn.

The 40 locations in London where Openreach are currently building

Albert Dock

Bowes Park

Canonbury

Deptford

Enfield

Goodmayes

Greenford

Hainault

Harrow

Hornchurch

Hounslow

Kingston

Leytonstone

Mitcham

Mortlake

New Malden

New Southgate

North Finchley

North Wembley

Palmers Green

Pimlico

Putney

Romford

South Harrow

Stamford Hill

Teddington

Tottenham

Upper Holloway

Upton Park

Vauxhall

Walthamstow

Walworth

Wembley

West Wickham

Wimbledon

Lyca Mobile Warns up to 90 Percent of UK Staff Could Lose their Jobs

Troubled mobile operator Lyca Mobile, which is a virtual operator (mvno) on EE’s network, has reportedly told its UK workforce that the company is facing some “pretty serious challenges” and as a result of that almost 90% of their workers (up to 316 jobs) could be made redundant.

Over the past couple of years’ the operator has certainly faced its fair share of “serious challenges“. For example, there was last year’s cyberattack (here), as well as the conviction of Lyca’s French entities for money laundering and VAT fraud (the operator is appealing against that), and a Tax Tribunal recently ruled in HMRC’s favour over a £51m (aggregate) dispute related to the VAT treatment of customer “bundles” (here). Not to mention issues with the auditing of their accounts (here) and some other things.

NOTE: Lyca Mobile UK’s most recent accounts revealed they had 1.7 million UK subscribers at the end of 2022, a churn rate of 9% and revenues of £145m (up from £138m). But they also made a loss after tax of £25.1m, which compares with a profit of £1.8m in 2021.

According to The Guardian, the company’s general counsel, David Dobbie, warned staff on Friday (13th.. of course it was) that more than 300 of them could face the chop due to issues such as competition, cost inflation, “legacy technology issues” and internal inefficiencies due to overlap between divisions based in the UK and India. No mention is said to have been made of their tax dispute.

The newspaper claims that the operator’s customer service team will also be impacted, which will see Lyca Mobile moving its support offshore to places such as India. “This proposed expansion of global service centres is going to unlock significant cost savings for us,” he said, while allegedly asking for the support of staff to “make this no harder than it needs to be”.

Cuts are also expected to be felt across other parts of the group, such as in property, media and their restaurant chain, Bella Cosa.

Voneus Face Rural Broadband Complaints in Shropshire and Powys

Rural broadband ISP Voneus, which has built a mix of full fibre (FTTP) and fixed wireless broadband networks across parts of Wales and England, has pledge to “increase community communication” after more than a hundred complaints about their service were raised by residents through two MPs for Shropshire and Powys.

According to the BBC News, the complaints highlighted issues of connection drops, extremely poor speeds (sometimes sub-1Mbps) and customer support being slow to respond or failing to rectify the problem. The issues have been raised with Voneus by Heather Kidd, Councillor for Chirbury & Worthen (Shropshire), and Danny Bebb, who represents Churchstoke on Powys Council.

NOTE: Voneus aspires to cover 370,000 UK premises via both their gigabit-capable fixed wireless access (FWA) and full fibre (FTTP) broadband networks.

Kidd said she had logged more than 60 complaints, which is on top of the 69 from neighbouring divisions. Many of those complaints seem to relate to the network areas that were previously served by SWS Broadband. In case anybody has forgotten, SWS was merged into Voneus last year (here) and most of the networks they built in this area used fixed wireless access (FWA) technologies (they also had some plans to deploy FTTP).

The article largely focuses upon problems in Rowley (Shrewsbury), although it also lists other locations with complaints, such as Habberley, Vennington, Brompton, Marton, Stoney Stretton, Montgomery, Stiperstones and Pennerley. This is sadly not the first time we’ve heard complaints about Voneus this year (here and here).

A Spokesperson for Voneus said:

“We appreciate the comments and concerns raised by councillor Kidd and councillor Bebb. We will increase community communication whilst we complete a number of fibre network builds and network upgrades across Shropshire and Powys.”

Some of these areas may at least have access to reasonable mobile broadband connectivity as an alternative, but many do not, and locals often have little desire to go back to older copper lines. The Starlink (LEO satellite) service is another option but, at £75 per month (plus £299 for the hardware), it’s not something that everybody can afford and most just want Voneus to deliver what SWS before them promised.

Earlier this year Voneus also secured the £12m (state aid) Project Gigabit contract to connect 6,000 premises across Mid West Shropshire (Lot 25.01) to their gigabit-capable broadband network (here), which is expected to be rolled out across rural areas like Alberbury, Westbury, Snailbeach, Wentnor, Ford, Hanwood, Longden, Dorrington, Leebotwood and Bicton (here). This may also make upgrading some of the problematic SWS areas a bit easier.

Until recently Voneus was being backed by up to £250m from investors including Macquarie Capital, IIF, Tiger Infrastructure Partners and bank lenders. But they’ve since secured a further £25m investment boost from Global Connectivity PLC (G-CON) in January 2024 and then an injection of £18m (capital) from Rural Broadband Solutions Holdings Limited (RBSHL) in June 2024 (here). The G-CON and RBSHL investments are closely connected because G-CON holds a sizeable stake in RBSHL.

However, we appear to have missed another recent announcement from G-CON, which last month pushed another capital investment worth £20m into the company.

G-CON Statement on 21st Nov 2024

Global Connectivity plc (AQSE: GCON), a company focused on communication services and technologies that enhance connectivity and a shareholder in leading UK broadband provider Voneus Limited (“Voneus”) through its investment in Rural Broadband Solutions Holdings Limited (“RBSHL”) is pleased to announce that on 14 November, a further combined capital investment of £20m was made into Voneus by its shareholders.

As reported on 12 June 2024, RBSHL’s stake in Voneus increased to 41%. In August, the further capital injection reduced GCON’s holding in RBSHL to 11.8% and we reported a valuation of £13.6m in our half year results for the six months ended 30 June 2024 as a post period event, which equated to 3.75p per GCON share.

With this latest November investment, RBSHL’s stake in Voneus remained at 41% after investing £8.2m of the £20m. As in August, Global Connectivity plc again elected not to invest and now owns a 9.5% stake in RBSHL’s common equity. This equates to £11.7m or 3.2 pence per GCON share. The intrinsic value of Voneus should be expected to have increased at the point of future investment, which serves to mitigate the effects of dilution for GCON.

Football Streaming Pushes BT to Record UK Broadband Traffic of 33.7Tbps

Broadband and telecoms giant BT (EE) has used a mix of UK network stats and a consumer survey of 2,000 adults to reveal how the “British public are engaging with the biggest cultural moments of the year“. BT also hit a record peak of broadband traffic on 4th Dec 2024, when streaming of Premier League Football helped push them to 33.7Tbps (Terabits per second).

According to the operator’s new ‘2024 Network Wrapped‘ research, some 56% of people in the UK believe live sport provided the “most significant cultural moments of the year“, deeming it “more important” than the UK general election (55%), live music (29%), film and TV releases (15%) and gaming launches (11%).

NOTE: The figure of 33.7Tbps for 4th December 2024 compares with the 30.1Tbps they recorded on 7th December 2023, which was also driven by football streaming via Amazon Prime (here).

BT’s research also found that 58% of Gen Z (i.e. people born in the late 1990s and early 2000s) have now taken up split-screening during major events, using second screens to multi-task online and stay connected to group chats and loved one (falling to 35% for all respondents). Meanwhile, 1 in 16 people admit to having secretly streamed live events on their phone while attending a wedding, funeral, or christening.

Key Highlights from the Study

➤ The top reasons Brits are using secondary screens during major events include scrolling social media (47%), messaging friends and family (39%), shopping online (33%) and playing video games (30%).

➤ This year has also seen a greater rise in ‘secret streaming’ with 46% of multi-tasking men having been caught watching a live event covertly.

➤ Some 27% of Millennials (i.e. people born between the early 1980s and the mid-1990s) now livestream their attendance at major events to share the experience with others, while 35% of Gen Z attendees admit to video calling friends or family members from an event venue.

➤ 61% spend up to 2 hours preparing to attend live events, with 14% of ultra-organised Brits spending more than 3 hours researching travel routes, setting up group chats, buying new outfits online, and chatting to fellow event goers on social media. This suggests Brits often spend more time planning to attend an event than the duration of the event itself; none more so than those in the East Midlands, where people spend the most time preparing to attend a live event – an average of 2 hours and 4 minutes.

➤ People spent more than £155 on average, in addition to their ticket, to attend major events in 2024, while 1 in 10 admit they to spending an additional £300 per event. Fans in the Northeast of England are some of the most likely to spend on additional experiences such as VIP access and merchandise, splashing out 66% more than those in Norfolk and Suffolk, who spend the least on average (£114.38 vs £68.51).

➤ The biggest frustrations with attending the UK’s biggest cultural moments include queuing to get into the venue, for the toilets, or for food and drink (47%), managing parking and travel (27%), trying to find the right seats (15%), and people recording entire shows on their phones (13%).

➤ 24% of Brits are planning to attend or engage with even more major events in 2025.

➤ Over the next five years, mobile broadband (data) usage is forecast to grow between 15% and 28% as venues, event organisers and consumers take advantage of improved connectivity provided by 5G Standalone technology to deliver better live experiences.

Howard Watson, BT’s Chief Security and Networks Officer, said: “This year has seen the British public connect, stream, and split-screen their way through some truly iconic moments – from the final of Euro 2024 to Taylor Swift’s record-breaking Eras Tour. But with more people using more connected devices than ever before, there is a growing desire – among all generations – to be part of the biggest cultural moments as they happen, and this is reshaping how we all use connectivity.”

Ofcom UK Propose Tweak to 3.9GHz Band for Mobile and Wireless Broadband

The UK telecoms regulator has proposed an additional tweak to its existing licence for the 3.9GHz (3925 – 4009MHz) radio spectrum band, which would change the authorised frequency from 3925-4009 MHz (3.9GHz) to 3800-3884 MHz (3.8GHz). This could potentially make it more efficient for fixed wireless and 5G based mobile broadband services, such as those from Three UK.

Just to recap. Mobile operator Three UK (H3G) previously asked Ofcom, in May 2024 (here), to consider making a useful technical change to its existing licence for the 3.9GHz band, which is held by their sibling UK Broadband Ltd. The change, if approved, would enable them to use this band with 5G technology to boost their Fixed Wireless Access (FWA) broadband packages (Three Home Broadband).

NOTE: Back in May 2024 it was noted that Three UK had around 26,000 assignments (at nearly 9,000 locations across the UK) in the 3.9GHz spectrum. “These assignments are currently not in use and prevent other users from accessing this spectrum,” said Ofcom.

The regulator is currently still consulting upon the above proposal, but as part of that they have also considered feedback from respondents who felt that changing the authorised frequency from 3925-4009 MHz (3.9GHz) to 3800-3884 MHz (3.8GHz) “could make use of the wider 3.8-4.2 GHz band more efficient“.

Ofcom had previously shelved this idea because, while they “recognised there were benefits” (i.e. an increase in the amount of usable spectrum and possible removal of fragmentation in the band for Shared Access users), a frequency move would have also made some of Three UK assignments “incompatible with existing Fixed Links in SE England and a significant number of Shared Access users“.

However, the regulator now believes that they can find solutions for the aforementioned concerns, particularly after Three UK supported the idea and suggested that it could “potentially lower its equipment costs”. The operator was also able to offer “mitigations to minimise the impact the move would have on incumbent users”.

In addition, the BBC and Neutral Wireless (both Shared Access users) both supported the move, citing how it would increase spectrum availability and efficiency, offering more contiguous spectrum, with only one spectrum boundary for Shared Access users rather than three.

Ofcom’s New Proposal for 3.9GHz

Alongside the changes previously outlined in our May 2024 consultation, we are seeking views on an additional option to vary the terms of the 3.9 GHz licence by changing the permitted frequencies from 3925-4009 MHz to 3800-3884 MHz. This could potentially deliver more efficient use of the radio spectrum by:

• increasing the total amount of useable spectrum for Shared Access users by reducing the number of boundaries with high power users; and

• reducing fragmentation in the 3.8-4.2 GHz band, so that Shared Access users wanting to use higher bandwidths are more likely to be able to get a licence for the channel width they require.

To support efficient use of the band, we would ask Shared Access licensees currently overlapping with all or part of the 3800-3884 MHz frequency range to retune their equipment to alternative frequencies above 3884 MHz. This is in line with the condition in all Shared Access licences which enables Ofcom to change the frequency authorised and our guidance requiring Shared Access users to be frequency agile (i.e. licensees in the 3.8-4.2 GHz band should deploy equipment that can tune across the entire band). We would identify suitable alternative frequencies for these licensees and allow 18 months for the move.

Ofcom’s new consultation will remain open until 25th February 2025, and they plan to publish a statement setting out their final decisions during next Spring 2025.

Openreach Brings FTTP Broadband Cover to 50 Percent of UK Premises

The latest independent data from Thinkbroadband has revealed that the footprint of Openreach’s (BT) national Fibre-to-the-Premises (FTTP) network, which currently offers broadband speeds of up to 1.8Gbps to ISPs and their customers, has just passed the 50% of UK premises (16,328,469 ready for service) milestone.

Openreach are currently investing up to £15bn to expand the coverage of their new full fibre network to reach 25 million UK premises by December 2026 (here), which includes around 6.2 million premises in rural or semi-rural areas. On top of that, they’ve also expressed an ambition to reach up to 30 million by 2030, although this will partly depend upon a favourable outcome from Ofcom’s next Telecoms Access Review 2026 (TAR).

NOTE: The operator’s average FTTP build rate is currently 81,000 premises per week (or roughly 1 million per quarter) and this network has a take-up rate of 35%.

The new research highlights that the latest figure of 16.32m is up from 12.34m premises exactly one year ago (2023), as well as 8.98m in 2022 and 5.89m in 2021. In term’s of the country-by-country breakdown, this means that Openreach’s full fibre network currently reaches around 49.04% of premises in England (this includes c.300k from KCOM), 63.38% in Wales, 46.73% in Scotland and a whopping 88.99% of Northern Ireland.

However, Openreach’s official figure is likely to be much closer to 17 million premises (RFS) than this, which is down to the laborious process of checking that Thinkbroadband needs to do in order to ensure the accuracy of its data (i.e. they’re often a month or so behind the operator’s latest build).

The new service, once live, can be ordered via various ISPs, such as BT, Sky Broadband, TalkTalk, Vodafone and many more (Openreach FTTP ISP Choices) – it is not currently an automatic upgrade, although some ISPs (e.g. TalkTalk) have started to do free automatic upgrades as older copper-based services and lines are slowly withdrawn.

CityFibre Begin Project Gigabit Broadband Build in Bedfordshire, Northamptonshire and Milton Keynes

Network operator CityFibre has today announced that they’ve begun the roll-out phase of their £51m state-aid supported Project Gigabit contract for the Bedfordshire, Northamptonshire & Milton Keynes (Lot 12) area. This will extend their 10Gbps capable FTTP broadband network to an additional 25,000 hard-to-reach rural premises in those regions.

The LOT 12 contract for Bedfordshire, Northamptonshire and Milton Keynes was officially awarded to CityFibre by the Government’s Building Digital UK (BDUK) agency in February 2024 (here) and the operator has since been conducting various engineering surveys, while also organising the necessary contractors. The good news is that this build has now begun.

NOTE: Project Gigabit aims to help extend 1Gbps capable (download) broadband networks to reach “nationwide” UK coverage (c. 99%) by around 2030 (here) – the country recently passed the 85% coverage mark.

Sadly, today’s announcement doesn’t provide any details of where CityFibre plan to build or how long it will take to complete, but previous reports have suggested that they’re expected to include Ecton, Great and Little Addington and Greatworth in Northamptonshire. Other rural towns and villages surrounding Corby, Daventry, Kettering and Wellingborough are also likely to be upgraded.

The operator, which is supported by various ISPs like Vodafone, TalkTalk, Zen Internet and many more (Sky Broadband to follow in 2025), already covers around 4 million UK premises with full fibre broadband – mostly in urban areas – and their ambition is to eventually cover up to 8m (funded by c.£2.4bn in equity, c.£4.9bn debt and c.£800m of BDUK / public subsidy) – representing c.30% of the UK.

Telecoms Minister Sir Chris Bryant said:

“Thanks to our government-funded Project Gigabit rollout, the buffering nightmare will soon be a story of the past for hard-to-reach communities in Bedfordshire, Northamptonshire and Milton Keynes. We are providing households and businesses in these areas with the best internet speeds available, helping them to thrive in today’s digital world.”

Greg Mesch, CEO at CityFibre, said:

“We’re thrilled to deliver full fibre connectivity to underserved homes and businesses across Bedfordshire, Northamptonshire and Milton Keynes. This Project Gigabit rollout represents our dedication to repairing the digital divide, empowering rural communities to thrive with the advantages of advanced connectivity.”

Over the past couple of years CityFibre has secured nine Project Gigabit contracts, totalling over £782m in government subsidies to serve more than 464,000 hard to reach rural premises across Cambridgeshire, Suffolk, Norfolk, Hampshire, Buckinghamshire, Hertfordshire, Berkshire, Leicestershire, Warwickshire, Sussex, Kent, Bedfordshire, Northamptonshire & Milton Keynes.

The network operator has also committed their own funding to help build commercially beyond this those contracted areas (i.e. a total of £1.2bn in combined public and private investment or 1.366 million extra premises may be delivered as a result of these contracts).

Talking the language of sustainability

white windmills on green grass field under white clouds and blue sky

Interview

Ahead of the recent World Communication Awards, we spoke with Sandra Klackenborn, Head of Sustainability at Arelion, to discuss the growing energy challenge and how the industry must do more to tackle the issue collaboratively

The growing energy challenge

With networks spanning hundreds or even thousands of miles, it is no surprise that energy consumption has always been a key concern for telcos when it comes to sustainability. Operating these massive networks not only generates a significant carbon emissions footprint, but also incurs a huge energy bill – both of which will only grow further as data demand increases and network density increases.

As a result, making these networks more energy efficient and sustainable is a huge focus for telcos like Arelion, which view the issue as both an environmental and financial imperative.

“Energy is such an interesting area. It’s a melting pot of issues,” explained Sandra Klackenborn, Head of Sustainability at Arelion. “You have concerns about energy costs, the challenge of sourcing renewable energy, and, of course, you have the environmental impact. These are all important topics that we focus on here at Arelion.”

Innovation to the rescue?

With data usage continuing to climb, energy costs sky high, and additional infrastructure being deployed every day, it can feel like telcos are fighting a losing battle against the energy curve.

In reality, however, innovation related to energy efficiency has proven surprisingly resilient in minimising the growth of network energy demand year-on-year.

“Improved energy efficiency can be somewhat built into the equipment upgrade cycle,” explained Klackenborn. “We are in an industry where technology moves really, really fast and things evolve all the time. For us to be able to provide the quality of data transfer that our customers expect from us, we need to develop and deploy more advanced technology, which, of course, is more energy efficient.”

“In our experience, we have been able to really curve that energy consumption, keeping it relatively flat despite ever growing demand,” she added. “In the ever-growing need for data capacity, this focus is important to keep striving for.”

Of course, regularly upgrading your hardware for better efficiency carries its own sustainability burden. The materials used to build these new components are finite and harvesting them can be carbon emission intensive.

As such, Arelion seeks to safeguard these natural resources by repurposing, reusing, and recycling old equipment wherever possible.

“We try to circulate the components we dismantle into a second life internally or resell to an external partner, so the resources can be utilized for as long as possible before being recycled back into original material,” explained Klackenborn, noting that circularity was a key element of the company’s sustainability approach.

Better understanding your sustainability footprint

At the heart of winning the technological race against an ever-growing energy demand is an increasingly precise understanding of exactly where your energy usage is coming from. Network infrastructure (both fixed and mobile) typically accounts for around three-quarters of a telco’s energy consumption – making it the prime candidate for improved energy efficiency – but granular data of each component’s energy footprint is a relatively recent development.

“Today, we probably have more data available than ever before, in terms of understanding, seeing, measuring, and predicting our sustainability footprint,” explained Klackenborn. “We know exactly how much energy a certain piece of technology consumes or how it transfers data.”

Beyond allowing for more targeted equipment refreshes, the wealth of data also allows for a much more accurate forecasting of energy consumption.

“There are the cost savings, of course, but in many ways the main driver behind this data is stability,” said Klackenborn. “It’s really important to know what your electricity bill will be for the next few years – that’s a really underrated benefit of measuring your sustainability footprint more carefully.”

The trouble with sustainability metrics

But while more data is available than ever before, collating and communicating it effectively, both internally and externally, remains a challenge. Sustainability metrics are far from standardised, making collaboration between telcos and partners far more complicated.

“It’s not always the easiest assignment to translate all the data into something as broad as a sustainability value, if you will,” said Klackenborn. “Sustainability is very difficult to report on accurately, particularly across different industries. With so much varied data, there is always a certain level of interpretation with top-level figures. While there are some standards, most companies are reliant on their own metrics to measure performance. That makes it very difficult to compare and share learnings.”

Regulations surrounding sustainability reporting, such as the European Sustainability Reporting Standards (ESRS), are gradually helping to build usable frameworks, but there is still much work to be done.

“Currently, a lot of the reporting regulations don’t require you to break down the figures,” said Klackenborn. “For example, I don’t actually know exactly how much CO2 is generated at our colocators or per external site. If I had that information, I could make better decisions on how we can work together. We could discuss the topic in more detail and so better learn from each other.”

A team effort to build a greener future

Ultimately, making the telecoms sector more sustainable and energy efficient is a collaborative effort, requiring the formation of effective partnerships across borders.

“The focus for us is very international and collaborative when it comes to sustainability,” said Klackenborn. “There is a really strong awareness that we can’t do this by ourselves. We are part of a value chain and a bigger ecosystem. After all, our Scope 2 emissions are someone else’s Scope 3.”

“At Arelion we have the goals of achieving Net Zero carbon emissions for Scope 1 and Scope 2 by 2030, and for Scope 3 no later than 2040. To do this, we need to make sure we’re joining hands internally as well as across borders with other companies. Sustainability is everybody’s business,” she concluded.


Arelion were proud to sponsor the The Sustainability Award at this year’s World Communication Awards. Check out the full list of winners here.