Viewpoint Article

By Raj Radjassamy, Director of 5G and Wireless Segment at OmniOn Power

Looking ahead to the deployment of 6G, the lessons learned from the continued rollout of 5G will help to ensure that future networks can live up to their promised potential. While 5G has achieved some of its initial promises, its advanced, higher-frequency applications have yet to materialize. The delay in developing these applications stems, in part, from an incomplete ecosystem at the time of deployment.

Providing low latency, faster speeds, expanded capacity, and enhanced ultra-reliability, 5G has the power to accelerate the mainstream adoption of the Internet of Things/Industrial Internet of Things across multiple industries. Simply put, 5G can help usher in a new digital information age. The long-term success of 5G, however, requires each critical ecosystem element – the network, infrastructure, and applications – to work together seamlessly and to support the rollout simultaneously.

Infrastructure, Devices, and the Download Speed of the Future

The promise of enhanced mobile broadband (eMBB), or ultra-broadband, includes download speeds of 1 Gigabit per second (Gbps). In the United States, 1 Gbps download speeds are currently available from few select mmWave spectrum deployments. However, with today’s popular C-Band spectrum and existing infrastructure and devices, consumers can achieve download speeds of approximately 250-500 megabits per second (Mbps). As such, eMBB has the potential to make downloading in the future twice as fast.

Most current mobile devices are not equipped to receive the mmWave band radio frequencies that can support 1 Gbps download speeds. Smartphones that run on 4G can only receive frequencies that are fixed and cannot be altered to “tune into” the new 5G spectrum signals. For service providers to fully capitalize on their investments in 5G, mobile devices capable of receiving next-generation radio frequencies will need to become more widely available to consumers.

The Need for 5G Compatible Apps

In addition to infrastructure and devices, the need exists for new software applications that can support features such as 8K video streaming, connected live gaming, and augmented reality (AR) and virtual reality (VR) technologies. On a smartphone, these technologies require very high throughput and just a few milliseconds of latency. At present, there are hardly any new “popular” apps that are driving public demand for devices that are true 5G and, eventually, 6G compatible.

A seamless integration between mobile devices, available networks offering high-frequency signals, and applications is critical. As mobile edge computing (MEC) is used to create networks that are more localized, applications that can leverage the benefits of MEC need to be developed. Currently, there are just a few applications that can run on MEC, and existing apps like self-driving cars and AR/VR technologies would require the low latency that MEC offers.

Power Challenges of 5G Connectivity

Other challenges created by widespread access to 5G connectivity include the need for localized power sources required for small cells, FWA and MEC data centers. Due to space constraints, these compact, server-like spaces require high-efficiency power solutions and innovative cooling systems.

Furthermore, outdoor 5G private networks that serve critical infrastructure like mining locations and port operations will require rugged, compact, fan-less power solutions for pole-mounted radios. For indoor 5G private networks including office buildings and stadiums, compact, efficient power systems will be needed to help keep scores of devices connected with low latency and high data throughput.

The Consequences of a Non-Seamless Rollout

For service providers, the vast amount of time, resources, and revenue they have invested will be at risk if all the related elements of 5G connectivity fail to work together seamlessly. For consumers, there would be disappointment and indifference about taking advantage of upgraded networks and enhanced capabilities in the absence of new and exciting ways to use them.

The seamless rollout of all the related elements of 5G has the potential to disrupt the status quo and result in paths for monetization for mobile network operators. But its application extends far beyond just smartphones. By carefully integrating networks, infrastructure, and applications, an unprecedented level of interconnectivity in the future could revolutionize how we live, work, and play.

What’s the next step in 5G’s evolution in the US market? Join the operators in discussion at Connected America, live in Dallas

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News

The sale is set to be the biggest follow-on public offering (FPO) in India’s history 

Vodafone Idea has announced that it is set to raise up to 180 billion rupees ($2.16 billion) through the country’s biggestFPO, a process by which a company already listed on the stock exchange issues additional shares in order to raise capital. 

The FPO will take place from April 18 to April 22, with a share price of 10 rupees ($0.12) per share. 

After the share sale announcement, Vodafone Idea’ share price dropped 2.3% at 12.65 rupees ($0.15). 

Vodafone Idea is India’s third largest mobile operator by subscriber numbers. For years, the company has struggled to compete with India’s two largest operators, Bharti Artel and Reliance Jio, with the latter bursting onto the scene in 2016, initiating an intense price war. This tough competition has left Vodafone Idea deep in debt and struggling to compete for market share, which reached a low of 18.93% in February this year.  

Since it was launched in 2018 from a merger of Vodafone’s Indian unit and Aditya Birla Group’s Idea Cellular, Vodafone Idea has recorded losses in every quarter. 

In February last year, the Indian government became the firm’s largest shareholder (33.1%), in a deal that saw the government convert the interest that Idea owed related to spectrum and adjusted gross revenue (AGR) payments, into equity. 

The company’s enormous debt has seen it struggle to invest in network upgrades, leaving it as India’s only telco to not yet launch 5G services.  

The operators first commercial 5G offerings are expected to be introduced later this year.  

“Having made large investments and no monetization happening, I think the industry does need to see some movement towards monetization,” said CEO Akshaya Moondra in an earnings call in January.  

“Let’s say if we are launching 5G probably in the next 6-7 months’ time then we will have a better idea of what is happening on the monetization front. After funding is there, we will need some time to roll out. Let’s say 6-7 months,” he continued. 

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Also in the news:
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Broadband poles no problem for Brits says new study

Over the past few years’ we’ve covered a number of examples where Openreach (BT) have deployed teams of UK drone operators to help deploy their 1.8Gbps speed Fibre-to-the-Premises (FTTP) broadband network. But in today’s case, ISP Zen Internet has documented a rather unique home installation, where airborne drones came in handy.

Openreach first used a drone deployment to help install the fibre optic cable for a new FTTP network near Pontfadog in Mid-Wales in late 2017. A year later, the team used drones to fly a fibre cable across a river to reach a remote property in the Highlands of Scotland.

The use of drones has since become a strategic part of Openreach’s operations to navigate obstacles on more complex sites and is used as a time saving solution vs traditional methods, which might otherwise take days to complete. The latest such example comes from Zen Internet, where a collaboration with Openreach enabled them to run fibre in a new build home, which was perched on a complicated hill, using drones.

Traditional methods would have made solving this kind of installation very difficult and potentially much more expensive. But the use of a drone enabled the engineering team to manoeuvre the required cables over gardens, fences and nearby properties to eventually reach the new build site and connect the home to FTTP broadband. Check out the video below for a nice little summary.

UPDATE 11:04am

We’ve had it confirmed that the “customer” of the service is also Zen’s Key Account Manager, thus it’s unclear whether a regular customer in the same sort of situation could expect identical treatment.

UPDATE 2pm

Openreach informed us that when engineers come to such properties to assess the terrain/situation, a drone can be “regularly deemed as the best solution“. This would be procedure for such complex locations “no matter the type of customer“, which they say indicates no preferential treatment.

Following a “productive meeting” with KCOM yesterday, alternative UK broadband ISP Connexin has announced that they will “temporarily pause” the deployment of new telecoms poles in parts of Hull and the East Riding of Yorkshire (England) as they “explore the viability” of the incumbents recent infrastructure sharing offer.

KCOM has already deployed a gigabit-capable Fibre-to-the-Premises (FTTP) broadband network across the entirety of Hull and also holds Significant Market Power (SMP) in that area, which is something that new entrants like Connexin and MS3 have long been seeking to change.

In an ideal world, KCOM’s rivals would love to run at least some of their new fibre cables via the incumbents existing cable ducts and poles. But while this approach works well with Openreach’s regulated Physical Infrastructure Access (PIA) product (saving time and money), it’s long been a different story with KCOM.

The law does require KCOM to fairly share access to their existing infrastructure in Hull (ATI Regulations). However, rival operators expecting the same level of access, flexibility and affordability as the regulated PIA solution from Openreach have often run into problems with KCOM’s confidential commercial terms, which up until recently were allegedly placing an unfeasibly high price on access.

The situation meant that KCOM’s rivals often ended up having to build lots of new infrastructure, such as poles, which tends to irritate local communities – especially those that have previously only had underground cables. In recent months, this also has become a political issue (here and here) and the government even called on operators to “limit installation of telegraph poles” (here), while Ofcom warned that it lacked that power (here).

A Change in Approach

After coming under increasing pressure to resolve the impasse, KCOM recently shared the confidential results of a recent “feasibility study“ into infrastructure sharing (PIA) with Connexin, which was promptly criticised by their CEO, Furqan Alamgir, who said (here): “KCOM’s feasibility report is merely a 10-page document full of blank spaces and bullet points containing “high level estimates” no firm pricing, no committed timing, and no conclusion as to whether they deem infrastructure sharing feasible or not. This from a company that says it is committed to infrastructure sharing!”

In response, KCOM, which said they were “surprised and disappointed to read the negative response“, proposed a “quicker way forward” to Connexin and MS3 (here). The plan involved the formation of an industry-led partnership to help co-develop a new pathway to accessing their existing ducts and telegraph poles to run new fibre, which could be delivered expediently and efficiently and “does not require complex new systems before it can be delivered“.

KCOM said they expected to work with Connexin and MS3 initially in targeted local areas over the next few months to see if this solution could work across the Hull region that it serves. Connexin has today responded to that by announcing a “temporarily pause” on the roll-out of new broadband poles in “parts” of Hull and the East Riding of Yorkshire as they “explore the viability” of KCOM’s proposal.

A Connexin spokesperson said:

“As a community-focused business, we have tirelessly campaigned for infrastructure sharing over the past two years. Our preferred method to grow our network, is to access existing infrastructure, in the same manner that all other internet service providers, outside the Hull telecoms area, are able to do with the Openreach network which covers the rest of the UK.

Our engagement with Ofcom, the government, local MPs, councillors, campaigners and residents, has led to increased pressure on KCOM, to share its existing network infrastructure more widely and fairly with other local providers. While KCOM has only talked of access in a limited area, we would like this to be extended to all KCOM SMP areas in line with the rest of the UK, to facilitate healthy competition for the benefit of customers in Hull and East Riding.

While we enter into detailed negotiations with KCOM we will temporarily pause the planned installation of poles in parts of Hull and East Riding of Yorkshire. This will mean a slowdown of our overall network build in the area, although we will continue to connect poles we have already placed.

As long as KCOM follows through on their offer with concrete processes and pricing for access to their infrastructure, we will continue to do what we believe is best for the community and what we have long campaigned for. This does not affect Connexin’s build plans in other parts of the UK.”

The announcement doesn’t clarify precisely which “parts” of the area are impacted by this pause (we’re trying to get an answer on that), and nor does Connexin specify the duration of the pause in pole installations. But the operator is clear that it wants to “show its intent to work collaboratively to the benefit of the wider community” in its ongoing negotiations with KCOM.

Connexin added that it was now “pleased with progress since KCOM’s March 26th letter offering to move more quickly towards network sharing” and it will continue its “robust engagement” with KCOM to “deliver the best possible outcome for residents in Hull and East Riding“. No doubt any frustrated local residents will reserve their judgement on this until they know the outcome and whether the pause benefits their streets.

KCOM previously said that they intended to launch the new process (trial/pilot) by May 2024, with the aim to see results from this new initiative by the summer. The incumbent is also no doubt being mindful of the fact that Ofcom recently began researching for their next Telecoms Access Review 2026 (here), which could potentially look to impose a regulated PIA-like solution on them if the industry-led approach fails.

Suffice to say, KCOM would probably prefer to avoid a strict response from Ofcom, while Connexin may not wish to wait the two years it would take before Ofcom actually implements something useful. Put another way, both operators now have some interest in being able to find common ground, but it remains to be seen whether the ship they attempt to build can stay afloat.

UPDATE 9:38am

In regard to which “parts” of Hull and East Yorkshire the pause impacts, Connexin has clarified to ISPreview that they are actually pausing across the “whole Hull telecoms area“, albeit with a focus on the areas where they are actively building, or planning to build at the moment (e.g. Beverley, Molescroft, Hedon and Hessle etc.). As above, none of this impacts their other deployments outside this region, but in those areas they can often harness Openreach’s existing network.

The boss of full fibre broadband operator Netomnia and ISP YouFibre, Jeremy Chelot, has today been voted as the Network Representative for the Board of the One Touch Switching Company, which is responsible for implementing Ofcom’s OTS (One Touch Switch) solution for faster consumer switching between UK ISPs.

The TOTSCo board currently comprises nine directors, with six drawn from the industry and elected by its members, and three independent directors, including the Chairman, nominated by the board. The company’s CEO, Paul Bradbury, also attends all board meetings.

Gita Sorensen of GOS Consulting and INCA previously represented “New infrastructure providers” (i.e. mostly representing alternative networks) on the Board. But we’ve just had it confirmed that outspoken CEO Jeremy Chelot has this afternoon been voted in to replace her as network representative.

TOTSCo recently announced that it would next aim for the new switching system to go live on 12th September 2024 (here), which comes after it suffered several delays that have frustrated consumers, Ofcom and many smaller network operators. Ofcom has previously singled out BT, Sky Broadband, TalkTalk and Virgin Media (VMO2) for not being able to complete the necessary trials in time for the previous go-live date (14th March 2024).

In theory, OTS should expand the existing Gaining Provider Led (GPL) migration system to work across separate networks (the old system was mostly focused on Openreach based ISPs) and to action switches within just one day instead of ten “where technically possible“. Suffice to say, this would make the market much easier for consumers to navigate, but it’s also a nightmarishly difficult thing to organise and implement.

Internet provider Cuckoo has confirmed that, starting from today, new customers in CityFibre’s full fibre (FTTP) broadband areas that may be looking to sign-up online with UK ISP Giganet will instead be diverted to Cuckoo. The move forms part of Fern Trading‘s (Octopus Investments) ongoing network consolidated efforts.

Just to recap. Fern Trading has already consolidated its full fibre networks (Jurassic Fibre, Swish Fibre and Giganet) under the single AllPoints Fibre brand (wholesale). As part of that, Cuckoo is set to become the main retail ISP for the consolidated networks (i.e. where consumers will get their packages) and indeed the process of migrating customers to the provider began at the start of 2024 (here), albeit not without some trouble (here).

However, up until now anybody covered by CityFibre’s separate fibre broadband network have still been able to sign up to Giganet’s service (Giganet previously ran its own FTTP network and also sold services via CityFibre), which is arguably a more familiar and reputable brand than Cuckoo. But this has now changed.

As of today, Cuckoo informs us that new Giganet connections via CityFibre will no longer be offered where Cuckoo is now available (this was an expected change). Giganet will thus be diverting any postcode checks on the Giganet site that fall into the CityFibre footprint to Cuckoo’s site and services. The packages and prices remain identical (i.e. 150Mbps symmetric for £28, 500Mbps for £32 and 900Mbps for £39 on an 18-month term).

News

Foreign owned data centres, content delivery networks, and internet service providers, will be allowed to set up shop in certain pilot areas, including parts of Beijing, Shanghai, Hainan, and Shenzhen

This week, China’s Ministry of Industry and Information Technology (MIIT) has announced a new pilot project that will see foreign ownership restrictions lifted on a number of value-added telecoms services (VATS).

The project will run in four specially designated regions, covering parts of Beijing, Shanghai, Hainan, and Shenzhen, and will cover various subsectors of the telecoms industry, including data centres, content delivery networks, and internet service providers, among others.

Until now, Chinese government policy has been to limit foreign ownership of these key industries to 50%.

The government says that the pilot project aims to align these industries with international trade and economic development rules, helping to making these sectors more diverse and drive innovative.

If successful, the government says the project could be further expanded to include additional subsectors of the telecoms industry.

“Advancing new industrialization requires deepening reforms and expanding openness,” said Jin Zhuanglong, the head of the MIIT, in a related statement last month.

In fact, the telecoms sector is not the only sector being somewhat opened up by the Chinese government. Market access restrictions on foreign investment in manufacturing are set to be removed, while limitations on the same in the healthcare and finance sectors will also be reduced.

At a time when the international community is growing increasingly insular, this loosening of red tape by the Chinese government comes as a welcome change. With the soaring interest in AI, the news could be particularly exciting for cloud players looking to cement their position in China’s increasingly digital economy.

But we must be careful not to take this shift towards openness in the Chinese telecoms industry too far. Foreign companies have been theoretically allowed to invest in Chinese VATS up to 50% since 2000, but doing so requires a licence from the government. To date, only a very small proportion of such applications have been granted, thereby leaving the Chinese telecoms sector dominated by domestic investors for the past quarter century.

While these newly relaxed restrictions this week will no doubt make investment in VATS even more enticing for foreign investors, it remains to be seen whether the Chinese government will become similarly more liberal when allocating operating licences.

Keep up to date with all of the latest telecoms news from around the world with Total Telecom’s daily newsletter

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Vodafone’s 5G standalone network now connects around half the German population
Broadband poles no problem for Brits says new study

News

The deal is the first major investment by a new and outside entrant since Russia’s invasion of Ukraine in 2022

French billionaire and owner of European telco group iliad, Xavier Niel, has announced today that he will acquire Datagroup-Volia, Ukraine’s leading fixed telecom and pay TV provider, through his investment firm NJJ.  

According to NJJ’s press release, the acquisition, which is for an undisclosed sum, has already received regulatory approval. 

Datagroup-Volia is 96.13% owned by a fund managed by US private equity firm Horizon Capita and 3.87% by Datagroup-Volia CEO Mykhaylo Shelemba. 

Once acquired, NJJ will merge Datagroup-Volia with Lifecell, the country’s third-largest and fastest-growing mobile operator, pending the regulatory green-light on the latter’s acquisition. 

The newly combined company will then be led by Shelemba and will provide mobile connectivity to 10 million Ukrainians.  

Its fixed network will cover four million premises across the country. 

Back in January, NJJ confirmed the acquisition of Turkcell’s various Ukrainian units (including Lifecell), for $500 million. This deal is still subject to regulatory checks, including the go-ahead from the Ukrainian competition authority. 

In a statement this week, Xavier Niel described the move as “a significant step towards the creation of a national Ukrainian telecom champion.” 

“Ukraine is home to an impressive tech sector with innovation in artificial intelligence, a high degree of digitalisation and technological affinity. We are confident that our landmark transaction will serve as a signal to others that the time to invest in Ukraine is now, to support the rebuilding of the country and realize its potential,” he continued.

Keep up to date with all of the latest telecoms news from around the world with Total Telecom’s daily newsletter

Also in the news:
Digi Spain sells 6m FTTH accesses to Onivia
Vodafone’s 5G standalone network now connects around half the German population
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News

The changes pre-emptively bring the companies in-line with Ofcom’s newly proposed regulations  

British mobile network operator EE, along with its parent company and internet service provider BT, has announced that it has become the first major operator to simplify its pricing structure.  

The new ‘pounds and pence’ structure will show customers the exact cost of mid-contract price increases, rather than relying on percentage increases and unclear inflation metrics like the consumer price index (CPI) or retail price index (RPI). 

“From 31 March 2025, for new and re-contracting mobile customers, this annual increase will be an extra £1.50 a month,” read the announcement’s press release earlier this week. 

“It will be £1.50 a month for connected devices (including laptops, tablets and smart watches), £2 a month for TV customers, and £3 a month for broadband customers. Out-of-bundle services will be subject to an annual 5% increase.” 

Back in December, Ofcom announced their proposal to ban inflation-linked mid-contract price rises to give customers more transparency regarding their future bills. 

The driving force behind the ban was customer confusion surrounding the pricing adjustment metrics used.  

After conducting an in-depth market analysis in 2023, Ofcom found that four in ten (11 million) broadband customers and over half of mobile customers (36 million) were on contracts subject to inflation-linked price rises. But the understanding of these terms like CPI and RPI was found to be very low, with 55% of broadband customers and 58% of pay-monthly mobile customers not understanding what CPI and RPI measure. 

“At a time when household finances are under serious strain, customers need prices to be crystal clear,” said Melanie Dawes, Ofcom’s CEO in the Ofcom’s consultation announcement. 

It is expected that the UK’s other operators will shortly follow suit. 

Hear from BT at this year’s Connected North event, 22-23 April in Manchester. Secure your last-minute tickets now! 

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News  

The investment will see the deployment of two new cable systems, including the first international subsea cable to connect the Northern Mariana Islands 

Google has announced a $1 billion investment to improving digital connectivity between the US and Japan through the deployment of two subsea cables, Proa and Taihei, both to be built by Japanese  NEC. 

The investment was announced on the Japanese Prime Minister’s visit to the US this week, organised to boost ties between the two countries. 

The first cable, Proa, will connect Japan, the Commonwealth of the Northern Mariana Islands (CNMI), and Guam.  

Proa, along with the extended Taiwan-Philippines-U.S. (TPU) system, will form the CNMI’s inaugural international subsea cables, creating an unprecedented route from continental America to Shima, Japan, to bolster reliability within the region. 

The second cable, called Taihei, will run from Japan to Hawaii. The Taihei system, accompanied by the extended Tabua line, are central to a broader project unveiled last year to build a cable from mainland US to Fiji and Australia. Upon its completion, this will establish an alternative data route from the US to Takahagi, Japan. 

KDDI, ARTERIA, Citadel Pacific, and CNMI are partners with Google on both cable projects.  

Furthermore, Google’s will also fund an interlink cable that will deliver enhanced connectivity between Hawaii, CNMI, and Guam. The cable will connect the transpacific routes, improve reliability and reducing latency, ensuring seamless digital experiences for users across the Pacific Islands and globally. 

The investment supports Google’s Japan Digitization Initiative, which aims at enhancing the capacity and resilience data routes between the US, Japan, and several Pacific island nations. 

“Building on the U.S.-Australia joint funding commitment for subsea cables last October, the United States and Japan plan to collaborate with like-minded partners to build trusted and more resilient networks and intend to contribute funds to provide subsea cables in the Pacific region,” read a joint statement from US and Japanese governments. As with any submarine cable traversing the Pacific, geopolitical factors were undoubtedly a major consideration in these cable projects. 

In recent years, China and the USA have been competing for influence over Pacific island nations. Tensions increased dramatically in 2022 when the Solomon Islands inked a security deal with Beijing, which sparked fears that a Chinese military base could be built on the islands, giving China even more influence over the region. 

The move solidified a significant shift in the geopolitical landscape of the Pacific in recent years, which has seen numerous other island nations, such as Fiji and Papua New Guinea, have benefit from Chinese infrastructure investment. 

In a show of commitment to Pacific island nations, of which three (Northern Mariana Islands, Guam, and American Samoa) are US territories, President Joe Biden has pushed to bolster US influence in the regional telecommunications sphere, viewing the industry as key security issues.  

During the during the Pacific Island Summit in September last year, the US pledged to help the “Pacific Islands build resilient and secure infrastructure to promote their economic development 

President Biden pledged $15 million to “support Google’s South Pacific Connect subsea cable initiative.” 

Join us at Submarine Networks EMEA, the leading annual subsea connectivity event in the region. 29-30th May in London – secure your tickets now!

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