Telecoms analysts at global market intelligence firm ThinkCX have today released the results from their latest market share report on the UK’s broadband ISP market, which claims to show that providers “with the biggest price hikes lost the most ground to rivals“. But the shifts are fairly small, and it may not be telling the […]

Broadband and phone giant BT Group (inc. Openreach, Plusnet and EE) has this morning announced that the operator’s current CEO, Philip Jansen, is to leave the business “at an appropriate moment over the next 12 months“. Since taking on the role in February 2019, the operator’s share price has fallen from around 230p to 122p. […]

An unspecified number of homes and businesses in the Worcestershire (England) town of Malvern have been hit by major disruption to their broadband ISP and phone connectivity, which has lasted for several days, after five of Openreach’s local cables were damaged. This has required extensive engineering work to fully repair. According to the Malvern Observer, […]

Business focused UK ISP Cerberus Networks has recently become the latest provider to increase the pricing of their broadband packages, which has seen a number of their more consumer grade and Openreach based Fibre-to-the-Premises (FTTP) tiers going up in price by around £3-£4 per month. For example, the provider’s 115Mbps “Cerberus FTTP Plus” package has […]

News

Telefónica has sold a 54% stake in its Peruvian network to US-based investment firm KKR and 10% to Entel Peru, retaining a 36% share  

In an effort to reduce debt and fund investment to build 5G mobile networks, Telefónica, one of Spanish America’s largest telecommunications firms, has recently made a sequence of asset sales in order to focus on its core businesses in Spain, the UK, Germany, and Brazil. As part of this move, in 2021 The El Salvador unit was sold to General International Telecom for $144 million, followed by Liberty Latin America’s acquisition of the Costa Rican unit. 

The value of the deal has not been disclosed, although Telefónica noted that it would cut the company’s debt by €200 million. A close banking source to the deal estimated that, including debt, the transaction valued 100% of the unit at around €550 million. 

As part of a wider deal, KKR has also purchased majority interest in PangeaCo and the existing fibre optic networks of Entel Peru, combing their fibre assets with those of Telefónica Peru to build the country’s first nationwide open access wholesale fibre company, ‘ON*NET Fibra de Perú’.  

KKR will own a controlling 54% stake in the business, Telefónica Hispanoamérica will own 36%, and Entel Perú will own 10%. Telefónica and Entel will serve as anchor tenants of the new network. 

KKR added that they plan to invest an additional $200 million to grow Peru’s digital infrastructure to more than double the size of the existing fibre optic networks, to which currently less than 35% of the population have access, to reach 5.2 million homes passed by the end of 2026. 

As always, the transaction will be subject to the typical regulatory approvals.  

The creation of ON*NET Fibra de Perú follows the pattern of similar model to that KKR has employed with Telefónica and Entel in other markets in recent years. In 2021, KKR acquired and combined the assets of both operators in Chile and Colombia – creating ON*NET Fibra de Chile and ON*NET Fibra de Colombia, respectively – and has expanded these wholesale networks significantly over the past two years. 

Meanwhile, in Europe, KKR is deeply embroiled in the ongoing battle with Cassa Depositi e Prestiti  and Macquarie Group over who will be allowed to purchase TIM’s fixed broadband network, which analysts suggest could be worth up to €23 billion. 

How is the European fibre landscape changing in 2023? Join the operators in discussion at this year’s Total Telecom Congress live from Amsterdam 

Also in the news:
TIM to enter exclusivity negotiations with KKR
Cellnex snaps up Iliad’s stake in OnTower Poland
KPN buys Primevest’s Dutch fibre network 

News

According to findings from global technology intelligence firm ABI Research, the non-terrestrial networks (NTN)–Mobile segment could exceed 200 million connections by 2031 

Last year saw the completion of 3GPP’s Release-17, contained within which were various new specifications allowing NTN (primarily satellites) to serve both handheld mobile devices and the IoT. Since then, numerous firms like Apple, Huawei, ZTE, Qualcomm, Motorola, MediaTek, Bullitt, Globalstar, Inmarsat, and Iridium have all entered strategic partnerships within the satellite and mobile industries, seeking to capitalise on the emerging NTN–mobile market. 

For the mobile network operators (MNOs), meanwhile, the growing prominence of low Earth orbit (LEO) satellite constellations represents a major opportunity to their coverage beyond the reach of their traditional, terrestrial networks. T-Mobile, for instance, has joined forces with Starlink (SpaceX) to supply satellite-to-mobile connectivity. Similar partnerships from satellite operators such as Lynk and AST SpaceMobile, have been struck with major MNOs including Vodafone, Rakuten Mobile, AT&T, Bell Canada, MTN Group, Orange, Zain KSA, Saudi Telecom Company (STC), and Telefónica.  

“The emergence of satellite-enabled mobile devices from major consumer smartphone manufacturers and chipset makers like Apple, Qualcomm, Motorola, MediaTek, Huawei, and ZTE indicates the upcoming introduction of satellite communications into the mainstream consumer market,” said Victor Xu, Satellite Communications Research Analyst at ABI Research.  

However, whilst the advancements in satellite-to-cellular communications are exciting, it should be remembered that the majority of satellite services will initially target the IoT, low data rate communications, and emergency service communications, not the consumer segment. As the technology and standards mature in the following years, however, more advanced 5G-based New Radio (NR)–NTN will be incorporated, which will increase the capabilities of the network, allowing for more users.  

This introduction of NR–NTN satellite services, expected in 2026, will likely be the key driver for the large projected growth in the sector, with ABI projecting a Compound Annual Growth Rate (CAGR) of 59% from 2024 to 2031. According to the company’sThe Role of Satellite in 5G: Non-Terrestrial Networks Mobile application analysis report, the market could reach a value of over $18 billion by 2031, with up to 200 million NTN connections. 

 

How is the NTN-mobile market changing in 2023? Join the experts in discussion at this year’s Total Telecom Congress live in Amsterdam 

VIEWPOINT

A crucial economic hub south of the Yangtze River Delta, Ningbo is successfully transitioning from an industrial hub to an intelligent and smart manufacturing center.

Ningbo is a thriving economic hub with 83 manufacturing championships and 283 Specialized, Refined, Differential and Innovative (SRDI) enterprises. As many as 20 advanced 5G capabilities were first put into commercial use at Ningbo. The city created history when China’s first 5G fully conected factory corps was set up in Ningbo earlier this year. This was the culmination of several steps being taken by the city over the last few years to take leadership in providing the manufacturers with the best possible 5G-enabled digital infrastructure.

“China Mobile Ningbo has two key aspects of digital intelligence. First, by connecting information highway pipelines and, secondly, by boosting data-reality synergy. It focuses on six aspects, including preparing the subgrade, paving roads, widening lanes, building a hub, installing fast chargers and providing services to ensure stable and efficient information transmission. This approach helps in stimulating the industry, which in turn helps in boosting the digitalization of the industry,” says Wang Ying, General Manager of the Government and Enterprise Customer Department, China Mobile Ningbo.

Taking The Leadership Position

China Mobile Ningbo is now scaling up the 5G industrial internet to connect information highway pipelines and boost digital intelligent synergy. The city is fast moving from the trial stage to the large-scale implementation of 5G. It has already deployed 625 5G private networks and has put 20 advanced 5G capabilities into commercial use.

China Mobile Ningbo is constructing a high-performance all-optical network to provide a simplified, trustworthy and autonomous network to businesses and manufacturers. It is also building a superior Gigabit 5G network that provides wide coverage and ensures best-in-class network performance and user experience. China Mobile Ningbo’s efforts were acknowledged and it was awarded excellent carriers in four scenarios across the country.

Building 5G-based Digital Infrastructure For Businesses of All Sizes

China Mobile Ningbo has adopted a multi-pronged approach to ensure that different types of enterprises are able to leverage the vast potential of 5G to grow their business. For instance, more than 20 manufacturers have opted for on-premise private networks, which ensures data remains on-premise while providing uninterrupted services to grow production and operational efficiency.

On the other hand, more than 500 small and medium enterprises favour lightweight private networks, which are affordable and plug-and-play networks. Power grid areas require dedicated resources and security isolation, which is possible with slide-based private networks.

China Mobile Ningbo has created digital infrastructure to help Ningbo emerge as a global information hub and deliver dual-domain services across the intranet and extranet. International infrastructure enables easy on-demand access in both domestic and international environments. There are 225 Points of Presence (POPs) outside China, covering 87 countries and regions. It also offers secure, reliable dual-domain private network support to more than 30,000 customers for easy switchover between the intranet and extranet.

China Mobile Ningbo has built a comprehensive system from pre-sales, in-sales to post-sales to provide the required support across all stages to drive the growth of 5G adoption in the city. The telco has built a flexible, scalable and secure system for the enterprises to benefit from the growing 5G ecosystem.

“We are providing customizable networking solutions to ensure flexibility. China Mobile Ningbo is also committed to providing open network data services and intrinsic security protection systems. In addition, cloud-based deployment means that the services are provided on the nearest nodes, so as network adjustment upon service changes and coordinated computing-network upgrade.” elaborates Wang Ying of China Mobile, Ningbo.

Several enterprises are leveraging the benefits of 5G in Ningbo. Take the case of Ningbo Port Wharf and Zhenhai Refining and Chemical Company, which are using 5G-enabled use cases across production, management and decision-making to gain operational efficiencies. From quality control, logistics, security management, predictive analysis, HR management, intelligent supply chain, intelligent knowledge management, and finance management to maintenance, 5G-based processes are helping the company improve efficiency across the organization. On the other hand, IKD boasts of as many as 15 5G application scenarios to enhance cost reduction and improve efficiency leading to the overall growth of the company.

Over the last three-to-four years, China Mobile Ningbo has formed partnerships to develop the 5G ecosystem in Ningbo for the overall growth and development of the industry. These partnerships have helped it to build a vibrant and thriving digital infrastructure to provide best-in-class 5G applications and services to enterprises and manufacturers in Ningbo.

China Mobile Ningbo has successfully created a 5G-powered digital infrastructure that fosters innovation and business growth. The success of China Mobile Ningbo effectively demonstrates that 5G technology is having a transformative impact on growing the production and efficiency of enterprises. The onus is then on the telcos to use 5G technology to provide best-in-class infrastructure to the enterprises for the overall economic growth of the country.

In future, China Mobile Ningbo endeavours to work closely with different industry verticals to understand their challenges and then introduce relevant 5G-powered solutions to help them address the pain points and grow.

The service providers in other regions can learn from the success of China Mobile Ningbo and use the 5G technology to empower businesses to improve production and efficiency while enhancing their contribution to the economic growth of their country.

Alternative network ISP Quickline, which is rolling out their gigabit speed full fibre (FTTP) broadband infrastructure to 96 rural locations (55,000 premises) across Yorkshire and Lincolnshire in England, has today announced that their service has started to go live across Tetney, Kirton and Barnetby le Wold in North Lincolnshire. Almost 4,500 households across Tetney, in […]

VIEWPOINT

Written by Simon Lacey | Senior Lecturer in International Trade | University of Adelaide[1]

Recent efforts by the European Commission to deny Chinese telecom equipment vendors access to EU markets lays bare the façade of any distinction between U.S. calls for decoupling and European notions of de-risking. These efforts have also spurred some pushback, not only from the equipment vendors themselves – primarily Huawei – and the Chinese government, but also from European telecom operators and member state regulators.

For operators that use Huawei equipment in their network-product mix, it is they who must bear the initial monetary impact of firstly sourcing a greater proportion of their material needs from a reduced pool of more expensive vendors, but secondly they must also bear the cost of removing existing equipment (alleged to be “high risk”) from their networks.

These costs are estimated in the billions of euros and will put a strain on telecom operators already competing in a market with razor-thin margins. Moreover, these costs are almost certain to be passed on in part or in full to consumers, further exacerbating already high inflation and putting an even bigger drag on efforts to get economies in Europe moving again.

The objections emanating from some member state regulators is that the Commission can advise but not dictate what member states can or even should do in order to protect national security, which is a clear member state competence. National telecoms regulators also believe, quite justifiably so, that they have a better understanding of the technical and other risks faced by their networks, and that the EU Commission’s one-size-fits-all approach here is counterproductive and unnecessary.

The Commission’s approach also leads one to question whether there is any substance to Commission President Ursula von der Leyen’s claims that Europe does not endorse decoupling as advocated by the previous and current U.S. presidential administrations, but instead is seeking a supposedly more nuanced policy of “de-risking”. The approach being pushed by Commissioner Thierry Breton, exhorting member states to move more quickly under the so-called EU Toolbox on 5G Cybersecurity, to reduce and eventually eliminate their exposure to Chinese equipment vendors is, ultimately, just another ban, similar to the one imposed by successive U.S. governments under the mantra of decoupling.

However, various leaders from governments to international organizations to representatives of global business have all rejected both decoupling and de-risking, with the WTO Director General Ngozi Okonjo-Iweala recently stating at the World Economic Forum Summer Davos meeting in Tianjin, China that “decoupling or fragmentation is something that the world simply cannot afford to have”. In a similar vein, at the recently held Nikkei forum in Tokyo, Deputy Singaporean Prime Minister Lawrence Wong strongly criticized de-risking, noting that “it is hard to see how de-risking, at its current ambition and scale, can be strictly confined to just a few strategic areas without affecting broader economic interactions”. Outside of a small number of capitals such as Washington and Brussels, the notion of decoupling or de-risking is perceived as inflammatory and unhelpful.

As Huawei in its response to the EU’s recent calls has noted, these actions go against the tenets of free trade. In fact, they appear on their face to violate the EU’s commitments under various WTO agreements. To be specific, WTO members may not adopt or apply technical regulations (which is what the Toolbox is) with a view to or with the effect of creating unnecessary obstacles to international trade. This means that technical regulations should not be more trade-restrictive than necessary. Moreover, in order to be necessary, any technical regulations also have to be apt to achieve their stated regulatory objectives, which the EU’s Toolbox arguably is not, since it does nothing to enhance cybersecurity. In fact, it is precisely this aspect of the Commission’s approach which is at the heart of push-back from both telecom operators such as Deutsche Telecom and national regulators such as the Austrian Regulatory Authority for Broadcasting and Telecommunications (RTR), namely that they disagree on the existence of the purported risk as presented by the Commission and thus on the necessity of the EU’s intrusive and discriminatory regulatory response.

Also worth noting in the context of the bilateral trade relationship between the EU and China is the fact that the EU’s two largest equipment vendors for 5G, Nokia and Ericson, are free to compete in China and are not subject to the kind of sweeping restrictions imposed upon Huawei in Europe. In fact, according to one industry estimate, by the end of the 2023-2024 purchasing period, Nokia and Ericson will have deployed more 5G base stations in China than they will have in the whole of Europe combined. This is an astonishing indication of how open the Chinese market is to foreign equipment vendors despite itself being home to the world’s most technologically advanced and economically competitive company in this space globally, Huawei.

To conclude, it would be helpful if the EU Commission could adopt a more evidence-based and technically sound approach rather than imposing what is essentially a one-size fits all solution to a set of poorly identified and abstractly articulated political risks. Moreover, the Commission should find ways of mitigating any perceived risks in cooperation with those that understand these risks the best, namely telecom operators and national network regulators. In doing so, the Commission should address these risks in ways that are apt to actually mitigate them, rather than having recourse to unhelpful and discriminatory policies that violate international trade rules, fail to achieve their intended objectives and needlessly drive up costs for European companies and consumers.

[1] The views expressed here are those of the author and not attributable to the University of Adelaide.

 

Press Release

Change at the helm of Retelit: Jorge Álvarez will lead the company in a new phase of growth and market consolidation

Retelit, Italy’s largest telecommunications player focused on the B2B market, announces the appointment of Jorge Álvarez as Chief Executive Officer and General Manager, succeeding Federico Protto, who remains temporarily at the Group, supporting the Board of Directors, to ensure due continuity in the transition.

The new CEO will seek to lead the Group into a new phase of consolidation and growth, including following the integration with Irideos.

Following the finalisation of the acquisition of Irideos and the start of the integration and refinancing of the Retelit Group, Federico Protto is stepping down as CEO to pursue other professional opportunities.

“I am very happy to welcome Jorge Álvarez, formerly Operating Partner at Asterion Industrial Partners, to Retelit. Thanks to Jorge’s proven experience in the sector, we will be able benefit as much as possible from the investments made and increasingly contribute to the development of the ICT sector in Italy, supporting companies and public administrations in the process of digital transformation and as they pursue innovation to tap into the opportunities offered by the new technologies. Jorge succeeds Federico Protto, whom I thank for the contribution and leadership he
has shown in guiding the company over the past eight years, during which the Group has experienced significant growth and the opening up of new business areas. I wish him all the best in his new career path” stated Jesús Olmos, CEO of Asterion Industrial Partners.

“I would first like to thank my colleagues, with whom we have shared a formidable journey, which has led the Retelit Group to be a leader in B2B services and solutions and which has been a great
opportunity for me to grow professionally and personally. A great deal of credit is due to Asterion, whose acquisition of Irideos has enabled it to further stimulate growth and value creation. Finally, I would like to extend my best wishes to the new CEO, Jorge Álvarez – to whom I will provide all necessary support – to continue on this fantastic growth journey” stated Federico Protto.

Jorge Álvarez brings more than 20 years of experience in the global telecommunications industry to the Retelit team. A telecommunications engineer, Jorge has held positions at Nortel Networks, H3G and Telefónica and holds an MBO from Duke University.

“I proudly join Retelit and a team of more than 1,000 professionals whose work every day makes it possible to connect businesses, objects and people with digital assets and expertise. Retelit is a unique player, the partner of choice for operators, OTTs and hyperscalers, and a digital enabler for companies, enterprises and the public sector. My goal is to continue to provide our clients with the highest quality of our services and the best solutions on the market. The ever-changing environment and the digital transformation that is impacting Italy present us with significant new challenges, which, together, we will be able to take on in order to grow and innovate” stated Jorge Álvarez, Retelit Group’s new CEO.

The Group today can rely on expertise covering the entire spectrum of the ICT world. It boasts infrastructural assets unique to the Italian market: more than 30 owned Data Centers – including
Avalon Campus, Italy’s largest Interconnection hub; more than 40,000 km of network bringing access technologies to major Italian and European cities; 25,000 km of state-of-the-art fiber optic
submarine cables, on three continents.

Also in the news:
SK Telecom overhauls AI service ‘A.’ using ChatGPT
Leveraging 5G to develop new value and unlock digital dividends
SKT invests $100m in flying taxi company Joby Aviation