Navégalo, a provider of data centre and telecommunication services with a strong presence in Latin America, has announced the arrival of a new state-of-the-art data centre in San José, Costa Rica. The opening is scheduled for 15 August 2023.

Navégalo says this expansion solidifies its position as the largest privately held data centre company in Costa Rica. The new facility boasts 300 cabinets, including an exclusive 40-cabinet suite, providing ample space to collocate infrastructure and benefit from Navégalo’s comprehensive suite of services.

Initially providing 5MW of power, the new facility can scale up to 15MW to meet the growing demands of global hyperscalers. Navégalo says that Costa Rica’s strategic location, skilled workforce, robust telecommunication infrastructure, proximity to the US, and political stability make it an attractive choice for these tech giants, as well as global clients.

As for environmental stewardship, Navégalo says it will achieve a number of relevant certifications by the end of the year. It adds that it has operated on 99% renewable energy for the past seven years and plans to offset the remaining 1% through solar panels.

By October 2023, Navégalo will be ISO 9001 and ISO 27001-compliant. The facility already holds Rated 3 certification according to ANSI/TIA-942 standards, with Tier III Certification expected later this year.

Navégalo says it ensures 100% redundancy and robust connectivity through its own capacity on three submarine cables – PAC, Arcos, and Maya.

Founded in 2002, Navégalo offers hosting, domains, VoIP, cybersecurity, and colocation services. As well as its two facilities in San José, Navégalo is also present in Guatemala, El Salvador, Nicaragua, Honduras and Panama along with Miami in the US.

News

Vodafone CEO Ahmed Essam has warned that if the Vodafone–Three merger is stopped by the Competition and Markets Authority (CMA), vital investments in digital UK infrastructure will be prevented

This week, the head of Vodafone UK has stressed to regulators that the planned merger between Vodafone and Three will be critical to achieving the government’s 5G rollout targets. CEO Ahmed Essam told The Times that if the deal is blocked the group “won’t be able to invest as much, and we won’t be able to deliver the 5G ambition that’s coming in the wireless infrastructure strategy from the government.”   

The government’s Wireless Infrastructure Strategy, published in April, set out a plan for the UK to bring world-class digital infrastructure to the entire UK, aiming to provide nationwide coverage of standalone 5G to all populated areas by 2030 

Vodafone and Three signed a formal £15 billion merger agreement last month, a deal that will see the newly combined company majority-owned (51%) by Vodafone, with Three UK’s parent company, CK Hutchison taking the remaining 49%. No cash will be exchanged under the agreement. 

If approved, the newly merged group will become the largest mobile network operator in the UK, surpassing both Virgin Media O2 and EE, with more than 27 million customers. 

The deal will see the two companies invest £11 billion in UK mobile infrastructure. This includes promises to reach 99% of the UK with their newest 5G standalone network by 2034 and offering fixed wireless access to 82% of UK households by 2030. 

“As a country, the UK will benefit from the creation of a sustainable, strongly competitive third scaled operator – with a clear £11bn network investment plan – driving growth, employment and innovation,” said Vodafone Group Chief Executive Margherita Della Valle. 

“The combination of Three UK and Vodafone UK will bring the advantages of 5G to every business and household in the UK, enabling the UK to deliver its ambitions for digital and economic growth and fully supporting the UK Government’s objectives for a world-leading digital economy,” added Three UK CEO Robert Finnegan. 

However, critics have warned against the monopolistic nature of the merger, which they argue will lead to higher prices and job cuts. They point to similar mergers in other markets, such as Vodafone Hutchison’s combination with TPG in Australia in 2020, which saw prices increase for customers and investment in the sector decrease, according to research from trade union Unite. 

As a result, the CMA and other regulators are expected to take a largely skeptical view of the deal and are likely to impose stringent conditions on the duo before agreeing to give the deal the green light. These conditions could involve anything from forbidding the company from hiking prices for a number of years to divesting of spectrum – a commodity in which the newly merged entity will hold a major advantage over rivals.  

How will the merger play out? It is sure to be a hot topic for discussion at Connected Britain this September – get your ticket today! 

Also in the news:
Voda – Three – well that’s just great…
Orange facing bumpy regulatory road to Masmovil merger
Orange-MásMóvil merger may reduce competition in Spain, says European Commission 

euNetworks revealed a continent-wide transport win over in Europe this morning, taking advantage of the reach they have steadily built themselves over the last decade. Inter.link will be leveraging their infrastructure in a big way as it ramps up its international presence, starting with Europe. … [visit site to read more]

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 

Also in the news: 

China Mobile Ningbo leads the way in building 5G infrastructure for business growth 

Telstra partners Starlink to serve remote customers in Australia 

New Zealand’s Spark partners Lynk for satellite-to-mobile connectivity 

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Vivacom received the green light to acquire seven broadband and TV providers, despite backlash and furore from rivals who harbour concerns about competition. 

The companies were NetWorx Group – comprising Networks-Bulgaria, Online Direct, TVN Distribution Bulgaria and Telko Infrastructures – and Veliko Turnovo-based TELNET Group, which comprises TELNET, TELNET Securities and STV. 

TeleGeography reported, the deal makes Vivacom the largest broadband and TV provider in Bulgaria, and did not deter the country’s Commission for the Protection of Competition (CPC) from approving the deals.

In December 2022, the Supreme Administrative Court annulled the anti-monopoly regulator’s previous approval of Vivacom’s acquisition of NetWorx Bulgaria. The Communications Regulation Commission launched an investigation into several deals where Viacom gained control over its rivals NetWorx, TVN Distribution Bulgaria, Telko Infrastructures and indirect control over Online Direct.

Large-scale rivals A1 and Yettel protested the latest acquisitions blasting the CPC for a “blatant disregard for recent European rulings” and this will lead to “a huge concentration of market share and power in the hands of Vivacom and its owner United Group”.

Yettel parent company PPF Telecom said in a statement: “CPC decision-making has raised our concerns about its forthcoming review of the proposed acquisition of Bulsatcom’s infrastructure by Slovenia Broadband, which is 100% owned by United Group. If this proposed acquisition is approved, it would lead to a total concentration of the whole national market and infrastructure power far exceeding the normal thresholds acknowledged in all other EU markets.”

It concluded by calling on regulators to review the transactions and threatened to escalate its case to the European Commission.

In a statement sent to Developing Telecoms, Vivacom said it « firmly rejects » A1 and Yettel’s accusations, and outlined how it apparently holds 31% of the fixed broadband market and 33% of the pay-TV market in Bulgaria (based on the number of subscribers). Meanwhile, A1 holds 28% and other local players have 35%, Vivacom claimed. 

« The coordinated statements from A1 and Yettel are misleading and inconsistent with the CPC’s findings. Their joint attempt to include Bulsatcom as part of Vivacom’s market share is wholly inaccurate and shows evidence of collusion, » said Vivacom. 

Viewpoint Article

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.