News 

This week, Ericsson has released its first quarter financial results for 2024, which showed profits had risen despite a decline in sales 

In spite of a 14% decline in sales, largely driven by a decrease in Networks sales (-19%), Ericsson achieved a gross margin improvement to 42.7%. 

The company attributed this lift to its product portfolio strength and ongoing cost-efficiency measures (which includes significant job cuts). 

“We maintained our leading market position, but as expected our customers continued to exercise caution with their investments,” said Börje Ekholm, President and CEO, noting this is mainly due to uncertain economic conditions and current high interest rates.  

It is the same reason the company expects the RAN market to decline further, at least until the end of the year. 

“Against this tough market backdrop, we delivered solid expansion in gross margins. This underscores the competitiveness of our solutions, our commercial discipline, and our actions on costs,” Ekholm continued.  

Share price rose by 6% in early trading on Tuesday morning. 

“For the rest of the year, we expect the mobile networks market to remain weak,” said Ekholm in the earnings call.  

“If current trends persist, we expect our sales to stabilize during the second half of the year,” citing “recent contract wins and the normalisation of customer inventory levels in North America”.  

In December, Ericsson beat its close rival Nokia into securing a $14 billion Open Ran deal with AT&T. The partnership will mean that Ericsson will carry 70% AT&T’s wireless traffic by the end of 2026.    

Nokia noted its “disappointment” in the deal’s outcome, but both companies are still grappling with cost-cutting. Nokia recently announced that it would cut 14,000 jobs to shrink costs by up to €1 billion by 2026, and Ericsson are set to cut 8,500 jobs this year. 

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Also in the news:
South Korea to invest $7 billion in AI semiconductors
Swisscom expands 5G partnership with Ericsson
Daisy Group set to acquire 4Com for £215m

This Industry Viewpoint was authored by Nick Millward, Mobile Ecosystem Forum

As we journey into the future of mobile telecoms over the next five years, I’m excited about the transformative role that artificial intelligence will play. From enhanced network optimisation and intelligent customer service to hyper-personalised services and edge computing, AI promises to revolutionise every aspect of our mobile telecommunications experience. Let’s take a look at some of the anticipated innovations and transformations that AI … [visit site to read more]

Africa Mobile Networks Group (AMN) announced on Thursday that its first of its base stations in Nigeria to connect to SpaceX’s Starlink constellation is now live and using the LEO satellite network for backhaul connectivity.

It’s the first AMN base station to connect to Starlink since AMN and SpaceX signed a commercial deal in July 2023 to use Starlink for remote base station backhaul connectivity across Africa.

AMN said in a statement that Starlink’s low-latency connectivity enables its multi-carrier RANs to sustainably provide 2G, 3G and 4G services in remote, rural areas of Nigeria. AMN also said it also paves the way for the launch of 5G services, which AMN plans to do before the end of this year.

AMN, which builds, owns, operates and maintains mobile network infrastructure for African mobile network operators, currently operates 1,600 base stations across Nigeria. The company said it will continue to install new sites throughout 2024 in Nigeria, as well as Democratic Republic of the Congo, Cameroon, Madagascar, Cote d’Ivoire, Benin and Rwanda. AMN also has operations in Bissau, Ghana, Guinea, Liberia, Sudan, and Zambia.

Starlink has been commercially available to consumers and enterprise customers since January 2023. Last week, according to a report from Nairametrics, Starlink slashed the price of its internet router by 45%, although its monthly subscription rate remains unchanged. No reason was given, but the report suggests the move may be related to the naira’s recent appreciation against the US dollar and other foreign currencies.

According to figures from the Nigerian Communications Commission, Starlink had over 11,200 subscribers in the country as of the third quarter of 2023 – which also makes it one of the top ISPs in Nigeria, the report said.

Dialog Axiata and its parent company Axiata Group announced on Thursday that they have signed a definitive agreement to effectively take over Bharti Airtel’s Sri Lankan operations, reducing the number of mobile operators in the country to three.

Under the merger deal, Dialog will acquire 100% of issued shares in Airtel Lanka, then give Bharti Airtel ordinary voting shares via a share swap, which will allow Airtel to retain a 10.35% stake in the combined company. No financial details have been disclosed, and no timeline has been given.

While the deal remains subject to approval of Dialog’s shareholders and the usual legal, corporate and regulatory compliance procedures – to include clearance from the Colombo Stock Exchange (CSE) – the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has already given its blessing.

Axiata said the merger – which has been in the rumor mill for years and officially in the works since May 2023 – will enable it to leverage economies of scale and reduce duplication of infrastructure, as well as save costs and improve operational efficiencies.

“This merger brings together the strengths of two leading telco groups and bodes well for the growth and sustainability of Sri Lanka’s flagship telecom sector,” said Dr Hans Wijayasuriya, Axiata’s group executive director and CEO of its telecommunications business.

Axiata Group CEO and MD Vivek Sood said the deal aligns with Axiata’s strategy of market consolidation and resilience. “The merger will create value for the shareholders of Dialog Axiata PLC and Axiata Group through achievable synergies.”

It will also further solidify its market share. Dialog already leads the market with an estimated 57% share with close to 18 million subscribers. Airtel Lanka will add another estimated 5 million to Dialog’s subscriber base.

The merger deal comes as Sri Lanka’s telecoms sector has been impacted by the country’s recent economic crises. According to the latest market report from BuddeComm, operators are struggling to make enough revenue to keep up with the cost of network upgrades. Meanwhile, overall subscriber numbers have dropped 3.1% in 2023 up to September. The government hasn’t helped by increasing both the Telecoms Levy and the value added tax on mobile devices.

The deal leaves Sri Lanka with just three mobile operators, the other two being SLT-Mobitel and Hutch Lanka, who will rank second and third, respectively, once the Dialog-Airtel merger is complete. It’s also the second big mobile consolidation deal in Sri Lanka since Hutch Lanka merged with Etisalat Lanka in 2018.

UAE telco du, from Emirates Integrated Telecommunications Company (EITC), says it has signed a Memorandum of Understanding (MoU) with global internet provider Expereo to help it provide network connectivity to global enterprises with a local presence.

Under the partnership deal revealed on Tuesday, du will offer enterprises and government entities in the UAE access to Expereo’s suite of global network services that currently reach over 190 countries.

Du said its enterprise and government customers will benefit from enhanced service offerings with access to a wider range of ICT services and tailored solutions that meet their specific needs, backed by Expereo’s responsive support services.

Karim Benkirane, chief commercial officer at du, said the collaboration will also result in improved network infrastructure, ensuring better connectivity and coverage.

« This collaboration opens the doors for us to deliver cutting-edge technologies and superior customer experiences, addressing the global networking demands of our customers in the UAE and government sector,” he said.

The MoU with du was revealed the day before Expereo announced that it has added fixed wireless access to its global solutions portfolio.

The service gives enterprises direct access to wireless networks across 190 countries, either as a primary connection or as a backup. While the fixed wireless solution is pitched as a connectivity option for remote areas, Expereo says it can also be used to set up branch offices quickly.

The fixed wireless access option is also integrated into Expereo’s customer experience platform, expereoOne, which means customers have a single window to view all of their Expereo services. For fixed wireless, that includes monthly invoices and an up-to-date status of all data pools and bundles, as well as signal strength, signal quality and the carriers providing the connectivity.

News

Internet providers are preparing their post-ACP game plans

The end of the Affordable Connectivity Program (ACP) is fast approaching and providers and consumers alike are preparing for their next steps.

In early 2022, the Federal Communications Commission (FCC) launched ACP to replace the Emergency Broadband Benefit. The program provided eligible households $30 per month towards internet service ($75/month for those on qualifying Tribal land). Some households could also receive a one-time discount on purchasing a laptop, desktop, or tablet.

Now, the end of the ACP is imminent, unless Congress allocates additional funds. The program has less than $1.8 billion remaining, meaning that April is the last month in which operators will be able to provide the full $30 per month benefit with the program’s funding. In May, operators can choose to discontinue the benefit, or to put in place their own subsidized plans.

In a statement released on April 9^th, 2024 the FCC indicated that the maximum benefit providers should expect to receive in May is $14 per ACP customer, or $35 per qualifying Tribal customer. The FCC stopped accepting new ACP enrollments in February.

Several providers have already outlined the strategies they will take to “keep consumers connected at this crucial time”, as urged by the FCC.

Verizon will offer home internet for as low as $20/month through “Verizon Forward”. New Verizon Forward customers will pay $0/month for the first 6 months they are enrolled.

AT&T will continue offering its “Access from AT&T” plan which provides 100 Megabit speeds for $30/month. With the ACP’s $30 discount, this plans was previously free for some customers.

With home internet from $9.95/month, Comcast’s “Internet Essentials” plan will continue to provide a low-cost connectivity option. Additionally, customers can transfer their ACP benefit to some plans.

Charter, who was “far and away” the largest provider in the ACP program, has not made specific announcements about ACP replacements or alternatives. However, some customers who were using the ACP benefit may be eligible for Spectrum’s Internet Assist Plan. This offers 50 megabit internet for $24.99/month.

Through August 2024, Fastwyre Broadband will continue to provide the $30 ACP benefit (and $75 benefit for those on Tribal lands) at its own expense. This applies to their existing ACP customers.

A number of other providers offer discounted plans for qualifying families, some from $10 per month. The Lifeline program will continue to provide a benefit, though it is smaller than that provided by the ACP. There are also a number of charitable organizations that can offer assistance with monthly internet costs or provide internet-enabled devices like laptops or tablets.

While there is bipartisan support for extending the ACP and there have been calls from ISPs, government bodies, and advocacy groups to provide additional funding, it seems increasingly unlikely that the program will continue.

Currently, more than 23 million households rely on the ACP to access the internet. The COVID-19 pandemic made it more clear than ever that a reliable, fast internet connection is crucial for participating fully in modern life. Without the extension of ACP or a comprehensive alternative, millions of Americans face being excluded from a host of opportunities.

Are network operators doing enough to shift the tackle the digital divide in America? Join the discussion live in Houston at this year’s Broadband Communities Summit

Also in the news:
South Korea to invest $7 billion in AI semiconductors
Swisscom expands 5G partnership with Ericsson
Daisy Group set to acquire 4Com for £215m

A few interesting bits of vendor news from around the industry: … [visit site to read more]

PLDT’s wireless unit Smart Communications said on Tuesday that in the first quarter of this year, it has blocked more than 13 million SMShing (a.k.a. “smishing”) messages designed to help criminals take over people’s social media accounts.

SMShing is the SMS equivalent of email phishing. Like with email phishing, SMShing tries to get the victim to click a malicious link. However, SMShing uses short links, which makes it harder for users to see the actual link before they click.

According to Smart, the Philippine National Police (PNP) has linked SMShing to a rise in ‘hijack profile’ cases, in which attackers gain unauthorized access to someone’s social media account. In some cases, the victims are locked out of their own account, after which the attacker messages the victims’ contacts to ask for money, usually pretending to be sick or suffering from some other calamity.

Smart said that in addition to blocking SMShing messages, it has also blacklisted almost 200,000 mobile numbers involved in phishing activities.

Elijah Mendoza, digital communications senior manager at Smart, advised customers to be extra cautious when receiving SMSs with embedded short links, even if they appear to be from someone they know.

“Phishing is the most common technique employed by bad actors to trick you into revealing your data. Don’t go on autopilot mode and click or tap links,” Mendoza said.

SMS fraud has been a problem in the Philippines for years, although a 2022 law requiring people to register for prepaid SIM cards is often credited by regulators and telcos to have helped curb the problem.

In February, Globe Telecom said that it intercepted 21.9 million bank-related spam and scam SMSs in 2023, which is over 73% less that the 83.39 million messages it blocked in 2022.

However, mobile fraud remains one of the most common forms of fraud in the Philippines. According to survey data from Statista, 43% of consumers said they had been targeted by SMShing messages in the fourth quarter of 2023.

On Monday, Senator Sherwin Gatchalian – who co-authored the SIM registration law – said the National Telecommunications Commission (NTC) needed to do more to enforce the law. According to the Philippine News Agency, Gatchalian cited recent cases in which authorities discovered that offshore gaming operators are still using unregistered SIMs.

News 

The investment cements Abu Dhabi and the wider United Arab Emirates (UAE)’s position as a global AI hub 

Microsoft and UAE-based AI company G42 have announced a strategic partnership to accelerate AI innovation in the UAE and neighbouring regions.  

The partnership involves a $1.5 billion investment in G42 from Microsoft, giving them an unspecified minority stake in the company.  

Brad Smith, Microsoft’s Vice Chair and President, will also join G42’s board of directors.  

The focus of the partnership is to innovate and deliver advanced AI solutions supported by Microsoft Azure across various industries, including finance, healthcare, energy, government, and education. 

Specifically, Microsoft will give G42 permission to sell Microsoft services that use AI chips and in return, G42 will use Microsoft’s cloud platform to run its AI applications. 

“The commercial partnership is backed by assurances to the US and UAE governments through a first-of-its-kind binding agreement to apply world-class best practices to ensure the secure, trusted, and responsible development and deployment of AI,” read the press release. 

The partnership also includes initiatives to train AI talent through a $1 billion fund for developers, promoting skills development and fostering innovation in emerging markets. 

“Through Microsoft’s strategic investment, we are advancing our mission to deliver cutting-edge AI technologies at scale. This partnership significantly enhances our international market presence, combining G42’s unique AI capabilities with Microsoft’s robust global infrastructure,” said G42 CEO Peng Xiao in a press release. 

The ongoing US-China power struggle for the UAE 

‘This investment takes place against the backdrop of both the US and China attempting to grow their influence in the UAE’s flourishing technology industry’. The deal has been finalised in close collaboration with both the US and UAE governments to ensure that G42 is fully compliant with US regulations.  

President Biden’s government has been notably concerned over increasing closeness between The Gulf Cooperation Council and China, a relationship which would potentially limit companies in the Middle East from being trusted partners in the US.  

Back in January, Representative Mike Gallagher (R-WI), Chairman of the House Select Committee on the Chinese Communist Party, expressed concerns that G42 had links to Chinese firms blacklisted by the US government, including Huawei, which G42 denied.  

Then, in February, G42 announced its intention to divest in its Chinese businesses interests, a move G42 explained as an effort to reassure US partners, who include US private equity firm Silver Lake, of data sovereignty.  

The size of the divestments was not disclosed, but stakes included an estimated $100m in ByteDance, owner of TikTok.  

Speaking to the Financial Times, Xiao said “For better or for worse, as a commercial company, we are in a position where we have to make a choice. We cannot work with both sides.” 

The New York Times’ report adds that the deal today puts protections on the AI materials Microsoft may share with G42. These include an agreement for G42 to remove Chinese equipment from their operations, including Huawei equipment, which the US government fears “could provide a backdoor for Chinese intelligence agencies.” 

“In order for us to preserve our relationship – which we cherish – with our US partners, we simply cannot do much more with Chinese partners,”said Xiao. 

The US position on the matter remains painfully clear, as laid out by numerous government representatives.  

“When it comes to emerging technology, you cannot be both in China’s camp and our camp,” said Gina Raimondo, the Commerce Secretary, according to a report from the New York Times. 

Keep up to date with the latest international telecoms news by subscribing to the Total Telecom daily newsletter

Also in the news:
South Korea to invest $7 billion in AI semiconductors
Swisscom expands 5G partnership with Ericsson
Daisy Group set to acquire 4Com for £215m