At Mobile World Congress Shanghai 2024, James Chen, President, Carrier Business at Huawei, gave a keynote speech entitled « Secondary 5G Innovation: Charting a New Course for Business Success ».

While primary innovation unleashes tech dividends, secondary innovation accelerates business success – and there are numerous examples of this from throughout history.

The compass was invented in China, making it possible for humankind to travel the sea. In the 16th century, Magellan completed his first round-the-world voyage. Later, with the help of high-speed gyroscopes, navigation developed rapidly, achieving the current annual global maritime trade of US$500 billion.

As early as the days of ancient Greece, the prototype steam engine was invented, and in the 18th century Britain’s James Watt successfully improved the concept, leading to the first industrial revolution. With the invention of internal combustion engine and motor, the automobile industry achieved prosperity.

If we look at mobile communications, after the Italian scientist Marconi completed transoceanic wireless communications, with the invention of mobile phones, mobile communications completely opened up the development of mobile communications. By the end of 2023, the number of global mobile users reached 8.6 billion.

This shows that primary innovation releases technological dividends, and secondary innovation accelerates business prosperity. At present, 5G is at a historic moment of secondary innovation.

Secondary 5G innovation will supercharge experience, business, and monetization

ICT technology, represented by 5G, is accelerating its integration into all fields and links of China’s economy and society. China has built the world’s largest and most advanced 5G network. As of April, the number of 5G users in China had exceeded 880 million, accounting for 52% of the world’s total. China’s 5G base stations account for two-thirds of the world’s global base stations, and the number of 5G IoT connections exceeded 30 million. China is leading the world in terms of 5G development scale and quality.

Just as Watt’s improved steam engine opened the industrial revolution, China’s secondary 5G innovation accelerates business monetization and opens a new stage of business success from three aspects: user scenarios, network-cloud-intelligence synergy, and ecosystem collaboration.

Example: Translating inspiration into opportunity

In Kaifeng, Henan Province, there is a famous blind date show. Many young people come to sign up to find a partner, speaking up bravely to show their affections. When the show begins, the walls, the hills, and the opposite teahouse are all crowded with enthusiastic tourists, and the front row is crowded with live streamers.

Many live streamers will use multiple mobile phones, at the same time connected to multiple livestreaming platforms. If network stuttering occurs, they may lose followers. The streamers’ top concern is ensuring that they can live stream among thousands of mobile phones onsite, with high-definition, non-stuttering images. Chinese operators have found the answer to this scenario.

Scenario innovation: Reinventing the value of user groups and scenarios to accelerate multi-metric network monetization

To meet the differentiated requirements of live broadcast for network experience, 15 carriers in China have subscribed to live broadcast packages that provide heavy traffic and guarantee live video upload experience, greatly increasing their ARPU.

There are four considerations for developing live broadcast packages: first, the potential customers must be found quickly; second, the package is accurate; third, the experience is stable; fourth, the user can stay. With the large uplink and preferential network access capabilities of 5G, operators meet the specific requirements of live broadcasters in an end-to-end manner.

Live broadcast scenarios open the door to upstream network monetization. With new capabilities such as service-level acceleration, and deterministic experience, we can gradually extend to more scenarios, more people, and more applications, reconstruct the spatial and temporal value of people in scenarios, and accelerate multi-dimensional network monetization.

Integrated innovation: New Calling as a new entry to information services with network-cloud-intelligence synergy

The new call is one of the hot spots for the second innovation of 5G services: 5G + cloud + AI. Through the collaboration of network, cloud, and intelligence, converge and innovate to build a new entry point for digital services.

Its original innovation intention, based on AIGC, focuses on fun for young people, big subtitles for the elderly, real-time translation for overseas business travelers, and ultimately on ensuring a good product experience.

Of course, business success requires continuous incubation of high-value scenarios and high-quality applications, refined operation assurance, and continuous innovation of Internet marketing.

The new call service uses the dialup disk of a mobile phone as the entry, providing a HD interactive call experience, and continuously evolving to providing all-scenario information services.

The development of new calls goes through two phases. In the first phase, AIGC is used to build products based on HD call experience and expand the number of subscribers.

In the second phase, high-quality applications are built quickly by incubating high-value 2C and 2B scenarios. In the future, multiple call products will be integrated to build a full-scenario information service portal through network, cloud, and intelligent collaboration.

Cloud mobile phones have achieved a « real-like » experience. The next steps are for image resolution to be upgraded to 2K, and latency gradually reduced to 100 ms – in effect achieving the real experience.

In terms of operation, Zhejiang Cloud T Card launched one SIM card = cloud mobile phone + sponsored traffic + cloud disk + rights, and the cloud mobile phone business developed rapidly. In the next phase, Huawei will work with carriers to continuously develop ecosystem and product evolution, incubate new AI applications.

Integrated innovation: IoV with network-cloud-intelligence synergy

Unmanned delivery vehicles can flexibly avoid vehicles and pedestrians and actively identify traffic signals. More than 1000 such delivery vehicles will soon be deployed in Shenzhen. Unmanned delivery vehicles perform video backhaul and remote control through 5G networks, which will bring new opportunities for operators.

In the next five years, 100 million new online vehicles will be added worldwide every year.

In the passenger car market, 4G connectivity remains the mainstream. As cars become more and more intelligent, 5G is overwhelming, and mobile phones, homes, and cars will be deeply integrated. The high-performance eMBB module and the RedCap cost-effective module can meet the high-end and low-end connection requirements of automobile enterprises respectively.

In the commercial unmanned vehicle market, 5G large uplink has met the requirements for 1080p HD video backhaul. QoS and slicing will further ensure video backhaul and remote control.

Integrated innovation: IoVT with network-cloud-intelligence synergy

RedCap can provide the connection capability with optimal performance and cost. Currently, the core, module, and device ecosystem of RedCap is mature, and the industry traffic package has been successfully implemented.

In terms of industry, the RedCap Industry Summit was recently held in Suzhou to discuss the expansion of 5G IoT and build billion-level connections. In terms of the market, Huawei will continue to build standard products that can be quickly replicated and provide continuous coverage of 5G networks.

Collaborative innovation: E2E industry collaboration boosts video service traffic

Currently, whether consumers watch short videos, long videos, or video calls, the resolution is 540p or 720p. At a recent forum in Shanghai entitled “Enjoy HD China: AI era mobile video high-quality development forum”, Huawei proposed the « 1080P silent opening » initiative to improve consumer experience, enhance VIP user stickiness, and make full use of China’s leading network capabilities.

The number of naked-eye 3D terminals is also growing rapidly, and the 3D content ecosystem is becoming mature. We hope to promote further breakthroughs in 3D content, technologies, and experiences through multi-industry alliances to achieve win-win results.

Advancing from 5G to 5.5G to unlock more business opportunities

Leading operators are moving from 5G to 5G-A. Over 30 operators have completed 5G-A technical verification and 15 operators have started commercial deployment.

5G-A enables smart bicycles to move towards vehicle-road collaboration and expands the business space from connectivity to cloud. 5G-A supports passive IoT and opens up 100 billion new IoT spaces.

5G business success is not achieved overnight. Instead, it involves exploration, practice, and innovation. Huawei is willing to work with operators and ecosystem partners to promote secondary 5G innovation and jointly usher in a new stage of 5G business success through scenario innovation, convergence innovation, and cooperative innovation.

News

The deal is expected to increase the scale of Nokia’s optical networks business by 75% 

Nokia has announced the acquisition of California-based Infinera, a global supplier of optical transport networking solutions, for $2.3 billion, as the Finnish company looks to expand its optical networking in North America. 

The deal is expected to “strengthen the company’s technology leadership in optical and increase exposure to webscale customers, the fastest growing segment of the market,” said Nokia. It expects to make €200 million of net comparable operating profit synergies by 2027. 

The transaction, valued at $6.65 per share and working out at $2.3 billion, represents a 28% premium over Infinera’s closing share price on June 26, 2024. The deal will be financed with at least 70% cash and up to 30% in Nokia stock.  

“In 2021 we increased our organic investment in Optical Networks with a view to improving our competitiveness,” said Nokia President and CEO Pekka Lundmark in a press release. 

“That decision has paid off and has delivered improved customer recognition, strong sales growth and increased profitability. We believe now is the right time to take a compelling inorganic step to further expand Nokia’s scale in optical networks. The combined businesses have a strong strategic fit given their highly complementary customer, geographic and technology profiles,” he continued. 

After the recently announced sale of XX, Nokia confirmed that its network infrastructure will be reshaped on three pillars: Fixed Networks, IP Networks and Optical Networks. 

Just yesterday, Nokia announced that it will offload its subsea unit Alcatel Submarine Networks (ASN) to the French state for €350 million, solidifying its intention to focus on its core network infrastructure portfolio. Nokia will retain a 20% shareholding along with board representation to ensure a smooth transition, at which point the French state will take the remaining 20%. 

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

Also in the news:
Nvdia and Ooredoo launch data centre deal 
Nexperia to Invest 200 Million USD in Hamburg
US launches probe into Chinese telcos over data concerns 

This Industry Viewpoint was authored by Eli Katz, Founder and CEO of XConnect

Fraudsters are ramping up their attacks on messaging services and it’s draining revenue streams. SMS is a hugely valuable channel for brands with one of the highest engagement rates, and yet it also still holds a large untapped business market. Despite this, it is facing an uncertain future due to a sharp rise in fraudulent activity. … [visit site to read more]

News 

The move is a huge investment in the North of England, and will create the UK’s third Microsoft datacentre 

Microsoft has announced that it will build a huge data centre on the outskirts of Leeds, on a site costing £106.6 million. 

The deal was announced by Rotherham based property development group Harworth, who said the deal was the largest in its history.  

The hyperscale data centre site will be comprised of two plots, one of 27 acres valued at £52.9 million, and one of 21 acres valued at £52.2 million. The development company has said the site will bring around £4 billion to the local economy and create many jobs. 

Not many additional details, such as completion dates, were disclosed. 

Microsoft currently has two data centres in operation in the UK; one in London and one in Cardiff. Back in November, the company announced an investment of £2.5 billion in expanding its next-generation AI data centre infrastructure across the UK.  

The plan includes bringing over 20,000 advanced Graphics Processing Units (GPUs) to its sites in London and Cardiff by 2026, which are essential for machine learning and AI model development. The investment aims to meet the growing demand for efficient, scalable, and sustainable AI-specific compute power, positioning the UK as a hub for cutting-edge technology. The investment is the company’s largest in its 40-year history in the UK.  

Prime Minister Rishi Sunak called the investment a “turning point for the future of AI infrastructure and development in the UK.” 

Join the conversation on the North’s connectivity sphere at next year’s Connected North event, 23-24 April in Manchester – get discounted tickets here! 

Also in the news:
Nvdia and Ooredoo launch data centre deal
India concludes underwhelming 5G spectrum auction
US launches probe into Chinese telcos over data concerns 

Two years after India’s Department of Telecommunications (DoT) sought views on the need for overhauling laws governing the telecommunications sector (and nearly 75 years after the last relevant legislation of the sector) India has a new, updated Telecom Act. It came into effect on 26 June.

The Telecommunications Act 2023 (the year refers to when it was introduced rather than when it became law), replaces a number of earlier laws, including the Indian Telegraph Act 1885 and the Indian Wireless Act 1933.

It’s clearly an understatement to say that technology has changed a lot since then. At the very least, many definitions and terms are completely different, but provisions for spectrum allocation and right of way also needed looking at, along with regulations related to ease of doing business and penalties for offences and non-compliance.

Which seems to be what has happened. As India’s Economic Times points out, there is now a simple regulatory framework. The licensing regime has been replaced with an authorisation mechanism. Right of way rules (a big problem a few years ago) have been updated.

There’s a clearly defined framework for spectrum assignment, including efficient spectrum utilisation, and an adjudication mechanism to resolve disputes before they go to law.

There are also provisions to take necessary measures for national security and public safety. In particular the Act confers power on the government to take temporary possession of telecom networks during public emergencies, including natural disasters. In addition there is now a framework for blocking and interception.

Obviously there’s a lot more to this legislation: there are 11 chapters and 62 sections in the new Act. But the long wait before its arrival makes it clear that legal frameworks are in danger of being left behind by telecoms in some territories.

Indeed, operator Cameroon Telecoms (Camtel) recently suggested that the country’s parliament needs to reform outdated legislation and provide a robust legal framework for the country’s digital economy.

Some legislators clearly agree. Tellingly, Bara Julien, president of the Parliamentary Network for Information and Communication Technologies, is quoted as saying: “Our telecoms laws are obsolete as they date back to many years. But the evolution of technology is constant.”

It’s a point that could be made in many markets with outdated telecommunications laws. How quickly will they respond?

Telecom Namibia has announced what it calls a three-year transformative partnership via a joint venture between mobile technology company ZTE Corporation and its partner company Huafull International Limited.

As part of the company’s five-year Integrated Strategic Business Plan (ISBP) 2027, Telecom Namibia intends to invest in the modernisation of its mobile network (called tn mobile) and coverage expansion. This will include the rolling out of new mobile base stations and the upgrading of existing mobile base stations across the country.

Under the terms of the agreement, Telecom Namibia will procure cutting-edge mobile radio access equipment from the ZTE Corporation and Huafull International Limited joint venture to bolster its mobile network capacity and coverage across the country, including previously underserved areas. The partnership will facilitate the deployment of advanced mobile radio access technology such as 4G, 4.5G, and 5G in order to bring quality, fast, and reliable mobile broadband services to tn mobile consumers.

ZTE Corporation, together with Huafull International, has been involved in the design, construction, and operation of Telecom 3/4G wireless networks since 2013.

Telecom Namibia says the integration of ZTE’s state-of-the art equipment into its network will enable the deployment of next-generation technologies, empowering users with faster data speeds, and improved reliability, while expansion in coverage through the deployment of new sites will enable seamless connectivity.

By leveraging ZTE and Huafull’s expertise and innovation, Telecom Namibia says it aims to accelerate the expansion of its mobile network footprint and deliver enhanced services to both urban and rural areas across the country. 

News 

The partnership is Nvidia’s first large-scale entry to the Middle Eastern market 

Nvidia and Ooredoo have partnered in a deal to deploy “thousands” of Nvidia’s GPUs (graphic processing units) in 26 data centres in five countries (Qatar, Kuwait, Oman, Algeria, Tunisia, and the Maldives). 

The value of the deal has not been disclosed, but it marks Nvidia’s first large-scale entry into the Middle East. 

The Qatari operator has become an Nvidia Cloud Partner, meaning that is “developing an AI-ready platform powered by NVIDIA’s full-stack innovation across systems, software, and services.” It also means that Ooredoo will be the first company in the MENA region whose clients will have access Nvidia’s AI and graphics processing technology, said the companies. 

“Implementing NVIDIA’s full-stack platform for accelerated computing and generative AI, Ooredoo is equipped to be at the forefront of the AI revolution in MENA, driving digitalisation and innovation as the leading digital infrastructure provider in the region. Working with NVIDIA, we aim to meet the significantly growing demand for accelerated computing infrastructure to support advanced AI models,” said Aziz Aluthman Fakhroo, Group CEO at Ooredoo in the announcement’s press release. 

“As a trusted regional telecommunications provider, Ooredoo Group combines deep enterprise and consumer relationships with the ability to invest in and deploy AI infrastructure and services,” Ronnie Vasishta, Senior Vice President of Telecom, NVIDIA. 

“By providing NVIDIA’s full-stack AI computing platform to customers, Ooredoo will help make it easier for their customers to deploy generative AI applications and services,” he continued. 

Recently, The US has imposed restrictions on the sale of advanced semiconductors to certain Middle Eastern nations, motivated by concerns that these high-tech chips could end up in the hands of China. These chips, which are critical for advanced computing and military applications, have become a focal point in the technological and geopolitical rivalry between the US and China. 

This deal, however, is compliant with the latest US impositions. It is A100 and H100 chips that are the focus of the restrictions, not GPUs. 

“As a telecom operator, dealing with very stringent regulation is business as usual. We are used to dealing with regulators and government authorities, whether they’re local or international,” said Fakhroo when speaking to CNBC. 

“We are working very closely with the different regulators and with Nvidia to see all the required approvals and to provide all the guarantees required,” he continued. 

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Also in the news:
Telefónica and Nokia sign agreement to boost adoption of network APIs
Orange mulls selling its stake in Mauritius Telecom
Ericsson Mobility Report: 5G driving change in service providers’ FWA strategies