News 

The vendor expects the decline in 5G demand will continue from last year 

Sweden’s Ericsson says it expects a further decline in 5G equipment sales to mobile operators in the coming year, despite the company beating its Q4 profit expectations this week. 

Sales are slowing in both the US and India – a concerning trend given the latter is typically classed as a high growth market and still has a long way to go with its 5G rollout. 

In Q4, revenues dropped 16% year-on-year to SEK 71.9 billion ($6.9 billion), compared to a 5% drop in Q3. Net income fell 30.5% to SEK3.4 billion ($323.7 million). 

“As we look to 2024, we expect the market outside China to further decline, with similar uncertainties as experienced in 2023,” said President and CEO Börje Ekholm in the results’ press release. 

“We expect a… a further decline of the RAN [Radio Access Network] market outside China as our customers remain cautious and the investment pace is normalizing in India,” continued the press release. 

“5G only being in the early stages of build-out will require additional network investments. In our view, the current investment levels are unsustainably low for many operators.” 

To combat the decline in revenues, Ericsson has confirmed that it will continue to focus on cost efficiency and operational efficiency in the coming year, which could include layoffs, reports Reuters. The company already announced that 8,500 job will be cut between the middle of 2023 and end of 2024. 

Despite the forecast decline, Ericsson is expected to get a boost from the $14 billion from its deal with AT&T in the second half of this year. This deal was signed back in December and will see Ericsson supply the Open RAN equipment to the US telecoms giant, which hopes the open technology will carry 70% of its wireless traffic by the end of 2026. 

In a separate press release today, the company announced that it has appointed Lars Sandström as Chief Financial Officer, replacing Carl Mellander, who announced his departure in April. 

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It has been widely reported in the Indian press that Tata Communications Transformation Services (TCTS), a subsidiary of Indian digital ecosystem enabler Tata Communications, has issued a service contract  termination notice to operator Vodafone Idea (aka Vi) after the company did not pay TCTS on time.

Tata Communications is apparently in discussion about a disengagement transition plan with Vodafone Idea, though it has not named the operator specifically.

A notice to the stock exchange suggested that the carrying amount of trade receivables from the operator may have been Rs 221.19 crores (about US$26.6 million) in December 2023.

As news reports point out, TCTS handles maintenance work for Vodafone Idea’s fibre assets. However, Vodafone Idea has apparently offered an assurance that customer services will remain unaffected despite the termination of the service contract by TCTS. The work will now be brought in-house.

What may be more significant in this case is that this is a big vendor withdrawing its services to Vodafone Idea over non-payment, which does not seem to have happened to the operator before.

What this says about Vodafone Idea’s financial situation is unclear. News reports suggest that the operator is clearing its debt obligations to lenders and banks. However, some payments owed to vendors are apparently being delayed. 

We have already mentioned Vodafone Idea’s issues with Indus Towers (which led to threats to restrict service, though not their outright withdrawal). The operator also needs to pay other vendors such as American Tower Corp (ATC), Nokia and Ericsson. And, of course, it needs to find money for 5G rollout given the ground it has lost to competitors Bharti Airtel and Reliance Jio.

News 

The announcement comes after Telefonica was forced to reapply for the tender following competition authority intervention 

Telefonica has this week announced that it has retained the exclusive rights to air games from La Liga (the top tier of Spanish men’s football) via its Movistar plus streaming service, until the end of the 2026-27 season. 

The Spanish telco can now broadcast five out of the ten live football matches per week, and will pay €1.29 billion to do so. 

In 2021, La Liga had initially agreed broadcast contracts with streaming platform DAZN and Telefonica until the end of the 2026-27 season, but were mandated to re-tender the rights after intervention from the (National Commission on Markets and Competition CNMC), Spain’s competition regulator.  

The CNMC argued that Telefonica should have not been allowed to buy the broadcasting rights for a period exceeding three years, under the terms of its acquisition of pay TV operator Digital+ in 2015. 

This term limit has now been scrapped, which has resulted in Telefonica being able enter and win a new tender process. Telefonica bid €250 million for the 2024/25 season and €520 million for each of the 2025/26 and 2026/2027 seasons. 

This newly acquired tender does not affect the rights held by DAZN, which also runs until the end of the 2026-27 season. 

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AT&T, Google, and Vodafone partner for $155 million investment in AST SpaceMobile  
AWS to invest $15bn in Japan’s cloud computing infra
Manchester named the UK’s most digitally inclusive city 

Press Release

Singtel announced today that it will augment its maritime digital offerings with Starlink’s satellites to drive adoption of digital solutions by ship owners and operators so they can innovate and tap into advanced technologies such as artificial intelligence (AI), 5G, edge computing, as well as access cloud-based solutions to improve safety, operational efficiencies, and crew well-being. With enhanced connectivity and low latency capabilities, ship operators can analyse data in real-time to increase productivity, reduce costs of fuel consumption and operational maintenance, among other benefits.

Starlink is the first low Earth orbit (LEO) broadband service to be added to Singtel’s comprehensive portfolio of award-winning, digital smart solutions for vessels known as iSHIP, which also includes Paragon – the telco’s an all-in-one orchestration platform for 5G edge computing and cloud services. The platform will manage and automate the smart switching between satellite communication services ensuring uninterrupted, high quality network coverage as ships traverse long distances, including the most remote locations and under severe conditions. It will also enable ships to leverage edge computing, host mission critical applications either on-premises or at shore – freeing up valuable bandwidth and improving reliability.

“The maritime industry is a complex, interconnected environment involving large volumes of data being transmitted between thousands of terminals, ships, and ports across the world. We have seen growing demands for faster, more resilient, and low latency connectivity as the industry starts to embrace digital transformation. The addition of Starlink to our existing suite of satellite communications solutions, orchestrated by our patented Paragon platform, is part of our multi-orbit strategy to increase the resilience of satellite connectivity in the industry and to enable the rapid adoption of digital technologies and solutions. As the first telco in Singapore to offer Starlink, we are confident that this offering will further facilitate the development of smart, secure, and sustainable solutions that will positively impact the industry,” said Mr Bill Chang, Chief Executive Officer, Digital InfraCo, Singtel.

Transforming the maritime industry with hyperconnectivity

High-speed, end-to-end connectivity is required to improve operational efficiencies, lower costs and raise the safety and security of vessels. Starlink is the world’s first and largest satellite constellation using LEO technology to deliver high-speed, low-latency Internet connectivity in even the most remote locations. As the only telco in the Southeast Asian region that features a multi-band satellite network including both LEO and geostationary orbit (GEO) offerings, customers can be assured that their ships and crew stay connected even in the most demanding maritime conditions.

With over 5,000 satellites in its constellation, Starlink can provide global maritime coverage for vessels of all sizes, delivering up to 220 Mbps download speed – easily capable of supporting fleet management, remote monitoring, and navigation. The flat high-performance kit is designed for mobility

applications and challenging environments with operating temperatures from -30°C to 50°C. Starlink’s small form factor, simple installation process and efficient power consumption will ensure easy integration and energy efficiencies for ships of all sizes.

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News 

The investment is expected to add over 37 billion to the Japanese GDP 

Amazon Web Services (AWS) has today announced plans to invest 2.2 trillion Japanese yen ($15.24 billion) in Japan’s cloud computing infrastructure by 2027. 

The investment, which was announced at a press conference in Tokyo today, will go towards the expansion and strengthening of facilities in Tokyo and Osaka to meet growing customer demand.  

AWS says the strengthening of its data centres and developing its cloud computing infrastructure is vital for the support of future AI services, including generative AI, the demand for which is rapidly growing. The boom in popularity of services such as ChatGPT, an AI chatbot developed by U.S.-based OpenAI, is likely to have contributed to the investment demand. 

AWS have had a presence in Japan since 2009 and have been steadily increasing their investments in the country. From 2011 to 2022, AWS spent 1.51 trillion yen ($10.20 billion) on increasing cloud capacity in the country. 

Japan is not the only market in which AWS is expanding. 

In May last year, AWS pledged to invest a huge $12.7 billion in the Indian data centre market by 2030, once again to meet the country’s growing demand for cloud services.  

The fact that the investment in Japan is even higher shows AWS is placing huge importance on the Japanese market, with its advanced level of digitalisation likely giving it a more urgent need for cloud infrastructure. 

“We see Japan as a very important country,” Tadao Nagasaki, head of the Japan unit of AWS, told the press conference. “The investment will support Japanese customers’ data utilisation, generate various economic spillover effects and contribute to Japan’s growth,” he continued.  

The global cloud computing market is dominated by three main players: AWS, Microsoft and Google, who together have two thirds of the market share. The market was valued at $495.3 Billion in 2022. 

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News 

AST SpaceMobile will use the financing the help further secure their position in the emerging direct-to-device satellite communications market 

This week, AST SpaceMobile has announced a combined $155 million strategic investment from AT&T, Google and Vodafone.  

This funding is roughly divided into three portions: $110 million in 10-year subordinated convertible notes with 5.5% interest, with a conversion price of $5.75 per share, divided between all three parties; a $20 million revenue commitment from AT&T based on the successful activation of services delivered by AST’s first five satellites; and a $20 million minimum commitment from Vodafone still subject to definitive agreement.  

Vodafone was already an existing investor in AST SpaceMobile, while Google and AT&T are first-time investors.   

Alongside this external investment, AST SpaceMobile is also planning to draw up to $51.5 million from the company’s existing senior-secured credit facility.  

The gross proceeds from both activities will total $206.5 million. 

In addition to their investment, both Vodafone and AT&T have purchased network equipment (for an undisclosed amount) from AST to support their planned commercial services, while Google has agreed to collaborate with AST SpaceMobile on product development related to their Android handsets.  

In the press release, AST SpaceMobile claim that they invented the space-based direct-to-device market and are the first and only global cellular broadband network in space to connect with regular, unmodified mobile phones. 

In partnership with Vodafone, AT&T, Rakuten, and Nokia, AST SpaceMobile has already achieved various connectivity milestones with their technology, including 2G, 4G LTE, and 5G calls, and 14 Mbps download speeds per 5 MHz channels, delivered directly to standard smartphones.  

It is hoped that this technology will ultimately enable customers to access high quality connectivity anywhere where they have an unobstructed view of the sky. 

“Our vision at AST SpaceMobile has always been to chart a course of collaborative innovation and integration with the world’s leading wireless companies, which is why we are so thrilled to be welcoming this new strategic investment from AT&T, Google and Vodafone,” explained AST SpaceMobile CEO Abel Avellan.  

“With this strategic investment, we are gaining capital, invaluable expertise, and strategic partnership. This investment comes alongside prior investments by other leaders in the wireless ecosystem, including Rakuten, American Tower, and Bell Canada, all of whom are not only part owners of AST SpaceMobile but also serve as our technology partners and customers. Each new partnership signifies that market leaders worldwide have tremendous confidence in our vision and ability to ensure that the future of cellular broadband is borderless.” 

It is worth noting here that AST SpaceMobile is not alone when it comes to developing direc-to-device satellite communications for unmodified devices. Elon Musk’s Starlink constellation is working on a similar project, having made their first direct-to-device text from space just last week. The company hopes to expand these capabilities to voice and internet services next year. If this does come to pass, then AST SpaceMobile will find themselves in direct conflict with a company many times their own size against whom it may be hard to compete effectively. 

In this sense, this investment from Google, Vodafone, and AT&T serves as an important vote of confidence in AST’s technology and the company’s vision for the direct-to-device sector more broadly. 

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Ukheshe International, a South African fintech enablement partner with an expanding footprint in key emerging markets, has acquired EFT Corporation, an Africa-focused payment and e-commerce solutions provider, from parent Loita Transaction Services (LXS), a pan-African payment solutions and financial switching provider.

The businesses say they will continue to operate as separate entities and maintain their respective brand identities for the foreseeable future. They add that the partnership ensures EFTCorp’s customers will continue to engage with a trusted brand while gaining access to an expanded suite of innovative digital services through Ukheshe.

As a 23-year-old pioneer of digital payments in 35 African markets supporting over 100 banks and processors, EFTCorp is known for its core switching skills and issuer processor technology. Ukheshe’s offerings encompass a comprehensive range of end-to-end digital services that assist in digitising banking partners.

This deal allows the wider group to access new technologies and opportunities in a diverse market, enhancing exposure to different customers, projects and business opportunities across Africa and the Middle East.

Ukheshe says that its expertise in digital onboarding, know your customer (KYC), digital wallets, and various payment channels will open new opportunities to digitise EFTCorp’s traditional customers who rely on established electronic payment processing systems.

Ukheshe has certainly been active in this market in recent years. This transaction follows on from Ukheshe’s 2022 acquisition of Masterpass, Mastercard’s QR code payments service, in South Africa, and the closing of a funding partnership with Development Partners International (DPI) in 2023, not to mention Ukheshe’s 2020 purchase of Oltio from Mastercard. Oltio developed the digital payments platform for Masterpass.

More recently, in 2021, Ukheshe Technologies and Infobip, a global cloud communications platform, developed what they called South Africa’s very first WhatsApp payment gateway.

It remains to be seen whether this latest deal is, as Ukheshe claims, “a significant move for the African fintech ecosystem”, let alone “a landmark deal that positions the new group for market dominance”. But Ukheshe clearly has major ambitions in this market.

As co-founder and CEO Clayton Hayward says, “The market is ripe for consolidation and disruption; bringing together these like-minded executive teams and our great products positions us to dominate the African continent as  the preferred banking solutions partner.”