Zzoomm throws its hat in the ring to acquire Trooli


News

Zzoomm is reportedly through to the second round of bidding to acquire its fellow altnet, which has also drawn attention from the likes of Virgin Media O2 (VMO2)

With the glut of investment in the UK fibre market finally beginning to dry up due to challenging economic conditions, consolidation appears to be on the horizon for the country’s altnet community.

Last month, reports suggested that altnet Trooli, which covers over 275,000 UK homes with fibre-to-the-home (FTTH), was being put up for sale.

It did not take long for the move to draw the attention of some of the market’s biggest players, with VMO2 being named in media reports.

Now, further reports from Sky News suggest that one of Trooli’s altnet peers, Zzoomm, could be interested in a merger. According to sources, Zzoomm has made it through to the second round of an auction being conducted by bankers at Lazard.

Zzoomm currently has roughly 100,000 premises passed by its own fibre network and has ambitions of expanding this total to one million.

Any deal for Trooli is likely to be valued at over £100 million.

In related news, last month we saw altnet consolidation already underway, with Fern Trading Limited, owner of Jurassic Fibre, Swish Fibre, Giganet, and AllPoints Fibre, merging the four networks into a single FTTH player.

How is the UK fibre landscape evolving in 2023? Join the operators in discussion at this year’s live Connected North conference

Also in the news:
Viasat–Inmarsat merger gets provisional greenlight from CMA
Verizon shuffles executive team in search of growth
Ericsson to pay DoJ $206.7m over bribery scandal

Microwave Emerged As Trusted Choice For 5G and 5.5G Backhaul


VIEWPOINT

Microwave transmission is emerging as an important part of 5G deployment, especially so in European and Middle East markets, according to Huawei’s Perry Yang, President of Huawei’s microwave product line.

“Since the beginning of 5G deployment Microwave transmission has become a must for 5G deployment. It has been proven around the world that microwave has accelerated 5G deployment especially in markets such as Europe and the Middle East. It has become one of the most mainstream technologies for 5G backhaul in countries in these regions. And now the performance of Microwave has reached the same level as optical fiber cable,” said Perry Yang in an exclusive interaction with Total Telecom at Mobile World Congress 2023 in Barcelona, Spain.

Factors driving wide adoption of microwave transmission

There are several reasons for the growing relevance of microwave transmission. A key reason is that Microwave has evolved and is much more flexible technology now helping the service providers to address several new-age challenges. “The Microwave industry has witnessed several changes. For instance, it has evolved from single-band to multi-bands and also from single carrier component to multiple carrier components, thus helping service providers to increase capacity and improve network performance,” explains Perry Yang.

Further, microwave backhaul is able to meet the growing demand for capacity and low latency. It is also allowing service providers to provide services in areas where service providers are unable to deploy fiber. “Using Microwave for 5G deployment will help reduce the digital divide. For instance, in areas where fiber might be difficult to deploy Microwave will be the best and the most reliable way for people to access 5G connectivity,” says Perry Yang.

Further, microwave transmission is helping telcos bring down the power consumption. Huawei’s microwave range of solutions are empowering telcos in bringing down their power expenses while improving the efficiency of their network.

Even so, the most crucial reason for the growing adoption of microwave transmission in 5G is the use of E-band (71GHz–76GHz and 81GHz–86GHz) which has now emerged as the most crucial band for microwave deployment.

“5G demands almost 10 times the capacity as compared with LTE and that means that the operators need technology that helps in smooth evolution from 4G to 5G. We know that E band spectrum is as large as 10GHz which allows service providers to provide the required speed, capacity and coverage of 5G. Further, E-band adopts single band architecture and because of low power consumption it is very crucial for 5G,” explains Perry Yang.

He further highlighted the deployment Huawei LR E-band in Germany which demonstrated that Microwave transmission was able to cover a long distance of 7 km, thus helping the service provider in bringing down investment in fiber cable, which can now be used in some other areas. “The next generation of technologies will help telcos enjoy longer distance transmission and reduce cost because now they don’t need to pay that much for power,” said Perry Yang.

The traditional way to increase capacity for microwave transmission is to add more bands. However, that also leads to a more complex architecture and increased power consumption. Telcos also end up paying more for additional band licenses. However, now with the use of E-band for microwave transmission can truly empower the telcos.

Huawei recently introduced MAGICSwave range of solutions which is designed to help service providers address several challenges related to backhaul. Multi-T and multi-R construct with 50Gbps cross-band bandwidth capability ensures that the performance is similar to optical fiber. Further, Perry Yang elaborated that Huawei is also announcing the launch of MAGICSwave which will support the next ten years of evolution for service providers.

“These solutions are not just designed for 5G evolution but they are designed for 5G, 5.5G and will support the service providers with smooth evolution from 4G to 5G and then to 5.5G and even beyond,” says Perry Yang.

Helping Telcos Reduce Power Consumption

Huawei has taken a lead in helping service providers bring down power consumption without impacting the performance. “When the consumption is high microwave will need to provide more capacity but during idle time or at night microwave will not need to provide high capacity. We have technology that can dynamically sense the amount of traffic so during idle time or during night our solutions are able to shut down while ensuring that the services are not interrupted,” says Perry Yang.

“We are also innovating in the architecture of our hardware. These are the kind of innovation we have brought to the market to reduce overall power consumption,” he added.

Huawei hopes that with the launch of truly innovative microwave transmission solutions, it is giving confidence to the industry that microwave transmission technology will help them evolve seamlessly from 4G to 5G to 5.5G and even 6G.

EQT acquires SKT’s former cybersecurity unit for $1.5bn


News

The deal will see private equity firm EQT Partners take a 67% stake in SK Shieldus

The deal will see EQT acquire the entirety of Macquarie Group’s 37% in the business, with the rest of the equity being purchased from SK Square directly.

After the sale, SK Square will retain a 32% stake in the business.

SK Shieldus currently provides security infrastructure across 680,000 commercial customer sites and more than 100 central monitoring and dispatch centres across South Korea. The company also provides options for both physical and cyber protection at strategic customer locations.

The company’s key partners include South Korea’s police and security services.

“The company is a clear leader in both the Korean physical and cyber security markets and EQT Value-Add Infrastructure is excited about partnering with SK Square to support SK Shieldus as it continues to roll out new digitized security solutions and invest in the decarbonisation of its vehicle fleet,” said Sang Jun Suh, Managing Director and Head of South Korea for EQT’s Infrastructure Advisory Team.

As always, the transaction is subject to the typical regulatory approvals, with the deal expected to close in Q3 this year.

Originally named ADT Caps, SK Shieldus spun off and given its new name back in 2021, with the company saying it would leverage artificial intelligence, cloud computing and quantum-safe security capabilities, the company will double down on new growth engines. Its four major focuses were given as cyber security, physical security, convergence security and safety and care.

Following the spinoff, SK Group quickly planned an initial public offering worth around $2.8 billion. However, in September last year, SK Group said they had pulled the plug on a plan citing unfavourable global economic conditions.

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Also in the news:
Viasat–Inmarsat merger gets provisional greenlight from CMA
Verizon shuffles executive team in search of growth
Ericsson to pay DoJ $206.7m over bribery scandal

Egyptian govt looks to sell 10% stake in Telecom Egypt


News

The shares will reportedly be made available to both foreign and domestic investors

This week, sources speaking to Reuters report that the government is looking to offload a 10% of its 80% stake national network operator Telecom Egypt.

At its currently share price, this stake would be worth around $150 million.

According to the report, the government will be open to both domestic and foreign investors.

The news of a stake sale should come as no real surprise. The Egyptian government is going through something of a financial crisis, having become an indirect victim of the Russian invasion of Ukraine when investors quickly withdrawing around $20 billion in foreign capital at the start of the conflict. The resulting dollar scarcity left the government on shaky financial footing, resulting in an agreement with the International Monetary Fund for a loan of $3 billion late last year.

In part due to these financial troubles, the Egyptian government has placed a renewed focus on monetising state-held assets, aiming to raise $10 billion annually for the next four years through various sales.

Back in October, it appeared likely that one such sale would be to the Qatar Investment Authority (QIA), having initiated talks to purchase 20% of Telecom Egypt’s stake in Vodafone Egypt. As the year drew to a close, these discussions had evolved to encompass a bigger stake purchase, rising first to 25% and finally to the full 45% stake held by Telecom Egypt.

By last month, however, these discussions had reached something of an impasse, with the Egyptian government seeking to sell at the share’s improved price, while the QIA was insistent on moving forward with the company’s earlier valuation.

These discussions are still ongoing.

In related news, Vodafone Group itself transferred ownership of its 55% stake in Vodafone Egypt to Vodacom Group at the end of 2022.

Want to keep up with all of the latest international telecoms news? Click here to receive Total Telcom’s daily newsletter direct to your inbox!

Also in the news:
Viasat–Inmarsat merger gets provisional greenlight from CMA
Verizon shuffles executive team in search of growth
Ericsson to pay DoJ $206.7m over bribery scandal

Viasat–Inmarsat merger gets provisional greenlight from CMA


Press Release

The decision comes after a Phase 2 review revealed Viasat and Inmarsat will likely face significant competition from both emerging and established players as the sector expands

Satellite communications firms Viasat and Inmarsat – which agreed to merge in November 2021 – supply businesses globally with satellite connectivity that enables services such as internet, email, and video calling, including for use in aircraft.

The Competition and Markets Authority (CMA) referred the deal to an in-depth Phase 2 inquiry after identifying competition concerns during its initial, Phase 1, investigation.

Over the past 4 months, an independent CMA panel has gathered and scrutinised a wide range of evidence in order to better understand the sector, as well as the potential impact of the deal. This included internal documents from Viasat and Inmarsat, as well as the companies’ competitors (including their plans for future expansion); evidence from airlines; the CMA’s own analysis of sector conditions – and how these could change.

In a Phase 2 review, the panel considers whether it is more likely than not that a deal will lessen competition – a higher threshold than Phase 1. Accordingly, some mergers that are referred to Phase 2 will ultimately be cleared.

The CMA’s investigation into the Viasat/Inmarsat deal has provisionally found that, while the companies compete closely in the aviation sector – specifically in the supply of satellite connections for onboard wifi – the deal does not substantially reduce competition for services provided on flights used by UK customers.

The CMA’s investigation has found that the satellite sector is expanding rapidly – a trend the evidence suggests is likely to continue. This is due to increased demand for satellite connectivity, driven in large part by the ever-growing use of the internet by businesses and consumers both at home and whilst travelling.

The satellite industry has seen a number of new players entering – or planning to enter – the sector, including Starlink (operated by SpaceX), which is rapidly increasing its presence in the provision of satellite connections to aircraft. During our investigation, the firm has launched a significant number of additional satellites and won its first contract with a European airline, airBaltic.

Established competitors, such as Panasonic and Intelsat, are also investing and entering into new partnerships. For example, both firms have signed agreements with recent entrant OneWeb to use its satellite fleet to enhance their offerings to airlines.

Richard Feasey, chair of the independent inquiry group carrying out the Phase 2 investigation, said:

“This is an evolving and rapidly expanding sector, in which there have been significant developments even during the course of our 4-month investigation. We see this continuing as demand for satellite connectivity increases.

While Viasat and Inmarsat compete closely, the evidence suggests that the merged company will face significant competition in the coming years – from both emerging players like Starlink and from established firms like Intelsat and Panasonic.

This competition has led us to provisionally conclude that airlines and their UK customers will not be adversely affected by the deal.

Today’s findings are provisional, and the CMA will now consult on its findings and listen to any further views before reaching a final decision.”

The CMA welcomes responses from interested parties to its provisional findings by 21 March 2023. These will be considered ahead of the CMA issuing its final report, which is due by 30 March 2023.

Keep up with all the latest telecoms news with Total Telecom’s daily newsletter

Also in the news:
AT&T signs up to use Frontier’s fibre to connect mobile towers
UScellular urges customers to put down their phones in latest initiative
VMO2 and Vodafone give rural Scotland a 4G boost

Verizon shuffles executive team in search of growth


News

Changes include CFO Matt Ellis will stepping down for his role, as well as new CEO appointments for Verizon Consumer Group (VCG) and Verizon Business Group (VBG)

Verizon’s latest financial results, reported in January, were something of a disappointment, with the company suggesting that strong competition coupled with a tough global economy had forced it to lower its forecasted profit for the financial year.

Perhaps this is why today we are seeing a wave of executive changes across the company, with the company aiming to “further strengthen [its] competitive capabilities”, according to Verizon chairman and CEO Hans Vestberg.

Perhaps the largest of these changes is that EVP and CFO Matt Ellis stepping down from his role after seven years to pursue other interests. He will be replaced by SVP and controller Tony Skiadas, who, in turn, will be replaced by Mary-Lee Stillwell, currently VP of accounting and external reporting.

“I appreciate the contributions Matt has made to Verizon in his 10 years with the company, shaping our organization with his strong leadership and financial aptitude. He’s been an influential member of my executive leadership team and a trusted partner. I wish him all the best for the future as he now moves on to new opportunities,” said Vestberg.

Other changes include the appointment of Sowmyanarayan Sampath, currently head of VBG, as EVP and CEO of VCG.

The vacant CEO role at VBG will be taken by Kyle Malady, Verizon’s current head of global networks and technology.

As the final step in the reshuffle, Joe Russo, SVP and chief network officer, will succeed Malady as head of global networks and technology.

“One of our strengths at Verizon is the depth of our leadership and the breadth of skills they bring to the table. Sampath, Kyle and Joe are long-time Verizon veterans,” explained Vestberg. “I am confident these leaders will best position Verizon for the new era of customer growth. These transitions will begin immediately and all will report directly to me.”

How is the US telecoms market evolving in 2023? Join the telecoms industry in discussion at this year’s live Connected America conference in Dallas, Texas later this month!

Also in the news:
AT&T signs up to use Frontier’s fibre to connect mobile towers
UScellular urges customers to put down their phones in latest initiative
VMO2 and Vodafone give rural Scotland a 4G boost

Ericsson to pay DoJ $206.7m over bribery scandal


News

The penalty comes as a result of having breached their Deferred Prosecution Agreement (DPA) with the Department of Justice (DoJ) from back in 2019

This week, Swedish mobile network equipment vendor Ericsson has announced that it will pay the US DoJ the sum of $206.7 million, settling a legal battle related to a highly publicised bribery scandal.

Back in 2019, following an investigation, the DoJ and the Securities and Exchange Commission (SEC) accused Ericsson of having bribed officials in China, Djibouti, Indonesia, Kuwait, Saudi Arabia, and Vietnam during the period between 2010 and 2016.

To resolve this conflict, Ericsson signed a DPA with the DoJ, agreeing to pay the US government $1.06 billion to settle the matter.

However, last year, Ericsson announced that an internal investigation had revealed the company may have made bribery payments to the Islamic State terrorist group in Iraq, dating back to 2011.

This revelation, as well as further questions about Ericsson’s activities in Djibouti and China, led the DoJ to accuse the vendor of violating the terms of its DPA.

“When the Department afforded Ericsson the opportunity to enter into a DPA to resolve an investigation into serious FCPA violations, the company agreed to comply with all provisions of that agreement,” said Assistant Attorney General Kenneth Polite. “Instead of honoring that commitment, Ericsson repeatedly failed to fully cooperate and failed to disclose evidence and allegations of misconduct in breach of the agreement.”

As a result, this week Ericsson is once again being forced to pay its way out of trouble, settling this latest clash by agreeing to a settlement with the government worth $206.7 million.

The company had been expecting a fine of some sort from the DoJ for some time, having set aside around $220 million in its budget to cover this expense back in January.

“Taking this step today means that the matter of the breaches is now resolved. This allows us to focus on executing our strategy while driving continued cultural change across the company with integrity at the centre of everything we do,” explained Ericsson CEO Borje Ekholm.

In related news, Ericsson recently revealed that it would cut around 8,500 jobs globally as part of efforts to cut costs and streamline its operations. Around 1,400 of these roles will be in the vendor’s home market of Sweden.

The company is currently seeking to reduce its costs by around $880 million by the end of 2023.

Keep up to date with all the latest telecoms news with Total Telecom’s daily newsletter

Also in the news:
AT&T signs up to use Frontier’s fibre to connect mobile towers
UScellular urges customers to put down their phones in latest initiative
VMO2 and Vodafone give rural Scotland a 4G boost

User Migration and Diverse Monetization Paths Ensure Faster and Improved 5G Monetization


VIEWPOINT

The service providers have already started harvesting the fruits of 5G investments across the world and this has created a ‘certainty effect’, said Peng Song, President of Huawei’s ICT Strategy and Marketing, Huawei, at the ongoing Mobile World Congress (MWC) 2023 recently.

“There are more than 240 5G networks commercially launched, almost twice the number of 4G networks in the first three years. There were one billion 5G subscribers by the end of 2022. To compare, it took 4G more than five years to achieve that number, and more than 800 5G smartphones are available, and the great news is a solid financial impact that the leading 5G operators are getting as we speak,” said Peng Song. Huawei recently convened 5G Business Success Summit at Mobile World Congress 2023 at Barcelona, Spain.

The Road to 5G Monetization

However, the service providers need to adopt innovative strategies to monetize 5G. Huawei’s analysis revealed that the fast migration of 5G users and traffic is the key to successful 5G monetization. Peng Song mentioned that if an operator migrated 30% of traffic to 5G eMBB in three years, it would take less than four years to see Return on Investment (RoI). This time period can be further shortened if the operator deployed Fixed Wireless Access (FWA) and ToB services.

He further elaborated on the energy efficiency aspect of 5G networks. “5G has the higher energy efficiency than 4G. In the initial phase of 5G user migration, the overall power consumption still increases. However, as the 5G traffic ratio exceeds 30%, we have found that the power consumption of high-traffic sites even started to decrease,” said Peng Song.

Several Paths to Ensure Compelling 5G Experience and Faster Monetization

5G networks come with several new-age capabilities to help service providers deliver a superior experience. For instance, operators can provide a guaranteed downlink and uplink speed for VIP users.

Another emerging capability that is helping service providers accelerate monetization is 5G Fixed Wireless Access (FWA) services. Nearly 95 operators had commercially introduced 5G FWA services for more than 10 million home users by the end of 2022.

Elaborating on the FWA opportunities for the service providers, Peng Song said, “We can identify two potential markets for 5G FWA. Copper Sunset in developed markets and the high-speed broadband access in emerging markets. While in Europe, rural areas, a large number of copper users cannot upgrade to 100 mega-BPS. Replacing copper with 5G FWA benefits those consumers getting better experiences and operators, of course, lowering their expense.”

“On the other hand, in emerging markets, the fibre penetration is still quite low. 5G FWA has become the first choice for 100 mega-BPA’s home browned access in those markets. Because of fast time to market, plug and play, and the less cost in medium and the load density household areas,” he added.

Leveraging 5G Private Networks Opportunity

Another key 5G monetization opportunity for telcos is 5G private networks. “The key is to open the door to a comprehensive enterprise DICT business, and therefore, besides 5G toB connection, operators can leverage cloud, edge computing and value-added service as a business to provide real holistic business partnerships to the enterprise,” said Peng Song. He mentioned that China Mobile believes 5G private network business can facilitate three to ten times revenue in enterprise DICT business.

“We are pleased to see that in just one year, outside of China the number of 5G private networks deployed by carriers has doubled, and the top industry companies have started to embrace 5G private networks, and this market will continue to grow very rapidly,” said Peng Song.

5G is unlike any previous technology and is not just about economic value to the operators but also brings massive social benefits. It not only helps the telcos in reducing their carbon footprint but can also bring down the digital divide.

He urged the industry to use Huawei’s G.U.I.D.E. business blueprint to maximize the potential of 5G and to move from `5Good to 5Great’. “5G networks bring experiences to mobile users and fiber-like experiences to households. That’s `G’. Second, this powerful network ability of 5G can support uranium experiences-based monetization in not only downlink but also uplink. That’s `D.’ Third, of course faster user and traffic migration is the foundation of 5G business success, which shortened the ROI and achieve greener network. That’s `E.’ In addition, 5G private network together of other technologies can facilitate three to ten times revenue enterprise DICT business segment which opened a new blue ocean market, and that’s `I.’ Lastly, simplified 5G networks management together with value baed intelligent operation is another successful dimension, and that’s `U’,” said Peng Song while explaining the G.U.I.D.E. principle. From 2024 to 2030, 5G will continues to accelerate the service providers’ 5G monetization with G.U.I.D.E strategy.

One year on: Newly merged Indosat Ooredoo Hutchison celebrates a successful merger


VIEWPOINT

At this year’s Mobile World Congress, Indosat Ooredoo Hutchison (Indosat) CEO Vikram Sinha told journalists the merger was a case of being ‘at the right place at the right time’.

Vikram Sinha, President Director & CEO of Indosat Ooredoo Hutchison

When Indosat Ooredoo and Hutchison 3 Indonesia first announced their $6 billion merger back in September 2021, the news was met some scepticism by analysts, who noted the challenges the two companies would face when it came to integrating their networks creating a unified company culture.

Now, however, one year on from the merger’s competition, and these doubts have been silenced, with Indosat going from strength to strength.

In the last year, Indosat has seen its subscriber base increase by six million people, generating an increase in its organic net profit of 76.2% year-on-year.

Speaking to journalists at this year’s MWC, the company CEO Vikram Sinha explained that the merger had given the company the scale it needed to reach millions of additional customers, particularly in rural and hard-to-reach areas that were previously not economically viable.

In fact, over the next four years, Indosat is reportedly aiming to connect 21 million customers that have never been connected to the internet before, focussing on largely underserved areas like Papua.

But beyond reaching new customers, Sinha notes that a key growth component for the company will be its engagement with the millions of micro- and small enterprises that make up the backbone of the Indonesian economy.

When asked how  Indosat planned to engage with these businesses, Sinha made clear that the challenge lay not only in providing coverage to these businesses, but in encouraging them to join the digital economy.

“Connecting is the first step, but we must help them to enter and grow in the digital marketplace,” he said, noting access to money lending and digital banking services. “Once they can make $10, they will be more than happy to give us $1 for connectivity services.”

Naturally, a large part of connecting these new customers and businesses will centre around the rollout of existing technologies, like 4G and fixed wireless access (FWA), but the eventual rollout of 5G is also set to play a key role in  Indosat’s future growth.

Currently, the company has around 400 commercial 5G sites live in six cities across the country, with Sinha noting that the company was fully prepared for C-band spectrum to become available in the upcoming auction before it expands in earnest.

The date for such an auction has yet to be announced by the Indonesian regulator.

Sinha said that the company would benefit from studying the 5G developments currently taking place in neighbouring countries like India and the Philippines, allowing them to be better prepared when the time comes.

He also made clear, however, that  Indosat was not waiting for the advent of 5G when it comes to ushering in the era of Industry 4.0. Sinha explained that the operator was already in discussions with various vertical industries, including mines and ports, to better understand their technology needs.

“We need to get the ecosystem involved right now,” he said. “The key message is: there is a lot of opportunity here.”

For Sinha, the merger has been a resounding success, presenting a clear path to future growth for years to come. The main challenge moving forward – as is always the case for Indonesia’s telecoms sector – is the nation’s geography. With a population spread across around 18,000 islands spanning an area the size of Europe, achieving widespread coverage is difficult, even more so when trying to do so in a cost-effective and profitable manner.

This is perhaps why Sinha closed his press conference with the phrase ‘Gotong Royong’, an idea central to Indonesian culture that focusses on communal work for communal success.

“We need successful partnerships to bring the major benefits to customers and to enterprises,” said Sinha. “We have to build consumer trust and bring them simple and transparent products. For this, we need partners that share our vision.”

To learn more about Indosat Ooredoo Hutchison, please click here.

+IT, Grow Together, Powering an innovative and evolutional future for CSPs


VIEWPOINT

For telecoms to create new revenue streams, enhance customer experiences, and lead their digital transformation, Huawei launches future-oriented IT infrastructure architecture. It is an evolution journey from CT to ICT

There has been a massive change in the way businesses and customers interact over the last few years. Due to the increased use of digital services, carriers’ networks have experienced extremely high traffic levels. According to IDC, investments in IT infrastructure would expand at a 14.5% Compound Annual Growth Rate (CAGR) between 2021 and 2026. Between 2021 and 2025, according to IDC, carriers’ digital transformation will accelerate and their spending on it will rise at a CAGR of 17%.

Predictions indicate that IT infrastructure will rank as the second-largest area of investment for international telecom operators. However, for telcos to fully benefit from their digital transformation projects, they must have a future-oriented IT infrastructure that is cloud-native, 5G and IoT ready, secure, and equipped with AI and automation capabilities.

The modern consumer demands a top-notch network with unique services. It’s also an opportunity for telcos to expand on the transformation of their primary line of business, connectivity. As a result, it has become crucial for them to have strong capabilities that can support the delivery of innovative services, expansion into new industries, reduction of costs, and augmentation of revenues.

Presenting the future-oriented IT infrastructure architecture

There is an old saying in Chinese that “to get rich, build roads first”. IT infrastructure paves the way for digital transformation. Developing a future-oriented IT infrastructure design is the only way to build new revenue streams beyond connectivity and provide a superior user experience, even though telecom operators have been pursuing digitization and cost transformation for years.

At MWC 2023, Huawei focuses on the theme of “+IT, Grow Together” and unveils its future-oriented IT infrastructure design for carriers for the first time, recognizing the necessity and filling up the critical gaps. The solution enables carriers to transition from CT to ICT by acting as the IT basis for that change. The strategy is based on the premise that IT infrastructure is at the foundation of telco digital transformation. Huawei has developed intelligent, reliable, efficient and collaborative IT infrastructure to accelerate the digital transformation of the carriers, so both Huawei and its customers can grow together.

So, what is the future-oriented IT infrastructure architecture need of carriers?

Data, Networks, and Applications (DNA) are the three main telecom assets that carriers have. A future-oriented, unified IT infrastructure design based on the carriers’ core asset DNA must be created to optimize its value in order to support carriers’ digital transformation. It should help them achieve orchestration, cloud-network synergy, and cloud-edge synergy.

Data (D): In the modern world, data is regarded as the new growth point for all businesses. Data is being produced at an exponential rate since there is so much happening online at a pace never previously witnessed. Effective data management is essential for telcos because it allows them to channel their resources by creating smart predictions and analyses, meet network latency, boost customer retention, and ensure great user experiences. Data management needs to be efficient, adaptable, and secure. Sensitive data must be stored locally, not in the cloud or network. Storage resource management and provisioning must be carried out efficiently and swiftly. This can be achieved through solutions such as Huawei OneStorage unified storage resource pool, which can improve resource utilization efficiency and accelerate resource provisioning.

Network (N): In order to facilitate accelerated investment monetization, differentiated network experiences, flexible resource scheduling, and rapid service supply, carriers need a new transformative IT infrastructure. The need is for a network that supports quick intelligence and multi-cloud, strengthens agility, and speeds up innovation while also making their services more dependable. Huawei has business in both cloud services and networks. Huawei Cloud and Huawei transport network are pre-integrated. NCE supports unified scheduling of cloud and network resources and allows for one-stop provisioning of cloud network premium package (with unified cloud-network end-to-end SLA assurance), helping carriers monetize their network assets.

Application (A): There are distinct considerations when moving common services to the cloud than when moving critical telecom applications. Most core telecom applications are steady-state, locally deployable, low-latency, and highly reliable, with carriers having complete control over such programmes. Agile apps tend to be new services and do not have high-reliability requirements. However, they require fast rollout, quick iteration, and elastic scaling. Therefore, deployment on the public cloud is the best choice. Huawei’s distributed cloud supports flexible deployment of telecom services on and off the cloud, meeting carriers’ deployment requirements for different applications.

The future-oriented IT architecture design must be implemented using the synergies between CT and IT, on-premises and online, and software and hardware. IT infrastructure investments employ networking to hasten value recovery.

The Huawei distributed cloud is considered the best option for carriers regarding internal business transformation and ToB business expansion. The key services are put in place on-premises for increased security and dependability, while non-critical services are implemented on public clouds. The most senior cloud services are available on-premises with Huawei Cloud Stack, which is also the only cloud that reuses installed base storage. The most significant data infrastructure foundation for carriers is OneStorage which offers multi-clouds integration, enhanced security, reliability, and sustainability.

Huawei, the only ICT company in the world with business in cloud, storage, and diversified computing power, has taken a giant stride by building system-level competitiveness on the customer interface with seemingly standalone products.

 Click here to learn more about the future-oriented IT Infrastructure architecture for carriers