News

The newest German mobile operator says its 5G network deployment has been negatively affected by Vodafone and Vantage Towers expansion limiting their access to 5G sites

Back in 2021, 1&1 Mobilfunk, the new mobile arm of 1&1 AG, announced it had struck a deal with Vodafone’s recently spun-off tower unit, Vantage Towers. The agreement covered the shared use of 3,800 existing mobile, as well as additional sites that were due to be built in 2022.

However, by the end of 2022, 1&1 claimed that Vantage Towers’ expansion was moving far slower than expected, with 1&1 reporting just five 5G antenna sites in operation.

As such, at the end of 2022, Vantage Towers announced a new rollout plan, taking into account the most recent delays.

However, in a meeting yesterday between Vodafone, Vantage, and 1&1, the infrastructure company reportedly revealed that it no longer expected to hit these revised targets an warned of further delays.

“In particular, the expansion targets planned in the first quarters of 2023 are to be significantly missed. An end to the preference for Vodafone’s expansion activities at the expense of 1&1 network construction at Vantage Towers still does not seem foreseeable,” explained 1&1 in a statement.

1&1 says that this delay could impact their planned launch of commercial mobile services in Q3 this year, noting that while a delayed launch would not result in “significant financial repercussions” the company was “eager to avoid any unnecessary delays.”

As a result, 1&1 says it will file a complaint to the Federal Cartel Office (Bundeskartellamt) regarding the ‘ongoing obstacles’ it faces in the rollout of 5G, due to the actions of Vodafone and Vantage towers.

The plot thickens yet further when we consider that Vodafone is currently lobbying the Federal Network Agency to simply allocate highly valuable low-band spectrum to Vodafone, Deutsche Telekom, and Telefónica, forgoing the traditional spectrum auction.

Vodafone claims that this will allow for a more efficient 5G rollout across the country, ensuring German customers receive improved coverage more quickly.

Furthermore, as part of the argument, Vodafone has questioned whether 1&1 has any need for low-band spectrum, given the undeveloped nature of its mobile network.

1&1, on the other hand, says that this delay is caused in no small part by the ‘probable obstructions’ caused by Vodafone and Vantage Towers.

Want to keep up with all of the latest German telecoms news? Join us at this year’s Connected Germany conference live in Munich

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

Press Release

Hewlett Packard Enterprise today announced the expansion of its connected edge-to-cloud offering with the acquisition of Athonet, a private cellular network technology provider that delivers mobile core networks to enterprises and communication service providers. Combined with the HPE telco and Aruba networking portfolios, Athonet will put HPE at the forefront of a growing market that is predicted by IDC to increase to more than $1.6 billion¹ by 2026.

Based in Vicenza, Italy, Athonet has more than 15 years of experience delivering 4G and 5G mobile core solutions to customers and partners globally. Athonet is an award-winning technology pioneer with more than 450 successful customer deployments in various industries, including leading mobile operators, hospitals, airports, transportation ports, utilities, government and public safety organizations.

With enterprises facing complex connectivity challenges across large and remote sites, private 5G offers high levels of coverage, reliability and mobility across campus and industrial environments. It also augments the cost-effective, high-capacity connectivity provided by Wi-Fi. The incorporation of Athonet’s technology will allow HPE to deliver private networking capabilities directly to enterprises as part of HPE’s Aruba networking portfolio, while also enabling communications service providers (CSPs) to quickly deploy private 5G networks for their customers.

“Telco customers are looking for simpler ways to deploy private 5G networks to meet growing customer expectations at the connected edge,” said Tom Craig, global vice president and general manager, Communications Technology Group at HPE. “At the same time, enterprise customers are demanding a customized 5G experience with low-latency, segregated resources, extended range and security across campus and industrial environments that complement their existing wireless networks. With the acquisition of Athonet, HPE now has one of the most complete private 5G and Wi-Fi portfolios for CSP and enterprise customers – and we will offer it as a service through HPE GreenLake.”

HPE expands private 5G solutions for both telcos and the enterprise

HPE will integrate Athonet’s technology into its existing CSP and Aruba networking enterprise offerings to create a private networking portfolio that accelerates digital transformation from edge-to-cloud. The networking portfolio will provide the following benefits:

• Enhanced private networks that combine the high capacity of Wi-Fi with the coverage and mobility of 5G
  
• Accelerated private 5G deployments that improve agility and innovation to help telco B2B teams and enterprise customers
  
• New enterprise revenue streams for telcos with differentiated services leveraging 5G and Wi-Fi
  
• Alignment of costs to revenues with consumption-based models for enterprises and telcos through HPE GreenLake, reducing the risk of entering new markets
  
• Management of operational complexity and cost efficiency with 5G orchestration and zero-touch automation to deliver new workloads from edge-to-cloud
  

With 5G investments running into the billions of dollars, CSPs are looking for simple ways to meet customer needs and drive new B2B revenue by deploying both edge compute and private 5G networks. The addition of Athonet’s software to HPE’s telco portfolio enhances one of the broadest communications portfolios in the market, which serves a base of more than 300 customers across 160 countries and connects more than one billion mobile devices worldwide. Building on its existing private 5G solutions, HPE’s enhanced offering for CSPs will support private 4G and 5G networks and include telco-grade orchestration and automation capabilities. These capabilities will help launch new B2B services that meet growing customer expectations for the connected edge. 

“Athonet was founded to provide customers with private 4G and 5G solutions that deliver carrier-grade reliability and performance to suit their increasing and more challenging connectivity needs,” said Gianluca Verin, CEO and co-founder of Athonet. “We are excited to join HPE and combine our highly skilled teams as we expand our joint service provider offerings for the rapidly growing private 5G market and build on HPE’s strategy to be the leading edge-to-cloud solutions provider.”

Private 5G offers enterprises new capabilities that are ultra-secure, easy to deploy and manage, ready for highly specialized applications such as robotics and industrial IoT, data networks and pipelines, and security systems facilitation. The acquisition of Athonet strengthens Aruba’s connected edge portfolio, providing the unique and highly sought-after ability to deliver fully integrated Wi-Fi and private 5G networks. Integration with Aruba Central will enable network managers to administer Wi-Fi and private 5G through a single pane of glass and bring to bear the power of AI-powered insights, workflow automation, and robust security.

HPE GreenLake, HPE’s edge-to-cloud platform, will offer Athonet private 5G offerings, combining all costs for Wi-Fi and private 5G into one single monthly subscription with no capital expenditure. Flexible consumption options, including HPE’s networking as a service, mean private 5G networks can be deployed with reduced risk, little upfront investment and scaled according to demand.

HPE portfolio integration and availability

HPE will integrate Athonet’s solutions with its existing telco software assets and plans to make them available to customers some time following the close of the transaction. HPE will also integrate the solutions with the Aruba networking portfolio in the near future. The transaction is expected to close at the beginning of the third quarter of HPE’s 2023 fiscal year, subject to regulatory approvals and other customary closing conditions.

How will the rise of private 5G networks impact the US telecoms market? Join the experts in discussion at this year’s live Connected America conference 

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

Over the last three years, since the time 5G was first launched, the 5G ecosystem has continued to move from strength to strength, helping service providers grow their revenue and market share while providing innovative use uses to their users. It is for this reason that the 5G deployments have accelerated globally in all geographies, particularly in the Middle, Asia Pacific and Europe regions.

As per the latest data released by GSA in January 2023, 243 commercial 5G networks have been launched globally, while 515 service providers are investing in 5G. Further, more than 1700 5G devices have been announced across the globe. 5G users increased from 819 million in June to 924 million in September 2022 and have likely crossed one billion by December 2022, thus covering 36% of the world’s population, according to Strategy Analytics.

All this means that 5G is growing three times faster than 4G. The 5G’s growth globally is impressive, considering it was launched in 2019 and it continued its growth trajectory even during the pandemic.

Revenue Increase of 5G Global Operators Worldwide

A key reason behind the fast growth of the 5G ecosystem globally is that it is helping service providers improve their revenue and increase their users as well. While the previous technologies were about improved speed and coverage, 5G allows operators to increase their subscriber base by enabling them to provide new use cases for different industry verticals.

China and South Korea were the earlier adopters of 5G and mobile service recovery has made a “strong recovery” in both market since the launch of 5G. “From falling 4-5% per annum in mid-2019, they are now growing 3-4% per annum…Higher-value services are the cornerstone of 5G propositions in these markets and the high level of adoption of 5G is helping to amplify this effect,” says

Globally, 5G service providers in all geographies are witnessing a significant increase in their business. All 22 leading 5G operators in China, South Korea, and other countries achieved significant business growth from mobile services. Further, nearly 125 (72%) of the 173 global 5G operators have seen revenue growth from mobile services, and 5G is the crucial reason for this. According to Strategy Analytics, mobile service revenue is growing by 3-4% annually for service providers and 5G is a key factor behind this improved performance.

Similarly, Thailand’s AIS has recorded ARPU growth of 10-15% and had 5.5 million 5G subscribers in September 2022, which is around 12% of its subscribers. On the other hand, Elisa in Finland reported a revenue increase of €3 per month as a result of 5G upgrades in Q3. 5G now accounts for 33% of smartphones on its network, according to Strategy Analytics.

Business success of 5G operators

One can evaluate the success of the major 5G operators to find out how 5G is helping them grow their revenue. Take the case of China Mobile, one of the largest 5G service providers in the world with its network covering more than one billion people in China. At the end of December 2022, China Mobile had more than 1.27 million 5G base stations. Enthused by the positive response to its 5G services, the operator plans to build more than one million 5G base stations by the end of this year.

On the other hand, Telefonica is a perfect example of how 5G is helping service providers in growing revenue opportunities in both consumer and business segments. Telefonica’s focus on using smart bundling (including FMS) and network parity through its 5G services has led to cumulative revenue growth of about 5% between 2020 and 2022.

Another example is that of Zain KSA, which has seen its growth surge by eight times during the last three years after it launched Fixed Wireless Access (FWA). The service provider recorded a 30% increase in ARPU for wireless home customers compared to 4G to 5G. South Africa’s first 5G FWA operator, Rain, reached the ‘break-even’ point in just three years, highlighting the latent demand for high-speed and low-latency services powered by 5G. This helped it to deliver significantly improved benefits, up by 9.7% to touch 3.6 billion South African Rands, to its investors.

The first-mover advantage is crucial in helping service providers gain market share as is evident in the case of Zain Kuwait, which was the first operator to launch 5G services in the Middle East. 5G traffic now accounts for more than 40% of its total wireless traffic, thus helping it emerge as the number one country in GCC countries in terms of 5G offload ratio.

Several other service providers, like Elisa and DNA in Finland, HKT in Hong Kong, True and AIS in Thailand and Vodafone in Germany, among others, are in the process of expanding 5G coverage to provide new and novel use cases to their subscribers.

 In Closing

The business success of the 5G service providers clearly demonstrates that 5G is helping service providers increase market share and gain a crucial first-mover advantage while delivering superior experiences and use cases to their subscribers. This indicates that the service providers must accelerate the deployment of 5G and grow the coverage across all regions in their respective service areas.

News

The 12-week consultation could form the basis of legislation that would force major tech firms to subsidise telco infrastructure costs

Today, the European Commission has announced its latest steps towards making gigabit connectivity available to all citizens by 2030.

Included within these updates is the proposed introduction of a ‘Gigabit Infrastructure Act’, aimed to reduce the red tape and administrative costs associated with deploying gigabit-capable networks, as well as a draft of a Gigabit Recommendation, seeking to provide guidance to national regulators about when operators should be allowed to access their competitors networks.

But perhaps most important among these updates is the launch of a consultation on the future of the telecoms sector, seeking to “gather views on the changing technological and market landscape and how it may affect the sector for electronic communications”.

At the heart of this investigation is the so-called ‘fair share’ debate, asking whether Big Tech firms like Google and Meta should be forced to help subsidise the expensive roll out of telecoms infrastructure on which their businesses are so reliant.

Proponents of this idea, naturally, include the majority of European telecoms network operators, who point to a report from the European Telecommunications Network Operators’ Association (ETNO) that suggests that the top six tech giants generated over 55% of all telecom networks’ traffic.

As such, it should come as no surprise that ETNO has called the launch of the consultation “a positive and urgent step towards addressing major imbalances in the internet ecosystem to the benefit of European end-users”, while John Giusti, Chief Regulatory Officer at the GSMA, said in a statement that the “burden [of funding network infrastructure] should not fall entirely on the backs of European consumers and businesses”.

In a blog post yesterday, Telefonica’s Chief Public Policy, Competition & Regulatory Officer, Juan Montero Rodil, argued that the EU would not meet its digital and connectivity goals without financial support from Big Tech.

“The solution that we are proposing is rather simple: The EU must ensure LTOs [Large Traffic Originators] have an obligation to sit down, negotiate and reach fair agreements on a fair and proportionate price for the services provided,” he said. “Such legislation will enable network operators to further invest in digital infrastructure to help achieve the EU’s digital targets and will incentivise LTOs to deliver traffic in a more efficient way for the benefit of the ecosystem.”

Others, however, have been far less enthusiastic about this plan, suggesting that it will infringe on European net neutrality principles that ensures all internet traffic is treated indiscriminately. It has also been argued that such a levy will essentially allow operators to be paid twice for providing the single service – once by their subscribers and again by the tech firms.

“Europeans already pay telecom operators for internet access, they should not have to pay telcos a second time through pricier streaming and cloud services,” argued Christian Borggreen, CCIA Europe’s senior vice president.

Now, the Commission is seeking the opinions of the wider telecoms industry in the form of a questionnaire, the outline of which was leaked earlier this month.

The consultation period will remain open until May, after which the Commission will decide on its next steps, including whether to implement new legislation.

Keep up with all the latest international 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

Press Release

T-Mobile and Amazon Web Services, Amazon’s cloud computing division, today are joining forces to bring 5G connectivity paired with AWS compute solutions to T-Mobile’s 5G Advanced Network Solutions portfolio. They will also collaborate on customizable, use case specific offerings as part of the new Integrated Private Wireless on AWS program. These offerings help businesses get the performance and applications they need for their unique use cases – for example, monitoring worker safety on remote industrial campuses, performing predictive maintenance on manufacturing equipment, or ensuring faster aircraft turnaround times at the airport.

“T-Mobile and AWS are coming together to do what industry-leading companies do best – make things easier for customers,” said Callie Field, President, T-Mobile Business Group. “Businesses need a combination of connectivity and compute that fits into their current infrastructure. With our flexible 5G network deployment options and AWS’s cloud compute capabilities, we can quickly provide customers a right-sized solution to make their applications – new and existing – perform like never before.”

“AWS and T-Mobile share a common desire to work backwards from customer feedback to deliver innovation,” said Adolfo Hernandez, Vice President, Telco Industry at AWS. “One of the biggest challenges in galvanizing industries and revenue for 5G services has been the lack of flexible 5G solutions that meet the compute and connectivity needs for customers. Together with T-Mobile’s innovative suite of 5G Advanced Network Solutions and our Integrated Private Wireless Program, we have the power to meet customers where they are.”

After years of industry excitement, 5G private network adoption has underwhelmed, but the potential is undeniably huge. The challenge has been the complexity and cost businesses face in unlocking that potential – requiring them to work across multiple vendors for compute, connectivity, applications, integration and more at a time of increased budget pressures. With some connectivity vendors insisting on a costly one-size-fits all approach to private networking – instead of a flexible set of private, hybrid and public networking options – it’s no wonder adoption has been slow to take off.

By working together, T-Mobile and AWS can help customers more easily discover, customize, and deploy 5G edge compute. Current AWS customers or businesses wanting AWS services can use the Integrated Private Wireless on AWS portal to explore customized solutions, browsing by industry or use case. Then they simply choose T-Mobile as their 5G provider. For U.S. businesses new to any advanced network or compute solution, T-Mobile will be able to work with them to set up a 5G public, hybrid or private network that’s already integrated with AWS’s customizable edge infrastructure and services.

How is the rise of public cloud shifting the dynamics of the US telecoms industry? Join the operators live in discussion at this year’s Connected America conference 

Also in the news:
AT&T signs up to use Frontier’s fibre to connect mobile towers
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VMO2 and Vodafone give rural Scotland a 4G boost

News

The telecommunications equipment vendor said it would cut around 1,400 jobs in its home market of Sweden

This week, Ericsson has announced that it is seeking to reduce its company headcount in Sweden by 1,400 people, having agreed with trade unions to implement a voluntary redundancy scheme.

Exactly which departments of the business will be most affected by these cuts is not yet clear.

Ericsson currently employs around 15,000 people in its home country, with its global workforce totalling around 100,000 staff.

These cuts should not come as too great a surprise. The global economic situation, with high inflation and a myriad of supply chain issues, has left operators wary about scaling up their expensive RAN equipment rollouts, with Ericsson seeing a corresponding dip in revenue.

As such, at the end of last year, Ericsson announced that it would look to implement major cost-saving measures across its business, with the aim of saving 9 billion kronor (roughly $870 million) by the end of 2023. Naturally, this process was to include job cuts, though the specific details were not announced at the time.

Now, Ericsson has shared some further details of the process, which also includes cuts to consultants and other streamlining measures.

“As previously announced, Ericsson has accelerated cost improvements at a run-rate of SEK 9 crowns globally by the end of 2023, of which 70 percent in cost of goods sold and 30 percent in SG&A. The cost savings cover various areas such as reduction of consultants, streamlining of processes, reduced facilities, etc. As previously announced, it will also include headcount reduction,” explained the company in a statement.

According to Reuters, additional cuts in other markets are expected to be announced in the near future.

It is worth noting here that Ericsson is not the only technology company to be making major job cuts in recent months. Meta, Google, and Microsoft have been among the litany of major tech firms to announce significant layoffs since the start of 2023, with the economic downturn biting into revenues worldwide.

Keep up with all the latest international 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

News

Sources suggest that Virgin Media O2 (VMO2) is lining up a potential bid for the alternative fibre operator

According to a report from Sky News, VMO2 is among a number of players interested in purchasing UK altnet Trooli, with analysts suggesting the deal could carry a price tag of over £100 million.

Rumours about a potential sale have been swirling since at least two weeks ago, when it was reported that the company had appointed business sale and restructuring specialist David Duggins to their Board.

Founded back in 2003, Trooli has grown to become a significant player in the UK’s fibre-to-the-premise (FTTP) ecosystem.

In August last year, the company announced they had achieved coverage of roughly 275,000 UK premises with FTTP, primarily focussed on rural and semi-rural locations in Berkshire, Dorset, and Kent.

Trooli said at the time that they aimed to reach 400,000 by the end of the 2022, with their ultimate goal being to pass one million premises by the end of 2024.

Around this time last year, it seemed that Trooli’s upward trajectory was set to continue, with reports suggesting that the company was planning to raise £200 million via an equity sale to further accelerate its rollout.

More recently, however, it seems that Trooli’s ambitions may have been reined in by the pressures of the global economy, with rising inflation, soaring energy costs, and a stuttering supply chain all contributing to a slower and more costly rollout programme.

Against this backdrop, it should come as little surprise that investor appetite for backing fibre infrastructure companies like Trooli has waned in recent months.

As a result, a sale of Trooli could be the most interesting option for the company’s shareholders, with the move offering VMO2 a cost-effective way to expand its nationwide footprint.

How is the altnet landscape changing in 2023? Join the fibre ecosystem in discussion at this year’s Connected North even live in Manchester

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AT&T signs up to use Frontier’s fibre to connect mobile towers
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VMO2 and Vodafone give rural Scotland a 4G boost

Press Release

Frontier’s fiber infrastructure will allow AT&T to add fiber connectivity to its wireless infrastructure in areas where AT&T doesn’t currently own fiber

Frontier and AT&T today announced a deal that will enable AT&T to deploy wireless infrastructure in Frontier central offices and connect to Frontier’s blazing-fast fiber network. This will improve the resiliency, reliability and speed of the wireless service that AT&T offers to its customers. AT&T is the first tenant to rent space in Frontier’s hyper-local offices and will utilize Frontier’s fiber-optic network to connect with its cell towers that are in Frontier’s network.

Frontier’s footprint is complementary to AT&T’s existing network, which will help accelerate the company’s 5G deployment. AT&T will tap into Frontier’s fiber-to-the-tower (FTTT) infrastructure to connect to AT&T’s wireless cell towers.

This deal is an extension of AT&T and Frontier’s 2021 agreement that brought the two complementary fiber networks together to power business customers nationwide.

”Fiber is central to our wireless strategy and to our overall connectivity approach,” said Cheryl Choy, Senior Vice President, Network Planning & Engineering, AT&T. “This expanded collaboration with Frontier is a win for both companies, as they can fully utilize their fiber infrastructure, and we can continue to ensure our wireless services are powered by the unparalleled capacity of fiber optic networks.”

“We’re excited to collaborate with AT&T in strengthening their wireless service with our fiber infrastructure,” said Vishal Dixit, Frontier’s Chief Strategy Officer & EVP Wholesale. “As one of the largest fiber builders in the country, our fiber infrastructure offers an attractive opportunity for tech companies to use this future-proof foundation for their wireless services. This is another example of how innovation is helping to transform Frontier.”

Want to keep up to date with all of the latest telecoms news from across the US? Join the experts in discussion on the industry’s hottest topics at this year’s live Connected America conference

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Press Release

UScellular, the fourth-largest full service wireless carrier in the country, this week announced “Let’s Find US,” its goal is to inspire people, who on average spend more than five hours a day staring at their phone screen, to reset their relationship with technology. “Let’s Find US” is focused on being a leading voice in addressing the problem of over-connection.

It all kicked off last night with “Missing the Big Game,” a first-of-its-kind AI application that shared real-time data of how many fans in the stadium were looking at their phones instead of the field. This social experiment revealed that, even at the biggest, most exciting sporting events of the year, we are all still over-connected:

• Over 16,000 fans missed touchdowns throughout the game
• During halftime, 6,182 fans were watching their phones instead of the show
• In the final stretch, 4,347 fans were looking at their phones instead of the winning field goal

“Let’s Find US”: Phones Down For 5

UScellular’s “Let’s Find US,” includes a deeply personal experiment called Phones Down For 5. It challenges people to voluntarily stop using their phone to reveal how addicted they are to it. The challenge is built on a simple action: taking a phone break for 5 days, 5 hours, or even just 5 minutes, to reset your relationship with technology.

The company is inviting everyone to participate in Phones Down For 5 by going to uscellular.com/findus to set a personal goal and share their experience using #PhonesDownFor5. The website will also offer tips to successfully make the most of the Phones Down For 5 challenge, including putting your phone where you can’t see it, turning off notifications, getting creative, and spending time outside.

“Through “Let’s Find US,” we are addressing the serious issue of over-connection with technology and lack of connection with one another,” said Eric Jagher, senior vice president and chief marketing officer for UScellular. “At UScellular, our goal is to help people connect to what matters most. We want to inspire connection by inviting everyone to have a reset moment with technology, the first step in having a healthier relationship moving forward.”

UScellular’s “Let’s Find US” is also being brought to life through a fully integrated advertising campaign  featuring a brand TV spot entitled “This Isn’t US,” captivating out of home advertising, social media, influencer activations, and additional programming launching throughout the year to inspire people to disconnect from their devices and reconnect with each other.

Are operators doing enough to ensure their customers maintain a healthy relationship with the technology their connectivity enables? Join the experts in discussion at this year’s live Connected America conference

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China Mobile and China Telecom withdraw from Sea-Me-We 6 project
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KDDI selects Samsung for its 5G Standalone core