Vodafone’s 5G standalone network now connects around half the German population


News

The telco has been hard at work upgrading its network to the new architecture since the start of the year 

This week, Vodafone Germany has announced its network construction update for the first quarter of this year. Within this time frame, Vodafone has made strides in bolstering mobile connectivity infrastructure across the country, completing over 1,200 construction projects.  

According to the company, this effort, which averaged 13 projects daily, underscores the company’s commitment to enhancing its LTE and 5G network capabilities. 

During this period, Vodafone commissioned 155 new base stations and upgraded almost 500 existing stations to 5G standalone (SA), which Vodafone calls 5G+. Nearly 170 measures were implemented to address LTE dead spots, ensuring more consistent coverage across the country. 

Deploying 5G SA constituted almost 40% of the total construction efforts. As a result, approximately half of Germany’s population now has access to Vodafone’s 5G+ network. 

Favourable weather conditions in March 2024 further expedited construction efforts, with over 550 locations seeing project completion. On average, three new mobile phone stations were activated daily during this period, contributing to the integration of 67 new locations into the Vodafone network. 

In related company news, last month Vodafone Germany announced that it will cut 2,000 jobs over the next two years as part wider company restructuring. It is hoped that the move will save the company €400 million. 

The cuts are part of cost-cutting measures announced by new Group CEO Margherita Della Valle in May last year, in which 11,000 jobs are expected to be cut globally over the next three years. 

 “Vodafone wants to make itself even simpler, faster, leaner and therefore more powerful in the next two years,” said Vodafone Germany CEO Philipp Roggein a speech to employees. 

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

Also in the news:
FCC rejects SpaceX’s request for spectrum
Amazon invests $2.75 billion in AI startup Anthropic
T-Mobile gets green light to appeal class action lawsuit

How does the increased adoption of GenAI impact data security for telcos? 


Insight  

At MWC this year, we caught up with Ari Banerjee, Senior Vice President at Netcracker Technology, to discuss the importance of data security as telcos increasingly adopt Generative AI (GenAI) solutions 

Undoubtedly, the biggest topic at this year’s MWC was GenAI and the many ways telcos are looking to incorporate it into their businesses, both to increase efficiency as well as generating new revenues. But in order for telcos to fully embrace AI effectively, a successful digital transformation of the telcos themselves is paramount. 

“What we’re seeing with our customers is that first you need to really digitally transform yourself. You need to have the right data,” says Banerjee.  

“So, data transformation becomes a precursor to any AI ML (machine learning) strategy, because at the end of the day, if you have garbage data – duplicate data and old legacy data – it just doesn’t match up with services. You are not going to be able to use AI in the right way.” 

Even when a digital transformation has successfully been undertaken, the issue of data security still looms. As more and more companies adopt the use of GenAI, data security will become more of a problem. EY’s Global head of telecoms declared the issue the biggest risk in the entire telco sector for 2024, because the rise of GenAI is putting a strain on data governance. For example, much of the data fed into GenAI models is highly sensitive and cannot be shared to the public cloud. 

Netcracker are tackling this complexity through their GenAI Telco Solution, which was launched last September. Functioning alongside the telco GenAI models (such as large language models [LLMs]), GenAI users, and the telco BSS/OSS databases, this solution supplements the GenAI model with real-time instructions to elicit the most relevant responses, and protects sensitive customer data from public models. 

Thus, Netcracker are playing the key role of an integrator, allowing telcos to make use multiple LLMs and SLMs (small language models), each specialised for a specific purpose. 

“Somebody in the middle needs to be able to take the best parts of it and then interface that and use that with the information from the network information databases […] and provide the right contextual information, whether to the internal team who’s dealing with let’s say, BSS/OSS operations, or the external teams, which is your customer,” Banerjee explained. 

“This is one of the most exciting areas for this new technology,” said Banerjee. “Providing the right contextual offer to the customer through an automated channel.”   

You can check out our full interview with Ari Banerjee, Senior Vice President at Netcracker from the link below: [embedded content]

CMA launches Phase 2 investigation of Vodafone–Three merger


News

The UK’s antitrust watchdog said the operators had declined to offer remedies to the Authority’s competition concerns

Today, the Competition and Markets Authority (CMA) has announced that it will launch a Phase 2 investigation into the £15 billion merger between Vodafone UK and Three UK, a move that would shrink the number of mobile players in the market from four to three.

The regulator said last month that it was considering launching this full-blown investigation into the merger, saying that the companies had “made a number of claims about how their deal is good for competition and investment” without providing “sufficient evidence to date to back these claims”.

At the time, the CMA offered the operators five days to suggest remedies to assuage these concerns. Now, a little more than a week later, the regulator has announced the investigation will proceed, noting that both Vodafone and Three declined to propose concessions to ease the CMA’s competition fears.

In a joint statement, Vodafone and Three said that this decision by the CMA was expected and that they remained confident the merger was in the interest of UK customers.

“This was an expected next step in the process and is in line with the timeframe for completion that we set out from the outset,” said the statement. “Vodafone UK and Three UK remain confident that the transaction will drive stronger competition in the mobile sector and give customers and businesses a step-change in network quality, speed, and coverage from day one.”

Results from this new investigation are expected in September.

How would the Vodafone–Three merger impact the UK mobile market? Join the telecoms ecosystem in discussion on market dynamics at Connected North live in Manchester

Also in the news:
FCC rejects SpaceX’s request for spectrum
Amazon invests $2.75 billion in AI startup Anthropic
T-Mobile gets green light to appeal class action lawsuit

stc and Huawei completed the MENA region’s first-ever long-haul 800G live network trial


VIEWPOINT

[Riyadh, Saudi Arabia, March 28, 2024] stc Group, the leading operator in the Kingdom of Saudi Arabia, partnered with Huawei to complete the MENA region’s first-ever long-haul 800G/channel trial in its live optical network. This successful live network trial with connection over 1,000 kilometers, from Riyadh to Makkah, of state-of-the-art processing and transporting capacity proves the 800G solution is ready for scale deployment across Saudi Arabia, driving the Kingdom and the MENA region’s digital transformation.

stc Group and Huawei completed long-haul 800G/channel live trial in dense wavelength-division multiplexing (DWDM) network

As a result of this successful trial, stc Group networks can now transport more data throughput for every wavelength deployed and extend across longer distances without generation, reducing power and transport costs, and supporting efficiency standards across stc Group’s infrastructure.

The high-performance 800G/channel optical module, empowered by a built-in high baud bandwidth modulator and super 16QAM modulation with a Channel-Matched Shaping (CMS) 2.0 algorithm, established connection over 1,000 kilometers in a live Colorless-Directionless-Contentionless (CDC) network, proving the stc systems can monitor and sustain complex link environments in real-time, optimizing network transmission performance.

stc has been committed to offering excellent experience to all customers with state-of-the-art technologies and solutions. The 800G channel trial project is the result of stc’s focus on maximizing fiber capacity and optical network efficiency, making it possible to deliver up to 64Tbps single fiber capacity to meet ever-increasing bandwidth demand from all users, and reduce the per bit power consumption by more than 50% compared with 100G channel. The trial shows that stc is strengthening its partnership with Huawei in the ultra-high-speed optical transmission field.

On the importance of the trial’s milestone, Huawei’s President of Optical Transmission Domain, Victor Zhou, commented: “This long-haul 800G live trial in the stc network is a significant milestone in the ultra-high-speed optical industry. Huawei will continue to innovate and cooperate with stc in optical networks, providing leading and sustainable optical solutions for optimal user experiences.”

Keysight outbids Viavi on Spirent in dramatic move 


News 

US-based Keysight Technologies has out bid rival Viavi Solutions on the purchase of Spirent Communications, offering £1.16 billion for the company this week 

Earlier this month, US technology company Viavi Solutions made a £1 billion takeover bid for UK-based telecoms testing group Spirent Communications.  

At the time, Viavi CEO Oleg Khaykin said that the deal would “deliver enhanced product solutions and applications, accelerate growth in new markets and strengthen innovation through expanded engineering and design capabilities”. 

Now, however, facing a higher offer from Keysight, Spirent has withdrawn its non-binding agreement with Viavi. 

“Following my discussions with the Keysight management team, I am excited about the broader reach and expanded long-term prospects for Spirent arising from the combination with Keysight,” Spirent CEO Eric Updyke said in a statement to Reuters. 

Spirent is a leading provider of automated testing for networks, with a portfolio that includes 5G, cloud, and autonomous vehicle services. 

In a statement on the London Stock Exchange, Spirent directors said that “combining with the Keysight Group will allow the business to better serve customer needs, with increased resources and a broader product offering.”  

“The Spirent Directors also consider that the Acquisition provides an exciting opportunity to better deal with the complexity customers are seeing in today’s world with the Combined Group’s broader capabilities, operational and financial power, and investment in research and development,” the statement continued. 

“Our superior Offer recognizes the value of Spirent’s achievements to-date, and the exciting prospects of the combination of our complementary product portfolios to provide end-to-end solutions for customers across their lifecycle needs,” said Satish Dhanasekaran, President & Chief Executive Officer of Keysight in a press release. 

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

Also in the news:
BT wins £26m contract to connect UK schools
Apple fined €1.8bn by European Commission over Spotify row
Japan to reduce regulatory pressure on incumbent NTT

Amazon invests $2.75 billion in AI startup Anthropic 


News 

Founded in 2021 by former Open AI executives, Anthropic is now one of the most well-funded AI firms in the world 

Amazon has announced an investment of $2.75 billion in San Francisco-based AI startup Anthropic, as it looks to compete with AI rivals such as Google and Microsoft through its AI chatbot Claude. 

The move is Amazon’s largest external investment since it was founded in 1994. 

As part of the deal, Anthropic will use Amazon Web Services (AWS) as its primary cloud provider, as well as using AWS’s Trainium and Inferentia chips to build, train, and deploy AI models. 

Back in September, Amazon announced that it would invest an initial $1.25 billion in Anthropic in exchange for a minority stake in the business, with the possibility that the investment could reach up to $4 billion. With this week’s investment, that  milestone has now been hit. 

“Generative AI is poised to be the most transformational technology of our time, and we believe our strategic collaboration with Anthropic will further improve our customers’ experiences, and look forward to what’s next,” said Dr. Swami Sivasubramanian, vice president of Data and AI at AWS in Amazon’s press release. 

Interest in Anthropic is growing at a meteoric pace, having received around $7.3 billion in funding over the past year alone. 

Part of this backing has come from South Korea’s SK Telecom (SKT), which invested $100 million in the company in an effort to develop a multilingual large language model (LLM) customised for global telcos.  

SKT currently has ambitions of becoming a world leader in AI, with Chief Financial Officer Kim Jin Won saying on an earnings call last year that the company was “stepping up efforts on all fronts to transform itself into an AI company”. 

In related news, this month AWS, Anthropic, and Accenture joined forces to help organisations in highly regulated industries – such as healthcare, banking and insurance – to adopt and scale generative AI solutions so that their organisations can improve innovation and productivity.  

“By combining Anthropic’s focus on model performance and safety, AWS’s approach to security and reliability, and Accenture’s deep domain expertise with technical know-how, we aim to build tailored solutions that enable key use cases,” said Anthropic’s CEO Dario Amodei in a statement. 

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

Also in the news:
VEON exits Kyrgyzstan to focus on key markets
BT pledges to upgrade payphones nationwide
Spanish govt buys 3% stake in Telefonica, eyes 10%

T-Mobile gets green light to appeal class action lawsuit


News

A US judge ruled this week that T-Mobile can appeal a pending class action lawsuit that is seeking damages related to T-Mobile’s merger with Sprint

This week, Illinois U.S. District Judge Thomas Durkin has ruled that T-Mobile can proceed with an appeal of a class action lawsuit that could cost the company billions of dollars in compensation.

The class action lawsuit, which is being brough by seven subscribers of AT&T or Verizon, argues that the merger of Sprint and T-Mobile reduced competition in the wireless market to such an extent that it forced AT&T and Verizon to increase their prices. This, they say, saw tens to hundreds of millions of consumers paying more for their wireless services than they would have otherwise.

The plaintiffs are seeking monetary compensation as well as other remedies, which could even include the reversal of the Sprint–T-Mobile merger entirely.

Back in November, courts declined to dismiss the lawsuit at T-Mobile’s request, saying that AT&T and Verizon’s price increases could “plausibly” be linked to the merger.

T-Mobile immediately signalled their intention to appeal the decision, saying that the case’s “expansive conception of antitrust standing is unprecedented”.

The plaintiffs’ lawyers, on the other hand, argued that a length appeal process would delay potential compensation and could make dissolving the merger more difficult. They subsequently argued that the case should be put before a jury before an appeal was presented.

Now, Judge Durkin has confirmed that T-Mobile will be allowed to proceed with their appeal, with the operator arguing the plaintiffs’ have not sufficiently alleged antitrust standing.

Antitrust lawyers will be watching the proceedings of the case closely. Federal antitrust law allows consumers to bring private challenges against mergers and acquisitions, but cases arguing that a company’s M&A activity had negatively affected a rival’s customers are very rare.

If the case is ultimately allowed to proceed, it could significantly expand the scope of future antitrust proceedings.

Has the Sprint–T-Mobile merger negatively affected the US mobile landscape? Join the discussion live Houston, Texas, at this year’s Broadband Communities Summit

Also in the news:
VEON exits Kyrgyzstan to focus on key markets
BT pledges to upgrade payphones nationwide
Spanish govt buys 3% stake in Telefonica, eyes 10%

Telecommunications (security) Act (TSA): are VPNs the right solution for secure remote access?


Insight

By Rob Pocock, Technology Director, Red Helix

The initial deadline for the Telecommunications (Security) Act (TSA) 2021 is fast approaching. Drafted in response to our growing reliance on communications technology, and to help protect our networks from an expanding threat landscape, the Act is set to have a major impact on the UK’s approach to security and resilience in the telecoms industry.

The first of the deadlines requires all network operators in the tier 1 category (those with an annual turnover in excess of £1 billion) to action ‘the most straightforward and least resource intensive measures’ by March 31st, 2024. While there is no explicit guidance as to what this means, one of the easier measures to action is the implementation of secure remote access – a necessary measure which will help prevent unauthorised access to telecoms networks and systems.

There are a couple of different solutions that operators can put in place to try and achieve this. The traditional approach would be to use a VPN. In fact, as part of the code of practice, included with the guidance on regulation 4 ‘Protection of data and network functions’, there is a recommendation to use exactly that. Yet, while a VPN may address some of the requirements within the legislation, it is now quite outdated technology and could fall short of achieving others.

To avoid further work later down the line, and to benefit from far more robust network access control, operators ought to consider implementing a Zero-Trust Network Access (ZTNA) solution instead. It is widely recognised as the successor to VPN technology, offering increased security by working to the assumption that all requests have hostile intentions, and uses US military-grade AES-256 encryption to keep connections secure.

The shortcomings of a VPN

VPNs have been around for several years, and work by creating an encrypted tunnel between a user’s device and the network. This creates a point-to-point connection that, in theory, cannot be accessed by unauthorised users. They have, however, seen little change since they first came about in 1996, and their effectiveness in the context of modern cyber security threats is being increasingly questioned.

There are two key reasons for this. Firstly, authentication requirements for the VPN itself are often very basic, requiring little more than a username and password. Secondly, they can make it difficult to control or prevent any over-privileged lateral movement once inside the network. Therefore, if a cyber criminal were to bypass the authentication requirements, there is a chance they’ll be able to access systems and data across the entire organisation.

Of course, using a VPN is no doubt better than not having any access controls in place whatsoever, but it is far from the most secure choice. A VPN is also unlikely to help operators meet some other the more stringent security measures required in the TSA. For example, regulation 7 identifies measures needed to reduce supply chain risks, and regulation 8 outlines further details on the measures required for the ‘prevention of unauthorised access or interference’, both of which would be hard to achieve full compliance with using a VPN alone.

Additionally, there is a section included in the TSA code of practice that states providers should establish the principle of ‘assumed compromise’. This means assuming that network oversight functions are subject to high-end attacks that may not have been detected, and to ensure there are measures in place to make it difficult for the attacker. As lateral movement can be hard to prevent with a VPN, this is another area in which they are lacking.

Improved access control through ZTNA

In contrast, ZTNA has been designed with assumed compromise in mind, operating on the principle that the network is always hostile. Trust is never implicit, meaning users are only granted access to the specific applications and resources they need; with granular policies to determine what, where and when information can be accessed.

Not only does this meet with the requirements outlined in regulation 4 for which a VPN was recommended, but it can go a long way to complying with some of the other regulations as well. ZTNA’s comprehensive approach to network security ticks off most of the measures outlined in regulation 8, alongside many of those included in regulation 7 – by providing control over what third-party suppliers have access to, and limiting any potential damage should they be compromised.

ZTNA is also likely to become more of a significant factor in obtaining or maintaining cyber insurance. Owing to the rise in severity and frequency of cyber attacks, insurers have continued to increase the requirements needed to pass the risk assessment process. While the exact standards may vary between insurance providers, strong access control is one that appears to feature often, and the use of ZTNA will go a long way in demonstrating this.

Ultimately, ZTNA represents a more forward-looking approach to access control, aligning with the broader trend in cyber security of moving towards a more adaptive, dynamic, and user-centric security model. With its emphasis on continuous verification and granular access policies, it is a more robust solution that hits a number of the TSA regulations and will provide operators with stronger protection across their networks.

A future-proof solution

As the first deadline for the TSA approaches, network operators are faced with a choice. Either use traditional VPN technology to achieve secure remote access or to implement the more advanced ZTNA.

Despite their long-standing presence within the industry, VPNs fall short in addressing modern cyber security challenges, owing to their basic authentication processes and limitations in controlling internal network movements. ZTNA, on the other hand, offers a robust solution operating under the principle of ‘assumed compromise’, ensuring stringent access controls and aligning with several of the TSA’s requirements.

While continuing to use a VPN may seem like the most straightforward approach, and can help operators to meet the first ‘least resource intensive’ deadline, it is likely to be only a temporary solution. ZTNA is an easy to implement alternative that offers a more comprehensive, adaptable, and future-proof strategy – so why settle for something inferior when the option for better security is already present?

Report: Three quarters of wireless customers considering switching provider 


Insight

The latest global report from Salesforce sheds light on customer’s shifting priorities and why communication service providers (CSPs) must adapt to improve customer retention 

In 2024, it is easier than ever for customers to jump from service provider to service provider in search of the best deal and the best experience. In fact, the latest report from Salesforce suggests that constantly being on the lookout for a better offer is deeply ingrained in the CSP customer mindset, with 76% of wireless customers considering switching, while 78% of broadband customers said they were at least somewhat likely to use tech provider instead of their current provider, if available.  

To make matters worse, the report also notes that 50% of wireless customers and 47% of fixed broadband customers feel that threatening to switch providers is actually an effective way of ensuring that they get the best deals from their existing providers. 

So, why is customer loyalty seemingly so low in the telecoms sector? And how can CSPs and reduce churn? 

The answers, of course, are deeply nuanced. Customer expectations have increased enormously as their lives have grown increasingly digitalised. Not only do customers today demand greater speeds and reliability from their CSP, they also want a more seamless and flxible relationship with their provider.  

Automated interactions are becoming the norm, providing the CSPs with a huge boost in efficiency and potentially cost-reduction, but these automated services are often failing to deliver the excellent quality customers demand. The report suggests that only 22% of B2C customers would describe their provider’s automated services as ‘excellent’, while over half admitted to never having used their providers self-service.  

This is not solely an online issue either. In fact, expectations for excellent service are only increased when it comes to in-store interactions, with the report finding that less than a quarter of B2C customers would describe their experience as pleasing or efficient. 

Ultimately, this report reflects an industry in which customers remain sceptical of their provider’s ability to meet their needs and CSPs must work diligently to change their mindset when it comes to defining excellence in customer service.  

You can access the full Salesforce report, which surveyed 500 telecoms experts and 6,000 customers, here: Trends in the Communications Industry. 

This report is being published at a pertinent time for the UK connectivity market, with industry discussions beginning to move beyond infrastructure rollout and towards full fibre and 5G adoption. Indeed, the country’s fibre market, which at its peak contained more than one hundred altnets, is starting to consolidate, making customer experience and service differentiation more important than ever in ensuring a positive ROI. 

Against this backdrop, achieving excellence in customer service is expected to be at the forefront of next month’s Connected North conference live in Manchester, with specialists from throughout the telecoms industry coming together to discuss key issues and the shifting connectivity landscape.  

Get the full report here Trends in the Communications Industry and join the discussion at Connected North now.  

Also in the news:
BT wins £26m contract to connect UK schools
Apple fined €1.8bn by European Commission over Spotify row
Japan to reduce regulatory pressure on incumbent NTT

VX Fibre and Freedom fibre complete merger 


News 

Consolidation continues in the alnet market in the latest of a string of mergers 

UK fibre altnets VX Fibre and Freedom Fibre have completed their merger which was announced last December, following regulatory approval. 

The newly combined group will operate as name Freedom Fibre under their CEO Neil McArthur and his management team, and will have a network of 300,000 (which is up from the figure of 285,000 given in December). 

“This strategic merger leverages the strengths of both Freedom Fibre and VX UK to create a larger, stronger, and more diverse business backed by two significant investors with ambitions for growth,” said Freedom Fibre’s CEO, Neil McArthur. We are delighted to be joining forces with the VX team and are hugely excited about the future potential of the newly combined business.”  

VX UK mainly operates in and around Stoke-on-Trent, but has fibre assets in Bristol and Colchester. Freedom Fibre, which was launched in 2020, offers wholesale-only services on its network, and had a long-term partnership with leading UK broadband provider TalkTalk.  

Speaking to the financial times in January, Greg Mesch, CEO of the UK’s largest altnet CityFibre, said it is aiming to make as many of five acquisitions over the next two years. “Investment is drying up but I think that’s creating the opportunity to consolidate the network,” Mesch said. According to the article, the company is already in exclusive talks with two other altnets. 

Catch Greg Mesch at this year’s Connected North event, 22-23 April in Manchester. Secure your tickets now! 

Also in the news:
VEON exits Kyrgyzstan to focus on key markets
BT pledges to upgrade payphones nationwide
Spanish govt buys 3% stake in Telefonica, eyes 10%