News 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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A study undertaken by Bionic, a UK-based broadband comparison company, has revealed that Manchester is the UK’s most digitally inclusive city 

After discovering that 1 in 5 UK adults lack the most basic digital skills needed for everyday life, and a shocking 1 in 2 households in the UK have no internet access at all, Bionic dug deeper into how UK cities compared when it came to digital inclusion.  

In the study, the number of digital inclusion services in each city were examined, taking into account their population and size. Manchester topped the list, having 193 digital inclusion services for a population of 586,100. This was followed by Coventry, with 61 services for 345,300 people, and Bangor took third place with 5 services for 31,765 people.  

Although they have a significant number of digital inclusion services, London failed to make it to the top 20 as it had less services per person.  

On the on the other end of the scale, the town of Armagh in Northern Ireland topped the list for the worst digital inclusion support, no services for its 63,874 residents. This was followed by Ely and St Davids, both of which also had no services, despite having a great population.  

“Our study highlights the pivotal role of digital inclusion support in building a more connected society,” said Les Roberts, connectivity expert at Bionic. 

“The fact that Manchester, Coventry, and Bangor have all emerged as the top three cities for digital inclusion in the UK is undoubtedly thanks to the hard work of local charities and organisations in their areas, showcasing their commitment to bridging the digital divide,” he continued. 

Roberts emphasised that whilst it is encouraging to see progress in areas outside of London, the study highlights the need for digital inclusivity to be extended to every corner of the UK. 

Total Telecom runs Connected North, which brings together over 200 expert speakers and 2500 to the North’s dedicated digital economy event in Manchester. Join us in April– book your tickets here! 

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News 

The investment is part of the company’s long-term goal to strengthen Europe’s value chain 

Nokia has announced that it will invest €360 million in the development of hardware, software, and chip design at its German sites in Ulm and Nuremberg. 

The investment is part of a four-year European IPCEI (Important Projects of Common European Interest) project, which is also supported by the German Federal Ministry of Economics and Climate Protection (BMWK) and the German states of Baden-Württemberg and Bavaria. 

Nokia says the investment will help strengthen the integrated development of software, hardware, and chips, all of which will be used in radio and optical products in future mobile communications systems based on 5G Advanced and 6G standards. 

It is hoped that the project will strengthen both Germany and Europe’s global positions in the fields of microelectronics, particularly in terms of emerging technologies like 6G and AI. 

“This important funding will support our efforts to advance the telecommunications industry in Germany and in Europe, helping to drive innovation and strengthen competitiveness,” said Nokia’s President of Mobile Networks, Tommi Uitto in a press release. 

“In particular, it will help our research into microelectronics that will power future technologies such as 6G, artificial intelligence and the metaverse as well as develop networks that are more energy-efficient and powerful. Germany is an important market for Nokia, and we look forward to working with the government to produce cutting-edge technology that is ‘Made in Germany’,” he continued. 

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News 

The company has assured customers that the price increases will only amount to “the price of a takeaway coffee per month” 

Following a recent Ofcom crackdown on broadband advertising and mid-contract price hikes, BT have confirmed that they will be adopting a simpler approach to their pricing models, starting from this summer. 

“Starting in early summer, we will introduce a pricing model consistent with Ofcom’s approach, moving away from % figures and CPI, and offering instead, a clear and simple view of any changes in “pounds and pence,” read the press release.  

For broadband customers the increase is expected to be around £3 per month, and mobile customers around £1.50, although this will only occur after the company’s next price hike. 

The pricing model currently used by BT adjusts the customer prices on 31st March every year by the rate of inflation (CPI) plus 3.9%. Advertising prices that are linked to inflation rates can often be confusing for consumers because an exact increase amount is not advertised; instead, only a percentage increase and esoteric inflation metric is shown. Ofcom found that over 55% of broadband customers and 58% of monthly paying mobile customers did not know what inflation rates like CPI and RPI measure. 

Additionally, consumers have grown angry with the size of mid-contract price rises – BT’s increase last year totalled 14.4%, for example.  

Research conducted by Ofcom found that four in ten (11 million) broadband customers and over half of mobile customers (36 million) were on contracts subject to inflation-linked price rises (as of April 2023). 

“Most people are left confused by the sheer complexity and unpredictability of inflation-linked price rise terms written into their contract, which undermines customers’ ability to shop around,” said Ofcom CEO Dame Melanie Dawes. 

In mid-December, Ofcom proposed a ban on these inflation-linked mid-contract price rises and have been conducting a consultation that is set to end on 13th February, after which the final decision will be published. 

The rest of the UK’s operators will likely follow suit in short order, with Ofcom expected to implement the new measures later this year. 

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News 

Jio, who leads the telecoms market in India, is hoping for an expansion into neighbouring markets 

Jio Platforms, the telecoms arm of Reliance Industries, is one of three companies who have expressed an interesting in purchasing the Sri Lankan government’s 50.23% stake in the state-owned firm, Sri Lanka Telecom PLC (SLT). 

SLT is the largest telco in the country, connecting over 8.5 million subscribers. 

According to a press release published late last week, the other two firms in the running to buy the stake are Portuguese holding company Pettigo Comercio International LDA and Fortune International Investment Holding Ltd. 

The Sri Lankan government invited companies interested in acquiring its shares in SLT to make themselves known back in November. The deadline to register interest passed on 12th January, hence the Finance Ministry were able to publish a list of the interested parties. 

Each registration of interest will be “evaluated as per the Special Guidelines on Divestiture of State-Owned Enterprises approved by the Cabinet of Ministers,” read the press release. The government will choose the winning bidder by the end of next quarter. 

The Sri Lankan government recently announced its intention to privatise various sectors to help overcome the country’s deep financial struggles, having been mandated to do some by the International Monetary Fund in exchange for a $3 billion loan agreed in 2023.  

The country began to see the effects of its worst economic crisis in history in 2022, when the country faced widespread power cuts and fuel shortages, which triggered countrywide protests. A state of emergency was declared across the country in June last year. 

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News

The 5G Task Force is set to meet today to discuss the launch of the network
The Malaysian government have announced the go-ahead for a second national 5G rollout, after that of the first network reached 80% coverage. 

The second network, which was announced in May last year by communications minister and government spokesman Fahmi Fadzil, is being launched to compete with the government’s 5G vehicle Digital Nasional Berhad (DNB), which currently has monopoly on the 5G market. 

The Malaysian government launched DNB back in 2021, eschewing the traditional 5G spectrum auction in favour of a developing a single, government-run 5G network operator from which existing mobile players could purchase services on a wholesale basis. 

The decision was highly unpopular among the Malaysian mobile operators, who initially said they would not purchase services from DNB. However, after years of negotiations,at the end of October last year, DNB announced that Malaysia’s five mobile network operators  – CelcomDigi Berhad (CelcomDigi) through Infranation Sdn Bhd, Maxis Broadband Sdn Bhd (Maxis), U Mobile Sdn Bhd (U Mobile), Telekom Malaysia Bhd (TM,) and YTL Power International Bhd (YTL) – had finally agreed to each take a 14% stake in DNB. As per the agreement, each MNO will contribute $50 million to the company for its funding requirements. 

The government retains a 30% stake in the business. 

The Malaysian government had previously announced that when the country’s 5G coverage reached 80% in populated areas, a second 5G network to rival DNB could be rolled out. The figure now stands at 80.2%, after being under construction since 2021. 

According to an article published in Malaysian news outlet Bernama, the country’s Prime Minister Datuk Seri Anwar Ibrahim welcomed the idea of a new network, saying it would break up the state-run monopoly and to encourage competition within the market.  

The decision on the second network, the article states, will now be forwarded onto the cabinet who will make a decision on the network within a month. 

“The government will not take long to consider and make an announcement of a shift from a single to dual 5G network coverage,” said Fadzil. “After that the dual 5G can be implemented if the terms agreed by the task force are achieved.” 

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

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News 

The grant is the largest award under the Public Wireless Supply Chain Innovation Fund to date 

DISH Wireless, the wireless network service provider recently reunited with parent company EchoStar, has been awarded $50 million in funding from the US Department of Commerce’s National Telecommunications and Information Administration (NTIA) to launch an Open RAN testing centre. 

The centre, called the Open RAN Centre for Integration and Deployment (ORCID) and located at its Cheyenne Campus in Wyoming, will allow vendors from across the globe to test their hardware and software solutions on a complete commercial-grade Open RAN network deployed by DISH.  

The site will be supported by consortium partners Fujitsu, Mavenir, and VMware by Broadcom, and technology partners Analog Devices, ARM, Cisco, Dell Technologies, Intel, JMA Wireless, NVIDIA, Qualcomm, and Samsung.  

(ORCID) “will serve a critical role in strengthening the global Open RAN ecosystem and building the next generation of wireless networks,” said Charlie Ergen, EchoStar’s co-founder and chairman in a press release. 

The NTIA funding comes as part of the $1.5 billion Public Wireless Supply Chain Innovation Fund (itself funded by the much larger CHIPS and Science Act of 2022), which aims at supporting 5G technologies that are more open and interoperable – in short, advancing Open RAN technology.   

DISH’s $50 million constitutes the lion’s share of the latest funding allocation round from the project, which saw $80 million in total available to companies focussed on Open RAN testing. The remaining $30 million in grants were divided between VIAVI Solutions, Virginia Tech, Cirrus360, Northeastern University, and Rice University. The CHIPS and Science Act itself was signed by President Biden, with the aim of boosting American semiconductor research, development, and production, to ensure that the USA becomes a leader in the industry. Currently, the USA produces just 10% of the world’s chips, relying on East Asia for over 75% of production. 

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

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News 

BT says the deal will propel Basrah Gas Company (BGC) towards “global excellence” 

BT has this week signed an agreement with BGC to securely connect company operations in Iraq, helping to accelerate the company’s digital transformation. 

BGC was established in 2013 as a as a 25-year incorporated joint venture between the Iraqi government (who own a 51% share), Shell (44%), and Mitsubishi (5%). The company currently supplies around 70% of Iraq’s liquified petroleum gas and plays a major role in the nation’s gas export industry. 

In addition, is the company is on of the largest gas flare reduction projects in the world. 

As part of the deal with BT, the operator will provide a network to connect BGC’s offices, processing plants, and three gas fields. Additionally, BT will provide stronger and faster connectivity to hyperscalers and enable the delivery of cloud-based applications such as Microsoft 365. 

“Collaborating with BT is an important milestone for BGC. In forging this alliance, we propel BGC towards global excellence,” said Andrew Wiper, Managing Director of BGC in a press release. 

“The bedrock of our operations lies in robust and efficient connectivity, and this contract reinforces our commitment to efficiency and safety, he continued.” 

BT’s Managing Director of Global Industries and Government Eyad Shihabi noted that the “partnership represents a new chapter in this relationship by delivering the high standards of quality and reliability of services directly to BGC in Iraq.” . 

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

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Güralp Systems Ltd, the leading global provider of seismic monitoring instrumentation and solutions, has successfully designed, manufactured and deployed a 21 km ‘SMART’ cable 30 km off the coast of Catania in Sicily, Italy. The SMART cable (Science Monitoring and Reliable Telecommunications), is an innovative system developed by Güralp in partnership with Istituto Nazionale di Geofisica e Vulcanologia (INGV), for the Italian InSEA SMART Wet Demonstrator project which will measure seismic risk off the coast of Sicily.

The InSEA project, funded by the Italian Ministry of Research and managed by the Istituto Nazionale di Geofisica e Vulcanologia (INGV), aims to investigate the use of seismometers and environmental monitoring sensors deployed in and around the repeater housings of traditional telecommunications cables without compromising the scientific or operational value of the data being transmitted by the sensors.

The pioneering SMART cable system comprises a 21 km telecommunications cable with three instrumented repeaters located at 6 km spacings along its length. Each repeater houses a Güralp Certimus seismometer, a Güralp Fortimus accelerometer plus an externally mounted instrumentation pod that contains an absolute pressure gauge and a temperature sensor. Global Marine provided Güralp with specialist assistance with the repurposing of the repeater housings.

The system was designed to be laid using standard commercial ocean cable-laying equipment and the successful deployment onto the seabed was undertaken in this way, during a 36-hour window last month, to a depth of 2000 metres. Initial data collected from the instrumentation following deployment showed that all was working as anticipated. Further analysis of the data collected by the system will be undertaken following a more substantial monitoring period.

Quote from John O’Neill, Systems Director, Güralp Systems

“We have more than thirty years experience in designing and manufacturing for the OBS market. This project offered particularly unique challenges, as we had to work backwards from the expectation that the instrumentation must be housed in existing repeater hardware and deployed using commercial cable laying methods. Fortunately, we have advanced sensors that are particularly suited to the demands of the project and we are delighted to see that our design approach coupled with our robust testing regime has ensured the successful deployment of the system.“

The observation area in which the system is deployed is prone to numerous natural hazards including seismicity caused by the nearby Mount Etna. The in-situ measurements from the deployed seismic and pressure sensors will be crucial for generating reliable tsunami height forecasts for the region and will also aid with improving tsunami warning times.

Giuditta Marinaro, Head of the Multidisciplinary Research Functional Unit on Geosphere-Ocean-Atmosphere interactions of the Rome 2 Section of the INGV.

“The use of innovative underwater telecommunications cables, i.e. equipped with geophysical and environmental instrumentation, represents a solution to extend observations to marine areas never reached, to have real-time access to observations and to support studies on the climate, oceans, on the structure of the Earth and on natural disasters.”

Quote from Neil Watkiss, Commercial Director, Güralp Systems

“SMART cables have the potential to revolutionise Ocean Science and in delivering this successful project, Güralp is established as a frontrunner in having developed working technical solutions for the SMART cable concept.”

News

The Indonesian data centre market was worth $1.67 billion in 2021, and is set to grow by more than 13% by 2027 

Indosat Ooredoo Hutchison (IOH) has announced that it has agreed to sell its data centres and edge sites to data centre company BDx Indonesia for IDR 2.6 billion ($170 million).
BDx Indonesia, a joint venture between IOH, BDx Data Centers (BDx), and Lintasarta, an IT solutions firm, was formed back in May 2022, marking BDx’s first entry into the Indonesian market.   

BDx itself already operates data centres in Hong Kong, Singapore, and mainland China 

The sites being sold by IOH are dotted across the country in cities including Jakarta, Surabaya, Batam, Medan, Makassar, Bandung, and Semarang. The sites are located in ten strategic sites connected to six domestic and five international subsea cables. 

“Collaborating with BDx Indonesia not only enhances our customer service but also reinforces our commitment to connecting and empowering every Indonesian. Crucially, aligning our strategic goals will enable Indosat and BDx Indonesia to elevate the nation’s technological landscape,” said Vikram Sinha, President Director and Chief Executive Officer of IOH in a press release. 

After the transaction, BDx Indonesia will have a total capacity of over 150MW. Additionally, a new 15MW facility is being built near Jakarta with an estimated launch date of Q4 2024. The new site will be a 100MW hyperscale campus at Suryacipta, East Jakarta. 

Carrier-neutral edge sites on all main islands of Indonesia are also in development, all of which will all be built according to eco-friendly design specifications. 

“We are the foremost carrier-neutral data centre provider in the country and, with the expanded portfolio, are set to emerge as Indonesia’s preferred partner for digitalisation,” said Mayank Srivastava, BDx’s CEO in a press release. 

The transaction has been financed by three Indonesian banks, BCA, Bank Permata, and Bank Bukopin.  

Join the data centre conversation at this year’s Submarine Networks EMEA – get your tickets now!

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