News

The deal is expected to increase the scale of Nokia’s optical networks business by 75% 

Nokia has announced the acquisition of California-based Infinera, a global supplier of optical transport networking solutions, for $2.3 billion, as the Finnish company looks to expand its optical networking in North America. 

The deal is expected to “strengthen the company’s technology leadership in optical and increase exposure to webscale customers, the fastest growing segment of the market,” said Nokia. It expects to make €200 million of net comparable operating profit synergies by 2027. 

The transaction, valued at $6.65 per share and working out at $2.3 billion, represents a 28% premium over Infinera’s closing share price on June 26, 2024. The deal will be financed with at least 70% cash and up to 30% in Nokia stock.  

“In 2021 we increased our organic investment in Optical Networks with a view to improving our competitiveness,” said Nokia President and CEO Pekka Lundmark in a press release. 

“That decision has paid off and has delivered improved customer recognition, strong sales growth and increased profitability. We believe now is the right time to take a compelling inorganic step to further expand Nokia’s scale in optical networks. The combined businesses have a strong strategic fit given their highly complementary customer, geographic and technology profiles,” he continued. 

After the recently announced sale of XX, Nokia confirmed that its network infrastructure will be reshaped on three pillars: Fixed Networks, IP Networks and Optical Networks. 

Just yesterday, Nokia announced that it will offload its subsea unit Alcatel Submarine Networks (ASN) to the French state for €350 million, solidifying its intention to focus on its core network infrastructure portfolio. Nokia will retain a 20% shareholding along with board representation to ensure a smooth transition, at which point the French state will take the remaining 20%. 

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Also in the news:
Nvdia and Ooredoo launch data centre deal 
Nexperia to Invest 200 Million USD in Hamburg
US launches probe into Chinese telcos over data concerns 

This Industry Viewpoint was authored by Eli Katz, Founder and CEO of XConnect

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News 

The move is a huge investment in the North of England, and will create the UK’s third Microsoft datacentre 

Microsoft has announced that it will build a huge data centre on the outskirts of Leeds, on a site costing £106.6 million. 

The deal was announced by Rotherham based property development group Harworth, who said the deal was the largest in its history.  

The hyperscale data centre site will be comprised of two plots, one of 27 acres valued at £52.9 million, and one of 21 acres valued at £52.2 million. The development company has said the site will bring around £4 billion to the local economy and create many jobs. 

Not many additional details, such as completion dates, were disclosed. 

Microsoft currently has two data centres in operation in the UK; one in London and one in Cardiff. Back in November, the company announced an investment of £2.5 billion in expanding its next-generation AI data centre infrastructure across the UK.  

The plan includes bringing over 20,000 advanced Graphics Processing Units (GPUs) to its sites in London and Cardiff by 2026, which are essential for machine learning and AI model development. The investment aims to meet the growing demand for efficient, scalable, and sustainable AI-specific compute power, positioning the UK as a hub for cutting-edge technology. The investment is the company’s largest in its 40-year history in the UK.  

Prime Minister Rishi Sunak called the investment a “turning point for the future of AI infrastructure and development in the UK.” 

Join the conversation on the North’s connectivity sphere at next year’s Connected North event, 23-24 April in Manchester – get discounted tickets here! 

Also in the news:
Nvdia and Ooredoo launch data centre deal
India concludes underwhelming 5G spectrum auction
US launches probe into Chinese telcos over data concerns 

Two years after India’s Department of Telecommunications (DoT) sought views on the need for overhauling laws governing the telecommunications sector (and nearly 75 years after the last relevant legislation of the sector) India has a new, updated Telecom Act. It came into effect on 26 June.

The Telecommunications Act 2023 (the year refers to when it was introduced rather than when it became law), replaces a number of earlier laws, including the Indian Telegraph Act 1885 and the Indian Wireless Act 1933.

It’s clearly an understatement to say that technology has changed a lot since then. At the very least, many definitions and terms are completely different, but provisions for spectrum allocation and right of way also needed looking at, along with regulations related to ease of doing business and penalties for offences and non-compliance.

Which seems to be what has happened. As India’s Economic Times points out, there is now a simple regulatory framework. The licensing regime has been replaced with an authorisation mechanism. Right of way rules (a big problem a few years ago) have been updated.

There’s a clearly defined framework for spectrum assignment, including efficient spectrum utilisation, and an adjudication mechanism to resolve disputes before they go to law.

There are also provisions to take necessary measures for national security and public safety. In particular the Act confers power on the government to take temporary possession of telecom networks during public emergencies, including natural disasters. In addition there is now a framework for blocking and interception.

Obviously there’s a lot more to this legislation: there are 11 chapters and 62 sections in the new Act. But the long wait before its arrival makes it clear that legal frameworks are in danger of being left behind by telecoms in some territories.

Indeed, operator Cameroon Telecoms (Camtel) recently suggested that the country’s parliament needs to reform outdated legislation and provide a robust legal framework for the country’s digital economy.

Some legislators clearly agree. Tellingly, Bara Julien, president of the Parliamentary Network for Information and Communication Technologies, is quoted as saying: “Our telecoms laws are obsolete as they date back to many years. But the evolution of technology is constant.”

It’s a point that could be made in many markets with outdated telecommunications laws. How quickly will they respond?

Telecom Namibia has announced what it calls a three-year transformative partnership via a joint venture between mobile technology company ZTE Corporation and its partner company Huafull International Limited.

As part of the company’s five-year Integrated Strategic Business Plan (ISBP) 2027, Telecom Namibia intends to invest in the modernisation of its mobile network (called tn mobile) and coverage expansion. This will include the rolling out of new mobile base stations and the upgrading of existing mobile base stations across the country.

Under the terms of the agreement, Telecom Namibia will procure cutting-edge mobile radio access equipment from the ZTE Corporation and Huafull International Limited joint venture to bolster its mobile network capacity and coverage across the country, including previously underserved areas. The partnership will facilitate the deployment of advanced mobile radio access technology such as 4G, 4.5G, and 5G in order to bring quality, fast, and reliable mobile broadband services to tn mobile consumers.

ZTE Corporation, together with Huafull International, has been involved in the design, construction, and operation of Telecom 3/4G wireless networks since 2013.

Telecom Namibia says the integration of ZTE’s state-of-the art equipment into its network will enable the deployment of next-generation technologies, empowering users with faster data speeds, and improved reliability, while expansion in coverage through the deployment of new sites will enable seamless connectivity.

By leveraging ZTE and Huafull’s expertise and innovation, Telecom Namibia says it aims to accelerate the expansion of its mobile network footprint and deliver enhanced services to both urban and rural areas across the country. 

News 

The partnership is Nvidia’s first large-scale entry to the Middle Eastern market 

Nvidia and Ooredoo have partnered in a deal to deploy “thousands” of Nvidia’s GPUs (graphic processing units) in 26 data centres in five countries (Qatar, Kuwait, Oman, Algeria, Tunisia, and the Maldives). 

The value of the deal has not been disclosed, but it marks Nvidia’s first large-scale entry into the Middle East. 

The Qatari operator has become an Nvidia Cloud Partner, meaning that is “developing an AI-ready platform powered by NVIDIA’s full-stack innovation across systems, software, and services.” It also means that Ooredoo will be the first company in the MENA region whose clients will have access Nvidia’s AI and graphics processing technology, said the companies. 

“Implementing NVIDIA’s full-stack platform for accelerated computing and generative AI, Ooredoo is equipped to be at the forefront of the AI revolution in MENA, driving digitalisation and innovation as the leading digital infrastructure provider in the region. Working with NVIDIA, we aim to meet the significantly growing demand for accelerated computing infrastructure to support advanced AI models,” said Aziz Aluthman Fakhroo, Group CEO at Ooredoo in the announcement’s press release. 

“As a trusted regional telecommunications provider, Ooredoo Group combines deep enterprise and consumer relationships with the ability to invest in and deploy AI infrastructure and services,” Ronnie Vasishta, Senior Vice President of Telecom, NVIDIA. 

“By providing NVIDIA’s full-stack AI computing platform to customers, Ooredoo will help make it easier for their customers to deploy generative AI applications and services,” he continued. 

Recently, The US has imposed restrictions on the sale of advanced semiconductors to certain Middle Eastern nations, motivated by concerns that these high-tech chips could end up in the hands of China. These chips, which are critical for advanced computing and military applications, have become a focal point in the technological and geopolitical rivalry between the US and China. 

This deal, however, is compliant with the latest US impositions. It is A100 and H100 chips that are the focus of the restrictions, not GPUs. 

“As a telecom operator, dealing with very stringent regulation is business as usual. We are used to dealing with regulators and government authorities, whether they’re local or international,” said Fakhroo when speaking to CNBC. 

“We are working very closely with the different regulators and with Nvidia to see all the required approvals and to provide all the guarantees required,” he continued. 

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Also in the news:
Telefónica and Nokia sign agreement to boost adoption of network APIs
Orange mulls selling its stake in Mauritius Telecom
Ericsson Mobility Report: 5G driving change in service providers’ FWA strategies