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This Industry Viewpoint was authored by Mikko Jarva, Head of Portfolio & Architecture, Network Monetization Platform at Nokia
With 5G deployments now widespread in many markets, telecom network providers are ushering in a new era to enable the building of new and improved software applications that enrich the network experience of business customers and consumers while generating new revenue streams. … [visit site to read more]
The GSMA claims that Indonesia stands to lose US$14 billion in GDP gains over the next six years if it doesn’t rethink it 5G spectrum pricing in the next auction.
The Ministry of Communication and Information Technology (Kominfo) is planning to award several frequency bands over the next two years, including 700 MHz, 2.6 GHz and 3.5 GHz, as well as mmWave frequencies in the 26 GHz band. That would more than double the current total supply of mobile spectrum.
However, a new report from GSMA Intelligence points out that estimated annual spectrum costs for mobile operators in Indonesia have increased more than five-fold since 2010, mainly due to auction-related payments and spectrum fees associated with licence renewals.
Making matters worse, average revenue per unique mobile subscriber dropped 48% over the same period (in USD terms). The report estimates that annualised spectrum costs to recurring cellular revenue is currently at 12.2%, compared to the APAC and global median values of 8.7% and 7.0%, respectively.
At the very least, the report says, this could hamper the ability of Indonesian operators to meaningfully invest in 5G infrastructure, which will slow down rollouts and result in poor customer experiences.
The GSMA also frames the issue in terms of the expected socio-economic benefits that 5G will deliver to Indonesia, saying that the country could lose US$14 billion (IDR 216 trillion) in GDP between 2024 and 2030 if it prices 5G spectrum similar to the previous spectrum auction.
The report urges Kominfo to lower reserve prices below estimates of market value, and adjust the way it calculates annual spectrum fees to provide long-run incentives and avoid disproportionate increases in costs that aren’t aligned with market conditions.
The GSMA also recommends that Kominfo come up with a clear and comprehensive spectrum roadmap that accommodates current and future needs, particularly for mid-band spectrum.
“According to our forecasts, 5G will reach 80% of the population by 2030,” said Julian Gorman, Head of Asia Pacific, GSMA. “For 5G to succeed in Indonesia, the government should focus on the right enabling policies, including spectrum supply and pricing. This requires a well-crafted regulatory framework for a successful auction that delivers a fair return for the government and encourages digital growth.”
French mobile operator Orange has announced a deal with the French government, that will see Orange increasing its fibre deployment to 1.12 million homes by 2025.
The deployment deal will include areas which are the least densely populated in the country, named AMII zones. The company acknowledged the stark disparity between rural and urban areas, promising to provide over 140,000 homes with fibre in the areas with the least connectivity.
In urban areas, deployments will continue, with the aim of connecting 300,000 premises by 2025.
“After making a major contribution to the success of the France Très Haut Débit plan (France’s superfast broadband plan) in 2022, Orange is once again working with the government to ensure the widespread deployment of fibre by 2025,” said Orange CEO Christel Heydemann.
“Having already covered 21 million of the 36 million eligible premises in France, we’re determined to make this major project a national success, benefiting as many people as possible.”
The announcement comes after Orange ran into legal issues concerning the rate of their fibre deployment. The French Authority for Regulation of Electronic Communications, Mail and Press Distribution (ARCEP), fined Orange €26 million for missing the first deadline of deploying fibre for broadband in 3,000 municipalities across France. The first deadline was missed in 2020, and the company was put on notice in March last year.
ARCEP noted that Orange’s non-compliance was “particularly serious” because it harmed the interests of end users in their access to networks.
Arguing against the claim and fine, Orange said “the fine imposed by ARCEP could further reduce the amount of investments made in the deployment of fibre, to the detriment of households waiting for connection.”
The company will refer the issue to France’s highest administrative jurisdiction, the Council of State.
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Also in the news:
KPN outlines new €4.5bn network investment plan
Vodafone Germany accelerates railway 5G deployment
nexfibre releases rollout plans
Operator Zain KSA has announced a strong Q3 2023 financial performance driven, in part by tower-related business.
The Saudi operator reports its highest quarterly revenues, exceeding SAR 2.5 billion (about US$666.7 million) – a 10% increase compared to the SAR 2.2 billion (US$586.7 million) generated in the third quarter of the previous year, as well as recording SAR 285 million (US$76 million) in net profit, a growth of 234% compared to the corresponding period in 2022.
Importantly, this strong financial performance is in part attributed to Zain’s recent tower infrastructure sale and leaseback deal. This generated gains totalling SAR 139 million (US$37.1 million) during this quarter. However, this is just part of a total financial impact which the company expects to reach SAR 1.1 billion (US$293.3 million) over the 18-month period of the tower ownership transfer.
Saudi Arabia’s second-largest telecoms company completed a deal in January to sell a stake in its tower infrastructure for more than SAR 3 billion (US$800 million). As part of the deal, Zain KSA sold at least 3,000 towers, out of a total of 8,069, to Golden Lattice Investment Company (GLIC), which is owned by the kingdom’s sovereign wealth fund, the Public Investment Fund, Zain KSA, Prince Saud bin Fahad and Sultan Holding Company.
Towers are far from the sole reason for the strong balance sheet in Q3. Zain also cites sustained business growth across all sectors with strong demand for cutting-edge services and solutions such as cloud computing, the Internet of Things, and artificial intelligence.
Beyond the growth in 5G revenue, Zain KSA says it has also witnessed a steady uptick in its consumer services and a surge in demand for Yaqoot digital services and micro-finance solutions offered through Tamam, its fintech arm.
Two items of M&A, one expansion, and an ecosystem partnership: … [visit site to read more]
Lumen Technologies has won a $110 million contract from the U.S. Defense Information Systems Agency (DISA) operate and maintain DISA’s fibre backbone.
The contract, which is the latest in a series won by Lumen, will see the company operating and maintaining colocation facilities, dark fibre, end-to-end network infrastructure, new fibre builds, and system updates “that use new technologies to improve network resilience, decrease latency and increase availability,” according to Lumen’s announcement about the contract.
The recent contract is an extension of an existing network services contract DISA previously awarded to Lumen, the company said.
Jason Schulman, Lumen national vice president, federal sales, said Lumen delivers always-on services that power the U.S. Department of Defense.
“DISA leverages the Lumen network’s strength, diversity and resiliency to achieve its mission of connecting and protecting America’s service men and women who help defend our nation,” he said.
The contract has a ceiling of approximately $110 million over a five-year period of performance until September 2028, according to Lumen’s Nov. 7 announcement.
Previously, Lumen won a $223 million contract with DISA, which was announced in Feb. 2023. In that contract, Lumen was selected to deliver voice communications services for the U.S. Department of Defense (DoD), according to Zain Ahmed, senior vice president, Lumen public sector, whose comments were included in a Feb. 2 announcement.
“DoD is modernising its network and leveraging cloud-based technologies like the new voice system enabled by Lumen that securely connects our troops with modern communications tools wherever they are,” he said at the time.
Other government contracts recently awarded to Lumen include a $1.5 billion contract from DISA to provide essential network transport and communications services in the U.S. Indo-Pacific Command Area of Responsibility and a $1.2 billion contract to deliver a fully integrated wide area data transport service with secure remote access, contact centre and cloud connectivity solutions to more than 9,500 USDA locations across the country, according to Lumen.
Before those contracts, both awarded in 2022, Lumen was awarded a $1.6 billion contract to provide secure network services and IT modernisation solutions to the U.S. Department of the Interior in 2020, according to information provided by the company.
Published by our sister title, Broadband Communities. Reach editor Brad Randall at brad.randall@totaltele.com.
Also in the news:
KPN outlines new €4.5bn network investment plan
Vodafone Germany accelerates railway 5G deployment
nexfibre releases rollout plans
Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
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Over in western Europe, euNetworks has made some new investments into its low latency connectivity between key financial exchanges. They are now claiming to deliver the lowest latency to the Euronext exchange from both London and Frankfurt. … [visit site to read more]
Lumen has won another significant federal contract, building upon the success. They will be operating and maintaining the fiber backbone of the Defense Information Systems Agency (DISA). … [visit site to read more]
