Three upgrade projects of differing types, plus some M&A news in the data center space from over the weekend or late last week: … [visit site to read more]

Press Release

stc announced the landing of “Saudi Vision Cable”,  the first high-speed cable in the Red Sea through its first landing station in Jeddah

With the name inspired by the KSA Vision 2030, the Saudi Vision Cable spans 1,160,000 meters and it is fully owned by stc Group. The Saudi Vision cable is the first ever high-capacity submarine cable in the Red Sea region that will provide seamless connectivity up to 18Tbps/fiber pair with a total of 16 fiber pairs through four (04) landings in Jeddah, Yanbu, Duba, and Haql. 

Marking this event, Eng. Olayan Bin Mohammed Alwetaid Group, CEO of stc, said: “This achievement reflects our comprehensive strategy that aims to diversify the Group’s investment opportunities and support digital transformation in the KSA by boosting the digital infrastructure. The cable will provide digital connectivity services for corporates and individuals between the KSA and the continents by building a regional digital hub connecting the continents of the globe and help meet the needs of companies and customers via an integrated digital ecosystem”.  

“Saudi Vision Cable provides communication between several international information centers. It also achieves the raising level of the unified optical fiber platform that is cost-efficient and flexible, and provides access – low latency – to all international cables in the landing stations and information centers of the stc Group”, he added.  

The new cable will be one of the submarine cables that will be linked to the MENA Hub connecting three continents of the globe, leveraging the strategic location of KSA. This will help to enhance investment in international communication services and data centers.  

This cable will join 16 cables invested by stc that are positioned between the east and the west of the KSA. Saudi Vision cable will provide a higher and more reliable internet service to meet the increasing demand for communications and internet at the local and international levels. It will also allow all of the country’s sectors to obtain high-speed internet services, including education, healthcare and business which will, in general, provide economic and social benefits. 

How will the Saudi Vision Cable affect the connectivity landscape throughout the Mediterranean and the Middle East? Join the submarine cable community in discussion at Submarine Networks EMEA 2023

Also in the news:
UK drone ‘superhighway’ cleared for take-off
FCC wants additional $3bn to ‘rip and replace’ Chinese network kit
Telefonica and Ericsson demo 5G network slicing for diverse use case

NEWS

Reports suggest that Altice International was the subject of a cyberattack earlier this month, but the scale of the attack has yet to be announced

Today, a report from RedPacket Security suggests that France’s second largest operator, Altice, has been hit by a ransomware attack from the cybercriminal gang Hive.

RedPacket Security is an InfoSec news site that scrapes information relating to cyberattacks from the dark web, with the site reporting that the attack took place on August 9 this year, though it was only disclosed by the hacker group yesterday.

The scale of the attack is unclear, but files are reportedly available for download via the Tor browser.

The attack has not been publicly disclosed by Altice

Having been first detected in the summer of 2021, the Hive ransomware group has quickly become one of the most prolific ransomware gangs in the world, instigating over 350 attacks on various targets, primarily in the healthcare and financial services sectors.

To make matters worse, earlier this year, Hive was reported as having overhauled its software, migrating the code to the Rust programming language and therefore enabling even more complex encryption.

Most recently, the group successfully attacked two sixth-form colleges in Bedfordshire, UK, demanding £500,000 for the release of the stolen data.

Like so many ransomware gangs in 2022, Hive typically operates via a strategy known as ‘double extortion’.

In the past, ransomware typically worked by hacker groups gaining access to sensitive files, encrypting them, and threatening the owner with deletion of the files if they did not pay a ransom for the encryption key. However, companies quickly grew wise to this threat, creating and storing various copies of their data elsewhere to negate the risk of encryption and deletion.

In turn, this has led ransomware companies to evolve, with many now not only encrypting the compromised files but exporting them and threatening to leak or sell the sensitive data if their demands are not met. This is what is known as ‘double extortion’.

With their vast stores of customer data, telcos themselves are becoming increasingly appetising targets for ransomware gangs, with reports of attacks increasing dramatically since the start of the pandemic, which forced millions of people to work from home and therefore potentially created new vulnerabilities.

The most notable of these attacks took place against T-Mobile around a year ago, with an attack compromising data for millions of existing, past, and even prospective T-Mobile customers.

According to a recent report from Acronis, ransomware has rapidly become the number one threat to medium and large-sized organisations in 2022.

Want to keep up to date with the latest developments in the world of telecoms? Subscribe to receive Total Telecom’s daily newsletter here

NEWS

The ‘Coverage Above and Beyond’ plan will see the next generation of Starlink satellites provide mobile services directly to T-Mobile customers’ smartphones

This week, a highly anticipated deal between Elon Musk’s SpaceX and T-Mobile has been announced, with the new partnership aiming to use the former’s low Earth orbit (LEO) satellite constellation, Starlink, to plug movile coverage gaps across the USA.

The ‘Coverage Above and Beyond’ initiative will see customers gain access to Starlink internet services directly to their device for the first time, theoretically allowing them mobile coverage anywhere in the country.

Currently, SpaceX’s almost 3,000 orbiting satellites provide connectivity via ground terminals, which customers can purchase and deploy themselves. These ground stations act as an intermediary between the satellites in orbit roughly 550km above the Earth’s surface and the users’ smartphones or other devices.

However, next year SpaceX will begin launching a second-generation of satellites, equipped with new phased array antennas capable of delivering direct-to-device connectivity.

According to the partners, SpaceX’s services will be directly available on the vast majority of smartphones already on T-Mobile’s network, without the need for new handsets.

“We are constructing special antenna. […] They are actually very big antenna that are extremely advanced,” said Musk. “The important thing is you will not need to get a new phone. The phone you currently have will work.”

The Starlink satellites will use T-Mobile’s mid-band spectrum to deliver high-speed connectivity.

According to T-Mobile, there are currently around 500,000 square kilometres of the US that remains unreached by terrestrial mobile connectivity, all of which could be covered as part of the new deal.

“It is about solving the biggest pain point in the over-40-year history of our industry,” said T-Mobile CEO Mike Sievert. “This partnership has a vision that is the end of mobile dead zones”.

While initially penned to cover the US, in future the partners plan to expand this connectivity initiative worldwide, with T-Mobile offering reciprocal roaming to providers that take part in the scheme.

“The important thing about this is that there will be no dead zones for your phone anywhere in the world,” said Musk, who noted that truly ubiquitous global coverage would save lives, allowing people to call for help if needed no matter where they are in the world – provided they are outside, of course.

A beta service from the satellites will be available before the end of 2023 in selected areas, with services initially set to be limited to texting and messaging. Voice and data capabilities will be added at a later date.

While SpaceX’s Starlink is currently the largest LEO constellation in the world – and will presumably remain so, if Musk’s plans to ultimately launch up to 42,000 satellites come to pass – it should be remembered that it is not the only satellite company in the US planning direct-to-device connectivity. In fact, AT&T has been working with AST SpaceMobile since at least 2019, with the duo announcing earlier this year that they will soon test transmissions from regular smartphones to SpaceMobile’s new satellite using AT&T spectrum.

AST SpaceMobile already has a similar Memorandum of Understanding with Telefonica.

Starlink will also have to contend with OneWeb’s growing LEO constellation and ultimately the large-scale launch of Amazon’s Project Kuiper, though dates for the latter’s initial launches have yet to be confirmed.

But despite growing competition, this deal represents a major win for SpaceX at a time when its Starlink constellation needs it most. SpaceX was recently denied $885.5 million in government subsidies to rollout broadband in rural areas, with the Federal Communications Commission saying the company had failed to demonstrate that they could achieve the speeds they promised to deliver in their application.

News

In the memo sent to all Huawei staff, Ren Zhengfei said the company must focus on profit over scale and discard “overly optimistic” expectations

With a global recession looming, this week has seen employees of Chinese vendor giant Huawei issued a stark warning from the company’s founder and chairman, Ren Zhengfei.

In a leaked memo delivered to all the company’s 195,000 staff members, Ren was gloomy about the future of the global economy, telling employees that there was a “very painful” decade ahead, citing the long-term effects of the pandemic, the war in Ukraine, and US sanctions on Huawei.

“Huawei must reduce any overly optimistic expectations for the future and until 2023 or even 2025,” he said in the memo. “We must make survival the most important guideline, and not only to survive but survive with quality”.

Ren said that the company must adapt to these new conditions by refocussing on cash flow and profit, rather than simply growing sales revenue.

“Take surviving as the main program, shrink and close all marginal businesses, and pass the chill to everyone,” Ren said. “The entire company’s business policy should shift from the pursuit of scale to the pursuit of profit and cash flow.”

As part of this process, Ren indicated that the company could seek to downsize in overseas markets and reduce spending on R&D in areas not delivering immediate profit, such as electric vehicles.

In fact, Huawei has already begun streamlining its workforce, having already cut roughly 2,000 jobs in 2021, largely due to US sanctions shrinking the company’s annual revenue by over a third. Now, sources are suggesting that the company is preparing to cut 4,000–5,000 additional middle manager jobs.

It appears to be no coincidence that Ren’s memo should come shortly after the Huawei’s H1 financial results, which were quietly announced earlier this month. While the company’s decline in revenues had slowed since Q1, the company still reported their overall revenues as down 5.9% year-on-year, reaching roughly $44.7 billion.

This ongoing slump in revenue is largely attributed to the continued decline of Huawei’s handset business – the business unit worst hit by US sanctions – where sales shrunk by around a quarter compared to 2021.

However, the revenue reduction was also offset somewhat by the company’s carrier and enterprise software units, which continue to grow at a healthy pace.

“While our device business was heavily impacted, our ICT infrastructure business maintained steady growth,” said Ken Hu, Huawei’s rotating chairman at the results announcement. “Moving forward, we will harness trends in digitalization and decarbonization to keep creating value for our customers and partners, and secure quality development.”

“Our strategy for operations in 2022 revolves around surviving and doing so sustainably,” Hu noted.