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Beware the seven deadliest customer experiences – Foundever

Repetition, ratings and rude robots

You can tell a CEO who’s spent too much time ‘in the cloud’. They believe their own customer satisfaction surveys. Either that or they are deliberately gas-lighting us. To improve customer experience, Mobile Europe sought simple ‘people pleasing’ advice for telcos from people who really know the customer. In the first of an occasional series, Maria Harju, Foundever’s Chief Revenue Officer for Europe, the Middle East and Africa, describes The Seven Deadliest Customer Experiences and how mobile network operators can avoid them.

Repetition.

Repeating your story to multiple people is enough to make 57% of Europeans hang up. Yes, some problems demand escalation, but if you’re moving your customer across an omnichannel platform it’s omni stupid not to move the information from channel to channel too. A CX should systematically do that. This averts another massive frustration, disregard for the customer’s history. How can you pretend to care about the customer experience when you show you are demonstrably oblivious to it? All the information across all channels is captured and should be correctly stored and retrieved so that your agents can do their best jobs.

Rate your experience.

OK, we need performance feedback, but customers are suffering from survey overload. Every trip to the toilet now involves an invitation to rate the experience. There are better ways to learn how customers feel about service and how they perceive your brand. Speech and text analytics are instant, less obtrusive and more accurate.

Chatnots.

If you don’t acknowledge your chatbot’s limitations, you’re setting your brand up for a CX failure. If your customer knows it’s an automated system, they’ll treat it as such and adjust their expectations accordingly. But when the bot goes beyond its domain intelligence it must hand off to a live representative and pass on the information shared up to that point.

Chats …. with delayed response. 
Chat’s rationale is about immediacy and accuracy but long wait times and vague unfocused responses will demolish that advantage. Immediate contextual support can help a customer take action or make a decision. Avoid the temptation to set high chat concurrency targets for agents. The more conversations they handle the less likely they are to resolve complex issues or satisfy each customer. Use your best pre-scripted responses in early conversational stages so that agents have more time to find a resolution. Cross train your CX staff so that they can work across channels based on peaks in demand.

Undervaluing CX

If each interaction doesn’t meet expectations it will damage your brand. So stress its value in your proposition. A superior customer experience should be reflected in the price of a product or service. If you’re cheap very hard to hold on to customers, especially in the current economic environment. Here is the value of CX. Three in four consumers will walk after a single disappointing customer experience, yet 42% would pay more for an identical product or service if it were supported by a superior CX. Being in the latter camp starts with understanding who your customers are, their wants, needs and expectations.

Treating vocal interaction like a necessary evil.

Test yourself before you test their patience. Voice is about people not managing processes, so IVR should solve customers’ problems, not stress test their patience and short-term memory on the altar of your management processes, said Harju. Most consumers are frustrated by complicated menus then agitated by the agent that takes over. A happy resolution is an uphill battle. An IVR should minimise menu options, as part of the identification or authentication process so that more of the conversation is focused on the customer and their issue, and use it to coach the customer. Rather than playing a message saying the call is important, a message asking if a person has the reference number or other relevant information to hand is going to make everyone’s life easier.

Network resilience is fundamental to Ukraine’s fight for survival

Kyivstar’s CEO and CTO talk about the power of grit and operators pulling together

In a small, quiet meeting room on the sidelines of Mobile World Congress with executives from Ukraine’s largest operator Kyivstar, the discussion was in stark contrast to what was going on at the show. While other European operators talked about fair-share politics and future immersive experiences, Kyivstar provided an update on how it has kept people safe and its network up and running after one year of war. 

Oleksandr Komarov, Chief Executive of Kyivstar, acknowledged having a somewhat “alien” feeling here as the operator has “very different challenges and priorities” compared to the rest of the industry.

In an interview with Mobile Europe, Komarov and Volodymyr Lutchenko, Chief Technology Officer at Kyivstar, shared how network resilience challenges have changed dramatically over the last year and how people have pulled together to preserve communications services. (Also see Telecoms in time of war)

National roaming

Cooperation among the country’s three operators – Kyivstar, Vodafone Ukraine, and Lifecell – has been “essential” for overall network resilience, and they have been “exchanging capacity and providing equipment to one another,” said Komarov.

Indeed, one of the first and most important steps the operators took after Russia invaded a year ago was to implement national roaming, so that if network services are down on one network, users are automatically switched to another. National roaming is unusual and difficult, but the Ukrainian operators were able to launch it in about three weeks with support from the national regulator.

The service is “working well to keep services going,” said Lutchenko. When the country suffered power blackouts in November last year, he said more than 2 million people per day used the national roaming service.

When the war started, the government also issued additional frequencies free of charge to the operators to give them extra network capacity. Meanwhile, equipment suppliers and local businesses have also rallied to help keep the networks going.

Komarov cited an example where Ericsson stepped up to support a “very big ambitious project to roll out a national core site in the western part of Ukraine … to mitigate the risks related to the potential loss” of other sites, he said. In peace time, such a project would take 12 to 18 months. But with everyone cooperating, he said they started the project at the start of 2022 and it was completed in early May, taking less than five months for a major deployment.

Moving targets for resilience

As the months of war have dragged on, the network resilience challenges have changed. In the first few months, Lutchenko said Kyivstar was engaged in “urgent activities” to keep the network going when the infrastructure was physically damaged by rockets, bombs, mines, and tanks, because the biggest problem is that it is often too dangerous to get to the sites to repair damages.

“[The sites] could be in occupied territory or on the front line. The area could be under fire or the fields can be mined so that without supervision from the military, you cannot get there … That’s why your network should be very reliable and still work with multiple damages like ours,” said Lutchenko.

Later in the summer, the resiliency work shifted to “stabilisation” projects. By September, Kyivstar’s network performance KPIs remarkably were “almost on a pre-war level.” Apart from occupied areas where Kyivstar had no access to sites, “the network was really good,” he said. 

Attacks on energy pose new threats

The communications resiliency landscape changed in October when Russia started attacking the country’s energy infrastructure. Lutchenko said the challenge is now “really huge” and the “new reality.” In late October, about 20% of Kyivstar’s base stations were affected by power outages. Lutchenko said the worst day was November 24, 2022, when 65% of Kyivstar’s network was without electricity.

In response, Kyivstar has strengthened energy resilience by adding longer-life backup batteries and diesel-powered generators.

Here again, cooperation has been vital. In Kyivstar has “crowd-sourced” access to power generators from local businesses, such as a petrol station located near one of the operator’s cell sites. “We asked businesses and invited people to help us with keeping the network up and running,” said Lutchenko, and now more than 600 sites are connected to diesel generators.

But this is one area where Komarov feels help from the government has been “limited”. Of Kyivstar’s 1500 generators, he said about 40 were provided by the government and the rest were either procured by the operator or acquired from third parties that have “extra power capacity on hand located nearby our sites.” Kyivstar said it has invested around US$5 million just on generators and diesel fuel. 

Fighting on two fronts

Kyivstar’s network is under threat from cyberattacks as well as physical attacks. “The Russians want to destroy us not only physically, but virtually as well, so that means we have to fight on two front lines,” said Lutchenko.

The operator took measures to protect its network by relocating certain equipment away from areas that were likely to come under Russian control. Komarov explained that in occupied territories there was a cyber defense effort underway to ensure that despite not having control of all its network, the operator was not “vulnerable to extra threats.”

“We streamlined the architecture of our core infrastructure to minimise the number of potential vulnerabilities,” he said. In Kherson, for example, Kyivstar had “just a media gateway and RAN network” and this “decreased the risk of penetration,” he said.

Restoring liberated areas

As territories are liberated, Kyivstar works on repairing the destruction to its network. Lutchenko said that about 18% to 20% of the telecom infrastructure in formerly occupied regions is “totally destroyed,” meaning “there is nothing from an equipment or infrastructure point of view.” About 30% to 35% is “heavily damaged” and about 40% has “minor damages.” Kyivstar says it can repair nearly 90% of the network in those areas.

“We’re waiting for our military to liberate more territory and we are ready to restore everything,” said Lutchenko.

Losing more than infrastructure

Kyvistar is worried about losing more county’s critical communications infrastructure: it is also working to keep its 3,800 employees and their families safe. In the initial months of the war, the operator provided instructions for where people could go for safety and converted regional offices into temporary homes with showers and washing machines for displaced families.   

Around 140 Kyivstar employees have been drafted into the army and thousands volunteer to help the army in various roles. The operator has lost three of its employees in the war and two are missing.

Kyivstar relies on maintenance and construction suppliers, but their situation is “very much worse” because they cannot protect employees “with the same efficiency as Kyivstar” due to its critical infrastructure status, explained Komarov.

Lutchenko joined Kyivstar in November 2021 and has been in the telecom industry in Ukraine for more than 25 years. “I don’t think anyone can plan for stuff like this. The most important thing is we have the greatest team in the world.”

Asked how the war has affected the operator’s business, Komarov said the operator was “in the green” and there is “extremely high pressure on our networks.”

“But let’s face it, it’s less about business and much more about survival,” he said.

More techcos step up to support Ukraine

Microsoft, VMware, Intel, AMD and OneWeb are the latest to stop trading with Russia – and some with Belarus too

Last week Google blocked Russians’ access to Google Pay and Apple did likewise with its wallet product and product sales in Russia.

Some have criticised Apple’s move, pointing out it could push people towards using Android phones made in China that are more susceptible to hacking and surveillance.

However, Apple made the moves after a direct appeal to its CEO, Tim Cook, by the Vice Prime Minister of Ukraine Vice

Now more big tech firms are following their lead.

Microsoft has suspended all new sales of Microsoft products and services in Russia.

The chips are down

Chip giant Intel said in a statement that it, “condemns the invasion of Ukraine by Russia and we have suspended all shipments to customers in both Russia and Belarus.

“Our thoughts are with everyone who has been impacted by this war, including the people of Ukraine and the surrounding countries and all those around the world with family, friends and loved ones in the region.”

Another chip giant, AMD has also stopped shipments to Russia and Belarus.

VMWare is suspending all its business activities in Russia and Belarus due to the unprovoked attack by Russia. It published a statement that read, “We stand with Ukraine, and we commend the bravery of the Ukrainian people. The human toll is devastating and like other global businesses, we are committed to supporting our Ukrainian team members, customers and partners.”

It added, “We are also seeking to support non-Ukraine-based employees with family members located in Ukraine with information to access available resources. We continue to support our employees in Russia, as they are adversely impacted by the consequences of their government’s actions.

“The suspension of operations includes suspension of all sales, support, and professional services in both countries in line with VMware’s commitment to comply with sanctions and restrictions.”

The board of directors at satellite operator OneWeb has voted to suspend all launches from Baikonur, the Russian cosmodrome in Kazakhstan.

Social media battles

Meanwhile social media sites are continuing their battle with Russian authorities, which are keen to control the flow of information and the narrative surrounding the war.

Facebook, Twitter and YouTube have acted to prevent Russia’s state media making money from ads on their sites. In response, Moscow has said will restrict access to Facebook after its parent company Meta refused to stop fact-checking some Russian media companies’ output.

TikTok has limited access to Russian state-controlled media accounts in the EU and Reddit has stopped users posting links to Russian state-sponsored media.

Expect yet more big techcos to act soon.

European cloud providers tread water in growing market


Amazon, Microsoft and Google collectively now have over 140 hyperscale data centres operational in Europe

Synergy Research Group has provided a timely reality check to aspiring European cloud providers hoping to take advantage of geopolitical tensions and subsequent sovereign aspirations. Its latest report shows that European service providers more than tripled their local cloud revenues from 2017 to 2024. However, over that same period the European cloud market grew by a factor of six, reaching €61 billion ($70 billion) in 2024.

European cloud providers’ market share dropped from 29% in 2017 to 15% in 2022, though it has stayed relatively constant at around 15% since then. The main beneficiaries of Europe’s market growth have been Amazon, Microsoft and Google. These three global cloud providers now account for 70% of the regional market.

Among the European cloud providers, SAP and Deutsche Telekom are the leaders, each accounting for 2% of the European market. They are followed by OVHcloud, Telecom Italia, Orange and a long list of national and regional players. The balance of the European market is accounted for by smaller US and Asian cloud providers. 

“While European cloud providers have been growing and some will no doubt continue to grow, none come remotely close to challenging the big US cloud providers for leadership of European markets,” said Synergy Research chief analyst John Dinsdale. “That train left the station years ago and there were no European companies on it.” 

He said Amazon, Microsoft and Google collectively now have over 140 hyperscale data centers operational in Europe. “US cloud providers continue to invest €10 billion every quarter in European capex, most of which comes from the big three,” he said. “European cloud providers need to focus on pockets of opportunity where they have some distinct and sustainable advantages over their US-headquartered competitors.”

KDDI provides sovereign service example

Synergy’s research clearly demonstrates that regardless of the rise of sovereign providers, the US cloud companies will continue to dominate. As a result, operators are looking at how to avoid becoming victims of the CLOUD Act (Clarifying Lawful Overseas Use of Data Act). One new example, outside Europe but applicable, is Japanese operator KDDI’s new “Encrypted Key Management Service for Google Cloud,” launching on 30 July 2025. 

By ensuring that encryption keys are managed exclusively by domestic entities – KDDI and its affiliate iret – this service separates data control from the cloud provider, in this case Google Cloud, safeguarding customer data from foreign jurisdictions. It builds on Google Cloud’s Assured Workloads offering, which restricts data storage and processing to within Japan, aligning with local regulatory requirements and customer expectations in sensitive industries such as finance, healthcare, and energy.

This sort of model could prove valuable for European cloud operators grappling with the extraterritorial reach of US legislation, particularly the CLOUD Act. This US law compels American technology companies to provide data stored abroad to US law enforcement if requested, even if doing so would violate local laws. By placing encryption key control in the hands of a local entity and localising data processing environments, European providers could replicate KDDI’s approach to reinforce data sovereignty. 

In fact, T‑Systems already provides External Key Management (EKM) alongside its Data Protection as a Service (DPaaS) for AWS users. In this setup, T‑Systems operates the key management infrastructure from its EU‑based data centres, separate from Amazon’s systems, ensuring that encryption keys remain under European control. Customer data stays within European borders and is managed exclusively by EU personnel, reinforcing compliance with GDPR and insulating data from US legal jurisdiction. The caveat with all of these services is that they are yet to be tested in court.

There’s a few other examples in Europe. LuxTrust, in partnership with Thales and DEEP by POST Group, provides a Key Management as a Service (KMaaS) solution based in Luxembourg. This setup ensures that encryption keys and data remain under European control, helping clients comply with EU data protection laws.

In the Google Cloud ecosystem, the S3NS joint venture between Thales and Google delivers trusted cloud services with data localisation in France or the wider EU. Meanwhile, OVHcloud has secured SecNumCloud certification from France’s cybersecurity agency ANSSI, affirming its suitability for public sector and regulated industries. 

Breaking down the numbers

Synergy estimates that European cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were €36 billion in the first half of 2025, with full-year 2025 revenues set to grow by around 24% from 2024. Public IaaS and PaaS services account for the bulk of the market and they continue to grow more rapidly that hosted private cloud services.

AI is increasingly driving the market, with growth of 140-160% in generative AI-specific services such as GPUaaS and GenAI PaaS. In Europe the largest cloud markets are the UK and Germany, but the big markets with the highest growth rates are Ireland, Spain and Italy.

“The cloud market is a game of scale where aspiring leaders have to place huge financial bets, must have a long-term view of investments and profitability, must maintain a focused determination to succeed, and must consistently achieve operational excellence. No European companies have come close to that set of criteria and the result is a market where the five leaders are all US companies,” said Dinsdale. 

“As US cloud providers continue to invest some €10 billion every quarter in European capex programs, that presents an impossible hill to climb for any companies who wish to seriously challenge their market leadership,” he said. “Consequently European cloud providers have mostly settled into positions of serving local groups of customers that have some specific local needs, sometimes working as partners to the big US cloud providers.”

He concluded: “While many European cloud providers will continue to grow, they are unlikely to move the needle much in terms of overall European market share.”

Update: Brussels to probe KKR’s €22bn take-over of TIM’s fixed network

The European Commission is investigating the accuracy of the information provided by the investment fund concerning the impact its acquisition would have on the market

The European Commission yesterday announced an investigation into the information provided by the investment fund KKR about the impact of it acquiring TIM’s fixed network last year. It was the biggest private equity deal ever in Europe. It seems the main area of interest is the effect on wholesale broadband access in Italy.

Update: KKR said in a press statement, “As stewards of public infrastructure, we take seriously our responsibility to those we serve, the European Commission, and Italian regulators.

“As part of the transaction clearance, we worked with the European Commission in good faith and provided specific and accurate information, and FiberCop continues to adhere to customer commitments and economic regulation governed by AGCOM, the independent Italian communications regulatory authority. KKR will fully engage with the Commission to address any concerns and work toward a full resolution of this matter.”

Deal was approved

The Commission approved the deal unconditionally on 30 May last year after examining information submitted by interested parties to guard against any party gaining dominant and possibly monopolistic power in the market. It is a legal requirement that information submitted to the Commission when seeking approval is complete and accurate, without misrepresentation.

The Commission decided that the deal would not be to the detriment of retail broadband and other service suppliers.

The complex acquisition was pushed through after a battle of more than a year and after many years of turbulence in TIM’s boardroom. The French media group, which was then TIM’s major shareholder, fought the takeover of the fixed network, and its being spun out of the rest of the organisation. KKR bought NetCo in 2024: NetCo was set up in November 2023.

NetCo controls the fixed-line wholesale business, FiberCop which was itself was spun out of TIM in August 2020 with TIM holding 58%, KKR Infrastructure 37.5% and Fastweb 4.5% at its creation.

TIM’s CEO, Pietro Labriola, argued that the acquisition by KKR was the best option for rescuing the debt-laden former state-owned monopoly and had the backing of the Italian government.

Financial projections at odds with reality?

It appears that some of KRR’s financial projections might not be going to plan. In January FiberCop’s CEO, Luigi Ferraris, quit after seven months in the job over “a projected €449mn earnings hole”.

Reportedly at a meeting of shareholders in February, FiberCop’s management said the predicted shortfall in earnings compared to those set out in KKR’s business plan meant that either the projected billions of euros in dividend payments over the next five years would have to be cut or the company would have to raise more public debt and risk a ratings downgrade. The main reason for the immediate shortfall was due to the number of lines it expected customers to cancel, which has since been revised upwards.

It is also reported that the management said it expected a €2 billion EBIDTA shortfall over the next five years compared with KKR’s business plan. This did not go down well with shareholders. The FT’s report suggested that in future, KKR would have to approve all public statements.

Fibercop has refuted reports of tensions among shareholders.

5G Standalone is boosting mobile core network spend – Dell’Oro 


Network APIs, network slicing, and RedCap have driven multi-access edge computing up 17% 

Market analysts Dell’Oro have come to the conclusion that the 5G super-tanker is for now – ignoring the current geopolitical tensions – showing signs of turning around as operators continue to commit to 5G Standalone (SA) networks. The global 5G mobile core network (MCN) market is projected to grow at a 6% compound annual growth rate (CAGR) 2024-2029. 

Dell’Oro puts this acceleration largely down to the increasing adoption of 5G Standalone (SA) architecture. In parallel, the multi-access edge computing (MEC) market is expected to expand at a much faster 17 percent CAGR, fuelled by the rollout of dynamic network slicing, Reduced Capability (RedCap) devices and the rise of network APIs aligned with GSMA’s Open Gateway initiative.

AI and slicing driving demand

The Global Mobile Suppliers Association (GSA) seems to back up Dell’Oro’s vibe as well. GSA’s tracking of early adoption (5G‑Advanced) supports the narrative of evolving core capabilities, tying back to Dell’Oro’s view of AI and slicing demands pushing SA networks forward. In May 2025, GSA released a report on 5G‑Advanced (Release 18) showing that 26 operators in 15 countries are investing in 5G‑Advanced networks. In addition, 5 modems and 75 devices are already compatible with Release 18, signalling early ecosystem activity.

To top it off, GSA announced the creation of a 5G RedCap SIG to streamline ecosystem development and adoption, bringing together industry heavyweights like Ericsson, Huawei, Qualcomm, Intel, MediaTek, and VIAVI. 

“Our forecasts are primarily driven by subscriber growth rates and the usual subscriber behaviour, and for the 5G MCN segment, our current projection is at a 6 percent CAGR,” said Dell’Oro research director Dave Bolan. “However, the emergence of Generative AI and Agentic AI, especially with increased data traffic and expectations for continuous, low-latency connectivity, may eventually require expanded network capacity, which could push the growth rate even higher.”

“Agentic AI is also the key to reaching L4 autonomous networking, which could dramatically reduce operational costs for Mobile Network Operators (MNOs),” he said. “MEC is expected to grow at a 17 percent CAGR due to the convergence of several key developments.”

He added: “Dynamic network slicing is enabling on-demand performance enhancements, RedCap is helping reduce the cost and complexity of IoT device connectivity, and the GSMA’s Open Gateway initiative…is rapidly gaining momentum. Seventeen APIs have already been defined, with support from 72 MNOs worldwide.”

Bolan pointed out that vendors are actively building and marketing Open Gateway-compliant solutions, further accelerating MEC adoption and ecosystem expansion. 

IMS core also boosted

Beyond MEC, Dell’Oro argued that as 3G networks shut down, circuit switched core networks must be upgraded to IMS Core to maintain voice calling on 4G networks. The analysts are now estimating that the IMS Core/Voice Core cumulative revenue (2025-2029) will increase by 9 percent compared to their previous forecast.

They now also estimate 70 MNOs have deployed 5G SA networks in 39 countries/territories. In 2025 alone, five new 5G SA networks were launched, including Orange in France, Romania, and Slovakia; Vodafone in Spain, and O2 in the Czech Republic. Regionally, Dell’Oro counts five networks in North America, 26 in Europe, seven in the Middle East and Africa, 13 in Northeast Asia, 13 in Southeast Asia, and six in Latin America.

Many MNOs already offer 5G SA for enterprises and fixed wireless access, but have not yet opened the 5G SA network to consumers; however, they are expected to do so soon. They include MNOs such as Bouygues Telecom, O2 Telefónica, and SFR in France, Bharti Airtel in India, 3 in Ireland, Sunrise in Switzerland, and AT&T and Verizon in the US.

Sparkle, Algérie Télécom sign subsea cable MoU to link Italy and Algeria

The deal will see the international infrastructure company offer a clutch of value-added services on top of dedicated connectivity for Algeria

Sparkle, Italy’s leading provider of international telecom infrastructure, and Algérie Télécom signed a Memorandum of Understanding (MoU) to develop a new subsea cable linking Italy and Algeria. Algérie Télécom is the country’s largest provider of telecoms services including fixed, internet access and enterprise solutions. The subsea cable is designed to help Algeria’s digital transformation. 

The plan is that in addition to connectivity, the deal will see Sparkle provide value-added services like cybersecurity and cloud computing, technical support for data centre development, training across key technical topics as well as a point of presence in Europe fully dedicated to Algérie Télécom.

“This agreement marks a significant step in strengthening digital ties between Europe and North Africa,” according to Enrico Bagnasco, CEO of Sparkle (pictured). “We are proud to contribute to Algeria’s digital future by delivering modern infrastructure as well as innovative and secure solutions for fast and resilient international connectivity.”

“The strategic partnership with Sparkle confirms the long-standing relationship between our two companies and reflects our shared commitment to innovation and excellence,” said Adel Bentoumi, CEO of Algérie Télécom. “We believe that this project will play a key role in diversifying our international routes and in meeting the increasing needs of our customers across Algeria.”

The MoU was agreed at the Algeria Business Forum held this week in Rome. The forum aims to strengthen bilateral cooperation between the two countries in strategic sectors such as energy, innovation, education, agriculture and culture.

It forms part of the Mattei Plan for Africa, through which Italy seeks to build balanced partnerships based on mutual respect and shared benefits.

Nokia chops 2025 operating profit guidance


The global economy’s death by a thousand tariffs continues and Nokia hit by a double whammy, by virtue of the resulting weaker dollar

Nokia has cut its 2025 profit forecast by up to €310 million, blaming the shortfall on currency headwinds from the weaker USD and tariffs. The largest headwind is currency fluctuations (particularly the weaker USD), an approximately  €230 million negative impact (€140 million operationally and €90 million from non-cash venture fund currency revaluations). Also, the current tariff landscape is expected to impact full year operating profit by €50 million to €80 million.  

While the current US administration believed that tariffs were traditionally thought to strengthen currencies via improved trade balances, they have instead sparked global risk aversion, driving capital away from the US dollar, leading it to fall.

The effects can be seen around the world with the Bank of Korea’s Composite Business Sentiment Index (CBSI) for June falling to 90.2, revealing growing pessimism among businesses. ING Think attributed these trends to, among other things, uncertain US trade policies, which heavily impact South Korea’s export-driven industries. 
  

As we recently reported, component supply data from TrendForce describes Q3 as a “subdued peak season” and noted that smartphone demand remains uncertain for the rest of the year. Despite ongoing Chinese subsidies, consumer demand appears mostly fulfilled, and the boost from US tariffs has faded. As a result, demand for key smartphone memory components like eMMC is weak – indicating limited sales ahead, driven only by normal replacement cycles.

Outside our control 

Nokia is just the latest to be struck by the force majeure economy the world it trying to navigate. The company said its underlying business performed as expected through the first half, however, considering currency and tariff headwinds which are outside its control and have transpired since its Q1 results, it feels it is “prudent at this point to lower its operating profit outlook range”. 

Nokia therefore lowered its comparable operating profit outlook range to €1.6 billion to €2.1 billion (previously €1.9 billion to €2.4 billion). Nokia’s guidance for free cash flow conversion from comparable operating profit remains 50% to 80%. Tellingly, its guidance is now based on a €:$ rate of 1.17, while the currency rate used in January was 1.04.

In the second quarter, based on its preliminary financials, Nokia expects to report net sales of approximately €4.55 billion and comparable operating profit of €300 million. The Q2 comparable operating profit includes a negative impact from its venture funds of €50 million primarily related to currency. Nokia will release its second quarter and half year 2025 financial results on 24 July.  

Beyond rewards: loyalty reimagined for the modern customer

Partner content: According to a recent Boston Consulting Group study, European consumers use 9 loyalty programs on average, compared to 15 for US consumers

But why are usage levels lower than ever before, even though loyalty and reward programs are a part of our everyday lives?

A Sign of the Times: As customer base changes, so does their behavior

Let’s examine the structure of the majority of loyalty programs in use today. Conventional loyalty programs function independently, using a single app, card, and business. Customers are forced to manage multiple cards, apps, and accounts in order to redeem rewards, which fragments the experience.

Larger ecosystems with multiple business partners have been established by some companies, but because they are dominated by one company, the benefits are frequently uneven. Then come the typical annoyances: rigid rules, non-transferable points, and customer-penalising expiration dates. Customers are frequently pressured by these rules to make rushed decisions or to stop using the program completely.

Consumers who are searching for experiences and brands that align with their values and lifestyles are posing a challenge to loyalty programs that previously only focused on customer retention. As a result, consumers are switching to brands that more closely align with their beliefs.

Along with expecting meaningful rewards for their loyalty, often ones that fit their lifestyle rather than being associated with a particular brand, they also want to feel valued and understood. 

Customer expectations have increased as a result, with speed, convenience, quality, transparency, and trust now considered the new standard.

For businesses, things have also changed. Businesses are now competing globally rather than just locally as a result of lower entry barriers brought about by global economic shifts, the growth of e-commerce, and the emergence of digital platforms.

Opportunity to Build Differently

After the COVID-19 pandemic, the Portuguese Government, in collaboration with the European Union, implemented the Portuguese Recovery and Resilience Plan (PRR) to facilitate digital and green transformation initiatives, creating new avenues for innovation for companies like Celfocus.

As part of the Blockchain.pt PRR programme, one of the initiatives aims to enhance the competitiveness of local businesses while promoting digital literacy across society – bringing benefits to both consumers and enterprises. Celfocus has joined this initiative to help rethink the role of rewards in the digital economy, leveraging the advantages of blockchain technology together with Celfocus’s Omnichannel solution.

The Interconnectedness Paradigm

Celfocus created the RewardsHub,a Multi-Party Rewards Platform, marking a significant change in the way businesses handle client loyalty. Businesses no longer work alone; instead, they cooperate, build partnerships, and pool resources to provide partners and customers with a smooth, integrated experience. This strategy helps businesses grow and adjust to shifting market conditions while reducing costs and risk.

Customers, on the other hand, can gain the power of choice in a decentralised ecosystem where big and small businesses coexist.

Aligned with our commitment to interconnected thinking, Celfocus has partnered with NOVA School of Business & Economics (NOVA SBE) – a globally recognised Portuguese business school – to bring economic modelling expertise and scientific rigour to the platform’s development. This collaboration highlights the power of industry–academia partnerships in driving innovation. 


Everyone wins

A big part of the interconnectedness paradigm comes from a balanced ecosystem. Everyone should win. For businesses, the RewardsHub delivers compelling value:

  • Retention and Acquisition: Within the shared ecosystem, businesses both keep existing customers and gain new ones through partner networks. Each partner’s customer base becomes a potential market for the entire ecosystem.
  • Brand Awareness and Loyalty: By offering customers rewards and customised offers based on their habits, the platform enhances brands and fosters customer loyalty.
  • Operational Efficiency: The platform simplifies operations by automating point tracking, redemption, reconciliation, and traditional loyalty program procedures. Costs are reduced, and resources are freed up for innovation or business-as-usual.
  • “Making data actionable”: Businesses can make better decisions and improve marketing tactics, such as awarding more points during a particular time of day when there are typically fewer customers, by having access to aggregated customer data.


Customers also benefit from it:

  • One Experience: One central place manages all loyalty activities, eliminating the hassle of multiple cards or apps.
  • Greater Value: The platform maximises reward opportunities through multiple earning options, exclusive offers, and personalised rewards. Points can be transferred to friends and family or used across different products and services.
  • Transparency & Trust: Blockchain is mostly known for its association with cryptocurrency. Its second most known feature is its ability to ensure secure and transparent transactions while maintaining the integrity of the program.

Consider the following scenario: you are a member of TELCO, your CSP’s loyalty program.  Now consider that your CSP has subsidiaries all over the world. When your plane lands after your vacation overseas, you don’t receive the typical generic message:

“Welcome to [Country], here are your roaming charges”. You get something different. Something that feels personal:

Welcome! We’re glad to have you with us. As a loyal TELCO customer, check the app to see all the perks waiting for you during your trip. Enjoy your stay.

Notice the difference? It feels more personal – and most customers agree. They’re also taking advantage of the benefits more often, discovering and engaging with new partners on the platform they might not have explored otherwise. TELCO has evolved beyond connectivity; it’s now an integral part of the customer’s lifestyle.

Living Lab – put it to the test

Celfocus is now in the final stage of development and testing through a real-life pilot in the Municipality of Fundão, one of Portugal’s most innovative and entrepreneurial municipalities.

In Fundão, RewardsHub is empowering local businesses to compete on a global scale while strengthening the local economy through the creation of a vibrant ecosystem. This benefits citizens who choose to support local shops by making loyalty programmes accessible to both small businesses and everyday customers.

The platform equips businesses with digital marketing tools that would otherwise require significant investment. Meanwhile, customers can continue enjoying their favourite local cafés while earning points to spend at other nearby businesses – like the market known for the best Fundão cherries or the new bulk store everyone’s talking about, famous for its incredible spices. 

The future is now

We’re moving toward a future where loyalty isn’t just about points or perks. It’s about meaningful connections. Every interaction becomes a chance to create real value for both sides, and data isn’t just something collected and stored, it’s put to work to build stronger, more personal relationships between companies and their customers.

Celfocus RewardsHub embodies this new paradigm. Powered by blockchain, advanced analytics, Celfocus Omnichannel solution and a scalable architecture, we’re not just building a platform, we’re enabling CSPs to develop and expand while providing customers with the autonomy, openness, and customisation they desire.

About the author

Daniel Timóteo is Celfocus’s Digital Enterprise Offer Lead. He started working as a software engineer (specially CRM) for a Portuguese telco company in 2008, when MMS was still cool. He joined Celfocus in 2010, where he developed and managed several telcos projects in Asia, Africa, and Europe.

He was responsible for Celfocus Consumer IoT projects for one of the biggest telecom companies globally, which led him to develop a passion for automating everything at home. He became Director of Business Support Systems & Platform Engineering capability in 2022 to help Celfocus build the talent pool and skill set necessary to tackle the most difficult projects in these two domains.

Daniel is currently leading the offer of a Digital Enterprise (B2B) Business Unit and is the Program Manager for two PRR (Portuguese Recovery and Resilience Plan) projects: the Carbon Emissions Platform and the Loyalty Platform.

daniel.timoteo@celfocus.com

Ofcom consults on Inmarsat, Space Norway’s earth station application

The two are preparing to connect the Arctic with non-geostationary orbiting (NGSO) satellite payloads, GX10A and 10B – UK regulator mulls giving them Ka band access in UK

UK regulator Ofcom has opened a consultation around its proposal to grant an NGSO network licence to Inmarsat Global Limited (IGL) and Space Norway for the GX10 NGSO system operating in the Ka band. The GX10A and 10B multi-beam, high-throughput payloads are designed to operate in Highly Elliptical Orbit (HEO), and are expected to extend Viasat’s – Inmarsat’s owner – high-speed global network across the Arctic to answer growing customer demand in the region.

To deliver this Inmarsat partnered Space Norway and its subsidiary Space Norway HEOSAT as part of the Arctic Satellite Broadband Mission. Once in service, the GX10 NGSO system is expected to provide the world’s first commercial broadband network dedicated to the Arctic and are designed to be compatible with current and future GX terminals.

Ka band within the UK?

Ofcom’s licence, if granted, will allow the two to operate user terminals in the Ka band within the UK, enabling the provision of satellite communications services—including broadband—to commercial, government, aeronautical, and maritime customers. These terminals would connect to the two NGSO satellites, which are intended to extend coverage of the existing Global Xpress (GX) geostationary network into the polar region while also offering additional, intermittent coverage over most of the UK for 80–90 percent of the time. 

Space Norway owns and operates the ASBM-1 and ASBM-2 satellites and the two Ka band payloads (GX10A and GX10B) on board those satellites. The company leases capacity made available over those payloads to IGL on an exclusive basis to provide Ka band services (using 29.5-30 GHz ) to customers within the coverage of the satellites, including the UK – particularly above 65° North, including Arctic zones. 

This proposed NGSO licence would also authorise Inmarsat (in collaboration with Space Norway) to operate gateway earth stations facilitating broadband and communications traffic from GX‑10 constellations over the Arctic and northern parts of the UK – where polar orbital passes occur. 

Multi-orbit path

In contrast to Inmarsat’s primarily polar-targeted footprint, Space Norway’s broader NGSO relationships with Telesat Lightspeed and Starlink focus on covering EMEA and maritime routes via a multi-orbit strategy. So this Inmarsat tie-up seems intended to fill geographic gaps — particularly polar connectivity — within an Orbit‑agnostic model where Arctic connectivity is important to governments, maritime users, and defence entities.

Space Norway is building a multi-orbit satellite services platform, integrating geostationary (GEO), highly elliptical orbit (HEO), and now low Earth orbit (LEO) capabilities. In June 2025, it officially became an authorised reseller of Starlink, enabling low‑latency maritime and land-based connectivity across EMEA via the Starlink constellation. 

Earlier, in March 2025, it signed a term sheet with Telesat to incorporate that company’s Lightspeed LEO capacity pool – featuring multi‑Gbps rates, inter-satellite links, private landing-station support, zero‑trust cybersecurity architecture and service-level agreements targeting defence and enterprise clients, especially in the Arctic and EMEA regions.

This dovetails with Space Norway’s existing infrastructure: it operates GEO assets (like the upcoming THOR 8 satellite), HEO assets as part of its Arctic Satellite Broadband Mission, and ground services via Kongsberg-owned KSAT facilities such as SvalSat. The company is busy positioning itself as an orbit‑agnostic, multi‑orbit connector, capable of meeting diverse needs from sovereign/government clients requiring closed‑network predictability, to maritime and commercial enterprise sectors demanding low‑latency terrestrial‑like service.

Orbit agnostic

In a recent interview with Via Satellite, CEO Morten Tengs emphasised that Space Norway is building a truly orbit‑agnostic platform, integrating GEO (via THOR 8), HEO (Arctic Satellite Broadband Mission), and now LEO via the Telesat Lightspeed agreement. He stressed that LEO is not a sideline, but a key component of a multi-orbit, multi-mission offering, particularly targeted at government, defence, maritime, and enterprise clients in polar and EMEA markets.

Tengs also noted that Space Norway is open to partnering with multiple LEO constellations, not just Telesat, though he praised Lightspeed’s network architecture. Additionally, the CEO explained that GEO (THOR 8) remains relevant for use cases demanding fully controlled, closed networks – such as government or mission-critical services – highlighting why a multi-orbit strategy is essential.

The consultation closes on 2 September 2025. 

Q/V band for GSO and NGSO gateways

In a separate but related move, Ofcom is now also consulting on authorising parts of Q/V band for use by GSO and NGSO gateways. This follows its recent consultation on proposals to grant temporary licences to Starlink to use E band (71-76GHz and 81-86GHz) for NGSO gateways at three sites. The regulator is proposing to extend access for satellite gateway use into these bands under its “Satellite (Permanent Earth Station)” licence (for GSO gateways) and “Satellite (non-geostationary earth station)” licence (for NGSO gateways).

Specifically, the following frequencies for use by satellite gateways operating with GSO satellites and NGSO constellations would be made available in GSO: uplink 47.2-50.2 GHz, 50.4-52.4 GHz; downlink 37.5-42.5 GHz and in NGSO: uplink 47.2-50.2 GHz, 50.4-51.4 GHz2 ; downlink 37.5-42.5 GHz. 

Ofcom is proposing to allow gateway deployments in ‘low density areas,’ which comprise nearly all of the UK landmass outside of the 68 major towns and cities identified as ‘high density areas’ for the upcoming 40 GHz award.

This consultation closes on 30 September 2025. 

TIM offers all consumer customers free access to AI services for a year

The access to the Perplexity Pro service is worth €20 a month – it will be interesting to see the take-up rate and what happens once the year is up

In a bid to position itself as a leader in AI, Italy’s TIM is offering free access to an AI service, Perplexity Pro, for one year “that improves their daily lives”. Through its agreement with Perplexity, TIM is the first operator in Italy to offer its fixed and mobile consumer customers one year’s free access to the service which the operator says is one of the world’s most advanced GenAI platforms.

An AI assistant for everyday life

Perplexity Pro allows unlimited searches, interactive voice sessions, analysis and synthesis of documents, content creation, images, web pages, presentations, interactive data dashboards and automatic management of the most suitable AI templates for each type of request. Its responses arrive in seconds, always citing the sources.

Perplexity Pro chooses from the main large language models according to the customer’s request. In addition to Perplexity’s own model, it can also use the main established LLMs such as ChatGPT, Claude, Gemini, and R1 1776 (the US’ version of Deepseek R1).

TIM customers can access this AI service via the Perplexity platform, which is worth €20 a month – the entry-level subscription at Perplexity Pro. Whether the freebie is to help TIM attract and retain customers or convert them to paying customers once they embedded the use of Perplexity Pro into their daily lives remains to be seen – presumably on some kind of revenue share.

Cementing tech leadership?

Either way, it will be interesting to watch how this unfolds and regardless, TIM claims this move cements its role in technological innovation, bringing AI within everyone’s reach and is another step towards the completion of its Customer Platform development strategy. The approach is through agreements with top-tier partners and open innovation, to make AI an integral part of everyday life

To activate the service, the operator’s consumer customers log into TIM Party – TIM’s loyalty programme – from the app or website and request a free code to use on the Perplexity platform.

“We are excited to collaborate with TIM to bring Perplexity Pro to users in Italy”, said Ryan Foutty, VP of business at Perplexity“Accurate, trustworthy answers are essential to millions of decisions that Italians make every day, and TIM’s strengths as a technical pioneer make it a natural partner to provide valuable technology that improves daily life for all customers.”

Andrea Rossini, Chief Consumer, Small & Medium & Mobile Wholesale Market Officer at TIM, added, “We’re proud to be the first operator in Italy to offer an advanced AI assistant like Perplexity Pro, which represents a concrete step toward a new digital relationship model. For us, innovation means simplifying and improving the everyday experience, with useful, reliable, and accessible solutions.”

e& partners 4iG Group on cross-border digital infrastructure

The UAE telecom operator signs MoU for submarine cable projects linking Middle East, North Africa and Europe

Emirati-based technology group e& has signed a strategic MoU with Hungarian telecommunications company 4iG Group to collaborate on submarine data connectivity projects aimed at strengthening digital links between the Middle East, North Africa, and Europe. The partnership was announced during the official visit of UAE president Sheikh Mohamed bin Zayed Al Nahyan to Hungary.

4iG Group also signed a separate MoU with Mubadala Investment Company, one of the world’s largest sovereign investment firms managing over$330 billion globally. This agreement focuses on potential capital market, acquisition, and investment collaborations in Hungary and the Western Balkans, indicating that the UAE’s strategic interest in the region extends beyond telecom infrastructure into broader economic cooperation.

Partnership combines

The telecom partnership combines e&’s connectivity and ICT solutions with 4iG Group’s strategic position in the Western Balkans and deep experience in building terrestrial transit infrastructure. The collaboration focuses on the planning, implementation, and operation of subsea cable systems that the two say will enhance cross-regional digital connectivity. The partnership potentially also creates new transit routes for international data traffic and enhancing regional connectivity resilience.

The 4iG partnership builds on e&’s broader Eastern European expansion strategy. In September 2024, the European Commission approved e&’s acquisition of a controlling stake in PPF Telecom Group’s operations in Bulgaria, Hungary, Serbia and Slovakia, with the UAE operator completing the purchase of 50% plus one share in October 2024.

“Our strategic partnership with 4iG is a significant step towards developing cross-regional digital infrastructure that fosters economic growth, resilience, and innovation,” said e& Group CEO Hatem Dowidar.

“We believe that well-planned developments and continuously evolving infrastructure create new opportunities for people. This partnership lays the foundation for future projects that connect continents, strengthen communities, and contribute to digital progress in Europe, the Middle East and Africa,” he added.

Data centre for Albania

The preliminary agreement includes plans to jointly develop a data centre facility in Albania specifically designed to support subsea data traffic. Beyond the submarine cable and data centre initiatives, the MoU encompasses potential digital infrastructure projects in Hungary through e& and PPF Telecom, along with broader telecommunications and digital infrastructure collaborations across the region.

4iG Group, which operates as one of the key telecommunications and IT groups in Hungary and the Western Balkans, brings significant regional expertise to the partnership. “These partnerships support 4iG Group’s domestic and international growth strategy and may open up new opportunities in the Hungarian, Middle Eastern, North African, and the Western Balkans markets,” said 4iG Group chairman Gellért Jászai. “We aim to create long-term value in technological innovation, infrastructure, and investment cooperation with global players.”

The partnership comes as 4iG has significantly expanded its telecommunications footprint in recent years. In January 2022, the company completed its €625 million acquisition of Digi’s Hungarian operations, including Digi Hungary and its subsidiaries Invitel and ITV, from Romanian consortium RCS & RDS.

Defence ties

4iG Space and Defence Technologies, another arm of the 4iG Group, separately signed three separate Memoranda of Understanding with EDGE Group, a defence and advanced technology company. These agreements focus on joint development, localisation, and marketing of several defence systems including EDGE’s SKYKNIGHT air defence missile system, SHADOW line of loitering munitions, and VEGA and ORION unmanned air traffic control systems.

The defence partnership aims to combine both companies’ technological capabilities to develop NATO-compatible solutions that are competitive and export-ready for international markets. Under the agreements, EDGE will leverage its presence in African markets while 4iG Space and Defence Technologies will focus on Central and Eastern European markets, creating a comprehensive approach that spans both the telecommunications and defence sectors. The collaboration enables both companies to explore joint ventures and technology transfer opportunities.

Telia looks to exit Latvian market for fixed and mobile services

Has signed MoU with Republic of Latvia, Latvenergo and LVRTC to sell all of its shares in fixed network operator Tet and mobile network operator LMT

Telia Company has signed a memorandum of understanding (MoU) with the Republic of Latvia, Latvenergo and LVRTC to sell all of its shares in fixed network operator Tet and mobile network operator LMT. The parties aim to sign a final agreement by the end of 2025, and are targeting a closing of the transaction in the first half of 2026.

Patrik Hofbauer, Telia Company President and CEO, “We are pleased to have reached a common view on the best way forward for these great Latvian companies. We have agreed to proceed towards the intended transaction, where our offer to divest our shares reflects a fair market value of Tet and LMT.

“The complex holding structure of Tet and LMT has slowed value creation. This MoU is therefore a milestone for us and for Tet and LMT, who will now have the possibility to develop further under a new ownership model, in turn benefitting their customers and all stakeholders.”

Telia’s proportionate ownership in the two companies is 49% of the shares in Tet and 60.3% of the shares in LMT.

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