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Navigating the challenges of the telco to techco transition

admin and Ahmed Soliman
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Navigating the challenges of the telco to techco transition

Partner content: This metamorphosis from one to the other of these two distinct business models is a complex undertaking

In the ever-evolving telecommunications industry landscape, traditional telecommunications companies (telcos) are embarking on a transformative journey, seeking to redefine themselves as technology companies (techcos), specifically as technology services companies.

This metamorphosis has its challenges, as the fundamental characteristics of these two distinct businesses present hurdles that demand careful navigation. Many telcos are pursuing this transition by tapping into the rich technology ecosystem.

However, a common misconception exists that the shift can be achieved solely through acquiring tech talent or signing partnerships with technology giants to develop and offer new technology services. In this article, we delve into the intricacies of this transformation, emphasising the critical importance of addressing core business structures and cultural nuances.

While the allure of acquiring tech specialists is undeniable, true transformation requires a holistic approach beyond the surface level.

Core business model

A crucial element for any business is how it employs its assets to generate revenue. A brief analysis of the financial statements can provide valuable insights. Let’s start with the balance sheet. A company’s balance sheet is a financial statement that provides a snapshot of its financial position at a specific time. The balance sheet comprises three main sections: assets, liabilities, and shareholders’ equity. Here’s a brief overview of the primary two to consider for our argument:

Assets:

• Current assets represent resources anticipated to be converted into cash or utilized within a year, encompassing cash, accounts receivable, and inventory.

• Non-current assets are expected to provide benefits over multiple years, including property, plant, equipment, and investments in long-term securities.

Liabilities:

  • Current liabilities, like accounts payable, short-term debt, and accrued expenses, must be settled within one year.
  • Non-current liabilities are long-term obligations, such as long-term debt, pension, and deferred tax liabilities.

The balance sheet follows the fundamental equation: Assets = Liabilities + Shareholders’ Equity. It reflects the company’s financial health, liquidity, and ability to meet short-term and long-term obligations.

How telcos’ balance sheets differ

The balance sheet of a telecommunications (telco) company and a technology (tech) company may have some similarities, but they also exhibit notable differences due to the nature of their businesses. Here are vital distinctions:

Assets composition

  • Telco: Telcos typically invest substantially in physical infrastructure, such as networks, cell towers, and data centres. These assets are categorized as non-current assets.
  • Techco: Tech companies often focus on intellectual property, software, and research and development. Their assets may include patents, copyrights, and significant investments in intangible assets.

Liabilities

  • Telco: Telcos may have significant long-term debt due to the substantial capital expenditures required for infrastructure development. This debt is usually considered a non-current liability.
  • Techco: Tech companies may have lower long-term debt levels if their business relies less on physical infrastructure. Instead, they might have liabilities related to research and development or software development costs.

Working capital

  • Telco: Telcos often have higher working capital needs due to the ongoing maintenance and expansion of their physical networks, which can require substantial short-term investments.
  • Techco: Tech companies may have lower working capital needs as their business models often revolve around software development and intellectual property, which may require less ongoing capital expenditure.

Revenue streams

  • Telco: Telcos derive a significant portion of their revenue from subscription services like mobile plans, internet connectivity, and landline services.
  • Techco: Tech companies may generate revenue from a diverse range of sources, including software licensing, advertising, e-commerce, and hardware sales.

Risk profile

  • Telco: Telcos often face regulatory and competitive risks due to the highly regulated nature of the telecommunications industry and the competition among providers.
  • Techco: Tech companies may face rapidly changing market dynamics, technological disruptions, and intellectual property challenges.

In summary, while telco and tech companies have balance sheets that follow the same accounting principles, their asset compositions, liabilities, working capital needs, revenue sources, and risk profiles can differ significantly due to the distinct nature of their businesses.

Vodafone Group’s Return on Assets
Source: Finbox

Accenture’s Return on Assets
Source: Finbox

The cultural dynamics

Let’s recall that most telcos traditionally functioned in monopolistic or oligopolistic markets at worst, shaping culture and perception in and among customers that differ from those forged in fiercely competitive markets for technology services companies. This culture influences every facet of the business, from the business model to the types of talent the company attracts. Here are some fundamental cultural differences:

Innovation focus

  • Telco: While also valuing innovation, telcos may have a more regulated and traditional approach to product development due to the need for network reliability and compliance with industry standards.
  • Techcos prioritise innovation and rapid product development, fostering an environment where workers are encouraged to take risks, experiment with new ideas, and embrace a culture of continuous improvement.

Hierarchy and bureaucracy

  • Telco: Telcos may have more hierarchical structures and bureaucratic processes, given their legacy and regulatory requirements. Decision-making can be slower due to thorough planning and compliance.
  • Techco: Tech companies tend to have flatter organisational structures focusing on agility. Decision-making can be decentralised, allowing employees at various levels to contribute ideas and make decisions more quickly.

Work environment

  • Telco: Telcos may have more traditional office-based work environments, varying depending on the specific company and its location.
  • Techco: Tech companies often offer more flexible work environments, including remote work options and flexible schedules, to attract and retain top tech talent.

Talent and skills

  • Telco: Telcos require a mix of technical and operational expertise, including network engineers and customer service professionals. They may also have a strong focus on compliance and regulatory knowledge.
  • Techco: Tech companies attract a diverse range of talent, including software developers, data scientists, and engineers. They highly value technical skills, creativity, and problem-solving abilities.

Customer-centricity

  • Telco: Telcos often prioritise customer service and reliability as their core values, given that customers rely on their services for communication and connectivity.
  • Techco: Tech companies may prioritise user experience and customer feedback but can strongly emphasise rapid growth and market disruption.

Regulatory compliance

  • Telco: Telcos operate in a heavily regulated environment, so compliance with industry regulations and government policies is a fundamental aspect of their culture.
  • Techco: While tech companies must also comply with various regulations, they may have more freedom to disrupt traditional markets and experiment with new technologies.

It’s important to note that these are generalisations, and the culture within individual telco and tech companies can vary widely. Some telco companies may adopt a more tech-oriented culture, especially if they diversify their services into digital technology. In contrast, some tech companies may have a more conservative approach to certain aspects of their business. Culture is shaped by leadership, industry dynamics, and each organisation’s specific values and goals.

Charting the complex path

The blurring lines between telcos and tech companies signify a broader industry trend where adaptability and technological prowess are central to sustained relevance. As telcos face challenges of the complexities of this metamorphosis, the imperative lies in embracing change holistically, incorporating technological advancements, fostering a culture of innovation, and strategically addressing business fundamentals. The success of telco to techco transformation hinges on navigating these challenges while capitalizing on opportunities presented by a tech-centric future.

In conclusion, the journey from being a traditional telco to embracing the identity of a techco is a multifaceted transformation marked by challenges, strategic shifts, and cultural evolution. As telcos navigate this transition, they must redefine their service offerings, operational structures, and core cultural values. Integrating technology, innovation, and agility becomes paramount in fostering success in an increasingly dynamic business landscape.

About Intellias

Intellias is a global technology partner to Fortune 500 enterprises and top-tier organizations, helping them accelerate their pace of sustainable digitalization. Intellias empowers businesses operating in Europe and the US, as well as the MENA and APAC regions, to embrace innovation at scale. The company has been featured in the Global Outsourcing 100 list by IAOP, recognized by Inc. 5000, and acknowledged in Forbes and the GSA UK Awards. With two decades of experience, Intellias is geared towards ensuring the sustained success of clients on their value journey. For more information, visit www.intellias.com.

Cloudcos dropping data egress fees is more marketing than true openness

Annie Turner
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Cloudcos dropping data egress fees is more marketing than true openness

The conditions AWS, Google and Azure attach to waiving the fees do little to make data portability free or simple

Microsoft has followed rivals AWS and Google in deciding it will no longer charge customers an egress fee for removing their data from its Azure cloud. AWS and Google announced their decisions earlier this year, ahead of the European Data Act

coming into force in September next year.

One of the aims of the Act is to remove inhibitors to competition, including attempts by vendors to lock customers in, such as by charging them to remove their data.

Not free data portability

However, cancelling egress fees does not mean free or simple data portability. Google announced the end of data egress fees in January, but they are only waived when customers stop using Google Cloud and move their data elsewhere.

AWS has allowed the free transfer of 100GB of data since 2021, which the firm claims is more than enough for 90% of its customers. If a customer needs more for a migration, things get complicated. AWS provides data transfer out (DTO) credits but customers have to contact support to apply for them first.

AWS says this is because it cannot tell “if the data transferred out to the internet is a normal part of your business or a one-time transfer as part of a switch to another cloud provider or on-premise.” If approved, AWS applies DTO credits, customers then have 60 days to complete the move. Repeated migration requests will face “additional scrutiny”.

Fees waived for quitters

Now with Azure, according to this blog egress fees are waived if customers take their data out of the Azure infrastructure via the internet to switch to another cloud provider or an on-premises data centre.

Azure is only waiving fees for customers who are ceasing to use its cloud. It too already offers the first 100GB/month of egressed data for free to all customers in all Azure regions around the world but customers have to contact support to claim credits etc.

In other words, as this blog by Forrester explains, the overall message is that egress fees are waived on permanently exiting data only, not for repeated comings and goings such as for regular communications between clouds and on-prem, recovery or migration.

The Azure blog ends saying, “The exemption on data transfer out to the internet fees also aligns with the European Data Act and is accessible to all Azure customers globally and from any Azure region.”

Letter not the spirit

Which feels a lot more like it is sticking to the letter than the spirit of the proposed Act and focus on egress fees in isolation is missing the target.

The EU is not the only party scrutinising the practices of cloudcos regarding anti-competitive behaviour.

Last October, the UK’s Competition and Markets Authority (CMA) announced it is to investigate egress fees as part of a wider probe into the big cloudcos’ practices after a referral by the telecoms watchdog Oftel. The CMA is looking into practices that restrict or discourage customers from switching cloud providers or adopting a multi-cloud approach.

The CMA expects its investigation will be complete by April 2025.

Orange gets the final green light to acquire MásMóvil 

Annie Turner
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Orange gets the final green light to acquire MásMóvil 

Spain’s government has authorised the merger; last month the European Union gave its consent with remedies

Orange has cleared the final hurdle to merging its Spanish opco with MásMóvil when the Spanish government approved the deal this week. The transaction values the combined entity at about €18.6 billion and is expected to complete by the end of this quarter.

The merger was announced in July 2022. Orange and Masmovil are Spain’s second and fourth largest telecom operators respectively and together will be larger than former state monopoly Telefonica.

Orange has more than 17.1 million mobile customers and 4.6 million fixed customers.

MásMóvil Group’s fixed network covers 18 million homes with ADSL and over 26.8 million with fibre. Its 4G mobile network covers 98.5% of Spain’s population and the Group has over 14.7 million mobile customers.

After the merger, the combined entity will become Spain’s biggest operator with more than 30 million mobile customers, according to José Luis Escrivá, Spain’s Minister of Digital Transformation and Civil Service, reported by Reuters. 

The Minister was also quoted saying at the news conference that there is an industrial plan in place for the combined entity that includes hefty investments in fixed and mobile infrastructure.

In February the European Union approved the merger, but insisted on remedies to protect competition in the Spanish market.

Airtel Africa mulls IPO for mobile money unit after currency crashes

Annie Turner
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Airtel Africa mulls IPO for mobile money unit after currency crashes

Airtel Money is the fastest growing part of the group which saw its profits drop 99.6% in February due to currency devaluations

Airtel Africa is considering an initial public offering of its mobile money arm that could value it at more than $4 billion, according to Bloomberg [subscription needed].

The operator group is experiencing extreme turbulence. Last month it came very close to making a loss as its net profit plummeted by 99.6%. This was primarily down to Nigeria’s decision to unpeg the naira from the US dollar, sending the naira into freefall.

Airtel’s business in Nigeria posted a loss after tax of N137 billion (about €79 million) for the 2023 financial year, despite its service revenue increasing 22.4% to N2.5 trillion.

Until the naira was unhitched from the dollar last summer, Nigeria was Airtel Africa’s most profitable market.

Currency problems were added to by Malawi devaluing the Kwacha in November.

Fastest growing unit

The mobile money business is the fastest growing part of Airtel. In the nine months to the end of last December, its customer base grew by 19.5% to 37.5 million. Revenues grew even faster, by almost 32% in constant currency terms in the same period.

The report says the operator could float the unit this year and is already in discussions with potential advisors. It is apparently also looking at stock exchanges from London to mainland Europe, the UEA and beyond for the flotation.

Perhaps investor’s in the mobile money service are keen to salvage their investment: in 2021 from Mastercard to the tune of $100 million and $200 million from TPG.

Tele2 uses 5G connected drones to deliver food 

Simon Dux
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Tele2 uses 5G connected drones to deliver food 

Drones are becoming one of those killer 5G apps we were all promised a decade ago

Tele2 has teamed up with foodora and Aerit to launch food deliveries using IoT and 5G connected drones. The deliveries will be made wherever possible to the customers’ property or garden and lowered with a cable from the drone, with the first deliveries taking place already in the spring on Värmdö, outside Stockholm. 

The operator has been working with Nokia and AirForestry to use high-capacity, 6m-wide drones for forest thinning from the air. These are controlled by a 5G private wireless network and if the pilot is successful throughout this year, it will be deployed into commercial forestry operations. The drones are controlled from a portable shed with 5G antennas that are positioned to cover the area to be thinned. The mobile solution allows it to be easily set up where needed and where there is no public coverage or any other alternative technologies.   

Tele2’s 5G will support foodora Air’s fleet of electric drones that will provide the food delivery service from several restaurants on Värmdö, outside Stockholm. The operator will provide continuous connectivity for the drones based on 5G IoT. Drones require both short response times and the ability to send and receive large amounts of data to handle deliveries safely, supported by 5G. 

Aerit has developed advanced drones integrated into foodora’s technology platform to create an efficient delivery experience.  Deliveries will commence in May on Värmdö and food can be ordered through the foodora app. The goal is to expand to more areas in Sweden so that more locations can have access to the same service available in major cities. 

The delivery flights, conducted beyond visual line of sight (BVLOS), provide on-demand access to goods and services for approved households within Aerit’s 100-square-kilometre coverage area. 

This marks a new era in how people receive deliveries, and we believe we can see more applications in other industries,” said Tele2 head of business affairs Stefan Trampus. “The partnership with foodora is a perfect example of how we can use our 5G connectivity and expertise to drive future delivery services in a simple, sustainable, and smart way, while providing customers with an extraordinary experience.” 

Greener option than alternatives 

The drones have a range of 21km and emit 2 grams of carbon dioxide per kilometre, which can be compared to traditional gasoline or diesel-powered delivery vehicles that emit 143 and 110 grams of carbon dioxide per kilometre, respectively. The maximum delivery range is 12km and the payload is 4kg. Aerit’s Nimbi drones also feature a proprietary winching system that allows for both package pick-up and drop-off without the need for supporting infrastructure. 

“Technology and connectivity have the potential to break many of the limitations that currently exist in rural areas, where access to various services and products has decreased in line with rapid urbanisation, added Trampus. 

“We are proud to be the first in Europe to launch real drone deliveries, and we are excited to have Tele2 and Aerit as partners on this exciting journey. Fast home deliveries are a democratic issue, in my opinion. Regardless of where you are in the country, it should be possible to quickly get what you need, such as medicines or groceries. It should not only be available to people who have chosen to settle in big cities,” said foodora operations director Daniel Gustafsson Raba. 

“We are thrilled to join forces with foodora and Tele2 to accelerate the adoption of drone delivery across Europe. Today’s announcement means our mission, to provide emission slashing access to goods and services by leveraging our cutting-edge drone courier networks, takes a leap into the future,” said Aerit CEO Alexander Perrien. “Drone delivery is here, and this partnership will provide the foundation for Aerit to scale at speed.” 

Telecom equipment revenues tanked in 2023 – Dell’Oro 

Simon Dux
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Telecom equipment revenues tanked in 2023 – Dell’Oro 

2024 is predicted to be less bad, while the contrast with the data centre equipment market is striking

Two recent reports by Dell’Oro demonstrate the diverging trajectories of the telecoms equipment and data centre equipment markets. The market analysts said that after five consecutive years of growth and stable trends in 1H23, the pendulum swung rapidly towards the negative in the second half of the year.

Their preliminary findings suggest that worldwide telecom equipment revenues across the six telecom programmes they track – Broadband Access, Microwave & Optical Transport, Mobile Core Network (MCN), Radio Access Network (RAN), and SP Router & Switch – declined 5% year-over-year (YoY) for the full year 2023, performing worse than expected.

This week Dell’Oro also revealed that the Data Centre Physical Infrastructure (DCPI) revenue growth maintained double-digit year-over-year (YoY) growth despite continuing to decelerate in 4Q 2023. This capped off a record year of 16 percent revenue growth. There is an irony there for telcos and telco equipment manufacturers (TEMs) which bailed from the data segment because they thought it was being commoditised.

On the TEM front, author and VP RAN and telecom Stefan Pongratz, points the finger at glacial 5G SA rollouts coupled with advanced 5G markets with higher 5G population causing steep declines in wireless-based investments. This capex deceleration was not confined to the RAN and MCN segments. Following a couple of years of robust PON investments, operators curtailed their home broadband capex as well. “This reduction was more than enough to offset positive developments with optical transport and SP routers,” he said.

The least surprising news was that North America subsided faster than expected. “Initial readings show that the aggregate telecom equipment market dropped by roughly a fifth in the North America region, underpinned by weak activity in both RAN and Broadband Access,” said Pongratz. On the bright side, regional dynamics were more favourable outside of the US. Our assessment is that worldwide revenues excluding North America advanced in 2023, as positive developments in the Asia Pacific region were mostly sufficient to offset weaker growth across Europe.

Huawei leading the pack

And one big winner from this switch to non-US revenue has been Huawei despite efforts by the US government to limit its addressable market and access to the latest silicon. Huawei still maintains its position as the global telecom equipment leader and Dell’Oro believes its lead widened in 2023, in part because its limited exposure to the North America region was a benefit in 2023 on a relative basis.

Other supplier rankings were mostly unchanged; however, vendor revenue shares shifted slightly in 2023. Still, the overall concentration has not changed – the top 7 suppliers accounted for around 80% of the overall market.

Pongratz said market conditions were expected to remain challenging in 2024, though the decline is projected to be less severe than in 2023. The analyst team is collectively forecasting global telecom equipment revenues to contract between 0 to -5% in 2024. “Risks are broadly balanced,” he said. “In addition to currency fluctuations, economic uncertainty, and inventory normalization, there are multiple regions/technology segments that are operating in a non-steady state.”

DC market booming even before AI impacts fully

In contrast to struggling TEMs, Dell’Oro research director Lucas Beran said that after covering the DCPI market for a decade, 2023 marked the highest year of revenue growth he’d observed. “This growth was primarily the result of vendors fulfilling pandemic induced backlogs delayed by supply chain constraints, with a marginal contribution from sales linked to AI workloads.” He pointed out that as DCs take 18-24 months to be built, given all the commitments to AI by, frankly everybody, we’re not even seeing that impact appearing until the second half of 2024

“In my nearly decade-long coverage of the DCPI market, 2023 marked the highest year of revenue growth I’ve observed. This growth was primarily the result of vendors fulfilling pandemic induced backlogs delayed by supply chain constraints, with a marginal contribution from sales linked to AI workloads,” said Lucas Beran, Research Director at Dell’Oro Group. “This is because building new data centre facilities generally takes 18 – 24 months, and new purpose-built facilities to support AI workloads are expected to start materializing in the second half of 2024.

“Evidence indicates that these deployments are nearing. Vertiv, the market share leader in data centre thermal management, secured its first quarter of notable liquid cooling deployments, which is correlated to higher TDP processors associated with accelerated computing,” he said. “This is only the beginning, as Vertiv plans to increase liquid cooling manufacturing capacity by 45 times in 2024.”

Demonstrating the emerging impact of AI on DCs, the bifurcation in hardware sales became more prominent in 4Q 2023, with product growth such as single-phase UPS, IT racks and rack power distribution notably slowing. Larger system sales, such as Three-phase UPS, Thermal Management and Facility Power Distribution grew at much faster rates.

BT’s MAUD adds bit-rate tech to boost streaming as demand soars

Annie Turner
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BT’s MAUD adds bit-rate tech to boost streaming as demand soars

Broadpeak’s multicast ABR technology should improve streaming quality and reliability, reduce content delivery costs and energy consumption

BT Group has teamed up with Broadpeak, the content delivery network (CDN) which provides video streaming solutions to content providers and pay-TV operators worldwide. BT will combine its own Multicast-Assisted Unicast Delivery (MAUD) with Broadpeak’s nanoCDN multicast adaptive bitrate (mABR).

Multicast magic

MAUD’s architecture takes mABR a step further by integrating it with content providers’ player applications so customers’ apps require no modification. The nanoCDN tech will be integrated into BT Group’s consumer smart hub routers so that individual streams can be grouped in the network core – multicast – before they are converted back to unicast at the edge for consumption by end-users’ applications on devices.

This approach means MAUD uses up to 50% less bandwidth during peak events, reducing energy consumption as fewer caches are needed. Simultaneously, more efficient delivery of live video also means broadcasters and video service providers give customers a better quality of experience.

The operator expects “a number of major broadcasters and content companies are expected to trial this breakthrough solution in 2024”. 

As seen on TV

BT announced MAUD in January, which it hailed as a breakthrough in TV technology which will be key to broadcasters being able to meet demand for live content.

Howard Watson, Chief Security and Networks Officer at BT Group, commented, “As more live events move online – or to online only – we are seeing a big increase in traffic. MAUD is a revolutionary development in how live video is delivered over the internet. It will improve video streaming experiences for viewers, delivering a more reliable, consistent picture and increases content delivery efficiency for broadcasters and video service providers.”

Jacques Le Mancq, CEO of Broadpeak, noted, “We are very excited to support BT Group with the launch of such an impressive live video streaming initiative. MAUD answers the critical requirements for enhanced video quality, simpler content delivery, and increased sustainability, making it a game changer for broadcasters and video service providers.”

Enhancing 5G business opportunities with automation and network slicing

Annie Turner and admin
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Enhancing 5G business opportunities with automation and network slicing

Partner content: How can automation help to meet the complexity, scalability, and agility requirements of dynamically orchestrated services?

The evolution of 5G offers operators and service providers significant revenue opportunities, particularly from new use cases for B2B and enterprise customers. Specifically, network slicing – which 5G Standalone (SA) makes commercially viable at scale – and private networking will support myriad B2B opportunities across multiple verticals. In fact, B2B revenues will be key to the success of 5G as a commercial service.

Slicing key to 5G SA B2B services

Network slicing is seen as key to unlocking the potential of 5G by providing multiple performance dimensions, with each slice optimised – in terms of capacity, xNF (Network Function) selection, and configuration – for separate use cases, such as low-latency, mission-critical autonomous vehicles or less demanding IoT applications (and everything in between). Slicing offers operators and service providers a palette on which they can deliver customised, differentiated services – on demand and on request.

That’s why, according to Rethink Research, the network slicing revenue opportunity for operators, enterprises, and their technology providers will grow from essentially nothing in 2022 to $23.6 billion by 2030. The Media & Entertainment sector currently leads the way, followed by Others (reflecting the broad diversity of use cases and applications), and Manufacturing.

However, while 5G brings significant opportunity, it also brings challenges. Concepts such as Software Defined Networking (SDN), Virtual Network Functions (VNF) and Mobile Edge Compute (MEC) add a whole new level of complexity over previous technology generations.

But it’s not just technological challenges that 5G brings. Competitive advantage in the 5G era will be dictated by the speed at which CSPs can design, create, launch, retire, provision, sell, assure, and commercialise innovative 5G offers. This requires substantial flexibility and agility. In turn, this demands the dynamic orchestration of network services throughout the lifecycle within a multi-vendor environment.

The only way that CSPs can match the complexity and performance requirements for dynamically orchestrated services and network slices, while achieving the flexibility and agility required from a strategic perspective, is through automation.

Handling complexity and agility

If we think about some of the verticals that CSPs and MNOs might serve in the 5G SA era, it quickly becomes clear that each vertical (and each application within each vertical) demands very different characteristics. For example, a smart port might have very different performance, capacity, and QoS requirements than a self-driving vehicle, an IoT estate, or an agricultural use case (to name just a few verticals).

Of course, this is where the strength of network slicing lies – providing tailored, dedicated resources to a single customer, application, or service, each with different requirements in terms of performance, availability, automation, flexibility, security, scalability, and so on. In turn each slice, or network service, will have different QoS, QoE, and KPI requirements.

Importantly, the customer does not care how the service is delivered. But what they do expect is speed, delivery, capacity, scalability, performance, optimised KPIs, robustness and resilience, and so on. When a customer requires a service, they expect to access it quickly, and expect it to provide the required performance and operational parameters. They also expect it to change to meet their own (and their customers) changing demands, without fuss and without human intervention. So how can providers achieve this?

Automation is imperative

Automation is the only option that enables service providers to instantiate, manage, orchestrate, and retire services and slices throughout the lifecycle accurately and at speed in a dynamic manner.

For example, IoT services offer a huge opportunity – according to Finances Online, there will be more than 25 billion connected IoT devices by 2030 (up from an estimated 14 billion today). CSPs and telcos are in a unique position to deliver new IoT services. But, the IoT environment is a complex web of interconnected devices.

Automation not only helps service providers to access the lucrative IoT market, but it is also imperative for orchestrating services throughout the lifecycle. Furthermore, it enables CSPs to add new services incrementally, or to adapt existing services according to changes in demand. In a further case, automation could help to integrate different IoT estates dynamically and with zero-touch – for example, as the result of IoT service provider M&A.

An alternative scenario might relate to the emerging B2B2X business model, whereby B2B services are delivered to any end user (the ‘X’), which could be customers, retailers, partners, suppliers, or any other entities, in any vertical.

This mix of ‘B’s adds value and enhances the offer to the customer base. So, a CSP might reach out to another service or content provider to build new business relationships and partnerships. In this case, automation could dynamically integrate partner offers into a broader service package – according to demand or for premium customers, for example – without disrupting the existing set.

Automation platform

Put simply, to monetise 5G requires automation throughout the technology stack to ensure that customer KPIs are met, to meet changing customer demands, and to enable service providers to offer a rich set of innovative, differentiated services, across multiple verticals within a multi-vendor environment.

We Are CORTEX offers a platform for automation of operational processes. Our platform provides the reusable tools and capabilities to automate anything – from orchestration to process management. In turn, it gives CSPs the flexibility and agility to build, manage, and use their own library of process fragments (reusable automation/function chains) to reduce time-to-market, improve efficiency, gain automation independence, and meet the demands of dynamic network slicing.

DOWNLOAD THE FULL WHITEPAPER TO DISCOVER MORE

We Are CORTEX are global leaders in advanced automation and orchestration. Established in 1999, and focused exclusively on the telecommunications sector, the experience, and unrivalled, purpose built capabilities make CORTEX the choice for some of the worlds largest operators. CORTEX help CSPs automate at scale, achieving strategic automation objectives, providing a commercial edge in a highly competitive world. 

UK altnets ask government for help as attacks on fibre infra rise

Annie Turner
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UK altnets ask government for help as attacks on fibre infra rise

New survey shows the cost of disruption to business’ connectivity is soaring

A group of alternative fibre network providers (altnets) has asked Michele Donelan, the UK Secretary of State for Science, Innovation and Technology (DSIT), for measures to counter attacks on fibre infrastructure.

The group, led by Ogi and Vorboss, has written to the DSIT, asking for greater police involvement and to consider stiffer sentences for those caught maliciously damaging network infrastructure. It is signed by execs from altnets plus the Chair Independent Networks Cooperative Association (INCA).

Soaring cost of disruption

According to the group, there has been a series attacks on fibre infrastructure around the country which disrupt public services and businesses as well as individuals’ daily lives, cutting off entire streets or communities or streets.

The altnets are of the opinion that the police should give greater priority to preventing attacks and apprehending those responsible, given the impact they have.

Beaming, an ISP commissioned a survey which found businesses lost over 50 million hours and £3.7 billion (up from £742 million in 2018. This is because that although the amount of time businesses lose due connectivity failures has fallen by 20% helped by the shift to full-fibre infrastructure, their reliance on digital infrastructure means the cost of disruptions to it has soared by 400%

Censuswide carried out the survey of 504 UK-based businesses leaders in January.

Types of attack

Vorboss, which provides fiber connections of up to 100Gbps for businesses in London, told The Register that attacks vary from cutting through cable in underground ducts to pouring petrol into access chambers and setting them alight.

It seems that the motive varies from vandalism, to a grudge against a specific provider or anti-5G activism rather than acts of sabotage by rival providers.

Examples of attacks include extensive damage by vandals to part of Netomnia’s new fibre network in Liverpool, although few subscribers suffered as a result. The altnet is investing £39 million in the area.

In January Ogi’s infrastructure at Pembroke Dock was attacked. Engineers had to rebuild parts of the new network covering 600m at several sites in the town, ISP Review reported.

Fibre and FWA are two fastest growing technologies in the OECD 

Simon Dux
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Fibre and FWA are two fastest growing technologies in the OECD 

OECD confirms fibre and fixed wireless are now dominating rollouts which will make the coming overbuild crunch potentially more painful for some service providers

The OECD’s latest broadband numbers show that fibre and fixed wireless access (FWA) have seen the strongest growth in fixed broadband technologies in three years. Given that the organisation’s numbers only cover up to the end of June 23, it reveals how quickly access technologies are changing and while some countries are busy overbuilding, others are being left behind in the rush.

Fibre subscriptions have increased by 56% between June 2020 to June 2023, and FWA subscriptions have increased by 64%. The United States (252%), Estonia (153%), Norway (139%) and Spain (118%) led this FWA growth. At the same time, DSL has declined 24%, now only representing 22% of total broadband connections.

Fibre, which has been the dominant technology since 2021, amounts to 41% of total fixed broadband subscriptions in June 2023. FWA still represents a more modest share of 3.7% of total fixed broadband subscriptions. Cable accounts for 30.5% of overall connections while satellite, which grew 11% over the last three years, still only represents 0.7% of fixed broadband subscribers. 

Fibre penetration strong 

Nine OECD countries have more than 70% of fibre connections over total broadband, with Korea, Japan, Iceland, Spain leading the way with the highest fibre penetration rates of 89%, 86%, 85% and 84%, respectively. The highest fibre growth rates are in Europe, with Austria and Belgium having growth rates of 75% and 73% over the last year, closely followed by Mexico with a growth in fibre of 68%. Two other Latin American countries are in the top seven: Costa Rica and Colombia with fibre growth rates of 42% and 34%, respectively. 

Meanwhile, mobile data usage per subscription grew substantially by 28% in one year passing from 10.GB to 13 GB per subscription per month in OECD countries. The amount of data consumed in countries vary greatly from 6GB to 46GB, with Latvia being the OECD leader.  

Mobile doing well as well  

Despite an already very high mobile broadband penetration in the OECD area, overall mobile subscriptions continued to grow by 4.6% over the last year, which totalled 1.8 billion as of June 2023, up from 1.74 billion a year earlier. Mobile broadband penetration is highest in Japan, Estonia, the United States and Finland, with subscriptions per 100 inhabitants at 200%, 192%, 183% and 161%, respectively. The share of 5G in total mobile broadband subscriptions is 23% on average for the OECD countries that provided this data.  

Machine-to-machine (M2M) SIM cards grew 14% increase in one year. The two leading countries are Sweden with 238 M2M SIM cards per 100 inhabitants and Iceland (203), followed by Austria (179), the Netherlands (93) and Norway (76). Both Sweden and Iceland issue M2M SIM cards for international use. 

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