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    Unlock new value and innovation with network digital twins

    Partner content: This approach gives network operators the chance to experiment without the risk of disruption to live infrastructure and services

    The innovation gap between leading cloud players and communication service providers (CSPs) just seems to keep growing. Both provide essential infrastructure for our digital world, and both have millions of users and billions of dollars depending on their technology. Yet this hasn’t stopped hyperscalers from experimenting, exploring new ideas, and bringing new features to users at a breakneck pace. Why can’t CSPs do the same?  

    One big reason is that they’re playing by a different set of rules. Telco networks are highly regulated, often designated as critical infrastructure. In many markets, CSPs are legally barred from experimenting in the live network. Even when they’re not, any network change that impacts services can lead to loss of revenue, hefty fines, regulatory scrutiny, even lawsuits.

    Today, there’s a way for CSPs to expand their ability to innovate without the risk of disrupting live services: digital twins. By maintaining highly accurate virtual models of the network, CSPs can realize a long list of operational benefits. They gain the freedom to experiment in new ways, especially in radio access networks (RANs), the most complex and hard-to-emulate part of the network.

    Most critically for the future, digital twins provide a platform for training a new generation of artificial intelligence and machine learning (AI/ML) algorithms that can empower telco networks to self-optimize – for performance, spectral efficiency, power consumption, and more.

    These changes have the potential to transform telecom, accelerating the cloudification of telco environments and enabling CSPs to tap into groundbreaking innovations from third-party software developers. For CSPs hoping to take advantage of digital twins, however, it’s essential to understand the full value of telco network data—and of maintaining an open network.

    What Is a digital twin?

    Digital twins provide highly accurate virtual models of CSP networks for the lab. Using advanced simulation and emulation tooling, they create a carbon copy of the production network, including real subscriber data that’s been sanitized to remove personally identifying information. As a result, digital twins allow network engineers to validate new applications and changes, and more thoroughly understand how they will behave before pushing them into production.

    Network digital twins are not static; they continually ingest new data to maintain the most accurate possible model, creating a positive feedback loop. As changes occur in the network and CSPs continue feeding more data into digital twins, they develop increasingly higher-resolution models and increasingly accurate predictions. This enables operators to:

    • Accelerate onboarding of new technologies – CSPs can onboard new network functions and applications more quickly and confidently. Engineers can validate that changes will function as expected—and identify when they won’t—before they go live.
    • Improve network performance and security – Digital twins can help CSPs identify emergent issues impacting performance and continually optimize the network. For example, operators can run congestion scenarios to see how cells behave when many subscribers make video calls at once, and take proactive actions to improve performance and resiliency.  Digital twins can also provide a sandbox to simulate network attacks, so operators can understand how compromises would affect the network.
    • Gain a competitive edge – To help show customers that they have the fastest, most reliable network, operators can capture analytical data in digital twins and use speed tests like Ookla to measure their performance versus competitors.

    Digital twins can also reduce reliance on expensive manual operations like drive testing. Today, operators send teams of technicians thousands of kilometers across their markets to directly measure network performance. The cost of these efforts is substantial, but they’re the only way to identify if, for example, a recently erected building is now blocking a cell and impacting performance. With digital twins, engineers can explore how changing morphology and environmental factors affect RF dynamics virtually. They can measure how changes—like moving a cell two degrees in one direction or another—will affect performance, without leaving the lab.

    Why now?

    The concept of digital twins for telecom isn’t new. The ability to test via realistic simulation has been something of a holy grail for the industry for years. Until recently though, it wasn’t viable, simply due to the computational resources needed to construct realistic models. RAN environments in particular are so dynamic and complex, the cost of compute needed to perform accurate simulations of dynamic subscriber mobility use cases and their associated impact on network performance at real-world scale was astronomical.

    Today, declining compute costs, along with advances in network emulation, have made digital twins both practical and economical. These changes couldn’t have come at a better time. As telco environments grow more digitalized and virtualized, even minor fluctuations in the network environment can have a major impact. Overloaded data centers, unexpected congestion, and changing application mix can all affect performance. This makes traditional lab testing, which typically reflects ideal conditions, far less reliable.

    Additionally, as CSPs adopt software-driven architectures, faster testing becomes essential. Instead of processing network updates two or three times per year, updates now come in constantly, some of which (like security patches) must be pushed into production within hours. Without continuous testing under realistic conditions, modern network operations simply won’t work.

    Unleashing AI innovation

    Perhaps the biggest driver for telco digital twins is the exploding use of AI/ML—for service assurance, capacity planning, and most importantly, to automate complex network operations. And the RAN is ground zero for applying AI/ML algorithms to react to changing real-time conditions via automated closed-loop actions.

    Modern Open RAN architectures feature a RAN intelligent controller (RIC), an open platform to run applications in the most dynamic and demanding part of the network, closest to subscribers. We’re already seeing an ecosystem of groundbreaking third-party RIC apps that use algorithmic analysis to optimize spectral efficiency, reduce power consumption, and more. The AI-driven RIC apps of the future will be even more transformative—but only if their algorithms have realistic data to train on.

    It’s one thing to emulate a network. It’s quite another to emulate accurately enough to train algorithms—at least, algorithms that CSPs would trust to take autonomous actions in their networks. In fact, developers working in this space invariably say that their biggest barrier is the ability to test new applications under lifelike network conditions. The second-biggest barrier: lack of telco data sets to train against.

    Looking ahead

    Most CSPs are still in the early stages of developing digital twins. In the future though, they will almost certainly be used across the telco ecosystem for certification and standardized testing. The ability to capture more network data, and provide a means to train algorithms and validate new technology via realistic emulation, will become a foundational CSP requirement.

    At the same time, CSPs shouldn’t view these changes as merely requirements. They also hold enormous potential to unlock new value. If anything, explosive growth in AI/ML training in every industry should underscore just how valuable CSP network data truly is. This assumes, of course, that CSPs maintain an open network, where they can actually access their massively valuable data in the RAN. If CSPs can’t access fine-grained network data, they can’t use or monetize it. And they’ll continue to struggle to optimize their network operations—much less close the innovation gap.

    About the author

    Johannes (Janco) Terblanche is Business Development – OpenRAN/vRAN at VMware by Broadcom

    Telefónica Germany launches first commercial vRAN and Open RAN site

    The site uses Samsung’s kit and is part of the joint development announced with the operator last year – more sites and network automation to follow

    Telefónica Germany and Samsung Electronics have launched their first commercial virtualised RAN (vRAN) and Open RAN after “extensive trials”.

    The site, at Landsberg am Lech in Bavaria, is the first deployment of Samsung’s 5G vRAN in a commercial network in Germany. It will provide 4G and 5G services. The companies say they will expand the vRAN and Open RAN network to seven more sites in the region “in the coming months”.

    For the initial deployments, Samsung’s solution includes its 4G and 5G vRAN 3.0 and O-RAN compliant radios. They support low- and mid-bands (700MHz, 800MHz, 1.8GHz 2.1GHz, 2.6GHz and 3.6GHz), including 64T64R Massive MIMO.

    Next, the companies will introduce Samsung’s intelligent network automation solutions to control life cycle management, from deployment and operation to maintenance.

    The automation solution is O-RAN compliant and is designed to accelerate the roll out of software-based network by enabling the automated deployment of thousands of network sites simultaneously.

    Joint initiative

    The companies announced a joint initiative, announced in October 2023, when they agreed to develop a roadmap for several tests of vRAN and Open RAN technologies. 

    They say this is just three months after the initial shipment of 4G and 5G solutions, “leveraging Samsung’s expertise and pre-validated ecosystem proven from large-scale commercial vRAN and Open RAN deployments across the globe,” according to the press statement.

    Mallik Rao, CTIO at O2 Telefónica Germany said, “On the way to the network of the future, we are integrating new network solutions to provide our customers with outstanding connectivity. Open RAN is a building block that can help us to automate our network, deploy new updates faster and use network components more flexibly.” 

    In February 2023, Samsung also announced plans with Vodafone to launch Open RAN in European markets including Germany. 

    Fibreco öGIG expands Austrian network footprint 

    The Graz-Waltendorf groundbreaking sets the race to connect 150,000 homes and businesses by the end of the year

    Around 4,800 households and companies in Graz-Waltendorf will now be connected to the high-performance öFIBER fibre optic network of the Austrian Fibre Optic Infrastructure Company (öGIG). The ceremonial groundbreaking marks the start of an expansion that will see around 30 Styrian communities connect to the öFIBER network – the high-speed Internet connection from öGIG – representing around 50,000 households and businesses  

    To this end, öGIG will invest around €70m in the Styrian fiber optic expansion in 2024 alone – €10.5m of which will be for Graz-Waltendorf.  

    “The biggest advantage of our open platform is that customers can choose from a wide range of providers and offers when it comes to their internet tariff,” said öGIG CCO Christian Nemeth. “Future-proof open networks and an attractive price-performance ratio guarantee fair competition and are cornerstones of our corporate strategy, which are perceived very positively from the customer’s perspective.” 

    Allianz subsidiary 

    In 2021, Allianz invested around €1bn for the deployment of fibre so öGIG could connect to one million households by 2030, making it one of the largest fibre network providers in Austria. The expansion of the Lower Austrian communities is mainly carried out through the partnership with the Lower Austrian Fiber Optic Infrastructure Company (nöGIG). The federal states of Upper Austria, Styria, Burgenland, Carinthia and soon Vorarlberg are the focus of the öGIG. 

    With currently over 20 Internet providers on the network, öGIG and nöGIG have the largest open access platform in the country. In addition, with investments of over €600 million by öGIG and nöGIG to date, its fibre footprint has reached more than 210 communities.  The focus is on the federal states of Lower Austria, Upper Austria, Styria, Burgenland and Carinthia.  

    In total, 150,000 households and companies will be connected to the open fibre optic network by the end of the year. More than 50,000 customers will then actively use their FTTH connection immediately. In addition to private-sector infrastructure investments, federal funding is also combined to expand the network as comprehensively as possible in the more rural – and more expensive – areas.  

    The project details 

    The laying of the öFIBER network in Graz-Waltendorf is being carried out by REELA Projektentwicklungs- und Bau GmbH, which is already carrying out the fibre optic expansion in Wildon. REELA uses the so-called HDD (Horizontal Directional Drilling) directional drilling method – a very environmentally friendly alternative to conventional civil engineering methods. The process enables the underground laying of lines, pipes and cables to protect the landscape and the soil and reduces soil erosion. The first households will be connected as early as July and August. Completion of the entire project is scheduled for summer 2026.  

    Photo reference (from left): Holger Geserick (managing director REELA), Christian Nemeth (CCO öGIG), Kurt Hohensinner (Graz City Council) and Peter Mayr (district manager Graz-Waltendorf) on 30 April 2024 at the groundbreaking ceremony in Graz-Waltendorf, where the öFIBER fibre optic expansion officially kicked off. 

    Infobip and Nokia partner to help developers build telco applications faster 

    2024 is turning out to be the year CPaaS and network APIs finally tie the knot

    Global cloud-based Communications Platform as a Service (CPaaS) provider Infobip and Nokia are partnering up to enable the global developer community to leverage both companies’ Application Programmable Interface (API) platforms to build a wider array of telco network powered applications faster for consumer, wholesale and enterprise customers. 

    The move, which mirrors Ericsson’s Vonage deal but without an acquisition, will provide developers with APIs for integrating Infobip’s real-time omnichannel communications features such as SMS, voice, video, chat apps, and network APIs into their applications. This will now be aligned with Nokia’s Network as Code platform with developer portal which offers developers APIs for tapping into 5G network capabilities like quality of service (QoS) on demand, device location precision and network slicing, as well as 4G capabilities. 

    Infobip has already been pushing the GSMA Open Gateway initiative as a way to offer a unified network API framework for developers to easily access mobile operator networks, aiming to enhance global connectivity and innovation. “Telecom companies can leverage this initiative by collaborating strategically, nurturing strong developer relationships, and utilising comprehensive CPaaS knowledge,” said Infobip chief business officer Ivan Ostojic earlier this year.  

    “The initiative enables the development of APIs for various purposes, such as device location and number verification, to foster digital services growth and address challenges like fraud,” he added. 

    Earlier this year Infobip partnered with three mobile network operators to launch the first CAMARA-compliant network APIs in Brazil – under the GSMA Open Gateway initiative and the company believes its approach enables telcos to easily launch and monetise their emerging services, such as their core network capabilities being exposed through CAMARA APIs. 

    Veon Gateway deployment 

    Nokia noticed this too and engaged with Infobip early on to bring its own network API platform to a wider telco audience. In February, Veon announced it was working with Nokia and Infobip to launch its Geolocation Gateway, initially in Uzbekistan, built using the GSMA Open Gateway framework.  

     Veon’s Gateway allows applications to determine the location of devices. For financial institutions, the Geolocation Gateway will enable them to determine if an individual is actually present during a transaction such as an ATM withdrawal or a credit card payment.  For commercial companies, it can create growth opportunities by enabling targeted communications to be sent to participating customers, with their consent, based on proximity to an event, restaurant or shop. Most importantly, for emergency services, the Geolocation Gateway will provide authorities the ability to warn individuals in specific locations about impending natural disasters such as floods, earthquakes or cyclones.  

    The first implementation of Geolocation Gateway was a commercial use case where an Uzbekistan-based country-wide pizza restaurant chain worked with Beeline Uzbekistan and Veon Adtech, both wholly owned subsidiaries of the V Group, to grow its business through precision-marketing based on the Geolocation Gateway APIs. The solution will be scaled to other digital operators of the Veon Group and is also available for licensing by other mobile operators.  

     Smoothing the path 

    The joint work between Infobip and Nokia will offer a simplified developer experience without the burden of navigating the complex underlying network technologies, allowing developers to integrate capabilities into their applications faster, relative to working separately with the two companies’ platforms. 

    Nokia’s Network as Code platform with developer portal brings together networks from around the world, along with systems integrators and software developers, into a unified ecosystem; using technical standards produced through industry initiatives such as the GSMA Open Gateway initiative and the Linux Foundation CAMARA. Nokia and Infobip contribute to both initiatives. 

     Infobip’s customer engagement use cases include CAMARA-compliant Number Verify and SIM Swap APIs, which are already live. The firm is also working to bring further use cases to market including Device Location and Quality on Demand APIs, having now signed 12 API collaboration agreements.  

    Nokia has signed collaboration agreements with 11 network operators and ecosystem partners to use the Network as Code platform with developer portal since its launch in September 2023. 

    “This agreement with Nokia further demonstrates how Infobip is helping telcos deliver new services and gain new revenue,” said Infobip VP of business development Matija Ražem. “We will continue to build and offer additional CAMARA-compliant APIs worldwide, working closely with our telco partners to expose customer experience friendly APIs to developers It is testament to our global market-leading CPaaS position, strong developer relations and history of strategic telco collaborations.”  

    “This partnering agreement reflects our ongoing commitment to work closely with the developer community. It is about expanding choice and scale and giving developers a one-stop shop for extracting value from Infobip’s and Nokia’s platforms,” said Nokia head of network monetisation platform, cloud and network services Shkumbin Hamiti.  

    Broadband Forum extends 5G convergence standards

    Industry body says they include “major enhancements” to resilience and support for residential customers

    The latest development in the Broadband Forum’s ongoing efforts to integrate wireless and fixed networks is to produce converged standards for 5G. They are intended to improve resilience and support of residential consumers.

    The Forum’s Phase 18.1 specifications build on 3GPP’s Release 18 in its Wireless-Wireline Convergence (WWC) Work Area. The specifications have two main aims. Firstly to extend the “common value-adding capabilities” so operators can deliver customised Quality of Service. Secondly to offer a flexible, smoothly migration path to using a single converged 5G Core with a multi-vendor broadband network.

    The organisation claims this latest work “drives greater value and better Quality of Experience to the customer and allows operators to consolidate their IT systems for more efficient operations and lowers their total cost of ownership”.

    Latest efforts

    The Forum is developing five new specifications as part of its Phase 18.1 work. Use cases include business services support, hybrid access, network data analytics and support for devices behind a 5G Residential Gateway (5G-RG). Different groups of subscribers, such as home workers or gamers, can also be given priority using network slicing, a key component in this phase of work.

    Documents are set to expand the deployment options for operators, including:

    • WT-456 Issue 3 – Access Gateway Function (AGF) Functional Requirements

    • WT-458 Issue 2 – Control-User Plane Separation (CUPS) for 5G Wireless Wireline Convergence

    • WT-470 Issue 3 – 5G Wireless-Wireline Convergence Architecture) and

    • related extensions to device requirements located at the customers’ premises and device data models.

    Previous work

    The previous phase of work covered CUPS for multi-vendor support (TR-458) and specified the combined AGF and 5G User Plane (referred to as Broadband-UPF, that is, user plane functions).  They allow operators to combine use of the Broadband User Plane and the 5G Control Plane cost effectively.

    Broadband Forum’s Technical Reports TR-493 and TR-494 have been published, converging support for residential voice services onto today’s 5G networks.

    Christele Bouchat, Nokia and Broadband Forum WWC Work Area Co-Director, comments, “Our Phase 18.1 work is driven by industry demand and the priorities of operators, as we focus on providing them with increased flexibility, revenue potential, and deployment options.

    “By working in close alignment with 3GPP, we are ensuring synergy for the broadband industry. By leveraging convergence, operators can cost-effectively deliver broadband in the home and office.”

    Manuel Paul, Deutsche Telekom and Broadband Forum WWC Work Area Co-Director, adds, “…the Forum’s] work addresses the needs of both fixed and mobile operators. They can combine offerings and provide a uniform experience to subscribers irrespective of the access in use, supported by a common control plane and streamlined back office.

    “As standards mature, the industry has the foundations available for mass deployments in the residential and enterprise markets to start.”

    Visit the Broadband Forum YouTube page for background on the WWC Work Area here.

    Vodafone launches InstantX edge project with Linux Foundation 

    Signs strategic partnership with LF Edge to extend community’s reach to address instant data exchange at the far edge

    Vodafone has kicked off a project with Linux Foundation subsidiary LF Edge which is a new cloud and edge cloud platform to exchange and distribute data in real-time between users in a certain geography through “far-edge” computing power. The project, dubbed InstantX short for Instant EXchange, is aiming to solve the problem of asynchronous and instant data exchange across clients in the same region while offering that data for off-line processing and self-learning to derive further usefulness. 

    While thankfully not branded as Industrial 4.0, Vodafone believes InstantX will offer many potential applications that utilise low latency and highly responsive technologies to drive forward the industrial internet. This they say is where programmable 5G standalone networks, edge computing and open APIs will finally come into their own. Connecting machines and applications with cloud-based AI powered services will become as commonplace as communicating via social media platforms – and probably less toxic.  

    InstantX is designed to ensure the secure and reliable exchange and distribution of data in real-time between users in certain locations. It uses ‘far-edge’ or ‘industrial-edge’ computing power which works by locating smaller, industrial servers outside a main data centre but closer to users. 

    Road safety applications 

    Vodafone said it has already developed several applications under InstantX. For example, the telco has already successfully tested improved road safety systems in several European countries. This allows pedestrians, cyclists and motorists plus their vehicles to share information with each other such as hazard warnings and difficult road conditions.  

    Other potential uses it sees include the coordination and control of autonomous robots in smart factories to avoid collisions with other machines, and more importantly, people. It can also help to track, monitor and control beyond-the-line-of-sight drones. 

    One of the gang 

    To push InstantX, Vodafone has also announced it has become a premium member of LF Edge, the umbrella organisation within the Linux Foundation dedicated to creating global collaboration on edge computing. The telco will participate actively in the governance of LF Edge, with Sampada Basarkar, product & platform engineering director at Vodafone, gaining a seat on the project’s governing board, technical advisory council and other committees. 

    The membership enables Vodafone – which is also an active member of the Linux Foundation – to leverage the collective capabilities of open-source edge computing to develop advanced networks for customers of Vodafone Business. Other premium members already include: AMD, American Tower, Arm, AT&T, AVEVA, Baidu, Charter Communications, Dell Technologies, Dianomic, Equinix, F5, Fujitsu, Futurewei, HP, Huawei, Intel, IBM, NTT, Radisys, RedHat, Samsung, Tencent, VMware, Western Digital and ZEDEDA. 

    “I’m delighted that Sampada has been invited to join the board of LF Edge,” said Vodafone Business CTO Justin Shields. “As a premier member of LF Edge, Vodafone can bring its own source coding credentials in edge computing to a leading developer community so that it can benefit many more organisations and individuals. Partnering with other companies and developers is the key to unlocking opportunities in edge computing to support ultra-low latency applications that will drive forward the industrial internet.” 

    “Vodafone’s active participation will propel our efforts to develop more robust and interoperable edge computing frameworks, particularly enhancing 5G and mobile private network connectivity,” said Linux Foundation GM networking, edge, and IoT Arpit Joshipura.  

    Liberty Global maintains course in choppy Q1 waters  

    After 4-17% price rises in its core markets last year, the company will be watching churn closely as it creates more value from its disparate operating companies

    Liberty Global announced it was “on-track” to meet its full-year 2024 guidance metrics across all its operating companies, with price increases recently announced in the UK, the Netherlands and Belgium to support its financial targets. Management will however be trend-watching closely, after subscribers fell across its telco operating companies and joint ventures, with Liberty reporting a decline of 84,500 fixed line/video RGUs in its consolidated Q1 figures, plus even more in the joint ventures.  

    Speaking at the company’s 2024 Q1 results, CEO Mike Fries said the company had made “significant progress” against strategy to create and deliver value to shareholders – by proving the parts are greater than the sum – with Sunrise spin-off still looking good for Q4. 

    “Our fibre upgrade projects in the UK, Belgium and Ireland remain on track and nexfibre recently announced it had reached the milestone of one million premises built in the UK, as VMO2 fibre build capacity continues to ramp up,” he said. “Our overall financial performance in Q1 was in line with expectations, highlighted by the return to strong Adjusted EBITDA growth in the Netherlands and the return to positive broadband net adds in Switzerland.”  

    He added: “Fixed ARPU trends in the UK and Switzerland improved while our businesses in Belgium and the Netherlands each delivered continued fixed ARPU growth.” 

    Liberty Global’s Q1 revenue increased 4.1% YoY on a reported basis and 1.9% on a rebased basis to $1.95bn while net earnings increased 173.9% YoY on a reported basis to $527m. Adjusted EBITDA decreased 6.9% YoY on a reported basis and 6.8% on a rebased basis to $581.4m and Fries highlighted the telco group’s healthy liquidity of $4.7bn comprising nearly $1.2bn of cash, $2bn of investments held under SMAs and $1.5bn of unused borrowing capacity. 

    VMO2 sees some declines 

    In the UK, VMO2’s fixed customer base declined by 2,000 in Q1, primarily driven by a reduction in gross adds, as a slowdown in customer activity in the fixed market offset growth in nexfibre areas. VMO2’s premium fixed ARPU was broadly stable for the second consecutive quarter ahead of price rises being implemented in Q2. The broadband base grew by 5,300 in Q1, while growth in broadband speeds continued, as average download speed increased 17% YoY to 368Mbps. VMO2 became the first major UK provider to publicly launch a residential 2Gbps service in February. 

    In mobile, the postpaid base declined by 74,500 in Q1, driven by a reduction in handset sales and disconnections related to the decommissioning of a legacy billing system. During Q1, VMO2 built 194,000 premises, the majority of which were FTTH homes built for the nexfibre JV, representing an increase in build pace of 80% YoY.  

    VMO2’s revenue – in US GAAP terms – increased 3.8% YoY on a reported basis and decreased 0.5% YoY on a rebased basis to $3.3bn. The rebased decrease was primarily due to the net effect of an increase in other revenue due to low-margin construction revenue from the nexfibre JV and a decrease in mobile revenue due to lower handset sales, plus a decrease in B2B fixed revenue. Q1 adjusted EBITDA increased 4.6% YoY on a reported basis and 0.3% YoY on a rebased basis to $1.1bn.  

    Sunrise holding its own 

    Liberty’s Swiss subsidiary – for now – delivered 6,200 broadband net adds, primarily driven by an improved main brand performance from customer loyalty initiatives. In mobile, Sunrise delivered 26,000 postpaid net adds. FMC penetration remains high at 59% across Sunrise’s broadband base.  

    Sunrise’s revenue in Q1 was $854m – up 5.8% YoY on a reported basis but flat on a rebased basis. The flat rebased result was mainly due to the positive impact of last year’s July price rise and continued momentum in mobile subscription and B2B, offset by lower handset revenues. Adjusted EBITDA increased 6.2% YoY on a reported basis and 0.4% on a rebased basis to $279.3m.  

    “We have started 2024 with a strong operational and solid financial result. We continued our growth momentum in mobile postpaid despite a generally less liquid market compared to the previous year. At the same time, we achieved strong net growth in broadband driven by increased customer loyalty,” said Sunrise CEO André Krause. “Overall, we are well on track, fully confirm our guidance for the 2024 financial year, and expect positive effects of operational cost optimization in the following quarters. Finally, we look forward to being listed on the Swiss stock exchange soon.” 

    Telenet has a steady start to 2024 

    In Belgium, Telenet’s postpaid mobile base declined by 800 while its broadband base declined by 6,000 – with Liberty putting this down to the “intensely competitive market environment”, which more than offset the improved sales performance from Telenet’s latest marketing campaigns. Wyre, Telenet’s NetCo partnership with Fluvius, in which it holds a majority 66.8% stake, is on track to achieve its FTTH rollout plan, while continuing to “explore ways in which it can maximize efficiency of such rollout”. FMC penetration remains high at 49% of the broadband base. In April, Telenet extended its digital ecosystem through Blossom, an “all-in-one” digital solution for the installation of charging stations and smart charging for electric cars. 

    Telenet’s revenue increased 1.1% YoY on a reported basis but decreased 0.5% on a rebased basis to $762.6m. The rebased decrease was primarily driven by the decrease in B2B wholesale revenue after losing VOO, a decline in the fixed customer base and lower interconnect revenue, partially offset by the benefit of the June 2023 price rise. Adjusted EBITDA increased 1.8% YoY on a reported basis and 0.2% on a rebased basis to $308.4m, primarily due to the net effect of lower programming and interconnect costs and lower energy costs – partially offset by higher staff-related expenses following the mandatory 1.5% wage indexation as of January 2024 and growth in the overall FTE base.  

    VodafoneZiggo confirms guidance 

    In the Netherlands, VodafoneZiggo saw FMC net adds increase by 22,700 to almost 2.7 million in Q1. FMC penetration remained stable at 48%. Mobile postpaid net adds grew 22,300 alongside growth in mobile postpaid ARPU of 3.4% YoY supported by the price rises implemented in October. The broadband base contracted by 23,500 in the quarter, a 3,000 improvement compared to Q4, as a 26,600 decline in Consumer was only partially offset by a 3,100 increase in B2B. 

    The telco’s revenue increased 2.8% YoY on a reported basis and 1.6% YoY on a rebased basis to $1.1billion in Q1. The rebased increase was primarily due to continued growth in mobile and B2B fixed revenue, partially offset by a decline in the B2C fixed customer base. Adjusted EBITDA increased 10.1% YoY on a reported basis and 8.8% on a rebased basis to $519m. The rebased increase was primarily driven by lower energy costs and the phasing of wage increases. 

    “We maintained customer growth in mobile and B2B in the first quarter of the year and our broadband performance continued to show improvement quarter-on-quarter, underpinning our belief that we are executing the right strategy to provide the best network and entertainment experience for our customers,” said VodafoneZiggo CFO Ritchy Drost. Preparations are well underway for broadcasting all UEFA club football matches exclusively through our Ziggo Sport channel and Ziggo Go app this summer.” 

    He added:  Adjusted EBITDA has returned to growth, underpinning Q1 financial performance and our 2024 guidance which we remain on track to deliver. On behalf of the company, I would also like to thank Jeroen Hoencamp who has stepped down as the CEO of VodafoneZiggo from 1 May 2024. Through his strong leadership, Jeroen leaves VodafoneZiggo in a good shape, with a strong position in the Dutch telecom market and a solid financial foundation, including its balance sheet.” 

    SES to acquire Intelsat for $3.1bn to form multi-orbit operator

    The European acquirer reckons the expected total synergies will be equivalent to 85% (€2.4 bn) of the total equity value of the transaction

    Luxembourg-based SES is to acquire Virginia, US-based Intelsat for a cash consideration of $3.1 billion (€2.8 billion) “and certain contingent value rights”. This deal will be done by SES purchasing 100% of the equity of Intelsat Holdings S.a.r.l. (that is, a limited company).

    The Financial Times reported the two were in possible merger talks as far back as 2022.

    The combined SES will continue to be headquartered and domiciled in Luxembourg (picture shows SES’ HQ in Betzdorf, Luxembourg), while maintaining significant presence in the US, “notably in the greater Washington, DC area”. 

    The companies have a gross backlog of €9 billion, revenue of €3.8 billion, and adjusted earnings before interest, tax, depreciation and amortisation of €1.8 billion.

    Stronger together

    The parties say the combination will create a stronger, multi-orbit operator with greater coverage, improved resilience, more solutions and greater resources to invest in innovation. Not to mention creating a bigger pool of talent, expertise and experience. 

    The thinking is that the combination will deliver greater value for customers and partners, and “a compelling alternative in the new era of growth, innovation, and competition for the satellite communications industry,” according to the press statement.

    SES states that the deal fully aligns with its financial policy and is underpinned by expected total synergies equivalent to 85% of the total equity value of the transaction. The parties expect this will be realised within three years of the deal closing.

    Complementary assets

    In large part, this is because the new entity will combine complementary investment in space, ground, and network innovation to unlock future value and opportunity. The two have a combined fleet of more than 100 Geostationary Earth Orbit (GEO) and 26 Medium Earth Orbit (MEO) satellites.

    The joint entity will benefit from enhanced coverage, greater network resiliency, complementary spectrum (C-, Ku-, Ka-, Military Ka-, X-band, and Ultra High Frequency) rights, and improved service delivery utilising an expanded network of ground segment assets. 

    By end-2026, eight new GEO (including six software-defined) satellites and seven new MEO (O3b mPOWER) satellites are expected to be launched adding more redundancy and capacity.  

    The transaction has been unanimously approved by the Board of Directors of both companies. Intelsat shareholders holding about 73% of the common shares have entered into support agreements meaning they will vote in favour of the transaction.

    The transaction is subject to the usual regulatory filings and approvals, which they expect to receive in the second half of 2025.

    Satellite in the mainstream

    Adel Al-Saleh, CEO of SES, commented, “This important, transformational agreement strengthens our business, enhances our ability to deliver world-class customer solutions, and generates significant value for our shareholders in a value accretive acquisition which is underpinned by sizeable and readily executable synergies.

    “In a fast-moving and competitive satellite communication industry, this transaction expands our multi-orbit space network, spectrum portfolio, ground infrastructure around the world, go-to-market capabilities, managed service solutions, and financial profile. I am excited by the opportunity to bring together our two companies and augment SES’s own knowledge base with the added experience, expertise, and customer focus of the Intelsat colleagues.”

    He added, “This combination is also positive for our supply chain partners and the industry in creating new opportunities as satellite-based solutions become an increasingly integral part of the wider communications ecosystem.”

    The end of torrid times?

    David Wajsgras, CEO of Intelsat, said, “Over the past two years, the Intelsat team has executed a remarkable strategic reset. We have reversed a 10-year negative trend to return to growth, established a new and game-changing technology roadmap, and focused on productivity and execution to deliver competitive capabilities. The team today is providing our customers with network performance at five 9s and is more dedicated than ever to customer engagement and delivering on our commitments. This strategic pivot sets the foundation for Intelsat’s next chapter. 

    “By combining our financial strength and world-class team with that of SES, we create a more competitive, growth-oriented solutions provider in an industry going through disruptive change. The combined company will be positioned to meet customers’ needs around the world and exceed their expectations.”
     

    A missed opportunity: passing the EU’s Gigabit Infra Act

    Brussels can tick the box, but it could and should have been so much better

    The Gigabit Infrastructure Act, hailed by Brussels as a flagship piece of legislation for the European Union and the wider world, is finally about to pass into law. It replaces the 2014 broadband cost-reducing directive (BCRD).

    Following the usual rigamarole, it received the nod from the European Council after the European Parliament voted in its favour. It is now in the process of being published in the Official Journal and officially becomes law three days after that is completed. However, it will not be enforceable for another 18 months, taking us to late 2025, and even then, not all of it will be binding.

    Tight timeline

    This doesn’t give much time for it to help the EU to hit its ambitious 2030 targets regarding the penetration of fast network coverage. The goal is full fixed gigabit coverage by 2030 and 5G networks in all populated areas by 2030.

    The EU’s State of the Digital Decade report published last September showed that fibre networks are available to just over half (56%) of households. 5G covers 81% of urban populations but this falls to 51% for rural dwellers.

    The EU reckons will cost €200 billion collectively for operators to hit those targets.

    The Act is designed to speed up the process for operators in obtaining permission to build infrastructure on landlords’ property. Already the terms have been diluted – example, with various exemptions, voluntary elements and interim steps introduced – to get it passed into law and the intra-EU prices caps that should expire on 14 May will now be in place until 30 June 2032.

    For more information, see this detailed analysis.

    Not a great track record

    An attempt by the British government to smooth the way for operators building out infrastructure in the UK achieved little – the updated Electronic Communications Code was published in 2017. The intention had been to make gaining permissions easier and make the rental fees that land and property owners could charge operators reasonable. Naturally, the landowners didn’t always agree with what the operators thought was reasonable, andVodafone lost a landmark case in 2020.

    The UK government has just had another go at addressing part of the issue – access to multi-tenancy buildings.

    So yes, after much toing and froing the current Commission has got the legislation over the line before its term ends later this year but how much it will achieve and when is not clear.

    Broadband numbers static as Italy shifts to FTTP 

    Mobile stays prepaid while VOD subscriptions grow but viewing falls

    By the end of 2023, FTTC accounted for about 49 percent of the Italy’s total broadband user base of around 18.95 million – with the total only creeping up 22,000 in the year. Despite being almost half, FTTC connections fell 475,000 YoY while FTTH grew by 290 thousand in the last quarter of the year and 978 thousand year-on-year. Compared to December 2019 the FTTH increase is 3.34 million lines. DSL fell 675,000 but was offset by growth in lines in other technology. 

    Despite some hype around fixed wireless in Italy, FWA increased 150,000 and at the end of December 2023, amounted to 2.11 million subscriptions. The figures are part of Italian regulator AGCom’s latest Communications Observatory. The country’s fixed network overall fell 16,000 on a quarterly basis and now stands at around 20.11 million lines. Copper lines decreased by about 186,000 on a quarterly basis and by 798,000 compared to December 2022. Over the past four years, they have decreased by 5.72 million. 

    Connection speed have improved: lines with speeds of 100Mbps and above rose from 40.3% at the end of 2019 to 73.4% in December 2023. Of note was the growth in the weight of marketed lines with transmission capacity ≥1GB/s, which increased from 3.2 to 22.2% in the 2019 – 2023 period.  

    At the same time, the growth in data consumption continues. In terms of overall volume, daily traffic in 2023 marked a 15.6% year-on-year growth, marking, at the same time, a 120 percent increase over the corresponding value in 2019. This is reflected in daily traffic per broadband line, with unit consumption figures more than doubling in the period 2019 – 2023, increasing from 4.23 to 8.52GB per line on average per day. 

    TIM is confirmed as the largest operator with 38% of lines, followed by Vodafone with 16.4% and Wind Tre and Fastweb with 14.2% and 13.7% respectively. After that comes Tiscali (3.7 %), Eolo (3.5%) and Sky (3.3%).  

    Mobile dominated by prepaid 

    In Italy’s mobile network, as of the end of December 2023, there were 108.5 million active SIMs (both ‘human and M2M’), up by just under 1.3 million units year-on-year. Of that however, M2M SIMs showed an increase of 1.2 million units, while that of ‘human’ (i.e. voice only, voice+data and data only involving human iteration) was about 60 thousand SIMs. 

    Non-M2M mobile lines are 86.5% residential users, while, with reference to contract type, just under 90 percent of subscribers prepaid. Relative to overall sims, TIM is the market leader with 27.8%, followed by Vodafone with 27.1%, Wind Tre with 23.7% and Iliad reaching 9.9%. 

    Considering only the ‘human’ SIM segment, AGCom said Wind Tre remains the leading operator with 24.6%, followed by TIM with 24.1%, Vodafone with 21.7% and Iliad – with 1.5 percentage points YoY growth – has reached 13.7%. After that comes PostePay (5.4%), Fastweb (4.6%) and CoopVoce with 2.7%. 

    An estimated 58.6 million ‘human’ SIMs produced data traffic during the last quarter of 2023, which is about two million more than in the corresponding period of 2022. In 2023, daily mobile data traffic grew year-on-year by 21.7% but 245% over 2019. Correspondingly, the average daily unit consumption in the January-December period can be estimated at about 0.78GB, up 21.1% compared to 2022 and more than 230% compared to the corresponding period in 2019, when it was estimated at 0.23GB. 

    VOD grew but users are watching less 

    AGCom said paid video-on-demand saw 15.1 million surfers by December 2023 (up 169,000 YoY). On average, in 2023, Netflix registered about 8.7 million unique users (down 1.6%) compared to 2022 and is followed by Amazon Prime Video with 6.7 million visitors (up 3.1%). Disney+, with more than 3.5 million internet users and Sky/Now, with average unique users of 1.2 million, registered growth of 2% and 16.4% respectively, while Dazn (2.1 million average unique users) registered a decline of 9.8% compared to 2022. 

    Analysing the browsing time on the main video streaming sites offering pay-only services in December 2023 showed a growth of 11.8% YoY. “Analysing the total hours spent by surfers on the different platforms in 2023, allows us to observe, albeit with different intensity, an overall contraction for the main operators with the sole exception of Comcast/Sky’s Now service (up 35.7 percent),” stated the report.  

    In detail, Netflix dropped from about 376 million hours in 2022 to 360 million hours in 2023 (down 4.1%). Amazon Prime Video also contracted in the amount of time spent viewing its sites and apps (down 20.6 percent, from 69 million hours in 2022 to 55 million hours in 2023), as did Disney+ and Dazn, both of which are declining when considering the total hours spent by users on their sites and apps (decreasing from 30 to 28 million hours and from 9 to 7 million hours of total browsing from 2022 to 2023, respectively.  

    Free VOD services have 35.4 million unique viewers connected as of December 2023, record a year-on-year decline in audience of 1.5 million. In this regard, in 2023, it is noted that among the free VOD platforms, the most visited ones in terms of average monthly unique users were News Mediaset Sites (with 22.1 million), Sky TG24 (with 9.8 million) and RaiPlay (7.4 million). 

    Surfing time spent on this type of site last December exceeded 26 million hours, registering a decrease of more than 1.6 million hours compared to December 2022. 

    The full data for the report can be accessed here [English] 

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