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Personalisation hits a different level: Customer experience to cancer outcomes

Sponsored: Intelligent, scalable platforms can help data deliver new, unique and superior customer experiences and even save lives

Andrew Feinberg, Chairman and CEO of Netcracker Technology and BostonGene Corporation (pictured left), and Takayuki Morita, President and CEO of NEC Corporation (pictured above), discuss how intelligent, scalable platforms can help utilise data to deliver new, unique and superior customer experiences for telecommunications service providers to improve society as a whole and even save lives.

The term ‘data-driven society’ has been in use for several years and defines a world where data is being produced and captured in all aspects of everyday life. With estimates of the amount of data generated predicted to grow from 96 zettabytes in 2022 to almost double that to 186 zettabytes in 2025 (1 zettabyte equals 1 trillion gigabytes), there’s the real possibility of not just data overload but a data tsunami. Making sense of this data to provide profitable business outcomes will demand a cutting-edge business platform that is underpinned by advanced analytics and artificial intelligence (AI).

As the chairman and CEO of two seemingly very different and unrelated companies, can you tell us about the synergies and commonalities between Netcracker and BostonGene?

Andrew Feinberg: On the surface, you might think that Netcracker – a telecom software company – and BostonGene – a personalised cancer diagnostic and treatment company – would not have very much in common. What draws them together, however, are key factors that are critical for companies of all sizes and in different fields: customer experience, personalisation and powerful analytics.

The success of both companies depends on cutting-edge business platforms that use and analyse extraordinary amounts of data to provide exceptional value to their end customers.

For example, at Netcracker we leverage data and analytics to improve communications service providers’ (CSPs’) networks, services and customer experiences. At BostonGene, we use data and analytics to fight life-or-death battles against cancer. Very different outcomes, but very critical ones in their respective fields.

Netcracker is a pioneer in simplifying operations and helping operators focus on their core business so they can give the best possible experience to their customers. At BostonGene, we are taking the same customer-centric focus but in this case, it’s helping doctors focus on each patient with treatment plans that are tailored just for them. Given the complexity of factors and vast amounts of data available, it is impossible for a single doctor, or even a team of doctors, to rapidly and effectively analyse all of the information to come up with optimal treatment plans for every patient.

Similar to Netcracker, a powerful cloud-based enterprise software platform is at the core of BostonGene’s operations. Layered on top of it are powerful bioinformatics and comprehensive genomic profiling that transform our entire healthcare ecosystem by providing lifesaving personalised treatment plans for cancer patients

Could you give an example of how BostonGene uses technology in cancer care?
Feinberg:
It’s truly remarkable what we can do with proper analytics today. Traditionally, a cancer patient would be put on a regimen based on assigned diagnosis. However, no two humans are the same at the molecular level and because of that, a treatment that is successful for one person can be ineffective, toxic or even lethal for another with the same diagnosis.

Consider the case of Eric, a 49-year-old father of three in New York who was diagnosed with non-small cell lung carcinoma in 2021. He was prescribed a frontline chemotherapy treatment that was so toxic he had to take a leave of absence from work. Unfortunately, the therapy was not successful and the disease continued to progress. Over the following nine months, the second and third line treatments proved to be unsuccessful and had a debilitating effect on Eric, who became weak to the point of being completely bedridden.

As his condition worsened, Eric’s physician suggested additional genomic testing through BostonGene, which showed a particular mutation missed by the previous testing. Our AI-based technologies provided sophisticated analysis of millions of data points; that is, molecular data specific to the patient, data from clusters of similar patients with lung cancer and treatment study data from around the world. This led to a targeted treatment plan based on genetic insights and correlations to other cancer types. Scans taken within four months of starting this new, personalised treatment indicated that the tumor shrunk dramatically.

Today, Eric is back at work, playing sports with his kids and living a full life. It is very possible, even likely, that Eric would not be alive if it were not for the incredible technology that combines basic science with powerful bioinformatics. I see Eric and all other patients whose treatment was prescribed or changed with the help of BostonGene as living proof that software and analytics are the future of fighting this insidious disease.

Without advanced genomic sequencing techniques and a targeted, personalised treatment plan, the disease would have continued to progress and worsen instead of being eradicated. The BostonGene platform utilises a vast amount of bioinformatics data, correlation analysis and predictive modelling and real-time decisioning to create the right personalised treatment plan that saved this patient’s life.

Morita-san, in the past, NEC was known as a network equipment and system integration services company. How has the company’s focus evolved over the years?

Takayuki Morita: NEC has more than 120 years of history behind it, but we are always looking forward and nurturing world- class technologies and the capabilities to implement those technologies. In 1977, we announced the concept of ‘C&C’, which is the integration of computer and communications technologies.

In the last 10 years, as different technologies have become widely used around the world and digitisation has progressed, NEC has expanded its business across a wide range of markets, such as smart cities, green technology, healthcare and cancer treatment. Today we are a truly global business with operations that reach far beyond our home in Japan. Through our relentless pursuit of innovation and uncompromising commitment to research and development, we have grown beyond our roots into new and exciting markets.

NEC has a long history of providing technologies for telecommunications companies. In addition to our significant R&D investments, we are strong supporters of the Open RAN initiative and believe that O-RAN will bring many benefits to the industry. NEC views 5G, 6G and beyond as critical infrastructure for a truly digital society.

NEC has worked with many local governments including Lisbon in Portugal, Tigre in Argentina, Ahmedabad in India, Singapore and throughout Japan to create smart cities using appropriate data sets. These projects include solutions for smart bus systems, public safety and waste management. NEC is also working on environmental issues such as food production.

By leveraging data from satellites and sensors, our AI and data analysis solutions are helping farmers achieve higher yield harvests while using less water and fertiliser. And finally, in Japan, we are offering disaster prevention and mitigation solutions as we adapt to more volatile weather patterns due to climate change.

Our philosophy is that we have a responsibility to transform our strengths in the technology area into more concrete results in terms of safety, security, fairness and efficiency from the standpoint of the consumer. In other words, we endeavour to connect digital technologies and the human experience to implement a vision of a brighter future and a more sustainable world.

How can data enable the digital society?
Morita: Our vision of the future will not come to fruition without the intelligence and insights gathered from data, but thechallenge is to turn that into actionable outcomes that will improve society. Using analytics and our industry-leading AI solutions, we’re able to quickly respond to a number of very diverse situations.

A few examples include using road surface data to proactively maintain sections of a highway to provide a safer driving experience; identifying fraudulent financial transactions in real time; looking at purchasing patterns in stores to optimise product displays and restocking; and improving workflows using chatbots.

In all these cases and many other examples from different industries, the underlying foundation is a vast amount of data that can be turned into real-world solutions that improve efficiencies, decrease costs, optimise processes and simplify transactions.

In your opinion, what technology will have the greatest impact globally in the next five years?
Feinberg:
Staying with the theme of data, I believe the ability to harness, manage, process and act on massive amounts of data that results in meaningful and actionable outcomes across industries will have a major impact over the next few years.

Data and analytics are critical tools that will make it possible to improve lives around the world, and having a next-generation platform to streamline processes, reduce costs and bring in new revenue opportunities will be critical.

But with these advances in technology, we must not lose sight of the human part of the equation, which should always take the lead. Whether it’s in telecom or medical research, people are always at the core of our efforts. BostonGene has patented hundreds of innovations for software analytics that can take the massive complexity of each case and create the right personalised treatment plan that will be most effective. This is the future of fighting cancer.

Similar to the BostonGene example, the ability to leverage BSS/OSS data to create digital twins of networks, services, subscribers and even competitors is required for
telecommunications service providers to effectively compete, drive profitable growth and create the best customer experiences in every single interaction.

Digital twin data is fully separated and anonymised under GDPR rules to ensure subscriber privacy is upheld while providing a valuable resource to enhance deep-level analysis. Netcracker is taking the innovations and insights from the work within BostonGene to enhance BSS and OSS capabilities in processing the oceans of data service providers collect to effectively model, predict and take the right actions in real time.

This is the future of telecom systems.

Can you please share how NEC is pioneering the use of AI to advance various healthcare initiatives, leading to improved outcomes for patients?
Morita:
NEC has a proud 50-year record of contributing to the medical field, and in 2019 we amended our Articles ofIncorporation to include the promotion of business related to drug discovery and medical systems. NEC invested in BostonGene and acquired OncoImmunity in Norway (now known as NEC Oncolmmunity), a leader in using AI to develop cancer immunotherapy.

Today, NEC companies and partners are conducting personalised cancer vaccine trials that utilise NEC’s AI-driven neoantigen prediction technology. I’m excited to announce that preliminary results are quite encouraging. We have also nurtured a strong partnership with the Coalition for Epidemic

Preparedness Innovations (CEPI) to leverage our AI-driven biotechnology to develop next-generation vaccines that are effective against various coronaviruses. Moreover, we have entered into a partnership with Shionogi – a global pharmaceutical company based in Japan – to collaborate on a therapeutic vaccine for hepatitis B. Going forward, we will continue to collaborate with medical institutions and drug manufacturers in our efforts to improve health outcomes around the world.

How does bringing order to data chaos lead to better personalisation, both in terms of customers of mobile operators and cancer patients?
Feinberg:
By applying analytics, AI, machine learning and real-time decisioning to the large volume of data, Netcracker has led the way in helping telecom service providers deliver the best experience to their customers. We can create unique, compelling and personalised journeys that are meaningful and help with retention and loyalty.

BostonGene is also making its mark in the area of personalised customer journeys, but in this case, it’s life-saving diagnostics that bring individualised and personalised cancer treatments to patients. So rather than treating the disease, we treat the patient.

The challenges our businesses and society face today are complex, and that complexity is continuously increasing as we are flooded with more and more data. Technology is a tool, and like any tool it can be used for the greater good or for less than noble purposes such as spreading misinformation or maliciously manipulating data for personal or political gain.

Our role, and I would argue our responsibility as technology and business leaders, is to leverage data in a positive fashion – to improve our society, to enrich our experiences and of course to save lives. This is where both BostonGene and Netcracker are investing: creating the software platforms and technology solutions to manage, process and act on massive amounts of data to deliver the best possible results.

Regardless of industry, market or geography, in everything we do at Netcracker and BostonGene our first and last thoughts are reserved for the customer. We founded Netcracker 30 years ago and BostonGene just a few years ago, but in both cases the driving force and reason for our success over the years has been our never-wavering focus on the customer. As long as we keep that in mind, we will be able to continue delivering the best possible outcomes for our customers and, by extension, society in general.

Mis-sold broadband: will Ofcom ever see this fraud banned?

UK regulator talks tough

UK regulator Ofcom has hinted that the nation’s misled broadband customers could get clearer and more consistent information about their service when signing up to a new deal. New proposals announced by Ofcom today, hint at ‘planned new guidance’ about the use of the terms fibre and full-fibre on their websites and in contracts. According to Ofcom, they should only be able to use this if their network uses fibre-optic cables all the way from the exchange to the home. Customers would also be given a short, easy-to-understand description of the type of broadband network technology they are signing up to.

However, many UK consumers feel that Ofcom is effectively useless as a regulator. It allows the telcos license to mislead because, it says, full-fibre networks are currently being deployed at pace. Since some customers are now spoilt for choice, with a range of different technologies on off for their broadband service, it is assumed that the majority are happy. No even Ofcom has admitted that the term ‘fibre’ is applied inconsistently by the industry, sometimes being used to describe older part-fibre, part-copper technologies, leading to confusion among customers.

Ofcom research has found that only 46% of customers who reported being on full-fibre broadband were living in areas where it is actually available. In addition, more than a quarter (27%) of broadband customers lacked confidence in understanding the language and terminology used by providers. “We also found that, when choosing a broadband service, more than half (53%) would find it useful to have a short description of the underlying technology used to deliver their services,” said Ofcom.

Ofcom has existing rules requiring providers to give a description of the service they provide to customers. “However, we do not believe there is sufficient clarity and consistency in how the underlying technologies used to deliver broadband services are described,” it said, in a statement.

So, we are proposing new guidance to ensure providers give information on the underlying technology of the broadband connection using one or two consistent terms. Providers should also give a more detailed explanation of these terms in a format that is readily accessible to customers. Ofcom now inviting views on these proposals which should be submitted by 3 May 2023. We will consider all responses before making our final decision, which we aim to publish later this year.

“So today we’re proposing to introduce new guidance to ensure that broadband firms give clearer, straightforward information about their services – making it easier for people to take advantage of more reliable, and potentially higher speed technology, as it becomes available,” said Selina Chadha, Ofcom’s Director of Connectivity.

Though Ofcom has taken its time to even recognise a malpractice that has been in existence for years and could easily have been tackled, its initiative was welcomed by two CEOs of genuine fibre infrastructure builders.

“There continues to be confusion around whether it’s super-fast, ultra-fast, full or part fibre” said Jarlath Finnegan, CEO of Giganet. Britain’s telcos have got away with it for too long, according to Greg Mesch, CEO of CityFibre. “Millions of consumers have been mis-sold broadband products for too long. They have been sold internet connections that still use outdated, slow and unreliable copper networks but have been advertised as fibre connections,” said Mesch, “Ofcom is clear that full fibre is better broadband, and we look forward to it stamping out this practice so that consumers can no longer be misled.”

Middle East gamers leading the VPN revolution

Topped the VPN league in 2022

Games and other bandwidth hungry, independent minded Arab consumers lead the world in their use of virtual private networks (VPNs), according to a new report by privacy preserving service provider Atlas VPN. Though Britain just sneaks into number 10 in the rankings, the nations of the Gulf and the Middle East in general dominate in the early adoption of this privacy securing technology. The only other Europeans showing in the top ten are the Dutch with the Netherlands being the sixth highest user of VPNs. Britain’s high ranking could be evidence of increasing awareness of surveillance marketing or a reaction to a rising atmosphere of fear being created over censorship, according the logic of Atlas VPN’s analysis.

According to the service provider’s latest global VPN Adoption Index, VPN downloads reached 353 million in 2022 with Arabian people continuing to be the boldest adopters of this modesty preserving technology. Arab nations took pride of place at the top of the table as the highest VPN adopters globally. In the words of the Atlas VPN release they ‘dominated’ the top ten.

A number of possible explanations can be offered. Culturally, these nations can be more small-c conservative in nature and given to modesty. Independent minded mavericks may be averse to having their activities snooped upon and people in the Gulf region have a strong sense of identity. Under these circumstances they are more likely to value their own privacy, rather than let a ruthless foreign corporation invade it and use its algorithms to place its own value on their intimacy. According to Atlas VPN, Arab nations are governed by hereditary rulers who wield the majority of administrative, legislative and judicial power. The civil rights of both citizens and noncitizens are severely restricted., said Atlas.

To overcome some of those limitations, Arab residents are increasingly demanding tools that could help them regain their liberties. Virtual Private Networks (VPNs) are one of the primary tools people in Arab countries utilize to increase their freedom of expression and access restricted content, said the Atlas release, which revealed a rise in searches for VPNs.

United Arab Emirates, Qatar, Oman and Saudi Arabia take four out of the top five spots on the list, with Kuwait in ninth place. On average, VPNs penetrated 31% of the market in these five countries last year. The leading country in terms of VPN adoption in 2022 was the United Arab Emirates (UAE), with a 43.18% penetration rate. Close to 4.27 million downloads originated from the country.

Stringent internet and freedom of speech restrictions are the primary cause behind the high virtual private network usage in the UAE. The UAE’s two biggest ISPs prohibit any content that violates Islamic moral norms, with gambling sites, adult websites and dating apps, including Tinder, as the primary focus. VoIP services, such as WhatsApp, Skype, FaceTime, Snapchat, Viber, and Facebook Messenger, are banned and unavailable in the United Arab Emirates. “This is one of the main reasons why expatriates turn to VPNs,” said Atlas VPN.

In addition, the authorities restrict politically sensitive topics, particularly those that criticise the government. Qatar reached second place in the rankings with a VPN penetration rate of 39.2% and 1.13 million downloads during the year. Qatar is another Gulf country with substantial internet restrictions, similar to those in the UAE. The fourth place goes to Saudi Arabia. People in Saudi Arabia downloaded VPN applications 9.42 million times, which resulted in a 27.06% VPN penetration rate in 2022. The Saudi government is said to be highly efficient in its censorship of information, limiting access to a wide range of media, including newspapers, books, television, films and all internet content.

In the entertainment sector, gamers in the Gulf employ VPNs to change their IP address so they would get matched with players in other regions and to avoid bandwidth throttling. Also, VPNs are necessary for streamers to prevent DDoS attacks. In addition, the libraries of Netflix and other streaming platforms are highly limited in Arab countries. For example, in the US, Netflix has around 6,000 titles available, while in the UAE, citizens can see less than 1,000 movies and TV series. In turn, those who want to enjoy some of the shows not available in the Gulf region turn to VPNs.

Hrvatski opts for Nokia but most are charging to the cloud – Matrixx

Get minted in the cloud

Hrvatski Telekom’s selection of Nokia’s Converged Charging software has put it at odds with the rest of the telecoms herd, according to a study by 5G monetising specialist Matrixx Software which says mobile network operators (MNOs) are turning to the cloud for instant monetary gratification. The study Monetizing the Cloud-Based Network concludes that most telcos can’t see themselves making any money out of 5G unless they design special charging systems, and that buying them on the cloud is the only practical way of getting started before the gold rush is over. The creation network operator’s choice of Nokia seems bold move.

Cloud installations are the immediate priority for MNOs of every size around the world, said the report’s author and nobody has a one-size-fits-all monetization strategy for the cloud. This means operators need to be open minded and flexible and prepare to be led by the cloud vendor.  Though 77% of MNOs say they’d consider a hybrid cloud in reality most of the money is being spent on private clouds and purely public cloud feeds. Mobile operators are accepting that ‘monetisation technologies’ in the cloud are a better way of keeping pace with the demands of consumers and enterprises in a new 5G era, said Marc Price, CTO of Matrixx Software. However telcos have their work cut out if they want to transition into technology companies that can offer new types of service.

As MNOs prioritises the migration of 5G API-based applications, 5G core network functions and data platforms to the cloud, they must follow the path of hyperscalers who have gone before them. For a third of them this have involved examining the complex interplay between business and operational support systems (OSS/BSS) and charging. It’s at this point that they realise that their current modus operandii are too slow and unwieldy to match the agile and inventive cloud services.

Nearly half of them want to cut the BSS and get a system that shows them the money, according to Price. The elevation to the cloud must be made with tools that work in the new environment, which can create new associated revenue streams. “This focus remains critical for telcos to effectively compete and win with shifting consumer and enterprise demands,” said Price. For this reason, the research revealed high interest in emerging business models such as B2B2X.

CSPs place significant value on getting instant, contextual data, performing analytics and gaining deeper insights into service experience, mobility and user equipment (UE) behaviour. Other ambitions include embedded AI and automation, real-time performance, edge, ultra-low latency and marketplace commerce.

However, at Hrvatski Telekom CTO Boris Drilo said he was happy that Nokia’s NCC containerised software will be instantly on the money. As a containerized, microservices-based solution, Nokia Converged Charging (NCC) will provide real-time rating and charging of voice, data, and SMS/MMS services used by Hrvatski Telekom prepaid and postpaid subscribers. “This monetization solution will ultimately allow us to better meet our customers’ growing network application demands and generate new revenue streams,” said Drilo.

NCC has an intuitive business user interface which is easy set up quickly to create new services, at new prices and with new offers. Nokia’s charging support a billion subscribers globally.

Petal Ads mark the genius of Huawei’s Ramadan plan

In the MEA telcos do it the Huawei

It may be banned from Western Europe’s core mobile technology stack, but Chinese state vendor Huawei has a genius for winning hearts, minds and the bed rock of the Middle East and African culture, as a recent report into mobile monetisation has revealed.

Huawei’s advertising system Petal Ads has introduced a thoughtful and original Ramadan Ad Campaign bundle designed to help mobile network operators and their partners in business and branding to reach a highly targeted audience throughout the holy month. Petal Ads is increasingly becoming the default choice of mobile ad platform for publishers, advertisers and marketers who want to reach wider and further into existing and emerging audiences. Huawei, according to Gulf News, has a long history of tuning in to demand in local markets and satisfying customer expectations.

During the Ramadan period of 2022 the Middle East and Africa (MEA) region’s total user ‘traction’ surged by 53%, according to a survey conducted by AdColony in the United Arab Emirates (UAE). The study found that 63% of people prefer using apps to shop during Ramadan and 66% of respondents said they have bought products after seeing the advertisements, which shows the popularity of mobile apps. In-app shopping habits have become mainstream in the Middle East and Africa and e-commerce merchants have already geared up and are ready to increase their orders. In addition, as a result of last year’s Ramadan’s campaign launched by Petal Ads, advertising investment in the region grew by 447%, while the number of active advertisers has doubled-up.

Now, the 2023 Ramadan Ad Campaign from Petal Ads enables all businesses and brands to better their advertising experience. For a limited time only, Petal Ads offers a special Ramadan package throughout the period of Q1 2023. By taking advantage of this offer, businesses and brands have the opportunity to differentiate, with premium, exclusive ads spots on Huawei’s own media, like AppGallery, Huawei Video, Huawei Music and Petal Search. Each of these has at least 100 million monthly active users. Petal Ads’ can target users by location, demographics and interests, while respecting privacy and consent in consuming Ramadan related content.

In addition to Huawei’s own media, Petal Ads provides extra coverage within the major third-party apps and media in the MEA region. As of December 31, 2022, Petal Ads has cooperated with advertisers spanning 200 industries, with 53,000 apps worldwide having integrated Ads Kit. AppGallery will also launch a Ramadan Special Collection, showcased under the Featured Tab, offering users quick access to Ramadan and Eid-related apps. By creating an AppGallery Campaign assignment, advertisers’ apps will be displayed in this collection within their respective categories and ranked according to the bidding.

“Petal Ads is constantly helping businesses connect more effectively with users, during the month of giving by offering a unique audience and using advanced targeting,” said William Hu, MD of the Huawei Consumer Business Group, Middle East and Africa Eco Development and Operation. Affordable and adaptable adverts that target different markets and prioritise user privacy tend to treat customers with more respect and that is a good foundation from which to apply the latest AI, machine learning and big data, said Hu. Meanwhile, most mobile advertising in Europe continues to be invasive.

Petal Ads helped online streaming service Viu delivers premium content on-demand, connect with a larger audience and achieve 47% business growth on the Huawei Ecosystem in a single year across the MENA region.

Petal Ads also supported cross-border mobile e-commerce platform ChicPoint’s launch campaign in the Gulf region of Saudi Arabia, the United Arab Emirates and Kuwait. A suite of promotional features on AppGallery, including feature cards, top banner cards, and rankings, has boosted their organic downloads and increased their monthly revenue by 40%.

Orange and OneWeb agree “to enhance and expand global connectivity”

Low Earth orbit satellites to complement Orange Business’ portfolio

OneWeb, the low Earth orbit (LEO) satellite company, and Orange have signed a distribution agreement to expand connectivity services across Europe, Africa, Latin America and other global regions.

The plan is that with this partnership, Orange will offer “enriched connectivity” to enterprise customers and other telcos in different regions of the world by integrating OneWeb’s LEO technology.

This technology will complement existing services and enable connection to hard-to-reach areas with “high-quality, low latency” experience that will enable new applications and OTT services.

Other benefits include increased resilience and greater geographical reach for enterprise solutions and backhauling in remote locations across Europe, Latin America, Africa and beyond.

With OneWeb’s technology Orange offers a range of multi-orbital solutions complementing our 40 years of experience in satellite connectivity to benefit small, medium and large enterprises, telco operators, and ISPs. 

Anne-Marie Thiollet, Deputy Executive Vice President Products and Marketing, Orange Business,comments, “Our customers ranging from multi-nationals, enterprises, governments to NGOs will have access to OneWeb’s pioneering satellite network. This…will efficiently complement Orange Business’s existing portfolio to keep connecting our customers to their applications anytime, anywhere, with the right quality of service to meet their business requirements”.

In its predictions for 2023 and beyond, CCS Insights highlighted the opportunity for the first operator that could truly claim total global coverage. Orange is clearly staking its claim.

Vodafone completes sale of 50% of German FTTH net to Altice

FibreCo plans to spend up to €7bn passing up to 7 million homes over a six years

Having announced the deal in October 2022, Vodafone Group has now completed the sale of 50% of its German FTTH infrastructure to Altice. The creation of the joint venture received European Commission approval in February.

The FibreCo intends to deploy FTTH to up to 7 million homes in Germany over a six-year period, investing up to €7 billion. This will be partly financed by debt that will be non-recourse to Vodafone and Altice. In other words, if the borrower defaults, the issuer can seize the collateral but no any further recompense, even if the collateral does not cover the full value of the defaulted amount

Total debt facilities of up to €4.6 billion have been arranged with a group “of leading financial institutions to support the network deployment,” Vodafone’s press statement says without providing further detail.

As outlined in the original announcement, “Vodafone is expected to receive cash proceeds from Altice in excess of Vodafone’s share of equity contributions over time”.

Vodafone also stresses that this partnership with Altice is complementary to Vodafone’s upgrade plans for its hybrid fibre cable network – that is the cable network it bought from Liberty Global.

Germany is Vodafone’s biggest European market but has performed poorly. In Q3 of fiscal year 2022, Germany’s adjusted EBIDTA fell 7.4% to €2.68 billion, apparently due in part to losing broadband customers and higher customer acquisition costs.

The news was worse still in Q4 when Vodafone reported a 1.8% fall in services revenue compared with Q3 to €3.35 billion. The interim CEO, Margherita Della Valle, said at the Q4 earnings announcement, “…we can do better”. How big a difference the deal with Altice makes remains to be seen.

In February, Vodafone Germany also announced deepened ties with Tech Mahindra in a drive to improve customer experience.

$16 billion says 5G has no hard core – ABI Research

Cloud natives set to dominate

In the battle for the ‘soul’ of tomorrow’s mobile infrastructure, the 5G core (5GC) network run by an communications service provider will be increasingly likely to operate solely in the software layer, according to ABI Research, which insists that cloud-native EPC functions and 5GC are the most viable way to create value for telcos. With the ongoing adoption of cloud-computing powered packet core networks, it is the first time the industry has relied on the core network to introduce something above and beyond enhanced mobile broadband (eMBB) said the intelligence firm.

As a result, the world’s mobile network operators will add at least six per cent more cloud computing investment their core networks over the next five years, according to ABI Research, which predicts revenue for cloud vendors will reach $16 billion by 2027. Its logic is that modular and increasingly disaggregated systems are characteristically open, both across vertical technology stacks and horizontal smorgasbords of vendor options. For telcos like BTOrangeTelefónica and Vodafone that want to build an open network as quickly as possible, the cloud is the best way to guarantee a consensus on the software, hardware and services that underpin the packet core buildouts that are fundamental to building a solid foundation.

“Today, much of the traffic going through the packet core is handled via physical network elements.  With a growing 5G subscriber base and ongoing adoption of 5GC, the expectation is that 4G traffic shifts to 5G networks,” said Don Alusha, 5G Core and Edge Networks Senior Analyst at ABI Research. Today’s classic model for packet core equipment sales is becoming irrelevant and moribund equipment hardware sales bear this out. Sales of packet core boxes will total $3.9 billion in 2027, predicted Alusha and, if so, this would be a risible growth from the current market valued at $3.5 billion in 2022. With the cloudification of packet core networks, the commercial imperative for vendors like CiscoHPE, and Juniper, is to depart from a finite supply of integrated equipment to models based on software where the supply is essentially infinite. 

There is new value to be created in professional services, however. ABI Research forecasts that packet core services are expected to grow from $3 billion in 2022 to $5.2 billion in 2027 at a CAGR of 12%.  “There is a growing market for services to help CSPs manage 5G rollouts driven by hardware and software separation, multi-vendor stacks, and expanded business scope drive. In that order. With 3G and 4G, packet core services revolve around one supplier providing their own software and hardware in an integrated fashion to ensure feature alignment, performance, and lifecycle management,” said Alusha. In the cloud packet core future though, the industry structure stands to be horizontally stratified. So, the supplier of the future will need to aid CSPs in all aspects of technology – from defining network architecture to managing workloads to building applications potentially coming from diverse suppliers.

The rules of buying and selling packet core are changing. How suppliers build products, drive revenue, the services they offer, and what they do to succeed in an increasingly cloudified ecosystem are all on the table. “For the next few years, the likes of Cisco, HPE, and Juniper must execute a ‘do both’ model. They need to run the current product playbook and layer in a new software-based selling strategy in line with new economic realities, said Alusha. Ultimately, suppliers must help, not sell. Helping will sell, but selling will not help. Success will go to the fittest, not necessarily the biggest, because size is weakened by commoditisation. “Innovation in the process – how things get done internally – will be as important as innovation in packet core products that vendors sell,” said Alusha.

These findings are from ABI Research’s Network Cloud Infrastructure market data report. 

Telcos can’t afford a Quantum of hesitation, warns ATIS

Cryptography will crack and algorithms will be eaten

The GSMA’s recent whitepaper on Quantum computing didn’t go far enough to warn telcos of the urgency of preparing for Quantum computing age, according to the Alliance for Telecommunications Industry Solutions (ATIS). In February, the GSMA released an advisory paper, Post Quantum Telco Network Impact Assessment Whitepaper, which outlined the work of governments, standards bodies and telcos in addressing the scale and complexity of the challenge. However, a much more focused paper has been released by ATIS and it has concentrated minds on the dangers of quantum computing to telcos.

Mobile network operators face a difficult challenge as the age of Quantum computing dawns, because the omnipotent power will see right through today’s cryptography, beat security algorithms and consume telco configurations across the world. Though telco strategists might still be processing the implications of all this, while weighing up their other multiple challenges, but they cannot afford a Quantum of hesitation they have been warned. Now is the time to start preparing to make communications services systems quantum safe, said Susan Miller, the CEO and president of ATIS.

The wrong type of Quantum owner could spy, manipulate and steal massive amounts of sensitive and secret data, according to a new report, Implications of Entropy on Symmetric Key Encryption Resilience to Quantum. The report comes from the Alliance for Telecommunications Industry Solutions (ATIS), a Washington DC-based industry body that develops technical and operational specifications and solutions for the ICT industry. ATIS has 160 member companies and is accredited by the American National Standards Institute (ANSI), reports Telecom TV.

The report hints at the futility of using symmetric key cryptography against a quantum computer attack because increasing the encryption key length from the current security AES (Advanced Encryption Standard) of 128 bits to 256 bits never be enough to protect a mobile operator’s systems and data. Symmetric-key algorithms use the same cryptographic keys for both the encryption of plaintext and the decryption of ciphertext. The keys can be identical or may be relatively transformational. In symmetric key encryption, both the transmitting and receiving parties have access to the same secret key, an obvious drawback: But symmetric-key encryption algorithms work well for bulk encryption, hence their use in telecom systems.

Putting this in context, Telecom TV pointed out that in 1996 the Indian computer scientist Lov Grover created an algorithm that could use a brute-force attack on a 128-bit symmetric cryptographic key in about 264 iterations. By today’s standards that equates to more than 18 quintillion (billion billion) processes, or a 256-bit key in roughly 2128 iterations, which is a number with 78 digits. That was the limit of all human imagination, the mathematical equivalent of the IBM executive who said that maybe one day there would be five major computers in the world, and then all society’s needs could be fulfilled.

Grover’s algorithm has been cited by others as evidence that the doubling of symmetric key lengths could protect systems and data against future quantum attacks for at least the next 15 years. The new ATIS study, however, disabuses us of that certainty. In a quantum computing age, there must be absolute, verifiable certainty that the cryptographic secret key generation comes from what is referred to as A Good Source of entropy, one that is sufficient to produce genuinely random numbers able to protect data while it is either in storage or in transit. The higher the quality of random number generation (RNG), the greater the quality of random keys produced, and thus the higher the security value of the key. If it is based on 256 bits, the secret key must be truly random across 256 bits. “Widespread application of quantum computing will not take place for up to 10 years in the future; however, the security implications will be far reaching,” said Susan Miller, the CEO and president of ATIS. Take note of the threats that quantum computing introduces, Miller advised mobile network operators. “Now is the time to start preparing to make communications services systems quantum safe.”

South African ISPs warn against ‘free’ fibre upgrade

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More for the same price isn’t always a bargain in the longer run

The Internet Service Providers’ Association of South Africa (ISPA) has warned network operators not to ‘force’ fibre upgrades on consumers. In a statement, the ISPA said that adverts offering “more for the same price” are good news for most consumers, but upgrades don’t make sense for everyone.

The ISPA represent the interests of more than 220 ISPs. The crux of the matter is, as its statement explains, “Oftentimes, the faster [fibre] service comes at the cost of margins ISPs operate on. [Fibre network operators] can, therefore, directly influence the financial viability of ISPs and the competitive market which has taken decades to construct.”

The argument is that while fibre network providers might claim the upgrades are free, they often erode ISPs’ margins and ultimately vertically integrated fibre network operators and ISPs could put competitors out of business.

No going back

“Many ISPs create and offer cost-effective services for consumers on a limited budget, and it is often those consumers who are casualties of forced service upgrades. A ‘free upgrade’ is not always free to the customer, or the ISP. For some consumers, an upgrade means replacing existing equipment with higher performing equipment that can support the faster speed.

“This upgrade could entail a site visit, equipment cost and provisioning downtime. Worse, if a customer isn’t happy with the automatic upgrade, and wants to downgrade back to the same speed as before, many [fibre network operators] will charge a fee because the customer has (in their view) now downgraded to a slower service. This practice is unfair and hurts those consumers who are already under financial pressure,” it continues in the statement.

Pay less for the same option

ISPA believes that competition fosters an environment where consumers obtain better value and that consumers should always have the right to choose between getting more for the same price, or paying less for the same service.

“While internet access has become a necessity for everyone and is no longer a luxury, many consumers would still welcome the chance to pay less for a service they have.

“Due to high mobile data prices, consumers are often forced to use fixed access last mile services like FTTH or ADSL. Should mobile prices drop to similar levels to that of emerging markets like India, consumers could pay around R3.20 [€0.16] per GB. This could make mobile data a competitive and viable alternative for consumers.”

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