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Never mind the CPU check the ARPU, Totogi CEO tells telcos

Board the cloud or miss the market

Telcos must value their customers more and their machinery less, Totogi founder Danielle Royston is to tell the MVNO Summit at Mobile World Congress. The ARPU, average revenue per unit, of every customer is directly related to the vendor’s empathy for them, according to Royston. Small start up telcos that address specific niches, such as Smarty in the UK, make their money by fulfilling a specific need, such as cheap calls. However, price is a race to the bottom, warned Royston, so telcos need to find out what other qualities that the customers cherish and give it to them. In order to operate in this high-quality market, they need to know their customers better. But the requisite ‘data driven innovation’ is only possible on new systems that could take years to build. 

Though the move to the public cloud in the telco industry is well underway, many old school telcos and even MVNOs are hesitating to liberate themselves and throw their workloads to the public cloud. The delay in adopting cloud-native applications will result in a loss of competitive market share and stop them benefitting from the next wave of innovation in smarter data use and artificial intelligence (AI) within the industry, Royston warned.  

“Telcos must invest in creating value with data rather than devoting time and resources to in house computing,” said Royston, “It takes a telco up to two years to transform its technical apps for the public cloud. To take advantage of the next wave of ARPU growth, the industry needs to embark on the journey now.”

One of the big challenges is attracting and growing a loyal customer base. Traditionally, telcos have used the advent of a new network generation to grow ARPU but 4G and 5G failed to deliver on the promises to investors in the telco. MVNOs in competitive markets use lower prices, which resulting in even less loyalty and higher defection rates. “Both of these types of organizations must look to new methods, like using AI and machine learning to develop new, innovative ways to grow their business,” said Royston.

Telcos must use analytics to personalize the subscriber experience but that calls for create real differentiation, according to McKinsey Partner Ferry Grijpink, founder of the McKinsey Center for Advanced Connectivity. The great benefit of cloud systems is that you can try out hundreds of options until you find the right one. “Telcos have historically relied on long planning cycles to develop offers and plans to increase ARPU, but advancements in predictive AI and ML offer an untapped opportunity to programmatically design personalized next-best offers,” said Royston.

Despite the abundance of subscriber data available most telcos are unable to effectively use this data. This is because their clunky, vendor-specific data models restrict access to instant insights. You can’t tailor the perfect outfit without constantly making adjustment, warned Royson. “Once you understand your subscribers, you can tailor their experiences and create offers that create affinity. Switching from commoditisation to building loyalty will change behaviours and the way people think about telecom,” said Royston.  

MWC’s inaugural MVNO Summit in Barcelona is on March 1 between 4 – 6:30 pm CET. After Totogi will host an exclusive after-party at the notable music venue, Luz De Gas.

Tech recruiters shun those who think differently – report

They talk diversity, but act proprietary

The telecoms industry is too obsessed with proprietary thought processes and could benefit from an open-source approach to human capital, according to a new report from talent spotter Sparta Global. The report author, which describes itself as a ‘leading hire-train-deploy company specialising in the provision of emerging business and technology talent’ has released a report suggesting that neurodiverse people can bring new and desperately needed perspectives to the sometimes myopic world of technology. While that’s not news, the report’s exposure of double standards is.

The telecoms industry pays lip service to an ‘open source’ culture in talent recruitment, but the survey results show that 79% of company bosses are strictly proprietary. This narrow focus means that the UK economy, for example, will struggle to close its technology skills gap. The report estimates the human resources supply-demand chasm at around 900,000 units. 

The digital skills gap in the UK is a case in point for the report writers. The shortage of people who can think creatively and solve problems is stifling UK employers and slowing the economy. Sparta Global claims its research proves that companies attract and retain ‘neuro-inclusive’ digital teams are more likely to get a lead on rivals over areas like computational thinking, observation, adaptability and intuition. 

Most bosses paid lip service to the issue while doing nothing to change their actions. Though 87% of digital leaders surveyed called neurodiversity ‘a top priority’ in 2023 awareness has not equalled change. The report notes that 54% of bosses said Covid-19 ‘accelerated conversations’ around commitment to neurodiversity but 79% admitted they’re not changing their recruitment policy. “I had no idea that we would receive such overwhelming and honest feedback,” says David Rai, Sparta Global CEO. 

83% of neurodivergent workers surveyed reported feeling worried, nervous, and fearful about having conversations with their employer regarding their neurodiversity. Crucially, 59% of respondents feel that there isn’t enough support available in their organisations, and fear that disclosing their neurodiversity may have negative repercussions on their future within their companies.

Neurodivergent employees are a demographic in evolution, the report says. Though the release about the research does not give the study’s definition of the term Neurodivergent, it alludes to people whose brain processes information in non-standard routines. This means that they can be diagnosed as suffering from medical disorders and learning disabilities merely because they don’t see the world from the perspective of the majority. 

Only 26% were recognised as neurodivergent in childhood, meaning that education was not geared to the way they handle information. Of all the business sectors, the computer industry should the GIGO Principle, AKA garbage in equals garbage out, that means all performers can only work with the material given to them. A neuro-divergent person will excel at certain jobs that the majority struggle with, which is why Britain’s intelligence agency employs neuro-divergent talent in its security department, where tenacity is a valued commodity in its human resources.

Britain’s neuro-diverse population may lie undetected, says the report, since 31% were diagnosed as adults. A further 15% told researchers that they are currently undergoing a diagnosis, while 28% are planning to seek an assessment in the future.

“I hope employers, educators, and those outside of our established network, can glean insight, knowledge, and practical advice from this report,” said Rai.

Sparta Global’s 2023 EqualTech report is based on a survey of 500 senior and C-suite individuals.

LotusFlare Telco Business Innovation Survey 2023

It’s Euro Telcos versus Big Tech – the rematch

EU sets up 12-week consultation

The European Commission has launched a consultation on the future of Europe’s telecoms sector, starting a process that could result in Google, Apple, Meta and Netflix having to pay some network costs. Meanwhile the EU is seeking feedback on this multi-levelled issue: however critics say every complex problem has a solution that is simple, neat and impractical. 

For over two decades Deutsche Telekom, Orange, Telefonica, Telecom Italia (TIM) and other operators have lobbied for leading technology companies to contribute to 5G and broadband roll-out, Reuters has reported. The telcos have presented the case that since the likes of Amazon and Microsoft have accounted for more than half of all the data traffic across their networks, these companies should pay toward the investment they made. The tech firms counter argue that this is effectively an internet tax that will undermine EU network neutrality rules, by failing to meet the brief of treating all users equally.

A 12-week consultation is currently addressing the question: Should businesses be able to recover their costs and if so, how?  The inquiry is due to conclude on May 19. EU industry chief Thierry Breton cited the heavy investments required to roll out 5G and broadband, saying he was not targeting any company. “The burden of these investments is heavier and heavier. And that is in part because of a low return on investment in the telecoms sector, the increase of the cost of raw materials, and the world geopolitical context, the cost of energy, of course, because that has a big role to play,” Breton told a news conference, “I want to say right away, that all of this reflection isn’t aimed against anyone at all, rather it’s for our fellow citizens.” 

Breton said a contributions mechanism could be one of the solutions. According to a document seen by Reuters last month, respondents will be asked whether large traffic generators should be subject to a mandatory mechanism of direct payments to finance network deployment and also whether the EU should create a continental or digital levy or fund. “We hope to move very quickly so that in the summer we can come back with conclusions and then we will see what we do to continue to make progress,” said Breton.

Any legislative proposal will need to be agreed with EU countries and EU lawmakers before it can become law. “This consultation is a positive and urgent step towards addressing major imbalances in the internet ecosystem to the benefit of European end-users,” said the telecoms industry lobbying group ETNO in a statement. However the Computer & Communications Industry Association (CCIA) has criticised the proposal. “Europeans already pay telecom operators for internet access, they should not have to pay telcos a second time through pricier streaming and cloud services,” said Christian Borggreen, CCIA Europe’s senior VP.

Vodafone Deutschland acts to improve customer experience

Even the former CEO criticised the German market’s performance

Tech Mahindra and Vodafone Germany have extended their partnership to improve the operator’s sales and customer experience processes.

As a part of the multi-year engagement, Comviva, a Tech Mahindra company, will deliver a unified sales solution across Vodafone Germany’s mobile, fixed, cable and TV businesses.

The relationship began in 2019 to upgrade assisted sales. The expanded partnership will seek to improve self-service digital sales channels and integrate the entire buying experience.

Poor performance

Vodafone’s German operating company has been criticised for poor customer service, including by its own former CEO, Nick Read, who stepped down in December. Commenting on the fiscal year that ended in March 2022, he blamed factors for declining profits in the Germany over the previous 18 months on ongoing issues with customer support systems and less busy retail outlets.

Vodafone Germany is the group’s largest European market, accounting for 30% of the group’s service revenue. In November 2022 Vodafone Group lowered its outlook for the fiscal year that will finish at the end of March as its German market profits for H1 fell by 7.4% to €2.86 billion, which in part was due to losing broadband customers and higher acquisition costs.

Exploring new alleys

Comviva has deployed its BlueMarble platform for Vodafone, which it has implemented in other markets for digital commerce, catalogue, order management and customer care. The first phase of the engagement focused on creating a unified platform to provide a 360-degree view of the customer across telesales and retail operations.

The second phase will extend the convergence to digital channels so Vodafone Germany can offer more on-demand, personalised bundles across every customer channel.

Ulrich Irnich, CIO at Vodafone Germany said, We are a customer-obsessed organisation. Our expanded partnership and choice of ODA-compliant cloud-native Comviva platform will enable us to enhance the customer experience even further, driving personalisation at scale and further optimising experience across online and in-store.”

The ODA to which he refers stands for TM Forum’s Open Digital Architecture which the Forum describes as, “a standardized cloud-native enterprise architecture blueprint for all elements of the industry from communication service providers.”

Irnich continues, “The new solution shall help us align teams around a single view of the customer, with insights and activation capabilities that will make experiences even more seamless, connected and relevant.”

Ongoing quest for omnichannel

Manoranjan (Mao) Mohapatra, Chief Executive Officer at Comviva said, “Today, customers use a variety of touchpoints to engage both digitally and offline and a unified integrated customer experience across all channels is paramount.

“Our partnership shall deliver a more comprehensive view of customer journeys and enhanced omnichannel experiences…this partnership… shall serve as a great foundation for personalization efforts, while also empowering organizational efficiency.”

Expeto makes NeXtwork of the connected car’s lack of self control

One pane, giant gains

Automotive OEMs are struggling to control their connected cars because the plethora of networks they have to cross presents them with too many decisions to make over too many sub-systems, stacks and security snags. It’s like trying to configure a four wheeled data centre on the fly as it cruises through a mish mash of of 4G, LTE and 5G networks, according to integration specialist Expeto, which claims it can end the nightmare with its ‘open and extensible’ Enterprise First NeXtworking for Connected vehicles system.

Today’s connected car has essentially become a rolling edge server with hundreds of individual sub-systems, said Brian Anderson, VP of Product at Expeto. Many of those sub-systems need connecting to services hosted in the cloud. Expeto’s unified control plane allows an automotive OEM to configure and monitor the complicated data paths between each of those sub-systems and associated backend services, many of which are hosted in different cloud locations. This takes the connected car way beyond their starting point and their legacy connectivity systems lack the vision needed for self-service networking control.

Expeto’s solution is to support a range of enterprise mobile networking needs. It can, for example, dynamically create new subnets and policies for each connected application, such as quality of service over a single SIM/vehicle embedded Telematics Control Unit (TCU). It can also specify deterministic data paths for each car application to a separate cloud location. This lowers the lag in time sensitive applications like HD mapping and complies with privacy policies. It solves many technical problems, but its biggest impact is the simplicity it brings by the unification of information. The system will be updated through ‘Over the Air’ software upgrades that will also keep abreast of evolving threats. 

The problem facing automotive OEMs is that they are trying to fight today’s connectivity battles with the tactics, tools and intelligence of previous conflicts, according to Expeto CEO Michael Anderson. They will have bought managed SIM card services for their Internet of Things but these were strictly regional, which was fine for the days when a connected car just wanted news, views and maintenance. These services were only as good as the service team at the mobile operator, who in turn faced a huge job launching and running network layer application performance and cybersecurity in areas that mobile networks hadn’t gone before. 

As the connected car found more uses it became ‘mission critical’. So automotive OEMs needed to see everything that was happening as these four-wheel data centres crossed 4G, LTE and 5G public networks across the world. “Medium to large enterprises need the speed, reach and scale of cellular without compromising on control, agility and integration with IT and OT frameworks,” said Expeto CEO Michael Anderson, “[these are now supporting] the mission critical applications that matter for their business.”

Anderson summarised the offering as ‘one global network, one SIM card, managed from behind the enterprise firewall.’ Expeto partners with mobile network operators so they can use it to ‘monetize their 5G and Edge investments to deliver mission critical connectivity and compute’, said Anderson. “With Expeto and partners like Dell and various MNOs, we enable mission critical 4G and 5G connectivity customers to extend their existing networks and control uniformly across facilities and systems.”

Expeto CEO Michael Anderson will discuss automaker connectivity needs in the That’s My Slice session scheduled during MWC Barcelona next week. 

BT finally moves towards offloading Sport

The UK operator will receive £633 million from joint venture partner

BT Sport is changing its name to TNT Sports from July after the UK operator finally managed to pull off a deal. It is forming a joint venture with media conglomerate Warner Bros Discovery (WBD) in a deal from which BT will receive £633 million.
 
In March 2022, BT Sport made an operating loss of £222 million and the WBD joint venture was announced in May 2022, in preference to a deal DAZN with whom it had also been in talks, as well as Amazon, Disney and the UK’s ITV.
 
BT has been trying to exit the sports broadcasting market since 2021.
 
The joint venture will combine BT Sport and Eurosport programming. The TNT brand is already used as its sports broadcast brand in Latin America and the US.

Unhappy history
 
The Eurosport pay-TV channel was launched in 1989, when Rupert Murdoch launched SkyTV. WBD has the option of taking full control of the joint venture up until September 2026 and acquired a 20% stake in Eurosport in 2012 before assuming full ownership from French media group TF1 in 2015.
 
BT Sport was launched in 2013 with the aim of ending Sky’s dominance of the pay-TV market for sport in the UK by BT’s then CEO, Gavin Patterson shortly after his promotion to that office. BT then paid £900 million for exclusive rights to Champions League games which boosted its customer base to 4 million viewers, but continued to make a loss.
 
In 2017, after a war of attrition with Sky, the two came to a cross-licensing agreement which undermined BT Sport’s raison d’etre.
 
The Financial Times [subscription needed} reported in April 2021, when BT announced it was looking for an exit out of the market, that although it had fewer than 2 million subscribers, it cost about £800 million annually and overall was estimated to have cost BT £2 billion.
 
Marc Allera, head of BT’s Consumer business commented that the deal was a logical step adding, “Once launched, it’ll become a hugely exciting new premium sports offering for customers”.
 
TNT customers in the UK and Ireland will be offered coverage of the Olympic Games, the Premier League, UEFA Champions League, UEFA Europa League, Premiership Rugby, MotoGP, UFC, Boxing, WWE, tennis Grand Slams, cycling Grand Tours and winter sports.

Nokia and Broadway Partners connect the isolated in Wales and Scotland

Fibre in hills and glens

Specialist rural broadband provider Broadway Partners has teamed with comms equipment giant Nokia to bring broadband connections to isolated areas across Wales and Scotland.

Their joint mission was part of the Broadway’s Project Gigabit to connect the rustic areas of Wales and Scotland. Nokia provided a range of systems including Nokia fibre access nodes for an exchange and its WiFi6 Beacons, which broadcast fast, reliable broadband signals into homes and businesses. “Connecting rural communities is the lifeblood of Broadway, and we need partners that understand our mission and dedication to delivering that to our customers across Wales and Scotland,” said Broadway Partners CEO Steve Haines. 

Haines praised Nokia’s understanding of the service needed by the community in order to meet its challenges: “Working with Nokia has been an essential part of our delivering connections to areas including the Isle of Arran and Powys, Pembrokeshire and Monmouthshire in Wales,” said Haynes. “We are excited to continue collaborating in 2023, and to helping deliver more connections and fibre broadband using its technology within our fibre infrastructure.”

The new business partnership was celebrated in person with a key discussion between senior management from both Broadway Partners and Nokia. Broadway highlighted key areas of growth for 2023 and the regional roll out plan across the full Broadway team. Meanwhile, Nokia gave details of a planned solution to the challenges faced by the Northern Lot of Scottish R100 including its product development focus.

“We are proud to partner with Broadway to help them deliver connections across Wales and Scotland and to see our technology being put to effective use in rural communities, even in the hardest to reach areas,” said Nokia UK CEO Phil Siveter. “Having quality broadband is an essential part of everyday life, and we know how much it will mean to many of these communities, residents and businesses to be able to access quality fibre broadband as a result of the work that Broadway delivers.”

Broadway is investing in Fibre to the Premises (FTTP) gigabit-ready infrastructure and will connect communities across rural areas of Wales and Scotland, it said. The areas already undergoing connections include the Isle of Arran off Scotland’s West Coast (see picture), Pembrokeshire, Monmouthshire and Powys in South and Mid Wales.

Italian government wants more time to consider KKR netco bid

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The deadline has been moved to 24 March

The Italian government has asked the private equity firm KKR to give it four more weeks to consider the investor’s offer for Telecom Italia’s (TIM’s) netco

KKR has agreed and the deadline has been moved from 24 February to 24 March. TIM said in statement that the government wants to “carry out an analysis of the public aspects of the transaction concerning the powers exercisable by the government in the sector,” noted TIM in an announcement.

TIM’s planned board meeting on 24 February will go ahead to “discuss KKR’s non-binding offer and take the appropriate decisions”. No official value has been set for KKR’s bid but it rumoured to be about €20 billion. 

Previously the government has said it wants what it describes as critical infrastructure to pass into public ownership, while there are a number of other interested parties and shareholders involved.

Strategic imperative

Although she did not make any direct comment about TIM, last week at Capital Markets Day, Orange’s CEO, Christel Heydemann, probably spoke for many in Europe when shestressed the importance of regulation and the strategic value of telecoms infrastructure.

She said, “People are realising what’s happening, which is that some traditional operators cannot [afford to] invest in infrastructure anymore… So many infrastructure firms are coming to invest, to acquire the infrastructure.

“Obviously tech players are capturing some value, but what’s going to happen in five to 10 years if we actually don’t know who owns the infrastructure that is so critical for the security and resilience of Europe? This is a political debate. This is not for us as companies to decide, but this is where we all have a strong voice – as European leaders we need to change something.”

Like many others in the industry, she is pinning her hopes on the European Commission’s imminent consultation on cross-border mergers and acquisitions, and the possibility of Big Tech contributing to telecoms capex. She added, “Again, the objective is to make sure we can, for the long term, continue to invest in our infrastructure and understand who owns the infrastructure”.

It remains to be seen if the Italian government will plump for euros now instead of control of one potentially of the biggest drivers of its economy and security.

Orange, Vodafone to share Open RAN networks in rural areas

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Cooperation will be in within European countries where both have networks

Orange and Vodafone have agreed to build an Open RAN with RAN sharing it in rural parts of Europe where they both have mobile networks. This is the first such agreement between the two.

The first commercial sites to be deployed under this agreement are scheduled for this year in a rural area of Romania, near Bucharest. They will provide “an initial real-life experience of this new operational model” based on the integration of multi-vendor hardware and software, paving the way for wider scale deployments, according to their joint statement.

Orange and Vodafone are individually selecting strategic vendors for this initial build phase. Testing the Open RAN solution on a live network will continue throughout 2023, allowing a like-for-like comparison with legacy networks. The aim is to confirm the feature and performance parity between Open RAN and traditional RAN solutions, before expanding the Open RAN sharing blueprint to other markets. 

Commitment to being open

Today’s announcement reinforces the companies’ commitment to Open RAN as the technology of choice for future mobile networks across Europe. Both were also involved in the pledge to build their support for Open RAN this year with a focus on the areas of maturity, security and power efficiency, along with Deutsche Telekom, TIM and Telefónica.

The five also published a white paper on those topics, available from here.

Last year the five signed a Memorandum of Understanding MoU in support of Open RAN in Europe back in January 2021. The companies’ commitment to Open RAN also supports the European Commission’s ambitious target to have 5G in all populated areas by 2030.

The agreement between Vodafone and Orange should give each greater flexibility when adding new radio sites or upgrading existing ones, while keeping the cost and energy consumption low. This model will serve as a blueprint to extend 4G and 5G networks to rural communities across Europe. 

Michaël Trabbia, Chief Technology and Innovation Officer at Orange, said: “Romania…is a significant milestone on the road to wide-scale open RAN adoption across Europe. It is a major step towards agile and fully-automated networks, unleashing the potential of virtualisation and AI to boost performance while driving both infrastructure and operational costs down.

“In particular, Open RAN is a great opportunity to take network sharing to a whole new dimension, with even higher operator differentiation thanks to the ability for each of the partners to tune its network more independently according to its promises towards its own customers.”

New software on old hardware

Alberto Ripepi, Chief Network Officer of Vodafone, said: “By combining resources, we will reduce the cost of hardware, minimise fuel consumption and the need for duplicate sites whilst eradicating coverage not-spots. 

“Open RAN also means we can more quickly add new software features without necessarily replacing the hardware components, which is often the case today. This minimises any disruption to service and ensures customers in rural areas receive the same upgrades as those in the cities.” 

Under existing sharing agreements one operator is typically responsible for all the component parts of a shared site, with both operators using the same RAN vendor or software release, and life cycle management. 

Each company can tailor services and capacity to their specific customers’ needs, while ensuring strong and secure isolation between each operator’s data. This is in line with the priorities that have been developed under the MoU signed in early 2021, referenced above.

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