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Meta’s murky métier mars mobile monetisers – legal expert

Warning to CSPs going OTT

The sanctions imposed on Facebook and Instagram publisher Meta could have important implications for anyone publishing mobile internet content, a top technology regulations lawyer has warned. This week Europe’s data protection authorities hit Meta Platforms Ireland with a €390 million ($414m) fine for unlawfully relying on contractual agreements with Facebook and Instagram users.

The social media sites collected their subscribers’ personal information to serve them targeted advertising. Meta’s advertising delivery system has drawn the ire of the privacy protectors to the whole mobile data sector.

“This is very bad news for Meta indeed,” said Eddie Powell, Partner and leading tech and regulatory lawyer at City of London legal firm Fladgate. The Irish data protection commission (DPC) was always going to fine Meta for lack of transparency, said Powell, because it was not being clear with users about the legal basis on which personal data was used.

However, the DPC was overruled by the EU, which determined that Meta’s practice of forcing users to accept personalised ads as part of the Facebook or Instagram service contract, was an additional breach of GDPR. As a result, the DPC has increased its fine to against Meta.

Less attractive to advertisers

The muti-million euro fine will be minimal collateral damage to a company the size of Facebook, but there is a line in the sand for all companies wishing to exploit their mobile data ‘communities’. “The order that Facebook and Instagram users cannot be forced to accept their data being used to serve personalised ads must massively reduce the platforms’ attractiveness to advertisers,” said Powell, “too many users are likely, if given a choice, to decline personalised ads.”

Joe Jones, the new Director of Research and Insights at the International Association of Privacy Professionals (IAPP), warned the DPC’s decisions could be “hugely consequential” for content and communications services providers. “The decisions may serve as a multi-million dollar reminder of the importance of clarity and transparency when giving notice on how personal data will be used,” said Jones. It sheds light on the parameters for their reliance on different legal bases for the processing of that personal data, he said.

According to Reuters, Meta said it will appeal both the substance of the rulings and the fines, and that the decisions do not prevent personalised advertising on its platforms. The order on personalised advertising related to a 2018 change in the terms of service at Facebook and Instagram following the introduction of new EU privacy laws where Meta sought to rely on the so-called “contract” legal basis for most of its processing operations.

Having previously relied on the consent of users to the processing of their personal data for targeted advertising, the DPC said Meta instead considered that a contract was entered into upon acceptance of the updated 2018 terms and that this made such advertising lawful.

“We want to reassure users and businesses that they can continue to benefit from personalised advertising across the EU through Meta’s platforms,” said a Meta statement. The penalties brought the total fines levied against Meta to date by the Irish regulator to €1.3 billion. It currently has 11 other inquiries open into its services.

Verizon aims for lowest CapEx in telco relative to revenue

It plans to cut CapEx by 23% in 2024, shift focus from 5G build-out to sales

Bloomberg reports Verizon Communications’ CEO, Hans Vestberg, saying he expects CapEx to fall by 23% in 2024 as it completes the main 5G network buildout and focuses on sales growth and cash generation.

He said spending in 2024 will be about $17 billion after the peak caused by 5G expenses, speaking at a Citigroup Inc. investor conference. This, Vestberg reckons, will mean that by 2024, Verizon will have “the lowest capital intensity in the industry, in the world,” relative to revenue.

During the 5G buildout, spending on networks by Verizon and its rivals accounted for a higher percentage of revenue than times of less intense investment: Verizon’s CapEx was about $22 billion last year it scrambled to catch up with T-Mobile US’ 5G roll-out.

More information will be available about the operator’s proposed 2023 spending when it reports year-end results later this month. 

Catching up with subscribers?

Although it is the country’s largest operator, Verizon has lagged its competitors in growing its subscriber base in recent years. T-Mobile’s investment in its network and AT&T’s price promotions proved successful at attracting subscribers However, Vestberg said that in Q4, Verizon had a net gain of mobile subscribers.

Its top priorities for 2023 will be to generate more cash and increase average revenue per user, while lowering costs, according to the CEO said. One area particularly expected to contribute to that growth is sales of wireless home internet service, a growth area in the US that is impacting cable companies’ broadband business.

Verizon pulled the plug on its 3G network at the end of last year, behind both T-Mobile and AT&T which shut down their 3G infrastructures earlier in 2022.

Ericsson gets solar boost after gap in its cloud

TelcoDR all over its cloud assets

Ericsson has announced a major new contract to build a ‘net zero’ smart 5G site. The news comes just as it announced a thinning out of its cloud business. Meanwhile, a potential buyer has emerged for its unwanted cloud assets. This week Ericsson announced that it is cutting certain products and will “exit certain subscale agreements” as part of its effort to help its Cloud Software and Services business unit break-even in 2023. The Cloud Software and Services business unit it set up last year has struggled to even break even, reports, reports Telecom TV and the unprofitable venture has forced the vendor to is shrinking the unit’s portfolio and axe its “subscale agreements”.

Though it’s not yet known which lines will be dropped, public cloud expert Danielle Royston said there should be no shortage of potential buyers of Ericsson’s assets. Royston, the acting CEO of Totogi and self-proclaimed public cloud evangelist at consultancy TelcoDR told US news site Mobile World that one vendor’s ‘sub-scale’ would be another one’s stratosphere. “It’s a relative definition; what’s subscale for Ericsson might be at scale for another organisation with a lower cost to deliver,” said Royston. “[It] fully depends on the cost structure and cost to fulfil the commitments of the contract and the organisation on the hook to deliver.”

Buyers for Ericsson’s cloud assets could include other vendors, such as Amdocs or Netcracker, acquisition companies like TelcoDR subsidiary Skyvera and Constellation Software’s Lumine Group or the many vendors looking to invest in the telco sector. Royston offered her expertise to Ericsson. “I’d love to look at the whole lot of products or contracts they’ve deemed subscale [and give a quick valuation for them] to evaluate. I would be happy to do an asset sale or divestiture and would be interested in taking on some of their people as well.”

Meanwhile, Ericsson has clinched business with China Mobile to launch an energy-efficient 5G smart site that pumps no carbon dioxide into the environment, which is the Chinese province of Jiangsu. China Mobile has used spectrum in the 700MHz band for the site and has implemented Ericsson’s power system, enabling hybrid management of solar, grid and battery energy “to achieve the most energy-efficient operation”, reports Telecom TV

Ericsson’s smart solution was used for the launch, it said, claiming to deliver “new levels of quality assurance, intelligent administration of various energy sources, full-stack real-time monitoring, plus intelligent energy and service synergy”. The two companies will also launch an energy-efficient site providing services in the 2.6GHz band in Guangdong.

VMO2 bets big on small cells in City of London

Freshwave runs pilot for concession holder Cornerstone

Virgin Media O2 (VMO2) has signed up to a pilot project run by Freshwave that uses small cells to cut congestion in densely populated areas of a mobile network. “We’re looking forward to going live on the network very soon,” said Paul Broome, VMO2 London & South-East Trial Manager.

The Freshwave small cell project is running in The City, the square mile that comprises the finance district of London. By day options traders, ‘bear skin jobbers’ and other bullish speculators could all lose their fortunes in the time it takes to say ‘latency’, so the area is densely populated with demanding users. Subscribers to EE are already getting the best response ever (hopefully) along Queen Victoria Street thanks to the pioneering work of systems integrator Freshwave, dark fibre provider Netomnia and the UK’s mobile network operators. Vodafone has committed to join the project in April 2023.

Freshwave’s system relieves congestion in busy city centres where the macro site serving that area is packed with traffic. Outdoor small cells, installed on the streets, can process some of that workload themselves, boosting mobile connectivity in densely populated areas. 5G technology is designed to work best with densified networks and these are the first 5G outdoor small cells to be installed in the City of London. Connectivity infrastructure-as-a-service provider Freshwave built new mobile infrastructure in the 10-site pilot to make it shareable and capable of delivering 4G and 5G for all four mobile network operators (MNOs).

EE is now live on Freshwave’s neutral host network, a network sharing infrastructure arrangement aided by a third party. For the pilot Freshwave designed a network that accommodates all four mobile network operators on 4G and 5G, with no adjustments to the infrastructure needed. This is the first of its kind in the UK. The system comprises specially designed wideband antennas, cabinets and columns and large amounts of dark fibre to each cabinet.

This multi-operator outdoor small cell network is the culmination of over two years of Freshwave’s close collaboration with all four MNOs and other industry partners. The pioneering network’s shareable infrastructure avoids equipment and infrastructure duplication, making it cheaper to run, while minimising street clutter and the disruption that street works cause during installation. “The City is already a global business hub and this mobile connectivity will play an important part,” said Graham Packham City of London Corporation Streets and Walkways Sub-Committee Chairman. 

Sharing infrastructure cuts the environmental impact while improving connections. The network uses a centralised radio access network (C-RAN) which keeps its kit in cabinets, rather than on streets. The C-RAN is linked by dark fibre from wholesale fibre broadband operator Netomnia. “Shared infrastructure is the logical evolution in telecoms as cities become more connected and smarter,” said Simon Frumkin, Freshwave’s CEO. Companies like Freshwave that offer neutral hosting will expedite connectivity for everyone because it’s cheaper, greener and less disruptive.

Sky will fall in if Big Tech pays fair share on telco costs warns Euro-IX

Group of European ISPs says this approach could create systemic weakness in critical infrastructure

A group representing internet service providers across Europe has warned that a proposal to make Big Tech companies pay towards telecom operators’ running costs could create systemic weakness in critical infrastructure.

The dramatic claim is the latest foray in a long running propaganda war as European telecom operators seek what they say is a fair recompense for their investment in the networks that create wealth for a cartel of content providers. There is an argument that Big Tech expects free and fair access to facilities that it doesn’t extend within its own domains.

Sixteen top telecom operators including Vodafone, Deutsche Telekom and Orange have asked the European Union for new laws to make US tech firms like Alphabet’s Google, Meta’s Facebook and Netflix bear some of the cost of building Europe’s telecoms network, since they are the main benefactors.

Promised consultation

In September, European Commission’s industry chief Thierry Breton promised a consultation on fair share payments in early 2023, in order to frame suitable legislation. But now, reports Reuters, they are meeting resistance from within. The European Internet Exchange Association (Euro-IX) claims the proposals could compromise the quality of service for internet users across Europe.

In a further projection on behalf of big tech, they claim that asking Google and co to pay for services could “accidentally create new systemic weaknesses” in critical infrastructure. These claims have been compiled in a letter addressed to the European Commission’s industry chief Thierry Breton and the Executive Vice President Margrethe Vestager.

“The internet is a complex ecosystem, and it is policy-makers who are ultimately responsible for systemic effects resulting from policy choices,” wrote Bijal Sanghani, managing director of Euro-IX. Sanghani, adding that legislators should not prioritise “administrative rules [over] technical necessity or a high-quality internet” for those in Europe.

Critics of the proposed SPNP (Sending Party Network Pays) model have warned the so-called “traffic tax” could lead content-driven platforms like Facebook and other social media platforms to route their services via ISPs (internet service providers) outside of the EU.

Possible knock-on effects

This could have a knock-on effect for users in Europe, with platforms potentially compromising quality and security for the sake of avoiding fees, claimed Euro-IX. Alternatively, ISP’s could pay the fees, but pass the costs onto end-users. Opponents also argue the proposals undermine the bloc’s rules on net neutrality, under which ISPs cannot block or throttle traffic to prioritise some services over others.

In June, digital rights ‘activists’ warned that introducing SPNP rules “would undermine and conflict with core net neutrality protections” in the European Union. In other markets, such as South Korea, the champions of digital rights have turned out to be sponsored by Big Tech companies.

In a letter signed by 34 NGOs from 17 countries, critics said telecom companies were already compensated by their own customers, and accused them of pushing for charges on traffic usage because “they simply want to be paid twice for the same service”. The European Commission has offered no response so far.

KPN acquires integration and data management firm Itzos

The newly purchased unit will operate within the Dutch operator’s KPN Health unit

KPN has purchased Itzos, a specialist in integration and data management solutions for healthcare, for an undisclosed sum. It will run as an independent company within KPN Health following the purchase with the current management team in place for now at least.

KPN’s strategy is to connect data between different healthcare systems to make collaboration and information sharing easier. KPN Health Exchange is designed to enable healthcare organisation to make information accessible to patients, healthcare professionals and eHealth applications, securely and in a uniform manner.

Demand for data exchange

Vinood Mangroelal, Director of KPN Health, commented, “KPN and Itzos have been working together for some time on the KPN Health Exchange, with Itzos mainly focusing on data management and integration…with Itzos, we see opportunities to respond even better to the increasing demand from the market for digital data exchange that contributes to the further digitisation of healthcare.”

A report just by IMARC Group predicts that the global IT eHealth market will grow at 21.1% CAGR between 2022 and 2027 to reach $255.3 billion.

Canadian wholesale service provider moves into Kenyan market

Iristel offers local phone number coverage to OTTs and voice service providers

Iristel, an international telecoms service provider headquartered in Canada, is to expand into Kenya, its first African market. This is part of its wider strategy to enter “emerging markets”.

Iristel’s voice service offers a facilities-based local phone number coverage and inbound voice origination service that enables over-the-top (OTT) and voice service providers to offer voice and messaging services to businesses or consumers.

Aggregation

The wholesale service aggregates calls to phone numbers managed by Iristel and hands them off to single or multiple customers’ IP addresses. Iristel’s customers can use this service to deploy primary line voice services to consumers, to offer cheaper toll-free numbers using local numbers that also provide a local touch, or to create new mobile or OTT-based applications for consumers.

Iristel claims to offer service providers almost total local service reach, network scale and routing flexibility. It will initially offer its wholesale services then expand its product offering over the coming months in Kenya, enabling customers to purchase session initiation protocol (SIP) trunks, which can be aggregated with the company’s on-net footprint, and numbers for direct inward dialling (DID).

SpaceX raising $750 million to boost Africa and Middle East comms

What’s good for Musk is good for MEA

Satellite internet company SpaceX is raising an extra $750 million from investors which could benefit Africa and the Middle East with more broadband options and wider mobile coverage. 

The new round of funding values the company at $137 billion, according CNBC sources. According to an e-mail sent to prospective SpaceX investors, Andreessen Horowitz, AKA a16z, is the mooted leader of the new funding round. Early SpaceX investors were numerous and included Founders Fund, Sequoia and Gigafund. SpaceX raised more than $2 billion in 2022, including a $250 million round in July and was valued at $127 billion during an equity round in May.

Though SpaceX made great progress in 2022 it was frustrated by delays to its Starship programme, which is part of NASA’s effort to bring astronauts back to the moon. Funding from its NASA contracts keep the company in business. However the company’s satellite internet service, Starlink now has over 1 million subscribers and provides a lifeline to users in Ukraine who suffered infrastructure disruptions after Russia’s invasion. SpaceX, the pioneer of the circular economy in the space exploration sector, also managed to make more than 60 reusable rocket launches in a single year through its Falcon programme.

The company is currently continuing development of its Starship and Super Heavy launch vehicles at the company’s Starbase facility in Boca Chica, Texas. The next step of the program, which entails an orbital launch test of these larger vehicles, has yet to be announced.

NASA administrator Bill Nelson has begun to register his unease with founder SpaceX figurehead Elon Musk’s commitment. He has asked SpaceX president and COO Gwynne Shotwell about distractions, such as Musk’s takeover of twitter and subsequent revelations about the FBI’s political interference in the US elections. Nelson said he was worried that Musk’s other commitments might affect SpaceX’s work with the space agency, NBC News reported. Nelson said that Shotwell reassured him it would not.

However support looks guaranteed for now. NASA is now considering whether SpaceX can help rescue residents on the International Space Station, including an astronaut and two cosmonauts with Russia’s Roscomos, according to CNET. Russia’s Soyuz capsule sprung a coolant leak in December, and an investigation is underway to determine if the spacecraft can safely return the crew home or if emergency measures will need to be taken instead.

Telefónica ends 2022 with 5G covering more than 83% of Spain’s population

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Telefónica also successfully bid for double the 2.6GHz spectrum in the December auction

Telefónica’s 5G coverage in Spain now exceeds more than 1700 municipalities and equates to coverage for more than 83% of the population.

The operator highlights that 300% more 700MHz nodes were installed in 2022 compared with 2021 after the frequency was made available by the Ministry of Economic Affairs and Digital Transformation last February.

This exceeded its own coverage forecasts in the “so-called low band” which support wider coverage, including indoors, and some 5G characteristics like lower latency. Telefónica was awarded 1 block of 2×10 MHz in the 700MHz band for payment of €310.09 million.

The municipalities with coverage range in size from 100 to more than 20,000 residents.

Telefónica says its 700MHz band capacity perfectly complements its 3.5GHz band capacity which it has used to provide coverage to more than 300 municipalities, which saw an increase of 375% throughout 2022. The 3.5GHz-based services provide higher transmission speed, but across shorter distances and the signals are not so good at penetrating obstacles like buildings.

Final spectrum blocks

In December, Telefónica completed its 5G spectrum allocation by acquiring five blocks of 200MHz in the 2.6GHz band for € 20 million – winning double the spectrum of its next nearest rival at the spectrum auction.

Still, Spain’s Ministry of Economic Affairs and Digital Transformation only raised a total of €36.2 million from the auction, which was about 30% less than the €56 million it had initially expected. In the event, the national mobile operators only bid for nine of the 12 allocations on offer.

The Ministry also only received one bid for the 38 regional spectrum auctions.

The mobile operators had voiced concerns ahead of the auction that it was too soon as the 200MHz ecosytem is so immature.

The 200 MHz will be deployed in 2023 for use cases requiring high speeds and lower latencies, in consumer and industrial sectors.  

Javier Gutiérrez, Director of Network Strategy and Development of Telefónica Spain, comments, “In a way, we can say that we have reached “cruising speed” in the deployment of 5G in its dedicated bands”.

Azure to give 5G operators a better RAN for their money

It’s all in the telemetry

Mobile network operators could soon be given better options for managing their Open RANs from cloud operator Azure. The engines of 5G networks on the telco cloud could be more finely tuned by more intelligent control of their Open radio access networks (O-RANs), thanks to better reporting on the state of the network.

The improvement comes as Microsoft Azure is editing its RAN intelligent controller (RIC) for Open RAN systems so that detailed internal states and telemetry can be instantly extracted by RAN software for new RAN control applications, reports TelecomTV. It gives telco cloud operators better monitoring and management options for managing their performance.

In his blog, Yousef Khalidi, corporate vice president at Azure for Operators, claims this newly developed technology could be blended with detailed platform telemetry to make network monitoring better for operators, which could makes for better performance optimisation of their 5G networks. “[It would] enable new AI, analytics and automation options that were not possible before,” said Khalidi. 

Microsoft is working on RAN Analytics and Control technologies for virtualised RAN running on Microsoft Edge platforms. The goal is to empower any virtualised RAN system maker or mobile operator to get the best out of its disaggregated and programmable networks. “We aim to develop platform technologies that virtualised RAN vendors can use to gain analytics insights in their RAN software operations,” said Khalil.

Microsoft recently introduced flexible, dynamically loaded service models to both the RAN software stack and the cloud/edge systems hosting the RAN, to speed the pace of invention in Open RAN. According to the blog, the current standard effort of O-RAN by the O-RAN Alliance specifies the RAN Intelligent Controller (RIC) architecture that exposes a set of telemetry and control interfaces with predefined service models (known as the E2 interface). Open RAN vendors are expected to implement all E2 service models specified in the standard. Near-real-time RAN controls are made possible with xApp applications accessing these service models.

Last year Microsoft, Intel and Capgemini, jointly developed an analytics and control approach that was acclaimed by Light Reading editors as an outstanding use case for Service provider AI. The full blog is available here.

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