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AI – the Ultimate Driver of Network Sustainability | White paper by COMARCH

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AI – the Ultimate Driver of Network Sustainability | White paper by COMARCH

Unlock the future of sustainability in telecommunications with our latest white paper, “AI – The Ultimate Driver of Network Sustainability.” This essential guide delves into the pressing challenges of climate care within the telecom industry, highlighting the urgent need for proactive energy management strategies that align with increasing consumer and regulatory demands for sustainability.

In this white paper, discover how AI-driven solutions can optimize electricity consumption, allowing for dynamic management of network resources. By utilizing advanced analytics, telecom operators can deactivate unnecessary base stations during periods of low demand, significantly reducing emissions while maintaining service quality. Moreover, we explore the transition to renewable energy sources, addressing the opportunities and obstacles arising from evolving energy needs.

Equipped with AI technology, companies can also efficiently manage cooling systems in data-heavy networks, conserving vital resources such as water. Our publication emphasizes the importance of intelligent network management, demonstrating how automation can reduce environmental impact without sacrificing service reliability.

“AI – The Ultimate Driver of Network Sustainability” is a must-read for telecom operators looking to enhance their environmental responsibility while optimizing operational efficiency. Download your free copy today and take the first step towards a greener, more sustainable telecommunications landscape. Join us in exploring how AI can transform your approach to sustainability and lead the industry into a new era of responsible service delivery.

DOWNLOAD NOW

Bartolo named as CEO of Ericsson’s telco API venture

Simon Dux
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Bartolo named as CEO of Ericsson’s telco API venture


The venture also gets a new name, Aduna, to signify its many members acting as one – in theory

Last September, some of the biggest telcos in the world backed Ericsson’s plan form a new joint-venture company “to accelerate adoption and innovation of network APIs” and basically try to work out how to monetise them. The company was announced at the time to be owned by Ericsson (50%) and the telco partners (50%) and today it finally has a name, Aduna, derived from the Latin word for many entities uniting as one.

Somewhat unsurprisingly, 30-year veteran Anthony Bartolo has been named as its new CEO. Unsurprising because Bartolo was most recently chief operating officer at Ericsson’s Vonage which has been working with some of the telco members already to build an API ecosystem. However, an ecosystem needs hundreds of telcos using it and Aduna has the task of making this happen.

Bartolo also served at Bandwidth and prior to that, he was executive vice president and chief product officer at Avaya, where he led the transition to a software as a service-based business model. Before that, he held several executive roles at Tata Communications, including president of mobility and chief product officer. 

Aduna will combine and sell network APIs globally, with a vision that new applications will work anywhere, and on any network, paving the way for developers to innovate much more quickly and easily. This is a glaringly easy thing to say but a fiendishly difficult thing to execute. Operators tend not to collaborate well but today, there is a greater urgency in finding ways to better monetise 5G network investments. The involvement of so many large telcos, plus Vonage and Google Cloud proving access to their respective ecosystems of millions of developers, suggests that while Aduna may not be the answer, it will move the industry closer to asking the right questions. 

The newly formed company will provide network APIs to a broad ecosystem of developer platforms, including hyperscalers, communications platform as a service (CPaaS) providers, system integrators and independent software vendors, based on existing industry-wide CAMARA APIs – the open-source project driven by the GSMA and the Linux Foundation. 

It will be interesting to see how many new telcos join. In September Three Sweden (Hi3G Access) was named as a potential member but one telco a quarter is not going to give the project the momentum it needs to become the de facto ecosystem. Aduna’s initial partners include: América Móvil, AT&T, Bharti Airtel, Deutsche Telekom, Orange, Reliance Jio, Singtel, Telefonica, Telstra, T-Mobile, Verizon and Vodafone. But each of them already has API platforms, tools and approaches which will need to be coordinated so the resulting Aduna APIs avoid the risk of becoming bogged down. 

That said, if customer get a consistent set of CAMARA APIs, delivered on Open Gateway principles and by a much larger cohort of global developers, it stands to reason that we’ll see more innovation than in the past.  

Venture closing this year

Bartolo will assume his responsibilities as CEO on 20 January 2025. The closing of the venture is expected later this year, subject to regulatory approvals and other customary conditions.

“Aduna is at the forefront of the next technology wave. Providing developers with ubiquitous access to open, programmable network functionality through common APIs will empower them to innovate at global hyperscale and drive value creation for enterprises, their customers and the telecom industry,” said CEO-designate Bartolo. “These new and more advanced applications will create better customer experiences, open new revenue streams, work seamlessly anywhere in the world, and provide businesses with innovative and differentiating ways to operate. I am honoured to lead Aduna towards a new frontier for the future of technology, communication and the telecom industry.”

“Anthony is a recognised global technology leader with a proven track record in driving successful strategy execution in fast-moving businesses. His unique cross-industry expertise across the technology, operational and business domains positions him exceptionally well to deliver on Aduna’s vision,” said Ericsson head of business area global communications platform Niklas Heuveldop. 

“We are excited about Anthony now stepping in to further accelerate the onboarding of developer platform partners, enabling millions of developers to access advanced network capabilities and drive the next wave of services innovation via common APIs across industry-leading partner networks worldwide,” he added. 

freenet takes centre stage at public hearing on spectrum extensions

Simon Dux
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freenet takes centre stage at public hearing on spectrum extensions

Germany’s regulator, BNetzA, will hold the session today but is minded to extend the 800MHz, 1,800MHz and 2,600MHz bands without an auction

German regulator, Bundesnetzagentur (BNetzA) will hold a public hearing on the extension of frequencies in the 800MHz, 1,800MHz and 2,600MHz ranges on 9 January 2025, at the request of freenet AG. Freenet resells operators’ offers and runs its an MVNO on the Vodafone network, as well as offering TV services.

Source: freenet, as end of 2023

The stipulations under consideration are based on the draft consultation published in May 2024. At that time, BNetzA added new remedies to overcome 1&1’s complaints that extending existing frequency usage rights for Deutsche Telekom, Vodafone and Telefónica was unfair. In this agreement, a transitional extension of the frequency usage rights was already being considered.

Expiring rights

At the end of 2025, usage rights in the 800 MHz, 1,800 MHz and 2,600 MHz bands expire. The frequency usage rights are to be extended by five years, according to the regulator. Its aim is to align the terms of these usage rights with usage rights that expire later. This will allow more frequencies to be made available for allocation in a further step and avoid regulation-induced shortages. 

The extension of the usage rights will require operators to expand mobile networks and BNetzA intends to add conditions to the extended usage rights to promote competition.

The frequencies are used by the three established mobile network operators – Deutsche Telekom, Vodafone and Telefónica/O2 – and contribute to the nationwide supply of all with high-performance broadband connections. The public hearing will be freenet’s chance to present its concerns after which BNetzA intends to decide as soon as possible on the provision of the mobile radio frequencies “to create legal and planning certainty for the market,” according to its statement.

Better communications, more competition

“Our goals are to improve mobile communications and further promote competition. We want to link the extension of the frequencies to ambitious coverage requirements. A special focus is on better coverage of rural areas,” said BNetzA’s President, Klaus Müller ahead of the public meeting.

“We want to further strengthen competition in the mobile communications market. The extension is to be combined with special regulations for 1&1. The negotiation requirement for service providers is to be supplemented by guardrails that are intended to promote effective negotiations.”

In March 2024, before BNetzA’s revisions, freenet published a legal opinion which came to the “unequivocal conclusion that the recently discussed frequency extension without a non-discriminatory access obligation would be contrary to European law”. It argued that the European ban on state aid marks the limit of the BNetzA’s administrative scope for action. Further, in the event of a frequency extension, the BNetzA’s scope for decision-making in the area of promoting competition would be reduced to zero. 

In August, the Cologne Administrative Court orally announced its judgment in the proceedings concerning the decision of the President’s Chamber of the BNetzA of 26 November, 2018 on the award and auction rules for the auction of frequencies particularly suitable for 5G mobile communications in the 2 GHz and 3.6 GHz ranges held in 2019. It was decided that the award rules of the President’s Chamber decision are unlawful. The BNetzA was obliged to issue a new decision.

Interim decision

The regulator has subsequently published a handout with the “contemplated stipulations” of a decision of the President’s Chamber, ahead of the meeting. This confirms there will be no auction in the 800 MHz, 1,800 MHz, and 2,600 MHz bands, which are set to expire on 31 December 2025.

Existing frequency usage rights in the paired bands of 800 MHz, 1,800 MHz, and 2,600 MHz, currently valid until 31 December 2025, will be extended upon application by the assignees until 31 December 2030.

Similarly, usage rights in the paired sub-bands of 1,760–1,785 MHz and 1,855–1,880 MHz, valid until 31 December 2033, will be extended until 31 December 2036, provided legal assignment criteria are met.

Aligning spectrum permissions

The aim is to align spectrum usage periods, enabling a comprehensive competitive process for post-2030 usage, alongside other rights expiring in 2033, 2036, or potentially becoming available.

Conditions include network extensions to include: 99.5% of the nationwide area to be covered with at least 50 Mbps (by 2030); 99% of households in sparsely populated areas to receive at least 100 Mbps (by 2029); continuous 100 Mbps service along federal roads (by 2029); and 50 Mbps service for state, district roads, and inland waterways (by 2030). Frequency holders must participate in infrastructure expansion, support rail networks, and collaborate on shared spectrum use below 1 GHz.

Operators must also engage in fair negotiations for national roaming and shared spectrum utilisation, ensuring compliance with regulatory guidelines. Quarterly updates on frequency use, network development, and expansion plans must be submitted to the BNetzA. 

Virgin Mobile launches pay-as-you-use plans in Saudi Arabia

Simon Dux
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Virgin Mobile launches pay-as-you-use plans in Saudi Arabia


The Switch Postpaid Plans allows customers to pay only for the data they consume – automatically

Virgin Mobile Saudi Arabia, owned by global tech company Beyond One, has launched Switch Postpaid Plans which it claims is a “first-of-its-kind offering” in the Kingdom allows customers to pay only for the data they consume. The so-called “Switch” feature automatically adjusts to a lower-priced plan when customers use less data and allows them to upgrade whenever they need more, eliminating the fear of bill shock and giving them complete control over their spending, according to the operator. 

With plans starting from SAR 138 (including VAT) for 35GB, Virgin Mobile’s looks disruptive given the traditional global model from MNOs is to follow more for more principles and offer data allowances almost no user will ever manage to consume, for a price. 

“We understand that data usage fluctuates, and customers shouldn’t be penalised for having unused data. With the Switch feature, they enjoy complete peace of mind knowing they’re only paying for what they actually need,” said Virgin Mobile KSA CEO Yaarob Al-Sayegh. 

The new plans offer unlimited social media usage, national voice calls, and incoming calls while roaming. Customers can also enjoy complimentary access to entertainment subscriptions like STARZPLAY or stcTV. The Switch Postpaid Plans are available in various options to cater to diverse data requirements, and customers can seamlessly switch between plans “as their needs evolve at any time”. 

Virgin Connect

In November, Virgin Mobile Saudi Arabia’s owner Beyond One – which is also the owner of Virgin Mobile Middle East & Africa – launched Virgin Connect, a new brand that will offer a suite of products that integrating “diverse experiences and services”. The first to launch imminently is Virgin Connect Roam, an eSIM solution that the tech company said will disrupt the current market by offering a scalable, cost-effective and seamless user experience, for those who recognise connectivity as the enabler of exploration. The service covers more than 140 countries across seven regions.

The company promising more than just an eSIM, stating that Virgin Connect Roam offers “effortless and affordable connectivity”, freeing users from the constraints of traditional data plans. During the launch Beyond One Group CEO Markus Tagger was at pains to emphasise that plan behind the brand is to develop a community of digital natives. 

Given that the Dubai-headquartered Virgin Mobile Middle East & Africa is responsible for all Virgin Mobile operations in the Middle East and Africa region Beyond One is well placed to experiment with new offers and brands targeting a reasonably globally-focused regional market. 

DT pulls national and global wholesale activities into one unit

Annie Turner
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DT pulls national and global wholesale activities into one unit

Deliberate blurring of boundaries reflects ‘growing demand for integrated telecoms services’ and ‘the growing trend of internationalisation’

Deutsche Telekom (DT) announced the consolidation of its national and international wholesale activities into a single entity, T Wholesale. It says the move is intended to provide clients with streamlined solutions within Germany and globally, reflecting the growing demand for integrated telecoms services. It also reflects the importance DT attaches to the wholesale market, it states, and the growing trend of internationalisation. 

The latter might come as something of a surprise in an era ostensibly characterised by national interest and anti-globalisation, but Proximus expressed similar sentiments when consolidating and reorganising its global activities in December.

Previously the international organisation operated as Deutsche Telekom Global Carrier while the German market was served by Wholesale of Telekom Deutschland.

The idea is that the new structure combines local expertise with international knowledge, supporting cross-border developments, market-specific regulations and access at regional and global levels. In future, customers should benefit from “optimised processes and greater efficiency, leading to faster response times, more competitive offerings, enhanced service quality and cost savings,” according to the press release.

Currently Deutsche Telekom’s wholesale units serve more than 250 telecommunications providers and resellers in Germany, and more than 900 international customers and partners. Services available to all its customers will include IPX and fibre optic networks, security, point-to-point connections, broad infrastructure, Ethernet and Multiprotocol Label Switching (MPLS), data centre services, in-flight broadband and more.

Apparently the organisation will prioritise advances in digital communication, AI, network APIs, 5G Standalone, edge cloud and strategic partnerships to accelerate innovation.

Managing Director of the new entity, Dr Kerstin Baumgart, explains, “Our partners and customers benefit from our international focus and the synergies that will allow us to better meet the challenges of a rapidly changing market. We offer a portfolio from a single source, both in Germany and internationally, creating a seamless customer experience. As always, we remain committed to sustainable and collaborative partnerships with our customers.”

WBA’s top 10 predictions for Wi-Fi from 2025 onwards

Tiago Rodrigues, CEO of the Wireless Broadband Alliance (WBA)
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WBA’s top 10 predictions for Wi-Fi from 2025 onwards

Wi-Fi has reached ‘a pivotal moment’ as users demand seamless, secure, high-performance connectivity in homes, enterprises and cities

At the Wireless Broadband Alliance (WBA), we are committed to driving innovation, interoperability, and standards that empower the Wi-Fi and broadband connectivity industry to meet the needs of today while laying the foundation for tomorrow’s connected world. Here are our top 10 predictions for Wi-Fi in 2025 and beyond.

  1. Wi-Fi 7 adoption

Early adopters of Wi-Fi 7 will include technology-driven industries, smart home enthusiasts and enterprises needing high-density, high-speed connectivity. Large tech companies and advanced enterprises will be among the first to implement Wi-Fi 7 in their office infrastructure to support increased demands from remote collaboration tools, IoT sensors, and high-definition video conferencing.

Smart cities will also lead the charge, adopting Wi-Fi 7 to enable real-time data collection from IoT devices for traffic management, public safety, and environmental monitoring. Public venues like stadiums, airports, and convention centers will adopt Wi-Fi 7 early to manage the connectivity needs of thousands of simultaneous users, providing seamless streaming and data access for fans, travelers, and attendees.

Within the consumer sector, tech-savvy users and smart home aficionados will upgrade to Wi-Fi 7 routers to maximise the performance of their growing array of connected devices, such as smart appliances, security systems and entertainment systems for 8K streaming and gaming.

  1. 6GHz expansion and AFC

Automated Frequency Coordination (AFC) systems will see phased roll-outs across multiple regions, particularly in the US, Canada, the European Union and parts of Asia, as more regulators approve the use of 6GHz for unlicensed Wi-Fi under AFC management.

In the US, the FCC will lead AFC implementation for standard-power Wi-Fi operations in the 6GHz band, with licensed database administrators managing these AFC systems. Following the US model, other countries are expected to adopt similar AFC frameworks, accelerating deployment in enterprise and public spaces by ensuring devices can operate at standard power levels in outdoor or high-traffic areas without compromising incumbent communications.

In Europe, the European Telecommunications Standards Institute (ETSI) is likely to coordinate region-specific AFC guidelines, balancing connectivity’s needs with protection for incumbents.

  1. AI-driven network optimisation

AI-powered routers and cloud platforms will analyse traffic patterns, adjust bandwidth allocation, and manage devices for optimal performance, particularly in smart homes and IoT-heavy environments. As hardware is increasingly commoditised, infrastructure vendors will create their respective secret sauces to innovate and differentiate.

  1. Wi-Fi and 5G convergence

The convergence of 5G/6G and Wi-Fi will ensure seamless, high-quality connectivity by dynamically switching between the best available networks. In a smart city, for example, a person moving from a Wi-Fi-rich office to a 5G-powered urban area will experience uninterrupted service, thanks to technologies like OpenRoaming and Passpoint, which enable secure, automatic connections to trusted Wi-Fi networks.

5G’s network slicing enhances this by dedicating specific network resources to applications like AR/VR and real-time gaming, which can integrate smoothly with Wi-Fi. As enterprises and industries drive this convergence, 6G will add features like terahertz frequencies for nearly instant communication over wide and local areas.

Edge computing, which processes data closer to its source to reduce latency, will leverage Wi-Fi and 5G/6G to offload tasks to the best network, optimising real-time performance. Wi-Fi will dominate high-density areas like offices, while 5G/6G will enable broad IoT deployments, paving the way for innovations like smart cities and autonomous vehicles reliant on robust, ubiquitous connectivity.

  1. OpenRoaming

The global adoption of OpenRoaming will continue to acceleration in 2025. This will start to transform public and guest Wi-Fi users’ experiences, and change how we connect to Wi-Fi. For example, from remote communities, to universities, stadia, retail chains, large city deployments and more. 

OpenRoaming capabilities are extending into IoT, with zero-touch provisioning of devices, emergency calling and response, and private cellular networks.

OpenRoaming means MNOs and MVNOs can incorporate Wi-Fi into their wireless solutions to expand capacity and/or coverage, especially indoors.

  1. TIP OpenWiFi

The adoption of TIP OpenWiFi is expected to expand, although the pace is likely to be uneven across sectors and geographies. The introduction of OpenLAN switching is expected to stimulate growth, particularly in cost-sensitive markets such as India and among managed service providers (MSPs) in the US and Europe looking for alternative, flexible networking solutions.

TIP OpenWiFi’s success will depend on being able to navigate the challenges of scaling deployments and being seen as credible alternatives to established WLAN providers. The latter have invested heavily in AI to enhance performance and power customisable features to make their offerings more compelling for enterprise-level CIOs and CTOs.

  1. Increased IoT device connectivity

As the number of IoT devices continues to grow, Wi-Fi networks will be optimised to handle large-scale device connections. Wi-Fi 6’s and Wi-Fi 7’s ability to manage more devices simultaneously will be crucial to support smart homes, IoT and smart cities.

The Wi-Fi HaLow standard will become a disruptive connectivity technology, with the potential to transform the IoT landscape through its extensive range, superior penetration and improved battery life. It could revolutionise industries, like agriculture, smart cities and manufacturing, by improving data collection and their efficiency. Wi-Fi HaLow is ready for primetime in the IoT ecosystem and is a natural fit, especially for long-range, intelligent applications.

  1. API first

The API-first strategy has transitioned from a progressive concept to a fundamental practice. Wi-Fi vendors are now building applications with APIs as the primary focus, ensuring that integration, scalability and future growth are baked into the DNA of their digital solutions. This approach highlights the critical role of APIs in creating flexible, adaptable, and robust digital architectures.

However, although using APIs provides greater flexibility and potential, every API integration project is inherently unique. Usually, building a single integration will take engineers several weeks at best and then will probably need to allocate several hours per month to maintain that integration.

  1. Municipalities and governments

Public Wi-Fi networks will be driven by smart city initiatives, offering free or low-cost connectivity in urban areas. These networks will support everything from smart transportation systems to energy management and public safety. OpenRoaming is set to play a pivotal role in the expansion of public and smart city Wi-Fi networks.

For smart cities like Tokyo, Barcelona and others, this seamless transition between networks enables reliable, continuous connectivity for citizens and devices alike, supporting applications like real-time traffic monitoring, public safety systems, and IoT-based services. Municipalities and public Wi-Fi providers could well prioritise OpenRoaming to improve users’ experience, simplify network management and foster richer data environments in urban areas.

  1. Focus on energy efficiency

Wi-Fi networks will prioritise energy efficiency, particularly for IoT devices that need long battery life. Technologies such as target wake time (TWT) will become more prevalent, reducing power consumption in connected devices by scheduling check-ins with the network.

Swisscom completes Vodafone Italia deal, hails ‘new era’ in Italian telecoms

Annie Turner
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Swisscom completes Vodafone Italia deal, hails ‘new era’ in Italian telecoms

This is another completed step in Vodafone Group’s strategy to reshape its European footprint and business

Having obtained all regulatory approvals, Swisscom completed the acquisition of Vodafone Italia somewhat earlier than expected, on 31 December.

The plan is that its Italian fixed infrastructure business, Fastweb, will combine with Vodafone Italia’s mobile network to “bring together complementary high-quality mobile and fixed infrastructures, competencies, and capabilities to create a leading converged challenger in Italy”.

The combined entity, will offer “innovative, competitively priced converged services to Italian consumers and businesses,” according to the Swiss giant, and “is a key step in achieving its strategic objective of profitable growth in Italy”.

Scale and cost structure

Swisscom is expecting “increased scale, a more efficient cost structure and significant annual run-rate synergies of €600 million” but has revised its EBITDA guidance for 2024 because of the transactional costs it incurred of up to €200 million.

Walter Renna, CEO of Fastweb + Vodafone, comments, “We herald a new era in Italian telecommunications. By embracing the opportunity of combined forces, we create a stronger, more innovative organisation to lead Italy into a sustainable digital future, empowering people, businesses and public administrations.”

Swisscom CEO Christoph Aeschlimann concludes: “I am thrilled about the successful closing, as it strengthens Swisscom Group. The improved positioning in Italy will create long-term value for all stakeholders – thanks to growing cashflows and dividends in the future. At the same time, the focus on the Swiss market remains unchanged with continued high investments in innovation, top-quality service, and next-generation infrastructure.”

Vodafone’s perspective

Press information from Vodafone noted that the transaction values Vodafone Italy at a multiple of about 26 times the operating free cash flow for FY24, the highest such multiple of any Vodafone market transaction in the last 10 years.

Proceeds from this sale will be used to reduce Vodafone Group’s net debt. Vodafone’s board plans to hand shareholders up to €2 billion, once it completes its current buyback programme.

Vodafone Group will continue to provide some services to Vodafone Italy for up to five years.

The Group adds that divesting itself of Vodafone Italy is the final step in the reshaping of Vodafone’s European footprint: the other steps are the merger with Three in the UK, which finally was given regulatory permission to proceed at the beginning of December, and the sale of Vodafone Spain to Zegona for €5 billion, which completed in May 2024.

Vodafone says it will now focuse on making its European markets more profitable, investing in fixed and mobile infrastructure. One of its main markets, the UK, was recently found by Opensignal to have the least reliable mobile coverage of all the G7 countries, while it continues to struggle in its largest market.

New executive committee

Swisscom’s process to integrate Fastweb and Vodafone Italia starts immediately. The combined entity will be led by the newly appointed Executive Committee, operating under the corporate brand Fastweb + Vodafone.

The new Executive Committee is drawn from execs at both units, Swisscom says. Perhaps somewhat surprisingly, the new Chief IT and Chief Technology Officers are yet to be announced. In the meantime, the roles will be carried out by John de Keijzer and Mark Düsener respectively.

Other key roles that have been assigned include Walter Renna as CEO, Anita Carra is Chief Brand & B2C Marketing Officer, Fabrizio Casati becomes Chief Wholesale Officer and Elenia Cerchi Chief Regulatory & Antitrust Officer.

Augusto Di Genova is Chief B2B Officer, Peter Grueter Chief Financial Officer, Alessandro Magnino Chief Strategy & Transformation Officer and Federico Negri becomes Chief B2C Commercial Officer.

Microsoft to invest $80 billion on AI-enabled data centres

Simon Dux
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Microsoft to invest $80 billion on AI-enabled data centres


The figure is only for FY25 and comes at a time when the public is finally noticing the industry’s impact

Microsoft vice chair and president Brad Smith kicked off the New Year by revealing the company is on track to invest approximately $80 billion to build out AI-enabled datacentres to train AI models and deploy AI and cloud-based applications around the world – in FY25 alone. In a flag-waving blog post – with one eye on the incoming president – he highlighted that more than half of this spend will be in the United States.

The timing is fascinated given, as Richard Windsor at Radio Free Mobile recently pointed out, there are more signs that the “scaling laws” that have underpinned the AI explosion (and all of the hype attached to super-intelligent machines) are coming to an end meaning that the real potential of LLMs is now visible and is falling way short of the craziest of forecasts.

The inevitable consolidation round is already underway and Microsoft has backed Open AI so hard it needs this LLM to succeed. According to Windsor, foundation models (GPTs, Gemini, Llama, Claude etc) are rapidly becoming the operating systems of AI and, as such, they are likely to be control points making them strategically vital to making money from AI. And this money will not be coming from training new models, it will come from interesting ways inference can be applied to solve enterprise business cases. 

Gridlock for DCs

At the same time, 2025 looks like the year that the public will finally notice the stupendous impact the spread of data centres will have on the global grid, climate change and inevitably, consumer power bills. 

According to Bloomberg, the enormous demand for electricity by data centres is now leading to a phenomenon known as bad harmonics. Electricity travels across high-voltage lines in waves of alternating current and when those wave patterns deviate from what’s considered ideal, it distorts the power that flows into homes. Bad harmonics can force home electronics to run hot or damage the motors in refrigerators and air conditioners, resulting in billions of dollars of damage, according to Bloomberg.

A Bloomberg analysis of exclusive sensor data coupled with data from DC Byte, a market intelligence firm, showed a strong link between proximity to data centers and worsening harmonics. More than half of the tracked households showing the worst distortions of power quality are located within 20 miles of significant data center activity, according to the analysis, which covered readings from February through October, 2024.

Consumer price impact

There needs to be further research on the expanding power needs of data centres and the direct impact on consumer energy bills this year. There is an inevitable cost to upgrade the grid due to rising energy demand and that cost is highly likely to be passed on to consumers. This is because, expanding grid capacity to handle more highways requires large investments in generation, transmission and distribution infrastructure. Energy firms recover these costs through rate adjustments. 

Many countries have regulatory systems that allow utilities to recoup costs for infrastructure projects deemed necessary to ensure reliable supply, typically through higher prices. As data centres consume more energy, peak demand periods may require additional capacity. To incentivise efficient usage or cover higher costs, energy providers can increase rates for all consumers. In many countries, grid upgrades are viewed as shared benefits, meaning even consumers who don’t directly use energy-intensive services like data centres will see a portion of their costs on bills.

At the same time, efforts to transition to renewable energy sources may compound the investment burden, further driving up rates. Energy prices have significantly influenced politics since the pandemic, making energy security, affordability and transition pivotal issues across the globe. It’s difficult to discern how this will play out but it isn’t going to resolve itself and once this is a political issue, the data centre industry will almost be too late to change any opinion, regardless of how environmentally aware their public positions are.

American AI

In his blog, Smith (above, right) mentions “American AI” no fewer than 10 times and emphasises how Microsoft is part of a tech movement that is “investing heavily to spread American AI platforms around the world” and “advancing international adoption of American AI”. In the same blog he argues the most important US public policy priority should be to ensure that the US private sector can continue to advance “with the wind at its back”. 

“The United States cannot afford to slow its own private sector with heavy-handed regulations. The country instead needs a pragmatic export control policy that balances strong security protection for AI components in trusted datacentres with an ability for US companies to expand rapidly and provide a reliable source of supply to the many countries that are American allies and friends,” he said.

Such potential light-touch “American AI” regulations will, of course, be viewed carefully in Brussels – also keen on sovereignty – but Microsoft’s flag-waving post instead reminds readers the company intends to invest more than $35 billion in 14 countries within three years to build trusted and secure AI and cloud data centre infrastructure.

Vodafone Spain and MasOrange to form new FibreCo

Simon Dux
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Vodafone Spain and MasOrange to form new FibreCo


The new FibreCo, plus a wholesale deal with Telefónica, completes the transformation of Vodafone Spain’s fixed line strategy, delivering full FTTH services nationally

Vodafone Spain and MasOrange have announced plans to create a new fibre network company in Spain, dubbed FibreCo for now. FibreCo will bring together network assets of Vodafone Spain and MasOrange to create a 100% fibre-to-the-home network covering 12.2 million premises across Spain. The announcement was made by British investment fund, Zegona Communications, which acquired Vodafone Spain for £5 billion (€5.877 billion) in May 2024. 

Financial details of the contract were not disclosed but the FibreCo is expected to have a run-rate EBITDA of circa €480 million after three years. Zegona and MasOrange plan to bring a third-party financial investor into FibreCo, which will lead to MasOrange retaining 50% ownership, Zegona holding 10% and the financial investor 40%. Zegona said initial interest from investors is strong, reflecting the “high quality and utilisation of FibreCo, its already built FTTH infrastructure and the multi tenant nature of the company”.

FibreCo will benefit from from having virtually all its FTTH network already built and with nearly 40% existing network utilisation, providing FTTH services to over 4.5 million Vodafone Spain and MasOrange customers. The new wholesaler is also committed to rolling out XGS.PON. Vodafone Spain will use FibreCo to provide services to its existing and future retail and wholesale customers within FibreCo’s footprint. 

In November 2024, Zegona announced it had signed binding contracts with Telefónica Spain to create a new fibre network company covering 3.6 million premises across Spain and to renew its fibre wholesale access contract with improved terms. Zegona will hold 10% of that company as well. Zegona said the combination of these transactions with the new FibreCo with MasOrange completes the transformation of Vodafone Spain’s fixed line strategy, delivering full FTTH services nationally. 

The transaction is subject to customary regulatory approvals. FibreCo completion together with the introduction of the third-party investor is expected by the end of the first half of 2025. 

“Entering this FibreCo partnership with MasOrange, alongside our recently announced agreements with Telefónica, transforms Vodafone Spain’s fixed line strategy,” said Zegona chairman and CEO Eamonn O’Hare (above).

“The combination will give guaranteed access to a future-proof all fibre national network with attractive economic terms and will enable substantial cost savings across the business,” he said. “Monetising these two FibreCos is expected to deliver very significant Zegona proceeds, generating the ability to reduce leverage and provide a return of capital to shareholders.”

Spain is world-standard

As we reported last April, the high overbuild ratio in Spain has led operators to open their networks, creating a highly complex wholesale ecosystem with a large number of operators and agreements between them. Even then, consolidation loomed large on the horizon and the process is well and truly underway. In this emerging model the traditional players want to remain the InfraCos supplying the market with both wholesale and retail services, while retaining the ability to bundle for their own customers. 

“In mid-summer, a series of operations were announced, of which the creation of ‘FibreCo’ is the largest and the last to sign the corresponding contract, which allow the creation of what we call ‘the triangle of superNetCos’,” Spanish and Latin America telecom consultancy Nae director Joaquín Guerrero told Mobile Europe. “MasOrange, Telefónica and Vodafone have closed strategic agreements to share their fixed fibre access networks. Two of the vertices of this triangle will give rise to new companies that will own the FTTH infrastructure.”

He added: “They will be NetCos (or network companies) that will rent that infrastructure to operators and open their capital to new investment groups. The third, between MasOrange and Telefónica, will be managed in a more traditional way, through a long-term rental contract or IRU, according to the jargon of the sector.”

Guerrero said The spanish fibre-to-the-home industry and its ecosystem stand out as one of the most sophisticated worldwide, setting a benchmark for Europe and the rest of the world in the creation of these structures. “Once these changes are implemented, the majority of fixed customers of the main telecommunications operators in Spain will be connected to networks owned by other companies,” he said.

Source: Nae Consultancy

Altice-SFR’s Halimi becomes president of French Telecoms Federation

Simon Dux
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Altice-SFR’s Halimi becomes president of French Telecoms Federation


He will take up the mantle of seeking a new deal for the telecom sector at the European level, in order to find the conditions for sustainable investment in digital infrastructure

The French Telecoms Federation (FFTélécoms) board has elected Laurent Halimi, secretary general of Altice-SFR, as president for a one-year term. The appointment comes as the federation upped the ante by releasing its latest telecom sector study, with EY Parthenon, which highlights what the operators argue is a “growing imbalance between telecom operators and other digital players”. In 2023, the report found that operators generated 34% of the digital sector’s revenues, while assuming 53% of investments and 56% of tax contributions, “due in particular to the ever-increasing weight of specific telecom taxation, reaching a record amount of almost €1.6 billion in 2023.”

“I appreciate the honour and responsibility of taking over the presidency of FFTélécoms in the interest of an essential industrial sector of our society. I will ensure that I defend the interests of all FFTélécoms member operators and in particular secure their economic model at a pivotal moment for our sector,” said Halimi. “I will also strive to promote constructive collaboration with public authorities and local authorities, to guarantee robust, sustainable digital infrastructures that are accessible to all.”

FFTélécoms said a new deal is needed for the telecom sector, in order to find the conditions for sustainable investment in digital infrastructures, necessary for the competitiveness of the entire economy. These debates were opened at European level by the European Commission’s White Paper on Connectivity, the Letta Report on the Future of the Single Market and the Draghi Report on European Competitiveness. Each of these papers still has vociferous critics so the path forward will be a slow one.

The EY Parthenon report found that since 2019, French telecom operators have maintained an average annual growth of 16% in the number of premises eligible for very high speed broadband, bringing this total to more than 39 million premises in 2024 – with 89% coverage of premises in June 2024.

This was supported by cumulative investments of 113 billion euros over the last decade, including 14 billion in 2023. This level of commitment far exceeds that of other French infrastructure sectors, in particular electricity, rail and motorway networks.

Despite this performance, the report said the specific taxation weighing on operators continues to grow (+5% per year), reaching 1.6 billion euros in 2023. Telecom operators are subject to a level of taxation twice as high, while they invest more than twice as much as the average for companies listed on the CAC 40.

Orange steps down

Halimi succeeded Nicolas Guérin, secretary general of the Orange group, now vice-president of the federation, alongside Juliette Lallemand-Victor, secretary general of Bouygues Telecom, newly elected vice-president. Philippe Hallopeau, director of regulatory affairs at Odigo, was elected treasurer. A lawyer by training, Laurent Halimi began his career in several law firms before joining the Altice group in 2016. Since 2020, he has held the position of head of M&A for Altice Europe and since August 2022 the position of secretary general of Altice France (where he was also executive legal director). 

New members

FFTélécoms recently welcomed Orange Concessions and XpFibre as members, meaning its members now represent nearly 31 million premises that can be connected to fibre, or nearly 80% of the total.

“The membership of Orange Concessions, a ‘pure player’ infrastructure operator on behalf of local authorities and other IOs will promote closer collaboration with the entire ecosystem brought together within the FFTélécoms, industrial operators and commercial operators, general public operators and business operators,” said Orange Concessions president Jean-Germain Breton. “We will include our work in an ambitious OI Fibre roadmap that will quickly bear fruit, particularly in terms of the quality of interventions on the networks and quality of service.”

“Present in ZTD, in AMII and AMEL zones, and as a partner of many communities, XpFibre is proud to join FFTélécoms and to be able to strengthen working ties with the various operators,” added XpFibre president Lionel Recorbet. “In view of the upcoming closure of the copper network, this strengthened cooperation should allow us to ensure quality of service for individuals and businesses while preserving the economic fundamentals of infrastructure operators.”

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