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    Telco to techco: how data driven are telcos?

    Siniša Arsić from Telekom Srbija discusses his company’s challenges and progress towards becoming data driven in the era of AI with Annie Turner at our recent virtual event

    Arsić is Director of Data, Analytics & Intelligent Automation of Business Processes. As he explains, although his 27-year old organisation is relatively small, it has been a trailblazer in its use of analytics to drive growth inside Serbia and beyond. It has “daughter companies” in Montenegro, Bosnia and Herzegovina and has embarked on “interesting projects” in Macedonia, Turkey and Western Europe including Austria and Germany.

    WATCH THE VIDEO HERE

    Telekom Serbija offers fixed and mobile services, and has been using analytics for the last 10 to 15 years seing data “as our biggest asset”. The analytics started for “simplified analysis” such as segmentation of customers. Like so many other telcos, data in silos is a big obstacle to establishing “a single source of truth” about customers. Multiple versions of the same data cause many business problems.

    Building a pyramid

    Arsić explains, “We had to think about how to consolidate the technology stack.it was important to see, for instance, how many tools are being used to analyse something, to process data. It’s not just Microsoft tools or spreadsheets, it is multiple tools. In some…parts of the reorganisation they have multiple tools that perform the same kind of tasks.”

    So a first step was to review the activity around data across the organsiation and to establish where to cooperate and improve to be a “top-notch operator”.

    This has been the goal for the last three years. The aim is to complete the multi-project programme in 2026. Arsić says that this could be portrayed as a pyramid with the foundational layer includes internal education project such as data literacy for staff and technical competences in ethical tools for reporting segmentation, for instance.

    He says this important to “so the majority of our colleagues understand we are not…aliens or some other interesting species”.

    This educational part was developed and run with HR and is close to completion.

    WATCH THE VIDEO HERE

    Tech consolidation, data centralisation

    The second foundation of the pyramid is that the operator consolidated its technology. It now uses SAS, which has been recognised as a “visionary” by Gartner in its Magic Quadrant January 2023 as the main analytical tool. [In November, SAS was also recognised by Gartner Peer Insights as a 2023 customers’ choice for analytics and business intelligence platforms.]

    The aim was to “unify everything onto one platform” and it is in the process of centralising its data to establish that all-important “single source of truth”. The first assets it centralised and unified were the IT and technical data for customer billing, invoices, traffic usage and their different kinds of behaviour.

    He explains, “We are now on our journey…so that customers’ data records will be complete…[and] we do not have a fragmented view, with one view in customer care, one in sales, one in marketing”. The aim is that “All those guys can go into SAS and look into that data residing in our big data analytic environment.”

    Another key part of the pyramid is data governance. Arsić notes there are few examples in “our region” but the operator is “eager to learn and fail fast. We are implementing some interesting pilots, starting with the business dictionary and the unification of our most important [governance] code books – we identified over 100 individual code books.” The plan that “the majority of them will be consolidated, aligned and standardised”.

    He continues, “Our business needs are so big that we have a lot of analytical projects that are directly are part or a major part of some business process. We are in great need…we cannot have the ‘luxury’ of to keep avoiding going into a data governance framework.”

    Security is another key issue that necessitates standardises processes and procedures.

    Marketing compaigns, personalisation

    So now the base layers of the pyramid are in place, or at least well underway, the next priority and tech enabler is “to develop a very large project [to automate] key marketing campaigns, inbound and outbound…for the first time, we unified sales, product development, customer value management and analytics,” he says.

    Now all the campaigns are centralised and automated in the SAS platform and “can be put into production or scheduled for when we want them, and pushed to the [right] channels. That enables us to create an omni-channel experience for customers, because we have all the data in one place.

    Shops still play be big role in customer experience. “People like to come, to renew their contract and to see what device they will buy, so our first focus was to unite all our sales channels, so all the channels have all the right information”. Part of the modernisation of the data structure, use and analytics has been to create a self-care portal and an app “primarily to reduce pressure on our contact centres”.

    In the main, these channels are used by younger people, Arsić says. One of the next goals is to achieve greater levels of personalisation to encourage loyalty, and for instance to address the needs of households, not a single individual.

    WATCH THE VIDEO HERE

    Driven by use cases

    What has Telecom Serbija learned from its data initiatives? He notes that most structured data now can now be modelled into the standard data warehouse and can be easily analysed and validated through source systems like Siebel or SAP.

    However, much of the data is unstructured, such as from social media or location data, and does not have “clear patterns”. It can be pictures, video, audio, emails and more. At the moment, this takes many manual hours of work “to come to any conclusion”.

    However, he stresses that, “Right now, we are very use-case driven…[so]…we do not approach data that we don’t have a use case for or that we don’t have a clear intention to use. Unstructured data is very. very big data. For now, we cover the essential use cases only.”

    Network and operational efficiency

    And what about data use regarding the network? Last year Telecom Serbija used data with machine learning models to plan capacity and prevent congestion. He comments, “Our networks is very well dimensioned, but we need to prepare for 5G,” which is not yet launched in Serbia.

    Arsić says the model used was “very smart” and each week forecasts which cells on the mobile network will become congested. The model also recommends the optimal upgrade for each and the cost.

    His team is bulding a single dashboard that will display all this information for the network planning team, providing a near-time interactive tool created from output from machine learning engines.

    This is the first level of support for the network division, but many more are in the pipeline that will leverage AI for operational efficiency. This will include improved network maintenance at different levels.

    Another recent development which will be key going forward is cloud migration. The operator has started working with AWS on possible migration strategies and what it would bring in terms of business agility or operational efficiencies if we do the same things as we do now in the cloud. He concludes, “but for now, our data remains sitting on-premise”.

    WATCH THE VIDEO HERE

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    BT adds McKinsey partner to board to help with strategy

    One of the first moves by new CEO Allison Kirkby in her mission to improve BT’s fortunes and share price

    The Financial Times [subscription needed] reports that Allison Kirkby, BT Group’s new CEO, has appointed Tom Meakin (pictured) to the board as a temporary measure.

    Meakin is a Senior Partner at McKinsey & Company where his role is global co-leader of consumer tech and media. He is on secondment to BT to act as interim chief strategy and change officer until BT finds someone permanent for the role.

    According to Kirkby’s memo seen by the FT, she intends to set up a strategy and change unit to “define the next phase of our transformation” which will include enterprise-wise programmes.

    The new unit will comprise BT’s established corporate strategy and development, and group transformation and assurance teams.

    New broom, new strategy?

    In an interview at a TelecomTV event in December 2023, BT Group’s outgoing CEO, Philip Jansen said he felt one of his achievements at BT was “a crystal-clear strategy with a plan that everyone understands and that we’ve just got to execute really well and I don’t think we had that, for lots of reasons, when I arrived.”

    He added, ““In my five years…the board has never wavered on the strategy – investing a fortune on making the company better [with] stronger new networks, new IT, new technology, new digital interfaces everywhere across the whole company.

    “So that is working. Now the impact of that [level of investment] is that for one set of stakeholders, the shareholders, the share price has gone down. Now I personally think it will come back. And so the job is trying to balance all the different stakeholders

    Maybe not so much

    For BT watchers, this is an echo of a similar division led by Chief Strategy and Transformation Officer Mike Sherman. When he quit in January 2021, it was assimilated into a new Digital unit, led by Harmeen Mehta as Chief Digital and Innovation Officer.

    The Digital unit is responsible for IT, digital innovation, BT-wide business transformation, and data and product strategy.

    BT has worked with McKinsey on assorted projects over a number of years.

    Kirkby succeeded Jansen in February and has been a member of BT Group’s board for several years. One of her main concerns is to improve BT’s share price which has fallen about 17% since the start of 2024.

    Virgin Mobile Saudi Arabia partners Hitek to develop smart cities 

    The Beyond One-owned MVNO will provide connectivity for Saudi smart cities, incorporating AI and IoT

    Beyond One’s Virgin Mobile Saudi has become to the preferred technology partner for Middle Eastern regional technology services company Hitek, part of the Farnek group of companies, and the two will develop a joint strategic approach to developing smart cities in Saudi Arabia. Initially, the partners said the agreement will cover smart building solutions for potential projects in Saudi Arabia but did not rule out other markets. 

    Last year, Beyond One, the newly formed subsidiary of private global investment company Priora Management Holding Dubai, acquired Virgin Mobile Middle East and Africa (VMMEA), the region’s largest mobile virtual network operator (MVNO), with active operations under its Virgin Mobile and Friendi Mobile brands in the Kingdom of Saudi Arabia, UAE, Oman and Kuwait. Founded in 2006 VMMEA has more than three million users in multiple GCC countries for both its Virgin Mobile and Friendi Mobile operations. 

    That deal saw Virgin Group invest alongside Beyond One, retaining a minority stake in the company and a seat on the board. Beyond One is equity funded by Priora Management Holding Dubai – owned by Swiss businessman Remo Stoffel – and Beyond One Group CEO Markus Tagger.  

    Beyond One also owns Virgin Mobile in Latin America and at MWC it signed a deal with Amazon Web Services use a combination of AWS Regions and AWS hybrid cloud offerings—including AWS Outposts and AWS Local Zones—to modernize the Beyond One stack. At the time the company did not confirm whether this partnership would be extended to the Middle east. 

    Smart initiative  

    Virgin Mobile Saudi CEO Yaarob Al Sayegh said the telco will be responsible for “advanced telecommunications solutions”, including 5G networks, digital services and enablement. “By leveraging HITEK’s expertise in digital solutions and our capabilities in telecommunications, we aim to build robust infrastructure that will not only enhance connectivity but also enable the seamless integration of cutting-edge technologies like AI and IoT.” 

    He added: “Together, we are committed to developing innovative solutions that will improve the quality of life for residents and drive economic growth across the region.” 

    According to a statement on the deal, Hitek will be looking to deploy digital solutions to optimise waste, water and energy management, environmental monitoring, citizen engagement, retail and hospitality, data analytics and AI integration, smart transportation, real estate and urban development as well as education technology. 

    “Through this ground-up partnership with Virgin Mobile Saudi, we can deliver, an advanced bespoke all-inclusive, intelligent and analytical digital platform, connecting people, assets and spaces,” said Hitek managing director Javeria Aijaz. “By utilising IoT enabled building management systems, machine learning, cloud and artificial intelligence-based technologies, [plus] FM operations management, [we] will have a 360-degree overview of all facilities, 24/7, from a dedicated and centralised platform, enhancing efficiency, welfare and sustainability.” 

    Berlin Open RAN test lab carries out first certification for VVDN 

    Rohde & Schwarz and Viavi support European OTIC in Berlin for O-RAN conformance certification for VVDN kit

    The European Open Testing and Integration Centre (OTIC) in Berlin, supported by Rohde & Schwarz and Viavi, has awarded its firdst O-RAN conformance certification for international markets. The certification of an indoor O-RU of the LPRU-series from VVDN Technologies was completed according to O-RAN specified processes as defined by the O-RAN Alliance.  

    Indian contract manufacturer VVDN Technologies has developed its LPRU-series 5G NR Radio Units (O-RU) to be fully compliant to O-RAN ALLIANCE standards. The VVDN 4T/4R Split 7.2 radios are covering 5G NR TDD bands n77, N78 and n79. They are compact, lightweight, easy to install, and provide optimal coverage for indoor applications. 

    VVDN alsready has production ready radio units for Private 5G Network for multiple countries and markets. The company has both low power (4T4R 1W) and mid power (4T4R 20W) radio units suitable for private 5G deployments. VVDN’s radio units support global requirements in Band 48 CBRS, Band n78/n77 (3400 to 4100 MHz), and bandwidth up to 100Mhz, TDD duplex mode 4T4R and 2T2R for indoor and outdoor applications. 

    Last October the company, which also makes smartphones, announced plans to expand its manufacturing outside India although at the time founder and president Vivek Bansal would not be drawn on whether such a facility would be in the US, Middle East or Europe. Bansal hinted in an interview that Poland and Mexico were potentials. VVDN already has a small manufacturing presence in Fremont, California, to serve US customers.  

    Test mechanics 

    The O-RU verification followed the O-RAN fronthaul conformance test specification defined by O-RAN WG4, including the Control, User, and Synchronization plane (CUS-Plane) and the Management-plane (M-Plane). WG4’s objective is to deliver open fronthaul interfaces, in which interoperability between Distributed Unit (DU) and Radio Unit (RU) from multiple vendors can be realised. 

    The Berlin OTIC, one of four in Europe, is part of a publicly funded project called i14y Lab with its main facility hosted on premises at the Deutsche Telekom innovation campus. The others are located in Turin, Madrid and Paris, sponsored by TIM, Telefónica and Orange respectively. All approved Open Testing and Integration Centers (OTIC) worldwide cooperate with the O-RAN ALLIANCE in the O-RAN Certification and Badging Program, which represents a mechanism to ensure confidence in O-RAN solutions within the industry. 

    The i14y Lab is an open lab for interoperability testing of disaggregated telco systems, such as open RAN, led by Deutsche Telekom together with consortium partners. Rohde & Schwarz is one of the consortium members and offers an integrated solution for conformance testing of O-RAN Radio Units together with Viavi Solutions.  

    Both companies are active in specifications development in the O-RAN Alliance and have combined their capabilities: the solution consists of the Viavi TM500 O-RU Tester and the R&S SMBV100A vector signal generator (VSG), R&S FSVA3000 signal and spectrum analyser and Vector Signal Explorer (R&S VSE) software from Viavi TM500, with the O-RU Test Manager from Viavi as single point of control, providing a seamless user experience. 

    Image (l-r): Andreas Gladisch (i14y Lab Deutsche Telekom), Veneeth Sankarakutty (VVDN Technologies), Alexander Pabst (Rohde & Schwarz)

    Proximus to acquire more 5G spectrum from ICT services group

    NRB acquired 20MHz in the 3600MHz band to offer 5G directly to its customers but has now decided to embrace the MVNO model

    Belgium’s former incumbent, Proximus, it looking to acquire more 5G spectrum from NRB in the 3600MHz range. Proximus says the acquisition will support its “ambition to continue to offer the best mobile experience in Belgium for decades to come”.

    NRB is selling its 5G licence to refocus on its core business, while maintaining its commitment to offering 5G services. The companies are discussing a possible wholesale agreement.

    The NRB Group is one of the biggest ICT firms in the country and serves public and private sectors organisations in Europe. In 2022, it had revenues of €505.4 million and more than 3,450 employees.

    Spectrum auction in 2022

    When the 5G spectrum was auctioned in the summer of 2022, Proximus decided to invest €600 million over 20 years.

    At the same auction, NRB acquired 20 MHz in the 3600MHz frequency band to provide 5G services to customers in the public and social sector, industry and biotech, energy and public utilities, financial organisations and insurance companies.

    Now the Belgian company has decided against rolling out its own mobile network, but intends to continue offering 5G services to customers as an MVNO – possibly through a partnership with Proximus.

    Raising the limit

    Acquiring the additional 20 MHz in the 3600 MHz band would give Proximus a total of 120 MHz so that the operator could add more capacity where needed. In future, it could be used to improve throughput and latency, as well as the security of data flows on private mobile networks.

    The agreement between Proximus and NRB was submitted to the BIPT, the federal telecoms regulator. The latter has approved the transaction, subject to the effective transfer of rights taking place after the publication of a new call for applications for the 3410-3430 MHz band in the Belgian Official Journal.

    That publication is imminent and the call for applications will be accompanied by an increase in the spectrum cap from 100MHz to 120 MHz to enable Proximus to acquire NRB’s 20 MHz.

    Zain Sudan shifts to Charging-as-a-Service in 18 days

    SaaS provider Totogi claims total cost of ownership could fall by up to 80% as disaster recovery expenses are all but eliminated

    Totogi’s Charging-as-a-Service platform has gone live for Zain Sudan which has more than more than 20 million subscribers. The country has a population of just over 49 million. According to the SaaS provider, the transition from the legacy charging system to the new platform took 18 days for Zain’s production and disaster recovery environments.

    The expected benefits are up to 80% lower total cost of ownership (TCO). Totogi says the new platform has “nearly eliminated Zain’s disaster recovery expenses, slashing them to just a fraction of the previous cost of maintaining a backup service”. 

    Sudan has been ravaged by civil war between the country’s army and the paramilitary Rapid Support Forces (RSF) since April 2023 and it appears to be intensifying.

    Totogi bills Zain on a pay-as-you-grow’ business basis and says this also allows the operator to scale as required while avoiding large upfront costs.

    Totogi also claims that the cloud-native solution has “future-proofed” Zain’s BSS stack and offers better performance, reliance and compliance

    Emad Elsheikh, CTO at Zain Sudan, commented, “Transitioning over 20 million subscribers to Totogi’s platform was executed with remarkable speed and efficiency, showcasing the agility and effectiveness of their solution in managing large-scale subscriber bases under demanding conditions, particularly in times of crisis when traditional on-prem systems are likely to fail”.

    Zain Sudan is part of the Zain Group, which offers mobile voice and data services and started in Kuwait in 1983. It has opcos in seven Middle Eastern and African countries, providing services to more than 50.6 million individual and business customers as of the end of last year.

    Nokia CEO sees a second half uptick with fixed leading weaker mobile 

    Despite a 19% drop in sales, Pekka Lundmark remains confident of a stronger second half and achieving the company’s full year outlook

    Nokia CEO and president Pekka Lundmark reflected on what the company called a “challenging environment” after weaker sales in North America and India led to the vendor posting revenues of €4.67bn, down by almost one-fifth from a year ago. 

    However, big cost cuts – including October’s announcement it would cut up to 14,000 jobs out of 86,000 employees – meant the vendor ending up with a 52% rise in Q1 net profit (€438m). Gross margin improved significantly year-on-year, to 48.6%, due to a combination of an improved gross margin in Mobile Networks, and the three smartphone licensing deals signed in Nokia Technologies. The vendor ended the quarter with a net cash balance of €5.1 billion. 

    Like Ericsson earlier in the week, Lundmark has seen some second-half green-shoots stating: “continued improvement in order intake, meaning we remain confident in a stronger second half and achieving our full year outlook.” 

    Breaking this down, Nokia saw improved order intake trends in its Network Infrastructure business in Q1 – the book-to-bill ratios was above one. Lundmark said the outlook for Fixed Networks has improved over the past three months, adding it was usually the first market to recover. However Optical Networks was still looking weaker. As a result, he sees Network Infrastructure returning to growth in the full year.  

    In Mobile Networks, the end of the 5G growth spurt in India combined with ongoing low levels of activity in North America led to a 37% net sales decline in the quarter. Nokia said that while all regions remained weak it continued to see growth in Middle East and Africa. 

    Fixed line’s relative health 

    Lundmark said Nokia has more than 40% market share globally excluding China in OLT products. “With our product portfolio and the ability to offer customers a roadmap to deploy X GPON, XGS-PON, and 25G PON in the same line card, we have a compelling value proposition,” he said. “Customers can also upgrade to 50G and 100G in the same chassis down the line with our Lightspan MF-14 platform.” 

    He added: “It’s important to remember that globally excluding China over 70% of homes are still not connected by fibre and there is a significant opportunity remaining in our biggest markets of both North America and Europe… In Europe, we see deployments remaining at a high level in markets with low penetration and we are seeing some mature markets starting to upgrade to XGS-PON and 25G PON.” 

    Automation and reducing telco opex 

    The chief executive said Nokia now has the capability to drive zero-touch autonomous operations across all network domains, including managing autonomous operations across multi-vendor networks.  

    “We have customers who are purchasing our autonomous operations specifically to accelerate their API exposure strategy,” he said “Our holistic solution is what also enables network programmability and the ability for CSPs to expose their APIs to developers using our network as code platform. This is a key point and we already have 11 operator agreements for our platform.” 

    He added: “To fully benefit from the emerging network APIs, CSPs need their operations to be fully automated because the API paradigm assumes an application interacts directly with the network in real time.” 

    Dell partnership is strategic 

    Lundmark highlighted Nokia’s strategic partnership with Dell, announced at MWC, as something that will benefit the vendor’s mobile, cloud and network offerings. “On the Nokia side, we will now adopt Dell as our preferred infrastructure partner for existing Nokia AirFrame customers, which will enable us to refocus our R&D efforts into areas where we can really differentiate as Nokia,” he said.  

     “Secondly, our private wireless solution, NDAC, or Nokia Digital Automation Cloud, will become Dell’s preferred private wireless platform for enterprise customers,” he said. “And we can see this becoming a very powerful channel to further drive growth in private wireless.” 

    Displacing Huawei and replacing chips in China 

    The CEO told analysts that the move by operators to strip out Huawei equipment was a gradual process. “But in typical Chinese vendors account 20% to 30% in markets outside of China, outside of the US of course, we estimate that last year in Mobile Networks and network infrastructure, the Chinese vendors have roughly or had roughly €12 billion in sales outside of China,” he said.  

    “And about half which is €6 billion of that in Europe, and this is obviously an ongoing discussion in several European countries that how they should deal with that question. But gradually the importance of this opportunity for us is continuing to grow,” he added. 

    When asked about the recent Chinese Government stripping out foreign chips from the nation’s telecom equipment, Lundmark said Nokia had not seen any impact. “We still need more clarity around that statement, because there are so-called foreign chips in pretty much all parts of all networks,” he said. “So, it’s very hard to see what that would mean in practice. So, we need more clarity about that. But important for us is to of course remember that our market share in China is fairly low and China accounts only – Mainland, China accounts for a low single-digit percentage of our sales.” 

    Swisscom wins Federal Supreme Court antitrust appeal 

    Sunrise filed a complaint against Swisscom suggesting the telco had behaved improperly in the 2008 tender process to set up a broadband network at Swiss Post sites

    Switzerland’s Federal Supreme Court has concluded that Swisscom’s conduct in the 2008 tendering process for the broadband networking of Swiss Post sites was fair. As a result of the decision in the long-running legal proceedings, last month the court upheld Swisscom’s appeal and overturned the original penalty decision of the Competition Commission (COMCO) from 2015, with the imposed fine of more than CHF 7 million, as well as a Federal Administrative Court judgement from 2021.  

    Swisscom welcomed the Federal Supreme Court’s ruling which also overturned the contested ruling of the Federal Administrative Court, which in 2021 concluded that the telco “behaved improperly” in the 2008 tender process to set up a broadband network at Swiss Post sites. 

    The Federal Supreme Court found that Swisscom did not force unreasonable prices on Sunrise or Swiss Post and demonstrated fair conduct in the setting of prices for wholesale products. Moreover, the prices charged by Swisscom for these wholesale products were not inflated. 

    In respect of Swiss Post, the Federal Supreme Court found that the bid price was the result of negotiations and was not set unilaterally by Swisscom. Finally, the court concluded that Swisscom had not imposed a margin squeeze on Sunrise and did not demonstrate anti-competitive conduct. 

    Long-running dispute  

    The proceedings date back to 2008 when Swiss Post had put out a call for tender to set up a broadband WAN between its sites. After a suitability test, it requested bids from Sunrise, UPC and Swisscom. It then accepted Swisscom’s bid in January 2009. Sunrise responded by filing a complaint against Swisscom with the competition authority, claiming that Swisscom had violated the Federal Cartel Act. 

    In September 2015, COMCO concluded that Swisscom had abused its market position, forced unreasonable prices from competitors and Swiss Post, and imposed a margin squeeze. In response, COMCO imposed a fine of CHF 7.9 million on Swisscom. 

     Swisscom contested COMCO’s decision 

    Swisscom said it had previously demonstrated to COMCO that Sunrise would have been able to submit a competitive bid if it had made “prudent use of its own and intermediate inputs”. The telco said in a statement: “The allegation of misconduct to the detriment of Swiss Post is also incomprehensible: as a powerful buyer, it had awarded the contract to the party submitting the most competitive bid, from its perspective, within the context of a GATT/WTO tendering process and in accordance with the strict rules that such a process entails.” 

    Swisscom subsequently lodged an appeal against the COMCO decision with the Federal Administrative Court. In June 2021, the Federal Administrative Court largely upheld the COMCO decision, but reduced the fine imposed to CHF 7.4 million. The Federal Administrative Court also concluded that Swisscom had behaved unlawfully in the tender for the broadband networking of postal sites to the detriment of Sunrise and Swiss Post. 

    Swisscom lodged an appeal with the Swiss Federal Supreme Court stating that it acted in accordance with the law during the tender process launched by Swiss Post, which requested bids from Swisscom and Sunrise. 

    Salty ending 

    In February, Swiss Post signed a strategic partnership with Salt to offer prepaid and postpaid “Post Mobile” services from its branches. Despite offering subscriptions, smartphones and telecom accessories from various providers in its branches for more than 20 years, Swiss Post has moved to a single partner. However, Swiss Post is still tied to Swisscom for several ICT services.  

    Starlink signs up UK’s VMO2 and global IoT connectivity firm Wireless Logic

    UK operator to use Starlink to reach underserved rural areas; IoT provider to offer fully managed combo of cellular and satellite connectivity to expand reach

    Virgin Media O2 is using Starlink’s Low Earth Orbit (LEO) satellite technology to provide mobile backhaul for some of the country’s most remote locations to accelerate its Shared Rural Network (SRN) rollout. 

    The operator has deployed the Starlink for backhaul in the Scottish Highlands (pictured) which are difficult or impossible to connect using technologies like fibre or microwave connections.

    Implementing satellite connections to these locations is after intensive testing and a successful recent trial in northern Scotland. 

    SRN behind schedule

    This is the latest development in Virgin Media O2’s push to improve mobile signal in rural communities through the Shared Rural Network programme. With the exception of EE, the participants in the SRN are behind targets, according to the National Audit Office. Last October, Vodafone, Three and Virgin Media O2 reportedly asked the government for up to two more years to complete the first stage of the Shared Rural Network (SRN)

    Virgin Media O2 is also exploring satellite connectivity for emergency services and to boost mobile connectivity at large events. 

    This Starlink project was delivered in collaboration with Telefónica Global Services (TGS). TGS is a subsidiary of Telefonica Group, which owns 50% of Virgin Media O2, and is an accredited Starlink reseller. 

    Jeanie York, Chief Technology Officer at Virgin Media O2, said, “By constantly finding new ways to deliver for our customers, we are bringing reliable mobile coverage to rural communities faster and helping to close the UK’s digital divide.”

    Starlink and global IoT

    Wireless Logic, a global IoT connectivity platform provider, has secured authorised reseller status for SpaceX’s Starlink LEO satellites. The agreement meansWireless Logic will integrated satellite connectivity into it portfolio of managed services. The rationale is to offer customers greater flexibility and choice for their global IoT deployments.

    Wireless Logic’s specialist subsidiary Blue Wireless will deliver integrated, managed services combining LEO technology, LTE and 5G. It will offer data plans, installation and on-site support in more than 70 countries worldwide, with guaranteed service level agreements regarding uptime and speed.

    Wireless Logic acquired Blue Wireless last year to strengthen its presence across the Asia-Pacific region and the Americas, as well as improving its fixed wireless access portfolio.

    Unique proposition for industries

    Oliver Tucker, CEO at Wireless Logic. “This milestone agreement underlines our commitment to innovation. While cellular remains a cornerstone for many applications, the addition of satellite connectivity is a game-changer – especially in challenging cross-border environments and areas of weak coverage.

    Ivan Landen, CEO at Blue Wireless, said of the Starlink arrangement, “By harnessing the combined strength of 5G/LTE and satellite technologies, we can deliver a unique proposition for industries like energy, agriculture, mining, construction and maritime. This extends to other organisations needing resilient branch, portable or mobile connectivity.

    “Our Global Managed LEO proposition helps global customers overcome typical challenges like procurement, installation, support and in-life performance.”

    Vodafone and Telefónica outline their digital journeys 

    The operator panellists shared their candid experiences around how their service delivery and cultures are changing to stay competitive, internally and through partnerships

    The discussion took place at our recent Telecom Europe Telco to Techco virtual event, moderated by CCS Insight consumer and connectivity director Kester Mann. Our panellists were Telefónica Germany VP director of massmarket Dr Mariam Kaynia, Vodafone Business head of digital Michelle Hastings and Intellias senior director telecom & media Ahmed Soliman. 

    WATCH THE FULL SESSION HERE 

    Telcos aren’t as agile as hyperscalers 

    Intellias’s Soliman said the adoption of current tools and open-source technology is vital for telcos to innovate and stay competitive. Despite the industry’s regulation constraints, integrating open-source solutions like OpenAI offers opportunities for advancement. Soliman also addressed the disparity in talent acquisition and flexibility between telcos and technology firms like hyperscalers. While the latter can readily acquire talent and pivot with ease, telcos face challenges in upskilling their workforce and adapting to rapid changes. 

    He underscored the importance of investment strategies, noting how technology companies have historically been quicker to identify and acquire innovative platforms like Skype and WhatsApp, revolutionising communication. 

    Hyperscaler competition has changed 

    Telefónica’s Kaynia agreed that telcos are slower than hyperscalers at this, but she said: “it’s simply because of our legacy landscape that makes it hard to adapt as fast as some of the others do.”  

    She also addressed the evolving relationship between telcos and hyperscalers in tackling enterprise networking requirements. Emphasising a spirit of partnership over competition, she highlighted the necessity of collaboration to meet the demands of a rapidly changing market. 

    “It’s not about comparing [to hyperscalers]. It’s a partnership that is required and this is how we also operate in the industry,” she said. “We are not competing, we are not trying to say take each other’s lunches, we actually need each other in order to be able to become more digital and more efficient and more agile towards our customers as a whole.”   

    Kaynia acknowledged the unique capabilities that hyperscalers bring to the table, emphasizing a desire to leverage these without duplicating efforts internally. Conversely, telcos offer expertise and established customer relationships that are invaluable in delivering comprehensive solutions. 

    “It’s really more about a hybrid collaboration across the whole system to bring together the different players need from cloud providers…solution providers…telcos…system integrators and only jointly can we really deliver what the market needs,” she said. 

    Addressing the complexities of the current landscape, she attributed much of the challenge to the rapid evolution of customer demands alongside the need for telcos to manage both stagnant revenues and increasing costs. “If you put the whole landscape together, it is more complex because you want to deliver more you want to do much more for our customers and be more agile and efficient and, at the same time, we need to manage the both revenue as well as the cost side of it,” she said. 

    Vodafone’s Hastings agreed that it is becoming increasingly clear what each party now brings to the table to get the right outcomes for customers. But first you need to understand what the customer wants. Do they need more oxygen in the P&L, are they reducing costs, have they spotted a business opportunity, is their IT estate too complex?  “Depending on what’s driving that behaviour will ultimately depend on the right answer and whether that is to partner with a telco directly or whether that’s to use an integration partner instead,” she said.  

    She added that AI is changing this equation once again with customers asking “where am i going to be using that AI, where’s my data…I think [the issue is] starting to understand some of those questions to then be able to make the right decisions about who do I partner with who’s going to help me to fill perhaps the gaps in knowledge that I might have, or the gaps that I might have around my IT estate.” 

    Data leverage example

    Soliman gave the example how telco marketing teams can benefit when vast amounts of network data and customer data are abstracted to deliver insights and develop new services. “You have the [customer] data, you have coverage heat maps, you have the status of the devices so how can I abstract this to [help] marketing promote new products and services,” he said, adding that new tools like GenAI help with this.  

    Marketing should be able to ask a simple question in layman terms and this massive, complex database that telcos have, with all its data points, should be able to give them actionable insights liking where to launch a service in their footprint.  

    Do telcos have the right culture?  

    Telefónica’s Kaynia said implementing cloudification and microservice architecture is not an easy task but the operator is doing this to be more efficient so it can have independently deployable components or features – the exact principle behind agile DevOps. “We cannot survive with this this,” she said. “If you’re not agile enough, it means we are not fast enough to adapt.” 

    And this impacts culture. “If we are not fast enough to be able to launch something deploy it independently with CI/CD and DevOps, [then] we can’t even get fast enough feedback to be able to adopt and then be able to calibrate as per our customers’ needs, which means we will be holding either ourselves back or the market back,” she said. “I see it as a fundamental enabler to have that right culture to move to the agile ways of working; to move towards DevOps, in order to achieve everything we talked about in terms of digitalisation and higher speed.”  

    Vodafone’s shift in core competencies

    Hastings said she had seen “a real shift” at Vodafone in “bringing some of our core competencies and core capabilities back in house and being quite selective about where we do partner.” As a result, the telco is in the process of creating significant development and engineering hubs. 

    “When we think about things like digital transformation, but then really importantly, data transformation and look at where we have the skills where we need the talent and then marry that to culture, you start to kind of touch on quite an important dynamic between those two things,” she said, highlighting the intricate relationship between skill sets and cultural values. 

    Hastings underscored the significance of fostering a culture that empowers individuals to take ownership and initiative, stressing the importance of attracting and retaining talent within the organisation. “I think having the right environment to attract talent, to fill the right skills to then enable them to ultimately be successful. And ultimately help all of us to progress,” she said, emphasizing the role of a conducive environment in nurturing talent and driving collective advancement. 

    Acknowledging the ongoing evolution of organisational culture, she added: “Have we gotten it 100% right yet? No, I doubt any company…I hope no company would ever say that they do. Right? Because culture is always evolving, right? It’s always improving. There is always something that we can do better.” 

    WATCH THE FULL SESSION HERE 

    The discussion also explored: 

    • How AI is impacting operations and new services at Vodafone and Telefónica Deutschland including the use of GenAI  

    • The complexity around finding the real AI use cases that are linked to the actual value the return on investment, or linking to revenue 

    • The importance on AIOps in creating automated feedback loops 

    • The role telcos can play in supporting SME’s undertaking digital transformation 

    • Examples of larger telcos using digital with their huge databases to develop new services  

    • Telefónica Germany’s shift to a microservice architecture  

    • Giving customers more control over their services 

    • The consequences of automation 

    • The three key objectives of digital transformation: enhancing operational efficiency, fostering innovation, and prioritising cybersecurity 

    • Are telcos competing with hyperscalers or partnering and how has this changed as enterprise network needs have evolved? 

    • What mindset changes have to happen before telcos can fully embrace digital transformation as part of their culture? 

    • If telcos are not agile they are not fast enough to adapt 

    • How do telcos collaborate as an entire industry so they can utilise thre same standards and respond to customer needs quicker 

    • Emerging co-sourcing and best-sourcing models are seeing customer look for upskilling and this has implications for telcos 

    WATCH THE FULL SESSION HERE 

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