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Council of State backs Arcep over €26 mln fine for Orange

Simon Dux
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Council of State backs Arcep over €26 mln fine for Orange


France’s Conseil d’État validates the regulator’s decision imposing a penalty on Orange for failing to meet its “AMII area” fibre rollout commitments

The French Council of State has rejected the appeal that Orange filed against the penalty decision from Arcep. On 7 November 2023, having ascertained Orange’s failure to comply with the first of its fibre rollout commitment deadlines (made in 2018) in those municipalities in France where the government had issued a call for investment letters of intent – referred to as “zones AMII” – Arcep’s Sanctioning Body imposed a financial penalty of €26 million on the carrier. 

So-called “AMII areas” (Appel à Manifestation d’Intention d’Investissement) are specific regions identified in a 2011 call for expressions of investment interest, where telcos were invited to deploy fibre optic networks. These areas are semi-urban or suburban regions where market conditions alone won’t drive investment, so the government sought commitments from operators to expand fibre coverage.

Under the AMII framework, operators like Orange and SFR pledged to roll out fibre networks in these areas by a target date, with the aim of helping bridge the digital divide between densely populated and more sparsely populated areas without direct government funding.

The Council of State validated the penalty decision by the Arcep and issued a reminder that: “the commitments made by the applicant company, which pertained not to an estimated number of residential and business premises based on assessments or forecasts, but to providing coverage to all existing residential and business premises in the designated municipalities, for which it provided the list […] and which was accepted by Ministerial decision, were sufficiently clear that it was reasonable to foresee that disregarding them was liable to be penalised.”

The Council also concluded that “given the gravity of the failure to comply […] when the commitments made were sufficiently clear for the company Orange to be able to fully appreciate the consequences of failing to meet them for operators providing electronic communication services and for end users, and given the reduction of the pace of meeting the commitments before and during the deadline extension granted in the notice to comply, the amount of the financial penalty of €26 million imposed on the company Orange does not seem disproportionate”.

Long-running

In 2018, Orange made a series of legally binding commitments to provide fibre to the home (FTTH) coverage in around 3,000 municipalities in France in response to the government call for investment. On 31 December 2020, which was the first deadline set for these commitments, 100% of residential and commercial buildings were to have been passed for fibre or made eligible for fibre access upon request, with a maximum 8% of these residential and business premises being eligible for fibre upon request.

Orange missed this and Arcep subsequently issued a a formal notice to comply with those commitments by 30 September 2022. Orange had contested this decision to the Council, which had rejected this appeal and upheld Arcep’s decision of formal notice in a ruling dated 21 April 2023. On 6 July 2023, Arcep ascertained that Orange had failed to comply with the decision of formal notice. It therefore notified its complaints to the operator and forwarded the dossier to the Arcep Restricted Body responsible for ruling on penalties, which imposed the fine. 

New commitment

Just over a year ago, Orange and the government reached a new agreement on the widespread deployment of fibre by 2025. This agreement included a proposal for a new deployment commitment by Orange in the AMII zone. Within the AMII perimeter, Orange said at the time it was stepping up the pace of deployment, and is committed to bringing fiber to an additional 1,120,000 homes by the end of 2025.

Where deployment disparities between different urban areas exist, additional efforts will be made in areas with the lowest fiber coverage within this perimeter to make more than 140,000 homes be connectable to a fiber network by 2024.

Orange committed to also provide an “on demand” offer providing connectivity to all customers who are not eligible for fibre within six months of their request. This offer will be made available until the copper network is shut down. By introducing on-demand connections to complement industrial deployments by geographical sector, Orange claimed it was changing the way it manages its deployments in the AMII zone. This proposal will deliver widespread fiber availability in AMII zones by the end of 2025.

BT sees next-gen networks in UK as its future

Annie Turner
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BT sees next-gen networks in UK as its future

BT Global is a drag on BT Business, which is dragging BT Group’s revenues down, but BT’s Global Fabric could be huge asset…

As it presented results for H1 to 30 September, BT Group highlighted the drag effect of its international activities on profitably and underlined CEO Allison Kirkby’s (pictured) belief that its future is with “next-gen” networks in its domestic market.

BT’s revenues fell 3% year on year to £10.1 billion (€12.14 billion) which was largely attributed to “difficult trading conditions” in BT Business (the unit that provides services to enterprise customers at home and abroad) ”principally driven by non-UK trading in our Global and Portfolio channels,” according to its earnings press statement.

Divestiture of overseas businesses and assets has been quietly underway since since the fall-out from its Italian accounting scandal eight years ago at what was then BT Global Services. However, BT said at its earnings conference that although the UK is “where we have a strong competitive advantage” and obviously, BT Global does not come under that umbrella.

Last weekend, the Mail on Sunday reported unnamed services close to Kirkby said she is keen to offload BT Global. At the earnings call, BT stated that BT Global, “shows strong commercial opportunity as we roll out Global Fabric, our Network-as-a-Service. We will explore ways to optimise the business and potentially partner to achieve scale.” Which would seem to make sense for a Network-as-a-Service (NaaS) platform.

BT’s Global Fabric has taken years to develop and deploy, and is due to go into commercial use in the New Year. Watch this presentation by its CTO Colin Bannon at Mobile Europe’s Network Now conference or read this interview with Bannon).

Cutting costs rather than raising revenue

Meanwhile, BT’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose just 1% to £4.1 billion but this was largely to reduced costs rather than increased income. The cost cutting includes the continuing, long-term plan to reduce the workforce: BT made 2,000 people redundant during its fiscal first half year, so its workforce is now 118,000.

BT Group is sticking to its full-year guidance on EBIDTA but expects its full year revenues to fall by between 1% and 2%, again in the main due to Global’s ongoing struggles, plus spending constraints in the public and private sector and “a highly competitive retail environment. 

Fibre is the future

In the UK, BT is committed to passing 25 million premises with fibre by the end of 2026. Kirkby stated, “Our nationwide full fibre roll-out has set new records, now reaching more than 16 million premises, and we have further extended our industry-leading take-up rate to 35%. Our cost to build continues to reduce, enabling us to increase this year’s build target to 4.2 million with no additional capex [capital expenditure] spend.

That take-up rate is the key. BT says its semi-detached access arm, Openreach, is making good progress on average revenue per subscriber. Income per connection rose 6% or £16 over the same period last year.

BT is already warning consumers that the Labour Government’s budget which will increase National Insurance (NI) contributions for employers will cost is an extra £100 million per year which will, of course, be passed on to customers.

The other ‘big plus’ pushed at earnings conferences by Kirkby was, “We also expanded our 5G network to cover 80% of the UK population, more than any other operator. These investments in the UK’s next-generation networks are enabling much better experiences, reflected in our improved net promoter scores.”

Investors have had great hopes for Kirkby’s leadership since she took over as CEO in February this year. They were not impressed by the first half results and BT’s share price fell 6.8% to 132.5 pence on the London Stock Exchange on Thursday. True, that is still 6% above where it was at the start of this year but investors have not much to cheer.

Telefónica Germany’s Rao to lead B2B & central AI units

Annie Turner
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Telefónica Germany’s Rao to lead B2B & central AI units

Mallik Rao, who is widely seen a tech visionary, has gained more responsibilities as his CTIO tenure is extended for another four years

The Supervisory Board of Telefónica Deutschland Holding has extended CTIO Mallik Rao’s tenure as by four years and expanded his responsibilities. He will now oversee the German operator’s B2B or enterprise division as well as a proposed unit to combine data platforms and centralised AI activities.

Rao (picture above courtesy of O2 Telefónica) became a member of the company’s Management Board as Chief Technology & Information Officer in October 2019. He has already been involved in some B2B services as part of running the Technology division, including private 5G networks and SD-WAN.

O2 Telefónica, Telefónica Deutschland’s brand name in Germany, has more than 45 million mobile customers and nearly 2.5 million fixed broadband subscribers, and generates annual revenues of around €8.2 billion. 

Trailblazer

Rao has earned a reputation for innovation and as a technology trailblazer. For example, O2 Telefónica was the first established operator to move subscribers to a public-cloud based network, In May it started by moving 1 million 5G customers onto AWS’ cloud.

Perhaps it’s not surprising that Rao’s tenure was extended before it expired. It was due to finish at the end of 2025 but now will run to 4 November 2028. He has a new job title, Chief Technology & Enterprise Officer and his new duties begin immediately.

Rao said in a statement, translated from German, “I am looking forward to continuing the successful development of O2 Telefónica’s business customer division together with our powerful team and further expanding its digital solution offering for companies.

“With our combined expertise in technology, business customer services and sales as well as data and AI, we want to be the best contact for small, medium and large companies when it comes to digital communication and state-of-the-art connectivity solutions.”

Tough gig

Responsibility for the B2B side of the business might be seen as a dubious honour, given the struggles some other operators are having with their corresponding divisions. For example, in the first half of this financial year, BT Business’ revenue is down 5.7% to £3.9 billion compared with the same period in 2023 and continues an established trajectory.

Likewise, Orange Business gained a new CEO in 2022 to turn the division around in after several quarters’ poor performance. In September 2024, Orange Business reported that in the previous quarter, revenues fell by 2.6% or €50 million.

Markus Haas, CEO, O2 Telefónica, commented, “I am very pleased that Mallik Rao will take over responsibility for all three areas as Chief Technology & Enterprise Officer. He has shown how he and his team have made a significant contribution to the growth of our company with their performance in the technology division.

“I am very confident that Mallik Rao will also unlock the full potential of the business customer division as well as the data platforms and central AI activities for our company.”

New division

The data platforms and centralised AI tools unit is being created to expand the technologies’ use within the operator. O2 Telefónica (the German operations’ brand name) already uses more than 50 AI applications which it says has delivered additional value in “triple-digit millions [of euros] per year” from more efficient and faster processes.

Haas added, “In our increasingly digitalized world, the demands on digital products and services are constantly growing and digital projects, especially for business customers, are becoming more complex. It is therefore a logical conclusion to bring our technology division closer to the business customer division and to our expertise in data and artificial intelligence.

Previously Rao held senior management positions at the Indian mobile provider Aircel and was CTIO at Vodafone Netherlands and Vodafone Turkey, after working for TATA Telecom.

KPN launches ‘Extra Safe Mobile’ for SMEs

Simon Dux
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KPN launches ‘Extra Safe Mobile’ for SMEs


The Dutch incumbent follows up on its ‘Extra Safe Internet’ services with new cybersecurity offerings for SMEs

KPN has launched new security filters tools that small to medium businesses can now use to help protect their mobile services. The expansion follows the carrier’s introduction of ‘Extra Safe Internet’ on business internet connections. KPN estimates that since the introduction of ‘Extra Safe Internet’, more than 70% of KPN’s SME customers have activated this service, which provides them with better protection against cybercrime. The remaining 30% can also activate it free of charge.

KPN is now expanding this security filter for mobile traffic with ‘Extra Safe Mobile’ and is also blocking websites based on a DNS and web filter in its mobile network. Even when a business uses a mobile network abroad, for example. This year alone, KPN has blocked more than 200 million websites for SME customers. For example, unsafe websites that are offered via phishing, or newly registered domains and spam URLs. In short, Extra Safe Mobile makes it possible to also provide extra protection for the business mobile internet traffic of employees.

More and more SME companies are taking advantage of the benefits of hybrid working, the cloud and the Internet of Things. “This is of course a very nice development, but it also requires extra protection,” said Thomas Tolsma, responsible for services to SMEs at KPN. “That is why we unburden SME entrepreneurs with low-threshold extra protection options against malware, phishing and cybercrime.”

He added: “With filtering of fixed and mobile internet traffic and our security package with back-up facilities, end-point protection of devices and awareness training, SME entrepreneurs can easily do the maximum to protect themselves. In this way, we enable companies to concentrate on doing business while data and the digital environment are a loT safer.”

Cyber package

In addition, KPN is introducing a new security package with all relevant security services that protect SME companies even better against digital threats. The new cybersecurity package includes a password manager which the operator claims goes further than most password managers, a backup option, workplace security that protects laptops or desktops against malware, ransomware, phishing and other cyber attacks. 

No matter how well protected, human behaviour is one of the biggest risks, which is why KPN added awareness training as part of the package. This increases cyber awareness and SME entrepreneurs and employees learn, using phishing simulations, for example, to recognise suspicious e-mails, avoid fake websites and better protect personal data.

Plenty of threats

Cyber-threats are one key area SMEs face but a new area is the phenomenon of drop shippers which are online stores that have their products shipped directly from China to consumers. Last month, the Netherlands Authority for Consumers and Markets (ACM) said it has already received more reports and questions about online purchases than it received in 2023 as a whole: over 18,000 reports in 2023, and already 20,000 thus far in 2024.

In September Dutch Police reported that, so far this year, they had received over 3,400 reports of people posing as police officers to get their victims to hand over money, jewellery and other valuables. In 2023, there were 500 such reports as a whole. 

According to NL Times, there has been a significant increase in fraud using English to scam people via a telephone call. The Dutch Fraud Help Desk received 800 reports of this type of fraud in the first half of October. A spokesperson confirmed that this was more than the whole month of September.

Report on Sub-Saharan Africa highlights $170bn opportunities by 2030

Annie Turner
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Report on Sub-Saharan Africa highlights $170bn opportunities by 2030

The GSMA’s research also found this diverse region, the least connected in the world, faces many challenges, but suggests remedies

The GSMA has launched its Mobile Economy Sub-Saharan Africa Report, 2024. It addresses opportunities and challenges in the region’s digital landscape.

The headline finding is that overcoming key connectivity barriers could unlock $170 billion in GDP for Sub-Saharan Africa by 2030, up from a $140 billion contribution in 2023. The region’s rapid digitalisation and 4G’s expanding coverage is expected to drive a surge in mobile connectivity, accounting for 50% of all connections by 2030.

However, 13% of the Sub-Saharan population will remain without coverage by the end of the period. Further, a 60% “usage gap” could persist: that is, although many people live within coverage areas they struggle to get online due to factors like unaffordable devices, limited digital skills or online safety concerns.

Globally, 3.1 billion people – 39% of the global population – are impacted by the usage gap. Sub-Saharan Africa is the least connected region, with the largest usage gap worldwide, although there is great diversity in this region that covers 48 countries. It is often divided into four main regions: West Africa, stretching from Senegal to Chad; Central Africa, from Cameroon to the Democratic Republic of Congo; East Africa, from Sudan to Tanzania; and Southern Africa, from Angola to South Africa.

Connectivity and usage gaps

Addressing connectivity gaps could unlock $170 billion in gross domestic product for the region while technologies “like generative AI” could contribute up to $1.5 trillion to Africa’s economy by 2030, apparently.

5G promises to be a gamechanger: the region stands gain up to $10 billion economic benefits by 2030, accounting for 6% of the mobile sector’s total economic impact. By 2030, the GSMA expects 5G to account for 17% of total connections primarily in South Africa, Nigeria and Kenya.  

In addition to connectivity challenges, the region faces high operating costs, inflationary pressures and volatile energy prices.

Source: GSMA Infographic of major findings of report on Sub-Saharan Africa, November 2024
GenAI and satellite

The GSMA report is optimistic about the potential of Generative AI and satellite partnerships bridging gaps across sectors. GenAI is expected to contribute up to $1.5 trillion to Africa’s economy by 2030, with mobile operators increasingly using AI for customer engagement and network optimisation. MTN and Vodacom, for instance, are deploying AI-powered initiatives to improve operational efficiency, although the region faces a shortage of skilled AI professionals.  

The report emphasises the need for progressive spectrum policies to support long-term growth and equitable digital access. It particularly urges governments to release spectrum in the 6GHz band and to adopt policies that enable mobile networks to expand efficiently and affordably, and in an environmentally sustainable way.

It also calls for costs to be cut – for example with less taxes on the sector, by lowering import duties on handsets and reduced activation fees – to make services more widely accessible.

The report notes that 5G Fixed Wireless Access (FWA) is gaining traction as a primary broadband solution in countries such as Angola, South Africa, Nigeria, Kenya, Zambia, and Zimbabwe.

Fraud, universal service funds

The issue of fraud also needs to be addressed: South Africa became the first country in Sub-Saharan Africa to implement GSMA Open Gateway APIs, focusing on fraud prevention and security with Number Verification and SIM Swap APIs. This initiative is part of broader efforts across the region to improve digital security, particularly within digital banking​.  

Finally, many universal service funds in Sub-Saharan Africa are underperforming, often hindered by inefficiencies. The report calls for reforms to improve transparency, streamline disbursements, and direct funds toward impactful initiatives, such as digital literacy programmes in underserved areas

“Our findings this year reveal both the extraordinary potential and the challenges facing Sub-Saharan Africa’s mobile ecosystem,” said Angela Wamola, Head of Sub-Saharan Africa, GSMA. “To fully realise the benefits of connectivity, it is essential for operators, policymakers, and stakeholders to address affordability barriers, support infrastructure expansion, and foster collaborations that drive digital inclusion and economic impact.”  

Vodafone Spain, Telefonica sign new fibre wholesale deal

Annie Turner
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Vodafone Spain, Telefonica sign new fibre wholesale deal

Vodafone’s owner, Zegona Communications, says the deal is a key milestone to transforming the operator in Spain

Zegona Communications, owner of Vodafone Spain, Telefónica de España  and Bluevia Fibra have signed a binding five-year contract.

Earlier this year, Zegona announced it had signed a non-binding agreement to create fibrecos with Telefónica and MasOrange, and a non-binding term sheet for a new fibre wholesale agreement with Telefónica.

The combination of these three deal was intended to complete the transformation of Vodafone’s fixed line strategy to deliver FTTH nationally. Zegona said in a statement, “Today’s announcement delivers a key component of that strategy.”

The new contract will come into force on 1 January next year and replaces the current wholesale agreement which expires at the end of this year. The new terms “will deliver significant economic benefits to Vodafone Spain alongside enhancing core operational processes and improving customer experience,” according to Zegona.

Eamonn O’Hare, Chair and CEO of Zegona (pictured), commented, “This new contract complements the Telefónica fibreco which was also signed today. Both contracts cement our long-term partnership with Telefónica, deliver significant economic benefits and represent key milestones in our journey to transform Vodafone Spain.”

Blackstone says data centre boom to hit $2 trillion in five years

Simon Dux
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Blackstone says data centre boom to hit $2 trillion in five years

Company has over $70 billion worth of data centre assets and views the coming power crunch as an opportunity to invest

The intersection of digital infrastructure and the need for power has been brought to a head by AI’s colossal data requirements and while the overall telecom market stagnates, the data centre market is central to storing, processing and delivering this data. So much so that global investment company Blackstone, using Dell’Oro figures, reckons the US will see over $1 trillion invested in data centres over the next five years, with an additional $1 trillion invested internationally. 

The scale of these new facilities is staggering, according to Blackstone. The largest data centre currently under construction is an estimated 500 megawatts, which is equivalent to the power demand of 375,000 homes. As a matter of course, OpenAI CEO Sam Altman recently proposed building clusters of 5,000-megawatt data centres across the US, each of which would be equivalent to the entire US data center capacity built in the last 12 months.

Blackstone reckons regions like Europe and Asia are still a couple of years behind the US in terms of demand growth. But with Asia representing two-thirds of the global population and accounting for just 15% of global data centre leasing, the potential for growth in these regions is immense.

Over the past five years, the number of US-leased data centres has increased 17 times, driven by the rise in cloud computing and AI. This year alone, 5,000 megawatts of data centre capacity will be added in the US. That’s roughly 1% of the nation’s total power consumption—about the same amount of power used by Miami-Dade County’s 2.7 million people.

Blackstone has over $70 billion worth of data centre assets, with another $100 billion in its pipeline, including facilities under construction and its announced acquisition of Australasian hyperscale data centre company AirTrunk. As AI grows, it argues, demand for data centers and power will only grow which it said creates “a wealth of opportunities”.

The coming power conundrum

As Europe lags the US, it still has a capacity to react to this convergence of power and data but the numbers are pretty daunting. Blackstone points to Atlanta, now the second-largest global data center market, to highlight the challenge.  Data centre demand has increased by 46 times since 2019, and as a result, power demand in Georgia is projected to grow by 39% between now and 2030. This type of growth is not unique to Georgia—states like Arizona, Indiana, Virginia, and Texas are also contending with 5% or higher annual growth in power demand.

For a US market that had relatively flat power demand for the past 20 years, this sudden surge is a major shift. Blackstone reckons the country faces the prospect of having to double its power grid’s capacity over the next 12 to 13 years to keep up. At the same time, the rise of electric vehicles is adding more strain to the grid. Every new EV increases a home’s power consumption by 40%. “In addition to this strain is the $500 billion being invested in reindustrialising the US with power-hungry factories,” it added, including several semiconductor plants. On the supply side, things don’t look any easier. 

Blackstone reckons power generation and utilities, particularly in the renewable space, are poised for significant growth. “With trillions of dollars needed to upgrade the power grid, we believe investments in wind, solar, and natural gas generation will yield strong returns. In particular, we expect significant demand for natural gas pipelines, as renewables require backup power,” it said. 

Lastly, the broader energy transition, including investments in battery storage, HVAC systems, and transmission infrastructure, presents a “meaningful opportunity to capitalise on this megatrend”. 

AI driving the data wave

Blackstone said data usage has increased 100 times over the past 15 years, and even more striking, more data has been created in the past three years than in all of history. But it’s not just the sheer amount of data that’s growing—it’s the intensity of the data being processed. “Traditional tools, like Google searches, are lightweight in terms of power consumption. Conversely, a ChatGPT query requires 10 times the power of a Google search and AI-generated images using tools like DALL-E require 50 times the power of a simple Google search. And if you ask SORA to create a video? We’re talking 10,000 times the power consumption,” said Blackstone. 

To put that into perspective, creating a basic AI-generated video is the energy equivalent of charging your phone 119 times. As AI applications become more advanced and widespread, Blackstone believes we are just beginning to scratch the surface of what it calls the next wave of data intensity.

How Telcos are Using AI-Powered Decision Intelligence to Drive Profitable Customers | White paper by MDS Global

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How Telcos are Using AI-Powered Decision Intelligence to Drive Profitable Customers | White paper by MDS Global

How Telcos are Using AI-sPowered Decision Intelligence to Drive Profitable Customers: Strategic Priorities and Real-World Use Cases

How can CSPs effectively attract and retain high-value customers? What role does artificial intelligence play in predicting customer behaviour, optimising lifetime value, and reducing acquisition costs?

In this whitepaper, we answer these questions, offering a comprehensive analysis of how CSPs can leverage AI-powered decision intelligence to transform profitability and customer engagement. Read it today to explore the following: 

  • Addressing profitability challenges: The need to deliver personalised customer experiences amidst shifting behaviour, rising expectations, and increased operational complexity.
  • Unlocking AI for decision-making: How communication service providers can use AI to drive profitable decision, and overcome key barriers to adoption.
  • Transformative use cases: Five applications of AI-powered decision intelligence that make a critical difference in driving profitable customers.
  • Real-world success stories: Eight examples of CSPs using AI-powered decision intelligence to achieve significant profitability gains.
  • Strategic focus areas: Seven key priorities for CSPs to implement a successful Decision Intelligence strategy, with a RAG assessment tool to track progress.

53% of UK altnets lack operational control as they struggle to meet demand

Annie Turner
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53% of UK altnets lack operational control as they struggle to meet demand

This is according to research from Totalmobile which sells software to manage field operations

UK fibre providers face operational challenges, with 53% reporting a lack of day-to-day control over their field operations, according to new research from Totalmobile, which provides management software for field service. The study surveyed 100 senior telecom managers. It highlights how rising customer demands, operational blind spots and insufficient technology are creating hurdles for fibre providers across the country.

The UK government’s target is 99% FTTP coverage by 2030. The report warns that without urgent adoption of “advanced digital technologies”, many could face penalties, lose customers and end up with unsustainable operational models.

Unrealistic SLAs

More than 60% of respondents identified unrealistic service level agreements (SLAs) and “strain” on the workforce as top concerns as demand for fibre broadband overwhelms providers. Apparently this is making it difficult “to ensure first-time fixes” and meet customers’ expectations

Operational Blind Spots 

More than half (53%) of senior operators feel they lack day-to-day control over field operations. Totalmobile translates this as, “Without real-time visibility into their workflows, many providers risk missing deadlines and underdelivering on customer promises”.

Immediate tech investment 

Nearly 60% of fibre providers acknowledge their technology cannot handle the complexity of modern operations. Investment in areas such as automated workforce scheduling, mobile access to real-time data, and predictive maintenance is seen as critical to stay competitive.

Sustainability is imperative

Totalmobile says that as the emphasis on environmental, social and governance (ESG) targets intensifies, executives face more pressure to minimise site visits and reduce carbon emissions. Notably, 38% of respondents indicate that achieving ESG targets is a primary objective for senior leadership. Providers that fail meet ESG targets could face operational risks plus potential fines and reputational damage.

Totalmobile’s research found that altnets that embrace technologies like automated scheduling and predictive analytics allow fibre providers to manage their workforce proactively, anticipate potential issues and better meet SLAs.

According to Rob Gilbert, Managing Director of Commercial and Infrastructure at Totalmobile, “As the fibre industry continues to face increasing complexity, adopting digital tools will be key for providers to maintain a sustainable business model while delivering high-quality service”.

The imperative to become customer-centric service innovators

Michal Fridman, VP Marketing, RADCOM
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The imperative to become customer-centric service innovators

Partner content: To thrive, operators must become digital service innovators, setting new standards in service delivery, quality and performance

Customer service is in the news again as the Federal Communications Commission (FCC) recently opened an inquiry into the quality of customer support across the telco industry, including broadband, cable, satellite and voice services. The aim of the inquiry is to empower consumers to “easily cancel subscriptions, talk to live customer representatives, improve accessibility of customer service engagement and more”.

Across the Pond, a British review of the best customer service from operators by Choose, a fair price comparison site, marked only four major providers that have complaint levels in line with or below industry standards, with some complaints driven by faults, service and provisioning.

Look at the whole

Customer service is clearly only part of the customer experience battle. Operators often have to contend with technical problems, natural disasters, power outages, or cyber attacks which could fuel further customer frustration. Cogent Communications for example suffered an outage in August that impacted thousands of customers in all regions, across the US, Britain and Europe alike that lasted over an hour in some areas.  

In France, fiber optic cables were sabotaged in July, resulting in outages across the country and impacting telecom firms Bouygues, SFR and Free. While Telenor in Norway, experienced an outage at the beginning of September due to a technical error that also impacted customers of Telia and Ice, and prevented the public from accessing the emergency number 112 for three hours.  The incident was reminiscent of a similar occurrence in the UK in 2023 that lasted 10.5 hours and affected 14,000 emergency calls.  

While operators and businesses may have implemented generative AI and other advanced technologies in an effort to offer new options, customer experience is still experiencing an unprecedented low. This is particularly true for the telecom industry. A global survey by PricewaterhouseCoopers suggested that customer experience is still “fundamental and necessary condition for pricing power.”

The consulting firm stressed that telecoms need to “rethink the entire customer experience: the network, the device, sales and service and the potential to provide value-added products and services.”

It is becoming clear that deploying generative AI, advanced 5G and other technologies, is no longer enough. For operators to thrive, it is essential to become digital service innovators, setting new standards in service delivery, quality, and performance to match enhanced speeds and provide optimal customer experience.

Focus on reliability

Customers demand and expect reliability. A recent study found that telecom subscribers prefer to pay higher prices for products or services they know and trust and are less sensitive to price changes. Customer satisfaction is driven by perceived value for money (49%) and reliability (48%), with tailored offerings and speed following behind according to another report.  

In fact, 42% of customers will show more loyalty to their provider spending four times more than new ones, confirming that telcos should be placing more efforts to retain existing customers.

Operators need to implement a process of monitoring, evaluating and enhancing quality of services and understand the actual customer experience in real-time.  

Automated assurance solutions offer a way to fully understand the subscriber’s true experience, both as a collective group and an individual. They can drill down to provide deep insights into the customer experience, offer usage trends and deliver service analysis across multiple devices and technologies.

With a 360-degree view of the customer experience in one package, operators save time through anomaly detection, anticipate potential churners, and resolve issues quickly and efficiently. They can also benefit from increased loyalty, and additional upselling or cross-selling opportunities.

Vendors like RADCOM, that incorporate artificial intelligence and machine learning into the assurance solution package, are able to provide a pro-active means to identify problems before they impact the subscriber, and gain end-to-end customer experience visibility. Operators can compare a subscriber customer experience index to a network baseline and correlate real-time subscriber analytics from the RAN to the edge, to the core.  

With advanced artificial intelligence and machine learning, operators can understand the genuine customer experience even with encrypted data, utilizing automated anomaly detection and recommendations to correct faults quickly.  

Shift to customer-centric focus

Our reliance on digital devices, and voice and data services, has become essential to daily life. Telecom operators, at the center of these critical digital systems in every country, need to usher in a new era of customer-centric digital service innovation in order to remain relevant. And this must be fuelled by enhanced standards in quality, performance and delivery.  

The author, Michal Fridman, is VP Marketing at RADCOM

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