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1&1 Drillisch accepts Telefonica Deutschland’s roaming agreement

Telefonica put the new deal on the table in February after the two had been unable to agree terms, but it’s taken some ironing out.

1&1 Drillisch – which formerly changed its name to 1&1 in April – and Telefonica Deutschland (which operates under the O2 brand in Germany) have finally hammered out the details of their roaming agreement.

It seems reports that the two had reached agreement in February was somewhat premature, but the deal is now sealed. The terms of the agreement are largely confidential, but 1&1 will serve its subscribers by roaming on Telefonica’s national infrastructure for five years.

At the end of that five years, there is the option to extend the contract for two more five-year periods, although the second of them will be renegotiated.

1&1 must use the time to build its own network to fulfil the terms of its controversial national 5G licence which it won in 2019.

The German regulator took the 5G spectrum auction as an opportunity to award a licence for a fourth national operator. This decision was challenged in courts and taken to the European Commission by the unhappy incumbents, but prevailed.

A win:win outcome?

In a statement Telefonica said, “As planned, the companies are putting their long-term partnership on a new contractual basis with the signing of this agreement. With the NRA [National Roaming Agreement] Telefónica Deutschland is securing long-term valuable revenue streams”.

Tensions arose between Telefonica Deutschland and 1&1 Drillisch last September after the latter complained about price increases on the host network and argued that Telefonica had broken pricing conditions it agreed to when it acquired E-Plus in 2014.

The owner of 1&1 Drillisch, United Internet, later reported the price increase between July and the end of last year cost it €34.4 million, but said it would offset the loss in the first half of this year.

And finally…

Telefonica made a new offer in October, but it did not satisfy 1&1 Drillisch which took its woes to the European Commission.

After an investigation, the Commission sided with 1&1 Drillisch and ordered Telefonica to make a better offer, which appears to be acceptable.

Now 1&1 Drillisch can crack on with the small issue of building a new national 5G network.

Amdocs, Microsoft extend collaboration to support operators’ cloud migration

More of Amdocs’ portfolio will be available on Microsoft Azure and Azure for Operators: Amdocs becomes Preferred Industry Scenario Partner.

The collaboration is intended to enable and speed up service providers’ move to cloud-native solutions, cloud transformation services and deployment of 5G networks in the cloud.

The two say the advantages of a more rapid cloud migration are that service providers will be able to offer new and differentiated cloud services to drive growth.

They also claim it will boost customer loyalty and add value thorugh fast and agile interactions, and an ecosystem of third-party partners.

BSS/OSS in the cloud

All this will be possible, they say, by using Amdocs’ cloud-native BSS/OSS solutions and services, and “unique delivery accountability model” while benefiting from Azure’s cloud capabilities to build, manage and deploy operator applications at scale. 

Shuky Sheffer, President and CEO of Amdocs, said, “Microsoft is playing a pivotal role in accelerating [communications service providers’] journeys to the cloud…We are therefore delighted to become a Microsoft preferred Industry Priority Scenario (IPS) Partner.

Unique opportunity

Hudson Althoff, EVP, Microsoft’s Worldwide Commercial Business, added, “In the era of 5G and the cloud, service providers have a unique opportunity to future-proof their networks, lower operating costs and boost revenue.

“Still, to realise the benefits of the cloud, service providers need a business system infrastructure that can operate with scale, agility and pace. Our collaboration with Amdocs delivers the advantages of 5G and the cloud in addition to offering service providers a rich ecosystem of apps and devices.

“With our joint integrated platform, service providers can provide mobile edge computing and private networks for the digital enterprise.”
 

Netherlands’ government orders telcos to avoid certain vendors

The Dutch mobile operators are banned from revealing any details.

The Ministry of Economic Affairs has confirmed the Netherlands’ government issued orders to mobile network operators about their choice of network suppliers.

It also made it clear that KPN, T-Mobile and VodafoneZiggo are prohibited from revealing any details of the orders.

Naturally the assumption in the press is that the government has banned the operators from deploying Chinese vendors’ equipment in their 5G networks.

Maybe the secrecy is to avoid being in Sweden’s boots, whereby a ban by the regulator on Chinese vendors has led to naked threats of retaliation from the Chinese government.

Sweden’s Ericsson has issued another, stark warning this week that it could suffer in the Chinese market as a result of the Swedish ban.

Or maybe not. A Huawei spokesperson told the Financieele Dagblad that, “We do not supply 5G core equipment in the Netherlands”.

Vodafone-led consortium wins first operating licence for Ethiopia

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The country has awarded its first telcoms licence for $850 million (€698 billion). MTN’s bid for a second licence was declined.

The winning consortium is led by Kenya’s Safaricom with Vodafone and Vodacom, and includes the British finance development agency, CDC, and Japan’s Sumitomo.

South Africa’s MTN bid $600 million for a second licence, which was rejected on the grounds of being too low. The licence will be offered for tender again.

Ethiopia is a closed economy where telecom services are provided by what the Financial Times calls “the world’s largest remaining telecoms monopoly”.

The country has a population of 114 million and a booming economy, driven by state-led development. The Ethiopian government described it as the “deal of the century”.

Restrictions

However, the government has imposed some restrictions. New entrants must build their own infrastructure rather than look to third-party towercos or leased capacity from incumbent Ethio Telecom.

It was also against allowing mobile money services, which Safaricom launched the hugely M-pesa mobile payments service in Kenya in 2007, although it has now said new entrants will be allowed to offer such services within a year, subject to approval by the central bank – something that has proved a stumbling block in many markets.

This subdued the appetite to enter the market for some, coupled with the unrest in Tigray late last year.

Second chance

However, telco groups Orange and Etisalat are widely expected to reassess the opportunity when the second licence is put out for tender.

Could Open RAN add $285bn to global GDP this year?

Analysys Mason’s report, commissioned by TIP, thinks so and Dell’Oro reports a five-fold increase in Open RAN spend in Q1.

Analyst firm Dell’Oro said in a blog preliminary estimates suggest Open RAN revenues increased five-fold in Q1 compared with the same quarter last year.

This includes macro and small cell, and baseband hardware and software that comply with OpenRAN and O-RAN standards.

The Asia-Pacific area provided most of the momentum, although much of this could be attributed to Rakuten Mobile and other Japanese operators.

Smaller vendors advance

Dell’Oro’s blogger, Stefan Pongratz, said the top five RAN vendors – Huawei, Ericsson, Nokia, ZTE, and Samsung – dominate Massive MIMO market, which is worth more than $10 billion, but Open RAN’s proponents are optimistic this will change.

He wrote, “Predicated on the assumption that the shift towards wider bandwidths will be a catalyst for 5G SA, the asynchronous availability of the upper mid-band spectrum offers a window of opportunity for new entrants”.

The point was underlined at the end of last week with Mavenir announcing it is involved in creating Thailand’s first smart city which will be built around 5G OpenRAN.

Analysis by Analysys

Analysys Mason has also published report, commissioned by the Telecom Infra Project (TIP) that suggests Open RAN and disaggregated solutions could add at least $285 billion (€234 billion) in global gross domestic product (GDP) between 2021 and 2030.

After that, it says the global GDP could benefit to the tune of $91 billion per year.


The analysis is detailed, but here’s a flavour of the thinking, “The ability to deploy better networks more quickly and within or below existing cost envelopes would enable operators to expand rural coverage more readily, particularly in countries where this is lacking, while also introducing more advanced network features and services in urban areas ahead of schedule, which could start to alleviate some of the pressure on margins.

“More cost-efficient and flexible networks, as well as improved coverage and greater innovation in services offered by operators, would in turn unlock broader economic benefits for society.

“This could be in the form of new business models that could be realised for infrastructure players and non-traditional operators, better access to existing and emerging online services for consumers, and accelerated digitalisation of industry sectors through new enterprise and smart-city use cases that would be enabled by a faster transition to advanced technologies.”

You can access the full report here.

BearingPoint, MATRIXX create digital market place to help monetise 5G and IoT

Generating a significant bump in revenues from 5G and IoT are two of the biggest challenges facing operators.

Beyond by BearingPoint and MATRIXX Software have partnered to help communications service providers (CSPs) develop, sell and monetise 5G and IoT B2B solutions in real-time via a digital marketplace.

The integration of Beyond’s Infonova Digital Business Platform with MATRIXX Software’s Digital Commerce Platform is intended to help CSPs to combine connectivity and network slicing with IoT, edge and cloud, third-party services and vertical industry applications to unlock new revenue and growth models.

Both platform are cloud-native, microservices-based and developed with API-first architectures to facilitate integration with 4G, 5G and fixed network elements, and to support IT applications across any number of native and partner IT landscapes.

Operators can start with their preferred service or use case that can be rapidly scaled.

Ecosystems beat 5G

A recent survey found 95% of enterprises and small to medium businesses (SMBs) believe that participating in an ecosystem of partners to create and deliver advanced solutions is more promising than the 5G network technology itself.

This partnership is designed to do that, giving them MATRIXX Software’s 5G monetization capabilities, integrated with Beyond’s digital ecosystem orchestration and monetization platform.

Karl Whitelock, IDC Research Vice President, Communications Service Provider Operations and Monetization, comments, “5G is about integrated solutions that require CSPs to seamlessly orchestrate and monetize several technologies and partner contributions often in real-time, which most IT environments cannot address today.

“To get the true value out of 5G, CSPs need to scale their IT to support a growing number of use cases and expanding number of partners, thereby requiring a digital ecosystem orchestration and monetization platform to meet these needs such as that defined by the Beyond and MATRIXX partnership.”

Marrying capabilities

The marrying of Beyond by BearingPoint and MATRIXX Software capabilities include: flexible and scalable real-time charging and monetization such as session-based and SLA-based charging; slice-aware charging; and charging for enterprise IT functions across solution partners and business customers.

The orchestration of 5G solutions is automated using order management and service fulfilment across any IT environment and partners’ systems via a single platform, while managing the technical dependencies between services.

The joint solution is designed to help operators manage and monitor partners’ services like self-onboarding and multi-partner settlement agreements.

The companies provide customers with real-time exposure of services, their accurate information on utilisation and balances helps improve customer experience, faster time to market and less IT operating cost.

 

Qualcomm seeks to scale 5G IIoT with specialised modem

The Qualcomm 315 5G IoT Modem supports global 5G NR sub-6GHz bands and operates in stand-alone (SA) only mode.

Qualcomm Technologies said the modem can switch to LTE as needed and  be deployed over private or public 5G networks, leveraging network slicing or in isolation.

The modem was designed with industrial and enterprise applications in mind, intended to meet industry segments’ needs including: retail, energy, automation and manufacturing, precision agricultural, construction, mining, public venues, and more.

Integration

This solution is designed for for IoT applications integrated with existing Ethernet and wired technologies. The modem has an “extended life software and hardware maintenance and support, prolonging IoT devices for the duration of their life span,” firm claims.

The modem should be commercially available in the second half of 2021.  

Bosch

Dr. Steffen Haack, Executive Board Member, Bosch Rexroth AG who responsible for development, commented, “We are…working intensively on integrating 5G into our products. The Qualcomm 315 5G IoT Modem enables interesting new functions specifically for industrial IoT applications and helps us to open up new applications with 5G”.

There is more information here.

 

 

Accedian and Colt: How enterprises will benefit most from standalone 5G

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Join Richard Piasentin, Chief Strategy & Chief Marketing Officer at Accedian and Mark Gilmour, VP Mobile Connectivity Solutions at Colt Technology Services, in conversation on the eve of signing a 10-year strategic partnership between the two companies, as they discuss: – the potential of 5G in supporting enterprise customers – the innovations that can already be harnessed – lowering barriers to entry and opportunities for new entrants – hyper local connectivity and edge compute at hyperscaler flexibility – supporting the growth of the connectivity ecosystem – the critical importance of visibility and assurance – the benefits yielded by the close partnership between Accedian and Colt and more. For further information, please visit accedian.com

Why Telefónica’s automation journey “will never end”

Juan Manuel Caro Bernat is Director of Operations Transformation at Telefónica. He talked to Annie Turner about the operator’s transformation journey.

Juan Manuel Caro Bernat is better known as Juanma, reports directly to Telefónica’s Global CTIO, Enrique Blanco, and lives and works in Madrid (pictured). At the time of this interview he was just short of his twentieth anniversary at Telefónica.

This article first appeared on FutureNet World and is reproduced with kind permission.

Caro Bernat is leading a transformation programme that began about six months ago and has an initial three-year horizon, but Caro Bernat humorously predicts it “will never end” – because the “end” goals will forever evolve.

The programme’s aim is to dramatically change the operator’s IT and network operating model, accelerating the adoption of the new ways of working needed to manage the future open and virtualised architecture and, ultimately, fulfil the promise of autonomous networks.

He says that “the network is changing in ways it has never been changed before”, and that these alterations are “happening very fast”. Indeed, on the day of our interview, Telefónica Deutschland/O2 announced it was the first network in Germany to have Open RAN live, at three pilot sites in Bavaria.

Ecosystem play
This is acting on the plan it announced in March 2020 – to create an ecosystem to advance the testing and industrialisation of Open RAN across its footprint. Its founding partners included Altiostar (in which it has invested), Gigatera Communications, Intel, Supermicro and Xilinx.

The RAN accounts for a big amount of the operator’s network CapEx, and the idea behind the Open RAN movement is to introduce greater competition into the market to stimulate innovation and reduced prices.

Hidden cost and complexity

Caro Bernat notes there is also a hidden “cost” associated with Open RAN in terms of more complex operations and an integration burden that must be tackled, but believes it definitely pays off.

Although there are already millions of customers using services running on virtualised networks in some countries, Caro Bernat stresses that, “You cannot operate an open and virtualised network using the same model of operations…we need to change the way we do things to get all the advantages of the new technologies: automation is mandatory, right across the access, transport and core networks to tackle the complexity and take advantage of the benefits of a programmable network”.

He continues, “The technology changes are both problem and an opportunity, and it will always keep changing,” which also means constant operational changes.

So where is Telefónica in its progress towards open, programmable and automated networks and IT? Caro Bernat comments, “We are working on very practical use cases…and with other operators to define how to fully automate and there is a long way to go to reach that ‘autonomous’ moon-shot”.

Short-term goals


The years 2020 and 2021 are the short term regarding the new Telefónica’s automation strategy, with two main areas of focus. The first is about putting the “enablers” in place, by which Caro Bernat means deploying open data platforms built on open-source software to get rid of the intractable problem of siloed data.

The data from those open platforms, as well as from infrastructure, and including orchestration data and AI, will be flowed into data lakes that are open source.

Automation will be built on top of this enabling layer, which Telefónica calls Fast OSS. It is complemented by UNICA Next, the group’s end-to-end virtualisation programme: for example, if Fast OSS needs to scale up a function in the evolved pack core as a serious overflow of traffic is predicted, capacity can be duplicated or halved, or whatever is necessary to maintain the right level of service, dynamically and without human intervention.

Caro Bernat says, “Fast OSS means we can put all the data from all over the network – all the VNFs, servers, orchestration, AI – in a common data lake. It is designed this way using open-source standards like [Apache] Kafka [the distributed event streaming platform] or Elasticsearch.”

Acclerating with Fast OSS

Fast OSS was developed by Telefónica to ingest, normalise and model data from multiple sources. Along with technology partner Everis, they were part of a team that ran a proof of concept Catalyst project at TM Forum, working with fellow champion American Tower Corporation, supported by Verbio, and Vlocity, a Salesforce company.

The idea is that this control can be applied to any network function using the UNICA Next architecture, taking it up to the service level – and even to the customer level– because everything below in the network is automated. The provider could even restart a site, as operators currently do from a network operation centre (NOC).

The Catalyst used the Forum’s Open Digital Architecture (ODA), which is an evolving framework for the type of open architecture Telefónica and many other network operators need to make fully automated infrastructure reality. In summer 2020, Telefónica committed to developing the ODA, along with fellow operators and some major vendors.

Enrique Blanco, CTIO, Telefónica Group, said at the time of the announcement, “The Open Digital Architecture is a true enabler to accelerate this digital transformation, allowing limitless scaling and multi-tenancy while remaining agnostic to the choice of underlying compute platform.

“This architecture paves the way to leverage cost-effectiveness, flexibility and scalability avoiding infrastructure lock-in while embracing true continuous integration and continuous deployment cycles.”

Data is the key


As Caro Bernat stresses, “Data is the key – you cannot automate without usable data,” which involves “introducing new processes, new tools and new skills into the teams – you must have operational transformation in parallel with technology advances”.

Hence the second strand of short-term activities is establishing new ways of working that can properly harness the enablers. This is all about breaking down organisational siloes, such as those of IT and Network.

The ethos at this end of the deal is “to streamline plan, build, operate” Caro Bernat explains, using DevOps and reskilling teams so that they can work in the planned programmable environment.


He acknowledges that shifting mindsets and making organisational changes is perhaps the greatest challenge of all, and technological change will not succeed without it. He said his company engaged the workforce in a lot of communication about the changes and why they are needed, while they are still working in the current ways in readiness.

He says, “It is important to create a common knowledge and understanding of what’s coming. If people are very involved, they are willing.”

He is insistent that it is essential to have new critical skills in-house, noting, “It might be in ten years’ time that we can buy automated network components out of the box, but at the moment we need to develop it ourselves because there is nothing out there on the market”.

The medium term


Moving to the medium term of 2022-2023, Caro Bernat says, “So the enablers and infrastructure will be in place, then we move to the automation mode and need to focus on simple use cases first and AI, then progress to more complex, cross-domain, use cases. As we gain experience and more data and platforms, we will push automation to the next level.

“We will change how we work in every process – our priorities will depend on what the market needs – for deploying, integrating, testing and operating. We will be upgrading the network constantly, and maintenance windows will disappear (or so they say!). This is because microservices will let us produce new versions of VNFs as we need them.”

“We will then have hundreds of VNFs running over virtualised infrastructures, and we will be updating every one of them on the fly, then test immediately. At the moment, the testing for bare dmetal equipment takes us weeks or months, so the processes must change dramatically.”

The second plank of this mid-term automation phase will be putting self-healing, self-provisioning and “and all the other self-things” to manage traffic automatically and to fix themselves if a problem arises. Caro Bernat notes that although these “words” have been around for a long time, it is only now, with all the other changes in tandem, that they are becoming “properly possible”.

The long term


He views 2024 and beyond as the long term, moving towards autonomous networks that can manage complex problems. He says this will be “scientific” R&D territory, for example progressing TM Forum’s ODA with other operators to ensure standardised approaches and interoperability of services, which will allow operators to deliver services beyond their own footprint.

The Forum’s suite of Open APIs is a critical element of the ODA, and Telefónica was a founding member of that initiative too, back in 2016.

He states, “We will see many new [vendor] entrants to the market like the Open RAN companies we mentioned earlier, but also companies like IBM and NEC from the IT side: sourcing will change in the ecosystem.”

He acknowledges that delivering services is another aspect of new ways of doing things and says this will change how telcos approach procurement, involving far more co-creation than ever there was in the past. It will also necessitate new business and partnership models, “changing the traditional way in which we interact with the ecosystem”.

Caro Bernat says, “We don’t know exactly what the future autonomous network is going to look like yet, but it is clear to me that openness and end to end virtualisation will be key characteristics. And on top of that, we need to define an automation architecture and hierarchy based in AI algorithms embedded in every layer and working together somehow. It sounds like a challenge!”

Citymesh wants to be Belgium’s fourth national mobile operator

The B2B wireless connectivity provider says it will apply for the spectrum package reserved for a fourth operator in the upcoming 5G auction.

Citymesh has announced its intention to compete in Belgium’s consumer market after being acquired by IT services provider Cegeka in December 2020.

The firm expressed confidence in being able to secure investment of about €100 million to become the country’s fourth national mobile network operator.

Belgium is lagging most of the rest of Europe regarding 5G spectrum auctions. It is now in a public consultation and the auction is not expected before early 2022.

Ambition to fruition

CEO Mitch De Geest said in a statement, “Citymesh has had the ambition for years to become the fourth telecom operator.

“We have found the final pieces of the puzzle; we have national 4G and 5G spectrum, a clear vision and, together with Cegeka, a strong and complete offering to shake up the telecoms market in Belgium.’

If it wins the full spectrum package, Citymesh would have access to 700MHz, 900MHz, 1400MHz, 1800MHz and 2000MHz spectrum, on top of its existing 2600MHz and 3500MHz spectrum.

It believes this would be sufficient to maintain its B2B focus and launch a highly competitive consumer offer.

“We have the great advantage of being able to build our networks from the ground up according to the latest standards,” added De Geest.

“Thanks to sufficient capacity in the 5G package, we can also use these state-of-the-art 5G networks to realise a unique offering on the consumer market”.

Competition to lower prices

The telecoms regulator, the Belgian Institute for Postal Services and Telecommunications (BIPT) recently updated a 2018 study which concluded a fourth national operator could reduce mobile data prices.

De Geest believes reserving the spectrum package for a new player “would not only be interesting in terms of mobile internet prices, but also in terms of employment and the development of Belgian talent”.

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