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1.56 million private 5G cells deployed by 2027

Spectrum allocated to 5G across a wide range of frequencies will stimulate new use cases and bring about a rapid growth in private mobile networks.

Rethink RAN Research’s new study says the rate of growth in private networking will be more spectacular than public from a lower base, with 1.56 million private 5G cells deployed by 2027, compared with 1,945 in 2020.

Data traffic generated by private 5G networks will explode from 51,115 EB per month globally in 2020 to 77.46 million EB per month in 2027.

 The bandwidth boom will begin in the ‘workhorse’ 1-6 GHz mid bands but become increasingly dominated by the higher frequency mmWave bands above 6GHz over the next five years.

The amount of spectrum awarded in the high bands will dwarf that in the lower bands, with RAN Research predicting that China, for example, will have allocated 540MHz in the mid 1-6 GHz bands by 2027 but as much as 8.25GHz in the mmWave above 6GHz.

This will be reflected in accelerating rates of cell deployment, with the total number of 5G cells deployed in the world rising from 1.18 million in 2020 to 13.88 million by 2027.

By 2027 the cell breakdown by band is predicted to be 6.23 million in the mmWave, almost half the total, 4.84 million mid band and 753,000 low band, with 2.059 million refarmed from either the mid or low band.

The mmWave cells will usually have smaller footprints to cater for higher signal degradation, so that more cells will needed for a given coverage area.



Apart from private enterprise networks driven by the automotive sector and industrial IoT in particular, new spectrum will also help meet demand for faster higher quality broadband and extended coverage in many developing countries and rural areas elsewhere through provision of fixed wireless access (FWA) services.



China will be a primary driver of 5G because of its sheer gravity, setting big numbers and driving manufacturing, but the USA, UK, South Korea and Japan will also be early to make 5G services widely available to consumers and enterprises.



India on the other hand will hold back and focus first on completing 4G roll out since 70% of the 1.05 billion active mobile users are still stuck on 2G,  before proceeding to 5G after a few years.



The latest RAN Research spectrum report and forecast was constructed from a combination of interviews with technology vendors and a survey of 57 leading operators spanning the three principal regions of North America, Europe and Asia Pacific.

 

 

Orange Romania’s first all-digital mobile brand hits six-month mark

It claims to have a 90% customer recommendation rate, three time the sales growth of non-digital mobile offer and triple the Net Promoter Score of a typical mobile operator.

Orange Romania developed the brand in a year with a team of only 15 people and launched last September, building it on the MATRIXX Digital Commerce Platform. The speed was because it wanted to be first in the market to address this segment.

Targeted segment

YOXO was developed by the operator as a way to rapidly growing segment of customers – young, cost-conscious digital natives who don’t want long-term contract commitments.

Anca Veluda, Head of Digital at Orange Romania, said, “We were looking to do much more than keep our status as the number one telco operator in a highly competitive market. We wanted to create the kind of service offering that drives loyalty and a sense of shared community with our customers”.

“The MATRIXX platform made it possible for us to build YOXO in a way that harnesses the power of innovation and agile experimentation, with a focus on delivering immediate value for our subscribers when and how they want it.”

All from the app

YOXO customers can manage every part of their mobile service from the app, including sign-up, order and SIM activation. Customers can change their subscriptions every month, manage payments and access customer support.
It can also evolve features, based on customers’ feedback.

You can read the full case study here and our exclusive interview with Emmanuel Chautard, CTO, Orange Romania here.

Telefónica Deutschland reaches 1,000 live 5G sites

The operator’s 5G is all in the 3.6GHz range, which its CEO says means enough capacity for everyone, even in big crowds.

Telefónica Deutschland, which operates under the O2 brand, announced it has activated 1,000 antennas 30 German cities. Most locations have three antennas and all operate at 3.6GHz.

Markus Haas, CEO, Telefónica Deutschland, said, “We want to supply more than 30% of the population in Germany with 5G by the end of the year”. The company also plans to speed up the rate of deployment, so that by the end of 2025, it will cover 99% of households.

At the moment, according to the German newspaper Stern, antennas are mostly in public places that have heavy traffic, such as central Berlin and at the clinic at the University of Düsseldorf.

Misleading figures?

It also points out that Telefónica Deutschland appears to be lagging its rivals in 5G roll out as Vodafone has around 8,500 5G antennas and Deutsche Telekom (DT) more than 50,000.

The report points out that care needs to be taken with these figures as most operate in relatively low frequency bands and these switch between 4G and 5G: DT has so activated 1,400 5G antennas in the 3.5 to 3.6GHz range and Vodafone about 1,000.

No compromise

This range is particularly suited to 5G and characterised by a relatively limited range but very fast transmission speeds and high capacity, so many people can be connected simultaneously without a noticeable drop in performance.

Haas noted, “When music concerts and other events take place again after the corona pandemic, thousands of visitors can take photos and videos thanks to 5G [and] they can be sent quickly during the event”.

He adds that while mobile is a “shared medium” and the more users a radio cell currently has, the lower the performance per user, “5G takes this ‘shared medium’ to a whole new level…There will be no more major compromises in crowds.”

Small cells’ architecture is changing to meet soaring connectivity demand

Jamie Hayes, Mobile Network Operators Director, BT Wholesale (pictured), says the future of small cells is disaggregated and virtualised.

Small cells have a key role to play in mobile’s future. Their abilities to improve speed and coverage in areas of high and low density, and to scale up as the demand for capacity fluctuates are well understood. They are also a cost-efficient way to extend the range of macro deployments. In short, they are an important boost to modern networks’ performance.

As 4G coverage expands and 5G deployments accelerate, small cell technology must evolve if it is to support the high bandwidth capacity that is needed.

Small cell solutions

Meeting projected demand for speed, reliability, and quality requires mobile operators to densify their network cells by up to a factor of 10 in some areas. Compared with the traditional methods of adding capacity at the macro layers, such as cell splitting, small cells provide a fast and flexible way They provide reliable mobile coverage where macro sites are logistically impractical, enabling uninterrupted connectivity of smart IoT solutions for sectors from agriculture to utilities.

The Small Cell Federation (SCF) predicted that the UK could have almost 8.5 million small cell deployments by the end of 2025, but it isn’t feasible for every mobile operator to install its own exclusive capacity which is what would be required by current RAN architecture. For example, large retailers are looking to single small cell solutions that can be used by all mobile operators (multi-tenanted units) to provide their customers with a strong signal while they shop.

A single shared unit also needs less electricity, takes up less space and involves less cost and upheaval than installing separate ones for each operator.

Economically inefficient

Today’s RAN most commonly has a Distributed-RAN (D-RAN) architecture, made up of a number of base stations located at cell sites like rooftops, to provide connectivity. The base stations comprise baseband units (BBUs), antennas, radio frequency (RF) equipment, and digital processors to transmit mobile traffic from a mobile device to a mobile operator’s core network.

In other words, the whole base station is located at the cell site. As a distributed network, processing power is shared between many different base stations, each of which can function independently of the others. But D-RAN architecture can be economically inefficient: renting space to accommodate a base station can be expensive, especially in a city, and the cost electricity to process rising amounts of data can be considerable.

Further, most base stations were designed to meet the maximum capacity requirements of a particular area, so many are underused much of the time and deliver poor return on investment.
As 5G and massive IoT deployments put pressure on mobile operators to deliver greater connectivity and coverage, they need for a cheaper, more efficient RAN architecture.

Disaggregation and virtualisation

Disaggregated small cell networks have a simpler deployment model, allow a more dynamic allocation of network capacity and be done in parallel with a move from D-RAN to  cloud- or centralised-RAN (C-RAN) architecture.

These small cells can host multiple network functions from a single site, greatly improving operational and economic efficiencies.

In a C-RAN architecture, the base station is split up: the radio units stay at the cell site, but the baseband units are aggregated into a centralised location. For example, the small cells’ baseband units are hosted in an exchange or central office, rather than on-site, and connected to radio units via high speed links such as a fibre.

Hence, for instance, a small cell baseband unit can manage up to 18 radio units, with radio three units deployed at six separate sites.

When software performs the function of a base station, this virtualisation means several logical base stations can co-exist on the same piece of equipment, and control functions can be centralised.

The combination of disaggregation and virtualisation means mobile operators can deploy 4G and 5G on the same structure with centralised infrastructure to manage spectrum, altering it on demand to meet fluctuating peaks and troughs in particular areas.

Virtualisation also means that volumes and costs can be shared between operators. As demand for higher data and speed continues to rise, installing ever more macro sites that deliver coverage for one operator is not feasible.

A neutral, shared small cell solution allows multiple operators to take advantage of the same network, without compromising reliability or quality.

Changing architecture

Poor connectivity can damage an operator’s reputation and bottom line, especially if customers aren’t receiving the coverage they expect. So far, mobile operators have used small cell technology to provide additional coverage for some time, but the higher capacity and wider coverage demands of 4G and 5G networks mean D-RAN architecture is no longer sufficient, and future small cells will be disaggregated and virtualised.

Masmovil eyes regional rival Euskaltel for takeover

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Reuters reports that the Spanish regional operator Euskaltel views the proposed €2 billion deal favourably.

Spain’s fourth largest operator, MasMovil, has bid €2 billion for the regional operator Euskaltel, whose stronghold is in northern Spain – specifically Galicia (capital Santiago de Compostela pictured), the Basque country and Asturias.

Euskaltel already had national ambitions, as we reported last year, and since last May has been leveraging the Virgin brand to move into the wider Spanish market.

Favourable response

Its major shareholders, Zegona, Kutxabank and Alba Europe, said it would cooperate with MasMovil’s takeover plans.

Zegona’s always articulate CEO, Eamonn O’Hare, told Reuters that eight other investors needed to agree to back the deal. “It’s going to be a slam dunk,” he reportedly said.

A merger with MasMovil should create stronger competition for Spain’s three main telecoms operators Telefonica, Vodafone and Orange, all of which are part of larger operator groups.

MasMovil is owned by private equity funds, Providence and Cinven, which said the proposed deal was friendly and would only proceed if accepted by holders of at least 75% plus one share of Euskaltel’s capital.

Timing matters

Zegona’s O’Hare said he expected the deal to close early in the fourth quarter, which aligned with the opinion of brokers Canaccord Genuity which stated that tender process should take about six months, and faces little regulatory risk.

Euskaltel had been working on selling a 49% stake in its broadband infrastructure arm to help raise cash. Former CFO and Board Director of Virgin Media in the UK, O’Hare told Reuters that if the MasMovil offer hadn’t come along Euskaltel that stake sale would probably have gone ahead.

IBM launches Open RAN trial with Telefonica in Argentina

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This project will allow the parties to test live commercial traffic – the aim is to roll out Open RAN to cover the entire city of Puerto Madryn (pictured).

The operator, known by its Movistar brand in Argentina, is one of the chief proponents of Open RAN. It is launching a proof of concept as the first step towards deploying one of the first, fully functional Open RAN networks, covering 81,000 inhabitants in the city of Puerto Madryn.

This project will allow the parties to run tests on live commercial traffic. 

Ecosystem partners

IBM led the systems integration, pre-integrating the solution and enabling its end-to-end deployment, working with Altiostar (an IBM Cloud for Telecommunications ecosystem partner in which Telefonica is an investor), Red Hat (which is owned by IBM), Quanta, Gigatera and Kontron. 

IBM clearly sees this as a big stake in the ground for its credibility in the Open RAN market: the company recently announced the launch of an Open RAN Center of Excellence in Spain to drive Open RAN adoption across Europe.

The centre is designed to advance the IBM’s Cloud for Telecommunications and its ecosystem partners Altiostar and Juniper.

Center of Excellence

The new centre will work with IBM’s Telco Network Cloud Labs in Nice (France) and Dallas (US): they will serve as a network for knowledge and resource sharing with the new centre. 

The centre itself will focus on live implementations that are similar to the Movistar trial in Argentina, but on a greater scale.

Open RAN technology is expected to be deployed at nearly two thirds (65%) of all cell sites by 2026, according to Rethink Research.

ALSTOM appoints BT to provide managed global network

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The two have signed a five-year deal to upgrade Alstom’s infrastructure to being cloud based.

Alstom, which provides systems, equipment and services for the mobility sector, has chosen BT to upgrade its global network with the latest cloud-optimised connectivity solutions.

The new network will connect Alstom’s operations at 350 locations in 60 countries, including manufacturing plants, offices, depots and data centres.

Extended to workers from home

BT is contracted to provide agile and secure access to company applications and services used by Alstom’s employees, 24,000 of whom have been working remotely during the pandemic.

Working with BT consultants to align solutions to business needs, Alstom chose a managed network service based on the VMware SD-WAN solution. It will be delivered by BT over its new digital service platform.

The idea is to accelerate Alstom’s move-to-cloud strategy, and improve the its visibility of network traffic so it can optimise end-user experience.

It includes a range of managed or co-managed options giving Alstom the flexibility to take control of individual aspects of change management.

Primary network

Nicolas Vurpillot, network and network security director, Alstom, said: “The move to internet as our primary network is part of our strategic plan: Alstom in Motion. It will provide secure, scalable and reliable access to applications while reducing cost and improving co-management.

“Following a thorough assessment of available SD-WAN technologies, BT demonstrated willingness and capability to innovate, enhance service levels and partner with Alstom to help us achieve our strategic goals.”

Joris van Oers, MD, resources, manufacturing and logistics & Europe, Global, BT, said: “We’ve been connecting Alstom’s global operations since 2015 and are delighted to have been chosen again.

“Alstom will benefit from the very latest VMware SD-WAN service combined with our trusted security, high reliability and a range of management options. It is a great example of how our new generation of managed connectivity services give customers choice and flexibility when planning for their digital future.”

eSIM expected to grow 180% by 2025, mostly driven by consumer use

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Juniper Research cites support of device makers like Apple and Google for the expected jump from 1.2 billion this year to 3.4 billion in 2025.

A new Juniper Research study, eSIMs: Sector Analysis, Emerging Opportunities & Market Forecasts 2021-2025, found that the number of eSIMs installed in connected devices will increase from 1.2 billion in 2021, to 3.4 billion in 2025; representing a growth of 180%.

eSIMs are embedded directly into devices to enable connectivity and can store multiple network operators’ profiles.

Consumer power



The research assessed eSIM adoption and demand in the consumer sector, industrial sector, and public sector, and predicts that the consumer sector will account for 94% of global eSIM installations by 2025.

It anticipates consumer device vendors, like Google and Apple, will adopt eSIM frameworks which will accelerate the growth of eSIMs in consumer devices ahead of the industrial and public sectors.

The research found that global eSIM deployments across all consumer verticals will increase by 170% over the next four years, with widespread adoption reliant on backing from network operators.

It urges device manufacturers to put pressure on operators to support eSIM frameworks and accelerate the market.

Fragmentation



It notes that fragmentation in the cellular IoT device market will require each vertical to adopt a combination of wireless technologies, hardware, and management tools.

In turn, it predicts that specialist vendors will emerge that provide eSIM form factors suited to industrial environments. 
The study identified three key industrial sectors: oil and gas; manufacturing and logistics.

It suggests that the development of rugged form factors will position vendors well to capitalise on the market, as eSIM installations in these verticals grow from 28 million units in 2021 to 116 million by 2025.



The research’s author Scarlett Woodford noted, “Ensuring convenience for the end user must remain the top priority for eSIM management platform providers. “To do so, they must provide a level of service comparable to that found with traditional SIM deployments.”

10Gbps FTTH, as seen on Italian TV

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TIM showed off its 10Gbps FTTH  via the AMICI TV studio – the first Italian TV station to rely on XGS-PON technology.

On Saturday, TIM activated the first ultrabroadband optical fibre FTTH connections with a speed of up to 10Gbps at the AMICI TV Studion in front of millions of viewers. It runs on XGS-PON (passive optical network) technology which, in symmetrical mode, allows speeds of up to 10Gbps for upload and download.

Nokia in the mix

TIM’s customers in Rome, Turin and Genoa TIM network can also test this “important technological innovation” themselves.
 
The XGS-PON technology was developed by TIM in collaboration with Nokia, multiplying the capacity of the current FTTH GPON (Gigabit passive optical networks)  by up to four times for download and eight times for upload.
 
TIM says it will expand its range of connectivity solutions using the tech.

Gaming to business

Quang Ngo Dinh, TIM’s Head of Consumer Market, commented this “confirms our commitment to anticipate innovative solutions to develop the optical fibre network in Italy.

“At TIM we are ready to offer the XGS-PON solution in some Italian cities to ensure our customers have ever faster connections that provide the best experience of using digital services: from online gaming to entertainment content and applications for businesses and industrial districts.”

ETNO urges government policies to accelerate a digital future for all

The European operators’ association says Europe can create 2.4 million new jobs by leveraging a €300 billion digital network investment.

Europe can create 2.4 million new jobs within the next four years through digital transformation, while boosting economic growth and accelerating green transformation.

According to a new report commissioned by ETNO, Connectivity and Beyond: How Telcos Can Accelerate a Digital Future For All, it will need €300 billion in telecoms investment, plus effort to stimulate digital demand and to provide people with digital skills.

The report was prepared by global management consulting firm BCG and is published as the European Union’s heads of state and government gather for the European Council to discuss, among others, the future of Europe’s industrial and digital policy.

5G alone

BCG analysis finds that 5G alone can generate an annual increase of €113 billion in GDP and 2.4 million new jobs in Europe by 2025. As the EU strives to reignite the economy with the Recovery Plan, building gigabit networks and innovative digital services can help increase productivity and generate smarter ways of working.

BCG finds that a widespread uptake of digital solutions could reduce carbon emissions by up to 15% – 30% emission cuts by smart cities and 30% through digital transformation in the transports sector.

To exploit the opportunity, Europe must ramp up its network investment to achieve ubiquitous gigabit speeds. BCG estimates €150 billion is still needed to achieve a full-5G scenario in Europe (although that does not mean universal coverage), while an additional €150 billion is required to finish upgrading fixed infrastructure to gigabit speeds.

Investing in demand

The report stresses that much effort to stimulate demand side as it found 83% of SMEs with in the EU do not use advanced cloud and 60% of nine year-olds are educated at schools that are not digitally equipped.

BCG estimates that upgrading the digital infrastructure of all European schools would require €14 billion a year, which corresponds to 1.8% of the Next Generation EU fund. Digitalising all European SMEs would require €26 billion a year, or 3.5% of the Next Generation EU fund.

Telecom solutions
BCG’s analysis finds that the European telecoms sector is accelerating its transformation in 7 main areas: network leadership, new collaboration models, B2B, data-driven customer approach, up-stack innovations, radical simplification, and new ways of working.

This is leading to innovation in cloud, edge-cloud, data-based services, e-ID as well as OpenRAN among others.

Collaboration within the industry and across European industrial sectors emerges as the defining feature of this new phase. European citizens and businesses can expect fresh opportunities for socio-economic growth empowered by digital services designed around European values.

European policies

ETNO believes the EU’s overarching digital strategies set the right ambition for digital leadership at the global level. However, these political goals must now permeate policy and regulatory action at both the European and national level, it says.

The report details a series of urgent policy actions, including: strongly increasing the attractiveness of investment in roll-out; allowing for more industry collaboration and scale in the sector; strongly stimulating demand and digital transformation across industrial sectors; prioritising leadership in European digital services; and ambitious investment in digital skills.

Lise Fuhr, ETNO Director General, said, “This report shows that Europe’s gigabit opportunity is extremely relevant to today’s top challenges, including recovery and the green transition. We call on European leaders to support the telecoms sector and help us deliver a stronger digital economy for all citizens”.

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