From Telecoms Europe Events: https://www.telecomseuropeevents.com/
- Simon Mason, Solutions Architect, SS8 Networks
Telco to Techco – October 2024 | Emergency caller mandates impact high-accuracy location capabilities for first responders and law enforcement
Telco to Techco – October 2024 | Open source opens up opportunities for operators
From Telecoms Europe Events: https://www.telecomseuropeevents.com/
- Arpit Joshipura, SVP & GM Networking, Edge and IOT, The Linux Foundation
Telco to Techco – October 2024 | PANEL: Open RAN is progressing
From Telecoms Europe Events: https://www.telecomseuropeevents.com/
- Larbi Belkhit, Analyst, ABI Research
- Abdel Bagegni, Technical Programme Manager, Telecom Infra Project
- Devang Solanky, Open RAN Product Manager, Vodafone
Telco to Techco – October 2024 | Becoming an AI-native telco
From Telecoms Europe Events: https://www.telecomseuropeevents.com/
- Jukka-Pekka Salmenkaita, VP AI and Special Projects, ELISA
Telco to Techco – October 2024 | AI and automation are changing the telecoms business
From Telecoms Europe Events: https://www.telecomseuropeevents.com/
- Philippe Ensarget, VP Software Engineering, Orange
Telco to Techco – October 2024 | PANEL: Network APIs are bringing new opportunities
From Telecoms Europe Events: https://www.telecomseuropeevents.com/
- Jesper Larsson, Partner, Kearney
- David del Val, Global Director Open Gateway, Telefónica
- Mark Cornall, Technical Director, GSMA
- Jose Pedro Nascimento, CTO, Altice Portugal
- Cedric Gonin, Telco API Business Strategy and Channel Management Director, Orange
VEON responds to shareholder criticism, restating commitment to value creation
In an open letter, the operator group pledges “to maintain an open dialogue with all our shareholders as we look to unlock Veon’s full potential”
VEON’s has published an open letter in a response to Shah Capital’s complaints about the telco group’s failure to deliver shareholder value over the last decade. The response welcomes the letter, thanking Shah Capital for its continued support and feedback.
It points out that VEON’s share price has more than doubled in the last two years but agrees with Shah Capital that there is room for further improvement, “as VEON positions itself as a leading opportunity for investors seeking growth in frontier markets”.
In its reponse to Shah Capital it implicitly refutes claims that it does not communicate well enough with shareholders saying its “engagement with investors, particularly across Europe and the US. remains strong”.
Looking to digital revenues
The response letter stressed that its digital operator strategy is evolving, to provide services across a range of verticals, adding that the operator group constantly reviews options “to crystallise the value of our business and assets we own”.
At its Q2 earning report in August, CEO Kaan Terzioğlu (pictured above) said, “With 12.1% growth in topline and 10.9% growth in EBITDA in US dollars, I am delighted to be back with a billion dollar quarter…I am also happy to report for the first time the direct digital revenues generated through our digital financial services, entertainment services, healthcare services, advertising services and Super apps. This quarter, our direct digital revenues exceeded 10% of our total revenues growing 77% year on year.
“Our digital services are not only driving more consumption, helping with retention, improving ARPU of our digital operators but they now also directly contribute to our topline growth through interest income, advertising revenues, subscription services, platform commissions, and pay-per-view revenues.”
Better governance
Regarding Shah Capital’s call for a better governance model, Veon said it refines its structure frequently, pointing to its plan to strategy to shift its HQ from Amsterdam to Dubai to be closer to its key markets. VEON also intends to consolidate trading on the Nasdaq and delist from Euronext Amsterdam.
“As always, VEON appreciates the constructive engagement from its shareholders. Our Board and Management will continue to maintain an open dialogue with all our shareholders as we look to unlock Veon’s full potential,” the company added.
As my first editor used to say, “Only results count”. So it will be interesting to see how VEON’s planned changes play out.
Proximus partners to protect venues from rogue drones
The telco will roll out a sensors to its telecom towers and gradually extend coverage
Proximus announced a strategic partnership with Senhive, an airspace technology company, and SkeyDrone which provides drone services and solutions. The three will offer a drone detection solution to address concerns about unauthorised drones compromising facilities with critical assets.
The use of drones is expected to grow rapidly in coming years, due to advances in affordable technology. It is expected that drone activities will pose a threat to all kinds of organisations and venues, including industrial plants, airports and ports, prisons, datacentres and sports stadia.
A drone detection solution would protect them and they people who use their facilities by enabling them to identify and mitigate potential risks within their airspace.
The solution will run on Proximus’ infrastructure and Proximus NXT will help commercialise the solution. Senhive’s drone detection sensors will be installed on eligible telecom towers and their coverage gradually extended to expand the drone detection network.
SkeyDrone is in charge of software and services, delivering a solution that offers a real-time overview of airspace traffic, visualising the position of drone and pilot. The solution includes intrusion detection alerts and visual analytics. It integrates with existing unmanned aircraft traffic management systems (UTMs) to distinguish authorised from unauthorised drones.
Odine supports Eureka’s 6G network automation initiative
Despite operators side-eyeing 6G investment, Europe continues to research the technology through several initiatives like Celtic-Next
Turkey’s network automation company Odine announced it is participating in the Celtic Next initiative, centring on the development of network automation technologies for 6G, using Open Radio Access Network (O-RAN) architecture and machine learning (ML) techniques. Celtic Next is a European research cluster under the Eureka network, focusing on driving innovation in telecommunication technologies, including the development of 6G. By supporting projects within Celtic Next, the European Commission aims to enhance Europe’s competitive position in global 6G development, aligning with its wider digital strategy and research priorities.
The project aims to create self-organising networks (SoN) that can autonomously detect and resolve network issues, optimise performance and manage multiple machine learning models. Odine is collaborating with prominent European tech companies, international universities, research institutes, and “Türkiye’s leading mobile operator” – which is most likely Turkcell.
Celtic Next is funded through public-private partnerships within the Eureka network. Funding comes from a combination of national and regional governments in the participating countries, as well as private industry contributions from companies and research organisations involved in the projects. Each participating country’s funding body, like TÜBİTAK in Türkiye, contributes to the funding of the projects within their own regions, with support sometimes also coming from European-level programs.
Founded in 1985, Eureka facilitates collaboration between companies, universities, and research institutions from its 47 member countries, as well as associated countries like Canada and South Korea. The network enables businesses and research institutions to access funding, share expertise, and collaborate on R&D projects. Each member country provides resources, and Eureka clusters, such as Celtic Next, focus on specific industries or technological areas.
The right direction
Less well known that some larger rivals in this space, Odine is a global technology company specialising in network transformation and cloud-native solutions. It specifically focuses on providing software-defined networking, network automation, and telecom infrastructure solutions. The company is known for its expertise in network automation, particularly using technologies like O-RAN, AI and ML.
“Our focus on artificial intelligence and machine learning as essential components of future network infrastructure will not only increase efficiency and flexibility but will accelerate the development of self-managing systems,” said Odine CEO Alper Tunga Burak. “These technologies are critical to shaping the future of 6G networks. We are proud to contribute to this project, which is set to redefine the technology landscape and further strengthen Odine’s global presence. Advancements like these are vital for understanding where the industry is headed and guiding it in the right direction.”
He expects the project to play a significant role in transforming the industry by enabling self-regulating networks through the use of O-RAN architecture and machine learning techniques. Odine will develop next-generation ML algorithms designed to enhance network performance, maximise efficiency and enable networks to dynamically configure and optimise themselves. This initiative will also allow for the simultaneous operation of multiple ML models, ensuring the effective management of conflicting decisions.
Other European 6G work
Europe has increased its 6G focus across several initiatives recently. The European Space Agency (ESA) has begun developing a satellite-based 6G testbed in low Earth orbit, aiming to integrate satellite and terrestrial 6G networks. This initiative, led by Open Cosmos with several European partners, aims to explore the role of satellites in 6G connectivity, supporting seamless global communication. The project falls under ESA’s Space for 5G/6G & Sustainable Connectivity programme. Deutsche Telekom is involved with this one.
In February 2024, two new EU-funded initiatives were announced. RISE-6G focuses on reconfigurable intelligent surfaces, which are vital for controlling and enhancing wireless signals in future networks, while NEW-6G investigates the convergence of microelectronics with telecom hardware and software. Both projects are coordinated by the French Alternative Energies and Atomic Energy Commission (CEA)
Meanwhile, building on the earlier Hexa-X program, Hexa-X-II is the flagship EU 6G project funded under Horizon Europe. It focuses on advancing the foundational technologies for 6G, including AI-driven connectivity and addressing sustainability challenges. This initiative involves major industry players like Nokia and Ericsson.
VEON shareholder slams decade of poor returns, demands change
Shah Capital, a long-term investor in the operator group with a 7% stake says it is “very disappointed” and outlines radical action to get to $160 share price in 2026
Shah Capital has issued an open letter to the VEON’s board of directors complaining that the company has underachieved for a decade and that radical change is needed. Last week VEON announced it would move its HQ from Amsterdam to Dubai to be closer to its key markets.
Himanshu H Shah, founder of Shah Capital, doesn’t hold back in telling the board where it’s going wrong. His contention is that share price has been 80% lower than it could and should have been over the last 10 years. Listed on Nasdaq, the current share price is $29.50 whereas Shah Capital reckons it could reach $160 per share by 2026 by taking its prescribed course of action.
The letter states, “Veon’s share price continues to languish at ~2.5X EV/EBITDA valuation even with a deleveraged pristine balance sheet, strong recent operating growth metrics and impressive operating outlook as was presented by management on Veon Investor Day in June ’24.”
It continued, “With an unlevered balance sheet and asset rich portfolio of around 30,000 towers and meaningful other assets that can be monetised, Veon should trade at [a] substantially higher valuation compared to its emerging market telecom peers like Airtel Africa, Millicom, and America Movil which are trading at [a] median valuation of about five times their earnings before interest, taxes, depreciation, and amortisation (EBITDA).”
In Shah Capital’s view, VEON does not attract enough coverage from analysts and the coverage is not sufficiently positive. Nor is it perceived as a target for fintech or cloud data centres by investors. It has failed to deliver capital returns to shareholders in the form of equity buybacks and/or dividends since 2021. The management is also seen as flawed: “Perceived lack of Veon HQ deep management bench when one analyzes its earnings transcripts and presentation”.
7 ways to release value
Shah Capital’s recommendations include implementing a $100 million share buy-back scheme without delay. It also urges VEON to list subsidiaries Jazz and/or JazzCash on the Karachi and Dubai stock exchanges and list Ukrainian operator Kyivstar on the Nasdaq to unlock around $3 billion and attract US private investors.
CEO, Kaan Terzioglu, VEON Group CEO said in a statement, “We have consistently maintained transparent communication with our investors and have diligently fulfilled our obligations. With this filing, VEON is now fully compliant with its listing requirements, and we look forward to taking the next steps in unlocking further value for our shareholders.”
The statement was issued on 21 October, when VEON received confirmation that it was compliant with the Nasdaq listing requirements following its 2023 20-F filing.
