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DT looks to raise revenue by up to 6% to 2027

Annie Turner
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DT looks to raise revenue by up to 6% to 2027

At its Capital Markets Day on 10 October, CEO says DT Group now worth more than its European rivals put together and is looking to AI to accelerate growth

Tim Höttges, CEO of Deutsche Telekom Group (pictured above) kicked off the operator’s Capital Markets Day in Bonn explaining how a “refined strategy” will introduce new phase of growth. The group is looking to AI, a data-driven business model and global economies of scale to accelerate its “reliable growth model”. The aim to increase net revenue and service revenues by an average of 4% annually to 2027.

He said the group was “in a much better position than we have ever been in our history”. He was even chipper about DT’s stake in BT, where he thinks perhaps there will be light at the end of the tunnel.

Adjusted EBITDA AL* is set to grow by an average of 4 to 6% per year. Although, according to Höttges, growth will come from the businesses on both sides of the Atlantic, excluding T-Mobile US, DT Group expects service revenues to grow by an average of 2.5 to 3% annually, and adjusted EBITDA AL* by between 3 and 4%.

At the same time, adjusted earnings per share are expected to rise by an average of more than 11% per year, reaching around €2.50 in 2027. Free cash flow AL is expected to increase to around €21 billion by that time.

Buy-backs, bigger stake in T-Mobile US

CFO Ilke said in his presentation at the press conference that “surplus funds” would also be used to increase DT’s stake in T-Mobile US. Shareholder remuneration, including share buy-backs will total up to €6.4 billion: share buy-backs amounting to up to €2 billion are set to be carried out in 2025. Dividend for the 2024 financial year to rise to 90 cents per share.

Deutsche Telekom finally surpassed a 50% stake in T-Mobile US in April 2023, after years of increasing ownership in the American company. DT’s stake in T-Mobile US was diluted to 43% when it merged with Sprint in 2020. As Sprint’s owner, SoftBank, took 24% of the combined entity.

“We are initiating the next stage,” said Höttges. “In recent years, our strategy has made us the undisputed number one in Europe. We have achieved or even exceeded nearly all of our targets and are now worth more than all our peers on our domestic continent combined [see slide below from today’s press conference]. We will build on this position in the future, for example, by further intensifying the use of artificial intelligence.”

The value of DT’s brand has risen 84% since 2020. Brand Finance reckons Deutsche Telekom is the industry’s most valuable brand worldwide, and across all industries, the Magenta T symbol tops the table in Europe and ranks number nine globally.

By 2027, DT plans to generate a total of more than €15 billion, on top of the investments in the business and the dividend payments. This leeway will give the operator group the flexibility to either increase its stake in T-Mobile US, or to buy back additional shares as well as facilitate general strategic flexibility.

Investments of the Group, excluding the US and expenses for mobile spectrum in Europe are expected to account for around 21% of service revenues in 2027.

Growth is to be driven by improving the business model. DT wants to be “even more data-driven and automated than before and step up its use of AI – see slide below for how it expects to achieve it. This includes simplified customer support processes that are “better channelled” and accelerated through automated ID, and documentation and AI-based information requests.

In Germany, the number of complaints has already fallen by around two thirds since 2020. The plan is to reduce call volumes further by expanding the use of app-based self-service and AI-supported messenger services. “The Group plans to continue to rigorously pursue digitalization and its focus on software.”

The Group wants better global economies of scale. It has about 300 million customers worldwide and wants to leverage globally-available services and API-based IT platforms in the cloud with the help of global ICT solutions and partnerships.

Building out fibre

DT continues to invest “massively” in building out fibre broadband, having come to that party late. In Germany, it intends to add about 2.5 million new homes passed per year by 2027, taking the total number passed to about 17.5 million. noted that many investors are “running away from the German market…we are building more than 70% of the infrastructure now”. He added, “Germany is lagging behind in fibre but leads in terms of throughput”.

The operator expects the take-up rate to increase by almost a third, to more than 20%, up from 14% today. In 2027, the number of new FTTH customers is expected to reach around one million, up from an anticipated 450,000 this year.

Its other European opcos are expected to add around 1 million homes passed per year. In 2027, the total number of homes passed in those countries expected to stand at a total of around 13.5 million.

Regarding its mobile network, DT’s 5G coverage in Germany is expected to rise to around 99% by 2027. The plan is for around 90% of the sites to have download speeds of more than 1Gbps.

5G coverage in its other European national companies is set to rise from 78% currently to 95% in 2027. DT “wants to further expand its leading position as the world’s number one in terms of mobile network quality and transmission speed. It plans to grow its revenues by further increasing market shares and through a portfolio including fixed-network substitution, 5G campus solutions, and network slicing.”

The operator group intends to boost its Magenta Moments loyalty programme in Germany and other European countries, which had about 3.2 million active users as of the end of 2023. It expects this figure to grow by between 50 and 100% by 2027. The Group wants to tap into additional revenue potential of around €1.5 billion with additional products and services. They range from payment services for mobile phone insurance services and platforms for payment services to AI solutions for consumers. 

Doing the business

In global B2B business, that is, with business customers including T-Systems, DT plans to speed development of revenue and earnings. This is one of the group’s weakest areas historically, with average revenue growth of 1.9% between 2020 and 2024. Now it says growth in this area is expected to rise to 3%, with a commensurate increase in profitability.

Somewhat stating the obvious, DT says this will be achieved by increasing its share of contracts awarded by corporate customers, stronger growth in the public sector and cross-selling. The expansion of the portfolio in the areas of cloud, security, IoT, and AI. T-Systems is an integral component, contributing to differentiation from the competition for customers, DT says. 

Plenty of efficiency levers

Efficiency improvements at all levels will support earnings growth over the next few years. The relevant metric for this is indirect costs as a percentage of service revenue, for the Group excluding the US. DT wants to reduce this figure by 3 to 5% by 2027.

The main levers for this (see slide below) are automation, including the use of AI in customer service, automation in the operation of networks and data centres, improved efficiency in the FTTH rollout in Germany, implementation of a shared operating model in Europe and reduction of shared functions, and efficiency improvements through the use of AI. This particularly applies to expenses for real estate and its use.

Environmental, social, governance

The Group says its has “ambitious targets with regard to ESG activities. Carbon emissions (Scope 1-3) are set to fall by 55% by 2030 compared with 2020, and to reach net zero across the entire value chain by 2040. Deutsche Telekom claims to be “the first DAX 40 heavyweight with a science-based net-zero climate goal confirmed by the Science Based Targets initiative (SBTi). In its transition plan, the Group has stipulated specific measures for this.”

The measures include a circular market for terminal equipment and technology, through longer useful lives as well as reuse and the recycling of materials. The Group is to expand its commitment to digital inclusion such that, by the end of 2027, more than 80 million people worldwide will benefit from the measures.

 *“EBITDA corresponds to EBIT (profit/loss from operations) before depreciation, amortization and impairment losses. EBITDA AL is calculated by adjusting EBITDA for depreciation of the right-of-use assets and for interest expenses on recognized lease liabilities,” according to DT’s website

Portugal’s dstelecom partners Lacuna Space for satellite IoT services

Simon Dux
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Portugal’s dstelecom partners Lacuna Space for satellite IoT services

The fibreco and satco will jointly market and promote IoT services in Portugal

Portuguese fibreco dstelecom has partnered UK/Dutch satellite IoT provider Lacuna Space jointly market and promote IoT services in Portugal. As part of this initiative, dstelecom, member of the New Space Portugal project funded by RRF, will be responsible for delivering an IoT payload on three satellites. 

The IoT payload, supplied by Lacuna Space will ensure an effective commercial solution. On these three satellites, the gateway’s capacity will be shared by both dstelecom and Lacuna, benefiting both companies, by enhancing global IoT connectivity and reaching previously unreachable areas in Portugal.

The hype surrounding satellite to mobile/direct to cell, meant satellite IoT was always going to be overshadowed by its more glamorous technology cousin but for the satellite companies – typically using nano-satellites – that can stay funded, there are clear business niches to carve in the world’s more remote areas. 

This partnership marks the beginning of a strategic relationship, through which Lacuna Space and dstelecom intend to support the delivery of a range of IoT applications. From monitoring the Atlantic ocean to improving remote asset management, Lacuna Space and dstelecom are set to “make a significant”, if not narrowband, impact on Portugal’s technological landscape.

Reaching where fibre doesn’t

Since its establishment in 2008, dstelecom has seen rapid growth in subscribers as it extends fibre networks to address remote villages in Portugal, currently covering 900,000 homes in more than 145 municipalities. Despite this expansion, many devices and equipment are just out of reach of the economic deployment of fibre. 

The joint satellite network of both dstelecom and Lacuna will help bridge this gap, bringing essential connectivity to even the most remote regions, both in land and at sea. This collaboration not only addresses the immediate need for connectivity in Portugal’s isolated areas but “also paves the way for future innovations” according to the companies.

This is not dstelecom’s first foray into satellite technology. In 2024, dstelecom launched an IoT payload, fully developed in house, which is currently operating in the second ever launched Portuguese mission, the MH-1 satellite. However, at a commercial scale, the fibreco said it was critical to pick a partner with proven technology. 

Ricardo Salgado, dstelecom CEO said “At dstelecom, we built and managed the first Open Access FTTH Network in Portugal. We aspire to provide connectivity to people everywhere: by land, by air, by sea, and now, by space. In 2024, we launched an IoT payload, entirely developed in-house, currently operating in the second-ever Portuguese mission, the MH-1 satellite. It’s time to take the next step,” said dstelecom CEO Ricardo Salgado. 

“Partnering with Lacuna Space is the natural move for this evolution. Lacuna Space remains a crucial innovator with a proven successful track record in commercial operations. Their expertise will enable us to reach commercial operations quickly. We are very excited about this partnership,” he added. 

Speaking at The Things Conference in Amsterdam where the deal was signed, Lacuna Space CEO Rob Spurrett described how these collaborative missions for launching satellite gateways help extend “Lacuna Network” service. “The cost of capital investment is high in space missions, so it is critical to form partnerships to spread those costs, and to bring in local operators with an existing user base, so we can continue to keep subscriber costs on a par with terrestrial services,” he said. “It has taken a long time to bring these network partnerships to fruition, but we have signed several recently with more in the pipeline.”

Egyptian regulator allocates rest of 5G operating licences

Annie Turner
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Egyptian regulator allocates rest of 5G operating licences

Four operators will collectively pay $675 million for 15-year licences – incumbent Telecom Egypt received its licence in January

Egypt’s National Telecom Regulatory Authority (NTRA) has awarded 5G operating licences to e&, Orange and Vodafone after an opaque, long-winded process that began in 2019. Incumbent Telecom Egypt was granted its licence in January with little fanfare and no explanation of why it got a nine-month start on the rest.

The country’s Ministry of Communications and IT (MCIT) said the four operators are paying a total of $675 million for 15-year permits that covers 5G and extends the operating licences for all the previous generations of mobile networks.

Telecom Egypt paid $150 million in January, hence the other three have to pay more than $525 million between them, but how the total is split is unknown. The process was complicated by the fact that the allocation of spectrum was from refarming spectrum rather than awarding new frequencies, and each operator can choose how they use what they held with previous licences, and how much they held and in which bands.

Consumers might not be totally delighted though: last October, Ashraq Business reported that Egyptian telcos asked the NTRA for permission to increase prices as much as 30% as profit margins were squeezed by rising inflation. Now they need to claw back the cost of the licences and build out 5G too.

INWIT, Vantage Towers join EWIA

Annie Turner
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INWIT, Vantage Towers join EWIA

The European Wireless Infrastructure Association (EWIA) now has 11 towerco members operating across 20 European countries

Vantage Towers and INWIT have become members of the European Wireless Infrastructure Association (EWIA) which is headquartered in Brussels. EWIA now has 11 towerco members whose infrastructure spans 20 European countries: Austria, Czech Republic, Cyprus, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Malta, Netherlands, Poland, Portugal, Romania, Spain, United Kingdom, Switzerland and Sweden.

According to research published by Ey in August, the share of independent TowerCos in Europe has increased in recent years, from 13% in 2014 and 17% in 2018 to and 35% in 2021 and 39% in 2023. It is expected to continue to trend toward the global level of circa 54%.

Marco Patuano, Chairman of EWIA, said that attracting, “additional pan-European neutral-host infrastructure providers was seen as a crucial enabler to ensure that our sector speaks with a stronger and even more unified voice in our ongoing engagement in Brussels.

“In this context, we welcome INWIT and Vantage Towers as our newest members, who will contribute to EWIA ’s mission to tackle the hurdles to mobile infrastructure deployments and to foster an investor-friendly environment to help fulfilling Europe’s digital ambitions.”

Christian Hillabrant, CEO of Vantage Towers, said, “This move reflects the commitment of Vantage Towers AG to driving the future of digital connectivity across Europe. As part of a united TowerCo industry, we aim to collaborate with European policymakers in order to foster investment, promote the sharing and sustainability of infrastructure, and accelerate the deployment of 5G in particular in rural areas and for transport routes.”

Oscar Cicchetti, Chairman of INWIT, added, “As the leading tower company in Italy and one of the main players in the wireless infrastructure industry in Europe, we are pleased to contribute to EWIA in representing the tower sector in the European debate.

“We are committed to promoting the development of the telecommunications ecosystem, starting with shared digital infrastructures like ours, which are essential to enabling digital transformation in Italy and in Europe and are therefore becoming increasingly strategic.”

Broadcom launches ‘first merchant silicon 50G PON’ to distribute AI workloads

Annie Turner
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Broadcom launches ‘first merchant silicon 50G PON’ to distribute AI workloads

Alphabet soup aside, the speed boost is impressive, but arguably the most important development is embedding processing for AI workloads at the edge

Broadcom is launching what it describes as the industry’s first merchant silicon 50G passive optical network (PON) optical line terminal-optical network unit (OLT-ONU) devices. Somewhat confusingly, it says the products are generally available, but adds “Broadcom is currently sampling the BCM68660 and BCM55050 devices to its early access customers and partners”.

The BCM68660 is a standalone system on a chip (SoC) and interoperates with the BCM55050 50G PON ONU, and other 50G ONUs that comply with the International Telecommunication Union Telecommunication Standardization Sector’s (ITU-T) 50G PON standard.

AI at the edge

Their purpose of the two products is to provide operators an end-to-end, 50G PON ecosystem of solutions for 50G fibre broadband and, through an embedded neural processing unit (NPU) to accelerate AI and ML at the edge. Running AI/ML algorithms at the edge reduces latency and cloud storage costs.

In addition, AI/ML at the edge keeps consumers’ data private by retaining it on-premise rather than risking interception in the network, Broadcom states.

Also, edge AI/ML algorithms can detect attempted intrusion by hackers and identify and resolve Wi-Fi and IoT issues in the home, reducing support costs for operators. The algorithms can enable anomaly detection and network self-healing, facilitate predictive power management, detect and classify patterns in the network, and support network optimisation.

Broadcom observes that the migration from GPON to XGS-PON is in full swing, but fibre broadband networks must keep pace with growing bandwidth needs. At the same time, the networks need to support “emerging AI applications” and better network performance and power efficiency.

Broadcom’s goal is to “future-proof” already deployed GPON and XGS-PON networks by adding new, standards-based tech to support “flexible options and seamless migration to higher speeds to support high bandwidth applications”.

Better customer experience

The company says its 50G PON solution is 40x faster and has lower latency than current gigabit solutions, improving consumers’ broadband, enabling, for instance, smoother video calls and live streaming, and faster responsiveness for gaming.

The company says the greater bandwidth will enable new applications including 5G small cells to support autonomous driving and network slicing.

With a high level of integration in low power 7nm technology, the BCM68660 and BCM55050 also use less power than current solutions.

Jaimie Lenderman, Principal Analyst and Research Manager at Omdia, comments, “As fibre PON technology evolves to meet growing demands, it’s becoming more versatile, unlocking applications and use cases for AI/ML beyond traditional residential use.

“50G PON with AI/ML capabilities is…advancing access networks into a new era – one that goes beyond speed, enabling next-generation connections across a broad range of subscribers and industries.”

Soracom backs GSMA’s eSIM standard for its connected car strategy

Simon Dux
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Soracom backs GSMA’s eSIM standard for its connected car strategy

The global IoT player, majority owned by KDDI, wants to help unify the fragmented connected car sector through standards for activating and managing SIM profiles

Soracom has unveiled its global strategy for the connected car industry and claims it is on a mission to help address the numerous connectivity and cloud management challenges the sector faces. The company is well positioned to do so given it is a connectivity solution that offers a global IoT platform with full MVNO capability.

The connected car ecosystem has encountered roadblocks raised by the numerous backend processes and relationships automakers, dealerships, connectivity providers, and consumers must navigate to bring connected cars up to speed. These challenges include the process of activating and managing SIM profiles on end devices; supporting flexibility in establishing and managing connectivity at the local level; ensuring end-to-end security; and efficiently integrating with connected car clouds to support the various features and infotainment content waiting to be unlocked.

Soracom reckons it’s heard these issues before. These obstacles mirror those faced by the global IoT ecosystem, where Soracom’s cloud-native cellular core supports global multicarrier coverage, private fibre peering, VPNs and integration with various cloud services without the need for SDKs.

“The connected car journey has been like a long family road trip, with the kids continually asking, ‘Are we there yet?’ The good news is we are almost there – but for connected car services to succeed, the process of enabling them needs to be simple, secure, and scalable – for automakers, for dealerships, for connectivity providers, and most of all, for consumers,” said Soracom co-founder and CTO Kenta Yasukawa. 

Enter GSMA

A key aim of Soracom’s new Connected Car strategy is to support the GSMA SGP.32 eSIM remote provisioning and management standard. This IoT eSIM standard, which is expected to be completed this year and available in products starting in 2025, allows automakers, dealerships, and consumers more flexibility in activating connected car connectivity.

Before SGP.32, even if each car was equipped with an eSIM and a modem, the automotive manufacturer had to work with a different connectivity provider in each country where its vehicles were sold, and ask their primary carrier to integrate with their remote subscription management server to facilitate localisation of eSIMs, requiring time-consuming negotiations and a complex backend integration process with each carrier.

“This is hard enough to do with one carrier in one country, let alone with every carrier for every vehicle model and every model year in every country,” said Yasukawa. “All the negotiations and backend integration required can take months to set up and years to manage.”

In contrast, Soracom offers a software-based, globally distributed infrastructure through Amazon Web Services that provides a direct link from the connected car to the cloud through its cloud-native cellular core and an on-demand virtual private gateway. As an MVNO, Soracom is a major provider of both SIM cards and eSIMs, the embedded SIM chips that will likely be deployed in the next generation connected cars.

Integrating an eSIM with SGP32 embedded Universal Integrated Circuit Card (eUICC), into a vehicle modem makes it work as originally expected without complex backend carrier integration. While keeping secure, private connection to their backend systems, automakers gain the flexibility to push eUICC profiles for infotainment and in-car wifi down to vehicles with their preferred carrier already in place. Alternatively, they can allow dealerships or connected car users to pull the carrier profile of their choice from the manufacturer’s cloud. In either case, the automotive manufacturer is relieved of a costly and laborious process.

“As a vehicle manufacturer or buyer, you should drive your own car’s connectivity, not be driven by a connectivity provider,” said Yasukawa. “With flexible SGP.32 eSIM provisioning and management, you are no longer captive to negotiating pre-market integrations with carriers that are difficult to change or update.”

Soracom can issue an eUICC profile compatible with SGP.22 and SGP.32 via API, and is ready to support SGP.32-compatible eSIMs. In addition, the company can provide the SGP.32-compatible eSIM and network-side enablers so that automakers can download their own carrier profiles or set up a portal to allow dealerships or car buyers to do so. If eSIMs are obtained elsewhere, Soracom said it can still provide global network connectivity, including cellular and satellite leveraging their 3GPP NTN capability to vehicles.

Now for the industry

Soracom said it is working aggressively to get involved in the automotive sector’s new product cycles at an early stage. The company has conducted proof-of-concept projects with automotive manufacturers, and is a member of the Automotive Edge Computing Consortium (AECC), the global industry body helping to define the converged computing and network architecture to support a new generation of connected car capabilities.

“Enabling connected cars is a team sport,” said Yasukawa. “Working together, we can build a simple, secure, and scalable cloud highway for connected cars.”

The global IoT provider’s decision to back the GSMA standard carries weight as well given its connectivity platform offers access to 417 carriers across 182 countries through virtualised cellular cores deployed in multiple AWS regions. This eases the backend complexity that automakers otherwise encounter as they negotiate with different carriers and dealerships in different countries as they set up connected car services from their clouds.

Collaborators will win the NTN business space race

Stewart Marsh
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Collaborators will win the NTN business space race

The non-terrestrial network economy is extraordinary commercial opportunity for those who prepare now, just as the competion really starts to heat up

Non-terrestrial networks (NTNs) refer to just about any network not on the ground. They are incredibly complex – a sophisticated mixture of ingenious deep tech innovation and complicated platform hardware which harnesses spaceborne and airborne elements to extend connectivity to the hardest-to-reach places on Earth.

The theme of this article though is business growth. The nascent NTN economy represents extraordinary commercial opportunity for those who get themselves in the vanguard of progress now – just as the competitive NTN landscape really starts to heat up.

Three key pieces of advice

I’m sharing three key bits of NTN advice for players in the global telecoms and satellite world who are eager to unlock vast new revenues. One, collaborate as widely and effectively as you can – no-one can hope to navigate the tricky non-terrestrial journey on their own. Two, get yourself at the debating table, or as close as possible to it, to help define standards that will shape the industry. Three, understand how tough it will be to overcome a host of crucial challenges – not least vexed issues like interoperability and system integration.

My NTN perspective has been broadened and stimulated by working with Cambridge Consultants colleagues on our whitepaper: Assembling rebel alliances to compete in the new NTN economy. Time and time again we reflected on the benefits of collaboration.

The NTN ecosystem is partly characterised by an amalgam of industries, technologies, standards and regulations that are converging from conventional ground-based cellular networks and satellite systems. No single business can hope to take a solo run at making such a transformative leap into the future from such legacy activities.

Instead, powerful partnerships will form between satellite operators and vendors, network owners, broadband providers, IoT experts and many more to enable shared infrastructure, R&D and the delivery of new levels of service. Strategic partnerships across the value chain will be instrumental in propelling progress while minimising risk.

Power of ecosytems

As the industry becomes saturated with competitors – and the skies get ever busier – savvy players will be allying themselves with partners to create a network of satellite operators, high altitude platform (HAP) providers, terrestrial network operators and technology vendors. This is the way to drive the successful deployment and operation of NTNs that can address the diverse needs of the market – at pace.  

We’re already seeing such relationships. An example is the partnership between Amazon Kuiper and Verizon. They are working together to extend 4G/LTE and 5G services to rural areas across the US through a network of Low Earth Orbit (LEO) satellites, profiting from the integration of Kuiper’s satellite capabilities with Verizon’s terrestrial network.

This partnership also allowed Verizon to support Amazon in navigating the complex regulatory environment of existing telecoms, meaning all organisations could bring their expertise and resources together to achieve their goals faster.  

Then there’s OneWeb’s partnership with Hughes Network Systems, leveraging Hughes’ expertise in satellite ground network technology alongside OneWeb’s satellite constellation to improve connectivity, reach and service quality of their low-latency broadband services.

This not only expanded OneWeb’s market reach by capitalising on Hughes’ customer base and distribution channels, but also hugely accelerated technological innovation thanks to a joint effort around R&D.

Finding the right partners

How to find the right partner? There’s lots to consider, but a good start is to seek alliances with those who share an ultimate vision but can advise on areas where a business has gaps. This alignment and balance of expertise drives progress towards a shared goal, fortified and improved by mutual strengths that can address new use cases and segments of the market.  

My key takeaway is this: in a vast, competitive and fast-moving ecosystem, you’re stronger working as a team. I believe strategic, mutually beneficial partnerships will become perhaps the most valuable assets as the market evolves rapidly.

Evolving standards

Now let’s turn to evolving standards – and the crucial importance of understanding, influencing and innovating on this future-defining stage. Conversations are happening right now, offering the chance to guide the direction of travel for the industry in space.

Here, the convergence of lower launch costs, significant advances in deep tech and the dramatic increase of satellites in LEO have sparked a transformation. Major players like SpaceX, with its Starlink constellation, have led the charge. The market is on track to reach $124.6 billion in annual satellite services revenue by the decade’s end.

In fact, from the end of 2022 to mid-2024 alone the total number of satellites launched and in orbit has risen from 6,905 to 9,900, an increase of 43% in 18 months. This increasingly competitive environment makes the race to market success ever more urgent – particularly as new regulations and policies are put into place to manage the sudden rise in satellite activity.

Standards such as 3GPP, which include guidelines for NTNs alongside spectrum governance and air and space regulations, represent both the start and finish line of any project. You can’t begin without making sure you’re aware of the approved framework, and your success will be limited unless your service complies.

That said, these standards can’t be a reason to halt innovation. Coordinating with international regulatory bodies, and indeed other partners who may have expertise or resources that you don’t, is the only way to create harmonised systems that can facilitate the seamless integration of NTNs worldwide and promote global interoperability. But the way you apply them remains down to you.

Standards are not a blueprint

After all, these standards are not a blueprint for implementation. It remains your choice how you implement them, leaving you free to turn them into an opportunity for differentiation and make them work for you. If harnessed creatively and collaboratively, these standards can unlock the full potential of NTNs and drive the next wave of connectivity innovation ahead of the competition.

This standardisation marks a change for the satellite industry where previously proprietary standards and technology choices have dominated. In this standards-led ecosystem, new ways will need to be found to differentiate and innovate within a standard framework. And in this new, crowded marketplace, the traditional go-it-alone strategy is far less viable than it once was.

Tough ride

My final point is to be prepared for a tough ride. In mobile comms, the challenges of physical implementation – from radio waves and antennas to propagation – are hard enough on the ground. Adding the space dimension introduces a whole new complexity where these two worlds collide.

But along with the risk comes huge potential reward. Down the line, there’s no doubt that the NTN ecosystem offers an opportunity for true market dominance. There simply isn’t enough space in space for everyone, so the big winners will be the platform owners who can create a satellite model not just for their constellation, but for everyone else’s. Yes, the sky is the limit.

About the author

Stewart Marsh (pictured above) is Head of Aerospace at Cambridge Consultants, part of Capgemini Invent and known as the deep tech powerhouse of Capgemini. With more than 20 years’ experience in aerospace and telecoms, Stewart helps companies achieve technology breakthroughs that unlock transformative business value, including a world-first Push-to-Talk satellite service and a beyond visual line-of-sight UAV solution using low-power satellite technology.

Impact of Red Sea cable cuts were ‘severely underestimated’

Annie Turner
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0
Impact of Red Sea cable cuts were ‘severely underestimated’

RETN claims up to 70% of Europe-Asia data flow was disrupted, and the damage highlights the weak cable ecosystem which urgently needs greater resilience

RETN, which runs a private, global managed network, says that the impact of the February 2024 cable cuts in the Red Sea was severely underestimated.

The company says that the impact was claimed at the time to have affected 25% of the Europe-Asia data traffic flow. Using its own network diagnostics and feedback from customers – large ISPs in South East Asia providing services to consumers – RETN reckons the disruption to traffic was closer to 70%.

It has published insights into the incident in a report Building the networks of tomorrow: Engineering reliability for long-term success.

RETN’s CEO, Tony O’Sullivan, is calling for the industry to take action: “We are at a pivotal moment in network connectivity, and to be fully transparent, the industry is not equipped to meet current demands. With geopolitical events, natural disasters, cable cuts, design flaws, cybersecurity attacks and a shortage of new cables, we’re really not too far away from entire countries becoming digitally inaccessible when the one or two cables that connect them go down.

“Having the global infrastructure in place to overcome these challenges requires industry-wide investment, but that means a wide-reaching movement of prioritising customers over short-term gains. Undoubtedly, there are some key players with the power that can take actionable steps immediately to make a difference.”

The report outlines how RETN responded to network vulnerabilities, doubling capacity across China and Central Asia after subsea cuts in that region. This included prioritising terrestrial routes and ensuring multiple subsea cable systems are in place, avoiding funnelling traffic through fewer higher-capacity cables.

Note that as terrestrial cables are located on land, they are more easily accessible for maintenance and repairs, whereas subsea cable lie on the seabed, making it more difficult and expensive to repair when damaged.

Also, terrestrial cables are less exposed to the harsh environmental conditions found underwater, such as saltwater corrosion, underwater landslides and fishing. Subsea cables face risks from marine life, ships’ anchors and natural events like earthquakes and tsunamis.

The whitepaper covers:

• Geopolitical risks and infrastructure vulnerability – how geopolitical volatility, including incidents like cable cuts in the Red Sea and Strait of Malacca, underscores the need for diversified network routes to avoid single points of failure in critical regions such as Egypt and South-East Asia. 

• Supply chain challenges – disruptions to global supply chain, including the shortage of semiconductors and high-voltage cables, have delayed new infrastructure deployment and increased network vulnerabilities. Further, specialist equipment and vessels required for cable installation are in high demand, which is also delaying projects and repairs. 

• Collaborative competition and regulatory change – regulators and Big Tech have a crucial role in shaping future connectivity, especially as Europe has regulatory inconsistencies and major players have such dominance in the market which could threaten future innovation and competition in the telecoms market.

• Strategic importance of diversified routes – RETN claims to exemplify the success of a diversified network strategy with projects like TRANSKZ, a terrestrial cable connecting Europe to Asia. It was designed to provide low-latency, protected services, which allowed RETN to maintain performance during disruptions and serves as a model for network resilience moving forward.

It seems inevitable that as war in the Middle East expands and intensifies, cables will be targeted to cause maximum disruption.

Vodafone, Google agree 10-year, multi-billion dollar deal to exploit AI

Annie Turner
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Vodafone, Google agree 10-year, multi-billion dollar deal to exploit AI

The agreement covers consumer and enterprise, cloud, cybersecurity, TV and devices across Europe and Africa, plus up to 45 more markets via the operator’s partners

Vodafone Group and Google have signed a 10-year strategic partnership, worth “multi-billions” of dollars. It is a far-reaching agreement with many facets.

Regarding devices, they will offer the operators’ customers units powered by GenAI that use Google’s Gemini models in 15 countries across Africa and Europe.

Also, Vodafone is to “expand access” to Google’s AI-powered Pixel devices on its 5G network in Europe and promote the Android ecosystem. The two will work together to improve and expand the range of products and services available in stores and online, supported by “a refreshed customer experience rooted in the benefits of AI”.

They are apparently working towards enabling the operator to offer YouTube subscription-based products and Google One subscription plans, such as storage and AI Premium plans to consumers, plus a range of Pixel and other Android devices. Specifically, Vodafone intends to offer Google One AI Premium subscription plans, including Gemini Advanced, in select territories by 2025.

Not as previously seen on TV

They also plan to make Vodafone TV “even more personalised and engaging”, with better content search and recommendations and rewards using Google Cloud’s GenAI across its set top boxes.

This is with a view to rolling out advertising using Google Ad Manager in the future, “to deliver a better ads experience” to monetise content. Some might describe that as an oxymoron. Vodafone TV is powered by Android TV. The teams are also exploring “a more deeply-integrated YouTube experience across Vodafone TV devices”.

Selling futures

Vodafone’s relationship with Google Cloud so far has been to use it as a private data repository or lake, and compute function. In future it will use Google Cloud’s Vertex AI “enterprise-ready” platform.

The operator will use the platform “to build, deploy, and scale machine learning models and AI applications powered by Google’s Gemini models. This will help increase the speed and ease with which Vodafone’s operating companies in multiple countries can innovate and launch new products.”

It will provide security incident and event management, as well as the latest software-based protection tools. Vodafone will also use Google Cloud’s Security Operations platform when developing certain products and services to further ensure that they are secure by design to help keep customers safe online.

The operator intends to develop a new cloud-native security service for its business customers using Google Cloud’s Security Operations platform.

For its part, Google is to use Vodafone’s fixed and mobile connectivity services “to improve workforce productivity”.

Unprecedented scale

The companies seek to reassure, promising to “to jointly promote the use of universal industry standards in areas such as online safety, responsible AI development, network performance, and interoperability to drive economies of scale in industrial efficiency, boost innovation, and improve public services at scale”.

Margherita Della Valle, Vodafone Group’s CEO (pictured above), said, “Together, Vodafone and Google will put new AI-powered content and devices into the hands of millions of more consumers. Using these services, our customers can discover new ways to learn, create and communicate, as well as consume TV, on a scale we haven’t seen before.”

“Our expanded partnership with Vodafone will help bring our most advanced AI products and services, including our Gemini models, to more people across Europe and Africa,” said Sundar Pichai, CEO of Google and Alphabet (pictured above right). “I’m excited to see how Vodafone’s consumers, small businesses and governments, will use generative AI and Google Cloud to transform the way they work and access information.”

ZainTECH partners Datanuum for data retention platform

Simon Dux
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ZainTECH partners Datanuum for data retention platform

Zain Group’s digital solutions provider ZainTECH has ramped up its service offerings with a string of deals and partnerships

ZainTECH has partnered Datanuum, a customer data enrichment, engagement and retention platform for retailers and healthcare businesses. The deal is the latest for the fast-expanding ICT services arm which now services over 1,400 enterprise and government customers across the Middle East. The company’s services span cloud computing, cybersecurity, big data analytics, artificial intelligence, drones and robotics, modern infrastructure, digital solutions, and other emerging technologies. Therefore a customer data and retention partner makes a lot of sense. 

Although ZainTECH launched in 2021, this year has seen it accelerating its service portfolio across the Middle East. It began the year with over 700 focused information and communications technology (ICT) professionals serving a growing customer base in eight MENA countries and across several industries, including telco, government, oil and gas, retail and financial services. January also marked ZainTECH’s entrance into Bahrain. 

In April, ZainTECH acquired Dubai-based AWS consulting partner Citrus Consulting to bolster its regional cloud operations in Gulf Cooperation Council countries, particularly Saudi Arabia. In the same month the company partnered HYAS Infosec which is closely aligned with Microsoft as a member of the Microsoft Intelligent Security Association and is backed by M12, Microsoft’s venture capital fund, as well as S3 Ventures, and other venture capital firms. ZainTECH also recently acquired BIOS Middle East and STS Arabia in Saudi Arabia.

Customer happiness

ZainTECH’s partnership with Datanuum is focused on growing need for data privacy and regulatory compliance in the region. The company reckons this should appeal to businesses looking for robust solutions to handle data securely while optimising customer relationships, engagement and marketing spend.    

“ZainTECH’s mission is to deliver state-of-the-art digital solutions to our clients and exceed expectations while doing so. By combining Datanuum’s solutions with our services, we can offer businesses with compliant value-added technologies that support differentiation and growth,” said ZainTECH CEO Andrew Hanna (above, left). 

“Partnering with ZainTECH represents a significant step forward in our mission to empower B2C businesses in the MENA region and beyond with the best data enrichment and engagement capabilities,” said Datanuum CEO Salam Saadeh (above, right). “ZainTECH’s robust infrastructure and regional market presence will enable us to reach more businesses and help them transform their customer interactions. The collaboration will drive innovation and growth for both our clients.”

The partnership will initially focus on retail and healthcare establishments offering several features, including: data privacy compliance; customer engagement and retention tools; digital advertising ROI for lead acquisition marketing initiatives; and scalable cloud consumption models. 

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