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Telecoms Europe Summit 2024 | PANEL – Open infrastructure – disaggregated and open for business?

From Telecoms Europe Business and Technology Summit 2024 by Mobile Europe https://www.telecomseuropeevents.com/

Sponsored by Red Hat

With:

Moderator: Emma Buckland, Principal Analyst – Telco Cloud & Networks, STL Partners

Viraj Abhayawardhana, Director Network Strategy, Liberty Global

Nektaria Efthymiou, Network Platform & Security Research Director, BT

Idir Fodil, SVP Strategy, Transformation and Performance, Orange

Ignacio Gonzalez, Business Development Media/Telco EMEA, Red Hat

Telecoms Europe Summit 2024 | Why telcos with ambitions to be AI-native need a multi-modal approach

From Telecoms Europe Business and Technology Summit 2024 by Mobile Europe https://www.telecomseuropeevents.com/

With:

Ayesha Temuri, Enterprise Data Officer, Telenor

Telecoms Europe Summit 2024 | Offering digital services to meet market demand

From Telecoms Europe Business and Technology Summit 2024 by Mobile Europe https://www.telecomseuropeevents.com/

With:

Yogesh Malik, Group CTIO, Tele2

Telecoms Europe Summit 2024 | PANEL – Financing fibre and making a return on invested capital

From Telecoms Europe Business and Technology Summit 2024 by Mobile Europe https://www.telecomseuropeevents.com/

With:

Moderator: Chris Godsmark, Managing Director, Houlihan Lokey’s Global Technology Group

Clayton Nash, Strategy Director, CityFibre

Carlos Bouça, Director of Network Engineering and Operations, Altice Portugal

Telecoms Europe Summit 2024 | Tapping into the future of private 5G

From Telecoms Europe Business and Technology Summit 2024 by Mobile Europe https://www.telecomseuropeevents.com/

With:

Sandeep Raithatha, Head of Strategy, Innovation & 5G IoT, Virgin Media O2 Business

Telecoms Europe Summit 2024 | PANEL – Where are we with 5G Advanced?

From Telecoms Europe Business and Technology Summit 2024 by Mobile Europe https://www.telecomseuropeevents.com/

With:

Moderator: Andreas Olah, Senior Analyst – Digital Enterprise Services, Omdia

Yogesh Malik, Group CTIO, Tele2

Anania Mesfin, Cyber Security & Incident Response Specialist, Ethio Telecom

Ankush Saikia, Senior Manager, Network Strategy and Architecture, Three UK

Sandeep Raithatha, Head of Strategy, Innovation & 5G IoT, Virgin Media O2 Business

Telecoms Europe Summit 2024 | PANEL – Resilience and reliability are operators’ top priorities

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From Telecoms Europe Business and Technology Summit 2024 by Mobile Europe https://www.telecomseuropeevents.com/

With:

Moderator: Larbi Belkhit, Analyst,ABI Research

Ankush Saikia, Senior Manager, Network Strategy and Architecture, Three UK

Idir Fodil, SVP Strategy, Transformation and Performance, Orange

A snapshot of the market for network infrastructure in 2024

MTN Consulting looks at what is shaping the landscape and predicts things will be better in 2025

MTN Consulting has published an analysis of the demand for network infrastructure solutions – hardware, software, and services – in the telecoms as of mid-2024. It doesn’t make cheerful reading. MTN’s aim is to look at where spending might grow, the dynamics of vendors’ market share, and the strategies vendors should pursue in the current environment.

The vendors are trying to navigate their way through a landscape in turmoil. Last year vendors’ revenues for telco network infrastructure declined by 9.2% annually to $211.8 billion (€195.77 billion), marking the steepest drop at least since 2014.

MTN states this downturn reflects the completion of 5G buildouts in major markets like the US, China, and parts of Europe, after a period of intense investment. As telcos scale back spending amid economic slowdowns and high interest rates, they face capital constraints, intensifying the pressures on vendors

Geopolitical tensions are disrupting supply chains and market access, prompting telcos to reevaluate relationships with vendors and ensure alignment with national security.

Cloudy conditions

The continuing rise of web-scale cloud providers – Amazon Web Services, Google Cloud Platform and Azure – is transforming telecoms’ infrastructure through cloud migration, AI integration and advancing automation. The shifts pose both competitive threats and partnership opportunities for traditional vendors, according to MTN.

Cloud providers are also reshaping the vendors’ landscape by offering specialised cloud-based solutions for telecoms, although with modest market gains in the market so far. [Editor’s note: Microsoft has reduced its Azure for Operators efforts to chase the bigger opportunities in the AI market.]

Huawei toughs it out

Interestingly, despite the bans on Chinese equipment in many Western and other markets, the top three vendors for network infrastructure remain the same – see schematic above.

Huawei, Ericsson, and Nokia have an aggregate market share totalling just under 38%, unchanged since 2022. This apparent stability disguises what MTN calls “significant market shifts”, sparked by the downturn in telco spending. They include consolidation among vendors, such as Broadcom’s acquisition of VMware, HPE acquiring Juniper and Nokia buying Infinera.

There is also a wave of operational restructuring underway and widespread lay-offs across the industry.

Open RAN – slow progress

Another notable shift is the push for the adoption of Open RAN by established vendors and telcos who are increasingly embracing open architectures, supported by substantial government investments.

Developments such as AT&T’s partnership with Ericsson and Deutsche Telekom’s collaboration with Nokia reflect growing momentum towards open, interoperable networks, albeit with integration challenges and slower-than-expected take up among brownfield operators.

Better in 2025?

Looking ahead, the vendor market faces a mixed outlook for 2024, with projected telco capex declining and ongoing economic pressures likely to dampen revenue prospects in the first half.

Regional developments in North America and Europe offer the potential for pockets of growth, driven by the expansion of broadband and regulatory shifts favouring non-Chinese vendors.

Even so, these development might not offset the first-half setbacks, but “substantial gains are projected [by MTN] from 2025 onward, indicating that although 2024 is likely to decline, it won’t be as severe as the year-on-year drop of 9.2% drop in 2023.

Fibre lights up: Corning boosted by GenAI demand

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There is a huge need for fibre, driven by GenAI’s impact on data centres

Corning, the fibre optic cable maker, has raised guidance for its Q2 revenues and expects to add $3 billion a year sales during the next three years

Corning says its second-quarter revenues will hit $3.6 billion, up from its previous guidance of $3.4 billion, driven by Generative AI (GenAI). Its Q2 earnings report will be on 30 July.

Wendell Weeks, Corning’s CEO and Chair for close to two decades, commented in a statement,“We expect second-quarter core sales to exceed our previous guidance and mark a return to year-over-year growth. The outperformance was primarily driven by the strong adoption of our new optical connectivity products for generative AI.

“These results reinforce our confidence in ‘Springboard’ – Corning’s plan to add more than $3bn in annualised sales in the next three years as cyclical factors and secular trends combine.”

Michael O’Day, CTO for Corning Optical Communications explained the need for more fibre in a Fiber Broadband Association’s (FBA) Fiber for Breakfast webinar last November.

Day said, “Many people may not realise that fibre plays a pivotal role inside a data centre” adding that AI is “moving super-fast, and that causes strain on building an AI network inside a data centre.”

Data centres must build a second layer of computing with many more fibre links, according to O’Day, who also claims that large language models (LLMs) will need up to five times more optical connectivity compared with today’s hyperscale architectures

Corning’s share price rose 12% on Monday and continued upwards to $44.04, making its market cap close to $38billion.

Successful Ariane 6 launch signals Europe’s return  

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Europe’s much-delayed heavy-lift rocket, Ariane 6, made its inaugural flight from French Guiana but SpaceX’s Falcon 9 will take some catching

There were sighs of relief after the successful launch of Ariane 6 – the latest in Europe’s Ariane rocket series, taking over from Ariane 5 – but there is still plenty of work to do if Europe is going to win back business from SpaceX’s Falcon 9 series which is already scheduled for more than 140 launches this year. 

As recently as the end of last month, Europe’s weather organisation Eumetsat announced it was moving the launch of its Meteosat Third Generation-Sounder 1 (MTG-S1) geostationary weather satellite from Arianespace to SpaceX – despite originally been expected to launch on an Ariane 6 on the rocket’s third launch around March 2025. Such a no confidence vote was a stark reminder of just how much work Arienespace and the ESA will need to do to get European launches back on track. 

Ariane 6’s first commercial flight is not scheduled until the coming autumn and even then, Arianespace is talking about half a dozen launches next year and then 9-10 annually after that so the scale is a different magnitude to Falcon 9.  

One great step for Europe 

This inaugural flight, designated VA262, was a demonstration flight whose aim is to show the capabilities and prowess of Ariane 6 in escaping Earth’s gravity and operating in space. Ariane 6 features a modular and versatile design that can launch missions from low-Earth orbit and farther out into deep space. Nevertheless, this flight had several passengers on board.  

At 21:06 BST, 22:06 CEST on 9 July, one hour after liftoff, the first set of satellites on board Ariane 6 were released from the upper stage and placed into an orbit 600 km above Earth. Satellites and experiments from various space agencies, companies, research institutes, universities and young professionals were included on this inaugural flight. 

In addition to the rocket, the liftoff demonstrated the functioning of the launch pad and operations on the ground at Europe’s Spaceport. The new custom-built dedicated launch zone was built by France’s space agency CNES and allows for a faster turnover of Ariane launches. 

“A completely new rocket is not launched often, and success is far from guaranteed. I am privileged to have witnessed this historic moment when Europe’s new generation of the Ariane family lifted off – successfully – effectively reinstating European access to space,” said ESA’s director general Josef Aschbacher. “Heartfelt thanks go to the teams at ESA, CNES, ArianeGroup and Arianespace for their hard work to get to this point. I also want to sincerely thank our Member States for having enabled and supported the Ariane 6 programme along the way. Not always easy, but the endurance shown has paid off handsomely today.” 

“With this first successful launch by Ariane 6, Europe has finally recovered its capacity to access space. Beyond the great emotion I am feeling right now, my first thoughts are for all the teams in Kourou, Paris, Vernon, Les Mureaux, Toulouse, Bremen, Lampoldshausen, Liège, Barcelona, Colleferro, Zürich and everywhere else in Europe who made this success possible,” said CNES CEO Philippe Baptiste.  

“I would like to acknowledge the commitment of the employees of CNES, ESA, ArianeGroup, Arianespace and our subcontractors. The last few months have been intense, and I would like to thank them all. Europe can be proud of its space programme, Europe can be proud of its knowledge and expertise. Together, let’s prepare the future of launchers and space,” he added.  

Ariane 6 was built by prime contractor and design authority ArianeGroup. “With the successful first flight of Ariane 6, the European space industry has moved into a new era,” said Martin Sion, CEO of ArianeGroup. “The next flight models are already in production and the stages of the second model will be shipped to the Guiana Space Centre this autumn for the first commercial flight of Ariane 6.” 

Tech demos, controlled deorbit and capsule separation 

With the placement of satellites into orbit, Ariane 6 has demonstrated that it can successfully launch its payloads into space, but ground control has more in store for its inaugural flight. The engineers will further test Ariane 6’s upper stage to show again that Ariane 6 can restart its Vinci engine using the novel auxiliary propulsion unit. This restart capability will allow the launch vehicle to drop off multiple passengers into different orbits on future flights and deorbit itself through Earth’s atmosphere at the end of its mission, to ensure it does not become space debris. 

On this flight the Ariane 6 upper stage is set to release two reentry capsules as it enters Earth’s atmosphere for a clean disposal to burn up harmlessly, leaving no space debris in orbit. 

The next Ariane 6 is planned for launch this year on its first commercial flight under Arianespace as operator and launch service provider. “The success of this first flight marks the start of Ariane 6’s operational career, giving Europe an autonomous access to space,” added Stéphane Israël, CEO of Arianespace. “The new launcher’s order book is proof of the versatility of Ariane 6 and of its capacity to accomplish a wide range of missions into multiple orbits. It reflects the confidence that customers have in Ariane 6 for both their institutional and commercial missions. We are eager to begin operating our new launcher.” 

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