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Category: Telecom

Retail News Asia is committed to providing both local and global retailers with the latest Telecom & Telco news throughout the Asian market. This on a daily base.

  • Nokia will reveal its plans for 5G phones

    Nokia will reveal its plans for 5G phones

    A little more than a week ago, Nokia first teased that it will be launching its next smartphone on the 5th of December. Of course, no details were given — whether it would be a flagship or not is left to speculation. Luckily, we have a new leak that lets us speculate at will!

    Chief Product Officer Juho Sarvikas has tweeted out that he will be getting up on stage at the upcoming Qualcomm Snapdragon Tech Summit — the event where Qualcomm will talk about its future chips. According to Mr. Sarvikas, we will also get to learn about Nokia’s plans for 5G phones. The exact date when this would happen is Tuesday, December 3rd.

    So, Nokia is talking about its 5G plans on the 3rd and launching a new phone almost immediately, on the 5th of December. Could the latter actually be Nokia’s first 5G-equipped flagship?

    We’d wager chances are thin. Earlier rumors suggest that Nokia is, indeed, planning to release a value-priced 5G top-tier phone, but that’ll happen at MWC 2020. Heads up, though — that’s actually happening in late February, so it won’t be a long wait. The Qualcomm conference on the 3rd of December might at least reveal if this is really happening.

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  • Axiata’s Q3 EBITDA jumps 29% on 3.5% revenue growth

    Axiata’s Q3 EBITDA jumps 29% on 3.5% revenue growth

    Axiata Group posted revenue of MYR 6.2 billion for the third quarter of 2019 (3Q19), which represents an increase of 3.5 percent year-on-year. EBITDA jumped 29 percent to MYR 2.8 billion, boosted by revenue growth as well as the group’s cost reduction initiatives which resulted in MYR 816 million in savings. Profit after tax jumped 33.5 percent to MYR 247.6 million for the quarter as a result of better topline, the company said. However, profit after tax and minority interest (PATAMI) fell 9.4 percent to MYR 119.7 million due to the absence of M1’s contribution following its disposal, as well as higher taxes in Bangladesh.

    Amid a highly competitive market in Malaysia, Celcom’s free cash flow rose 15.3 percent to MYR 674 million year-to-date, supported by EBITDA growth of 3.9 percent. PATAMI rose 7.9 percent to MYR 562 million. Celcom’s combined postpaid and prepaid revenue rose 0.6 percent, while mobile service revenue dropped 4.1 percent impacted by the decline in wholesale revenue. Blended ARPU improved by MYR 1 compared to the preceding quarter to MYR 52 in the third quarter of 2019. Celcom’s 4G population coverage rose to 93 percent, and its 4G LTE-A coverage reached 81 percent compared to 90 percent and 78 percent, respectively, in September 2018.

    Parent company Axiata also reported that its Indonesian unit XL’s turnaround in the period was led by its data-focused strategy continuing to deliver results as market share rose 0.6 percentage points to 18.3 percent, returning to profit with PATAMI at IDR 498 billion. Revenue grew 10.6 percent year-to-date driven by strong data growth of 30.4 percent. XL’s free cash flow surged 50.9 percent to IDR 1.8 trillion, on the back of cost efficiencies fueling 19.4 percent jump in EBITDA. XL says it captured 88 percent of 55.5 million total subscribers from 53.9 million in the third quarter of 2018. In support of its data strategy, XL’s 4G service is now available in 410 cities across Indonesia.

    Sri Lanka unit Dialog saw its revenue expand 8.1 percent year-to-date due to continued growth momentum across its TV (+16.6%), fixed (+8.7%) and mobile (+0.4%) businesses. Free cash flow grew 39.5 percent to SLR 19.2 billion buoyed by higher EBITDA and calibrated network rollout. Its PATAMI rose by 12.5 percent to SLR 8.3 billion YTD.

    Philippines subsidiary Smart delivered double-digit growth across all metrics with revenue, EBITDA and PATAMI up by 11.4 percent, 14.5 percent, and 14.3 percent, respectively, and FCF by over 200 percent.

    Despite new Bangladesh taxes, Robi returned to profit with PATAMI at BDT 1.6 billion. Revenue reaches BDT 19 billion in the three months ended 30 September 2019, as ARPU rose to BDT 125.

    With international long-distance revenue dropping 10.5 percent year-to-date, Ncell’s core mobile revenue declined 3.5 percent as a result of intense competition by internet service providers and Business Support System migration. Although PATAMI slipped 3.6 percent, PATAMI margin remained stable at 31 percent. Free cash flow fell 42.8 percent due to calibrated network rollout.

    In this year’s third quarter, edotco posted double-digit growth across all financial metrics. Revenue grew by 19 percent year-to-date, with positive contributions across its major footprints. The tower company recorded adjusted EBITDA growth of 26.7 percent, with 3.2 percentage points improvement in (adjusted) EBITDA margin driven by enhanced billing against lower maintenance costs in 2019. The improvement in EBITDA led to a 4-fold increase in free cash flow year-to-date, as well as growth in PATAMI of 10.4 percent year-to-date.

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  • Huawei powers AI technology in Singapore with opening of ground-breaking AI lab

    Huawei powers AI technology in Singapore with opening of ground-breaking AI lab

    “In response to the Singapore government’s call for industry transformation, Huawei is extending its 5G, Cloud and AI capabilities to local government agencies, SMEs, and Institutes of Higher Learning, to help accelerate Singapore’s 5G application and nation-wide intelligent transformation,” said Nicholas Ma, Chief Executive of Huawei International.

    Globally acknowledged to be the next big leap in mobile and wireless communications, 5G technology is widely touted to enable the development of new business models and advanced applications, fostering business innovation and spurring economic growth. Communities, businesses, and industries are expected to benefit from the transformative impact that 5G enables.

    Singapore has earmarked S$40 million to build an open, inclusive 5G ecosystem, where the funds will be used to support 5G tech trials for enterprise use, create new open testbeds and for R&D in areas like cybersecurity for the next-generation mobile network, across six strategic clusters.

    Huawei is launching its AI lab on the back of Singapore’s National AI Strategy announced on 13 November, which maps out how Singapore will develop and use AI to transform the economy and improve people’s lives.

    Through this lab, Huawei aims to nurture a flourishing local AI ecosystem with its 5G, Cloud and Intelligent Computing capabilities, enabling Singapore’s industry players, with a focus on local SMEs, to boost Singapore’s AI capabilities towards its smart future, and the digital economy. Huawei is also launching its talent, innovation, and Singapore-China bridging programs through this lab.

    In line with the three programs, the lab includes trainings and workshops opportunities for hands-on practice, with testing and integration facilities, and serves as an open and advanced platform to industry players for ecosystem development and industry collaboration.

    “At Huawei, we believe that AI and its solutions should be accessible to everyone, and that the convergence of AI, Cloud, and 5G, lays the foundation of the technology ecosystem for the digital economy of the future,” said Neo Teck Guan, Chief Marketing Officer of Huawei Cloud Asia Pacific Region.

    The lab launch program includes artificial intelligence case studies by Huawei key customers DIGI and Ulearning, as well as the signing of five memoranda of understandings (MoU), between Huawei and several local institutions and companies across various industries – Nanyang Polytechnic; MI Robotic, Navinfo Datatech, OTSAW and Neolix Technologies; Shanghai Zhenhua Heavy Industries Company (ZPMC) and Shanghai Enfon Robotics Co; and local Augmented Reality and Virtual Reality (ARVR) companies, Hiverlab and Hellohold – to solidify Huawei’s commitment in supporting 5G deployment and enablement towards industry transformation in Singapore.

    The program also paired with a 5G technology panel discussion joined by a few of Huawei’s partners – MI Robotic and the National University of Singapore (NUS), and PSA Singapore and Capitaland – to discuss 5G capabilities and solutions and how they will change industries and businesses, followed by an immersive technology workshop using the lab’s facilities.

    This launch marks another step towards Singapore’s Smart Nation initiative and its potential of becoming a 5G hub for the region and the world.

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  • Inmarsat, Bourbon partnership leads the way towards maritime digitisation

    Inmarsat, Bourbon partnership leads the way towards maritime digitisation

    The deal represents a breakthrough offshore contract for Fleet Xpress, which is already installed on some 7,000 vessels – mainly seagoing merchant ships.

     “This contract is substantial in its own right and underlines that Inmarsat’s Fleet Xpress solution offers the same compelling business case on vessel efficiency and crew welfare for the energy sector as it does in the merchant shipping arena,” says Eric Griffin, VP Offshore Energy, Inmarsat Maritime. “Commercial shipping is using Fleet Xpress as its pathway to maritime digitalization; now, the value of joining that journey is being acknowledged by one of the leading marine offshore Service Providers in the world.”

    Well-known for high-performance vessels and operational excellence of its services, Bourbon’s response to prolonged lower oil prices has emerged as the action plan ‘#BOURBONINMOTION’. The plan includes the Smart Shipping Programme, structured around a new vessel operational model, onshore support and a remote support center, which seeks to leverage digital and connectivity tools to reduce fleet operating costs. Set for completion by 2021, the program envisages deployment on 133 ‘smart’ vessels.

    According to Bourbon Corporation Chief Executive Officer Gaël Bodénès, “The time has come for operational intelligence: connected vessels, use of predictive maintenance, shore-based control centers, rationalization of tasks, etc. Automation of onboard systems is already a reality for our seafarers and we must all innovate at speed to invent our business model and our professions of tomorrow.”

    Eric Griffin of Inmarsat also stresses that flexibility had been an essential ingredient in securing the Bourbon deal. “The service provider could raise or lower bandwidth usage as necessary, or even suspend it on a planned basis without penalty,” he says.

    “An important aspect of Fleet Xpress is that third-party charterers could run their own Fleet Xpress services via a dedicated ‘pipe’ without interrupting the primary bandwidth being provided to an OSV. Customers chartering OSVs can, therefore, manage their own ‘smart’ vessel performance with full flexibility, using existing terminals and hardware onboard.”

    All vessels covered in the agreement will feature advanced 3-axis stabilized antennas from Cobham, specifically developed for and approved by Inmarsat for the Global Xpress satellite network.

    Among the first of Bourbon’s fleet to migrate to Fleet Xpress will be a group of high-end subsea vessels whose data consumption and management needs are ready for IoT-based solutions. These vessels also feature dual satellite terminals with high-powered amplifiers for additional redundancy. The Bourbon vessels will take advantage of bandwidth, stability and reliability, in the first instance to step up the use of video conferencing. Real-time video feeds are also expected to feature in ROV operations, with digitalization ultimately expected to touch every aspect of vessel management.

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  • ZTE, China Telecom and China Unicom join forces to consolidate 5G network verification

    ZTE, China Telecom and China Unicom join forces to consolidate 5G network verification

    The verification, based on the real 5G commercial network environment, covers the basic functions of network selection and anchor carrier triggering, network management functions of rights management and northbound interface in the DT environment, as well as multi-dimensional deep network sharing capability verification, such as multi-vendor, multi-operator mobility.

    The co-build co-share mode is capable of providing the broadband multi-operator 5G services on the same 5G base station, and reasonably allocating spectrum resources based on user requirements and service requirements. It fully demonstrates the system’s stability and outstanding performance, as well as its complete capacity for large-scale commercial use.

    In addition, compared with the original construction strategy that each operator builds its own 5G networks, 5G co-build co-share sites across operators will effectively save investment in 5G networks. By promoting the sharing of infrastructure between operators, the co-build co-share mode can help operators build 5G networks with lower costs and more effective methods.

    On September 9, 2019, China Telecom and China Unicom signed the 5G network co-build co-share framework cooperation agreement. As a strategic partner of China Telecom and China Unicom, ZTE fully supports its network construction and service operation. ZTE has innovatively proposed a flexible ultra-broadband spectrum application solution to support the co-build co-share mode, which helps reduce infrastructure construction costs, thereby further realizing the economic and social value of 5G.

    In the future, ZTE will continue to partner with China Telecom and China Unicom to explore the applications of new 5G technologies in commercial networks, improve network quality, build more high-quality 4/5G networks, in a bid to provide users with better services.

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  • Nokia partners with Spark to bring 5G technology to New Zealand

    Nokia partners with Spark to bring 5G technology to New Zealand

    As one of the radio access network (RAN) equipment suppliers for Spark’s 5G upgrade, Nokia will deploy its AirScale RAN solution at more than 200 sites, allowing Spark to target both consumers and enterprises with new services and offers. Nokia will also deploy other products and services from across its end-to-end portfolio including digital design and deployment services.

    Spark New Zealand and Nokia have a long-standing relationship, which crosses multiple domains, including IP, optical and wireless. This new commercial 5G partnership marks the next chapter of the relationship between Spark and Nokia, providing New Zealanders with the technology that enables them to benefit from the fast-evolving digital world economy and applications.

    The agreement follows the launch earlier this year of New Zealand’s first 5G trial customer service. The trial, which took place in Alexandra, South Island, used the latest Nokia radio equipment to offer select business and consumer customers the opportunity to experience high-speed wireless broadband delivered by 5G. Nokia is currently working with Spark to deploy 5G capability to an additional 5 sites before the Christmas period.

    This Spark agreement demonstrates Nokia’s solid 5G momentum, which now reaches 50 commercial 5G contracts globally, including most early adopters. Nokia is currently powering 16 live networks globally.

    Rajesh Singh, General Manager of Value Management at Spark New Zealand, said, “We are delighted to be continuing our partnership with Nokia in building our 5G network across New Zealand. The local teams have collaborated extensively on a 5G solution that delivers on the outcomes we want to drive in 5G, not just in the RAN, but also in the end-to-end network.”

    Tommi Uitto, President of Mobile Networks at Nokia, said, “I am thrilled to see Nokia 5G equipment chosen to power 5G initially in Spark’s heartland areas. We are committed to keeping New Zealanders at the cutting edge of technology and are confident they will benefit from Nokia’s global reach, expertise and agility.

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  • US gives green light to ‘several’ firms to sell to Huawei

    US gives green light to ‘several’ firms to sell to Huawei

    A Commerce Department spokesman said the agency had granted “narrow licenses to authorize limited and specific activities which do not pose a significant risk to the national security or foreign policy interests of the United States.”

    The administration earlier this week said it had extended for another 90 days the full implementation of the sanctions as part of an effort to make a transition easier for Huawei’s US partners. Commerce Secretary Wilbur Ross said any exemptions from the ban would be allowed only for older wireless systems and not for 5G networks, which have raised a range of security concerns in Washington.

    President Donald Trump in May effectively barred Huawei from American communications networks after Washington found the company had violated US sanctions on Iran and attempted to block a subsequent investigation.

    The latest 90-day extension “will allow carriers to continue to service customers in some of the most remote areas of the United States who would otherwise be left in the dark,” Ross said in a statement. “The department will continue to rigorously monitor sensitive technology exports to ensure that our innovations are not harnessed by those who would threaten our national security.”

    Huawei said Monday the decision did nothing to alter the company’s view that Washington has treated it unfairly and called on the Trump administration to remove Huawei from a foreign technology blacklist.

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  • Softbank, Line merger foretells the birth of a new tech powerhouse

    Softbank, Line merger foretells the birth of a new tech powerhouse

    The alliance between the two Japanese companies is estimated to be worth $30 billion and is expected to be concluded by October next year. The merger’s combined revenue could see it totaling $11 billion, easily surpassing its domestic competitor Rakuten.

    Tech analysts have lauded the merger, stating that this agreement would give Z Holdings and Line the opportunity to extend their reach towards a larger consumer base and increased negotiating power with its advertisers. Softbank and Naver, which owns Line, will each control 50% of the share in Z holdings.

    “We were driven by a sense of crisis about global competition and the pace of change in AI,” said Takeshi Idezawa, co-Chief Executive at Line. “The timing arrived for us to move on to the next phase [with this merger].”

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  • Telenor, Carousell merger will elevate the marketplace to the next level

    Telenor, Carousell merger will elevate the marketplace to the next level

    701Search owns leading general classifieds sites Mudah in Malaysia, Chotot in Vietnam and OneKyat in Myanmar. Johan Rostoft, Head of Online Classifieds at Telenor Group, said “We have built a profitable and high-growth marketplace business serving millions of users every single day. This transaction presents an attractive opportunity for us to take the next step in our marketplace journey, and it also simplifies Telenor’s portfolio. We believe that Carousell is the best partner for our online classifieds business in Southeast Asia.”

    “We are thrilled to partner with Telenor Group to cement our classifieds leadership across eight markets in Southeast Asia, Hong Kong and Taiwan,” shared Quek Siu Rui, Co-founder and CEO of Carousell, and continued, “With Telenor Group’s extensive experience in each local market, coupled with Carousell’s relentless focus to use technology to make selling and buying easy and frictionless, we are confident that together we will create an even more vibrant marketplace for the community across Malaysia, Myanmar and Vietnam. In the next few months, we look forward to working with our new teammates to learn about the dynamics of these local markets, create opportunities that are mutually beneficial for our community of users, and inspire even more people to start selling and buying.”

    Carousell is one of the most prominent start-ups in Southeast Asia, with dominant positions in Singapore and Hong Kong. The majority of its employees are based in Singapore. Following the merger, 701Search’s Singapore-based regional team will be fully integrated into Carousell. Mudah, Chotot and OneKyat will retain their individual brands and platforms, continuing operations in Malaysia, Vietnam and Myanmar respectively. The businesses will report into Carousell’s Group CEO Quek Siu Rui.

    The deal does not require regulatory approval and is closed immediately.

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  • Viettel, VinSmart get approval for factories in Hanoi

    Viettel, VinSmart get approval for factories in Hanoi

    The government has approved the construction of two new factories in Hanoi by state telecom giant Viettel and private smartphone producer VinSmart.

    Viettel will build a 9.1-hectare plant at the Hoa Lac High-Tech Park on the city’s outskirts to test and manufacture high-tech equipment and a 13.2-hectare research center for defense products, electronic and telecom equipment, network infrastructure, and 5G and Internet of Things (IoT) technologies.

    Viettel will also coordinate with the park’s management board to trial applications for smart cities related to issues like environmental management, urban lighting and smart parking.

    VinSmart, the electronics arm of Vietnam’s biggest private conglomerate, Vingroup, will build a 4.8-ha smart electronics plant which is likely to have a capacity of 125 million devices a year in its first phase.

    Their completion dates are not known.

    Viettel and VinSmart’s plants are two of four new projects worth VND7.46 trillion ($320.42 million) that have been approved at the park, according to the Ministry of Science and Technology.

    The others are by two private companies to produce drugs and radiation-resistant plastics.

    Military-run Viettel in January became the first company in the country to receive permission to trial 5G services followed by MobiFone. It plans to launch in 2020, installed the first 5G station in Hanoi early this year and made the first 5G phone call in May.

    VinSmart was established by Vingroup in June, and produced its first smartphones within just six months. It has produced a total of eight models so far.

  • Qualcomm’s anti-competitive business practices get support from the Trump administration

    Qualcomm’s anti-competitive business practices get support from the Trump administration

    Back in May, Judge Lucy Koh (of Apple v. Samsung fame) made a ruling that still might change the way Qualcomm sells its chips to phone manufacturers. The judge ruled in favor of the Federal Trade Commission and against the chipmaker after a 10-day non-jury trial was held at the beginning of the year. The FTC argued that Qualcomm’s “no license, no chips” policy is anti-competitive.
    Other Qualcomm policies attacked in court included the way royalty payments are calculated based on the entire price of a phone instead of the chip being used. And Qualcomm was also cited for not licensing its standards-essential patents (SEP). These are patents that must be licensed by rivals to guarantee that their products meet technical standards; as a result, they are supposed to be licensed on a fair, reasonable and non-discriminatory fashion (FRAND). In its defense, Qualcomm says that the argument of royalties is an issue of contract law that should not be heard in a forum designed for antitrust cases. And it also says that there is nothing wrong with getting compensated for the money it spends on R&D.
    In her decision, Koh said that Qualcomm needs to renegotiate its current contracts with phone manufacturers. In her written decision, Judge Koh said, “Qualcomm’s licensing practices have strangled competition in the CDMA and the premium LTE modem chip markets for years, and harmed rivals, OEMs, and end consumers in the process.” As you might expect, Qualcomm has appealed the decision and even managed to get the Ninth U.S. Circuit Court of Appeals to issue a stay. This prevents Qualcomm from having to follow Koh’s orders until all of its legal options have been exhausted. The firm did have a compelling reason to request a stay; it would be a waste of time and energy to renegotiate all of its contracts only to win on appeal and reverse all of the changes made.
    And speaking of the appeal, the FTC is actually on the opposite side of the Trump administration. Before Judge Koh released her decision, Trump officials asked her to limit any penalties that she was planning to impose on the chipmaker. And now that the case is being heard in appeals court, the administration is concerned that a Qualcomm loss will negatively impact America’s global leadership in technology and national security. And the Justice Department, under the leadership of U.S. Attorney General William Barr, has contradicted the FTC by stating that there is nothing anti-competitive about Qualcomm’s business practices. That is unusual because the FTC and the DOJ both handle antitrust cases. The Justice Department is joined by the Defense Department and Energy Department which told the appeals court that a ruling against Qualcomm could affect the country’s military and its energy and nuclear infrastructure.
    But perhaps even more important to the Trump administration is the possibility that should Qualcomm lose on appeal, it will negatively impact the rollout of 5G in the states. The next generation of wireless connectivity will initially deliver download data speeds 10 times faster than 4G LTE and will lead to the creation of new businesses and industries. The nations that harness 5G first will have a big advantage in the global economy. Qualcomm’s Snapdragon X50 and X55 modem chips allow smartphones to connect to 5G networks. The former is compatible with the super zippy ultra-high mmWave spectrum while the latter works with both mmWave and sub-6GHz  airwaves.
    But as far as the FTC is concerned, Qualcomm and the Justice Department have not shown how Judge Koh’s ruling “threatens national security in any way — or how those considerations could justify allowing Qualcomm to continue to violate” U.S. antitrust law. The 9th circuit appeals court, located in San Francisco, could start hearing arguments in February and issue a ruling sometime in 2020. For Qualcomm, there is plenty at stake.
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  • Huawei’s position looks promising with potential licenses underway for US companies

    Huawei’s position looks promising with potential licenses underway for US companies

    Trump has placed Huawei on the Commerce Department’s “entity list” for national security reasons. Huawei has repeatedly stated that the US claims are not based on any proven evidence. Entities on the list are prohibited from purchasing American software and components without being granted a U.S. government license. Trump has promised in June to provide some facilities to companies that deal with Huawei.

    Ross’s latest statements come shortly after Huawei announced its business results for the third quarter of 2019. During the first three quarters of this year, Huawei global revenues increased by 24.4% year-on-year, underlining that its business growth and technology development path was unaffected by the US ban.

    The company is committed to providing state-of-the-art innovations in new fields such as artificial intelligence and cloud computing, which will have a major impact in advancing the future development of many sectors and industries. This will also contribute the building of digital economies, smarter cities, and improving the efficiency of organizations in the future.

    By the end of Q3 2019, more than 700 cities, 228 Fortune Global 500 companies, and 58 Fortune Global 100 companies had selected Huawei as their partner for digital transformation.

  • Softbank, Line merger foretells the birth of a new tech powerhouse

    Softbank, Line merger foretells the birth of a new tech powerhouse

    The alliance between the two Japanese companies is estimated to be worth $30 billion and is expected to be concluded by October next year. The merger’s combined revenue could see it totalling $11 billion, easily surpassing its domestic competitor Rakuten.

    Tech analysts have lauded the merger, stating that this agreement would give Z Holdings and Line the opportunity to extend their reach towards a larger consumer base and increased negotiating power with its advertisers. Softbank and Naver, which owns Line, will each control 50% of the share in Z holdings.

    “We were driven by a sense of crisis about global competition and the pace of change in AI,” said Takeshi Idezawa, co-Chief Executive at Line. “The timing arrived for us to move on to the next phase [with this merger].”

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  • Nokia, Hitachi union will support local enterprises through 5G and private LTE solutions

    Nokia, Hitachi union will support local enterprises through 5G and private LTE solutions

    As part of the collaboration, the Nokia Digital Automation Cloud platform with its secure, reliable and low-latency connectivity will be used for applications including video analytics, AI, machine learning and IoT, as well as drones, group communication, and AR/VR. It will also enable autonomous transport vehicles, such as trucks, trains, forklifts and straddle carriers, to increase productivity at factories, utilities, airports and ports.

    The Japanese government is releasing 5G spectrum designated for individual companies and local governments (known in Japan as local 5G) at the end of 2019. This will enable enterprises, regional authorities and other organizations in Japan to deploy the next-generation of industrial-strength wireless connectivity based on LTE and 5G technologies to create local private, reliable networks.

    Nokia and Hitachi Kokusai Electric will collaborate to provide an eco-system of solutions to support the deployment of new digital automation services. Hitachi Kokusai Electric will share its expertise as a leader in driving the adoption of private LTE networks for industry use and disaster prevention in Japan. Nokia will lend its private LTE/4.9G and 5G wireless connectivity solutions, which have established a global marketplace footprint across energy, transportation, public sector, manufacturing and logistics.

    Kaichiro Sakuma, Representative Director, President and Chief Executive Officer of Hitachi Kokusai Electric, commented, “Industrial grade private wireless networks will be very important for our industry customers, helping them to become more efficient, automating dangerous operations, and improving worker safety. Our collaboration with Nokia is helping to speed the delivery of these innovative capabilities to the Japanese market.”

    John Harrington, Head of Nokia Japan, said, “Partnerships such as this help us to better serve the increasing needs of local 5G and digitalization technology in Japan. Collaborating with partners with in-depth knowledge and expertise across industry segments is critical to the widespread adoption of digital automation and private wireless solutions in industrial settings. Thanks to our comprehensive end-to-end-portfolio, we are ideally placed to support Hitachi Kokusai Electric and its customers to benefit from secure, highly reliable, ultra-broadband wireless networking.”

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  • China’s 3 mobile carriers kickstart commercial 5G rollout to the public

    China’s 3 mobile carriers kickstart commercial 5G rollout to the public

    Recently, China Mobile released the results of centralized procurement of Phase I NFV network equipment in 2019. This broad range of procurement involves 31 provincial companies in eight regions of China, which undoubtedly indicates that the full commercial deployment of 5G led by China Mobile has begun.

    NFV network is the only way leading to 5G era

    As we know, the 5G core network defined by 3GPP is a comprehensive cloud-based network architecture in order to meet the deployment requirements of edge diversified services in the 5G usage scenario of uRLLC (Ultra-reliable low latency communication), eMBB (enhanced mobile broadband), and network slicing. 4G will coexist with 5G in foreseeable future. The smooth evolution of 4G core network to 5G requires moving 4G EPC to the cloud, which call for a new technology: Network Function Virtualization (NFV).

    NFV is an important enabling technology in 5G core network era, which can decouple the network functions of traditional vertically integrated dedicated NEs into software and deploy them on COTS servers and switching devices, so that services can be rapidly deployed and launched. Besides, with NFV, 5G networks become more flexible, so as to better support access to different vertical business and meet differentiated service quality requirements of users in different industries.

    At present, SDN/NFV-based network cloudification and network reconstruction have become the common idea of the industry. With the issuance of 5G commercial licenses in various countries, NFV has indeed ushered in large-scale commercial deployment worldwide. China’s three mobile carriers have successively released their network reconstruction plans focusing on SDN/NFV, which include NovoNet 2020 in China Mobile, CTNet 2025 in China Telecom and CUBE-Net 2.0 in China Unicom. In February 2019, Smart Communications, Inc., the Philippines’ leading wireless provider, officially announced the successful commercial use of the world’s first NFV/SDN collaboration all-cloud core network. The US Media reported that the commercial deployment of NFV by AT&T International, Inc., an US mobile carrier, is also entering the turning point.

    The arrival of 5G will undoubtedly accelerate the network virtualization process, and NFV is the only way leading to that Era.

    5G brings huge market opportunities to NFV

    According to the disclosed information, this procurement covers PS domain NEs (vMME, vSAE GW, vPCRF, and vDNS) and IMS domain NEs (vCSCF, vVoLTE AS, vSBC, and vENUM/DNS) from 31 provincial companies in eight regions of China, which almost involves all NEs in the core network. It not only means that China Mobile NFV network project will officially enter the stage of large-scale construction, but also be regarded as the beginning of the full deployment of China Mobile’s 5GC, which will certainly further accelerate the maturity and commercialization of the domestic NFV industry chain.

    At the “China SDN/NFV/AI Conference 2019,” Wei Leping, Executive Deputy Director of Communication Technologies Commission of MIIT, said, “Now the industrial process of NFV in our country is relatively slow. The three mobile carriers should use NFV without hesitation, especially by taking advantage of the opportunity of 5G.” According to the NFV industry report released by Global Market Insights, the NFV market will exceed $70 billion by 2024. About 79% professionals in telecom industry view NFV as a key strategic focus for the next five years’ development.

    NFV becomes the “New Promising Technology”, virtualization services providers embrace bright future

    As we know, all cloud-based telecom networks must be realized the decoupling of hardware and software, which poses challenges and higher requirements for traditional telecom equipment manufacturers. According to the centralized procurement results of China Mobile, traditional equipment manufacturers such as Huawei, Ericsson, and ZTE still occupy the favorable position, providing China Mobile with virtualized NEs, virtualization layers, distributed storage, MANO, and integration services. Take ZTE for example, it is reported that ZTE will construct Virtualized Network Elements (VNF) for 12 provinces, including regional control plane NEs and provincial user plane NEs (GW-U, SBC-U). The telecom cloud resource pool that bears the NFV network is built with servers provided by Inspur and ZTE. Therefore, domestic telecom equipment manufacturers already have the capability to build large-scale NFV networks, and their NFV solutions and products have also been widely used in both global operators’ and government/enterprises’ networks. In this tender, ZTE demonstrated its comprehensive strength in providing end-to-end NFV solutions and a full range of NFV products.

    China is racing ahead in 5G with the largest 5G market. According to a report, total spending on 5G in China will account for about one-fourth in the world. This procurement from China Mobile alone can provide services for hundred millions of users. This not only reflects the technical and service strength of the bid-winning enterprises, but also indicates that virtualization service providers will embrace bright future in the NFV field of 5G era.

    With NFV, 5G can realize low-cost, open, and flexible, and 5G commercial use promotes the maturity and development of NFV industry chain. So, the common progress of 5G and NFV provides broad space for telecom equipment manufacturers.

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