Category: Telecom

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  • Lack of clarity will stump 5G growth

    Lack of clarity will stump 5G growth

    As the first commercial deployments of 5G start to appear, the stage is set for consumers finally to find out what the powerful next-generation mobile standard promises can bring: an ambitious and far-reaching technological advance that transforms virtually all aspects of human activity—how we experience life, conduct business, create goods, and build societies.

    That’s the theory and the hope.

    For many in the industry 5G will set the stage for incredible change. However with standards are still being rolled out, it remains a confusing landscape, with varied and sometimes conflicting interpretations of what 5G is and what to expect from it.

    This confusion is impacting not just consumers but also complicating the industry’s ability to measure itself against a standard set of 5G expectations and requirements.

    To optimize short-term and long-term 5G adoption, it is imperative that clarity regarding what 5G is and when each capability will be available is established for both consumers and the ecosystem. To that end, IHS Markit follows the official 3GPP definition of 5G but also believes that this description needs to be understood within the context of everyday experience and concepts.

    According to the IHS Markit whitepaper, The promise and potential of 5G, 5G will improve existing services and enable new use cases, such as driverless cars, immersive entertainment, zero-delay virtual reality, uninterrupted video and no-latency gaming. On the industrial front, 5G will be key to expanding and realizing the full promise of the internet of things (IoT), with the technology’s impact to be felt in smart homes, smart cities and smart industries.

    “The marketplace implicitly understands 5G represents an unprecedented growth opportunity, with the initial smartphone rollout set to generate record shipment volumes,” said Francis Sideco, vice president at IHS Markit. “However, fewer people understand the iterative nature of major technology rollouts such as the one we are going through now with 5G—a process involving multiple major updates that will add new capabilities in the coming years. With each of these updates having the potential to significantly disrupt the market’s competitive dynamics, it’s critical for companies to clearly understand the implications of each rollout or risk falling behind the competition.”

    New 5G technical standards will eventually enable the creation of applications that could open new opportunities, inform new business models and transform everyday life for multiple industries and billions of users throughout the world.

    However, many of these capabilities won’t be available in initial 5G rollouts, but instead will arrive in subsequent releases of the standard to be implemented over the next few years. Each of the releases will deliver new challenges and opportunities not only for the wireless industry but also every industry for which the new use cases are envisioned. To fully realize the potential of these opportunities, competitors will need to understand and capitalize on new capabilities even before they are fully introduced.

    The 5G standard’s next release is already on the horizon, with the expected introduction of Release 16 in late 2019. The upcoming release will deliver highly desirable enhancements, including far greater reliability and peak data rates of 20 Gbps downlink and 10 Gbps uplink.

    “This next phase of implementation and rollout will trigger a race among mobile network operators to meet and take advantage of these performance enhancements. The winners of this race are likely to gain a competitive advantage as they gear up for the next wave of growth,” Sideco said.

    Future revisions will spur similar competitive battles, as 5G adds major new capabilities and expands into other markets beyond mobile communications, such as mission-critical applications and massive internet of things (IoT) deployments.

    “For companies throughout the technology supply chain—from network operators, to smartphone brands, to industrial and automotive device manufacturers and electronics suppliers—it will become increasingly important to understand the changes brought by each phase of the 5G deployment and to be ready to capitalize on the latest capabilities to gain a competitive advantage,” concludes Sideco.

  • Cloud fueled data center spending growth to $150b in 2018

    Cloud fueled data center spending growth to $150b in 2018

    Synergy Research Group (SRG) says a 30% spike in public cloud spending the data center hardware and software market grow to $150 billion in 2018. In addition, the requirement for ever-richer server configurations also drove up enterprise server average selling prices.

    Spending on enterprise data center infrastructure grew by 13% in part driven by the 23% growth in private cloud or cloud-enabled infrastructure, which helped to offset a marginal decline in traditional, non-cloud infrastructure.

    In terms of market share, ODMs in aggregate account for the largest portion of the public cloud market, with Dell EMC being the leading individual vendor, followed by Cisco, HPE and Huawei. The 2018 market leader in private cloud was Dell EMC, followed by Microsoft, HPE and Cisco.

    Private cloud or cloud-enabled infrastructure accounted for a little over a third of the total. Servers, OS, storage, networking and virtualization software combined accounted for 96% of the data center infrastructure market, with the balance comprising network security and management software.

    “Cloud service revenues continue to grow by almost 50% per year, enterprise SaaS revenues are growing by 30%, search/social networking revenues are growing by almost 25%, and e-commerce revenues are growing by over 30%, all of which are helping to drive big increases in spending on public cloud infrastructure,” said John Dinsdale, chief analyst at Synergy Research Group.

    “We are also now seeing some reasonably strong growth in enterprise data center infrastructure spending, with the main catalysts being more complex workloads, hybrid cloud requirements, increased server functionality and higher component costs,” added Dinsdale.

  • Cloud gaming could make up half of 5G data traffic by 2022

    Cloud gaming could make up half of 5G data traffic by 2022

    Cloud gaming could generate as much as 50% of 5G data traffic by 2022, based on the rapid progression of cloud gaming services in recent months.

    That was one of the key findings presented during a recent livecast hosted by Openwave, which was attended by over 50 operators, including Vodafone, Orange, Deutsche Telekom, Verizon, AT&T and Telefónica.

    According to Openwave, most operators believe cloud gaming could represent 25% to 50% of 5G data traffic by 2022.

    As mobile operators deploy 5G networks, it’s vital that mobile operators prepare for the disruptive impact that cloud gaming could pose, the company noted.

    “The recent emergence of cloud gaming platforms including Google Stadia, Apple Arcade, Microsoft xCloud and Snap Games has not escaped the attention of the operator community,” said John Giere, president and CEO of Openwave Mobility. “Over-the-top (OTT) players have ambitious plans to become the ‘Netflix for gaming’, hosting libraries of thousands of instantly accessible games that, ultimately, will consume three to four times the amount of bandwidth on 5G networks, compared to standard definition video traffic. Needless to say this will impact mobile operator data strategies.”

    “While 5G network rollouts are still in their infancy, OTTs are already planning augmented, virtual and mixed reality services, in addition to cloud gaming. Combined with the expected continued growth of streaming video, these services will rapidly eat into the additional bandwidth provisions of 5G.”

  • Airtel launches e-book app store

    Airtel launches e-book app store

    India’s Bharti Airtel has expanded its OTT portfolio with the launch of a new app store for e-books.

    The Airtel Books app currently offers over 70,000 e-books from Indian and international authors, including some of the latest launch titles.

    The app will include a subscription service offering access to a curated selection of the e-books, priced at 129 rupees ($1.87) for six months and 199 for 12 months. Customers can also purchase books on a per-item basis.

    Airtel Books will be available to both Airtel and non-Airtel customers via both iOS and Android.

    Airtel is offering all users a complimentary 30 day trial and access to free titles from the Readers Club component of the app. Smartphone customers will also be offered five free books from a selection of over 5,000 paid e-books.

    The new OTT app adds to Airtel’s existing digital content portfolio, which includes offerings including the Wynk Music subscription service and Airtel TV.

    “Airtel Books is another major milestone in our journey towards building a world-class digital content portfolio. E-books is a fast growing segment along with music and video, thanks to large screen smartphones becoming the cornerstone of digital lifestyle,” Airtel CEO for content and apps Sameer Batra said.

    “We are delighted to roll out this initiative and take it to the smartphone users across India through our deep distribution reach.”

  • 5G to drive backhaul revenue growth through 2028

    5G to drive backhaul revenue growth through 2028

    The global satellite backhaul market is expected to reach over $32 billion in revenue by 2028, with 5G supporting one third of the overall market, according a new report released from NSR.

    According to the report, mobile wireless backhaul is the largest opportunity in this space, as satcom becomes a mainstream solution and 5G opens opportunities for satellite to seamlessly integrate with the global telecom ecosystem.

    Trunking also appears to be re-born via lower capacity costs and slowdown in fiber expansion, while hybrid networks represent a long-term play for emerging OTT content distribution models, the research firm said.

    The direct impact of 5G in satcom won’t be seen before mid-2020s, but growth will be sizable, generating one of every three new dollars for backhaul capacity revenues through 2028.

    The ground segment has a key role to play in the integration of satcom into 5G, by responding to new performance requirements and making the solution transparent and easy to adopt for mobile operators.

    “The combination of competitively priced capacity with advanced ground segment makes satcom a relevant solution for mobile network operators continually seeking new sources of revenue and who are increasingly capex-conscious and risk-averse,” stated Lluc Palerm, NSR senior analyst and report author.

    “The transition to broadband is accelerating in areas like Latin America, where for the first time in 2018, 4G generated the highest share of traffic over satellite versus 2G and 3G.”

    Satcom can also find the upside of OTT in hybrid networks.

    NSR said satellite is still king for content broadcasting, and as content moves to the edge to support the explosion on IP Video and new formats like UHD and eventually VR/AR proliferate, satcom will emerge as a key tool in the ecosystem.

    Business models are evolving quickly, resulting in the increased demand for managed services.

    “With MNOs focusing on core services and minimizing capex exposure, managed services are the perfect match between satcom’s streamlined operations for remote areas and the MNO need to continue expanding coverage profitably,” the research firm noted.

    “New technologies like small cells expand the addressable market into the most ARPU-constrained and remote locations, where revenue-sharing schemes are gaining traction.”

  • Airtel contracts Ericsson for VoLTE upgrade

    Airtel contracts Ericsson for VoLTE upgrade

    India’s Bharti Airtel has contracted Ericsson to expand its voice over LTE (VoLTE)services to cater to growing demand.

    Under the agreement, Airtel will deploy Ericsson’s Cloud VoLTE solution, which is used to deliver HD voice enabled VoLTE services onto a customer data center.

    Ericsson Cloud VoLTE includes a virtual IMS and supporting nodes to add VoLTE services onto existing LTE data networks.

    The upgrade forms part of Bharti Airtel’s network transformation program, Project Leap, and is aimed at helping Airtel carve out a larger share of the growing Indian VoLTE market. Ericsson’s latest Mobility Report predicts that there will be 780 million VoLTE subscriptions in India by 2023.

    “We remain committed to building a state-of-the-art future-ready network as part of…Project Leap, and delivering best-in-class digital experiences to our smartphone customers,” Bharti Airtel CTO Randeep Sekhon commented.

    “This partnership with Ericsson will allow us to rapidly increase VoLTE capacity to serve our growing traffic, and make our network prepared to easily introduce new communication services today and in 5G.”

  • Telecom Fiji to deploy 10G PON

    Telecom Fiji to deploy 10G PON

    Telecom Fiji has announced it will deploy the first all-optical 10G PON fiber network in the South Pacific, in partnership with Huawei.

    The operator plans to use the network to deliver gigabit network services for both households and enterprise customers.

    Huawei has been contracted for the deployment, which is aimed at enhancing the operator’s customer experience while significantly reducing networks operations and maintenance costs.

    “By adopting this 10G PON solution, the competitiveness of our fixed broadband in Fiji has now significantly enhanced… We are fully confident to maintain our technological leadership in the South Pacific island markets,” Telecom Fiji general manager of sales and marketing Joseph Naua said.

    “We are also proud to work in partnership with Huawei on the deployment of the 10G PON network. At present, the 10G PON network deployment is moving on a fast track, and Huawei will continue to invest and innovate in the ultra-broadband domain.

  • Japanese telcos assigned 5G spectrum

    Japanese telcos assigned 5G spectrum

    Japan’s telecom ministry has allocated 5G mobile spectrum to incumbent operators NTT Docomo, KDDI, and Softbank, as well as local e-commerce giant Rakuten.

    The Ministry of Internal Affairs and Communications has approved the allocation of spectrum after determining that the companies’ applications met the conditions of the allocation.

    The four companies plan to invest heavily in 5G, spending a combined 1.6 trillion yen ($14.4 billion) over the next five years. Docomo is planning the largest spend, with goals to invest at least 795 billion yen in 5G over this time.

    The four plan to commence commercial 5G services in 2020, with KDDI and SoftBank planning to commence advertising for its services in March.

    Rakuten Mobile, Japan’s upcoming newest market entrant, meanwhile plans to commence 4G services in October 2019 and 5G services in June 2020.

    The conditions for the allocation of spectrum included commitments to commence services in every prefecture of the nation within two years, and set up 5G base stations in at least half the country within five years.

    According to the report, Docomo and KDDI are each targeting more than 90% 5G population coverage by the end of the five years, while SoftBank is targeting 64% coverage while Rakuten is aiming for 56%.

  • Docomo Ventures invests in Singapore’s Kpisoft

    Docomo Ventures invests in Singapore’s Kpisoft

    NTT Docomo Ventures, a wholly owned subsidiary of NTT Group, has made an investment in Singapore-headquartered cloud-based enterprise management solutions provider Kpisoft.

    NTT Docomo Ventures has acquired shares of Kpisoft through its third-party allotment, the company said. Financial details of the transaction were not disclosed.

    According to Docomo Ventures, the solution provided by Kpisoft is designed to analyze data that exists in EPM, BI, human resources management and other relevant systems within an enterprise on a single platform.  The solution has a function that can automatically distribute the analytical findings directly to individual employees in an action proposal form by using machine learning and natural language processing.

    This enables enterprises to make use of analytical findings on enterprise performance and directly and automatically support the actions of individual employees, the company noted.

    Docomo Ventures further said it has made the investment because it “highly expects” the services and knowhow Kpisoft provides will bring added values to EPM or BI the NTT Group offers.

    Reliance Jio Digital Services acquires Haptik

    Meanwhile India’s Reliance Industries, through its subsidiary Reliance Jio Digital Services, has acquired artificial intelligence firm Haptik for Rs 700 crore ($100 million).

    Reliance Jio will hold about 87% of the business with the rest being held by Haptik founders and employees through stock option grants, according to a company release.

    As part of the transaction, Haptik’s existing major shareholder Times Internet will exit the company.

    Akash Ambani, director at Reliance Jio Digital Services said the acquisition underlines the company’s commitment to further boost the digital ecosystem and provide Indian users conversational AI enabled devices with multi-lingual capabilities.

    “We believe voice interactivity will be the primary mode of interaction for Digital India,” Ambani said in a statement.

    “We are delighted to announce this partnership, and look forward to working with the experienced team of Haptik in realizing this vision for offering greater connectivity and rich communication experiences to the billion+ Indian consumers.”

    Founded in 2013, Haptik is chat based virtual concierge mobile application. It client base includes Samsung, Coca-Cola, Future Retail, KFC, Tata Group, Oyo Rooms and Mahindra Group.

    The Haptik team will continue to drive growth of the business, including the enterprise platform as well as digital consumer assistants.

    “This transaction enables Reliance Jio to leverage Haptik’s capabilities across various devices and touch points in the consumer’s journey. The investment focus is on enhancement and expansion of the platform, with an addressable market opportunity of over 1 billion users in India,” the company said in a statement.

  • Viettel deploys Vietnam’s first 5G base stations

    Viettel deploys Vietnam’s first 5G base stations

    Vietnamese military-run operator Viettel has installed Vietnam’s first 5G base stations in Hanoi ahead of planned 5G trials.

    The operator has deployed three test 5G base stations at various offices, and expects to switch them on for trials in early May.

    Viettel plans to test 70 5G base stations in Hanoi and Ho Chi Minh City in June in preparation for a large-scale deployment, the report states.

    Viettel plans to be one of the early adopters of 5G, targeting a commercial launch in 2020. Viettel is taking the lead in the deployment of the technology in the market.

    At the recent ASEAN Conference on 5G in Vietnam, minister of information and communications Nguyen Manh Hung said 5G represents an opportunity for Vietnam to change its global rankings by stimulating growth in the digital economy.

  • Thai telcos fear excessive costs from new cable policy

    Thai telcos fear excessive costs from new cable policy

    The Telecommunications Association of Thailand (TCT), the industry body representing Thailand’s major operators, has argued that the policy will impose excessive costs on telecommunications service providers and may prove to be impractical.

    The association is urging the government to subsidize construction costs for the underground pipelines that would hold the currently overhead cables, and has suggested that operators would be willing to pay “reasonable” rental fees for this passive infrastructure.

    But as it stands, the association has stated that it is concerned that operators would be required to pay rental fees for underground pipelines that are up to 100 times higher than the current price paid for using overhead poles – nearly 20,000 baht per kilometer per month, compared to around 200 to 300 baht for per kilometer per month for overhead poles.

    Meanwhile the association has also proposed an alternative model involving using a combination of underground pipes and overhead poles that in some cases could use tubing that can group all cables together.

    This would help the government achieve its goal of helping to beautify the city while being a more affordable option to locating all cables underground.

  • China’s 5G investments may be slowing

    China’s 5G investments may be slowing

    While China is certain to be one of the world’s largest 5G markets and has been spending heavily to gain an early lead in 5G adoption, there are signs that 5G momentum is slowing down in the market.

    This was one of the conclusions of a new report from IDTechEx Research on the 5G technology market forecast for the next 10 years.

    The report found that China’s big three operators China Mobile, China Telecom and China Unicom have all announced 5G capex budgets that are lower than expected.

    China Unicom plans to spend between 6 billion yuan ($893.3 million) and 8 billion yuan on 5G in 2019, while China Telecom has allocated 9 billion yuan. While market leader China Mobile has not disclosed its projected 5G spending, the report forecasts that its spending will be in the region of 17 billion yuan.

    The total 5G capex budget allocated in China (34 billion yuan) for 2019 is therefore significantly lower than the projected 50 billion to 100 billion yuan.

    Factors behind the lower than expected spending include greater activity to upgrade 3G networks to 4G, falling per-subscriber revenue and the uncertainty over whether 5G investments will generate returns, the company said.

    Based on slower than expected 5G deployment schedules, the total contribution of 5G for the telecoms sector could be reduced from the projected $200 billion by 2029 to $160 billion.

    But operators are projected to invest around $200 billion to $350 billion for 5G development from 2020 to 2030.

     

  • Spark New Zealand names Grant McBeath customer director

    Spark New Zealand names Grant McBeath customer director

    Spark New Zealand has appointed Grant McBeath (pictured) as its new customer director on the company’s leadership “squad”, effective July 1.

    McBeath will replace current customer director Jolie Hodson, who will become Spark’s chief executive from that date.

    Commenting on McBeath’s appointment, Hodson said “he has a strong track record of building high performing teams and delivering for customers not only at Spark, but in his time in global executive roles in companies like Nokia.”

    McBeath joined Spark in 2013 as general manager of sales for the consumer and SMB business, alongside acting for six months as CEO for Spark Home, Mobile and Business operations before becoming Channel Leader, Consumer and SMB when Spark adopted an “agile” restructuring program.

    From July 1, Spark’s leadership “squad” will have eight members: Jolie Hodson (chief executive), Grant McBeath (customer director), David Chalmers (finance director/CFO),  Melissa Anastasiou (general counsel), Joe McCollum (HR director), Matt Bain (marketing director), Tessa Tierney (product director), and Mark Beder (technology director).

    NTT appoints Kazuhiro Gomi CEO for new research unit

    NTT Corp has appointed Kazuhiro Gomi as president and CEO of NTT Research Inc, a new unit the Japanese telco created on April 1.

    Kazuhiro Gomi, who assumed the new roles on the same date, will continue to serve on the board of directors for NTT Communications and retain his current role as president and CEO of NTT America.

    He joined NTT Corp in 1985 and took up several management positions across the group, including global business VP at NTT Communications and COO of NTT America before being promoted to president and CEO of NTT America in 2010.

    According to NTT, the new research arm will focus on advanced R&D to further develop and accelerate research activities originating from NTT Laboratories in Japan.

    NTT will launch laboratories-Quantum Science & Computing Laboratories, Cryptography & Information Security Laboratories, and Medical & Health Informatics Laboratories- in July, which will become the core of NTT Research.

  • Verizon launches collaboration service in 80 markets

    Verizon launches collaboration service in 80 markets

    US-based telecommunications operator Verizon has launched a new collaboration service which will enable the company’s network customers to integrate their voice infrastructure to a Microsoft Teams environment across 80 markets.

    The new service will take advantage of Direct Routing and Verizon’s SIP Trunk connectivity to give users access to Microsoft Teams’ collaboration features, which include the ability to call to and from traditional phones, VoIP or mobile phone lines using the platform.

    Verizon is using its Session Border Control as a Service (SBCaaS) solution to deliver the virtualized, cloud-based service.

    Other capabilities within the Microsoft Teams unified communications platform include persistent workplace chat, video meetings, file storage and collaboration, and application integration.

    Teams is built on the Office 365 Groups subscription-based office productivity suite, and is now in use by 500,000 organizations worldwide.

    “Enterprises are always looking for tools and solutions for better productivity and collaboration,” Verizon SVP of business products Shawn Hakl said.

    “By integrating Verizon’s SIP Trunking into Microsoft Teams, users get the best of both worlds. They are able to have reliable communication services from Verizon, seamlessly integrated into their Microsoft Teams collaboration software.”

  • BT signs three-year deal with NATO

    BT signs three-year deal with NATO

    The UK’s BT has extended its relationship with the North Atlantic Treaty Organization (NATO) military alliance, announcing a contract to support the alliance’s global operations.

    Under the three year contract with NATO’s Communications and Information Agency (NCI), valued at €5.9 million ($6.64 million), BT will provide support services to more than 70 NATO locations internationally.

    This will include sites spread across the Alliance’s 29 member countries, as well as other locations.

    “Digital transformation is a strategic driver for multinational organisations. Like many of our global customers, NATO faces a dynamic operational landscape and looks to harness the latest digital tools and technologies to enhance its performance,” BT CEO of Global Services Bas Burger said.

    “With our global secure network and expertise as a trusted supplier to governments, international agencies and multinationals, BT is well placed to support NATO in an increasingly digital world.”

    The NATO alliance consists of 29 member states from North America and Europe.