Thousands of kms of fibre could be left underutilised warns asset reuse specialist

Press Release

8th August 2024 – Some builders of full fibre networks who have received government funding to create broadband connectivity in rural and hard to reach areas could be failing to make their cables easily available to other operators, despite open networking being a condition of receiving taxpayers’ money. Failing to promote and enable access to these networks is holding back plans to ‘level-up’ rural and remote communities across the UK, according to asset reuse specialists AssetHUB.
An estimated 100,000km of taxpayer-funded full fibre cables are being laid in the UK thanks to government subsidies made available through the government’s flagship £5 billion Project Gigabit. Over £1.4 billion has been granted to 12 companies who are building broadband networks in places including Cornwall, Cumbria, Northumberland, Yorkshire and East Anglia according to GOV.UK. While it is a condition of receiving the grant that companies raise awareness of where their new networks are and enable other operators to use them, many are failing to make the most of these important assets.
AssetHUB is urging all network builders that have received funding through BDUK, to make sure they know where their fibre is deployed and advise that this infrastructure is open for use by other companies. AssetHUB advises that this is not only to ensure compliance to BDUK, but to allow real competition for consumers and reduce overbuild in the industry, as well as generating much-needed revenues from the fibre cables.
“Close to 100,000km of fibre is being deployed across the UK thanks to the £1.4 billion in Project Gigabit funding from BDUK,” said James Saunby, from industry specialists GreySky Consulting. “It is critical that network builders understand the potential for these networks to be clearly open and able to be used. A network mapping and contracting service, which is already being driven by the ongoing consolidation between Altnets, that can securely share the location and scope of existing networks is required.”
BDUK provides public money for rural deployments that are mandated to provide wholesale access to passive, active, backhaul and dark fibre. The Project Gigabit broadband rollout programme aims for 1Gbps capable broadband networks for 85% of UK premises by the end of 2025 and nationwide coverage by 2030.
“The UK Altnet industry is at a risk of more unnecessary overbuild as new entrants rush to deploy new infrastructure without considering the long-term sustainability of their business models,” said Rob Leenderts, CEO of AssetHUB. “AssetHUB’s BDUK Project Gigabit-compliant trading platform for purchasing and selling infrastructure and services helps network builders map their fibre networks for visibility. It also makes sure approved ISPs and other network builders are aware and able to gain access to the network, securely, offering those that have not received funding an alternative to building more fibre.”
“For those network builders who have funded their own network buildouts, there is the added opportunity to generate some more revenue by selling space, services and unused fibre to other companies,” continued Leenderts.
To find out more about AssetHUB, please visit: https://www.asset-hub.co.uk/.

NTT to launch new AI company ‘NTT AI-CIX’ 

News 

The telco is the latest to join the global race for AI dominance 

Japanese telco NTT (Nippon Telegraph and Telephone Corporation) has announced its intention to launch a new AI company, named NTT AI-CIX, that the company says will focus on the promotion of “chained AI”, rather than “individual AI”. 

With 1.95 billion yen ($13.6 million) in capital, the new company is set to officially launch on 26 August in Tokyo. 

“By becoming a company that can carry out everything from research and development to service provision, we have created a new structure that can create new value with a sense of speed even in the midst of the rapid changes surrounding AI,” said President and CEO President and CEO, Ippei Shaka. 

“Utilizing cutting-edge technology, we will achieve everything from individual tasks to overall optimization of the supply chain through “chained AI,” in which various AIs work together across business and industries,” read the company website. 

“In order to solve our customers’ problems, we will provide a one-stop service from consulting to product/solution development and AI platform services, contributing to the sustainable development of society,” it continued.  

This is not the first AI offering that NTT has launched. In December last year, the company introduced its Japanese and English large language model (LLM) ‘tsuzumi’, aimed at businesses seeking operational efficiency and digital transformation. The business began in March this year, having already been implemented in the medical and contact center sectors. In June this year, the platform was integrated into Microsoft Azure AI. 

Keep up to date with the latest telecoms news by subscribing to the Total Telecom daily newsletter 

Also in the news:
Vodafone kick-starts £430 million share buyback scheme
Google Search is an illegal monopoly, US court rules
Deutsche Telekom and Volkswagen leveraging 5G to manage automotive terminal 

UK Broadband and Mobile Providers Balk at Ofcom’s Call for Battery Backup

The UK telecoms regulator, Ofcom, has published some of the responses they’ve received from fixed broadband ISPs and mobile operators to their consultation on enhancing network resilience in order to “reduce the risk of network outages“ (here). Suffice to say that many operators are balking at the costs of deploying national battery backup.

At present Communications Providers (CSPs) already have a legal obligation to identify, prepare for and reduce the risk of anything that compromises the availability, performance or functionality of their network or service. But network outages still occur and Ofcom has previously warned that the consequences of these are “likely to become more severe as society becomes increasingly dependent on them to function.

NOTE: The new Electronic Communications (Security Measures) Regulations 2022 (summary) also impose new obligations on network operators, which is partly why Ofcom are seeking to update their guidance on network resilience.

One of the most interesting and contentious aspects of this has been the regulator’s pursuit of greater battery backup for both fixed line and mobile networks. For example, their consultation asks questions about the feasibility of mobile operators installing a minimum 1 hour of battery backup on Radio Access Network (RAN) sites.

Currently, the amount of battery backup across the mobile RAN varies by operator (EE, O2, Vodafone and Three UK), in terms of both the proportion of cell sites that are backed up and for how long. But the impact of recent winter storms and the migration away from traditional landline phones helps to underline that consumers are placing greater importance upon the dependability of their mobile phones, such as for emergency calls.

In addition, Ofcom suggests that having a 4-hour power backup in active cabinets on fixed line broadband networks would be an “appropriate level” because this is currently said to be a “typical practice when installing new active cabinets to support technologies such as Fibre-to-the-Premises” (FTTP). Some network operators do indeed do this, but others do not or deploy a lower level of battery backup.

However, the biggest obstacle here is likely to be cost, particularly for mobile operators. Ofcom’s illustrative example suggests that to install a minimum 1 hour of battery power backup on RAN sites, where power backup is likely to be feasible, could cost in the region of £0.9 – £1.8bn (this would end up being passed on to consumers as higher prices). Due to this the regulator doesn’t consider it “proportionate” to include such a measure in their future guidance “at this stage“, but they do seem to be moving in that direction.

Suffice to say that the publication of the first official responses to this consultation have helped to set out the different viewpoints. Naturally we’ve summarised a few of those below, which mostly focuses upon the issue of battery backup as the wider aspects of network resilience are trickier to reflect without a much longer and more laborious article.

BT’s Response

BT highlights how it is “difficult to understand what benefit to citizens or consumers would derive from 1hr battery back-up in urban locations given the majority of these outages cover a single sites, there is cell site overlap resilience alongside Distribution Network Owners (DNO’s) resilience, which means a security compromise is unlikely to occur.”

The provider naturally agrees with Ofcom that the “cost of ubiquitous battery back-up would be ‘disproportionate’ for operators to bear alone“, but they remain “concerned, however, that the suggestion of widespread deployment of non-mains power back-up across the entire mobile estate will go well beyond the intent of section 105A of the Communications Act.” BT also sets out some of the measures they’ve adopted to help with resilience.

The key measures deployed by BT’s mobile RAN include:
• Overlapping cell site coverage;
• Deployment of targeted non-mains power back-up to appropriate [“high risk”] sites;
• Use of ‘roving’ engineering teams and equipment to provide power back-up where needed;
• Development of new tools and processes to enhance coordination with energy companies;
• Availability of limited national roaming to allow continued emergency access where coverage allows.

Cellnex UK’s Response

Cellnex, which is perhaps more focused on the infrastructure delivery than service side, took a more optimistic view and highlighted how battery backup is a solution already used in mobile networks and improvements in battery technology “makes this solution more compelling for wider deployment“. The company noted that batteries are “relatively easy to install“, can be recharged directly from the mains and have lower maintenance than diesel generators.

Cellnex also pointed out that one way to partially off-set the costs of deploying greater battery backup would be to help cut energy costs. “Batteries could be charged at night when power demand is low and per kWh pricing is lower and then utilised during peak power demand to reduce consumption costs,” said the company. “Another optimisation could be to deploy solar panels alongside the batteries” to help reduce peak power load and bring down costs. But that’s not always viable with the limited space available at mobile sites.

Cellnex example

For example an MNO site consuming 6 kW of power could save c.£870 per annum if 2 hours of peak power consumption per day can be supplied with batteries recharged at night when power costs are lower. Over a 15 year term the NPV of this saving would be c.£10,000 which would offset part of the cost of installing a battery back-up solution. The economics of the savings versus cost to deploy requires further investigation and more detailed financial modelling.

However, they also warned that a “significant challenge in cellular networks is battery theft, especially from remote cell sites“, which they said meant there would be “additional costs to provide adequate security and insurance to protect these assets.” Various other operators raised the same concern and we’d agree that this could be a big issue, especially with the size of units likely to be needed for such a task.

Mobile UK’s Response

The mobile trade association noted how the UK’s power networks “are generally very reliable”, before highlighting a report from Ofgem, which noted that the average ‘customer minutes lost’ (CML) across the UK was 32 minutes in 2022 (down from 39 minutes in 2015) – a tiny fraction of overall usage. “It follows that operators’ scarce capital resources would be very much better targeted on customer known priorities such as reducing congestion (including investing in 5G), extending coverage and improving security,” said Mobile UK.

Three UK’s Response

Naturally, Three UK felt as if mobile operators “should not be required” to utilise battery backup at the RAN Cell Site level in order to mitigate against short term power-related incidents because:

(i) Distribution Network Operators (DNOs) are already providing high levels of availability.

(ii) The cost to deliver and maintain battery backup at RAN Cell Sites is prohibitive.

(iii) Short-term power outages are de-minimis in comparison to the overall network availability and any other outages due to planned activity.

Meanwhile, in areas of high customer density, where the impact of short-term power loss is most felt, they echoed BT by saying that “there is overlapping coverage from adjacent sites” and “thus a loss of power at one cell site does not necessarily imply a total loss of service.” Three UK suggested that it would be better to improve resilience by focusing any power backup on critical “Hub Sites” and at “pre-Aggregation nodes” (Exchanges).

Virgin Media and O2’s Response

VMO2 actually submitted two responses to different parts of the consultation, albeit with a fair bit of cross-over. For example, Virgin Media said they “do not believe that introducing a blanket requirement for a minimum of 4-hour battery backup for all active street cabinets is appropriate or proportionate.”

VMO2 added that they felt battery backup at the access layer (fixed and mobile) ought to be considered holistically as part of a wider cross sector consultation on power resilience before implementing any minimum requirement for active cabinets. The operator also highlighted a problem with the hard suggestion of a 4-hour backup.

VMO2 Statement

Best practice for new fibre networks is to build with battery backup at the OLT. However, as currently worded, even new full fibre networks may have to replace batteries recently installed, as they have generally been architected to meet 3-4 hours in typical use as published by the supplier.

Requiring newly built networks to replace batteries which have approximately 3-4 hours battery backup because they do not have a minimum of 4 hours battery backup would not in our view be appropriate or proportionate given the cost of this exercise compared with the minimal additional benefit to customers.

The operator also added that battery life is affected by temperature, use and will deteriorate over time. At some point batteries will need to be replaced. By specifying a minimum battery backup in the Guidance, “the implication is that CSPs would be expected to replace batteries as soon as they offered less than 4-hour minimum backup. We are not clear how we would be able to determine this, and even if we could, replacement at this point would be costly, environmentally wasteful and, we believe, disproportionate.”

Finally, O2 suggested that Ofcom still seemed “minded to require a minimum of 1-hour battery backup for all cell sites” (i.e. whether now or in the future), and they “do not agree that this measure is appropriate or proportionate.

Vodafone’s Response

Vodafone said that the primary responsibility for ensuring the reliability of the electricity grid rests with licensed Distribution Network Operators (DNOs), which they felt meant that the “single most effective step” to improve the reliability of the UK’s mobile and fixed line networks is to “better assure the power grid, making it more robust and better able to withstand weather events, while simultaneously improving processes to prioritise mobile sites for restoration should power be lost.”

The operator added that it would be particularly difficult (maybe even impractical) to add battery backup to sites that exist in “exposed, elevated locations” (i.e. many remote rural areas), which are much more “vulnerable to the impact of bad weather“. Vodafone suggested that “at a practical level, this restricts the ability of mobile networks to act as a network of last resort, with the fixed network often better placed to perform this role.” The latter argument is of course debatable.

Vodafone also noted, correctly, that there needed to be some “recognition that longer outages, such as those experience with storm Arwen, are unlikely to benefit from MNO battery investment“, which is because such outages are often much more protracted (lasting days or even weeks) and, in these situations, tactical emergency generator deployment can be used (although we do see examples where this doesn’t happen or is slow to occur).

Vodafone Statement

It may not be possible nor sensible to power all sites for 1 hour due to the costs involved. The expenditure required might not be justified, particularly when improvements in the reliability of the energy grid, the use of priority restoration processes, more extensive use of fixed network BBUs, the introduction of direct to device satellite technology in the medium term and environmental considerations around large-scale battery deployment are all fully taken into account.

Ofcom’s July 2023 impact assessment guidelines require all these issues to be fully quantified and considered before any decisions are taken. The question of funding must also be addressed upfront to ensure no unfunded obligations are placed on the UK mobile sector. Without this, investment in 5G, coverage and capacity are all at risk.

INCA’s Response

Finally, INCA, which represents alternative broadband networks (often of the fixed line variety), warned that “mandating four hours of back-up” (active cabinets) for smaller operators “is considered excessive and would result in not just the installation of larger batteries but wholesale change of cabinets as many are not large enough to accommodate batteries of that size. Individual INCA members have quoted costs between several £100ks and several £1ms.

INCA Statement

This level of incremental cost, being imposed after networks have been built and investment cases signed off based on a different level of battery back-up in cabinets, is not feasible for a number of Altnets and is potentially fatal to their ongoing viability. This would have the adverse effect of slowing down full-fibre deployment and reducing competition and consumer choice.

In addition to the initial expenditure, the costs of ongoing maintenance of such infrastructure must be taken into account, including the replacement of battery packs. A battery pack would typically last for a few years, but batteries start to degrade towards the end of their lifespan. Monitoring of remaining battery capacity would become a reoccurring expense which is again not in the network operator budgets.

The full range of responses from different network operators and interested parties can be seen below, although it’s clear that there would be many issues of cost, security and maintenance / durability / replacement to consider in some of the battery related questions that Ofcom are currently exploring.

On the other hand, it doesn’t look as if the regulator will be taking a hard line on things this time around (i.e. not imposing a national requirement for all sites) and some organisations, such as Cellnex UK, have highlighted how harnessing battery backup as a way of reducing peak-time energy costs / usage could potentially offset some of the economic challenges. But Ofcom might well propose something more targeted, at least to start with.

Responses to Ofcom’s Consultation on Resilience Guidance
https://www.ofcom.org.uk/internet-based-services/network-security/resilience-guidance/

Trenches Law Closes Wayleave Division Setup to Help UK FTTP Builds UPDATE

Telecoms focused legal firm Trenches Law has revealed to ISPreview that, “due to industry conditions”, they’ve taken the decision to close Trenches Wayleave Ltd, which is the branch that was set-up to help various UK full fibre broadband operators to simplify and manage the often complex wayleave process (legal land/property access agreements).

The move may well come as a surprise, not least because it follows only around a year after Trenches Wayleave Ltd. sought Code Powers from Ofcom to help support the same area of work for their network operator clients (here). But crucially, Trenches Law itself is still expected to “remain operational and thriving“, even if their dedicated Wayleave division doesn’t.

The management decision largely relates to the current downturn in network build, which has seen many network operators suffering a slowdown in build and redundancies (i.e. less business for Trenches Law) – partly due to high interest rates (i.e. rising debt repayments and the ability to raise fresh investment), rising build costs in other areas and an aggressively competitive environment (i.e. harder to build take-up).

Terry Daniell, co-founder and operations director at Trenches Law, told ISPreview:

“The Government’s target is for gigabit broadband to be available to 85% of the UK by 2025 and nationwide by 2030. While significant strides have been made recently, the roll-out is yet to satisfy hard-to-reach communities, such as residents in multi-dwelling units (MDUs) and workers in multi-business units (MBUs).

However, investment challenges persist. Operators need heavy capital to fund infrastructure builds, but investors need proof they can make a return — it’s a vicious cycle that continues to plague the industry as a whole. With trusted industry sources also being left out of decision-making, a number of factors are exacerbating the challenge.

We’ve therefore made the strategic decision to restructure the business, and close Trenches Wayleave Ltd. That way, we can focus wholeheartedly on our thriving law arm. With a growing number of businesses seeking our legal expertise — many still in telecoms, and a vast number in more of a commercial capacity — it’s a move that makes strategic sense for both Trenches Law and our clients. In fact, in 2024 alone, we’ve seen a year-on-year growth of 32% within Trenches Law, including building on our offering to businesses within the EV sector. So, clients can rest assured it’s business as usual — if not better — on this front.

We’re looking forward to honing in on our seasoned expertise, and continuing to provide more cost-effective legal counsel for ambitious brands.”

Just to be clear. Trenches Law will continue to work on wayleave through the law arm of the business, with all existing relationships, people, and work continuing under Trenches Ltd. Trenches is also ready and able to increase its work on wayleave through the acquisition of new clients and will continue its commitment to bridging the digital divide by focusing attention on wayleave where it needs to be, such as in MDUs and MBUs.

The closure of Trenches Wayleave Ltd is thus more a restructure of the business to reflect the environment in the sector as it stands today. We should add that Trenches Law aren’t the only such organisation able to offer support with wayleaves to network operators.

UPDATE 1:57pm

Added some clarification on the change via the above two paragraphs.

ISP Grain Breaks Own Record with 29 Minute UK FTTP Broadband Install

Alternative broadband ISP and network builder Grain (Grain Connect) claims to have broken their previous home installation record of 36 minutes (here). The event occurred yesterday after a new customer signed-up and had a brand-new Full Fibre (FTTP) broadband service installed into their home in just 29 minutes.

The operator’s full fibre network currently covers 220,000 premises (21st May 2024) across parts of 59 UK locations (and over 150 new build housing developments), which includes a lot of small-to-modest sized patches of various urban areas like Leicester, Liverpool, Accrington, Grimsby, Cleethorpes, Scarborough, Carlisle, Barrow-in-Furness, Hartlepool, Newport, Sunderland, Bolton, Blackburn and so forth. The operator also has 30,000 customers.

NOTE: Grain has previously secured funding of c. £220m (here) via Equitix, Albion Capital, Pinnacle Group and German Landesbank Nord L/B. The operator originally aimed to cover 400,000 UK premises by the end of 2026.

However, in terms of installation times, it’s worth remembering that there can be many different variables to consider depending upon the state of the local network, which makes it difficult to do a general comparison between operators. For example, some homes that have ONTs (optical modems) pre-installed for the same network could technically be remotely provisioned in seconds. But in reality it would still take slightly longer as you also have to boot the customer’s router up to establish a live link and WiFi etc.

Suffice to say, it’s important to give some context to Grain’s previous installation and their latest personal record. The 36 minute (original) installation was for one of their urban premises (a house, not a flat), where they had no infrastructure already in place inside the customer’s property (only outside in the street). The 36 minutes thus covered the following process:

1. The customer calling into our sales team, selecting their package and completing the order.

2. Creation of a work pack that was issued to an engineer.

3. Engineer attending the customer’s home and bringing a new fibre line into their home, terminating the fibre in the home and connecting up the router.

4. Connecting the broadband line to a port in our electronics and configuring the broadband service on the router.

5. Engineer testing the customer connection to ensure the service is working.

6. Tidying up and leaving the customer premises with a brand new working full fibre broadband service.

Doing all that in just 36 minutes really does require the most ideal of circumstances and we should point out that Grain also has a different definition of ‘Ready for Service’ (RFS) from some other operators. For example, Openreach and some other PIA based providers define a home RFS where they have a live service either in a chamber or at the top of the pole somewhere near the premise, which can sometimes be over 100 metres away.

By comparison, Grain define a home RFS when they have a live network to the boundary of the premise. It costs Grain about £200 to connect customers in a property (including the costs of marketing to acquire the customer and the in-home router), which compares with c.£300 for Openreach (excluding marketing and an in-home router).

So, with all that in mind, it’s interesting to note how Grain has just informed ISPreview that they’ve managed to beat their previous time and deliver a new service within just 29 minutes (it was the same type of install as the last one). The event took place in Oldham, where install engineer Samantha completed the install for new customer, Rebecca. The Grain sales, provisioning and technical support teams then facilitated the sign-up, scheduled the installation, and configured the router – going from sign-up at 16:40 to service activation at 17:09.

Richard Cameron, CEO of Grain, said:

“Our customers are at the heart of everything we do. For too long customers have endured long delays to have broadband installed in their homes. At Grain, we have chosen to build our own independent infrastructure, rather than renting the Openreach network. This enables us to deliver for our customers in a way no other provider can match. To do this in just 29 minutes is a testament to our efficient connection process and dedicated team.

While other providers deal in days or weeks, at Grain we deal in minutes.

We strive to deliver exceptional service, offering the lowest prices and the fastest installations, and I am extremely proud of the team for delivering this.”

The catch here is that, as good as this is, it won’t matter much unless you’re lucky enough to be in the minority of premises covered by Grain’s network. Most other network operators normally take several days (lead times of around 1-2 weeks are not uncommon) and of course Grain’s other installs will be slower than this (the operator notes that this will be a hard record for them to beat).

Indosat Ooredoo Hutchison Unveils the Largest Digital Intelligence Operations Center in Southeast East Asia, Marking a New Era in Intelligence Native Telco

Viewpoint

Jakarta, August 6th, 2024 – Indosat Ooredoo Hutchison (Indosat or IOH) today celebrates a major milestone in its journey towards digital transformation with the inauguration of its state-of-the-art Digital Intelligence Operations Center (DIOC) on. This advanced facility represents a significant leap forward in Indosat’s commitment to leveraging artificial intelligence (AI) to deliver exceptional service to more than 100 million customers across Indonesia.

The DIOC was inaugurated by Vikram Sinha, President Director and CEO of Indosat Ooredoo Hutchison and board of management and commissioner, and Simon Lin, President of Huawei Asia-Pacific Region and board, underscoring the strategic collaboration between the two companies. The DIOC will serve as the nerve center of Indosat’s network operations, providing real-time insights and proactive service management to ensure optimal network performance and reliability. This innovative center merges the traditional Network Operations Center (NOC) and Service Operations Center (SOC), marking a new era of intelligent network and service management, propelling Indonesia’s digital future.

Vikram Sinha, President Director and CEO of Indosat Ooredoo Hutchison, said, “Today marks a new chapter in Indosat Ooredoo Hutchison’s story as we inaugurate our Digital Intelligence Operations Center. This facility embodies our ambition of becoming an Intelligence Native Telco, where cutting-edge technology and innovative solutions are at the core of our operations. With the DIOC, we are not just improving network performance; we are redefining the way we serve our customers. By integrating advanced technologies and fostering talent, we are setting new benchmarks in network performance and customer satisfaction. This collaboration is pivotal in realizing our mission to connect and empower every Indonesian through digital connectivity.”

Furthermore, the DIOC has new advanced functionalities such as Real-time Network Insights, enabling Indosat to shift from reactive problem-solving to proactive service management, leveraging real-time data to optimize network performance and reliability. The DIOC also provides comprehensive End-to-End Service Management of all services, including performance, application experience, and quality which empowers Indosat to swiftly resolve customer issues and enhance satisfaction. In the end, the ability of DIOC to integrate data analysis and cutting-edge technologies can fuel continuous Data-Driven Innovation, which enables Indosat to develop new customer-centric products and services, leading the way in digital service advancements.

The inauguration also highlights the deepening partnership between Indosat and Huawei. Together, both companies aim to enhance network infrastructure, accelerate digital transformation, and cultivate top-tier talent to drive Indonesia’s digital future. Huawei’s advanced ICT solutions and technology leadership will help Indosat build a future-oriented, automated, and intelligent network, ensuring flexibility to adapt to customers’ dynamic digital needs.

Reflecting on this collaboration, Simon Lin, President of Huawei Asia-Pacific Region said, “The unveiling of IOH’s Digital Intelligence Operations Center represents a ground-breaking achievement, marking a new era of co-building the innovation hub and embracing intelligent network. This collaboration is built upon our long-term strategic partnership with Indosat, and serves as a testament to our shared commitment to continuously providing exceptional network experience. As a technology innovator, industry pioneer, and local contributor rooted in this region, Huawei is committed to leveraging our innovative solutions to help our customers maintain sustainable business success and competitiveness. Together, we are shaping a more digital, connected, and intelligent future for Indonesia.”

Indosat has made significant strides in its digital transformation journey and achieved significant results. In collaboration with Huawei through the managed services and operations center, Indosat completed experience-centric network consolidation and significantly improved network quality and user experience. Independent third-party testing has shown Indosat’s substantial improvements across rural, urban, and suburban areas, where the download speed in has improved significantly year-on-year (YoY), increasing 44.1% YoY in rural areas, 43.5% YoY in urban areas, and 43.9% YoY in suburban areas, contributing to higher customer satisfaction and network performance. Indosat’s population coverage also increased, by 12.7 million people.

The implementation of network transformation strategies and the adoption of cutting-edge technologies that coupled by strong collaboration with global partners are critical to provide marvelous experience to customers. Indosat and Huawei have embarked on collaboration journey to deepen cooperation, focusing on network infrastructure, network operations, and talent cultivation. Indosat also establish an open and collaborative environment by working closely with international organizations such as TM Forum to nurture innovation and explore new use cases with other global industry leaders.

“As Indosat continues to deploy innovative technologies like digital twin networks, AI/ML, and automation, we remain committed to catalyzing Indonesia’s digital future. By leveraging our extensive network reach and next-generation technology adoption, Indosat aims to connect individuals, businesses, and everything in between, unlocking Indonesia’s full digital potential,” Vikram concluded.

IOH launches Southeast Asia’s largest digital intelligence operations centre 

News 

The facility is a collaboration between IOH and Huawei, and will act as the centre of the telco’s network operations, providing real-time insights and proactive service management, to ensure the reliability and optimal performance of the network

Indonesia-based telco Indosat Ooredoo Hutchison (IOH) has announced the launch of their Digital Intelligence Operations Center (DIOC).  

The DIOC will feature End-to-End Service Management of all its services, which will allow any customer issues to be quickly sorted. It will also integrate data analysis with “cutting-edge technologies,” which IOH says will enable “continuous, data driven innovation”. 

Back in February and Mobile World Congress Barcelona, the two companies signed a Memorandum of Understanding to work together on digital and AI development. 

The centre is a step forward in IOH’s mission for digital transformation, as it pledges to use AI to provide superior service to over 100 million customers across Indonesia and part of its wider commitment to “democratise digitalisation in Indonesia”. 

“Today marks a new chapter in Indosat Ooredoo Hutchison’s story as we inaugurate our Digital Intelligence Operations Centre. This facility embodies our ambition of becoming an Intelligence Native Telco, where cutting-edge technology and innovative solutions are at the core of our operations,” said Vikram Sinha, President Director and CEO of Indosat in a press release. 

“With the DIOC, we are not just improving network performance; we are redefining the way we serve our customers. Our collaboration with Huawei is pivotal in realizing our mission to connect and empower every Indonesian through digital connectivity,” he continued. 

The partnership has allowed Indosat to make significant strides in its digital transformation journey, improving network quality and user experience, and increasing its population coverage by 12.7 million people. Both companies continue to focus on enhancing network operations and infrastructure to propel Indonesia’s digital future forward. 

Keep up to date with the latest telecoms news by subscribing to the Total Telecom daily newsletter

Also in the news:
Vodafone kick-starts £430 million share buyback scheme
Google Search is an illegal monopoly, US court rules
Deutsche Telekom and Volkswagen leveraging 5G to manage automotive terminal

 

To the edge: how AI is revolutionising the way we network 

Viewpoint

This article was written by Matt Rees, Chief Technology & Operating Officer at Neos Networks 

Matt Rees, Chief Technology & Operating Officer at Neos Networks 

No one needs to be reminded of the dominance of AI and its impact on every aspect of our lives. For telecoms, AI is also fueling another, distinct revolution that is fundamentally changing how networks operate. The ever-growing demand for generative AI (GenAI) is driving the rise of ‘edge computing’, with edge data centres being developed and positioned closer to the end-user. By 2030, this market alone is expected to grow by nearly 15% to meet AI’s increasing real-time data processing and low-latency performance demands.  

The case for the edge 

The case for edge networks is clear. Located close to the areas they serve; edge data centres can significantly reduce latency and boost the performance of applications requiring real-time processing. A shift toward this decentralised approach will help balance loads and maintaining data flows in the event of an outage. Not only do they improve the end-user’s experience, but they also improve the overall resilience of networks for operators.  

It’s no secret that AI applications are both data-heavy and compute-intensive, which raises challenges around latency and data storage. With Gartner predicting that GenAI alone will drive a 24% growth in data centres this year, these issues will be exacerbated. However, the edge is set to reduce these pressures on networks. 

GenAI requires faster processing time than regular AI applications, so in many cases will require networks to deliver ultra-low-latency. Edge data centres allow enquiries to be stored and processed close to the end-user, promising a faster experience. This isn’t just theoretical either, we are already seeing edge use cases, including predictive maintenance, autonomous vehicles, and immersive experiences – where every millisecond counts.  

Sustainability and power consumption of data centres must be considered, particularly given Google’s recent concession that data centre energy consumption significantly contributed to its staggering 48% increase in greenhouse gas emissions. It’s estimated that this year alone, UK businesses will require up to 30% more computing power. However, edge data centres promise to reduce the overall power consumption of the grid due to the wider, distributed network that they create, which spreads the computing burden and power demand more evenly.  

The challenges  

It isn’t all sunshine and roses, however. The recent news that BT intends to close down 4,600 telephone exchanges, reducing the number dotted around the UK to just 1,000 by the early 2030s, put a spanner in the works for edge data centre operators. These exchanges are vital for the full-fibre rollout across Britain and present opportunities to deliver edge computing services essential for supporting AI. Given BT didn’t yet mention which exchanges it planned to close, the lack of clarity will likely slow down investment decisions and create a race for space within the remaining locations for the hundreds of network operators using these exchanges. 

Another issue is a lack of investment. Despite widespread investment in ‘traditional’ data centres such as Google’s $1 billion data centre announced earlier in the year, there’s been less investment in edge data centres. The UK’s ambitious AI strategy must address this; focusing on the size, location, and quality of the underlying infrastructure that will support it. Endeavours like Project Gigabit are crucial steps in the right direction as investment in full-fibre rollout is essential to enabling data centre buildout. However, UK government must also prioritise building out the network edge, not just fibre-to-the-home (FTTH) and the central network.   

Data centre buildout = the key to the UK’s AI ambitions  

The UK’s goal to become an AI ‘world leader’ will depend on the country’s fixed telecoms infrastructure’s ability to carry significant amounts of data with minimal latency. If our data centres and networks are ill-equipped to deal with the influx of traffic generated by ‘always on’ Large Language Models (LLMs) and other data-hungry applications like IoT and AR/VR, the government’s ambitions could flounder.  

A hybrid approach 

As AI develops, we anticipate more data centre investment in the North of England. While this will support AI in the region, this investment must be supplemented by edge buildout across the country if the UK is to reach its goal to become an AI superpower. The best approach is a hybrid one, combining strategically placed data centres and adequate PoPs at the network edge in tandem with central data centres. This arrangement will be essential to manage rapid information flow cost-effectively and sustainably while meeting the low-latency needs of AI.  

While AI is fueling significant growth in edge computing, its success is reliant on edge data centres being built to strengthen the network. GenAI cannot perform without the low-latency capabilities and real-time processing provided by these facilities. However, they face challenges including minimal investment and the uncertainty created by the BT Openreach exchange closures. The UK government needs to focus on bolstering telecoms infrastructure, including the edge, so that it can handle the increase in data that comes with widescale AI use. Without this, the UK’s fate as an AI superpower hangs in the balance.  

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Vodafone kick-starts £430 million share buyback scheme 

News 

The news comes after the successful sale of Vodafone Spain to Zegona Communications for €5 billion 

Vodafone has announced that its share buyback programme has begun.  

Run by Goldman Sachs, the programme will continue until 29 November. The scheme was authorised at the company AGM last week. 

“The sole purpose of the programme is to reduce share capital,” confirmed the company in a London Stock Exchange filing. 

Back in March, the company confirmed that it would return £2 billion to shareholders after the successful sale of Vodafone Spain to Zegona Communications earlier this year. 

The buyback is part of Vodafone’s ongoing restructuring plan, which includes a series of financial strategies aimed at enhancing value for shareholders. Despite these efforts, Vodafone’s shares have seen a nearly 10% decline year-to-date, reflecting a longer-term decrease in value over the past five years. 

The news of the share buyback comes just days after the UK Competition and Markets Authority (CMA) pushed back the investigation deadline into the £15 billion Vodafone–Three merger that was announced last June. The new deadline is now 7 December this year, eight weeks later than expected. In a statement, the regulator explained that it needed additional time to assess the evidence, given the inquiry’s “very wide scope”. 

Keep up to date with the latest international telecoms news by subscribing to the Total Telecom daily newsletter 

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World Broadband Lines Top 1.45bn as UK Full Fibre Grows 7.2% in Q1 2024

The latest research from Point Topic has revealed that global fixed broadband lines grew by 1.22% (17.55 million) in Q1 2024 (down from 1.6% in Q3 2023) to end the quarter on a total of 1.45 billion connections. But the subscriber growth rate of “full fibre” (FTTP/B) networks in the UK jumped to 7.2% (up from 1.5% in Q3).

The largest regional broadband market of East Asia has continued to maintain the lion’s share of net additions of fixed broadband subscribers at 50.20% in Q1 2024, which is mainly due to China’s market size and the more than 10 million fixed broadband subscribers being added there in the quarter. By comparison, the whole of Europe (inc. UK) accounted for 17.99% of net adds in the last quarter.

NOTE: The report only examined the highest full fibre growth rates in the largest fibre markets – those with at least 0.5 million fibre broadband connections.

The data shows that, overall, both cable (hybrid fibre coax) and copper (ADSL, SDSL) based broadband connections continued to lose market share as full fibre lines cannibalised their customers. Between Q4 2023 and Q1 2024, copper-based broadband lines lost -0.25% of their market share, while cable lost -0.20% and even hybrid-fibre (FTTC, G.fast) lost -0.20%, while FTTH/B/P grew by +0.64%

Changes in broadband technology market shares

Technology
Q4 2023 Market Share
Q1 2024 Market Share
Difference

Cable
14.80%
14.60%
-0.20%

Copper
6.02%
5.78%
-0.25%

FTTH/B
69.61%
70.24%
0.64%

FTTx
7.11%
6.91%
-0.20%

Satellite
0.21%
0.21%
0.00%

Wireless
1.87%
1.89%
0.03%

Others
0.37%
0.36%
-0.01%

The good news is that the country-specific quarterly growth of FTTP/B subscribers in Q1 2024 has seen a big improvement for the United Kingdom. Back in late 2021, and through much of 2022, it wasn’t uncommon to see the UK reporting a quarterly growth rate for related subscribers of between 12-13%. But the UK’s growth rate fell to 1.5% in Q3 2023, which is down sharply from 9.2% in Q2 and put us outside the top 10, although in Q1 2024 it has recovered to a respectable 7.2% and is now back in the top ten.

Top 10 Markets by FTTH/B Growth Rates
(countries with at least 0.5m fibre broadband subscribers)

Country
FTTH/B subscriber growth, Q1 2024

Algeria
18.0%

Belgium
14.2%

Dominican Republic
11.4%

Peru
9.5%

Morocco
8.8%

Pakistan
8.5%

Colombia
7.9%

United Kingdom
7.2%

Ireland
6.7%

Italy
6.7%