News

The deal includes the supply of both 4G and 5G network equipment over the next three years

This week, Vodafone Idea has concluded a $3.6 billion telecoms equipment deal with Ericsson, Nokia, and Samsung.

The deal will see the trio of vendors provide Idea with equipment over the next three years. Idea will use this equipment to expand its 4G population coverage from 1.03 billion to 1.2 billion, as well as launching 5G in selected markets and expanding existing capacity.

Idea says this will not only allow the company to offer more advanced mobile services to a wider audience, but will also improve the network’s power efficiency, thereby delivering cost savings.

The deal is notably the first time Idea has worked with Samsung for networking equipment. Ericsson and Nokia, on the other hand, are both long-term partners with Idea; in fact, earlier this year, Idea issued $294.2 million in shares to the two companies in order to settle existing debts with them. This gave Nokia and Ericsson 1.5% and 0.9% stakes in Idea, respectively.

“We have kickstarted the investment cycle. We are on our journey of VIL 2.0 and from hereon, VIL will stage a smart turnaround to effectively participate in the industry growth opportunities,” said Vodafone Idea CEO Akshaya Moondra. “Nokia and Ericsson have been our partners since our inception and this marks another milestone in that continuing partnership. We are pleased to start our new partnership with Samsung. We look forward to work closely with all our partners as we move into the 5G era.”

The deal is funded via the $4.4 billion Idea raised in April and May via equity financing.

Vodafone Idea has been struggling to compete in the Indian market and has teetered on the edge of bankruptcy for years. Despite managing to raise funds earlier this year, the company continues to bleed subscribers to its rivals Reliance Jio and Bharti Airtel.

The company is notably behind rivals when it comes to the rollout of 4G and, unlike Airtel and Jio, has yet to commercially launch 5G at scale.

To make matters worse, Idea is drowning under the weight of billions of dollars it owes the government a part of Adjusted Gross Revenue (AGR) payments from 2019. Last week, the Indian Supreme Court rejected appeals to recalculate the AGR dues, news which sent Idea’s share price plummeting by 15%.

Vodafone Idea is currently attempting to raise yet more cash, both to meet its debt obligations and to upgrade its infrastructure in an effort to become competitive.

Keep up to date with all of the latest telecoms news with Total Telecom’s daily newsletter

Also in the news:
Meta resumes use of UK user posts to train its AI models
Verizon’s 4,800 job cuts will cost over $1.9 billion
CMA questions Vodafone–Three merger after second probe

Viewpoint

[Singapore, September 17, 2024] At the FutureNet Asia 2024 Summit in Singapore, the General Manager of Huawei ADN Solution, Sam Wang, delivered a keynote speech titled “AI for Network, Ushering in L4 New Era.”

Sam Wang, General Manager of Huawei ADN Solution delivers the keynote speech

As communications service providers (CSPs) worldwide strive towards network automation, Autonomous Networks (AN) have become an industry consensus. The AN Level 4 industry blueprint, released jointly by TM Forum and industry partners at the Digital Transformation World summit in June, provides systematic guidance for Level 4 implementation. Advancements in emerging technologies like generative AI (GenAI) have also accelerated the development of AN Level 4.

Sam identified three key factors for implementing AN Level 4.

Technology breakthroughs: Breakthroughs in GenAI technology have enabled the development of telecom foundation models that address long-standing O&M challenges faced by CSPs. These models allow for the creation of role-based copilots and scenario-based agents, creating an innovative human-machine collaboration paradigm and solving issues such as over-reliance on expertise, time-consuming system integration, and mandatory manual decision-making.
Clear goals: Value-driven goals are crucial to achieving AN Level 4. High-value scenarios must be selected to build up key capabilities of AN L4, and the Level 4 target state must be defined to help CSPs improve O&M efficiency and business revenues. TM Forum’s AN Level 4 industry blueprint offers 15 high-value scenarios focused on maintenance, optimization, and operations.
Hierarchical collaboration: In-depth collaboration among all industry partners is vital. Employing value-driven approaches and principles of single-domain autonomy and cross-domain collaboration can facilitate the commercial use of AN Level 4 by multi-layer and multi-domain.

During the presentation, Sam also showcased Huawei’s autonomous driving network (ADN) solution panorama and highlighted the use of the telecom foundation model to support network O&M, experience assurance, and service enablement. Additionally, he said that Huawei are developing five role-based Mate series copilots and five scenario-based Spirit series agents to enhance O&M efficiency and customer experience for CSPs. For instance, when complex cross-domain faults occur, wireless, IP, and core networks can use the Mate copilots and single-domain Spirit agents for single-domain closed-loop of fault handling. The OSS can then demarcate the cross-domain faults, dispatch trouble tickets, and provide instructions for fault repair. This approach enables field engineers to resolve faults in a single site visit, reducing trouble tickets by 30% and improving operation efficiency by 80%.

As network AI enables a new era of AN Level 4 across the entire industry, Sam called for industry partners to launch scenario-specific, innovative Level 4 practices actively to enhance business value and evolve toward an intelligent world.

News 

“AI’s potential to drive economic growth and scientific progress is enormous, but Europe’s fragmented decision-making is putting it at risk of being left behind,” reads the open letter published in the Financial Times 

A coalition of major tech companies, researchers, and institutions has issued an open letter calling on European regulators to provide clear, consistent rules for AI development to ensure the EU remains competitive in the global race for AI supremacy. 

The letter, signed by CEOs and leaders from companies such as Meta, Spotify, and Ericsson, warns that fragmented and unpredictable regulation is stifling Europe’s innovation in AI, leaving it trailing behind global leaders like the US, China, and India.  

“The reality is Europe has become less competitive and less innovative compared to other regions,” reads the letter, which argues the situation will only get worse without AI regulation reform. 

The letter argues that without consistent regulation, the EU will “miss out” on AI and its advancements, such as in the development of open-source AI models, which integrate text, images, and speech. According to the letter, these technologies have the potential to modernise industries, increase productivity, and contribute hundreds of billions of euros to the European economy. Generative AI, for example, “could increase global GDP by 10% over the coming decade.” 

“Public institutions and researchers are already using these models to speed up medical research and preserve languages, while businesses gain access to tools they could never afford to build themselves,” the letter says.  

Europe is infamous for its tough regulatory landscape that places a strong emphasis on the privacy of consumer data.  GDPR (General Data Protection Regulation) imposes strict conditions on the collection, processing, and sharing of personal data – data which represents an invaluable training tool for nascent AI models.  

Other countries, on the other hand, do not have such comprehensive laws, allowing AI companies to more freely use customer data to train their AI models. The US for example, does not have a single, comprehensive federal law governing data privacy.  

Although GDPR has been a landmark in protecting user privacy, the signatories argue that its current governance means there is a lack of certainty what data can be used legally. This, in turn, is making it difficult for companies to invest in European AI, making the continent fall behind even more. 

Keep up to date with all of the latest telecoms news with Total Telecom’s daily newsletter 

Also in the news:
Meta resumes use of UK user posts to train its AI models
Verizon’s 4,800 job cuts will cost over $1.9 billion
CMA questions Vodafone–Three merger after second probe

Telecoms and broadband giant BT, which is already in the process of recruiting another 500 UK apprentices and graduates for 2024 (here), has today committed £4m to support a new Apprenticeship Fund that is designed to support SMEs, charities and public sector organisations across England by providing access to funding over an initial 4-year period.

Since 2017, companies with an annual wage bill of more than £3m have been required to pay the “apprenticeship levy“, using the funds to recruit and train apprentices. But as part of this, they can also choose to transfer up to 50% of their levy to help support other companies. The BT Group has thus partnered with Babington, one of the UK’s largest apprenticeship training providers, to transfer up to £4m from its apprenticeship levy.

The new Fund is said to have the ability to scale up depending on take up and could support up to 550 apprentices (focusing on apprentices aged 22 and older). Babington’s role will then be to match businesses with appropriate training providers and guide them through the application process. Successful applicants will be provided with access to funded apprenticeship training within 20 days, subject to meeting funding criteria.

Chris Sims, BT’s MD for Small and Medium Business, said:

“SMEs make a significant contribution to our economy, but their uptake of apprenticeships is low. By sharing up to £4 million from our apprenticeship levy funds, we’re giving these businesses the financial support they need to invest in talent. This not only helps create a more skilled, diverse, and competitive workforce, it also provides SMEs with additional resources to grow and scale their business. The apprenticeship programme at BT has not only shaped our workforce, it has also helped set industry standards.”

Interview

At Connected Britain 2024, we spoke with Openreach’s chief commercial officer, Katie Milligan, to discuss the company’s latest Project Gigabit contracts, sustainability progress, and how Sky’s new deal with CityFibre will affect competition in the retail market.

Check out the full interview below:

The business division of mobile network operator O2 (Virgin Media) has today confirmed that, as part of their plan to switch-off 2G and 3G services across the United Kingdom, they’ll also be withdrawing inbound roaming services on both of those older mobile networks from 1st October 2025.

Just to recap. Last year saw VMO2 become the final operator to reveal their plan for switching off their 3G mobile (mobile broadband) network (here), which will begin in 2025 and the withdrawal will then occur in phases, with completion by the end of that same year. O2 recently followed that by announcing that they’d also start shifting almost all remaining traffic and customers off their oldest 2G network in 2025 too (here), but they won’t be turning it off completely for “several years” because it’s still necessary for some vital services (e.g. Smart Meters – home energy tracking).

Both moves support an earlier agreement between the UK government and all major mobile operators, which jointly aim to phase-out existing 2G and 3G signals by 2033 (here). This will free up radio spectrum so it can be used to further improve the network coverage and mobile broadband speeds of more modern 4G and 5G networks, as well as future 6G services. The switch-off will also reduce the operators’ costs and power consumption.

The latest update today is that, as part of these changes, O2 have confirmed they will be withdrawing inbound roaming services from their 2G and 3G networks on 1st October 2025. This typically reflects the service that allows subscribers from other operators to access O2’s local network and services.

Jo Bertram, Managing Director of VMO2 Business, said:

“In July, we contacted all our business customers, from small enterprises to wholesale partners, to make them aware of these plans and told them that they will need to upgrade any 2G and 3G only devices, so they can maintain seamless connectivity. We’ve also made our international roaming partners aware and instructed them to work with their customers to avoid disruption.

We know some organisations purchase connectivity solutions from other providers, including SIMs from overseas operators which roam on our network. Businesses should contact their connectivity provider to ensure any machines and applications that may use roaming to connect to our network, even occasionally, are upgraded to 4G / 5G or to find alternate ways to connect before October 2025.

Many organisations won’t need to do anything, or notice any change since their devices are already compatible with the 4G and 5G networks. To check if a device is compatible with 4G/5G and 4G Calling, also called VoLTE, we’ve published a list here under the ’Check your device’ section. There are also instructions on how to enable this function on devices.

With other operators also switching off older networks, we recommend that all businesses – whether they’re our customers or not – undertake an audit of their device estate to determine if they have any 2G or 3G only devices that need to be upgraded or are using any SIMs that could be roaming on our network. Your connectivity provider should be able to tell you this.”

The change shouldn’t come as too much of a surprise, given the operator’s prior announcements, but it does set a clear timeline for a key change within the process, and that should help with planning. But there’s always a risk that, in some limited areas and circumstances, this could contribute to localised problems with securing basic mobile / voice coverage.

Mobile operator and broadband ISP Sure has successfully managed to improve the 4G and 5G signal across the north of Guernsey (English Channel Island) by hiding a new mast in plain sight, which was achieved by deploying the new infrastructure in a marina and making it look like a tall white yacht mast.

Trying to hide or disguise large mobile masts is rarely an easy task. Over the years we’ve seen various attempts at concealment, some of which work better than others (e.g. painting them to blend in with the landscape or making their structure look like weird trees).

However, we think the latest approach on the island of Guernsey, which is a self-governing British Crown dependency, deserves a particular mention. According to the Bailiwick Express (see for picture), engineers working for Sure were able to construct and deploy a mobile mast that more closely resembles a white yacht mast, which was then erected in the middle of Beaucette Marina.

Once the planned bunting (flags) have been added to the top, then it will probably become even harder to identify it as a mobile mast without a second glance.

Adi Byrne, Mobile Engineer at Sure, said:

“In today’s digital age, reliable network coverage is crucial for everything from staying connected with loved ones to conducting business efficiently. We have ensured that St Sampson and the Vale have enhanced mobile network coverage. We are committed to not only improving Guernsey’s connectivity, but also respecting the island’s natural beauty.”

The Welsh Government has today issued a progress update on their Local Broadband Fund (LBF), which was launched in 2020 and has so far allocated £12m – across four funding phases – to help local authorities and social enterprises to deliver faster broadband networks to areas and sites that need it (i.e. those unable to access speeds of 30Mbps+ today).

For example, three adult residential care homes in Newport, including Parklands Care Home, now have gigabit-capable full-fibre broadband for the first time as a result of the LBF. Meanwhile, in the Vale of Glamorgan, high-speed local broadband of up to 100Mbps is now available at popular sites like the Cosmeston Lakes Country Park and the Glamorgan Heritage Coast.

Additionally, 17 public sector sites in North Wales – including rural libraries and community councils – now have Fibre-to-the-Premises (FTTP) connections with active download speeds of at least 80Mbps and up to gigabit territory.

In Cardiff, an early phase of 83 premises are now connected with gigabit capable speeds. The next phase is underway and working to deliver similar connectivity to a further 632 premises. This project also provides “free for life” gigabit-capable broadband to 15 community centres spaces, supporting local initiatives and educational programmes.

Rebecca Evans, Cabinet Secretary for the Economy, said:

“Fast and reliable broadband is essential for our communities and businesses. The Local Broadband Fund has already made a real difference, delivering tangible improvements to businesses, public services, and communities across Wales. By expanding digital access, we’re helping to create new opportunities for economic growth, employment, and education, as well as enhancing the quality of life for residents.”

The broadband expansion is ongoing and several projects are set to complete by March 2025 in Monmouthshire, Neath Port Talbot, Carmarthenshire, and Powys. But curiously, the announcement doesn’t mention earlier builds that have also been supported by investment from the LBF, such as extending the existing community FTTP build in Michaelston y Fedw (here) etc.

The Scottish Government has finally caught up with similar legislation in England (here and here), which was introduced at the end of 2022, by effectively mandating that property developers must ensure their new build homes are constructed with support for gigabit-capable broadband connections. This will become effective from 1st January 2025.

At present every new building and building unit in Scotland must already be designed and constructed in such a way that a “high-speed ready” (30Mbps+) in-building physical infrastructure, up to a network termination point, is provided. In the case of a building which contains more than one building unit, a common access point for high-speed electronic communications networks must be provided.

The new rules go further than that by amending Scotland’s existing Building Regulations to ensure that all new build homes are equipped with gigabit-capable (1Gbps+) infrastructure from the outset, with a connection available subject to a cost cap (£2,000). Failing that, the developer would need to install the “next fastest broadband connection” possible, also within the same cost cap.

However, in cases where a connection cannot be provided within the cost cap (e.g. in some remote rural areas or individual private house builds, where it might not be economically viable), there will be a requirement to install the passive infrastructure (e.g. cable ducts) required to facilitate a connection at a later date (i.e. much the same as the pre-existing policy).

Richard Lochhead, Business Minister, said:

“Connectivity is no longer a luxury, but an essential part of everyday life enabling remote working, access to public services, education, and health.

That’s why the Scottish Government is using its powers to reduce the barriers to accessing faster broadband so Scotland’s people and businesses can make the most of the opportunities connectivity brings.”

The reality here is that the vast majority of new build homes – both in Scotland and across the UK (about 98% were getting FTTP when last we checked) – are already being constructed with support for gigabit-capable broadband and so, in that sense, the new legislation isn’t likely to have a massive impact. But better late than never.

Naturally, changes like this will help to support the wider £5bn Project Gigabit programme, which is aiming to help extend gigabit coverage to at least 85% of UK premises by 2025 and then around 99% “nationwide” by 2030. Most of the build is being done by commercial operators, with projects like this and Scotland’s £600m R100 scheme focusing on the hardest to reach final 10-20% of premises (primarily rural areas).

Interview

Is the new Labour government’s approach to digital infrastructure going to be effective?

In this Connected Britain interview, Simon Miller, Director of Public and Regional Affairs at Virgin Media O2, describes the “encouraging” discussions with government so far and how the UK’s digital infrastructure landscape is shifting in 2024.

Check out the full interview from the link below: