Interview

At this years’ Huawei Analyst Summit in Shenzhen, China, Total Telecom sat down with Sameer Malik, Senior Principal Analyst at Omdia, to discuss Net5.5G converged IP networks

Now based in Sydney, Malik has over 20 years’ experience in the telecoms industry. He joined Omdia in 2021 after having leadership roles at Huawei and Etisalat. In 2020, he was recognised as Distinguished Technical Talent by the Australian government. 

What is Net5.5G and why is it important? 

Many new applications brought to consumers and businesses by AI and other data hungry technologies will exceed the capacity of current networks.  

“AI is changing the whole world,” says Malik. “But without the readiness of the network, you can’t achieve it.”   

He also notes the current challenges operators face when it comes to service differentiation.  

“For example, we need extended reality (XR) services, cloud shopping, and digital smelling… there are lots of emerging applications.” says Malik. In order to bring these to the consumer, bandwidth needs to be high, scalability needs to be possible, and the service needs to be stable and reliable, and this can only be achieved though network modernisation. 

Unlike wireless networks, however, fixed networks do not have a standardised evolutionary path. Net5.5G, therefore, is conceptualised as the next step in end-to-end modernisation of the IP network. 

What are the features of Net5.5G Converged IP Network? 

There are four key areas in which the Net5.5G network architecture upgrade will focus. 

4 types of 10Gbps connection: The network (mobile broadband, home broadband, enterprise campus, and enterprise private lines) should be upgraded to 10Gbps connections to support new use cases. This can be leveraged to bring the applications to the end user.
Metro and core networks: The Net5.5G converged IP transport network should be upgraded to 400GE from metro aggregation to the core networks. And provide Slicing/SRv6 as a service to monetize user experience.
DCN (data centre network): Net5.5G recommends that the DCN be upgraded to hyper-converged 400GE to achieve optimal total cost of ownership (TCO) and network scale load balance.
End to end network management, to enhance the user experience: The Net5.5G network will be AI-enabled with Network Digital Map span access, allowing it to be more predictive in operations and maintenance, and proactively handling all traffic and services.

Thus, for the Key Features of Net5.5G Converged IP Network:  

E2E 400GE Full-Service Converged IP Transport, achieving optimal TCO 
Slicing/SRv6 as a service, monetizing user experience 
Network Digital Map, improving network stability, quality, and O&M efficiency

What enhancements can AI bring to the network? 

From a network perspective, AI has the possibility to bring huge impact, when the models are trained properly. 

Malik discusses this from the “operation and maintenance perspective”, giving the example of end-to-end digital mapping. Here, this can be used to “visualise your services to be more predictive in your operation and maintenance and then proactively handle all the traffic and services. For example, if customers are having a service deterioration in the network, AI can predict based on the real-time learning … and troubleshoot the services proactively.” 

Are the features of the Net5.5G converged IP network in line with the existing strategies for carriers? 

For Malik, a major issue with operators’ existing approach to the fixed network is that modernisation is often carried out piecemeal, without a unified strategy.  

“I think service providers or carriers need to formalise their strategy for their fixed network modernisation,” said Malik, noting that the whole network needs to be modernised, from the access metro core to the DCN. 

“The unfortunate part is that they only modernise whenever they need it,” he explained, which “can cost them big amounts of money”. 

So, it’s unwise to modernise the network in parts. The network must be ready to “cater to the new services” that the developments in AI will bring. It needs to be fully “resilient, scalable and flexible,” says Malik. “So, for service providers, my suggestion is to strategize their fixed network modernisation, step by step,” he proposes. 

Malik envisions a unified evolutionary pathway more in-line with the generational shifts that exist in wireless, with 4G moving to LTE moving to 5G/5G-A, etc. To achieve this, however, the industry will need to collaborate more closely on what the next generation of fixed networks will look like.   

“This isn’t the job of one service provider,” says Malik. The whole industry needs to “sit together and work in association… they have to work strategically to strategize the evolution path for the fixed network.” 

What new opportunities will Net5.5G Converged IP Network will bring to carriers and how can they use those new opportunities to create growth? 

Underscoring all of this discussion about network modernisation is the topic of monetisation. The bottom line, as Malik explains, is that “there’s no point in modernising your network if you don’t have any return on investments”. 

However, once the network is modernised, monetizing it will become much more possible.  

The word monetisation is thrown around so much, but it is at the centre of everything. Malik gives the example of network slicing: “facing BtoB service, carriers sell the physical network in different virtual slices, to hundreds of vertical industries. From that perspective, if your network is good… resilient and strong” it is possible to monetize the network. Therefore, this is “a good return on investment on the network modernisation”. 

For an industry struggling with network monetisation, upgrading to Net5.5G will offer countless possibilities for new use cases and revenue streams, making it a key step on operators’ return to growth. 

Huawei recently hosted the IP GALA Summit with the theme “Bring Net5.5G into Reality, Inspire New Growth” during the MPLS SD & AI Net World Congress 2024., where many operators shared their experiences of Net5.5G. Read more here. 

News

TPG had initially agreed a similar deal with Telstra, but this was quashed by the competition regulator

This week, Australian telcos TPG Telecom and Optus have announced a new agreement that will see them create a regional Multi-Operator Core Network (MOCN), extending TPG’s 4G and 5G networks.

The network sharing agreement will see TPG make use of Optus’ mobile sites across the country, increasing the company’s total number of available sites from 755 to 2,444. This, according to TPG, will more than double the company’s existing 4G network coverage.

TPG will also gain access to additional 5G sites deployed by Optus in future.

Optus, meanwhile, will gain access to some additional spectrum from TPG, bolstering their wireless network’s performance.

The deal is valid for 11 years, with an option to increase this by a further five years if desired. TPG says it expects to pay Optus roughly AUD $1.17 billion (USD $770 million) during this 11-year period.

“TPG Telecom expects this significant increase in the size and performance of its mobile network will enable it to accelerate mobile subscriber growth over time as a result of reduced churn and increased addressable market,” said the operator in a financial filing.

TPG initially agreed to a similar network sharing deal with Telstra back in 2022, with the move set to see TPG gain access to around 3,700 of Telstra’s mobile sites, while Telstra would gain access to TPG’s 4G and 5G spectrum.

However, the Australian Competition and Consumer Commission (ACCC) ultimately blocked the deal a year later, arguing that the move would harm competition. In particular, the regulator said the deal would disincentivise the companies’ rival Optus from investing in rural areas.

At the time, Optus had argued that they were the better potential network sharing partner for TPG, saying this pairing would better maintain market competition.

TPG, however, were indignant at the proposal, saying that “Optus wishes to use the authorisation process to remove Telstra as a competitor in relation to network sharing and leave it free to impose a less attractive, alternative transaction”.

Now, with the Telstra deal firmly off the table, it seems that TPG has gradually mellowed to the idea of a partnership with Optus.

Optus themselves say that the deal has been constructed specifically to address the concerns of regulators.

“There are some similarities between the transaction but there are some differences as well. And we believe that these differences are significant enough that the ACCC will not have a problem with this,” Optus’s interim CEO, Michael Venter told Guardian Australia.

He noted that giving Optus access to additional spectrum from TPG would not be as impactful to competition as giving it to existing market leader Telstra.

“We are confident that although we get access to the same level of spectrum, the starting position is very different in that Optus is not the dominant player in that region yet,” explained Venter.

The sharing agreement will come into effect in early 2025, assuming regulatory approval.

Keep up to date with all the latest developments from the global telecoms industry with Total Telecom’s daily newsletter

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Korean Air shows off comprehensive urban air mobility system backed by 5G
Virgin Media O2 reaches plastic waste milestone

News

The fines were first proposed in February 2020 

This week, the US Federal Communications Commission (FCC) has fined major US wireless carriers, including AT&T, Sprint (since acquired by T-Mobile), T-Mobile, and Verizon nearly $200 million for illegally sharing customer location information to third parties without their consent.  

According to the FCC, the carriers sold access to their customers’ location information to ‘aggregators’, who then resold the access to this information to third-party location-based service providers. 

This allowed “highly sensitive data to wind up in the hands of bail-bond companies, bounty hunters, and other shady actors,” said FCC Chairwoman Jessica Rosenworcel in a statement. 

Under the Communications Act of 1934, carriers are required to take “reasonable measures” to protect certain customer information, which includes location information. 

“Our communications providers have access to some of the most sensitive information about us. These carriers failed to protect the information entrusted to them. Here, we are talking about some of the most sensitive data in their possession: customers’ real-time location information, revealing where they go and who they are,” said Rosenworcel in a separate press release. 

Specifically, the FCC fined T-Mobile $80 million, Sprint $12 million, AT&T $57 million, and Verizon $47 million.  

Although the FCC’s fines are significant, they represent just a tiny fraction of the operator’s annual revenues. Verizon’s $47 million fine, for example, is less than 1% of its total 2023 revenue, which was nearly $77 billion.  

T-Mobile, AT&T, and Verizon have stated that they strongly oppose the FCC’s findings, and all three companies intend to appeal the decision. 

 “[The FCC’s] decision is wrong, and the fine is excessive,” said T-Mobile in a statement. “We intend to challenge it.” 

AT&T similarly claimed that the fines lacked “both legal and factual merit”. 

“It unfairly holds us responsible for another company’s violation of our contractual requirements to obtain consent, ignores the immediate steps we took to address that company’s failures, and perversely punishes us for supporting life-saving location services.” 

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

Also in the news:
South Korea to invest $7 billion in AI semiconductors
Swisscom expands 5G partnership with Ericsson
Daisy Group set to acquire 4Com for £215m

Broadband ISP Quickline, which is building a new gigabit-capable full fibre (FTTP) and fixed wireless (5G FWA) network across rural and semi-rural parts of North East England, has revealed that their service has now gone live for thousands of premises in villages across the Isle of Axholme area in North Lincolnshire (England).

The full fibre network went live in the village of Westwoodside in January 2024, following the lighting up of Belton at the end of 2023. Meanwhile, work is now complete to bring full fibre broadband to further addresses across the Isle of Axholme, with the network being extended into communities including Beltoft, West Butterwick, Althorpe and Derrythorpe who can now get connected. More than 2,500 properties in these areas are now able to connect.

And, as part of the government funded Project Gigabit contract recently awarded to Quickline, communities including Crowle, East Lound, Graizelound, Owston Ferry and Wroot are also set to be connected to gigabit-capable, full fibre over the next few months and years.

Residential customers reached by their new full fibre network are typically charged from £29 per month on a 24-month term for 100Mbps (50Mbps upload) speeds with free installation, and that goes up to £49 for their top 900Mbps (450Mbps upload) tier. The first 3 months of service are also free.

Chris Akrill, Head of FTTP Operations at Quickline, said:

“Rural communities have been struggling with poor connectivity for a long time, with slow and unreliable broadband being a daily challenge.

At Quickline our focus is on closing the digital divide between urban and rural areas and connecting those hard-to-reach communities that other providers have left behind.

We’re delighted to be lighting up these communities across the Isle of Axholme where so many people living and working in these small hamlets and villages will really benefit.

We had already made good progress in this rural part of North Lincolnshire and now that we are delivering Project Gigabit for the government, we will be extending our network into many of the other outlying communities in the area.”

Quickline itself is currently being supported by funding of around £500m from Northleaf Capital Partners and c.£104m of public subsidy from Project Gigabit (here and here). The provider holds an aspiration to cove around 500,000 premises in rural and semi-rural areas across North East England with “ultrafast broadband” via both their Fibre-to-the-Premises (FTTP) and 5G based fixed wireless technology “by 2025” (here). Some 200,000 of those rural premises will be tackled by their wireless network, with the other half or more coming from FTTP.

Mobile operator and ISP Vodafone UK has today announced the launch of both a new ‘Power Hub‘ router for their home broadband packages and a complementary new ‘Super Wi-Fi 6 Booster‘ device to help improve home wireless connectivity. New customers, joining from today, on any standard plan will receive the Power Hub router.

At the time of writing, we don’t yet have any details on the technical specifications of each device, which makes it very difficult to say what sort of improvements they bring over the existing kit (customers on Vodafone’s premium Pro II plans already get WiFi 6E capable kit, such as via their ‘Ultra Hub‘ router).

The Power Hub router is instead merely described as being “built for Full Fibre, giving speeds of up to 910Mbps and is designed to work with the latest tech“. The WiFi 6 capable router can also connect “up to 100 smart devices and offers intelligent WiFi auto-optimisation,” although most such routers could lay claim to a similar statement. But that’s all the detail they give (we’ve asked for more).

As for the new Super WiFi 6 Booster, this is designed to work with Vodafone’s new Power Hub and to deliver “reliable coverage around the whole home” using mesh technology for “wall to wall WiFi.” Customers will also receive dedicated ‘WiFi Xpert’ support, who will help to “monitor and fix any issues“. But in the “unlikely event they don’t get reliable WiFi coverage across every corner of the home, Vodafone’s Whole Home WiFi Guarantee lets them leave, for free.” But again, that’s all they say.

The enhanced kit helps to underpin Vodafone’s “new” standard broadband packages, which start from £26 per month, plus an additional £7 if you want to add their Super WiFi 6 Booster.

Breaking news.. more to follow..

Network operator and ISP Brsk, which is deploying a new gigabit speed Fibre-to-the-Premises (FTTP) broadband network across the West Midlands and North West of England (rollout plan), has revealed that they’ve now passed a key milestone by expanding to cover half a million homes (up from 450,000 on 2nd March 2024).

The operator – fuelled by an investment of at least £259m – is currently building out its new network across parts of West Yorkshire, Lancashire, Greater Manchester, Cheshire, and the West Midlands – Birmingham and The Black Country, to be specific. Some 28,000 customers (1st Mar 2024) already use the service.

According to today’s announcement, the operator is now adding over 30,000 new homes to their network coverage on a monthly basis, which is roughly in line with their existing trends. But at the time of writing, we don’t yet know how many of their built premises are Ready for Service (RFS), although the gap between built and RFS is usually only c.10-20k (typically reflecting wayleave delays in secured MDU coverage).

Residential prices start at £23 per month for a 100Mbps (symmetric) package and rise to £32 for 900Mbps on a 24-month term, including a router and free installation.

Ian Kock, Brsk’s Chief Operating Officer, said:

“We are extremely proud of what our team has achieved in such a short period of time. Our focus has been on reaching scale and building a high-quality network as efficiently as possible. Our build engine is producing 30k plus homes per month across four regions, and we are well on our way to achieving our ambition of providing better broadband to one million homes.”

The news represents more positive progress for Brsk, particularly as it occurs during a period where many other alternative networks are having to scale-back their deployments and cut jobs, largely due to rising build costs and high interest rates that make raising new investment difficult. At the same time the operator has recently been linked to a possible merger with Netomnia, which are also partly backed by Advencap (here).

Despite the rumours, brsk said they remain focused on connecting underserved towns and villages in the West Midlands and North West of the UK, across Bradford, Calderdale, Lancashire, Greater Manchester, Cheshire, Staffordshire, Merseyside, The Black Country and Birmingham, with “further areas to be announced later this year.”

UPDATE 8:55am

The RFS figure is 486,184.

Major broadcasters including the BBC, ITV, Channel 4 and Channel 5 will this morning come together to launch their new stream service called Freely, which has been in development for a while now and is designed to be an evolution of the existing broadband internet based Freeview (inc. Freeview Play and Freesat) TV service.

Freeview Play is today a rather dated platform and one that remains centred around on-demand content, while Freely viewers will be able to easily browse and watch live UK TV channels together with on-demand content streamed straight to their smart TV via the internet (IPTV) – without the need for an aerial connection or new set-top-box (depending upon device support).

Freely will not be replacing the Freeview and Freesat platforms and should, at least for now, be seen as more of a complement – a different kind of service that helps to make broadcast TV more accessible. The change is important because the age of traditional TV signals, which came via the airwaves, is expected to gradually come to an end as gigabit-capable broadband nears almost universal UK coverage by 2030 (currently c.82%).

In fact, Everyone TV claims some 15% (around 4 million) of UK TV homes are already considered to be IP-only (broadband-only), fuelled in part by commercial streaming services like Netflix, Sky Glass, Amazon Prime and so forth – this figure is then forecast to reach more than half of UK homes by 2030 (c.15m). Put another way, Freely is about trying to “futureproof live TV for the streaming age“.

The launch of this service today means that it will be available through the “next generation of smart TVs now on sale in stores and online“, such as from manufacturers like Hisense and stores like Currys, Argos, AO and Very. In addition, TiVo (Xperi Inc.) will be offering Freely as part of its TiVo OS platform, starting with Vestel’s TiVo powered smart TVs (this is due to launch in the “coming weeks“).

Manufacturers make the TV hardware, whereas the TV OS partner run the software platform on the TV. Freely is partnering with both manufacturers and OS providers.

Kieran Clifton, Director, BBC Distribution & Business Development, said:

“The launch of Freely is a historic moment for UK television. Collaboration between the UK PSBs is critical to connecting and protecting all audiences as we transition towards the streaming era – and delivering live TV over broadband for free is a ground-breaking innovation that will futureproof public service broadcasting.”

Martin Goswami, ITV Group Strategic Partnerships Director, said:

“The success and impact of programmes like ITV’s Mr Bates vs the Post Office shows the importance of UK PSBs and ITV is proud to be part of this exciting new chapter for free TV in this country with Freely. Bringing live streamed channels and on demand content together in Freely gives viewers the opportunity to access the very best in British content as easily as possible, from live and recent programmes to a wealth of on-demand options.”

The first iterations of Freely may now be present in the UK market, although it still needs further development and to secure additional smart TV, operating system and content partners in order to be successful (some will follow over the next few weeks). Homes connected via IP-only and those using a hybrid IP and DTT (digital terrestrial TV) connection may also initially “experience varying channel offerings” as Freely continues to develop.

Freely’s technical specification claims to support the “latest technical video and audio coding technologies“. The combination of these newer standards with IP distribution should allow the efficient delivery of many more HD versions of the UK’s most popular channels than are currently available on existing (bandwidth constrained) broadcast platforms. But while Freely provides the option of distributing these at HD or UHD (4K) resolutions, the choice of video format is ultimately made by channel operators.

The new platform is due to receive additional features and software updates as it develops, which will also take place over the coming weeks, months and years.

News 

The deal has been pending regulatory approval since January last year 

The Federal Communications Commission FCC confirmed last week that it has approved T-Mobile to purchase buy Ka’ena Corp, the owner of Mint Mobile, for up to $1.35 billion. The deal will also cover the acquisition of other companies under the Ka’ena Corp umbrella, including Ultra Mobile and wholesaler Plum. 

According to a press release published last year after the deal was agreed, T-Mobile stated that it will pay up to $1.35 billion in a combination of 39% cash and 61% stock for Ka’ena Corp.  

The company was founded in 2015 as a subsidiary of US-based mobile virtual network operator Ultra Mobile.  

After moderate success, the popularity of Mint Mobile skyrocketed in 2019 following actor Ryan Reynolds acquiring a 20–25% stake of the firm and subsequently starring in all related advertising. 

In January last year, it was reported that T-Mobile had entered to acquire Mint Mobile, with the purchase seemingly made simpler due to the fact that Ultra and Mint customers already receive services over T-Mobile’s 4G and 5G networks. 

“I know they’re going to fit in because they are hyper-focused on offering customers compelling products at a great value,” said Mike Sievert, CEO of T-Mobile in an earnings call last week. 

“We’ll work to further fuel their success while also learning from their team who are absolute rock stars in the direct-to-consumer and value segments,” he continued. 

T-Mobile confirmed that after receiving regulatory approval, the deal is expected to close on May 1.

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

Also in the news:
South Korea to invest $7 billion in AI semiconductors
Swisscom expands 5G partnership with Ericsson
Daisy Group set to acquire 4Com for £215m

Insight

by Lutz Schüler, CEO of Virgin Media O2

What will the world look like in 100 years’ time? Experts suggest connected flying autonomous vehicles could be here within a decade or so; unlimited green energy in 20 to 30 years; and many of us will implant technology into our bodies to make our brains work faster.

While none of us knows precisely what the future holds, when we look back, it’s clear that the telecoms sector has supported and enabled almost every major technological shift of the past century.

This month, our shareholder, Telefonica, marks a monumental milestone as it celebrates 100 years in business. I doubt its founders saw themselves as transformational pioneers helping build today’s fully connected world. Yet today, their legacy is clear – especially in the UK where the company has invested billions of pounds and created thousands of jobs since acquiring O2 in 2005. A century of innovation and progress means that wherever you are on the planet, it’s possible to see and speak with someone else in real time, at very little cost. These pioneers, and those that have followed, helped to shrink the world and bring us all closer together.

From its origins acquiring the small regional startup telephone ‘concessionaries’ that lacked the scale needed to deliver a national network, to becoming a global business spanning more than 20 countries, Telefonica has long been shaping the world in which we live. With telecoms underpinning so much of modern life, it’s almost impossible to imagine a world without mobile and broadband services.

While the sector has changed immeasurably from the early days of bringing together local telephone networks, the constant change and growing demand for telecoms services is as true today as it was 100 years ago. Over the past decade, we’ve seen an explosion in data usage, as consumers spend more of their lives online and businesses engage fully in the digital economy. In the UK, average monthly mobile data use has trebled in the last five years and today we’re a world leader in terms of fixed data consumption per capita, with monthly usage leaping almost three-fold.

This is only possible thanks to a continuous stream of investment to upgrade and deliver new services. In the UK alone, the industry is investing over £5bn a year in mobile and fixed networks. This investment has delivered fantastic outcomes for consumers, with average fixed broadband download speeds increasing 72% since 2017, while the price per Mbps has fallen 39% over the same period. On the mobile side, our 5G network now reaches over half of the UK population and we recently switched on our latest 5G Standalone network in cities across the UK.

Yet, the journey is far from over. As we and our shareholders look to the future, we are committed to pushing the boundaries of innovation further still. Exciting developments such as hyper-connectivity, artificial intelligence and the metaverse will be underpinned by the strong communications networks which we’ve pledged £10 billion to upgrade.

In today’s digital world, it is vital that everybody can benefit from mobile and broadband services. It’s why we’re ensuring our services are available to all – whether through offering cut-price social tariffs; providing free mobile data to those in need through the National Databank; giving free devices to the digitally disconnected through our Community Calling programme; or simply expanding our network to bring reliable connectivity to some of the most rural and remote locations in the country including through the Shared Rural Network programme.

This vital work is helping to close the digital divide and ensure that everybody can access great services, no matter where they are or whatever their situation.

Running in parallel is our commitment to building a network that’s better for the planet. Through our Better Connections Plan, we’re working to reducing carbon emissions by achieve net zero by 2040, and also achieving zero waste operations and products by 2025 by enabling consumers to make 10 million circular actions.

While much has changed over the last century, at our core we still exist to bring people together. And with a commitment to continue investing, innovating and transforming, whatever the future holds, we’re working to create a better world for people and planet for the next 100 years and beyond.

News

The investment, which is the largest of its kind in the state’s history, is expected to generate at least 1,000 new jobs

Amazon Web Services (AWS) revealed plans for an $11 billion investment in Indiana data centres.  

Amazon already has a significant presence in Indiana, where it currently employs 26,000 staff members and has invested $21.5 billion since 2010. 

In collaboration with Governor Eric Holcomb and the Indiana Economic Development Corporation, AWS will build new data centers in St. Joseph County, the specific details of which were not revealed.  

Additionally, AWS has pledged up to $7 million to support infrastructure improvements for the local community.  

Roger Wehner, AWS’s director of economic development, said that the investment will “tap into the state’s burgeoning tech sector, while contributing significantly to the state’s growing economy.” 

“This investment will include our continuing commitment to fostering workforce development and educational initiatives in areas where we operate,” he continued. 

AWS’s investment also includes the establishment of the AWS InCommunities St. Joseph County Community Fund, which will support various community initiatives with an initial contribution of $100,000. 

Amazon’s cloud computing arm is heavily investing in its home market in order to strongly compete in the AI and data centre field. In January, the company announced a $10 billion investment in a Mississippi data centre development, which is expected to be operational by 2027. 

In January last year, the company also announced a $35 billion data centre investment in Virgina by 2040, making it the largest capital investment by any company in the state’s history. Arlington, Virginia, is set to become company’s second headquarters, known as HQ2, eventually employing 25,000 people. 

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

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