VIEWPOINT

Fibre prices are increasing and this may be partly due to demand and partly due to a rise in energy costs. Optical fibre networks consume less energy than copper-based broadband networks. That’s a fact.

However, creating the glass fibre strands from raw materials in the first instance is an energy intensive process. Research shows that rising energy costs are already impacting the cost of fibre. Fibre prices in Europe have risen from USD 3.70 to USD 6.30 per fibre km. Fibre spot prices in India and China have also increased but to a lesser extent.

It’s not clear if the fibre cost hikes are purely down to rising energy costs. The demand for fibre is high, particularly in the UK, which may be contributing to the price hikes. Of the EU27 countries, the UK is one of the least mature markets for fibre coverage, and is a key reason why UK is currently a hotbed for fibre investment and is driving demand.

Rising costs don’t seem to be holding back gigabit ambitions
Operators could absorb a hike in costs as we suspect they may already be doing to avoid price increases. This will inevitably affect network build rates and profitability at some point in the future.

However, you may recall earlier this year we estimated that the top 10 fibre altnets in the UK have committed over GBP 10 billion to serve circa 20 million premises with fibre availability. To this date, those operators seem on course to meet their gigabit ambitions, undeterred. And, we have not seen any altnet, at least publicly, reverse their broadband ambition.

In addition, Openreach, which is passing some 60,000 premises per week, remains confident on reaching its 25 million homes passed by fibre by 2026 target.

Operators should develop pricing strategies to manage the impact of ARPU of ‘tier dropping’ and churn particularly in competitive areas.

Operators could increase broadband prices to accommodate rising costs. However, of the EU5 countries, the UK is already one of the most expensive countries for broadband.

This combined with the fact that UK incomes have also fallen significantly behind Europe may make increasing prices problematic as UK consumers will have less disposable income.

In addition, growing altnet and ISP presence will increase competition and consumer choice further limiting ISPs abilities to increase prices particularly in urban areas.

Then there is a small body of evidence that suggests consumers are already feeling the pinch and may not be able to absorb broadband price hikes given the decline to over-the-top (OTT) streaming subscriptions.

It is too early to say if the OTT decline will result in broadband churn given the current importance of high-quality broadband connections to enable home working and learning.

Consumers are more likely to switch to other operators with more competitive packages particularly in urban areas where there is competition. However, churn is less likely in rural areas where competition and choice are constrained. Rural ISPs may therefore be able to protect themselves better than urban ISPs.

Consumers may drop down to lower tier broadband packages to reduce monthly outgoings.

Operators may need to develop social tariffs to mitigate against churn

Just a few weeks ago, Ofcom issued a request to telecoms operators to better support customers as a record number of households struggle to pay bills calling on more operators to introduce social tariffs.

Our analysis shows that operators such as Community Fibre, G.Networks, Hyperoptic, BT and Virgin Media already offer social tariffs starting at GBP 10 per month. Depending on the operator the prices will not be subject to a price increase as a result of inflation subject to a 12-month contract.

According to Ofcom many operators still do not offer social tariffs concerned that this may erode currently monthly ARPUs. However, it may be a better strategy than losing customers to rivals.

Operators should refine their marketing propositions to emerge with a loyal customer base and review their operations to mitigate against future energy price hikes and reduce CO2 emissions

First and foremost, this cloud has a silver lining and presents the telecoms sector with plenty of opportunities.

ISPs that respond rapidly to evolving market conditions and those that develop compelling propositions will mitigate the impact of churn and ARPU decline better than those that do not. They will also develop a stronger and committed customer base presenting stronger growth opportunities in the future.

Operators can take this opportunity to work with their supply chains and civils contractors to seek out innovative low-cost approaches to deploying fibre networks particularly in rural areas to reduce the cost of deploying fibre networks, improving financial returns.

Operators should also use this as an opportunity to reduce energy consumption and CO2 emissions by identifying high energy consumption network components such as servers, batteries and cooling systems, replacing them with modern and more energy efficient components.

To further mitigate against future energy price hikes, operators may wish to invest in alternative renewable energy sources to power their offices, networks and data centres further reducing CO2 emissions.

This also presents an opportunity for new a new breed of wireless technology entrants; Whitehaul comes to mind – which is developing a long-distance gigabit capable wireless technology that can overcome line of sight limitations of current wireless gigabit solutions to unlock the rural gigabit opportunity for ISPs.

Last month, Consulting Director and Founder Iqbal Singh Bedi, moderated a discussion panel at Connected Britain with Kevin Murphy, CEO of G.Network Communications, Catherine Colloms of Openreach, Rob Gilbert of HFCL Limited and Carlos Lopez of Prysmian Group at to review the industry’s progress to building a gigabit Britain. This article does not necessarily represent the views of the panel nor of the organisation they work for. Originally published on the Intelligens Consulting website

The post How will the cost-of-living crisis affect UK fibre operator strategies? first appeared on Total Telecom.

Amdocs (NASDAQ: DOX), a leading provider of software and services to communications and media companies, today released research findings that give a modern look at consumer expectations around major sporting events like the World Cup.

The World Cup 2022 Viewing Report, conducted by Dynata and commissioned by Amdocs, surveyed UK viewers who plan to watch this year’s World Cup. It found that viewers are largely ready for a new era of amazing interactive entertainment offerings and are willing to pay for digital products and services that make their experience more enjoyable. However, not having access to viewing the World Cup, coupled with questions around network reliability, could hinder this evolution.

Findings include:

When asked if they would be willing to pay extra for an unlimited World Cup-specific mobile data package to stream matches at 5G speeds with no delays or loss of connectivity, 48% were interested.
While most (73%) viewers plan to watch the World Cup on live public TV, 44% of millennials and 38% of Gen-Z plan to stream games. Notably, viewers under 40 plan to watch the games on social media channels, with millennials leading this trend (28%) followed by Gen-Z (27%).
While 78% of fans are confident in their home connectivity to support their World Cup viewing, confidence drops to 57% when it comes to their mobile network. Accessibility is also a concern, with 18% of total respondents stating they don’t have access to all games from their TV provider.
Almost two-thirds (62%) of viewers expressed interest in using the metaverse to be part of a virtual stadium where they could watch sporting events with other fans as if they were there. Gen-Z (42%) and millennials (39%) are the most interested, while a quarter (25%) of Gen-X respondents were.
Beyond the metaverse, viewers have a growing desire for more interactive experiences like 360-degree live video of the game (30%), interactive in-game challenges (25%) and AR/VR experiences (24%).

Anthony Goonetilleke, Group President of Technology and Head of Strategy at Amdocs said: “As 5G availability expands, we expect to see more service providers creating unique “experience packages” beyond generic 5G speed across all offerings—for instance, a connection specifically for the metaverse or augmented reality sports, and more – even packaged with hardware or other physical goods that enable or complement the experience. As experiences become more a la carte, there is a need for a new kind of approach that can be fine-tuned and uniquely tailored to end-users. This flexibility will be essential for players in an increasingly digital world, including next-generation entertainment experiences made possible by a reliable network.”

Raman Abrol, General Manager at Amdocs and CEO of Vubiquity, said: “These findings show that consumers now have new, specific criteria that determine value from their service and content providers, and they want new ways to engage. It also opens opportunities to rethink how services can be bundled; they can be powered by a diverse ecosystem of partners that delivers best-in-class offerings like 360 video, real-time insights and metaverse experiences. This approach is essential to get right because opportunities to personalise the viewing experience will continue to grow, creating more options, and potential complications, as consumers try to manage their offerings.”

The World Cup 2022 Viewing Report is based on a September 2022 survey from Dynata, which targeted 1,000 UK consumers who planned to watch the 2022 World Cup.

The post A metaverse experience is the real goal for UK viewers planning to watch the World Cup first appeared on Total Telecom.

CONTRIBUTED NEWS

Epsilon Telecommunications (Epsilon), a global interconnectivity provider, has appointed Sungjoon Choi as its Chief Financial Officer. Choi will lead Epsilon’s global financial and legal strategy and work closely with Epsilon CEO Michel Robert and the wider leadership team. He will also work alongside parent company KT Corp., to support Epsilon’s global growth plan.

With over 20 years of experience at KT, South Korea’s largest telecommunications company, Choi brings a wealth of industry and financial expertise to Epsilon. He held a leading role in KT’s Finance Management Office for over 10 years, and also spent seven years in the Marketing Strategy Office accelerating KT’s roadmap with key market insights. Between working in the two functions, Sungjoon completed an MBA at Duke University’s Fuqua Business School.

“We’re pleased to welcome Sungjoon to Epsilon’s senior leadership team as we continue to implement our ambitious roadmap and growth strategy. His extensive financial management experience and understanding of KT is a great match for Epsilon. His experience, paired with the rest of the team’s combined expertise, will be a huge value-add for fuelling our global growth,” said Michel Robert, Chief Executive Officer at Epsilon. “I’m looking forward to working with Sungjoon to help take Epsilon to the next level with his financial knowledge and insights.”

Since KT’s acquisition of Epsilon in September 2021, the companies have been working closely to combine Epsilon’s agile innovation in international networking with KT’s world-class telecommunications services, customers, leadership, and resources.

“Epsilon is a key player in the networking market with a firm focus on customer success, partnerships and innovation, which are just some of the reasons I was keen to join,” said Sungjoon Choi, Chief Financial Officer at Epsilon. “It has been great to see the aligned visions and values between KT and Epsilon, and I’m looking forward to working with Michel and the wider team to make a positive difference to Epsilon’s future.”

Choi will support Epsilon’s senior management team to execute on Epsilon 3.0 – the company’s core strategy for its next wave of growth. After building a solid foundation with Epsilon 2.0 through associated company and product refinement, Epsilon 3.0 is about exploring new opportunities and delivering more for customers through continual product evolution, and leveraging KT’s leadership and resources in telecommunications in South Korea and across the globe.

 

 

 

The post Epsilon appoints Sungjoon Choi as Group Chief Financial Officer first appeared on Total Telecom.

The UK’s Competition and Markets Authority (CMA) has warned that the proposed merger between two major global satellite communication and broadband operators, Viasat (USA) and Inmarsat (UK), could lead to airlines facing “higher prices for on-board wifi” due to the removal of a key competitor from the market. Readers may recall that the two operators […]

Network operator Cityfibre has today revealed that they’ll invest £50m to deploy their gigabit-capable Fibre-to-the-Premises (FTTP) broadband ISP network across “almost every home and business” in Kent’s (England) largest town of Maidstone. The first construction work is set to begin during January 2023. Little is known about the operator’s rollout plan or their choice of […]

Rural broadband ISP Beacons Telecom, which in 2020 began to build their own 1Gbps Fibre-to-the-Premises (FTTP) network across parts of Powys and Monmouthshire in Wales (here), has revealed the next locations to benefit from their rollout and say they’re on track to deliver 15,000 premises by the end of 2022. At our last update in […]

NEWS

Reports suggest Huawei 5G enabled mobile phones will return to the market as soon as next year, despite ongoing US sanctions.

People familiar with the company’s plans suggest that less advanced chips made by Chinese companies, but that will enable 5G, will be utilised in place of Kirin chipsets which are designed by HiSilicon and manufactured by TSMC (Taiwan Semiconductor Manufacturing Co) – that are now unavailable due to the tight US restrictions.

The devices will be reworked versions of existing devices, not completely new models, and will probably offer a less compelling user experience than previous generation Huawei 5G devices and especially compared to rival Apple’s iPhone 14.

Huawei is working to claw back market share after US sanctions in 2019 caused it to plunge, with a resulting 50 percent fall in consumer smartphone-led revenues year-on-year in 2021.

A person familiar with Huawei’s plans said “This company cannot wait endlessly and needs to bring 5G phones back to the market as soon as possible,”

“Huawei has lost its leading position in the mobile phone market to American sanctions years ago. Now even their domestic market share keeps dwindling.”

Huawei is seeking to reclaim its position as the world’s biggest smartphone vendor, an objective seen as a matter of national importance to Beijing. According to Will Wong, an analyst at research company IDC “China’s technology self-sufficiency plan could be a potential driver in helping Huawei to join the 5G competition”.

Richard Yu, CEO of Huawei’s consumer business group, admitted in a media interview in July that the group was “the only manufacturer selling 4G phones in the 5G era”, which he said was “a joke”.

RELATED CONTENT: HUAWEI NAVIGATES US SANCTIONS TO MAKE A PROFIT IN 2020

The post Huawei needs to bring 5G phones back to the market first appeared on Total Telecom.

Mobile and broadband giant Virgin Media and O2 (VMO2) is introducing a series of measures to “bolster its support for employees during the cost-of-living crisis“, which among other things will include a new targeted support payment (£1,500 for many UK employees) alongside more flexible leave policies. The changes, which make for an interesting contrast against […]

NEWS

As the price of energy soars across Europe, Orange has revealed a plan to save 20 MW of power this coming winter

With the Russian invasion in Ukraine resulting in a stymied flow of gas to Europe, energy prices are rising sharply across the continent. With an energy crisis on the horizon, households and telcos alike are scrambling to come up with solutions to lower their energy bills and Orange thinks they have one.

This week, Orange has announced a multifaceted energy saving plan in France that aims to save around 20 MW of power over the coming winter, around the same amount as the instantaneous consumption of a medium-sized city of 40,000 people.

The plan revolves around reducing its electricity consumption at peak times by between 5% and 10% for one hour each day. At this time, the several thousand fixed network installations will be operated by electric batteries.

According to Orange, the plan should have no negative impact on their customers.

“In an uncertain geopolitical and economic context, we share the French government’s concerns and we have developed a concrete plan to support the national energy saving initiative,” said Christel Heydemann, the new Orange CEO, who took over the role at the start of the year. “By offering to cut consumption at several thousand technical sites for one hour, we will reduce our instantaneous power requirements by up to 10%, without impacting the service offered to users. But I must point out that networks are crucial for an effective society. We must work together to avoid load shedding measures this winter.”

Additional measures to ensure Orange’s energy consumption will be reduced include setting its offices’ ambient temperature to 19°C, shutting off store window lighting no later than 30 minutes after closing, and potentially closing some of its “quieter work spaces” on days when they have few visitors.

Beyond moving to reduce their own power consumption, Orange will also be encouraging its customers to do likewise, including sending them SMS messages promoting energy-reducing tech behaviours like enabling standby mode for their Livebox and TV set-top box.

Further customer support will also be introduced in the form of services and offers aimed at helping customers to reduce their energy footprint.

Also in the news:
Optus confirms 2.1 million customers affected by cyberattack
Cloud Metro: Reimagining metro networks for sustainable business growth
Vodafone UK and Three confirm talks over a potential merger

The post Orange details winter energy saving plan first appeared on Total Telecom.

For the past 24 years, the World Communication Awards have recognised innovation and excellence for global telecoms, and today continues to be the most revered mark of achievement in the industry.

The awards have evolved to recognise major trends and technologies, with categories that are revised every year to ensure their ongoing relevance to the rapidly evolving communications ecosystem.

The instantly recognisable sail trophy can be found in the offices of many of the leading telcos of the world, and is held in such high esteem due to the transparency and rigor of our judging process that ensures that every organisation the makes the shortlist or wins an awards is truly world class.

The post World Communication Awards 2022 | 1 November 2022 | Grand Connaught Rooms, London first appeared on Total Telecom.