Last week the state-owned Saudi operator walked away from talks to acquire Altice Portugal; Vodafone Portugal was blocked from acquiring smaller rival
Last week could prove to be a turning point in Portugal’s telecoms market. It saw operator group stc walk away from negotiations to acquire incumbent Altice Portugal as the two parties were unable to agree terms. It seems that the Saudi titan has not abandoned its Iberian ambitions – it owns just under a 10% stake in Spain’s incumbent, Telefonica. Now stc is reported by the local news site Eco to be considering making a bid for Vodafone Portugal.
Last week Vodafone Portugal too had a setback when the country’s competition authority blocked its attempt to acquire Nowo Communications, after a protracted review. Vodafone had proposed the acquisition in 2022 and wanted to expand its presence in the country better to compete with its two larger rivals, MEO (Altice Portugal’s operating brand) and NOS.
Back in the room
It has also been reported that the consortium led by private equity firm Warburg Pincus which had been interested in acquiring Altice Portugal but pulled out, has returned to the negotiating table.
Altice Portugal is mired in an accounting scandal. Also, billionaire Patrick Drahi, who controls the Altice group, is looking to sell off assets to reduced the €60 billion debt he ran up building his empire when interest rates and inflation were at rock bottom.
He has had several unsuccessful attempts at selling off Portuguese assets but interested parties have reportedly been put off by too high a price tag: Drahi is said to want more than €7 billion for Altice Portugal.
The state-controlled incumbent is the only operator to receive a 5G licence so far and although it is the country’s smallest mobile operator, it is also the fastest growing
Nokia announced a new partnership with Telecom Egypt to bring 5G technology to country. It will start with to cities including Alexandria, Aswan, Cairo, Giza, and Luxor. The Finnish vendor and the state-controlled incumbent have a long established relationship.
Under the terms of the new contract, the vendor will deploy its AirScale portfolio later this year in the RAN, comprising baseband units and Massive MIMO radios which run on Nokia’s ReefShark System-on-Chip tech.
Nokia will also offer professional services, from deployment to integration and network optimisation.
Earlier this year, Telecom Egypt’s CEO and MD, Nasr Eldin, told local media that 5G will boost its data revenues over the next five years and that 5G will be rolled out based on economic feasibility. The company started the trial operation phase of the service in five locations,
He also said about 50% of Egypt Telecom’s network is 5G-ready, needing only software updates. Eldin added that around 8% of smartphones in the Egyptian market are 5G-compatible
Telecom Egypt (which operates under the the we brand) secured the country’s first 5G licence from the National Telecom Regulatory Authority (NTRA,) in January. It is valid for 15 years and will not be renewed automatically.
As of Q3 2023, Telecom Egypt had the smallest number of mobile subscribers at 12.5 million but is also the fastest-growing mobile operator, having only entered the country’s mobile market in Q3 2017.
Partner content: When duct tape Isn’t the answer to everything
The world has gone mad with this new era of Generative AI (GenAI). Picture a world where duct tape is the answer to every dilemma. Broken glasses? Duct tape. Car won’t start? Duct tape. Heartbreak? You guessed it – duct tape. The current enthusiasm for GenAI is much the same. The buzz is deafening, and the innovations are groundbreaking. But, as with our duct tape scenario, it’s crucial to understand that GenAI, while transformative, isn’t the fix for every issue under the sun.
GenAI has indeed revolutionised the tech landscape, offering new ways to generate content, simulate scenarios, and even shift mindsets about what Artificial Intelligence (AI) can achieve. Its capabilities can bring immense value, yet it’s not the panacea for every technological challenge we face today. For instance, while GenAI can craft eloquent prose or realistic images, it’s not going to fix your database issues or optimise your network performance on its own.
In a world enamoured with GenAI, technologies like deep learning and neural networks, which once seemed cutting-edge, are now being dubbed as “traditional” or “classic” AI. It’s akin to calling a smartphone from five years ago a “vintage” device. This shift in terminology reflects how fast the AI landscape is evolving, but also highlights the need for a balanced perspective on AI tools.
GenAI has undeniably raised the overall interest and willingness to use AI across various industries. However, its true potential often shines brightest when it’s part of a broader, integrated solution. Specialised AI capabilities such as anomaly detection, predictive analytics, and recommendation systems can significantly enhance the functionality of larger systems. By focusing GenAI on specific areas within a wider framework, businesses can achieve far more comprehensive and valuable outcomes.
Innovation to essential business value
Transitioning from viewing AI as a mere source of innovation to recognising it as a critical driver of business value remains a significant challenge for many companies. Unlike traditional software implementation projects, which are often linear and predictable, AI projects require a different mindset. This transition demands agility, openness to experimentation, and the ability to pivot quickly when an idea doesn’t pan out. Embracing this new way of working is crucial for businesses aiming to harness the full potential of AI.
One of the primary hurdles is that the unfamiliar terrain of AI often tempts businesses to revert to their well-worn habits, leading to unnecessary reinvention. Leveraging existing solutions and customising them to fit specific organizational needs can expedite the process of demonstrating AI’s value. This strategic alignment ensures that AI projects are not just technologically sound but also commercially viable.
Companies must accelerate this transformation process or risk falling behind in a rapidly evolving landscape. As AI continues to evolve and mature, the gap between early adopters and laggards will widen. Those who fail to integrate AI effectively into their business models may find themselves outpaced by competitors who have successfully made AI an integral part of their strategic arsenal. Therefore, embracing AI, not just as a tool for innovation, but as a cornerstone of business value, is imperative for long-term success.
Building value-driven AI solutions
At Celfocus, we understand that creating AI solutions that deliver real business value is a complex but rewarding endeavour. Our approach, honed through years of experience, spans from building a solid business case to deployment and continuous improvement. Here’s how we do it:
Figure 1 – Building value-driven solutions from business case to deployment and continuous improvement.
Use Cases Won’t Take You Far, But Business Cases Will
Creating value-driven AI solutions, rather than just data-driven ones, requires starting with a discussion of initial ideas to validate if AI, including GenAI, is suitable for specific needs and to determine the potential return on investment. This approach ensures that AI initiatives are aligned with business goals and deliver tangible value.
We use a proprietary Celfocus tool to guide AI strategy from use cases to business cases, maximising the value of AI and prioritising development roadmaps. This tool includes relevant indicators from our extensive experience and can be further customised with client-specific metrics to more precisely determine the value of each use case for a particular client.
The business cases developed using this approach have yielded significant benefits, including a 20% improvement in Net Promoter Score (NPS) for customer retention, a 28% improvement in first-time resolution with a 2-5% reduction in field service costs, and a 15% increase in revenue for marketing and sales initiatives.
2. Data Alone Won’t Make You AI-Ready
Having data alone doesn’t make an organization AI-ready. True AI readiness requires more than just data; it involves preparing the necessary infrastructure, ensuring data quality, and implementing robust data governance. Many companies are not AI-ready because they lack some of these essential components. Effective AI readiness also entails integrating AI technologies into business processes and fostering an environment that supports continuous learning and innovation.
Celfocus has over 20 years of experience delivering a wide range of data platforms, including data warehouses, data lakes, lakehouses, and more, all with real-time processing capabilities. Our expertise covers crucial aspects such as data quality, data governance, and multi-cloud environments, ensuring that our clients are fully prepared to implement and scale AI solutions effectively.
We have deployed several high-volume data solutions. Some of our projects include building a consolidated data platform from five data warehouses resulting from mergers and acquisitions, integrated with over 70 data sources. We’ve also developed near real-time analytics platforms, processing more than 4TB of events daily and managed a system that processes 2.5 billion lines daily, with over 5,000 pipelines.
3. Don’t Waste Time Reinventing the Wheel
Having established frameworks is crucial for accelerating delivery times in AI solutions. These frameworks provide a proven foundation, reducing the need for unnecessary reinvention and allowing teams to focus on innovation and customisation. By leveraging these pre-built structures, organisations can ensure efficiency, reliability, and consistency in their AI solutions, leading to faster deployment and quicker realisation of benefits. Frameworks also help in maintaining high standards of quality, as they incorporate best practices and lessons learned from previous projects.
At Celfocus, an extensive library of frameworks is available, enabling the delivery of robust solutions that effectively meet clients’ needs. This library includes both generic frameworks, applicable to a multitude of use cases, and domain-specific ones tailored to particular industries or business challenges. By using these well-established assets, Celfocus ensures that each solution is not only technically sound but also aligned with the specific requirements and goals of our clients. This approach maximises efficiency, reduces time to market, and ensures the successful implementation of AI initiatives.
Figure 2 – AI frameworks to accelerating delivery time
4. Don’t Let Your Data and Models Control You
MLOps (Machine Learning Operations) and DataOps (Data Operations) are essential for building effective AI solutions. They ensure the efficiency, scalability, and reliability of machine learning models and data pipelines, facilitating continuous delivery and automation. These practices streamline workflows and enhance collaboration between teams, preventing issues like data inconsistencies and model degradation, ultimately leading to robust and adaptable artificial intelligence systems.
MLOps and DataOps are integral to our AI strategy. Our Cloud Centre of Enablement aligns multicloud practices with hyperscalers and covers analytics and cognitive services to ensure effective operations. By applying best practices from DevOps to AI and data workflows, we achieve continuous integration, delivery, and monitoring of AI models. This approach guarantees that our AI solutions remain cutting-edge and perform optimally in dynamic environments.
5. Watch your budget to avoid unpleasant surprises
FinOps (Financial Operations) is a critical aspect of managing the costs associated with setting up and maintaining AI solutions in the cloud. Effective FinOps practices bring transparency to cloud expenses and enable immediate reactions to unexpected cost changes. By focusing on cost predictability, resource optimisation, and cost control, FinOps ensures that AI initiatives remain financially sustainable and do not lead to unpleasant budget surprises.
Celfocus Cloud Centre of Enablement also extends to FinOps strategies. Our approach has proven to deliver significant benefits, such as cost reductions of around 35-40%. This comprehensive strategy ensures that our AI solutions are not only innovative but also cost-effective, helping our clients achieve their financial and operational goals.
Conclusion
In conclusion, while the GenAI frenzy is fun and filled with potential, it’s important to remember that it’s one tool among many. Embracing a more holistic approach to AI—leveraging both the new and the classic—will ultimately lead to more innovative and effective solutions. So, let’s enjoy the ride, but keep our toolkit diverse and our expectations grounded in reality.
Carla Penedo is the Director of Offer Development & Innovation at Celfocus, a European high-tech system integrator company dedicated to creating business value through analytics and cognitive. Carla specializes in providing data-driven technological solutions to accelerate digital network transformation, enhance and monetise business services, and deliver highly personalised customer experiences.
With over 20 years’ experience delivering high-value transformative data solutions, Carla has a track record in telecommunications, financial services, energy, and utilities sectors. She has in-depth knowledge and expertise in Analytics, Big Data, and AI & Machine Learning technologies. Carla holds an MBA and a degree in Computer Science with a focus on Artificial Intelligence.
Falling sales of infrastructure equipment are expected for the rest of this year and other uncertainties continue
Ericsson has reported that sales fell 7% year-on-year to SEK59.8 billion (€5.24 billion) in Q2, which was better than analysts expected. It also got the bad news about writing down another €1+ billion on Vonage out of the way ahead of time. Shares went up 8%, to levels not seen since 2022.
Ericsson’s CEO, Börje Ekholm, said in a statement, “We remained focused on matters in our control, to optimize our business amid a challenging market environment, with industry investment levels unsustainably low”.
He made much of an increase in sales of 14% in North America and bigger gross margins. Ericsson surprised the industry last December by ousting Nokia from AT&T’s open RAN infrastructure in a deal that could be worth up to $14 billion over five years.
However, Ekholm warned that growth in India – a rare bright spot in the last year or so for Ericsson – was slowing and he expects the second half of 2024 to be challenging.
Another factor is Huawei. As this analysis published earlier in the week by MTN Consulting shows, despite bans on the use of its kit in the in many ‘western’ countries’ networks, its market share has been extraordinarily stable. Ericsson and its Finnish rival Nokia have both failed to make much capital from the situation.
Ericsson won’t have been much cheered either by the German government’s announcement last week that Huawei kit could be used in the RAN for another five and a half years. Even the ban comes into play, on the grounds of security in mid-2029, it will only apply to “critical functions of the 5G network management systems”.
The good news is that many of Germany’s telcos have already replaced or are replacing Huawei in the RAN. The less good news is that Deutsche Telekom plumped for Nokia at the end of last year.
Ekholm acknowledged, “We are seeing sharply increased competition from Chinese vendors in Europe and Latin America”.
He is hopeful that rising traffic will lead to operators investing more in their infrastructure, but they are finding ever more ingenious way to boost network performance and make better use of existing capacity. Vodafone’s two announcements – one with Qualcomm and Xiaomi, the other with Meta – this week are good examples.
Finally, Vonage’s value has now been written down to about a third of what by Ericsson paid. Ekholm’s statement suggested this was a matter of unfortunate timing rather than an outright failure in the long term. He noted, “Vonage remains foundational to build out a global platform for network APIs. This is critical for the digitalization of enterprises and society, and will drive future growth in the telecoms industry. We recorded an impairment charge in Q2, as market growth in the current business has slowed, and we must now refocus on improving performance.”
You can read more about Ericsson’s vision for Vonage here – whether that vision pans out or not remains to be seen, the support of some big operator groups notwithstanding.
So although Ericsson’s shares got a fillip, its foreseeable future remains full of uncertainties beyond its control.
The operator developed and runs the VICKY platform, based on blockchain technology, to trace kit more efficiently throughout its lifecycle – reuse is greener than recycling
Telefónica is progressing towards its goal of being a zero waste company by 2030 by refurbing and reconditioning customer premise equipment (CPEs) to avoid waste. To foster this circular economy, the company developed the VICKY platform, based on blockchain tech.
Reuse – or circularity – helps avoid indirect carbon emissions associated with the extraction of new materials for new equipment manufacturing, contributing to achieving net-zero emissions by 2040. Where devices cannot be refurbished, they are recycled, to minimise the impact of scrapping them, encouraging reusing materials they contain.
The VICKY platform is designed to improve the traceability of assets as well as monitoring and controlling modems, routers and TV set-top boxes across the value chain (referred to as Scope 3).
Since its implementation five years ago, Telefónica has reused over 19 million routers and set-top boxes in all its operations. In 2023, the company achieved an 88% collection rate of all equipment, moving closer to its target of 90% by 2024.
The improved collection rates and refurbishment processes extend the lifetime of equipment. The solution has been recognised for its innovation by Gartner and Forbes for supporting a more efficient, faster, simpler and more sustainable supply chain.
Extending the useful life of equipment avoids emissions, waste and resource consumption associated with the manufacture of new equipment. When equipment cannot be reused, the best option is to recycle it, as each piece contains materials such as gold or copper that can be used in new products. Telefónica ensures their proper recycling treatment through another platform.
Today’s supply chains are increasingly global, complex and involve cross-border logistics and can result in long delivery times due to shortages of electronic components or inefficiencies in device procurement.
Collaboration across the supply chain is essential, given that Telefónica’s electronic equipment for consumers alone involves more than 100 companies on three continents.
VICKY enables the Telefónica Group to address these challenges by providing traceability through complete automation of the logistics process and helps suppliers achieve greater efficiency through digitisation.
As a result, the system optimises procurement, avoids delays and facilitates access to product information such as manufacturing location, critical components and relevant information for maintenance processes or equipment refurbishment, according to Telefónica.
“We firmly believe that much of the innovation we will see in the near future will focus on process transformation, where new technologies such as blockchain, big data and the internet of things will be key factors in contributing to the decarbonisation of operations while generating environmental benefits,” says Fernando Valero, Global Director of Supply Chain and Procurement Transformation at Telefónica.
The GSMA is urging operators to switch to circular supply chains to achieve net zero in 2050 – read more about its initiative here. The graph below is taken from its Mobile Net Zero Report.
The agreements gives Digi the certainty and stability it needs to build out its own infrastructure in Spain as it prepares to move into other European markets
Telefónica and Digi have signed a new mobile network agreement to extend their long established relationship by 16 years. The two have also agreed to share their mobile spectrum in Spain in the 3.5GHz band and have signed a new, 10-year wholesale agreement for fixed broadband.
The deal marks Digi’s transition from an MVNO operational model in Spain to becoming a mobile network in its own right. Digi said the new agreements would allow it to “execute an efficient and timely transition of its mobile telephony business in Spain from a mobile virtual network operator (MVNO) to a mobile network operator (MNO) and to roll-out its own mobile network
Paving the way for Digi to become a credible fourth network operator in Spain was one of the remedies imposed on the market by the European Commission in return for approving the joint venture between Orange Spain and MásMóvil. At the end of March this year it had 5 million mobile customers, more than 1.5 million for fixed broadband and almost half a million for fixed voice.
The agreement between Telefónica and Digi will come into force on 1 January 1, 2025. Telefónica’s will provide national roaming services and share its RAN with Digi while the latter builds out its own infrastructure. “Telefónica increases its sustainability by ensuring a long-term revenue stream in line with the existing one. At the same time, the fixed broadband wholesale agreement has also been extended,” the press statement reads.
Both benefit from “efficient and cost-effective use of its new spectrum assets” as the two will pool spectrum in the 3.5GHz band. This is something of a trend in Spain. In May, Telefónica, Vodafone and Masorange reached a milestone agreement to improve 5G rural coverage by sharing their collective 30MHz in the 700MHz band. This frequency is best suited to wide coverage from a single antenna and indoor coverage.
The Spanish telecom market has experience seismic shifts in the last few months. In addition to the creation of Masorange, Vodafone Spain sold its business and assets into the country to Zegona Communications, in an unusual reverse buy-out.
The incumbent Telefonica is no longer the country’s biggest operator. Then to counter the Saudi sovereign fund acquiring roughly a 10% stake in the operator in Q4 last year, the Spanish government also invested
Meanwhile, Romania’s Digi group is becoming a force to be reckoned with in Europe. As of May this year, its share price had risen 63% over the last 12 months and in Q1 it doubled its profits. The group is looking to expand into other European markets, starting with Portugal and Belgium.
They trialled 1024 QAM TDD tech in Germany and Spain to achieve download speeds close to 1.8Gbps – with a next-gen smartphone
Vodafone, Qualcomm Technologies and Xiaomi have built on previous collaboration testing a new 5G technology in Germany and Spain that can download at almost 1.8Gbps – with a new smartphone. So don’t try this at home.
In January, the trio carried out the first European technical test of Uplink Carrier Aggregation with Tx switching to achieve peak upload speeds of up to 273Mbps. Most smartphones and home broadband services have average upload speed of 100 Mbps.
Expanding QAM
The tech in question in today’s announcement is 1024 quadrature amplitude modulation (QAM), as opposed to today’s 256 QAM, which packs more data into each transmission, enabling faster downloads.
1024 QAM is defined in 3GPP Release 17 specifications. In the Vodafone trials, the 1024 QAM technology was used with a time division duplexing (TDD) spectrum band as a way to send and receive data within pre-determined time slots on the same frequency – 3.5GHz in this case. Vodafone says it will continue to test drive 1024 QAM-compatible networking equipment and devices ahead of their commercial deployment.
Note that in April, Samsung Electronics and Qualcomm Technologies announced the completion of 1024 QAM tests in both frequency division duplex (FDD) and TDD spectrum bands, which marked an industry-first for FDD.
Freeing up capacity
1024 QAM’s increase speed and data throughout makes more efficient use of spectrum, making more bandwidth available at mobile sites to improve all customers’ holistic experience.
The same was said in an announcement earlier this week about Vodafone working with Meta to optimise spectrum’s efficiency for short-form video. The work outlined in today’s announcement and that with Meta is designed specifically to boost capacity at busy mobile sites in areas like shopping centres that have a high density of users in peak hours.
1.8 Gbps peak download
The latest trials used Xiaomi’s smartphone, the Xiaomi 14 Ultra, equipped with Qualcomm’s Snapdragon X75 5G Modem-RF System.
In Germany, Vodafone’s engineering team measured a 20% improved throughput on the commercial network over a distance of up to 600 meters. At Vodafone’s 5G test centre in Ciudad Real, Spain, the team achieved peak 5G download speed of nearly 1.8 Gbps.
Theoretically, 1.8 Gbps could boost capacity by up to 25% in ideal conditions. Vodafone expects the tech to become more widely available during 2025.
Readying for commercial use
Alberto Ripepi, Chief Network Officer of Vodafone, said, “Vodafone is at the forefront of the next wave of innovation in 5G. Our customers will benefit from a head start when the next generation smartphones become more widely available, and we can offer our technical expertise to partners and other providers through our new commercial model.”
Dino Flore, Vice President, Technology of Qualcomm Europe, added, “The successful trials conducted in Germany and Spain with Vodafone and Xiaomi are proof that we are continuing to push the boundaries of what is possible with 5G technology.”
Guoquan Zhang, General Manager of Xiaomi Software Department, said, “It demonstrates how Xiaomi is actively driving and showing innovation in the 5G space.”
Rome wants to be a global connectivity hub between Europe, Africa, the Middle East and Asia but there’s plenty of competition
TIM Group’s global wholesale network operator Sparkle has activated a new point of presence (PoP) at the Hyper Cloud Data Centre of Aruba, the largest data centre campus in Rome, to be inaugurated soon.
The operator believes its BlueMed cable – connecting Italy with France, Greece and several countries bordering the Mediterranean, with landings in Rome, Genoa, Palermo and Golfo Aranci – could help place Rome as a global connectivity hub between Europe, Africa, the Middle East and Asia.
In 30 years of activity, Aruba has developed plenty of experience in the design and management of high-tech data centres, owned and distributed throughout Italy. The largest is located in Ponte San Pietro (BG) and features green-by-design infrastructure and facilities that comply with the highest security standards in the industry (Rating 4 ANSI/TIA-942, ISO 22237), to which is added the Hyper Cloud Data Centre in Rome, in Tecnopolo Tiburtino and at full capacity will include five independent data centres.
BlueMed is an integral part of the Blue & Raman Submarine Cable Systems project built in partnership with Google and other operators that stretch further in the Middle East up to Mumbai, India. It is among the first projects being implemented on the IMEC (India-Middle East-Europe Economic Corridor) set up at the G20 summit in September 2023.
Designed with an “open cable system” and “open landing station” architecture, BlueMed ensures maximum openness to other operators and the development of internet traffic interconnection ecosystems. With four fibre pairs and a capacity of over 25 Tbps per pair, Sparkle said BlueMed offers operators and businesses high-speed, high-performance international connections from Rome to all of its destinations worldwide.
Essential hub
Sparkle’s new PoP was activated at Aruba’s Hyper Cloud Data Centre (IT4), a technology campus located at the Tecnopolo Tiburtino, a district where more than 150 companies operate, ranging from aerospace to ICT, in an environment designed also to support the growth and development of new companies and start-ups. The data centre campus covers an area of 74,000 m2 and, when fully operational, will include five independent data centres for a total of 30 MW of IT power, the first of which (DC-A) is already ANSI/TIA Rating 4 certified.
“With the activation of the new PoP integrated with BlueMed, we intend to respond to the needs of companies and operators that require large international interconnection capacities,” said Sparkle CEO Enrico Bagnasco. “We bring Rome closer to the world’s major connectivity exchange points thanks to a unique, low-latency route to Marseille and Palermo, integrated with the main submarine cables crossing the Mediterranean and other destinations in Sparkle’s global network.”
“We share with Sparkle the aim of serving companies and operators, that need large capacities, with not only connectivity but also space and power within state-of-the-art data centres that are large enough to support even the most ambitious growth plans,” said Aruba CEO Stefano Cecconi. “Being able to host a Sparkle PoP, with the availability of BlueMed, is an important building block in the consolidation of our data centres as strategic assets at a national and European level and is perfectly in line with our carrier neutral philosophy.”
He added: “This approach is designed to allow customers to enjoy, in maximum autonomy, extremely reliable and high-performance internet connection solutions, and to foster the development of interconnections that benefit the entire ecosystem, making Rome an additional connectivity hub and an IT and cloud service delivery centre for the capital and all Central and Southern Italy.”
The new PoP – which already hosts key international players – adds to the four existing points of presence in Rome, increasing the footprint of the metropolitan ring, a protected and redundant system fully integrated with Sparkle’s Tier-1 global IP network “Seabone”.
