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    Beware the seven deadliest customer experiences – Foundever

    Repetition, ratings and rude robots

    You can tell a CEO who’s spent too much time ‘in the cloud’. They believe their own customer satisfaction surveys. Either that or they are deliberately gas-lighting us. To improve customer experience, Mobile Europe sought simple ‘people pleasing’ advice for telcos from people who really know the customer. In the first of an occasional series, Maria Harju, Foundever’s Chief Revenue Officer for Europe, the Middle East and Africa, describes The Seven Deadliest Customer Experiences and how mobile network operators can avoid them.

    Repetition.

    Repeating your story to multiple people is enough to make 57% of Europeans hang up. Yes, some problems demand escalation, but if you’re moving your customer across an omnichannel platform it’s omni stupid not to move the information from channel to channel too. A CX should systematically do that. This averts another massive frustration, disregard for the customer’s history. How can you pretend to care about the customer experience when you show you are demonstrably oblivious to it? All the information across all channels is captured and should be correctly stored and retrieved so that your agents can do their best jobs.

    Rate your experience.

    OK, we need performance feedback, but customers are suffering from survey overload. Every trip to the toilet now involves an invitation to rate the experience. There are better ways to learn how customers feel about service and how they perceive your brand. Speech and text analytics are instant, less obtrusive and more accurate.

    Chatnots.

    If you don’t acknowledge your chatbot’s limitations, you’re setting your brand up for a CX failure. If your customer knows it’s an automated system, they’ll treat it as such and adjust their expectations accordingly. But when the bot goes beyond its domain intelligence it must hand off to a live representative and pass on the information shared up to that point.

    Chats …. with delayed response. 
    Chat’s rationale is about immediacy and accuracy but long wait times and vague unfocused responses will demolish that advantage. Immediate contextual support can help a customer take action or make a decision. Avoid the temptation to set high chat concurrency targets for agents. The more conversations they handle the less likely they are to resolve complex issues or satisfy each customer. Use your best pre-scripted responses in early conversational stages so that agents have more time to find a resolution. Cross train your CX staff so that they can work across channels based on peaks in demand.

    Undervaluing CX

    If each interaction doesn’t meet expectations it will damage your brand. So stress its value in your proposition. A superior customer experience should be reflected in the price of a product or service. If you’re cheap very hard to hold on to customers, especially in the current economic environment. Here is the value of CX. Three in four consumers will walk after a single disappointing customer experience, yet 42% would pay more for an identical product or service if it were supported by a superior CX. Being in the latter camp starts with understanding who your customers are, their wants, needs and expectations.

    Treating vocal interaction like a necessary evil.

    Test yourself before you test their patience. Voice is about people not managing processes, so IVR should solve customers’ problems, not stress test their patience and short-term memory on the altar of your management processes, said Harju. Most consumers are frustrated by complicated menus then agitated by the agent that takes over. A happy resolution is an uphill battle. An IVR should minimise menu options, as part of the identification or authentication process so that more of the conversation is focused on the customer and their issue, and use it to coach the customer. Rather than playing a message saying the call is important, a message asking if a person has the reference number or other relevant information to hand is going to make everyone’s life easier.

    Network resilience is fundamental to Ukraine’s fight for survival

    Kyivstar’s CEO and CTO talk about the power of grit and operators pulling together

    In a small, quiet meeting room on the sidelines of Mobile World Congress with executives from Ukraine’s largest operator Kyivstar, the discussion was in stark contrast to what was going on at the show. While other European operators talked about fair-share politics and future immersive experiences, Kyivstar provided an update on how it has kept people safe and its network up and running after one year of war. 

    Oleksandr Komarov, Chief Executive of Kyivstar, acknowledged having a somewhat “alien” feeling here as the operator has “very different challenges and priorities” compared to the rest of the industry.

    In an interview with Mobile Europe, Komarov and Volodymyr Lutchenko, Chief Technology Officer at Kyivstar, shared how network resilience challenges have changed dramatically over the last year and how people have pulled together to preserve communications services. (Also see Telecoms in time of war)

    National roaming

    Cooperation among the country’s three operators – Kyivstar, Vodafone Ukraine, and Lifecell – has been “essential” for overall network resilience, and they have been “exchanging capacity and providing equipment to one another,” said Komarov.

    Indeed, one of the first and most important steps the operators took after Russia invaded a year ago was to implement national roaming, so that if network services are down on one network, users are automatically switched to another. National roaming is unusual and difficult, but the Ukrainian operators were able to launch it in about three weeks with support from the national regulator.

    The service is “working well to keep services going,” said Lutchenko. When the country suffered power blackouts in November last year, he said more than 2 million people per day used the national roaming service.

    When the war started, the government also issued additional frequencies free of charge to the operators to give them extra network capacity. Meanwhile, equipment suppliers and local businesses have also rallied to help keep the networks going.

    Komarov cited an example where Ericsson stepped up to support a “very big ambitious project to roll out a national core site in the western part of Ukraine … to mitigate the risks related to the potential loss” of other sites, he said. In peace time, such a project would take 12 to 18 months. But with everyone cooperating, he said they started the project at the start of 2022 and it was completed in early May, taking less than five months for a major deployment.

    Moving targets for resilience

    As the months of war have dragged on, the network resilience challenges have changed. In the first few months, Lutchenko said Kyivstar was engaged in “urgent activities” to keep the network going when the infrastructure was physically damaged by rockets, bombs, mines, and tanks, because the biggest problem is that it is often too dangerous to get to the sites to repair damages.

    “[The sites] could be in occupied territory or on the front line. The area could be under fire or the fields can be mined so that without supervision from the military, you cannot get there … That’s why your network should be very reliable and still work with multiple damages like ours,” said Lutchenko.

    Later in the summer, the resiliency work shifted to “stabilisation” projects. By September, Kyivstar’s network performance KPIs remarkably were “almost on a pre-war level.” Apart from occupied areas where Kyivstar had no access to sites, “the network was really good,” he said. 

    Attacks on energy pose new threats

    The communications resiliency landscape changed in October when Russia started attacking the country’s energy infrastructure. Lutchenko said the challenge is now “really huge” and the “new reality.” In late October, about 20% of Kyivstar’s base stations were affected by power outages. Lutchenko said the worst day was November 24, 2022, when 65% of Kyivstar’s network was without electricity.

    In response, Kyivstar has strengthened energy resilience by adding longer-life backup batteries and diesel-powered generators.

    Here again, cooperation has been vital. In Kyivstar has “crowd-sourced” access to power generators from local businesses, such as a petrol station located near one of the operator’s cell sites. “We asked businesses and invited people to help us with keeping the network up and running,” said Lutchenko, and now more than 600 sites are connected to diesel generators.

    But this is one area where Komarov feels help from the government has been “limited”. Of Kyivstar’s 1500 generators, he said about 40 were provided by the government and the rest were either procured by the operator or acquired from third parties that have “extra power capacity on hand located nearby our sites.” Kyivstar said it has invested around US$5 million just on generators and diesel fuel. 

    Fighting on two fronts

    Kyivstar’s network is under threat from cyberattacks as well as physical attacks. “The Russians want to destroy us not only physically, but virtually as well, so that means we have to fight on two front lines,” said Lutchenko.

    The operator took measures to protect its network by relocating certain equipment away from areas that were likely to come under Russian control. Komarov explained that in occupied territories there was a cyber defense effort underway to ensure that despite not having control of all its network, the operator was not “vulnerable to extra threats.”

    “We streamlined the architecture of our core infrastructure to minimise the number of potential vulnerabilities,” he said. In Kherson, for example, Kyivstar had “just a media gateway and RAN network” and this “decreased the risk of penetration,” he said.

    Restoring liberated areas

    As territories are liberated, Kyivstar works on repairing the destruction to its network. Lutchenko said that about 18% to 20% of the telecom infrastructure in formerly occupied regions is “totally destroyed,” meaning “there is nothing from an equipment or infrastructure point of view.” About 30% to 35% is “heavily damaged” and about 40% has “minor damages.” Kyivstar says it can repair nearly 90% of the network in those areas.

    “We’re waiting for our military to liberate more territory and we are ready to restore everything,” said Lutchenko.

    Losing more than infrastructure

    Kyvistar is worried about losing more county’s critical communications infrastructure: it is also working to keep its 3,800 employees and their families safe. In the initial months of the war, the operator provided instructions for where people could go for safety and converted regional offices into temporary homes with showers and washing machines for displaced families.   

    Around 140 Kyivstar employees have been drafted into the army and thousands volunteer to help the army in various roles. The operator has lost three of its employees in the war and two are missing.

    Kyivstar relies on maintenance and construction suppliers, but their situation is “very much worse” because they cannot protect employees “with the same efficiency as Kyivstar” due to its critical infrastructure status, explained Komarov.

    Lutchenko joined Kyivstar in November 2021 and has been in the telecom industry in Ukraine for more than 25 years. “I don’t think anyone can plan for stuff like this. The most important thing is we have the greatest team in the world.”

    Asked how the war has affected the operator’s business, Komarov said the operator was “in the green” and there is “extremely high pressure on our networks.”

    “But let’s face it, it’s less about business and much more about survival,” he said.

    More techcos step up to support Ukraine

    Microsoft, VMware, Intel, AMD and OneWeb are the latest to stop trading with Russia – and some with Belarus too

    Last week Google blocked Russians’ access to Google Pay and Apple did likewise with its wallet product and product sales in Russia.

    Some have criticised Apple’s move, pointing out it could push people towards using Android phones made in China that are more susceptible to hacking and surveillance.

    However, Apple made the moves after a direct appeal to its CEO, Tim Cook, by the Vice Prime Minister of Ukraine Vice

    Now more big tech firms are following their lead.

    Microsoft has suspended all new sales of Microsoft products and services in Russia.

    The chips are down

    Chip giant Intel said in a statement that it, “condemns the invasion of Ukraine by Russia and we have suspended all shipments to customers in both Russia and Belarus.

    “Our thoughts are with everyone who has been impacted by this war, including the people of Ukraine and the surrounding countries and all those around the world with family, friends and loved ones in the region.”

    Another chip giant, AMD has also stopped shipments to Russia and Belarus.

    VMWare is suspending all its business activities in Russia and Belarus due to the unprovoked attack by Russia. It published a statement that read, “We stand with Ukraine, and we commend the bravery of the Ukrainian people. The human toll is devastating and like other global businesses, we are committed to supporting our Ukrainian team members, customers and partners.”

    It added, “We are also seeking to support non-Ukraine-based employees with family members located in Ukraine with information to access available resources. We continue to support our employees in Russia, as they are adversely impacted by the consequences of their government’s actions.

    “The suspension of operations includes suspension of all sales, support, and professional services in both countries in line with VMware’s commitment to comply with sanctions and restrictions.”

    The board of directors at satellite operator OneWeb has voted to suspend all launches from Baikonur, the Russian cosmodrome in Kazakhstan.

    Social media battles

    Meanwhile social media sites are continuing their battle with Russian authorities, which are keen to control the flow of information and the narrative surrounding the war.

    Facebook, Twitter and YouTube have acted to prevent Russia’s state media making money from ads on their sites. In response, Moscow has said will restrict access to Facebook after its parent company Meta refused to stop fact-checking some Russian media companies’ output.

    TikTok has limited access to Russian state-controlled media accounts in the EU and Reddit has stopped users posting links to Russian state-sponsored media.

    Expect yet more big techcos to act soon.

    SES to acquire Intelsat for $3.1bn to form multi-orbit operator

    The European acquirer reckons the expected total synergies will be equivalent to 85% (€2.4 bn) of the total equity value of the transaction

    Luxembourg-based SES is to acquire Virginia, US-based Intelsat for a cash consideration of $3.1 billion (€2.8 billion) “and certain contingent value rights”. This deal will be done by SES purchasing 100% of the equity of Intelsat Holdings S.a.r.l. (that is, a limited company).

    The Financial Times reported the two were in possible merger talks as far back as 2022.

    The combined SES will continue to be headquartered and domiciled in Luxembourg (picture shows SES’ HQ in Betzdorf, Luxembourg), while maintaining significant presence in the US, “notably in the greater Washington, DC area”. 

    The companies have a gross backlog of €9 billion, revenue of €3.8 billion, and adjusted earnings before interest, tax, depreciation and amortisation of €1.8 billion.

    Stronger together

    The parties say the combination will create a stronger, multi-orbit operator with greater coverage, improved resilience, more solutions and greater resources to invest in innovation. Not to mention creating a bigger pool of talent, expertise and experience. 

    The thinking is that the combination will deliver greater value for customers and partners, and “a compelling alternative in the new era of growth, innovation, and competition for the satellite communications industry,” according to the press statement.

    SES states that the deal fully aligns with its financial policy and is underpinned by expected total synergies equivalent to 85% of the total equity value of the transaction. The parties expect this will be realised within three years of the deal closing.

    Complementary assets

    In large part, this is because the new entity will combine complementary investment in space, ground, and network innovation to unlock future value and opportunity. The two have a combined fleet of more than 100 Geostationary Earth Orbit (GEO) and 26 Medium Earth Orbit (MEO) satellites.

    The joint entity will benefit from enhanced coverage, greater network resiliency, complementary spectrum (C-, Ku-, Ka-, Military Ka-, X-band, and Ultra High Frequency) rights, and improved service delivery utilising an expanded network of ground segment assets. 

    By end-2026, eight new GEO (including six software-defined) satellites and seven new MEO (O3b mPOWER) satellites are expected to be launched adding more redundancy and capacity.  

    The transaction has been unanimously approved by the Board of Directors of both companies. Intelsat shareholders holding about 73% of the common shares have entered into support agreements meaning they will vote in favour of the transaction.

    The transaction is subject to the usual regulatory filings and approvals, which they expect to receive in the second half of 2025.

    Satellite in the mainstream

    Adel Al-Saleh, CEO of SES, commented, “This important, transformational agreement strengthens our business, enhances our ability to deliver world-class customer solutions, and generates significant value for our shareholders in a value accretive acquisition which is underpinned by sizeable and readily executable synergies.

    “In a fast-moving and competitive satellite communication industry, this transaction expands our multi-orbit space network, spectrum portfolio, ground infrastructure around the world, go-to-market capabilities, managed service solutions, and financial profile. I am excited by the opportunity to bring together our two companies and augment SES’s own knowledge base with the added experience, expertise, and customer focus of the Intelsat colleagues.”

    He added, “This combination is also positive for our supply chain partners and the industry in creating new opportunities as satellite-based solutions become an increasingly integral part of the wider communications ecosystem.”

    The end of torrid times?

    David Wajsgras, CEO of Intelsat, said, “Over the past two years, the Intelsat team has executed a remarkable strategic reset. We have reversed a 10-year negative trend to return to growth, established a new and game-changing technology roadmap, and focused on productivity and execution to deliver competitive capabilities. The team today is providing our customers with network performance at five 9s and is more dedicated than ever to customer engagement and delivering on our commitments. This strategic pivot sets the foundation for Intelsat’s next chapter. 

    “By combining our financial strength and world-class team with that of SES, we create a more competitive, growth-oriented solutions provider in an industry going through disruptive change. The combined company will be positioned to meet customers’ needs around the world and exceed their expectations.”
     

    A missed opportunity: passing the EU’s Gigabit Infra Act

    Brussels can tick the box, but it could and should have been so much better

    The Gigabit Infrastructure Act, hailed by Brussels as a flagship piece of legislation for the European Union and the wider world, is finally about to pass into law. It replaces the 2014 broadband cost-reducing directive (BCRD).

    Following the usual rigamarole, it received the nod from the European Council after the European Parliament voted in its favour. It is now in the process of being published in the Official Journal and officially becomes law three days after that is completed. However, it will not be enforceable for another 18 months, taking us to late 2025, and even then, not all of it will be binding.

    Tight timeline

    This doesn’t give much time for it to help the EU to hit its ambitious 2030 targets regarding the penetration of fast network coverage. The goal is full fixed gigabit coverage by 2030 and 5G networks in all populated areas by 2030.

    The EU’s State of the Digital Decade report published last September showed that fibre networks are available to just over half (56%) of households. 5G covers 81% of urban populations but this falls to 51% for rural dwellers.

    The EU reckons will cost €200 billion collectively for operators to hit those targets.

    The Act is designed to speed up the process for operators in obtaining permission to build infrastructure on landlords’ property. Already the terms have been diluted – example, with various exemptions, voluntary elements and interim steps introduced – to get it passed into law and the intra-EU prices caps that should expire on 14 May will now be in place until 30 June 2032.

    For more information, see this detailed analysis.

    Not a great track record

    An attempt by the British government to smooth the way for operators building out infrastructure in the UK achieved little – the updated Electronic Communications Code was published in 2017. The intention had been to make gaining permissions easier and make the rental fees that land and property owners could charge operators reasonable. Naturally, the landowners didn’t always agree with what the operators thought was reasonable, andVodafone lost a landmark case in 2020.

    The UK government has just had another go at addressing part of the issue – access to multi-tenancy buildings.

    So yes, after much toing and froing the current Commission has got the legislation over the line before its term ends later this year but how much it will achieve and when is not clear.

    Broadband numbers static as Italy shifts to FTTP 

    Mobile stays prepaid while VOD subscriptions grow but viewing falls

    By the end of 2023, FTTC accounted for about 49 percent of the Italy’s total broadband user base of around 18.95 million – with the total only creeping up 22,000 in the year. Despite being almost half, FTTC connections fell 475,000 YoY while FTTH grew by 290 thousand in the last quarter of the year and 978 thousand year-on-year. Compared to December 2019 the FTTH increase is 3.34 million lines. DSL fell 675,000 but was offset by growth in lines in other technology. 

    Despite some hype around fixed wireless in Italy, FWA increased 150,000 and at the end of December 2023, amounted to 2.11 million subscriptions. The figures are part of Italian regulator AGCom’s latest Communications Observatory. The country’s fixed network overall fell 16,000 on a quarterly basis and now stands at around 20.11 million lines. Copper lines decreased by about 186,000 on a quarterly basis and by 798,000 compared to December 2022. Over the past four years, they have decreased by 5.72 million. 

    Connection speed have improved: lines with speeds of 100Mbps and above rose from 40.3% at the end of 2019 to 73.4% in December 2023. Of note was the growth in the weight of marketed lines with transmission capacity ≥1GB/s, which increased from 3.2 to 22.2% in the 2019 – 2023 period.  

    At the same time, the growth in data consumption continues. In terms of overall volume, daily traffic in 2023 marked a 15.6% year-on-year growth, marking, at the same time, a 120 percent increase over the corresponding value in 2019. This is reflected in daily traffic per broadband line, with unit consumption figures more than doubling in the period 2019 – 2023, increasing from 4.23 to 8.52GB per line on average per day. 

    TIM is confirmed as the largest operator with 38% of lines, followed by Vodafone with 16.4% and Wind Tre and Fastweb with 14.2% and 13.7% respectively. After that comes Tiscali (3.7 %), Eolo (3.5%) and Sky (3.3%).  

    Mobile dominated by prepaid 

    In Italy’s mobile network, as of the end of December 2023, there were 108.5 million active SIMs (both ‘human and M2M’), up by just under 1.3 million units year-on-year. Of that however, M2M SIMs showed an increase of 1.2 million units, while that of ‘human’ (i.e. voice only, voice+data and data only involving human iteration) was about 60 thousand SIMs. 

    Non-M2M mobile lines are 86.5% residential users, while, with reference to contract type, just under 90 percent of subscribers prepaid. Relative to overall sims, TIM is the market leader with 27.8%, followed by Vodafone with 27.1%, Wind Tre with 23.7% and Iliad reaching 9.9%. 

    Considering only the ‘human’ SIM segment, AGCom said Wind Tre remains the leading operator with 24.6%, followed by TIM with 24.1%, Vodafone with 21.7% and Iliad – with 1.5 percentage points YoY growth – has reached 13.7%. After that comes PostePay (5.4%), Fastweb (4.6%) and CoopVoce with 2.7%. 

    An estimated 58.6 million ‘human’ SIMs produced data traffic during the last quarter of 2023, which is about two million more than in the corresponding period of 2022. In 2023, daily mobile data traffic grew year-on-year by 21.7% but 245% over 2019. Correspondingly, the average daily unit consumption in the January-December period can be estimated at about 0.78GB, up 21.1% compared to 2022 and more than 230% compared to the corresponding period in 2019, when it was estimated at 0.23GB. 

    VOD grew but users are watching less 

    AGCom said paid video-on-demand saw 15.1 million surfers by December 2023 (up 169,000 YoY). On average, in 2023, Netflix registered about 8.7 million unique users (down 1.6%) compared to 2022 and is followed by Amazon Prime Video with 6.7 million visitors (up 3.1%). Disney+, with more than 3.5 million internet users and Sky/Now, with average unique users of 1.2 million, registered growth of 2% and 16.4% respectively, while Dazn (2.1 million average unique users) registered a decline of 9.8% compared to 2022. 

    Analysing the browsing time on the main video streaming sites offering pay-only services in December 2023 showed a growth of 11.8% YoY. “Analysing the total hours spent by surfers on the different platforms in 2023, allows us to observe, albeit with different intensity, an overall contraction for the main operators with the sole exception of Comcast/Sky’s Now service (up 35.7 percent),” stated the report.  

    In detail, Netflix dropped from about 376 million hours in 2022 to 360 million hours in 2023 (down 4.1%). Amazon Prime Video also contracted in the amount of time spent viewing its sites and apps (down 20.6 percent, from 69 million hours in 2022 to 55 million hours in 2023), as did Disney+ and Dazn, both of which are declining when considering the total hours spent by users on their sites and apps (decreasing from 30 to 28 million hours and from 9 to 7 million hours of total browsing from 2022 to 2023, respectively.  

    Free VOD services have 35.4 million unique viewers connected as of December 2023, record a year-on-year decline in audience of 1.5 million. In this regard, in 2023, it is noted that among the free VOD platforms, the most visited ones in terms of average monthly unique users were News Mediaset Sites (with 22.1 million), Sky TG24 (with 9.8 million) and RaiPlay (7.4 million). 

    Surfing time spent on this type of site last December exceeded 26 million hours, registering a decrease of more than 1.6 million hours compared to December 2022. 

    The full data for the report can be accessed here [English] 

    Corning signals resumption of “normal” carrier spending  

    The company forecasts second-quarter core sales above estimates on the back of steady telco and hyperscaler spending

    While most eyes are focused on the global chip manufacturers’ recent return to the black, one of the big three fibre makers, Corning, said it was seeing “encouraging signs of improving market conditions,” according to Corning chairman and CEO Wendell Weeks. Corning had already said in January it expects its carrier customers to deplete their excess inventory and resume normal purchasing patterns. 

    Now, Corning said it expects second-quarter core sales of around $3.4 billion, which is above analysts’ expectations on average. Q1 revenue for the company’s optical communications segment, its largest by sales, was at $930 million, versus estimates of $866.7 million. 

    “We continue to expect that the first quarter will be the low quarter for the year,” he said on the company’s Q1 results call. “We are executing our plans to add more than $3 billion in annualized sales within the next three years and we already have the required capacity and capabilities in place.” 

    “In Optical Communications, carrier inventory drawdowns have been the primary source of our below trend sales,” he said. “Once carrier inventory starts returning to more normal levels and our customers resume purchasing to support their deployment rates, we would expect to see our order book grow. And that’s exactly what is happening.” 

    “Our order book grew nicely from fourth quarter levels. This and our regular conversations with large carrier customers indicate that the gap between our sales and customer deployments is moderating,” he added. “As a result, we expect carrier sales to increase from first quarter levels.” 

    “As I’ve covered in the last two calls, fibre shipments are more than 30% below trend. We fully expect that gap to close adding more than 40% to our overall Optical Communication sales,” he said. “In conversations with our large carrier customers during the quarter, they reinforced their commitment to increasing fibre deployments in 2024 and beyond.”  

    AI demand impacts fibre deployments 

    Wendell said Corning’s recent wins for AI datacentres will translate into orders and sales during the year – part of its Enterprise portion of Optical. Gen AI creates significant demand for passive optical connectivity solutions. All datacentres consists of a front-end network connecting racks of CPUs. To meet the computational demands of AI, customers are now building a new fibre-rich, second network to connect GPUs, which increases Corning’s market opportunity. 

    “Now we will see this in our financials as customers begin to build large GPU clusters and adopt our latest high-density innovations,” he said. “Customers want fast deployment. Our pre-connectorized structured cabling solutions offer big installation time advantages. And the GPU clusters, which pack a very large amount of computing power per rack requires smaller denser cables making connector size and cable diameter important requirements.” 

    To meet these high-density requirements, Corning introduced its RocketRibbon cable with Flow Ribbon technology that it said could reduce cable diameter by 60% with fibres per cable approaching 7,000. The company also has its Contour Optical Fiber, which has a 40% smaller cross-sectional area than legacy fibres. 

    Revenue per GPU 

    “In our recent customer wins, our revenue is low-single-digit hundreds of dollars per GPU. We believe the customer density needs, combined with our technology’s superior performance will sustain these attractive sales attach rates long term,” he said.  

    Wendell explained how this impacts spend at a rack level where a typical front-end rack of filled with CPUs has about 32 fibres and 16 ports, two fibres per port. “Assuming one of these back-end network GPU racks will tend to have on the order of a couple of [Nvidia] H100 servers to service those, you need more like 256 fibres on that same rack,” he said. “So, you’ve got about an eight times increase in the amount of fibres per rack.” 

    Nvidia’s B100 will create even higher density racks and is bandwidth increases latency also becomes critical meaning the processing power is limited by distance and the servers must be closer together. Wendell said pushing the photons closer and closer to “the beachfront” of those GPUs is “opening up an entire new set of categories for us for our flat glass, for our ability to cut the light into various formats…leading to a whole new family of innovations upon which we are working diligently.”  

    Webinar with SS8 Networks: Leveraging Location Technology to Help Reduce Crime, Prevent Terrorism, and Save Lives

    Recording of our webinar from 23 April 2024 with Simon Mason, Solutions Architect at SS8 Networks.

    For more information about SS8 Networks, visit www.ss8.com

    Lumine prevails in bid for Casa’s 5G core and RAN assets

    Interloper Skyvera lost out by a narrow margin but cost Lumine $17.2 million more than the original deal it had struck

    Bloomberg reports that the Canada-based Lumine Group has clinched the deal for Casa Systems’ Axycom 5G core and RAN assets for $32.2 million. It outbid Skyvera’s by $0.2 million.

    Before Skyvera got involved, Casa Systems had agreed to sell the assets to Lumine for $15 million to fund bankruptcy proceedings.

    Bloomberg said a US bankruptcy judge approved the sale as it seemed Casa Systems was close to out of money this week. If Lumine doesn’t close the deal this week, then the judge has stipulated that the assets will go to Skyvera which was the only other bidder in the auction.

    Casa Systems made a considerable splash selling broadband kit to cable operators, but racked up hefty costs getting its 5G mobile core and RAN products to market.

    Verizon invested $40 million in Casa Systems in 2022, which gave it a 9.9% stake in the firm.

    Casa has agreed to sell its cable systems tech business to fixed access network technology specialist Vecima Networks for $20 million.

    In January, Lumine Group agreed to acquire Nokia’s device and service management platform businesses for €185 million. This was part of Nokia’s restructuring of its Cloud and Network Services division. The sale was completed on 1 April. About 500 staff are moving from Nokia to the new owner.

    Lumine has been building a portfolio of communications networking software systems through acquisitions over several years.

    Omdia ranks global top 12 operators’ progress towards becoming techcos

    Concludes they are doing well in terms of adopting a software-based operating model and developing enterprise digital services, but their focus on verticals needs work

    China Mobile is ranked as the top overall performer in Omdia’s telco-to-techco benchmark. The Omdia study assesses the efforts of 12 leading telecom service providers globally as they transition towards the techco operator model, integrating communications and technology services.

    Indeed the top three are in Asia, with the leading European group, Deutsche Telekom, four points behind the leader. The US’ leader, AT&T, is joint fifth.

    Telco-to-techco benchmark total scores by service provider

    The high cost of deploying 5G and fibre networks, combined with low growth in revenues for communications and connectivity services, is leading many telcos to reinvent themselves as techcos that provide technology services, primarily to the enterprise sector.

    “A telco that has adopted the techco model successfully is a software-based organization that offers services in areas such as AI, big data, the cloud, and IoT, and can implement digital transformation for specific vertical sectors,” said Matthew Reed, Chief Analyst, Service Provider Strategies, at Omdia.

    China first

    China Mobile ranks first in the telco-to-techco benchmark with a score of 31 points out of a potential maximum of 40, based on the scale of its high-speed broadband platform; its capabilities in AI, big data, and security; and its portfolio of enterprise digital services and vertical market solutions.

    Digital transformation revenue, which is China Mobile’s term for revenue from new digital services, accounted for 29.4% of China Mobile’s service revenue in 2023, an increase of 22.2% year on year, according to the company’s reports. (At the end of 2023, Orange’s had reached 44%.)

    NTT ranks second in the benchmark, reflecting its strengths in software services and in the enterprise market, while SK Telecom, which ranks third, recently unveiled a new strategy to become a global AI company. SK Telecom’s new AI services include an AI-based digital assistant, A., which it plans to launch around the world with other telcos. 

    Top Europeans

    Telefónica ranks fourth in the benchmark, reflecting its progress as a provider of cybersecurity and other enterprise digital services through a dedicated unit, Telefónica Tech. 

    AT&T, e&, and Vodafone rank equal-fifth in the benchmark. AT&T says that being an early adopter of AI has helped it to make operating cost savings of $6 billion. e& adopted a new strategy in 2022 to become a leading global technology and investment group [including a substantial stake in Vodafone], and has acquired or developed assets and capabilities in multiple digital service and technology areas.

    Vodafone has increased its focus on the business market, including enterprise digital services, and aims to expand its IoT operation, already the largest of its kind outside China, as a standalone unit as part of ten-year, GenAI services agreement between with Microsoft.

    “Overall, the operators covered in the benchmark are making good progress towards a software-based operating model and with their development of enterprise digital services,” said Reed. “But their vertical markets focus is less advanced generally and is an area that needs more work.”

    FCC fines US mobile operators almost $200m for sharing location data 

    First mooted in 2020, the regulator’s decision will no doubt have other regulators watching closely

    The Federal Communications Commission fined the largest US mobile operators nearly $200 million for illegally sharing access to customers’ location information without consent and without taking reasonable measures to protect that information against unauthorised disclosure. 

    Sprint and T-Mobile – which have merged since the investigation began – face fines of more than $12 million and $80 million, respectively.  AT&T is fined more than $57 million, and Verizon is fined almost $47 million. 

    “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 FCC chairwoman Jessica Rosenworcel.   

    “As we resolve these cases – which were first proposed by the last administration – the Commission remains committed to holding all carriers accountable and making sure they fulfil their obligations to their customers as stewards of this most private data,” she added.  

    The FCC Enforcement Bureau investigations of the four carriers found that each carrier sold access to its customers’ location information to “aggregators,” who then resold access to such information to third-party location-based service providers.  In doing so, each carrier attempted to offload its obligations to obtain customer consent onto downstream recipients of location information, which in many instances meant that no valid customer consent was obtained.   

    This initial failure was compounded when, after becoming aware that their safeguards were ineffective, the carriers continued to sell access to location information without taking reasonable measures to protect it from unauthorised access. 

    The investigations that led to the fines started following public reports that customers’ location information was being disclosed by the telcos without customer consent or other legal authorisation to a Missouri Sheriff through a “location-finding service” operated by Securus, a provider of communications services to correctional facilities, to track the location of numerous individuals.   

    Yet, according to the FCC, even after being made aware of this unauthorised access, all four carriers continued to operate their programmes without putting in place reasonable safeguards to ensure that the dozens of location-based service providers with access to their customers’ location information were actually obtaining customer consent.   

    It wasn’t me 

    The mobile operators said they plan to challenge the fines. 

    According to Reuters, T-Mobile said the FCC “decision is wrong, and the fine is excessive. We intend to challenge it.” 

    In a statement the operator added: “industry-wide third-party aggregator location-based services program was discontinued more than five years ago after we took steps to ensure that critical services like roadside assistance, fraud protection and emergency response would not be disrupted.” 

    Verizon told Reuters it had worked to protect customers: When “one bad actor gained unauthorised access to information relating to a very small number of customers, we quickly and proactively cut off the fraudster, shut down the program, and worked to ensure this couldn’t happen again.” 

    Meanwhile, AT&T criticised the order as lacking “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.” 

    No doubt the operators are smarting as they compare the fines dished out by the FCC to what happened to Google when its Street View cars collecting personal data from wi-fi networks in a number of countries. 

    Nvidia buys AI edge cloud management company 

    The acquisition of GPU orchestration software provider Run:ai shows it wants the edge and the RAN

    Nvidia continues to cover all bases of the telco AI value chain after already positioning its vRAN solution as the anchor tenant for multipurpose edge cloud infrastructure. It is now spending $700m to acquire Israeli orchestration startup Run:ai which promotes efficient cluster resource utilization for AI workloads across shared accelerated computing infrastructure. 

    Run.ai’s forte is Kubernetes-based workload management and orchestration software, and the acquisition demonstrates Nvidia’s thinking on how the service provider edge will evolve – or at least how it wants the edge to evolve.  

    Run:ai enables enterprise customers to manage and optimize their compute infrastructure, whether on premises, in the cloud or in hybrid environments. The company has built an open platform on Kubernetes, the orchestration layer for modern AI and cloud infrastructure. It supports all popular Kubernetes variants and integrates with third-party AI tools and frameworks. 

    The start-up’s customers include some of the world’s largest enterprises across multiple industries, which use the Run:ai platform to manage data-centre-scale GPU clusters. 

    The Run:ai platform has some useful features too like the ability to pool GPUs and share computing power – from fractions of GPUs to multiple GPUs or multiple nodes of GPUs running on different clusters — for separate tasks. You can also add users, curate them under teams, provide access to cluster resources, control over quotas, priorities and pools, and monitor and report on resource use. 

    Nvidia said it will continue to offer Run:ai’s products under the same business model for the immediate future. And it will continue to invest in the Run:ai product roadmap, including enabling on Nvidia DGX Cloud, an AI platform co-engineered with leading clouds for enterprise developers, offering an integrated, full-stack service optimized for generative AI. 

    Telcos using Nvidia HGX, DGX and DGX Cloud will gain access to Run:ai’s capabilities for their AI workloads, particularly for large language model deployments. Run:ai’s solutions are already integrated with Nvidia DGX, DGX SuperPOD, Base Command, NGC containers, and its AI Enterprise software, among other products. 

     Keeping on top of AI ecosystem 

    Nvidia dominates the GPU market and that won’t change anytime soon. However, the silicon giant knows it needs to stay ahead of the pack and when it comes to telcos, custom chips are important given cloud computing and AI demands have grown increasingly specialised and that means tailored solutions to achieve optimal performance and better efficiency. Earlier this year Nvidia moved to head off the likes of AMD by establishing a separate business unit dedicated to building custom AI chips for external clients. 

    Around the same time, Nvidia announced it was forming the AI-RAN Alliance with the likes of heavyweights Ericsson, Nokia and Samsung. Nvidia believes that by consolidating their RAN workloads and other AI/ML applications onto a shared GPU platform, telcos can reduce hardware costs, simplify infrastructure and get more bang for the buck.  

    But using GPUs in RAN potentially means telcos could be locked-in to Nvidia’s ecosystem. However, as the founder and president of consultancy Mobile Experts Inc Joe Madden recently pointed out on LinkedIn, there is a bigger psychological barrier to Nvidia owning the RAN space: operators are unwilling to run their RAN workload on the same processor as anybody else’s Edge app.  

    “Somebody could deploy the GPUs in the edge, but the operators need to be convinced that they should run their L1/L2 on the Nvidia GPU, while other people use the same GPU for other purposes,” he said. “They are very risk-averse, so this is a challenge.” 

    Is AI the only way for 5G and automation?

    Partner content: Despite they hype around AI, many telco processes may not need it. Automation can be an incremental step on the way to AI, bringing immediate business benefits

    The telco industry knows that AI is essential for supporting 5G and for unlocking the significant B2B and B2B2C opportunities operators are targeting. But there is a danger of becoming obsessed with AI – many telco processes may not even require it. Automation offers an incremental step on the way to AI, while bringing immediate business benefits.

    There is no doubt that AI is the direction of travel for the telco industry, but that journey has only just begun. Sure, AI is essential for the successful automated operation of full 5G Standalone networks – but is it a prerequisite for automation in general? In this blog, we explore progress towards AI adoption – and consider how we can accelerate automation without AI.

    AI is key to unlocking the powerful benefits that the 5G Core is about to bring. The 5G network will be the most complex mobile infrastructure to date, offering the dynamic orchestration of services and network slices – each with their own performance and KPI parameters and demands – edge computing, virtualisation, and a whole new set of use cases.

    However, this will require AI-enabled automation to realise. That’s because machine-speed operation is required, with real-time, dynamic control – for which AI is required. AI also works hand-in-hand with Machine Learning (ML), which learns over time, enabling it to use the massive volumes of data generated by the 5G network to make decisions in real time based on multiple factors and variables, and to train itself over time leading to the optimisation of different processes and various outcomes.

    In sum, it will allow connected devices and machines, from smartphones to robotics to connected vehicles (and much more), to make their own decisions faster and more accurately than a human.

    AI can gather, categorise, group, and analyse data and identify patterns – impossible to see from a human perspective – and learn how to respond (improving over time) at a scale and speed never experienced before.

    What does AI bring to 5G?

    So, AI will unleash the potential of 5G SA. For example, AI will be able to collect, analyse and ‘understand’ data in real-time, enabling it to not only provide insights into network (and device and user) behaviour, but also use that data to make instant decisions that optimise network resources and dynamically allocate them to ensure that, for example, network slice KPIs and SLAs are met, or that mission-critical applications at the edge consistently meet performance requirements. Of course, over time AI will learn and improve (thanks to ML), and even find new ways of optimising the network.

    Automation delivers business benefits now

    It’s clear that the end goal is AI. However, it is imperative to understand that it is not the only way forward. Many telco processes and domains will not actually benefit from AI – this is where other forms of automation play a vital role – and are already doing so today. There’s plenty of scope to leverage automation before the full advent of AI-enabled processes.

    Indeed, there is a danger that operators will hold off on network optimisation projects while waiting for AI to mature. The truth is: Automation is providing rich and significant business benefits today, and it doesn’t have to be dependent on AI in many cases.

    Operators are securing significant benefits — today — by automating processes, sub-processes and by connecting different operating domains. Essentially, the right approach enables a step-by-step, incremental approach towards the ultimate goal of AI/Automation.

    There’s a huge amount that can be achieved without AI.  Automation is already a powerful tool that offers numerous and significant opportunities today. Many telco processes can be automated today, without AI. Automation uses reusable software that can already deliver significant efficiencies and reduced costs across multiple telco domains and processes.

    To find out more, explore key use cases, and make a start on your automation journey today, download the latest We Are CORTEX White paper here

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