Connectivity Chronicles #20240705

Market Analysis: Understanding Telecom Competition?

Nokia is acquiring optical networking vendor Infinera for $2.3 billion, a 28% premium on Infinera’s June 26 share price. The deal will be 70% cash, with the rest in Nokia stock. This move aims to strengthen Nokia’s optical market in North America, complementing its global positions. Nokia also plans to sell its Alcatel Submarine Networks business. The acquisition boosts Nokia's optical network scale by 75%, enhancing its market competitiveness.??

Service Spotlight: Telecom Offerings and Solutions??

TDS Telecommunications will launch a nationwide mobile virtual network operator (MVNO) service, TDS Mobile, for its internet customers through a partnership with National Content & Technology Cooperative (NCTC) and software provider Reach. The service will offer national 5G coverage. This move follows TDS's plan to sell its existing mobile business to T-Mobile. TDS aims to provide reliable, high-quality mobile service at competitive prices.?

Telenor and BT are taking distinctive approaches to integrate artificial intelligence (AI) into their telecom operations. Telenor has set up Skygard, a separate entity focused on AI innovation, partnering with AWS for cloud technology and investing significantly in data centers. This "ambidextrous" strategy allows Telenor to navigate faster innovation cycles, crucial in AI development. Meanwhile, BT collaborates with ServiceNow to deploy AI applications like Now Assist, enhancing customer service efficiency by 55%. ServiceNow's AI initiatives demonstrate a shift towards integrating AI into telecom infrastructure, promising significant operational improvements and customer service enhancements.?

Market Trends: Exploring Telecom Innovations?

The MVNOs World Congress in Brussels highlighted the market's resurgence, emphasizing themes like neo-telcos, differentiated offerings, and the rise of eSIM. James Gray noted the MVNO market's $80 billion valuation, projected to grow to $130 billion by 2030. AI and eSIM are driving performance and customer acquisition, targeting high-end users. The event underscored personalization and data-driven insights for enhanced customer engagement and growth, with optimism about future opportunities and market expansion.?

AST SpaceMobile announced plans to utilize a segment of the 850 MHz band from AT&T and Verizon, ensuring full geographical coverage across the continental U.S. for its space-to-cellphone communications service. This arrangement allows AST to deliver seamless connectivity without reallocating spectrum from terrestrial networks. CEO Abel Avellan highlighted that users will experience consistent service regardless of carrier. AST aims to replicate similar agreements globally, leveraging low-band spectrum and a constellation of LEO satellites for extended coverage.?

Technology Outlook: Exploring Telecom's Future??

Telcos are facing the imperative to transform into professional software development entities to align with evolving technology trends. At a recent industry event, AT&T's CTO emphasized the shift from hardware to software layers within networks, urging telcos to take control of their product roadmaps and technology deployments. However, experts caution that attracting top software talent may prove challenging due to compensation differentials. Telcos must also adapt to a more flexible investment approach akin to software development cycles, contrasting with traditional capital-intensive strategies. Despite ambitions, practical obstacles suggest full transformation remains a formidable task.?

Global startups are tackling the broadband connectivity challenge with innovative approaches. Althea uses blockchain for customizable internet payments, Astranis deploys GEO satellites for global coverage, CSquared builds fiber networks in Africa, Transcelestial offers laser-based broadband with CENTAURI, and QTI pioneers quantum-secured networks with Quell-X. These initiatives aim to bridge the digital divide, particularly in underserved regions globally, by revolutionizing how internet access is delivered and secured.?

Customer Experience Focus: Enhancing Telecom Services?

Robocalls increased by 1.7% in May, reaching nearly 4.5 billion calls, averaging 144.5 million daily. Despite this rise, May's volume was 11.7% lower than the previous year, continuing a seven-month trend of year-over-year declines. Legitimate calls, like medical reminders, exist, but unwanted calls remain problematic. Scam calls decreased by 10%, while telemarketing calls rose by 8%. FCC efforts likely contributed to the decline. Alex Quilici, YouMail CEO, noted the progress with calls significantly lower than a year ago.?

Regulatory Insights: Understanding Telecom Regulations

The FCC is considering a proposal requiring mobile providers to unlock phones within 60 days of activation, aimed at enhancing consumer freedom and competition. This move allows easier switching between carriers, fostering greater flexibility for consumers and reducing switching costs. FCC Chairwoman Jessica Rosenworcel emphasized the need for clear, nationwide rules to empower consumers' choices. The proposal seeks feedback on issues like applying unlocking to existing contracts, its impact on phone discounts, and potential benefits for smaller providers and the secondary phone market. Companies like T-Mobile and TextNow already cater to users with unlocked phones, offering streamlined subscription processes and innovative service plans.

Unlock the power of telecom data with our advanced analytics solutions. Gain actionable insights to drive your business forward. Contact us today at Contact.Media&[email protected].