Tuesday 6 December 2022

Emergency call services, telcos urge EU to protect telecoms networks from power cuts

MILAN/STOCKHOLM/PARIS, Dec 5 (Reuters) - Europe's top telecoms operators and an emergency services lobby on Monday urged Brussels to shield mobile and fixed grids from power cuts, a letter reviewed by Reuters showed, as worries grow about a loss of telecom networks during widespread blackouts.

Europe is facing potential energy rationing and power outages in the wake of the war in Ukraine, putting some key services such as emergency calls and infrastructure like telecoms networks to the test this winter. The joint letter sent on Monday is the first formal step by the European Telecommunications Network Operators (ETNO) and the European Emergency Number Association (EENA) to pressure the European Union executive body to step in.

ETNO represents former phone monopolies such as Germany's Deutsche Telekom (DTEGn.DE), Spain's Telefonica (TEF.MC) and Telecom Italia (TLIT.MI), while EENA speaks for more than 1,500 emergency services representatives over 80 countries.

3 minute readDecember 5, 20223:12 PM GMTLast Updated a day ago

Emergency call services, telcos urge EU to protect telecoms networks from power cuts

, Supantha Mukherjee and Mathieu Rosemain

A mobile-phone relay mast is seen behind a pylon of high-tension electricity power lines in Reze near Nantes, France, November 14, 2022. REUTERS/Stephane Mahe

Advertisement · Scroll to continue

Some of Europe's top telecoms executives, including the boss of Orange, have recently voiced their concerns on the matter.

Register for free to Reuters and know the full story

The joint letter sent on Monday is the first formal step by the European Telecommunications Network Operators (ETNO) and the European Emergency Number Association (EENA) to pressure the European Union executive body to step in.

Latest Updates

"Should telecommunications networks be subject to planned outages, citizens would risk not having access to communications services for the duration of the outage, including emergency communications," the letter signed by the heads of EENA and ETNO said.

If there is any rationing over the winter, certain services such as hospitals, police services and food production facilities would be prioritised under current plans to ensure the least possible impact if blackouts occurred.

Monday 31 October 2022

Government announces cutting-edge new telecoms lab for Solihull

New research for Birmingham Tech Week shows West Midlands is one of the UK’s fastest growing tech sectors - valued at £15.3 billion, up from £11.5 billion in 2021
Hiring by Birmingham tech firms is up by a fifth in 2022 and a third across the West Midlands, with over 2,300 startups and scaleups in the region

A new state-of-the-art UK Telecommunications Lab will be based in Solihull, creating dozens of high-skilled jobs for the region, Tech Minister Damian Collins has announced today.

The first of its kind in the country, the Lab will act as a secure research facility bringing together telecom operators, suppliers and academics to research and test innovative new ways of boosting the security, resilience and performance of the UK’s mobile networks. It will help close the digital skills gap locally as well as nationally by creating dozens of specialised jobs in telecoms and cyber security.

New research out today, which has been commissioned by the government for Birmingham Tech Week, also shows a large increase in the number of tech startups and scaleups across Birmingham and the West Midlands.

There has been a 21.3 per cent increase in tech jobs in Birmingham in the seven months to July 2022, rising to 31 per cent across the West Midlands region, according to analysis by smarter job search engine Adzuna for the UK’s Digital Economy Council.

There are now over 144,000 people employed in tech startups and scaleups across the West Midlands, with over 56,000 in Birmingham alone. The boost to hiring follows a sharp increase in the value of West Midlands tech companies, with the region’s tech ecosystem now valued at £15.3 billion, up from £11.5 billion in 2021, according to new data from Dealroom.

The analysis shows the West Midlands has become one of the UK’s biggest digital sectors - with health, transport and sports tech companies flourishing in particular. Since 2020, West Midlands tech companies have raised over £850 million in venture capital funding.

Tech Minister Damian Collins said:

After this summer’s stunning Commonwealth Games it is great to feel the buzz in the city yet again in Birmingham Tech Week.

Fast-growing firms are cementing Birmingham’s status as a tech powerhouse - boosting jobs and spreading economic growth right across the West Midlands.

As a result, there is no better home for the new UK Telecoms Lab, which will turn the region into a centre for expertise and innovation in the security of next-generation mobile networks.

New cutting-edge telecoms test lab

The ever-increasing speed and reliability of mobile and broadband networks has supercharged the UK’s economy, but it also means we are more dependent on telecoms infrastructure.

As the demand for 5G grows and next-generation 6G is on the horizon, having a new national research facility in one location will enable telecom companies and suppliers to test their equipment - such as radio network infrastructure and the software which underpins it - in a realistic environment.

The UK Telecoms Lab will help get faster mobile technology rolled out quicker and ensure people can continue to have full confidence in UK networks by identifying national security risks and vulnerabilities and ensuring vital equipment and software are protected against cyber attacks.

The lab will help new businesses enter the UK telecoms market by testing to ensure equipment is fully ‘interoperable’, meaning it can connect to kit supplied by different manufacturers, which is increasingly important to the government’s £250 million strategy to diversify the UK 5G telecoms market.

The Lab will be based in the Metropolitan Borough of Solihull. The government will announce further details about the Lab in due course.

Andy Street, Mayor of the West Midlands, said:

Tech is one of the most exciting and fastest growing sectors in our region. This fantastic announcement that Solihull will be the home of the new UK Telecoms Lab yet again underlines the strength of this important sector for us here in the West Midlands. The Lab will bring a wide range of stakeholders together to drive innovation and create high quality new jobs for local people.

As we mark Birmingham Tech Week, it’s a great time to remember that we are at the cutting edge and - with our tech sector already valued at over £15 billion - we have an exciting future ahead of us.

Monday 3 October 2022

Market reaction to 45% tax U-turn, Telecom Plus pleases again and Tortilla shares burnt by bad news

“The pound enjoyed a welcome bounce after Kwasi Kwarteng manoeuvred his first U-turn as Chancellor by scrapping the proposed cut to the 45% tax rate, with sterling jumping from $1.1088 to $1.12646 in less than two hours,” says Russ Mould, Investment Director at AJ Bell.

“The U-turn is important for two reasons. First, the market was panicking about the cost of the tax cuts and how that would push up Government debt and in turn raise the prospect of reduced public spending and benefit cuts.

“Removing one of the key components of this seemingly flawed plan provided some relief, and you saw that in how the pound rallied and 10-year gilt rates briefly fell below 4%.

“The other factor to consider is that Kwarteng has effectively admitted to a massive policy error only weeks into his tenure as Chancellor. If Liz Truss is to establish any credibility as Prime Minister, can she afford to have anyone on her team who has effectively scored an own goal in the opening game?

“The fact that both the pound fell back and gilt rates started to move higher after the news had been digested is the market’s way of saying there are still plenty of problems with the Government’s finances, state of the consumer and business, and economic outlook. With or without the 45% tax cut, the country still faces challenging times with individuals and companies finding life a lot harder.

“The FTSE 100 fell 1% to 6,827, dragged down by miners, financial services and consumer goods specialists. Many of these earn in dollars and so a stronger pound – if even if it just a temporary move – is bad for them.

“The FTSE 250 fared even worse, falling 1.1% to 16,983, with travel companies, tech and Asian-related investment trusts among the worst performers. Most of those will be linked to gloomier global economic activity rather than simply what’s happening in the UK.”

Telecom Plus

“The utilities market has been a tough place in 2022 if you’re not one of the big operators but Telecom Plus has managed to forge a path to growth, helped by weaker rivals falling by the wayside.

“The company’s Utility Warehouse brand has chimed with hard-pressed households – offering bundled energy, broadband and insurance services at attractive prices (at least in relative terms).

“Telecom Plus’ appeal to customers goes beyond price as it enables them to just deal with one supplier – helping to keep a lid on the dreaded life admin. The energy price cap has also helped on the affordability front.

“Buying energy in the wholesale market could still be a challenge in the coming months with a cold winter expected but Telecom Plus has demonstrated its ability to survive and thrive so far this year, helping to give investors at least some confidence in the forward outlook.”

Tortilla Mexican Grill

“Surging meat prices have taken a slice out of margins at Mexican fast-food chain Tortilla – overshadowing news that the company’s expansion plans are ahead of schedule.

“Tortilla joined the market a year ago and in the early days as a public company it’s important not to make any big errors, as they will be seized on by the market and it can be difficult to regain credibility once it’s been lost.

“While Tortilla had previously said it had the ability to flex its offering thanks to a simple menu based on readily available basic ingredients, it could have done a better job of preparing investors for the risks of being exposed to rising protein prices.

“What’s even more disappointing is a weak summer sales performance. Tortilla’s proposition should have been suited to a summer when the Covid shackles were finally off.

“While it blamed overseas holidays, the heatwave and rail strikes for the disappointing performance, it probably makes more sense to draw the conclusion it is finding it hard to stand out in a crowded Tex-Mex market. With cost-of-living pressures mounting, there is an increasing risk Tortilla could fall flat.”

Tuesday 30 August 2022

Telecom, energy sectors see sharpest earnings cut after Q1

The April-June quarter of 2022-23’s (FY23’s) earnings season has wrapped up. Subsequently, the benchmark Nifty has seen only a marginal cut in its FY23 and 2023-24 (FY24) earnings estimate, but telecommunications (telecom) and oil and gas sectors have seen sharp cuts.

The Nifty earnings per share (EPS) is estimated to grow 9 per cent year-on-year to Rs 785 in FY23, against an earlier expectation of 13 per cent growth to Rs 820.

Meanwhile, FY24 earnings estimates are revised downwards, marginally from Rs 935 to Rs 925.

The FY23 EPS for telecom stocks has been revised downwards by 27 per cent, while that of oil and gas has been cut by 18.2 per cent. With the exception of these two sectors, most other sectors have seen single-digit cuts in earnings.

The FY23 EPS for the automotive sector has been revised upwards by 28 per cent, underpinned by pick-up in two-wheeler demand and an improved outlook for passenger vehicles.

“A major disappointment came in from the oil and gas sector wherein marketing margins came in lower than estimated. However, capital goods, metal and mining, and the pharmaceutical space surprised on the positive side,” says a note by ICICI Direct.

The brokerage believes that the cut in earnings can be offset by a slight rerating of the Nifty Index by virtue of a thaw in commodity prices, consequent positive impact on inflation, and resultant modest rate hike.

Thursday 28 July 2022

Spectrum auction and outlook for telecom stocks

The telecom stocks are back in the limelight amid the spectrum auction by the government. But are they worth your hard-earned money? Let's find out

Spectrum auction has brought focus back on stocks of telecom service providers.

According to reports, Sunil Mittal-controlled Bharti Airtel, Mukesh Ambani-owned Reliance Jio and Gautam Adani have collectively bid around 1.45 trillion rupees to buy 5G airwaves on the first day of India’s largest-ever spectrum auction that began on Tuesday.

The bidding and demand seen on the first day itself was 80 per cent higher than the government’s internal estimates of 80,000 crore rupees.

According to a Jefferies' note, telcos may look at the 700 megahertz band more closely as it is the primary band for 5G globally.

It is available pan-India with its price is similar to the 800/900 megahertz bands; and got provisional bids worth 39,270 crore rupees on day-one of the auction.

The note also pointed out that the spectrum supply is nearly 20 times higher in 2022 as compared to 2021 - mainly on account of the 5G band auction availability.

Analysts say the spectrum spend by market leaders Reliance Jio and Bharti Airtel is significantly higher than expected, requiring the industry to grow faster in order to justify such large investments.

According to ICICI Securities, “Higher spectrum investment has been seen to depress the return on invested capital for the industry globally. We remain cautious on the higher investments by Indian telcos.”

However, Edelweiss Securities says that given the improving cash flows amid rising revenues from data, the telecom companies will be able to manage the annual payouts for spectrum. In a note to Business Standard, it says, “These bids translate into Rs 12,600 crore annual pay-out versus our expectation of Rs 8,430 crore. Considering strong and improving profitability, we do not see this as much of an issue.”

At the bourses, Bharti Airtel and Vodafone Idea have underperformed and are currently trading below their respective 200-day moving averages, which indicates underlying weakness.

[Byte of Avdhut Bagkar, Business Standard]

On Thursday, the markets will react to the outcome of the US Federal Reserve’s decision on interest rates. Futures & options expiry of July series later in the day, too, will keep traders busy.

Monday 4 April 2022

Standalone 5G networks will enable true 5G game changers such as slicing & ultra-low latency

We had the pleasure of interviewing Vodafone's Kerstin Larsson-Knetsch ahead of next week's Connected Germany, taking place in Mainz on April 5-6

Can you introduce yourself and your role?

My name is Kerstin Larsson-Knetsch, I am responsible for consulting and solution design at Vodafone Business Germany. Staying true to our motto "Co-Create. Digital. Future" my team and I co-create digital and innovative solutions with our enterprise customers. Part of our portfolio are 5G solutions, which we implement in all kinds of industries (e.g. automotive, media, smart factory and health).

What have been the biggest developments in Germany’s rollout of next-gen mobile communication networks over the last year?

The 5G rollout in Germany started in 2019 with the first 5G call by Vodafone Germany's CEO Hannes Ametsreiter. Since then, we have seen the fastest rollout of a new mobile network generation so far. Today, over 45 Mio people in Germany already benefit from 5G Giga-speed which means that the original rollout targets have been exceeded. Germany now holds a leading position in Europe and the network is growing fast.

However, 5G coverage and speed is just one dimension. We also need to fully exploit the technological possibilities of 5G as fast as we can. What do I mean by that? So far, most of the 5G network in Germany is based on "non standalone" (NSA) 5G technology. This means that while the radio antennas are already 5G, the underlying core network is still based on 4G technology. However, true 5G game changers like slicing or ultra-low latency can only be achieved with a full standalone 5G network. Therefore, Vodafone Germany just launched 5G standalone as the first operator in Europe in hundreds of locations and cities and we will constantly grow our footprint.

Another important aspect of 5G are mobile private networks (MPNs) for our enterprise customers. This is a step change for many industries as MPNs help to simplify the network environment and connect production systems in a much more flexible way. Just look at our 'Vodafone Redbox', which is a complete network-in-a-box that can be deployed easily and keeps data save at the customer’s premise.

Overall, the pandemic has underlined the importance of a strong fixed and mobile network infrastructure as the backbone for society, digitalisation, innovation and future success. It is key that all responsible parties - politics and regulation, MNOs, hardware vendors and other players - work together even more effectively to bring us to the top.

How should connectivity for enterprises continue to evolve within Germany?

Over the last two years, we have seen a high interest in 5G from our business customers. We have conducted a range of "proofs-of concept" with customers from different industries, such as testing autonomous driving with customers like Porsche at our 5G mobility lab in Aldenhoven near Aachen. We see amazingly innovative ideas and concepts. The university hospital in Düsseldorf is building a 5G hospital campus. One of the many impressive use cases utilizes augmented reality to provide 3D animations of organs for doctors to improve surgery and diagnostics. We also see a lot of activity in the agricultural sector where 5G combined with IoT and AI can help to increase harvest yield while at the same time contribute to environmental protection. These are great examples of how 5G can contribute to overcome some of the most pressing challenges of our time like climate crisis, health, nutrition or mobility.

The 5G ecosystem matures and therefore we will see much more innovation for instance more devices will become available. Slicing will be a major driver: Companies will be able to apply different parts of the network to different use cases in their factory - for example one slice could be used for AGVs, another for video surveillance. Our vision is to allow customers to simply rent a network service for a certain time on a website, for example when they need specific coverage for a construction site. We are building the prerequisites for network-as-a-service to orchestrate network capability and on-top-services so that customers can manage their connectivity demand much more flexibly.

Many of these ideas are being developed together with customers and partners in our 5G labs and in the future also in our new R & D centre in Dresden. I strongly believe that innovation comes from collaboration and co-creation.

What are you most looking forward to at Connected Germany?

After two years of mainly remote meetings, I look forward to networking and meeting people from the industry in person, being inspired and coming home with new ideas and contacts.

Monday 14 February 2022

Telecoms chiefs urge EU lawmakers to press tech groups on internet investment

Europe’s largest telecoms providers have called on EU lawmakers to compel Big Tech groups to contribute more to the cost of expanding internet infrastructure, as streaming and other entertainment services take up an ever-increasing share of bandwidth. The chief executives of Deutsche Telekom, Orange, Telefónica and Vodafone accused video streaming, gaming and social media groups of piggybacking on billions of euros of investment in internet infrastructure, saying that the “burden must be shared in a more proportionate way”, in an open letter published in the Financial Times. “We now urgently call upon legislators to introduce rules at EU level to make this principle a reality,” said the letter, which was signed by José María Álvarez-Pallete, chair and chief executive of Telefónica; Tim Höttges, chief executive of Deutsche Telekom; Nick Read, Vodafone chief executive; and Stéphane Richard, outgoing chair and chief executive of Orange. Most telecoms groups are investing heavily to expand or upgrade services from copper to fibre and on 5G deployment, but have for years struggled with weak margins and falling valuations. Although carriers have made similar requests to European lawmakers in the past, the companies said they were encouraged by a European Commission proposal that “all market actors benefiting from the digital transformation . . . make a fair and proportionate contribution to the costs of public goods, services and infrastructures”, made in a declaration on digital rights last month. “I suspect we’ll see more positioning like this, particularly during the French presidency of the Council of the EU given they have been fairly critical of Big Tech in the past,” said Matthew Howett, an analyst at Assembly Research. In their letter, the chiefs note that video streaming, gaming and social media from just a handful of digital platforms accounts for more than 70 per cent of all traffic on networks. Their plea echoes a recent spat in South Korea over who should contribute to maintenance costs incurred by broadband providers — a move that was sparked by the surge in online traffic from the successful Netflix series Squid Game. Such was the popularity of the dystopian show that South Korea’s SK Broadband, owned by the country’s largest mobile carrier SK Telecom, last year sued Netflix to cover the cost of the surge in traffic, saying that it had been forced to upgrade its network. The quartet warned that their sector’s retail markets “are in perpetual decline in terms of profitability”, and cautioned that “network operators are in no position to negotiate fair terms with these giant platforms due to their strong market positions, asymmetric bargaining power and the lack of a level regulatory playing field”. “Consequently, we cannot make a viable return on our very significant investments, putting further infrastructure development at risk,” they said. “If we don’t fix this unbalanced situation Europe will fall behind other world regions, ultimately degrading the quality of experience for all consumers.” Video streaming companies have countered that they should not be singled out to pay more for a network, citing the concept of ‘net neutrality’ — the idea that network providers should not be allowed to discriminate or charge companies differently based on use or content. They also argue that they invest heavily in their own servers to ensure they can get content to consumers without clogging up the network. Although Deutsche Telekom’s share price has risen 12 per cent over the past five years, Orange’s has slipped 25 per cent, Telefónica’s is down more than 50 per cent and Vodafone’s is down nearly 30 per cent.

Wednesday 5 January 2022

US: Telecom operators agree to 5G delay in U-turn decision

Two major US telecom operators, AT&T and Verizon, agreed on Monday evening to a further two-week delay to a planned rollout of 5G networks across the country.

The decision followed a request by Transportation Secretary Pete Buttigieg on behalf of aviation companies that were worried about the interference of 5G signals on aircraft safety devices.

The two companies had previously rejected the request after having already delayed their launch by a month.

"We've agreed to a two-week delay which promises the certainty of bringing this nation our game-changing 5G network in January," Verizon said in a statement after talks with government officials and the Federal Aviation Authority (FAA).

Problems of frequency

Buttigieg and FAA chief Stephen Dickson wrote to Verizon and AT&T on Friday asking them to hold off on their nationwide launch for a maximum of two weeks.

The move was triggered by concerns of "unacceptable disruption" to flights due to possible interference from 5G signals.

The C-band frequency used by 5G is close to that used by altimeter devices on planes that measure the aircraft's altitude.

Airlines are worried about serious impacts on their flights. At the same time, the two telecom companies are eager to launch their new service after having spent billions on licenses to use the frequency.

Limits on 5G around airports

"We know aviation safety and 5G can co-exist and we are confident further collaboration and technical assessment will allay any issues," an AT&T spokeswoman said in a statement.

Although they had initially rejected the request, both companies agreed to limit the new 5G services around major airports for six months so as to limit any possible problems for aircraft.

They had been hoping to launch in many US cities on Wednesday.

fptelecoms

Tuesday 6 December 2022

Emergency call services, telcos urge EU to protect telecoms networks from power cuts