Road to successful digital transformation: Platform, Ecosystem, and Continuous Reinvention

There aren’t many telecom operators in the world that have not yet realised the importance of digital transformation. However, too often we have seen piecemeal measures being taken, which almost invariably lead to unsatisfactory results.

To succeed in digital transformation, telecoms industry stakeholders need to collaborate and embrace a holistic approach, building from platform up, reaching out to partners beyond the conventional telecoms domains to develop an ecosystem that can address changing market demands, and continuously delivering the most up to date solutions to enable customer value creation.

It is a valid statement that every telecom operator is different from the next one, because the customers they are serving are different, by geography, by segment, or by demographics, often by all of these factors. On the other hand, there is also strong commonality between operators, because the fundamental requirements to support digital service provision that most of the customers demand are the same. These include data collection, storage, governance, and cross-domain data analysis, frictionless handling and delivery of content and service, accurate billing, payment settlement, and many more.

This makes it a classic scenario where the 80:20 principle should apply. In other words, about 80% of a typical customer’s demand to power their digital services can be satisfied by a strong unified platform. Such a platform should be able to satisfy most use cases, carry out common tasks like network planning, construction, maintenance, optimisation, and operations, and should be equipped with the full AI suite, including AI algorithm engine, one-stop AI development environment, and AI service operation.

The platform should also have the flexibility to enable partners to develop or customise their own use cases. This is where the other 20% of customer requirement should be addressed. Despite the strong commonality between operator demands, no single platform can satisfy all the different requirements, and these are better served by a vibrant ecosystem gravitated towards the platform. Such a “pull” effect can be achieved with the platform’s capability to enable, to certify, to support, to incentivise, and so on.

When it comes to incentives to attract more partners to the ecosystem, different revenue sharing schemes can be implemented. For example, if the customer’s demand can be satisfied by a partner’s standard solution, in other words, if the partner does not need to customise its solutions for the customer, revenues may be split equally between the platform and the partner. In cases where partners need to customise their solutions to meet customer needs, the partners should have a bigger share of the revenues. The platform can also set up an “application marketplace” to host apps developed by partners. In such cases, dominant revenue sharing models used by leading consumer and business application stores, for example Salesforce AppExchange should be applied.

One operational characteristic that has separated internet companies from conventional telecom operators is that internet companies would undergo continuous delivery of new features and functions while telecom operators’ networks and services are more static. This needs to change if telecom operators’ digital transformation is to succeed. Such continuous reinvention is not limited to functions and technologies of the digital platform either, it should also continuously improve the enablement of the ecosystem that the platform orchestrates. Equally important is that such continuous delivery of improvement should not only be frequent but also discreet, without interrupting customers’ business operation.

As we can see, successful interaction between the three key elements, the platform, the ecosystem, and the continuous operation, to create values for customers relies heavily on the strengths of the platform.

Source: Huawei

Huawei’s General Digital Engine (GDE) is such a unified big data platform. It is built with the company’s expertise accumulated and refreshed from over three decades’ experience of serving telecom operators and other customers around the world. Such expertise has been with our engineers but with the GDE platform, it is now digitised and can serve all the customers in a broad range of service scenarios. It is also equipped with Huawei’s artificial intelligence and machine learning capabilities to help customers cope with and predict market and business demands that go beyond the capability of manual calculation.

Such expertise and capability are continuously being updated, to make the platform more powerful and able to meet more customer needs, therefore simplifying the transformation, shortening the time to market, and optimising lifetime total cost of ownership. Huawei will keep updating the platform, at least twice a year, to enable partners to deliver customisation more easily.

The platform is also the anchor point of a broader ecosystem, working with operator customers to first engage qualified existing partners, then to recruit new partners.

Moreover, the platform, the ecosystem, and the continuous operation mode all live by these values:

  • Agility: always ready to adapt to new market and customer needs and opportunities
  • Openness: open-minded approach to new technologies and new approach to solve problems
  • Equality: treating all partners in the ecosystem equally and fairly

Apple and Google release jointly developed exposure notification API

Just over a month after they started working on it, Apple and Google have made their COVID-fighting framework available to public health authorities.

The key to using smartphones for exposure notification and contract tracing is giving them the ability to constantly sense each other. This is best done through Bluetooth LE, but both iOS and Android prevent apps from using Bluetooth unless they’re active, so a special workaround is required. That has been built into this framework, but is only available to apps that use it.

“Starting today, our exposure notifications technology is available to public health agencies on both iOS and Android,” said a joint statement from the companies. “What we’ve built is not an app—rather public health agencies will incorporate the API into their own apps that people install. Our technology is designed to make these apps work better.

“Each user gets to decide whether or not to opt-in to Exposure Notifications; the system does not collect or use location from the device; and if a person is diagnosed with COVID-19, it is up to them whether or not to report that in the public health app. User adoption is key to success and we believe that these strong privacy protections are also the best way to encourage use of these apps.”

The Verge reports that three US states (the response is much more decentralised over there) are already working on apps that use the framework. That piece also contains some handy explanations and links about the underlying tech and privacy implications. Apparently a total of 22 countries have received access to the API.

Turning this around so quickly is a good effort from Apple and Google, as was their quick decision to put business rivalry to the side for the time being, but then this sort of thing is one of their core competencies. The same can’t be said for health agencies, which is why the hubris of those, like the NHS in the UK, is so frustrating. They should stop trying to reinvent the wheel and go with the best technology available, which is almost certainly this.

Will remote working trends endure beyond lockdown?

It is most likely anyone reading this article is doing so from the comfort of their own home, but the question is whether this has become the new norm is a digitally defined economy?

With many economies and sectors dependent on a fully functioning telecoms network and a healthy digital ecosystem, perhaps we should be wondering why the idea of remote working is not more common. Many companies would say they are forward-looking and innovative, but the vast majority were forced through a digital transformation programme by the COVID-19 pandemic, not their own choosing.

The issue with coerced evolution is that there is a temptation to return to the ways of old, heading back to stodgy offices as the unambitious, unimaginative and uninspiring crave the familiarity of the known. Managers might say ‘teams work better when we’re together’ or ‘we’re an industry where it doesn’t work’, but this is probably a cover. The fact that many businesses still function during lockdown shows this is not true.

The office will never become extinct and face-to-face meetings will always be a requirement, but not every day; such resistance is simply an admission of inability to adapt to a changing economy or evolving society. Said managers would probably have fit in very well at Blockbusters when Reed Hastings pitched Netflix.

There are of course some jobs where working from home is an impossibility, but the fact that the economy

Today’s working practice is an extreme. But one would hope organisations at least take some of today’s mobility and incorporate into tomorrow’s operations. Some will revert to the analogue era, convinced that ‘hot desking’ is progress, but hopefully the majority will evolve and learn from this period of rapid transformation.

Of course, what is worth noting is that some serious changes will have to be made to ensure operations are in a healthy and sustainable position. Some companies might be managing the strain of remote working well today, but who knows which straw might be the fatal one.

A recent survey from Cato Networks suggested 55% of respondents experienced an increase of 75%-100% in remote access usage, while 28% saw usage shoot up more than 200%. VPN’s might be the most common form of remote access technologies, but products are bought for a purpose; most will not be designed for the surge above normal requirements.

67% of the respondents to the survey said complaints had been lodged from remote users, where connection instability and slow application response are the leading problems. Cato suggests the VPN might be a choke point in operations as it uses public internet to backhaul traffic to a datacentre or up to the cloud. In short, there will have to be a rethink on how money is spent and on what.

“…on the front-end you’d be looking at redundant VPN servers, ideally in each region where remote users operate,” said Dave Greenfield, Technology Evangelist at Cato Networks.

“For security, you’ll need antimalware and URL filtering. For the backend, you’ll need to connect and secure your cloud applications and resources. This says nothing about any of the management or troubleshooting tools that might be needed to support remote users.”

This is a disruption to business operations, and whenever there is a disruption, there are those who prefer the quieter life of the status quo. Every organisation has individuals who would rather this stay the same and this is the risk today; how many organisations will return to the pre-COVID-19 way of working, rendering these enforced digital transformation projects temporary.

Wind River, a software provider for connected systems and another company hoping to benefit from the pandemic transformation, is suggesting COVID-19 has caused 90% of enterprises to undergo some change in business processes, with 90% of respondents suggesting there has been an impact on being able to meet customer demands. Again, this might force companies back to old ways as some people simply don’t like challenges.

Interestingly enough, the Wind River research also suggests that IT spend on cloud-based application development has and will increase by 35% because of the coronavirus-enforced periods of lockdown. This increases to 62% in China. This shift to cloud-based technologies and processes should theoretically enable mobility in the work and flexibility in working practises.

Ultimately, the issue with some of these survey’s is that decision makers are the respondents, many of whom will say the right things because they believe they are the right things to say. This does not mean they are empowered to make changes or even have the staying power to see through any form of evolution. Sometimes it is best to ask the foot soldiers, those who fight in the trenches each day, those who are slightly more immune to the politics of business and may well give a more straight forward answer.

When asking Telecoms.com readers whether they thought the flexible and remote working conditions would stay, the results are quite interesting.

  • 50% said they would have to check into the office once or twice a week but could work from home
  • 33% believed they would be given complete freedom to work as they please
  • 6% stated they would have to go into the office to do their job properly
  • 6% thought the management team is not convinced by the idea of working from home and the company would revert to old business practices
  • And the final 5% said they would have to go into the office, but others in the company would be allowed to work from home

Of course, the adaptability of employees and employers is one on element of the equation, there will have to be the communications infrastructure in place.

What will be encouraging for all involved is the resilience of networks as internet traffic surges. These networks have not been designed with the current working dynamic in mind, but performance has been maintained.

According to data from Netscout, internet traffic jumped between 25-35% on home broadband networks from mid-March, when most lockdown protocols were being enforced. What is worth noting is this is a global average, some markets have experienced much higher peaks, for example Italy and the UK. But most importantly, networks have not failed because of the increased strain.

Interestingly enough, speaking at a Time Higher Education conference this week, Muhammad Imran, a Professor of Communication Systems at the University of Glasgow, suggested the work from home trends could be aided by the embracement of smart cities initiatives.

The ‘Accessible City’ is an idea which can help people work remotely. Imran has questioned why people should have to move to work in some jobs, a factor which could lead to an offer falling through or being turned down. Not everyone can move for a job, and for some low-income families it could be a barrier to entry.

Remote and flexible working is not only an opportunity to increase employee welfare, but it could also democratize some careers, breaking down social barriers and opening up opportunities for those who would have previously been overlooked.

Another element to consider is whether people are actually better at their jobs when they work from home.

Research from Harvard Business School suggested a 4.4% increase in output from those who have been empowered to work from home, while software company Prodoscore has said productivity could go up by as much as 44%. Numerous research papers have pointed to remote working being a plus to employers, as well as a benefit to employees.

Despite this research, which has been around for years, most executives have resisted the temptation to evolve working practices, leaving the idea of remote and flexible working to be cultivated by others, most of the time digitally native organisations. Some companies, and people, are stuck in their ways and they will not be as attractive to potential employees as others.

Some will embrace the coerced digital transformation, and some might revert back the ways of old. It will be interesting to see which business leaders are stuck in a previous generation.


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Can the sharing economy (ride-sharing, short-stay accommodation etc.) survive COVID-19?

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Ericsson under pressure to sell Iconectiv operations – report

Ericsson is reportedly under pressure from activist investors to sell OSS/BSS business unit Iconectiv, a deal which could be worth more than $1.5 billion.

According to Bloomberg, activist investor and Ericsson’s largest shareholder Cevian Capital is kicking up a fuss. Several new ideas have been presented to the management team, as well as demands to sell Iconectiv, a business unit which provides solutions for network and operations management, numbering, registry and fraud prevention.

Ericsson has said it would not be able to provide confirmation or comment for market rumours.

With 5G deployment plans being slowed in recent months thanks to the on-going COVID-19 pandemic, vendors are starting to feel the pinch. Although Asian radio equipment vendors seem to be surviving the slowdown, European rivals are seemingly under pressure.

Nokia recently said COVID-19 had a €200 million negative impact on the business, with revenues for the Networks unit down 6% year-on-year, while Ericsson reported a group revenue decline of 2%.

Ericsson CEO Börje Ekholm has put a brave face on the situation, and it did appear investors were rallying around the Swedish telecom infrastructure vendor. The divestment rumours would suggest otherwise, however.

While there has been a positive reaction from the financial markets following Ericsson’s most recent earnings call, share price has dropped 4% the weekend albeit there has been a minor recovery today (May 4).

Under Ekholm, Ericsson has been stripping back investments in areas which would be considered outside core competencies. Mobile telecoms infrastructure is front and centre of the business, which might please some of the more traditional investors who wear the scars of attempted diversification, but there is such a thing as going too far.

Such a move is certainly in-line with the slash and crash Ekholm strategy to double down on network infrastructure, but it still remains to be seen whether such a restrictive and finite approach to business is sustainable in the long-term.

Google and Apple begin testing COVID-19 exposure notification API

Just a couple of weeks after revealing their intention to collaborate over a contact tracing app, Google and Apple have made the first API available to developers.

There doesn’t seem to have been a formal announcement, but plenty of US tech media such as Tech Crunch and the Verge are reporting on it, implying they have been notified directly. It’s being called the ‘exposure notification’ API, which seems to be designed to provide a more specific description as well as making the whole thing sound a bit less intrusive and Orwellian.

The reports say more details will be made available tomorrow, but access to the code will remain limited to public health authorities. While this creates concerns about how the apps will function, especially with respect to privacy, it also makes sense as a fragmentation of the contact tracing app ecosystem would massively diminish the effectiveness of each one.

The political implications of this unprecedented collaboration between the two companies the dominate the global smartphone market aren’t limited to privacy concerns. Opinion is divided about whether the decentralised approach advocated here or a centralised one in which governments gather data from smartphones is best.

While it may lose some of the public communication tools offered by the centralised approach, we feel the Google/Apple approach is better for the simple reason of trust. If people think a contact tracing app will be used to spy on them and arbitrarily punish them, they’re much less likely to install and use it. The efficacy of such an app relies on the participation of a large proportion of the population, so the number one priority should be maximising uptake.

Best of breed, not best of suite

Telecoms.com periodically invites third parties to share their views on the industry’s most pressing issues. In this article, Martin Morgan, VP Marketing, at Openet, looks at how the BSS market is evolving.

For all operators around the world, cost continues to be a big concern—whether that be the cost of 5G infrastructure, or the cost of maintaining or increasing their subscriber base. Any potential cost saving operators achieve can have a big impact on their overall profitability. This is forcing operators to rethink old ways of working. It is propelling operators towards a more open, collaborative way of working that is seeing smaller, independent network vendors displacing major NEPs. Change is happening across the entire network – in the core, in the RAN and in supporting OSS and BSS.

The emergence of open RAN is a key example of this change. The trend of operators embracing and deploying general-purpose, vendor-neutral RAN hardware and software is changing the game. Moving away from vendor-centric RAN solutions is presenting massive cost savings to operators—savings few can ignore.

As always, intelligent business practice means optimising all available efficiencies on offer to deliver maximum value to shareholders. Operators that innovate most expansively when it comes to new approaches will reap the benefits. The rise of network and digital transformation projects has encouraged operators to experiment and reinvent themselves. In many cases, this new culture of freedom and experimentation is at loggerheads with the agenda of the major NEPs. Open RAN is an example of this freedom to think and act differently and there is a similar trend taking place with BSS.

Putting the operator first

BSS has traditionally been made up of large, costly systems that are slow to move, and difficult to upgrade. These were often offered by large vendors, as part of mega contracts to deliver multiple solutions across an operator’s network. While this approach may have seemingly made the process of technology procurement more “convenient”, the reality is that it has also left operators with solutions that are incapable of keeping pace with market dynamics and meeting subscriber expectations. Luckily, the move to more open architecture and adjunct systems are overcoming these limitations and offering the speed and agility to evolve with new technologies, like 5G, and enable operators to launch and monetise new services in super quick time. Digital BSS now very much exists for operators to maximise the digital 5G age.

This new approach is changing how vendors view their operator customers, and how operators perceive their vendors. We’re seeing more and more vendors work together, as opposed to against each other, with different vendors bringing their best “assets” to the operator table. We’re also seeing the creation of multi-vendor ecosystems and environments within operator networks that encourage the open RAN principles of innovation, performance and standardization in a way that the traditional ‘best of suite’ approach simply didn’t.

So what’s changing for vendors? Well, quite simply, they’re having to focus on things that were once deemed less important, for example: quality, efficiency, and flexibility around integration. They’re now having to think about what operators want from them, rather than what they have to offer. We’re also seeing a push towards adopting open APIs and open architectures, that are helping operators drive lower integration costs for BSS software, lower cost to serve and reduce the length of development cycles.

What being open truly means

For operators, this move towards a new way of working is very good news. Today, more than ever, operators need to have the agility to deploy new services quickly and easily. The days of waiting for months for a new service, feature or offering to be deployed are now over. Operators need to be able to act fast and build new offers to react to changing consumer trends. Doing so will not only ensure they are able to monetise their current and future network assets, but can also play an important role in boosting subscriber engagement, preventing the operator from being seen as a utility or a “dumb pipe”.

Operators around the world are already reaping the rewards of embracing this open, agile way of working. For example, in Indonesia, leading operator Telkomsel built and launched an entirely new sub-brand targeting its growing Gen-Z population in just 18 weeks. Telkomsel built by.U using open digital APIs, open digital architectures and an ecosystem of vendors all working together to implement an end-to-end BSS suite. This kind of agility helps operators innovate quickly and react to changes and trends occurring across their subscriber base—in this case, Telkomsel knew it needed a new, different offering to appeal to a younger audience and for that a new brand was critical.

The fact that Open RAN and its principles are being applied to other parts of the network has many upsides for operators. What may have once been seen as a risky approach to deploying new technologies, may today be a safer alternative. In an open, multi-vendor environment, managed by an SI, an underperforming vendor can easily be swapped out without placing strain on the rest of the operation. This gives operators the freedom to choose and select who they work with and on what terms, and reduces the cost and headache associated with being stuck in lengthy impractical vendor-operator relationships.

Ultimately, this open collaborative approach is all about giving operators the right tools to become the digital providers of tomorrow.

 

Martin Morgan is the VP Marketing at Openet. With 30 years’ experience in mobile communications software, Martin has worked in mobile since the early days of the industry. He’s ran the marketing teams for several BSS companies and served on trade association and company boards. In that time, he’s spoken at over 50 telecoms conferences worldwide and had a similar number of articles published in the telecoms trade press and served on trade association and company boards. At Openet Martin is responsible for marketing thought leadership and market interaction.

Nokia raises its OSS game

In the build up to MWC 2020 Nokia has got one of its announcements in early, in the form of the ‘cloud-native’ Network Operations Master software.

Turns out 5G is pretty complicated and at times there’s so much going on that you can’t possibly expect flawed, obsolete humans to stay on top of it. That’s why you need greater automation, we’re told, and that has to start with the network operations software, or OSS in old money. Nokia prides itself on its software, so the launch of a new OSS suite is presumably a fairly big deal for them.

“With 5G forcing traditional functions, like revenue management and customer care, to the cloud and helping drive software deeper into the network, communication service providers need a modern approach to performing network operations that is automated, more efficient and scalable,” said Ron Haberman, CTO at Nokia Software. “The Nokia Network Operations Master delivers these capabilities and allows our customers to perform lifecycle operations with ease, efficiency, and confidence.”

Network slicing will make automation and a much higher level of cloudy flexibility critical features of any network software. NOM also covers AI, machine learning, etc and is designed to just take care of all the plumbing, allowing network operations centres to focus on the stuff only people can manage, if such a thing still exists.

“5G networks will require significantly more operations automation than past networks in order to achieve promised levels of efficiency and new service support,” Nokia got Dana Cooperson, Research Director at Analysys Mason, to say. “Nokia’s Network Operations Master is a cloud-native network management system that is underpinned by machine learning and automated actions and provides the types of tools mobile network operations teams need now for 5G.”

Here are a couple of vids that may tell you more.

Wearables and services are paying off for Apple

The iPhone is still the biggest contributor to the monstrous profits Apple claws in each quarter, but efforts in wearables and services are balancing out the company.

While Apple is not a company which is going to go bust at any point in the foreseeable future, the dependence on the performance of the iPhone was leaning onto the unhealthy side. With more consumers leaning towards second-hand, refurbished devices, or extending the life of products due to the eye-watering price of new iPhones, there was a threat to profitability.

For the most recent quarter, there are no worries about the profitability of Apple, however. Total revenues for the three-month period, including Christmas sales, stood at $91.8 billion, a 9% increase from the same period in 2019. Net income set a new record of $22.2 billion, while international sales accounted for 61%.

That said, efforts over the last few years to supercharge alternative revenue streams and diversify the profit channels have certainly been paying off. The iPhone is still king at Apple, but it is evolving into a different company.

Quarter Product Revenue Software and Services Revenue Ratio
Q1 2020 79,104 12,715 86.2/13.8
Q1 2019 73,435 10,875 88.2/12.8
Q1 2018 79,768 8,471 90.4/9.6

For the purpose of continuity, we have only selected Q1 for the above comparison. This is a quarter which contains the Christmas period and therefore revenues are almost incomparable to the rest of the year.

As you can see, there is a clear trend of Apple become less reliant on hardware for revenues and profits, with the Software and Services becoming more than a bolt-on bonus for investors. $12.715 billion is an amount most companies would be happy to call group revenues for the year.

Interestingly enough, even in the ‘product’ segment, the team is becoming less reliant on the iPhone to drive revenues and profits.

Quarter iPhone Mac iPad Wearables and Home
Q1 2020 55,957 (60.9%) 7,160 (7.8%) 5,977 (6.5%) 10,010 (10.9%)
Q1 2019 51,982 (61.6%) 7,416 (8.8%) 6,729 (8%) 7,308 (8.7%)
Q1 2018 61,576 (70%) 6,895 (7.9%) 5,862 (6.6%) 5,489 (6.2%)

In short, diversification of revenues is an excellent way forward for the Apple business and demonstrative of the power of the Apple brand.

Apple is a brand which certain consumer identify with, and such is the innovation and creativity of the Apple marketing department, loyalty has been almost cult-like. Cross-selling alternative products when the consumer is so heavily invested in the brand and ecosystem is a much simpler task, this will be one of the reasons Apple’s services division is becoming so successful, but it also explains the growing wearables segment.

Wearables is a family of technologies which has struggled through the years. The first smart watch, in its current form, was released in 2011, though the segment has never really gained the traction to make it an attractive business. Apple has been persisting with its own portfolio of smart watches for years, but it does now appear to have turned a corner.

“Apple Watch had a great start to fiscal 2020, setting an all-time revenue record during the quarter,” CEO Cook said during the earnings call. “It continues to have a profound impact on our customers’ lives and it continues to further its reach as over 75% of the customers purchasing Apple Watch during the quarter were new to Apple Watch.”

Apple is no-longer simply satisfying product refreshment cycles but attracting new customers into the smart watch bonanza. The more smart watch customers there are, the more normalised the product becomes, which then compounds the success, especially with more digital natives entering their 20s and collecting bigger salaries.

Apple is a company which is defined by iPhone. This will not change, such is the success of the product and the importance of the smartphone in today’s society, but diversifying the business was always viewed as critical to expanding the profitability of the firm. Apple is doing a remarkable job of capturing new revenues.

Open-minded RAN key to 5G success

Telecoms.com periodically invites expert third parties to share their views on the industry’s most pressing issues. In this piece Steve Papa, CEO of Parallel Wireless, makes the case in support of the OpenRAN initiative.

Years of consolidation have left the telecoms industry with three Radio Access Network (RAN) technology giants: Huawei, Ericsson and Nokia. But, these players risk becoming obsolete as the telecoms industry starts demanding networks that are open and flexible.

The RAN is a significant expense for mobile operators, in what is already a capital-intensive industry. Legacy RAN networks, built using the technology of the major vendors, is typically hardware centric and designed in silos for each generation (e.g. 2G, 3G, 4G) of connectivity. The technology is ‘closed’ by its nature, which means that it is incompatible with other vendors. Subsequently, networks have been very difficult to adapt and upgrade, with the hardware giants dictating the timings and cost of any maintenance and installation.

As we move towards the introduction of 5G, the industry is now beginning to realise that the economics of building the RAN need to change. 2019 saw significant moves towards OpenRAN, a new model of building radio networks, based on a software-centric and open infrastructure. The benefits of OpenRAN were illustrated by Vodafone’s announcement that it would be opening its entire RAN in Europe to OpenRAN vendors during TIP Summit in November. Both the O-RAN Alliance and the Telecom Infra Project (TIP) are leading the industry towards OpenRAN, with the O-RAN alliance driving industry standards, and TIP driving deployments.

Understanding the value of OpenRAN

The OpenRAN approach is achieved by separating hardware and software in the network. This helps networks support open interfaces and common development standards, to deliver multi-vendor, interoperable networks. This gives operators the flexibility to cost-effectively deploy and upgrade their networks, reduce complexity, and deliver coverage at a much lower cost. OpenRAN also makes it easier for network to support dynamic spectrum sharing (DSS) technology, which allows LTE and 5G New Radio technology transmission at the same time. DSS is key to the early adoption of 5G smartphones, which will rely on both 5G and LTE transmission.

Analysts’ projections from ReTHINK show that the costs of building 5G Macro-cell networks will fall by 50% if deployments incorporate open architectures. This saving equates to hundreds of millions of dollars in the overall total cost of ownership, and will help mobile operators extend investments and become more profitable.

In developed markets, 5G roll-out is in full swing and operators are spending considerable amounts building out their next generation networks and marketing them to the public. However, current connectivity standards cannot be neglected, and operators need a new, software-based approach that will allow them to deploy and run 5G technology efficiently alongside their 3G an 4G networks. This is why OpenRAN is so appealing to operators such as Vodafone, as it enables to manage all connectivity standards using a software interface.

Meanwhile, operators in developing markets are currently focussed on scaling 2G, 3G and 4G to rural and urban areas that don’t have internet. But developing markets have a low average revenue per user, so operators in these markets won’t survive with the approach of building and managing siloed networks for each network generation, as CAPEX and OPEX will skyrocket.

Internet para Todos (IpT), a wholesale operator owned by Telefonica, Facebook, and Latin American banks IDB Invest and CAF Bank is also driving momentum. It recently opened talks to bring a second operator on board, after connecting more than 650 sites and covering 800,000 people (450,000 actual customers) with a 4G rollout in rural Peru. Meanwhile, MTN, the South Africa based operator, recently announced that it is deploying OpenRAN technology in 5,000 sites as it looks to unify its 2G, 3G and 4G networks, to save costs for itself and its customers.

The OpenRAN initiative takes off

In 2020, the momentum behind OpenRAN will continue to grow as other operators realise how they can reduce costs, drive more competition between technology vendors, and stimulate higher levels of innovation in the industry.

OpenRAN clearly has the support from major players in the industry, however, it is vital that operators consider the most effective technology partner to enable the OpenRAN vision. OpenRAN must address all generations of mobile connectivity standards together – 2G, 3G, 4G and 5G. If MNOs decide to only introduce OpenRAN for 4G and 5G, they will still be faced with managing separate legacy and new networks, which contradicts the aims of the initiative.

Being able to support all generations of mobile connectivity under the same OpenRAN software umbrella is crucial to providing reliable connectivity for all and allowing the transformative benefits of 5G to be realised. The industry is hungry for change, and open-minded operators are the ones which will succeed. That might mean the traditional ‘big 3’, don’t stay the big 3 for long!

 

Steve has worked in the technology industry for over 20 years and is the founder and CEO of Parallel Wireless. Previously, as founder and CEO of Endeca, he built the business ultimately leading to Oracle acquiring the company. He was part of the team creating Akamai that developed global Internet content distribution – now carrying peaks of 15 terabits/s of web traffic on any given day – and led the team at Inktomi that reimagined the network cache to create carrier class caching. Steve also previously worked with AT&T Teradata. He has a BS from Princeton University and MBA from Harvard Business School.

Huawei promises to launch P40 with Google service replacement, reports say

Huawei has told the media that P40, the company’s next flagship smartphone will be launched with its own mobile service suite but will be built on Android 10 instead of its own HarmonyOS.

Richard Yu, CEO of Huawei Technologies Consumer Business Group, told a group of journalists from the French media that the company’s next flagship smartphone, the P40 (and likely P40 Pro), will be launched at the end of March 2020 at a special event in Paris. The exact date is yet to be announced. Yu promised the media representatives, who were on a press tour to the company’s headquarters in Shenzhen, that the phone will be in a design never seen before (“jamais vu”), with improved photography quality, better performance, and boosted automation.

Yu also confirmed that the phone will be built on Android 10 with Huawei’s customised user interface, EMUI. This is consistent with the company’s earlier announcement that its own operating system, HarmonyOS, will not be powering smartphones or tablets in 2020. Instead it will be used on other connected devices, including smart TVs and wearables.

Meanwhile, the Indian newspaper The Economic Times quoted Charles Peng, the CEO of the Huawei and Honor brands in India in Huawei’s Consumer Business Group, as saying that P40 will come equipped with Huawei Mobile Services (HMS), in place of Google Mobile Services (GMS). Both brands from Huawei as well as Oppo, another Chinese smartphone maker, were reported to have approached app developers to make the top apps in India available for HMS as well as for Oppo’s own Color OS.

“We have our own HMS and are trying to build a mobile ecosystem. Most of the key apps such as navigation, payments, gaming and messaging will be ready soon.” Peng told The Economic Times. Frandroid, a French media outlet, noted that HMS should be ready at the same time as the launch of P40.

The Economic Times reported that Huawei offers developers up to $17,000 for making their apps available for HMS, supported by Huawei’s $1 billion global fund the company announced earlier this year. Oppo’s coffer “to develop a “new intelligent service ecosystem” is reported to amount to $143 million.

It is worth highlighting that having the most popular third-party apps in a certain market (India, China, for example) available for HMS is different from bypassing GMS. The core Google services and APIs, including Chrome browser, YouTube and YouTube Music, Play Store, Google Drive, Duo, Gmail, Maps, as well as Movies and TV, are optimised to work with the Android operating system. Most importantly, there is Google’s fundamental “search” capability that powers everything else.

Developing its own operating system as well as an overall mobile ecosystem has long been on Huawei’s card. As Ren Zhengfei, Huawei’s founder, told media earlier, the work, as well as in-house chipset development capability, started long before Huawei ran afoul of the US government. However, the company has learned it the hard way that such tasks are more difficult than building a nice phone. Richard Yu had to renegade on his own promises more than once. Shortly after Huawei was put on the Identify List Yu said that the company’s own operating system would be able to power its new smartphones by the end of this year or the beginning of next. That has now been officially denied when HarmonyOS’s positioning was clarified. Yu also said, prior to the launch of P30 in September that there would be a workaround solution to load GMS on the new smartphone. That did not happen either.

Consumers may also find Huawei’s narrative less than convincing. As IDC’s Navkender Singh put it to The Economic Times, “There will be a breakdown of the conversation that Huawei or Honor devices will have OS and app store issue. It is going to be very tough for Huawei/Honor to sell the phone based on their own suite.”