TDC hoovers up Danish spectrum in latest auction

The Danish Energy Agency has completed its latest spectrum auction, with TDC running away with the majority of the available assets.

Of the 20 blocks in the 700, 900 and 2300 MHz frequency bands, TDC won 14, the maximum available to the telco at this auction. 3 Denmark acquired two 10 MHz blocks in each of the 700 and 900 MHz bands, while TT Network, Telia and Telenor’s joint venture, two 5 MHz in the 700 MHz and two 10 MHz in the 900 MHz band.

“Several frequency blocks provide higher speed, longer range and stronger indoor coverage, which gives us a unique position to strengthen and develop the best coverage in Denmark,” said TDC CEO Allison Kirkby.

“TDC has connected all over Denmark for almost 140 years, and the new licenses ensure that Danish consumers, companies and society enjoy new experiences, services and the many opportunities that 5G offers.”

With ambitious plans to rollout 5G across Denmark by the end of 2020, this is certainly an aggressive sign of intent from TDC. The telco paid NOK 1.6 billion, roughly €210 million, for its haul, while 3 Denmark paid a total over roughly €68 million. TT Network paid €14 million for its 700 MHz assets and nothing for 900 MHz, though it will be charged with coverage obligations.

As it currently stands, according to Ovum’s WCIS database, TDC is currently the market leader with 42% market share, TT Network controls roughly 40% of subscriptions, while 3 collects the remaining 18%.

While these prices might seem ludicrously cheap in comparison to other spectrum auctions which have been taking place around the bloc, Denmark’s population of 5.8 million ranks it at 111th worldwide, while its land mass ranks at 130th.

Telia extends 5G reach to Estonia

Just a few weeks after lighting up a 5G network in Sweden, Telia has taken the connectivity euphoria across the Baltic Sea to Estonia.

In partnership with TalTech University, Telia has turned on Estonia’s first 5G network as a test bed for the university, as well as local companies and start-ups. The 5G network is a permanent installation using standardized and commercial 5G products.

“We hope to see new and exciting future services and business models built upon 5G,” said Kirke Saar, CTO at Telia Estonia. “Thus, different stakeholders are welcome to test the possibilities of the new technology at the TalTech University. It is the perfect place for this, combining technical knowledge, smart people and cooperation experiences with very different partners. Additionally, 5G technology supports our newly opened NB-IoT network which now has its first commercial user.”

“It´ll open limitless opportunities for communication in virtual world,” said Rector of TalTech Jaak Aaviksoo. “TalTech, Telia and Ericsson take this step together because we believe in the creativity of both scientists and students in using this platform and generating new ideas. 5G means a thousand steps into the future for the whole Estonia.”

This is of course not Telia’s first venture into the 5G world, having opened up the network at KTH the Royal Institute of Technology in Stockholm, earlier this month. This network has been poised as the first building block for 5G in Sweden.

The first task for the TalTech network will be a 4K live stream on the university campus of the network opening party from the Tallinn Old Town Christmas Market, which was recently voted the best in Europe.

The partnership will not limit the ambitions of those wishing to play around with the 5G network, though one of the first initiatives will focus on autonomous driving. TalTech´s self-driving car made its first official journey in September, though progress will surely be accelerated with the 5G input.

The next stage of the autonomous initiative will be establishing a vehicle-to-vehicle communication platform with Telia, while also optimising the vehicle structure with Silberauto, one of the biggest automotive companies in the Baltics.

Ericsson and Telia hit go button on Sweden’s first 5G network

Telia and Ericsson jointly switched on the first 5G network at KTH the Royal Institute of Technology in Stockholm, with plans for a commercial launch across Sweden in 2020.

The partnership between the pair will see 5G applications tested at the university campus, creating a new innovation centre for the country. Interestingly enough, the pair claim network at KTH is permanent and constitutes the first building block in Sweden’s future 5G network.

“To have access to Sweden’s first 5G network here on campus is an amazing opportunity,” said Professor Jan Gulliksen, VP for Digitalization at KTH. “It gives our researchers, teachers and students a head-start when it comes to understanding and developing this new technology ahead of its wider launch. This is exactly the kind of partnership we believe helps stimulate research-driven innovation.”

“Two years ago, we promised to bring 5G to Helsinki, Tallinn and Stockholm during 2018,” said Johan Dennelind, CEO of Telia. “So, I’m especially proud to launch the first 5G network in Sweden at KTH today.

“This is going to be a truly dynamic test environment where not only large businesses and entrepreneurs from our partnership program but also researchers and students can continue to develop solutions for the connected society so that Sweden can remain at the forefront when 5G is launched commercially in 2020.”

For Sweden, this partnership demonstrates why the Nordics are often the envy of Europe when looking at connectivity and the digital economy. With two of the world’s connectivity heavyweights calling Sweden and Finland home, it should come as no surprise the local telcos play a key role in the development of future technologies.

According to Opensignal’s latest State of LTE report, Norway consistently features as one of the top performing countries worldwide, while Sweden and Finland are not too far behind. With 5G on the horizon it would be a fair bet to suggest these countries will be one of the best performers, though perhaps not realising the dream as quickly as countries such as South Korea and the US.

Telia finds cause for optimism in its latest numbers

Swedish operator group Telia has a spring in its step and decided to upwardly revise its outlook following better than expected Q3 earnings.

Adjusted EBITDA rose 1.8%, in the third quarter, with margin up slightly too. In his accompanying comments Telia CEO Johan Dennelind said the company’s cost reduction programme is going well and that he’s confident whatever financial objectives they set for the year will be achieved.

“We are clearly on track to deliver the net cost reduction of SEK 1.1 billion that we have set out as a priority for the year,” said Dennelind. “Our operational free cash flow continues to be strong, having generated SEK 10.2 billion over the last 12 months. Our adjusted EBITDA is growing in six out of seven countries, with Finland, Norway as well as our central units being the main drivers. The performance is a combination of strong execution of the cost ambition as well as delivering synergies and stronger propositions to customers from the acquisitions we have done in recent years.

“No doubt comparisons will continue to be tough in the fourth quarter, especially in Sweden. Still, given the performance so far, with adjusted EBITDA having grown by 4 percent excluding currency effects, we up our full year EBITDA guidance from ‘in line or slightly above the 2017 level’ to ‘slightly above the 2017 level’.”

Telia seems to be on a similar journey to its compatriot Ericsson, which also expressed cautious optimism when it announced its Q3 numbers yesterday. It’s early days but if vendors and operators continue to sound so chirpy we might be inclined to start drawing hasty conclusions about a 5G-fueled uptick in the telecoms cycle.

Telia Q3 2018

Telia pays the most in Finnish 5G auction

Finland offered up nearly 400 MHz of mid frequency 5G spectrum to its MNOs and Telia bought the most expensive block.

The whole of the 3410-3800 MHz frequency range, split into three blocks of 130 MHz each. After just a few days of bidding Finland’s three MNOs concluded their business as follows:

Frequency band 3410–3540 MHz (A)

Telia Finland

€30,258,000

Frequency band 3540–3670 MHz (B)

Elisa

€26,347,000

Frequency band 3670–3800 MHz (C)

DNA

€21,000,000

The slightly lower frequency stuff apparently has a bit more value than the rest and it’s worth noting that Elisa is the market leader by subscriber number so it looks like Telia has decided to make a strategic move to close the gap in the 5G era. While Finland is admittedly a much smaller country, €77 million seems like a small return for the government when you compare it to the frenzied bidding we’re seeing in Italy.

Telia declares Finland is ready for the 5G promised land

Finland is set to be one of the first nations in Europe to experience the wonders of 5G as Telia targets the beginning of 2019 for commercial launch.

With tests in the Telia 5G Arena in Helsinki completed, the first base stations in the city operational and the first phase of roll-out set to be completed in the Autumn, Telia has confidently proclaimed full-scale commercial operation will be possible in 2019, just as soon as the 3.5 GHz 5G frequency auction has been conducted.

“For two years we have prepared for 5G with demos and trials,” said Jari Collin, CTO at Telia Finland. “We set up the 5G Finland cooperation network to create and pilot 5G services with our partners, and now we can continue exploring the possibilities of 5G in a real live network.”

It is certainly a bold promise to make, though seeing as this launch will be prior to the availability of 5G devices, who is going to know whether those crafty Finns are telling the truth or not. The on switch could well be hooked up to a couple of dozen pink and green light-bulbs spelling out ‘viides sukupolvi’ and nothing else; who would be able to tell?

Perhaps the reason we can joke about the Finns having a network and no flashy devices is because it’s probably a better way to have it than the other way around. Some might mock the idea of boasting of 5G with no consumer devices to make use of it, but upon the launch of said devices, consumers in other nations will own very expensive, glitzy smartphones, connected to an imaginary 5G network.

Progress has been steady in the Telia business. It is now boasting of getting to a point where all 5G network components are available, from 3GPP specification-based radio access to high capacity IP networks, virtualized core and the massive computing capacity offered by its Helsinki data centre.

“We are pleased to begin the deployment of the first 5G base stations in Finland – the Nokia AirScale radio access –  and we will continue working with Telia Company to identify the technologies and services that meet the demands of consumers and industries in the 5G era,” said Jan Lindgren, Head of Telia Customer Team at Nokia, a key partner of the project.

While the 5G posturing has largely been left to telcos in the US, China or Korea, Telia has slipped through the peloton relatively undetected, and could in fact be one of the first worldwide to hit the on-switch. Considering the rather humble progress made by the Telia team, who would have thought we would have been saying that.

Telia continues on the TV acquisition trail

Only a matter of days after Telia announced the purchase of GET and TDC Norway to bolster its convergence play, the Swedish telco has confirmed the acquisition of Bonnier Broadcasting.

Telia has been gearing towards the convergence business model for years, with content as a notable prong, though the acquisition work this week brings the promise closer to reality. The new business will be a separate entity within Telia, with a comprehensive ethics and compliance framework already in place to maintain editorial independence.

“The debate which has been taking place ahead of today’s announcement shows that Telia Company has several important roles to play in the Swedish society,” Telia said in a statement. “It is a role that the company takes most seriously and one that, as we move forward, will continue to be handled responsibly. Telia Company therefore welcomes shareholders and other affected parties within politics and society to take part in constructive dialogue around these issues.”

While the convergence business model is a logical one, there are some concerns in Sweden about the takeover, mainly surrounding government influence in broadcasting. The acquisition will have to be handled carefully, somewhat explaining Telia’s compulsion to explicitly state there will be no changes within the organization once it is brought into the telcos family.

The Swedish government is currently the largest shareholder in the Telia business, controlling a 37% stake, and already controls the largest traditional broadcaster in the country, SVT. Should the government have direct/in-direct influence over two of the major broadcasters in the country, some might question whether this is a sensible decision. With a general election scheduled for Sunday 9 September 2018 in the country, the timing of the deal could make this a much more politically sensitive position.

Although some might suggest this is a paranoid distraction, you only have to look across to other countries with far more ‘proactive’ governments, to understand why some critics are sensitive to the idea.

Telia bags GET and TDC Norway for €2.2 billion to bolster convergence game

Telia has announced the acquisition of GET and TDC Norway for roughly €2.2 billion as the telco looks to strengthen its hand in the convergence business.

The Norwegian business of Danish operator TDC encompasses GET, a provider of fixed and TV services, as well as the B2B business in Norway. The team claims there are more than 518,000 households and businesses connected to the fiber-based network, as part of a total of one million private and business customers who use the TV and broadband services.

“It is with great excitement and commitment that we announce the agreement to acquire GET and TDC Norway,” said Johan Dennelind, President and CEO of Telia.

“It will create a leading convergent operator for both consumers and enterprises in Norway which can compete in the market with a lot of attractive and new products and services. This transaction is beneficial for the Norwegian customers and society. We are building a great company with passionate employees where we have invested heavily in our mobile network which now covers 98 percent of the country. As part of Telia Company, GET will continue to invest in the rollout of broadband and fiber.”

Telia has been making progress in the Norwegian market with 2.3 million mobile subscriptions, a market share of roughly 42%, with the company’s 4G network covers 98% of the country. Telenor is leading the country’s mobile stakes, though investment in fibre and video assets will certainly give Telia impetus to make moves in the market.

Nokia, Intel and Telia test out smart factory in Finland

Nokia, Intel and Telia have teamed up to test out industrial applications of 5G for manufacturing at the Nokia Conscious Factory in Oulu.

The trials were aimed at making use of the ultra-low latency and high-bandwidth capabilities of 5G with machine-learning to enhance production in manufacturing environment. Taking place at the end of last month, the trio claim it is a world first in terms of testing out the ‘Industrial 4.0’ idea, focusing on automation and data exchange in the manufacturing process. In other words, how to do it more efficiently and with less employees.

Nokia deployed the network, using its 5G AirScale and Multi-access Edge Computing (MEC) platforms, while the AirFrame data centre solution was equipped with Intel’s Xeon Scalable processors, to deliver network edge and core cloud flexibilities and capabilities. The trial also used the Intel 5G Mobile Trial Platform as the end-user device as well as an integrated video analytics application from Finnish software start up Finwe.

This project is another example of edge computing starting to get a bit more buzz. To reduce latency and improve performance, the use of Multi-access Edge Computing together with 5G allows data to be processed close to where it’s needed. The Finwe video application was used to monitor and analyse a video feed of a process on one assembly line, while machine learning applications alerted the assembly line operator of any inconsistencies in the process so they could be corrected in real-time. In the second trial, Nokia and Telia demonstrated the ability of the technology to enable Telia to offer cloud remote service delivery for business customers.

“Under our ‘5G Finland’ initiative we are working with companies such as Nokia to accelerate the fourth industrial revolution in the country,” said Janne Koistinen, Director of 5G Program at Telia Finland. “In this trial we could show how we can extend our service offering to new industry customers to enable efficiencies that will advance their production capabilities.”

Nokia waves Telia win in Ericsson’s face

Nokia thinks it’s important that everyone knows its cloud-native packet core solution has been chosen by Swedish operator group Telia Company.

There is, of course, intense competition between Finnish Nokia and Swedish Ericsson, so securing the business of Telia must surely carry some extra weight for both of them. TeliaSonera is the clear leader in the Swedish market and Telia Finland is a solid second there, behind Elisa. It’s also a significant player in the Danish and Norwegian markets so it’s fair to say Telia is the daddy of the Nordic telecoms market.

So the news that Nokia has been selected as the sole vendor for packet core for the entire group, including Estonia and Lithuania, is a pretty big deal for Nokia and conversely a blow for Ericsson. Whether anyone else should care is another matter but this is a B2B telecoms trade title and we have to cover this stuff so just back off, OK? Having said that Nokia used this opportunity to shoehorn a bunch of related product propaganda that we don’t feel like repeating, so what can you do?

“There is tremendous potential with the continued growth of mobile broadband, and with new services and 5G in the near future,” explained Sri Reddy, SVP of Nokia’s IP and optical business. “To take advantage of these opportunities, Telia must deploy a new generation cloud-native packet core that is able to connect to a greater variety of devices and deliver a broader range of services over multiple access technologies.

“Nokia uniquely combines field-proven cloud-native software, cloud technologies and mobile and IP routing expertise to help Telia speed up service delivery, deliver greater scale and capacity and operate its network more efficiently. Plus, because our cloud packet core is built on our robust, field proven router software (SROS), it provides Telia with a solid foundational framework for the evolution of its 4G and the path forward to 5G.”

See? They always squeeze the propaganda in somehow. Just when I thought I was out, they pull me back in! And, of course, Nokia wasn’t about to let us off the hook without name-dropping 5G a couple of times. Touché Nokia – well played.

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