The announcement of a series of reforms [1] for the Indian telecom sector represents a game-changer for both the digital and wider economy.

While the growth of mobile broadband in India has been an incredible success story, with 4G networks available to almost the entire population and consumers paying some of the lowest prices for mobile services in the world, a combination of low ARPUs and high regulatory costs threatened the financial sustainability of the sector. This would ultimately be to the detriment of Indian consumers.

It is not an exaggeration to say the reforms are a lifeline, as many have argued. But the impacts could be far more reaching, by enabling operators to make the investments needed to upgrade networks and rollout the 5G services which could form the lifeblood of India’s digital ecosystem.

How so? A moratorium on statutory dues and rationalisation of bank guarantees provide a vital short-term boost to liquidity that the sector currently needs, especially Vodafone Idea.

But looking further ahead, these measures combined with the revised definition of adjusted gross revenue (AGR) and removal of usage charges on future spectrum acquisitions, will provide operators with improved means to invest in their networks. The extension of spectrum licences from 20 years to 30 years will also allow operators to plan for long-term investments and business strategies. This is especially important for 5G, which will require more intense investments than previous generations. Meanwhile, the removal of the additional charge for spectrum sharing, along with operators being permitted to surrender spectrum after ten years, should promote more efficient use of spectrum.

Furthermore, while the structural reforms have received most attention, the procedural reforms which were also announced should not be overlooked, particularly know your customer (KYC) changes which will permit online self-KYC. This will significantly reduce subscriber acquisition costs and make it easier for consumers to get a new mobile connection. These processes could potentially allow more lower-income and rural populations to get online, helping to close the country’s digital divide.

It is therefore not surprising the response to the reforms has been overwhelmingly positive, across all operators. As quoted in local media:

Sunil Bharti Mittal, chairman of Bharti Enterprises: “We congratulate and thank the government, who under the decisive leadership of the Honourable Prime Minister Shri Narendra Modi, has undertaken these seminal reforms to lift an industry that’s at the core of his Digital India vision. The latest reforms ensure that the industry is able to invest fearlessly and support India’s digital ambitions.”
Gopal Vittal, MD and CEO of Bharti Airtel (India and South Asia): “These fresh reforms will further boost our efforts to invest in this exciting digital future and enable us to be one of the leading players in India’s digital economy.”
Mukesh D Ambani, Chairman of Reliance Industries: “Telecom sector is one the prime movers of the economy and the key enabler for making India a Digital Society, I welcome the Government of India’s announcement of reforms and relief measures that will enable the industry to achieve the goals of Digital India. I thank Honourable Prime Minister for this bold initiative.”
Nick Read, CEO of Vodafone Group: “We commend the resolve shown by the Government of India, under PM Modi’s leadership, to find a comprehensive solution that would support a competitive and sustainable telecom sector in India. Although the sector has struggled for many years, we expect that the government’s constructive initiative announced today, along with the continued strong support of the telecom minister and finance minister, will be the beginning of a new era for India’s digital ambitions and for Vodafone Idea’s continued contribution to creating an inclusive and sustainable digital society to the benefit of all citizens.”

What next?
While the operators are right to be positive on the reforms, it’s also true that more needs to be done.

The reforms are a critical first step in helping the country to meet the Digital India vision. Now, it is important the government builds on them to ensure the long-term sustainability of the sector. This will enable 5G to play a central role in India’s effort to become a $5 trillion economy.

A key area for further reform is spectrum policy [2]. Despite India’s large geography and population, operators have less spectrum than in most other countries. Yet when taking revenues into account, they have paid almost nine-times more per unit over the past ten years. Therefore, in the short-term, a key priority is for the government to release sufficient amounts of 5G spectrum in the next auction, now expected in early 2022 [3], at modest reserve prices. The market is getting ready, with many Indian consumers already owning a 5G device and all of the main operators having started network trials [4]. An enabling spectrum framework could accelerate the rollout and adoption of 5G in metro and rural areas.

In the longer-term, it is important that a full spectrum roadmap is developed, detailing what will be available when.

This will help operators to better-plan their investments. In particular, given the capacity requirements of 5G and expected demand by Indian consumers, the government will need to release around 2GHz of mid-band spectrum for 5G, in addition to mmWave spectrum [5]. Not only will this improve network quality and allow all consumers to access 5G, but it will also reduce the need for cell site densification. This will enable more efficient and environmentally-sustainable network deployment, helping operators to reduce their carbon footprint and meet their emissions targets.

Operators in India are already moving forward on ambitious green strategies [6], but support for those agendas is important given the critical importance of addressing climate change.

– Kalvin Bahia – principal economist, GSMA Intelligence

The editorial views expressed in this article are solely those of the author and will not necessarily reflect the views of the GSMA, its Members or Associate Members.

[1] https://pib.gov.in/PressReleasePage.aspx?PRID=1755086
[2] https://www.gsma.com/spectrum/wp-content/uploads/2021/09/India-5G-Spectrum.pdf
[3] https://www.mobileworldlive.com/asia/asia-news/india-spectrum-auction-inches-forward
[4] https://www.mobileworldlive.com/featured-content/top-three/vodafone-idea-latest-to-trial-5g
[5] https://www.gsma.com/spectrum/wp-content/uploads/2020/11/mmWave-5G-in-India.pdf
[6] https://www.mobileworldlive.com/asia/asia-news/airtel-sets-ambitious-emissions-reduction-target

In recent years, the environmental, social, and governance (ESG) agenda has made its way to the top of the list of priorities for most organisations.

Unsurprisingly, the question of how organisations can support efforts to tackle climate change sits at the centre of many of these ESG discussions and has driven the mobile industry to be one of the first to align itself with the goals of the 2015 Paris Climate Agreement.

Green transformation
Did you know?
In February 2019, the GSMA board, on behalf of the entire industry, set an ambition for the mobile industry to reach net zero carbon emissions by 2050 [1] at the latest. This ambition has been supported by the launch of science-based pathway and milestone targets, with step-by-step guidance for operators to align their carbon reduction targets to the pathway.

This spurred a clear commitment from the industry: as of April, operators representing 65 per cent of the mobile market (by revenues) had committed to science-based targets for carbon reductions and net zero emissions. This is also echoed in our operator survey results [2], where more than 50 per cent of operators surveyed identified sustainability/energy efficiency as extremely important and one of the top network transformation priorities.

Some operators have even set ambitious timelines to achieve net zero emissions as early as 2025 or 2030.

Against this backdrop, operators are identifying and adopting numerous energy efficiency measures such as use of renewable energy sources, infrastructure-level improvements like new lithium-ion batteries, AI-enabled sleep and wake patterns of BTS to save energy, power efficient equipment, and modernising networks through retiring old and legacy networks.

These measures are paving the way for operators to achieve their energy efficiency targets in the net zero journey and they are a reason why green telecom remains in the news on a daily basis.

So what?
An increasing number of operators are committing to reduced carbon emissions, making progress on their goals and experimenting in the name of further efficiencies. This not only helps to combat climate change, but also has positive opex implications for operators.

For a telecom operator, maximum energy consumption happens at the network level, mainly the RAN (ranging from 70 per cent to 90 per cent of total energy consumption), which translates into a bigger slice of network costs allocated towards energy expenses (can be as high as 90 per cent). The energy efficiency measures implemented by operators can therefore drive significant cost savings.

But what else does the industry need to do to achieve these targets?

Operators work with multitude of partners (infrastructure vendors, third-party data centres and outsourced business operations) to deliver their products and services. It is therefore imperative for all the partners involved to work together, and not in silos, to align and achieve the industry-wide targets of net zero emissions. An overarching framework should bring all of the partners together and align their goals and targets.

At the same time, a list of universally agreed KPIs, along with their definition and reporting criteria is important to measure progress and allow an apple to apple comparison for players.

The absence of properly-defined KPIs reporting criteria married with erroneous data availability of energy consumed at every point in the network makes things difficult and complex.

Done right, this will be a win-win for both the global economy and telecom industry.

Related Reading:
Going Green: benchmarking the energy efficiency of mobile [3]
Energy efficiency in the 5G era: going lean, going green [4]

The year of network sunsets
Did you know?
Network sunsets are also one of the measures used by operators in their energy efficiency initiatives, but also with wide-ranging impacts on device sourcing, roaming agreements, VoLTE rollout and more.

The advent of LTE networks also marked the dawn of network sunsets. Starting around 2009/2010 with operators shutting down CDMA networks, the rationale was expansion of 3G networks or support for newer 4G networks. But, it was only around 2015/2016 when operators truly started warming to the concept of network sunsets to support their LTE launch or expansion plans.

Now, as 5G goes global, 2021 is the year when we will see the concept gaining full momentum. Compared with 43 networks shutdowns in the last six years, closure of 35 networks will be completed or planned in 2021 alone. In the five year period from 2021-2025, a total of 69 networks from 61 operators are expected to be shut (see chart, below, click to enlarge).

[5]

So what spurred the growth in network sunsets and what is the one key thing operators need to do right to make a network sunset a success?

The decommissioning of legacy networks offers a number of benefits to operators:

The spectrum can be refarmed (regulations permitting) for the launch and expansion of new technologies.
It contributes to the energy efficiency goals of operators: the standards and infrastructure requirements for newer technologies allow for less energy consumption per bit of data, like with the NR standard of 5G.
Legacy networks usually operate in low- and mid-frequency bands while more than 50 per cent of 5G launches have been in the 3.5GHz to 3.7GHz bands, making legacy bands ideal to enhance the coverage and capacity of 4G and 5G networks.
Where ageing 2G/3G networks eat up a significant portion of an operator’s opex, the new infrastructure innovations in 4G and 5G, such as open RAN, RIC and cloud-based networks are touted to drive significant opex, thereby presenting a good reason to sunset legacy networks.

These benefits conflated with the fact operators in numerous countries still do not have access to 5G-specific spectrum, makes the case for retiring legacy networks to support newer launches and expansions.

Sounds like a perfect scenario, right?

But, what often gets concealed behind these benefits is the challenges involved in the process. Phasing out a network generation completely is a complex process and usually takes years to complete. Transitioning of retail customers, for example, is still manageable by offering handset subsidies and continuation of existing tariffs, but transitioning enterprise or IoT customers can be a lengthy and difficult process given the reliance on low cost 2G devices and networks.

To ensure no hiccups for customers it is imperative an operator undertakes a detailed risk assessment and fully plans for all implications, including new device demands, VoLTE support and so on. The entire transition process needs to be planned carefully while ensuring timely communication with affected customers and the provision of advice and customer support to ensure the smooth transition.

Related Reading
Spectrum Navigator, Q2 2021: new insights and trends to watch [6]
Slow pace of 5G assignments is spurring spectrum refarming [7]
Intelligence Brief: What does 2021 hold for network sunsets? [8]

All the above analysis is based on news curated by GSMA Intelligence’s team of analysts and taken from their Industry Updates feed, available here [9].

– Radhika Gupta – head of data acquisition, GSMA Intelligence

The editorial views expressed in this article are solely those of the author and will not necessarily reflect the views of the GSMA, its Members or Associate Members.

[1] https://www.gsma.com/betterfuture/wp-content/uploads/2021/04/Mobile-Net-Zero-State-of-the-Industry-on-Climate-Action.pdf
[2] https://data.gsmaintelligence.com/research/research/research-2021/network-transformation-2021
[3] https://data.gsmaintelligence.com/research/research/research-2021/going-green-benchmarking-the-energy-efficiency-of-mobile
[4] https://data.gsmaintelligence.com/research/research/research-2020/energy-efficiency-in-the-5g-era-going-lean-going-green
[5] https://www.mobileworldlive.com/wp-content/uploads/2021/09/GSMAi_network_sunsets.jpg
[6] https://data.gsmaintelligence.com/research/research/research-2021/spectrum-navigator-q2-2021-new-insights-and-trends-to-watch
[7] https://data.gsmaintelligence.com/research/research/research-2021/slow-pace-of-5g-assignments-is-spurring-spectrum-refarming
[8] https://www.mobileworldlive.com/blog/intelligence-brief-what-does-2021-hold-for-network-sunsets
[9] https://data.gsmaintelligence.com/signin?returnPath=%2Findustry-updates

On 7 September I made my way to Islington Business centre to attend IoT Tech Expo. An actual, physical event. In person. That and to moderate a session: IoT enabled Digital Transformation.

Connected, IoT-enabled devices have become an inherent part of everyday life across consumers, enterprises and wider society. I am not only talking about barking commands at Alexa, regulating temperature via a connected thermostat or chatting to a Postie over a connected doorbell.

For instance, our commute relies on telematics data from trains, buses and taxis. And when these systems go offline, for whatever reason, there are consequences. Recently in my research on 2G/3G shutdowns [1] I called on an example of San Francisco Municipal Transportation Agency, which took weeks to update after the 2G network shutdown. This resulted in around 70 per cent of buses and trains disappearing from the NextMuni system map, which tracks vehicle locations in real time and predicts arrival times.

Not surprisingly, the conference agenda revolved around digital transformation and the impact IoT has across multiple sectors, while the topic of data and data analytics took centre stage.

Below are some of the key takeaways.

Start with a business case
Steve Hewitt, chairman of the MESA UK Special Interest Group warned most people start their IoT projects with technology which is why 70 per cent to 80 per cent of proof-of-concepts fail and go nowhere. The right way is to start with the why (value) rather than the what (technology). Only after the value and the outcomes are measurable can the technology discussion start.

Pirelli Deutschland’s former head of digital innovation Richard Allbert quoted Gene Haas, owner of the namesake Formula 1 team: “We’ve got a lot of data but we still run like dogs**t.”

Apart from being a really good insight to the realities into Formula 1 racing, this highlights a lot of frustration felt around IoT-enabled products and services if the integration isn’t done right or if a feedback loop to the business is missing. In essence, just deploying technology to capture data isn’t enough. One needs to know what to do with that data and the business outcome. After all, enterprises really don’t care about the tech they want to solve a problem, as such 49 per cent of enterprises see IoT as transformational to their company and industry.

It’s all about data
Enterprises of all sizes deploy IoT solutions to: a) connect assets; b) collect data; c) analyse (make use of data); and d) improve their business (processes, products et cetera), then go through this virtuous cycle again and again. The primary goal is to increase productivity, achieve cost savings/process efficiency and, through better insights, to offer tailored products/services.

However, there are some common pitfalls that should be avoided. Mike Bowers, chief architect at FairCom, advised the first step is to gather data via software to get it from all the various protocols then your data scientist can look at it to say what data is good to make decisions. This prevents getting into a data ocean situation where an enterprise drowns in a massive amount of useless data.

An Airbus collaboration with Palantir Technologies is a great example of scaling up:

Phase 1 included 50 users and achievement was to increase production of the A350 aircraft by 33 per cent
In Phase 2, users increased to 500 with integration including 20 adjacent use cases including supply chain
Phase 3 saw Skywise, an open data platform, extending to the entire aircraft industry
In Phase 4, currently Skywise has 130 airlines on board the platform and almost 20,000 users

During a panel session titled Fuel of the Future – a Holistic look at the Smart Energy and Sustainability Space, Nathan Pierce, programme director for Sharing Cities with the Greater London Authority, shared interesting insights.

Using data and running algorithms, they can optimise energy usage, some of which can be achieved through digital twinning (10 per cent to 15 per cent cost reduction). Analysing data allows for additional carbon savings, for example if a lamppost is broken the platform makes it visible, removing the need to drive around looking for it.

People matter
Employee/internal resistance shows the largest increase compared with 2018, when it was at 26 per cent (see chart, below, click to enlarge). This reflects the fact education on the benefits of IoT has to extend beyond C-level executives, requiring buy-in from people on the ground to adhere to changes. There is a need to think about the end users when designing an IoT solution. For example, Neal Humphrey, healthcare lead at Alcatel-Lucent Enterprise UK, mentioned how nurses are overloaded by the massive amount of information due to a huge increase of health monitors.

All the new information causes alarm fatigue and, unless it is cured employees doesn’t have time to sift through it. A lot of stuff and not enough value.

[2]

Don’t reinvent the wheel
Enterprises are not IoT experts, as such they shouldn’t have IoT competence. They are the experts in their own domain though. IoT vendors can be enterprises’ best friends and that’s how KDDI positions itself, Bo Ribbing, head of IoT at its European unit explained.

During the Covid-19 (coronavirus) pandemic, the carrier discovered its Japanese clients with outposts in Europe came to them asking for help with digitising operations. There will always be enterprises which will want to build their solutions in house, but our survey showed they are a minority at 4 per cent. Having the right partners is truly key to success.

The challenges remain to IoT adoption, but IoT is one of the key components and drivers of enterprises’ digital transformation. After all, as per our research 63 per cent of companies deploy IoT as part of transformation. In fact, Covid-19 has accelerated digital transformation of a number of verticals, for example healthcare and manufacturing. A longer term goal of sustainability is driving transformation of other sectors including agriculture or cities

As a side note if you are a Formula 1 fan you must watch the Drive to Survive series to get all of the behind the scenes action in the sport.

– Sylwia Kechiche – principal analyst, IoT and Enterprise, GSMA Intelligence

The editorial views expressed in this article are solely those of the author and will not necessarily reflect the views of the GSMA, its Members or Associate Members.

[1] https://data.gsmaintelligence.com/research/research/research-2021/saying-goodbye-to-legacy-networks-but-what-s-next-for-iot-
[2] https://www.mobileworldlive.com/wp-content/uploads/2021/09/GSMA_Intelligence_enterprise_IoT_challenges.jpg

Open RAN is one of the highest profile topics in mobile networking technology, driven by impressive operator and vendor messaging. In some instances, this messaging focuses on potential opex benefits, in others on capex efficiencies. Which of the two is greater (and the magnitude) is up for debate, and might only be revealed as the technology matures and scales.

What isn’t up for debate, however is the notion technology innovation and network spending aside, open RAN is of interest to players beyond operators and vendors. National governments and regulators, in particular have their own reasons for taking an interest in the technology.

The politics of open RAN
Potential open RAN technical and business model innovations tend to dominate discussions of the technology. It is worth acknowledging policy agendas are also involved in driving the technology’s momentum in various ways.

Consider the existence of industry bodies specifically aimed at promoting policies which will advance open and interoperable RAN systems, such as the Open RAN Policy Coalition. Consider government-funded open RAN development projects, including the UK’s Future RAN Competition which pledged up to £30 million to fund projects that could expedite adoption of open RAN technologies. Consider the views of operators themselves. When asked if national political agendas and concerns are driving the momentum of open RAN deployments and technology development as part of a GSMA Intelligence survey, 54 per cent agreed.

The explanation for any connection between open RAN and national policy goals is often over-simplified, reduced to one or two goals. In reality, a number of different agendas might be at play: a belief the core open RAN promises will benefit mobile operators and the rollout of new wireless technologies; a push for enhanced supply chain diversity; and initiatives which support local manufacture of mobile infrastructure and a belief open RAN can support them.

At the same time, some operators have been clear in stating that they see national support as important to their open RAN goals.

An MoU signed by Deutsche Telekom, Orange, Telefonica, and Vodafone Group earlier this year, for example, noted the operators would work together with groups like the O-RAN Alliance and TIP to “ensure open RAN quickly reaches competitive parity with traditional RAN”.

European policy makers, however were also cited as important ecosystem partners. In fact, the MoU announcement ended by noting “the European Commission and the national governments have an important role to play to foster and develop the open RAN ecosystem by funding early deployments, research and development, open test lab facilities and incentivising supply chain diversity by lowering barriers to entry for small suppliers and start-ups who can avail of these labs to validate open and interoperable solutions”.

Political risk
From an investor perspective, the concept of political risk captures an understanding that political decisions could impact profits or expected returns. From an open RAN perspective, support from policymakers could be helpful in funding, or otherwise supporting, ecosystem development. At the same time, it is not without its own risks:

Changing priorities. Policymakers have been known to change their positions and world views over time. Open RAN, in turn is still a nascent technology with technical and business issues to sort out. If political support for open RAN were to diminish (or evolve as the market takes shape), operators could find themselves having gone down a path that is suddenly more difficult to manage. This would particularly be the case where operators were counting on non-commercial support as part of their open RAN strategies.
Option limitations. In extreme cases, open RAN backing could take the form of mandating its deployment, which would obviously limit an operator’s network options, potentially forcing them to launch a technology not suited to their needs. Again, the fact open RAN is still maturing will play into any evaluation of those needs.
Priority clash. As noted earlier, officials might drive the promotion of open RAN for any number of reasons. Their interests, however won’t always align with operator interests. Prescriptive policies in support of open RAN, then could potentially constrain network choices and/or add to costs even if they stop short of mandating the technology.

Against this backdrop, we need to be particularly sensitive to any moves towards mandated open RAN deployment, in particular. Given existing momentum, technology-neutrality should not hurt the progress of open RAN, but will preserve operator choice in line with their priorities and understanding of the market.

– Peter Jarich – head, GSMA Intelligence

The editorial views expressed in this article are solely those of the author and will not necessarily reflect the views of the GSMA, its Members or Associate Members.