The outbreak of Coronavirus (Covid-19) has impacted almost every country across the globe and India is no different. In fact, for the last two quarters, India had been among the top 10 most affected countries in terms of infections and deaths. Stats for the Indian telecom market, however, suggest it has remained on a stable footing; in Q2 2020, among the top 10 most affected countries, eight reported a negative mobile revenue growth (year-on-year basis). India and Brazil were the only two countries to report positive mobile revenue growth.

Revenue growth is important, but only one part of the story. Let’s have a quick look at some of the key metrics to identify the overall impact:

Revenue and ARPU: Indian telecom operators reported strong growth in revenue during the quarter ended June 2020, thereby defying the economic slowdown from the countrywide lockdown of 68 days through the end of May. Together commanding a subscriber market share of more than 60 per cent – Reliance Jio and Bharti Airtel witnessed a strong ARPU uplift and an annual positive revenue growth of 33.7 per cent and 14.7 per cent respectively. On the other hand, Vi (earlier known as VodafoneIdea) reported a revenue and ARPU quarterly decline of 9.3 per cent and 6 per cent respectively during the quarter, mostly due to the existing debt.
Lower churn levels: Jio reported a strong wireless gross addition of 15.1 million (36.4 per cent increase on y-o-y basis) despite Covid-19 related restrictions across the country, owing to the increase in demand for data and heavy reliance on 4G networks in India. Monthly churn rates reached all-time lows in last 5 years, owing to the retail store closures. Bharti Airtel and Vodafone reported churn at 2.2 per cent and 2 per cent respectively during the quarter ended June 2020.
EBITDA/EBITDA Margin: The leading two telecom operators, Reliance Jio and Bharti Airtel, reported an annual increase in pre-tax profit growth of 55 per cent and 35 per cent and margin growth of 4 percentage points and 6 percentage points respectively during the quarter ended June 2020, thereby defying the economic slowdown due to Covid-19.

It is evident from the above that Indian telecoms weathered the Covid-19 storm well, but the bigger question is “how?” What makes India different from other countries in the list?

The power of people and ubiquity – India’s demographic is very different from all the other most adversely affected countries. With a population of more than 1.3 billion people, India has a huge market base which helped cushion the overall impact of the crisis. LTE subscribers in India rose around 26 per cent year-on-year to around 644 million by June 2020. This clearly shows India’s reliance on mobile phones for various reasons.
Low fixed penetration giving mobile a window of opportunity – According to TRAI (the Indian telecom regulator), of the 683 million broadband subscribers in India as of May 2020, 664 million were using mobile broadband and 19 million were on fixed broadband. The market witnessed quite a surge in its data traffic due to the nationwide lockdown and new norm of remote working. The pressure created from this massive shift from the normal practices to the digital ones was likely to fall upon the mobile networks because of the limited fixed penetration and insufficient fibre layout in the Indian telco market.
Tariff hikes translated into an incremental ARPU – The operators announced tariff hikes in the last months of 2019, immediately before the pandemic. These hikes were in the prepaid segment, accounting for nearly 90 per cent of India’s mobile subscribers. Now, the increased data traffic on mobile networks (see chart below, click to enlarge) resulting from Covid-19 combined with increased tariffs translated into growth in ARPU and Revenues. This explains how Indian telcos remained resilient during the COVID-19 storm.

[1]While it’s true that the Indian telco market has suffered less financial impact due to Covid-19 in comparison to other countries, uncertainty related to economic recovery of the country, pressure to meet ever increasing burden due to rising demand of data services, and competitive intensity still pose a great threat to the sector’s financial stability. So, how does the sector remain sustainable in the long term and deliver on the demands of the “new normal”? What steps/measures can aid operators?

More harmonised Spectrum: Due to the relatively limited extent of fixed infrastructure, the pressure from the extra traffic created by the shift to remote life is likely falling on the mobile network – primarily LTE. Satish Jamadagni, VP for network planning at Reliance Jio, recently claimed LTE cells in the country are at 90–98 per cent capacity, compared to other countries at 40–50 per cent capacity. This clearly shows the appetite for more 4G spectrum in India.

Not just front end spectrum; telcos in India are also facing some backhaul constraints. Spectrum in the E-band and V-band is seen as a crucial backhaul option as the operators plan to modernise their existing 4G networks with 5G ready technologies. However, this spectrum is yet to be released by the government.

According to a recent GSMA Intelligence report [2], mmWave in India can offer opportunities in enhancing mobile broadband (eMBB) and fixed wireless access (FWA). In order to maximise the socioeconomic benefits of mmWave enabled 5G, the Indian government should consider providing timely access to the right amount and type of affordable spectrum, under the right conditions. This will ensure they are able to deliver the low-latency, high speed and high capacity capabilities of 5G.

Boost in Digital Infrastructure: Currently, India has the second largest pool of internet users but lags behind Asian peers like Korea, Japan and China in terms of fibre connectivity. It is believed that if the state governments facilitate RoW (Right of Way) to roll out digital infrastructure, it could not only accelerate the economic progress of states but also make them competitive and help realise various initiatives such as generating jobs, education, healthcare and smart cities.
Services beyond ‘Core’: According to a recent study conducted on major operator groups by GSMA Intelligence, services beyond traditional core contributed to approx. 22 per cent of total revenue, which is mainly driven by PayTV accounting for 28 per cent of non-core service revenue. Currently, when traditional services in India (accounting for more than 90 per cent of total revenues) aren’t expected to drive further growth, new (non-core) services can hold promise for better opportunities. The operators are already seen collaborating with vendors to provide enterprise solutions, such as Airtel recently partnering with Cisco to provide a wide range of cutting edge security solutions to its business customers as well as government entities.
Cross-sell fixed services: Digital dependence in terms of entertainment OTT apps, gaming, educational tech along with health tech is very evidently on the rise. To achieve higher ARPU, operators are already bundling their mobile services with OTT apps, but the converged players now need to provide reliability and high speeds that in India can be served by fixed networks. Converged players need to aggressively cross-sell their fixed services to meet the growing demand.

It is clear that the Indian telecom market has been holding up fine till now but there is a lot that needs to happen for the sector to not only survive but thrive in this economic crisis. LTE networks are already overburdened with rising data traffic demand. If the traffic is not diverged towards fixed network assets or additional spectrum is not made available, then operators could find it difficult to keep up with demand. Clearly, government has to be the facilitator while telecom operators and other players invest and create an infrastructure backbone. With the rise in demand for data and content, there will be pressure on the market to  drive 5G momentum in the coming years.

– Divya Bhargava, Delhi Team Lead, GSMA Intelligence and Pranika Chauhan, Research Analyst, 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.mobileworldlive.com/wp-content/uploads/2020/11/ib2.jpg
[2] https://data.gsmaintelligence.com/research/research/research-2020/the-impacts-of-mmwave-5g-in-india

Recently, the Ministry of Industry and Information Technology (MIIT) of China revealed more than 150 million terminals were connected to 5G networks, up from 100 million a month ago.

Based on this, GSMA Intelligence have updated the 5G forecasts. Where does it leave us? We now expect that, by the end of the year, 5G connections in China will surpass 200 million (see chart, below, click to enlarge). This means about one-in-eight of the total consumer mobile connections will use 5G networks.

[1]

The rapid growth can be explained by four drivers:

The post pandemic economic recovery. In Q3, quarterly GDP growth turned positive as most business activities are back to normal, including the retail market, which helps device sales. Moreover, a big e-commerce promotion day, the double eleven shopping festival in November, will help drive 5G device sales.
Increased options of 5G handsets with a wide price range. Vendors have started to shift their focus from 4G to 5G. Search handsets on major Chinese e-commerce platforms such as taobao or JD and the first few pages are dominated by newly released 5G models. Of course, the iPhone 12 5G is heavily marketed on major social media platforms but, beyond high-priced flagships, some 5G smartphone prices have dropped below CNY2,000 ($298). According to the official data from the regulator, 5G models have kept more than 60 per cent of total handset shipments since June.
The story looks similar to the 4G migration in 2015. We are at another junction: the new generation phones are becoming the norm. Following the history, we can expect 4G models would be kicked-out from the new lines in the future.
Attractive 5G data tariffs for data crunchers. 5G is available at a much cheaper per-GB-price than 4G. Far before the handset price dropped, operators started their promotions on 5G data tariffs. Those offers can be purchased without a 5G device, meaning customers can enjoy the price advantage on data, however they will only have 4G speed. This strategy generated a big gap between reported 5G package users from the operators and real connections. Many customers felt the 5G data price was attractive while the handsets were not. Recently, however, it appears many of them have purchased 5G handsets with the vendors’ promotion as mentioned above, which contributed to the jump over the last month.
Fast network rollout. Without a promising coverage, customers will still not be motivated to buy a new 5G handset. Luckily, Chinese operators have built 60,000 base stations, 20 per cent over their target set at the beginning of the year. The regulator prioritised 5G as a long-term strategic plan at the national level. This helps put pressure on operators to accelerate deployment.

The pay off
Monetisation of 5G consumers remains work in progress. No 5G premium is charged and the per-GB price is cheaper than 4G. Chinese consumers spend lots of time on their mobile phones. They watch TV content, short videos, live streaming and play games with mobile data. And they pay subscription fees to content providers and feed advertising revenue to platforms. But direct revenue from consumers to operators only comes from data package charges. 5G might, hopefully, shift consumers to a higher price band of data packages or take revenue from fixed broadband providers. We need to wait and see if year-end ARPUs do increase with 5G uptake.

Whether or not consumer 5G pays off at a sound pace, the deployment for the consumer segment can open opportunities for B2B 5G sales, including for the public sector. The network rollout usually follows a trace of population density and urbanisation, where those cities have big pressure on infrastructure maintenance, traffic management, and public resources allocation. 5G use cases of smart cities are exactly addressing those issues. Self-driving buses/taxis are also a benefit to public transportation, helping improve transport efficiency and safety. Trials of those use cases are happening in China. Therefore, operators can look for the synergy between B2B and B2C in the deployment cost.

The most important message from the jump of 5G connections is that customers are willing to pay for fast speeds and new use cases. After all, a new phone would be used for more than two years, which is long enough for innovation in consumer applications. While everyone expects B2B to be the most important incremental revenue opportunity in the 5G era, most of the B2B models can’t stand without the consumer segment. Now that 5G has kicked off, it is super important to track and assess future growth and value opportunities for all stakeholders.

– Gu Zhang 张谷  – senior forecaster, Core Data, 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.mobileworldlive.com/wp-content/uploads/2020/10/GSMAIntelligence_China_5G_forecast_Oct2020.jpg

Apologies if you’ve heard this story before, but one of the first projects I worked on as an analyst was a research piece focused on opportunities for the use of 28GHz spectrum in the US. Recent auctions had just taken place for what was being called Local Multipoint Distribution Service (LDMS) spectrum and people wanted to know what the market was for services in the band.

Ultimately, the use case that gained the most attention was broadband connectivity to enterprises, think fibre-like competition which would enable a new era of telco competition. And, ultimately, that use case didn’t actually propel those competitors to major success. Maybe it was because of their business cases. Maybe it was technology limitations: I recall a conversation at the time with a colleague who did not believe mmWave spectrum could be used for anything other than point-to-point connectivity.

Regardless, here we are 20-plus years later and mmWave spectrum is getting more attention than ever, and it’s worth considering why. Despite what the events of the past week suggest, it’s about more than just the:

iPhone 12. The headline news with the new iPhone is 5G compatibility. Whether or not that is critical for would-be iPhone users, it’s particularly important for operators which want to move traffic on to their new 5G networks. And, for operators in the US which want to get users onto mmWave 5G, there is compatibility for that too. It’s not the first smartphone with mmWave 5G, but the massive demand for the iPhone ensures it will generate lots of mmWave traffic, and information.
Spectrum assignments. The US might get most of the attention when it comes to mmWave (along with support from Apple), but it’s not alone in assigning the spectrum for 5G. Thailand, Hong Kong, Taiwan, Singapore and Finland have all assigned it. And Greece, Chile, Argentina, Brazil and Australia have awards planned. This means we will be seeing more demand for mmWave devices, more experience with how 5G works in the band and, of course, mmWave economies of scale.
6G. I’m sure the mere mention of the next G will cause many people to groan. Forget for a moment technology vendors and industry organisations like ATIS have begun talking-up 6G. We’ve already seen speculation on the spectrum it might operate in: sub-mmWave or Terahertz. Sure, this is approaching infrared light. More importantly, it also highlights the industry will need to figure out the economics and mechanics of mmWave 5G in the mid-term.
Data demand. On the topic of mmWave 5G economics, it all begins with a very simple premise: increased data demand driven by myriad high-bandwidth use cases will make the use of mmWave spectrum a necessity. Sure, you could argue new spectrum is never really needed. It’s possible to simply keep shrinking cell sizes and densify networks to dizzying heights. But there is a point where siting and the associated costs become untenable.
TCO. Data demand versus siting costs versus. infrastructure costs versus spectrum costs versus use cases all capture a dynamic which can be described in four words: Total Cost of Ownership (TCO). Where the TCO of using mmWave spectrum for 5G is greater than using other spectrum, there’s no reasonable expectation operators would put it to use. And, to be fair, evaluating this TCO has traditionally difficult given the newness of using it. But, circa 2020, we can begin to estimate mmWave 5G TCO. In fact, it’s something my team is currently engaged in. Initial results look positive: you can learn more by tuning into a presentation we’ll be giving as part of Qualcomm’s 5G Summit.

What’s not captured in the list above, though, may be the most important reason for all the attention: the fact that connecting our phones via mmWave spectrum is even possible. You don’t need to go back in time 20 years or more to find very real discussions about the viability of using high-frequency spectrum for personal communications. “It’s basic physics”, was a common refrain from many camps claiming it would never work. At best, they’d claim, the use case would be fixed, not mobile.

Put aside the potential and market momentum, the mere fact we now have mass-market phones and networks compatible with mmWave bands and networks is an impressive feat, and something worth the buzz all by itself.

– Peter Jarich – Head of 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.

Apple will hold a virtual media event today (13 October) at which it is expected a new iPhone with 5G capability will be unveiled.

The would-be successor to its most recent models, the iPhone 11 and lower priced SE, carries with it extra intrigue because Apple is a relative latecomer among handset manufacturers to the 5G era. While this would not be the first time Apple has eschewed a rush to market approach, the stakes are higher now with new iPhone sales constrained by longer upgrade cycles and, of course, the Covid-19 (coronavirus) pandemic.

There is also the question of whether Apple can inflect broader 5G adoption single-handedly by introducing the world to a feature it did not know it needed. We explore potential implications below both from the perspective of Apple and 5G take-up more broadly.

Rush to buy or wait and see?
The first question to understand is the likelihood of current iPhone owners to upgrade to a 5G model. The positive for Apple is that it commands a fiercely loyal customer base. Our survey data indicates more than 90 per cent of iPhone owners want their next phone to be another iPhone, well above any other handset manufacturer. Furthermore, with their higher-than-average levels of income, the Apple user base is better positioned to afford the new handset and the accompanying 5G mobile tariffs than its competitors.

A number of factors, however, indicate take-up may not follow a mass migratory path:

Upgrade intentions are still middle of the road. Our survey data (see chart, below, click to enlarge) suggests existing iPhone owners are no more likely to upgrade to 5G than others, with both it and Samsung just under 40 per cent in the US (the situation is similar in Europe). [1]
Retail constraints. Apple’s brand ethos, customer-friendly browse and try shopping, and reliance on the mobile operators as a distribution channel means it has historically benefited heavily from in-store sales. The Covid-19 (coronavirus) pandemic has resulted in widespread operator retail closures, which means that 35 per cent to 40 per cent of handset sales through the mobile operators will move online, or be delayed until social distancing measures are relaxed. Despite Apple’s own well-established brick-and-mortar retail network, reduced appetite for in-store shopping over the Christmas/holiday sales period could blunt new iPhone sales.
Income pressures. Set against a context of already-lengthening replacement cycles, discretionary income pressures brought on by Covid-triggered reduced work hours or unemployment could further slow purchase volumes beyond an initial wave of keen adopters in the holiday season. Part of this will come down to how a new iPhone is priced. In reviewing the more than 50 5G handset models released so far, the median retail price is just over $800 (Samsung and Huawei generally being at the higher end while Oppo and Vivo are at the lower end). Apple has traditionally released the base model of a given iPhone generation at $1,000, a 25 per cent premium to the prevailing rate, something Apple customers have been happy to pay in the past but may find less space to do so in the current economic environment.

For Apple, the next iPhone marks a crossroads
The iPhone has been the primary driver of Apple’s success as a business and indeed socio-cultural icon over the last ten years. However, smartphone saturation and lengthened replacement cycles in the US and Europe, which have increased from two years on average in the LTE era to three-and-a-half years now, has precipitated a period of reduced sales growth to the point where, in calendar 2019, iPhone revenue declined 6.6 per cent on the prior year and now account for around 45 per cent of Apple’s revenue compared to more than 60 per cent two years ago. This is, of course, before any exacerbating effects from the pandemic.

In this context, the expected 5G handset launch represents not only its next model, but a gateway into Apple’s strategy for the next ten years. Beyond device sales, the strategic imperative for Apple is retaining customers in its content and payments ecosystem, the glue of its business model. For the time being, this strategy rests on a range of media including video streaming, music and gaming (health also plays a role but generally not a monetisable one). The company does not regularly disclose user counts for these services, but we can infer a somewhat tepid level of take-up based on figures released in the past.

Music, for example, reached 60 million customers at the start of 2019, equivalent to a 6 per cent conversion rate of the iPhone base. Apple TV+, its streaming service, is rumoured to have a take-up rate lower still, with a portion of such customers getting it for free.

The 5G model offers the company a chance to take advantage of new technical capabilities in the standard, particularly low latencies. Following the move to bundle many of its services under the Apple One banner, the technology may provide a vehicle for Apple to revive some of its flagging services by including them alongside those which stand to benefit from the new technology, such as Apple Arcade or Apple TV+. With mobile gaming, in particular, touted as one of the key use cases for 5G, Apple is likely hoping its entertainment subscriptions will lure users into the Apple One bundle and lock them into its services ecosystem.

The takeaway point here is that while the new iPhone is likely to follow past iterations of incremental technical advances, 5G technology offers Apple an opportunity to reset and reorient its longer-term services strategy.

What could it mean for overall 5G adoption?
Size, influence, brand power and heritage all mean that what Apple does matters. This is particularly the case for the mobile operators deploying 5G networks and attempting to sell the merits of higher-value data tariffs on new use cases. In 2011 to 2012, the iPhone was positioned as a flagship handset by many mobile operators keen to capitalise on the newfound ability to stream videos on a mobile phone, something that had not been possible before at any sufficiently good quality. The result was a period of sustained positive revenue growth, with pricing premiums applied for the higher speeds.

The challenge now with 5G is overcoming the perception among consumers that it is just another speed upgrade given LTE is quite able to handle most of the things people currently do on their phones. In this sense, it matters hugely how Apple positions any new services, especially those based on AR or VR, which take advantage of 5G’s unique capabilities given its past precedent for introducing the world to features it did not know it needed. More than any other factor including price, it is this X factor which will determine whether the past halo effect of an Apple launch will spread to the broader handset and operator community.

Stay tuned.

– Tim Hatt – head of research and Jason Reed – lead analyst, Digital Consumer, 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.mobileworldlive.com/wp-content/uploads/2020/10/GSMAi_iPhone_demand_US_2.jpg

Last month’s UN General Assembly session was unlike any other since the organisation was founded 75 years ago. In the first ever ‘virtual session’, world leaders stayed at home and delivered pre-recorded speeches to a mostly empty UN General Assembly hall. Nevertheless, despite the quiet corridors, there was a full programme. What’s more, the 17 Sustainable Development Goals (SDGs) [1] remained at the top of the agenda.

At the start of the year, the UN Secretary-General launched a “Decade of Action [2]”. While significant progress had been made since the SDGs were agreed by world leaders in 2015, it was recognised by governments and the international community that the world was not on track to achieve the Goals by 2030. The reduction in poverty was slowing down, the number of people suffering from hunger was on the rise, climate change was occurring much faster than anticipated and inequality continued to increase within and among countries.

The Covid-19 pandemic subsequently unleashed an economic and human development crisis. In addition to causing more than 1 million deaths, the economic and social impacts have been devastating. In the short term, global GDP is expected to fall by 4.9 per cent in 2020 – the largest contraction since the Great Depression – and over 90 per cent of the world’s student population were at some point unable to attend school. The UN expects that more than 70 million people will be pushed back into extreme poverty by the end of the year, the first increase in global poverty in more than two decades.

Mobile technology and sustainable development
In these unprecedented times, the GSMA recently published its fifth annual Mobile Industry SDG Impact Report [3], which shows that 2019 was the mobile industry’s most impactful year in terms of its contribution to the SDGs. Many people will be familiar with the connectivity figures highlighted in the report: 5.1 billion individuals (two thirds of the world’s population) using a mobile phone and 3.8 billion people (almost half the global population) using mobile internet. What is perhaps less well known is what people are using their phones for.

[4]Some of the most popular activities will come as no surprise, namely instant messaging, social networking, reading the news and watching online videos. But in recent years, there has been a notable increase in the use of other services (see chart left, click to enlarge). More than 2 billion people have now used mobile financial services, purchased goods online and accessed educational information for themselves or their children. More than 1.5 billion people have used their device to improve or monitor their health, or to look and apply for a job.

The benefits of getting people online and enabling these types of services are clear.

Since 2015, the increase in mobile adoption has driven an increase in global GDP of $360 billion (4 per cent of economic growth), as well as providing employment for five million more people (the industry now supports 30 million jobs worldwide). Mobile technology drives a reduction in Greenhouse Gas emissions that is 10 times greater than the carbon footprint of the industry. And a recent study [5] by the GSMA and the World Bank shows that mobile technology can reduce poverty. At a more personal level, the majority of mobile owners believe that their device helps them in their day-to-day work and studies, and also makes them feel safer.

This trend in usage is likely to have intensified since the outbreak of Covid-19, as individuals have become more reliant on digital services to adhere to lockdown and physical distancing rules and lower the virus transmission rate. However, while connectivity has provided people with a lifeline during the past nine months, Covid-19 has also reinforced the impacts of the digital divide, with the unconnected – who tend to be poorer and have lower levels of education – less able to mitigate the economic and social disruptions to their lives. Without an acceleration of efforts to connect the unconnected and increase the use of life-enhancing – or in many cases life-saving – services, the world will not be able to meet the ambitious targets that have been set for the next ten years.

Connecting the next half
The goal of achieving universal internet access is therefore more important than ever. This will involve addressing two connectivity ‘gaps’ that are highlighted in the recently-published State of Mobile Internet Connectivity 2020 report [6]: the ‘coverage gap’ (those living outside of areas covered by mobile broadband networks) and the ‘usage gap’ (those that live within reach of a network but are not using mobile internet).

The coverage gap now stands at just under 600 million (or 7 per cent of the global population), following continued network deployments in South Asia and Sub-Saharan Africa. The usage gap however stands at 3.4 billion people – six times larger than the coverage gap. There are many reasons for people not connecting and, encouragingly, there have been positive developments across several barriers to adoption. Adults in low- and middle-income countries are increasingly aware of mobile internet and the relevance it has to their lives. Affordability of both mobile devices and data continues to improve, particularly with the launch of new ‘smart feature phones’ priced at $10-20 and cheaper smartphones. Nevertheless, barriers around literacy and skills persist, affordability remains a significant challenge for the poorest in society and there are also increasing concerns around the safety and security of connecting.

Addressing all of these barriers will require a collective effort, and the measures that are needed extend not just to the mobile industry but also Governments, the local digital sector, global Internet companies, civil society and the international development community. The challenges of Covid-19 have led to more collaboration between these different players, which will need to continue over the next decade and beyond. Fortunately, there is now an opportunity to build on this cooperation by continuing to implement innovative and targeted initiatives that help to bridge the digital divide.

– Kalvin Bahia, 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://sdgs.un.org/goals
[2] https://www.un.org/sustainabledevelopment/decade-of-action/
[3] https://www.gsma.com/betterfuture/2020sdgimpactreport/
[4] https://www.mobileworldlive.com/wp-content/uploads/2020/10/photo.png
[5] https://openknowledge.worldbank.org/handle/10986/33712
[6] https://www.gsma.com/r/somic/

September has been a manufacturing month.

Earlier in the month, GSMA Intelligence hosted a webinar [1] discussing whether manufacturers have the appetite for new services, with panellists from Reliance Jio, Verizon, AWS and Siemens, a good mix across the IoT ecosystem, with Mobile World Live holding a broader Themed Week [2] on Smart Manufacturing and Industry 4.0.

And, what did we learn? Not only during our webinar but also during the entirety of the manufacturing week? Can I do it in six takeaways?

Long lasting impact of Covid-19
It is hard to ignore what is currently happening around the globe and how the face of manufacturing will change forever, emphasising the need for digital transformation. But, Azad Singh, chief of global mobility solutions at Reliance Jio, also stressed the importance of minimising human presence at manufacturing facilities. The consensus is the current crisis amplifies the need for flexible manufacturing (easily adapting to changes) and the need for different types of data to be collected and analysed. The ability to remotely monitor and access manufacturing plants has never been more important, not only to achieve business benefits but also to save lives. We’ve highlighted the impact of Covid-19 (coronavirus) on the manufacturing sector in a recent research piece [3].

Data is key
As I’ve written time and time again, IoT is all about data: it is key to digital transformation. Throughout the week’s sessions, the need and demand to collect data came through strong. Devices and assets are being connected (using multiple technologies) to collect data, and run the analytics in order to improve processes. Welcome to the virtuous cycle, where the more data is collected and analysed, the more benefits can be achieved. It is not surprising that the most deployed manufacturing IoT solutions are data driven to control for quality, enable automation and simplify management of supply chains, systems and machinery (see chart, below, click to enlarge). Of course, we see the inherent value in data from the fact our Enterprise in Focus survey shows 50 per cent of manufacturing companies already use AI/ML. Why? Making sense of data is what helps enterprises to achieve business outcomes. [4]

Partner for success
The role of partners coming together has been echoed throughout the recent news, but also the examples from the week, be it Supermicro and NodeWeaver showcasing how they address the intelligent edge, or Ericsson and PTC discussing their joint go-to-market proposition. The week’s overall sentiment was that working together enables futureproof investments and allows companies to learn from one another’s experiments. This was also a key take away from our panel discussion [5] on how to best digitise manufacturing: each vendor might have bits and pieces of a solution, but solving a problem together is key, Khondoker Huq, global head of marketing strategy, IoT at SAS pointed out, and brings the value to customers TTTTech Industrial Automation director of product management IoT, Alexander Bergner noted. During our webinar, Douglas Bellin, business development executive, Industry 4.0 and Smart Factory for AWS, further exemplified that customers are asking for best practice and examples so they can accelerate deployment and succeed faster.

Start early
While commercial 5G use cases are still a way away, Moiz Badri, IIoT product manager at Verizon, recommended to start now to understand how to use data. Providing real-life examples of how 5G IoT can benefit enterprise operations is key. Verizon and AWS illustrate this: they partnered to engineer and design a solution to enable edge computing on the Verizon 5G network, supporting mission-critical applications not previously possible, including autonomous industrial equipment and smart factories. There will be different modes of 5G deployments ranging from network slicing to dedicated private networks, but testing and finding the optimal way to deploy 5G should already be on the roadmap. As Chris White, Ford Motor Company 5GEM project lead explained, the car maker’s recent 5G private network partnership [6] with Vodafone UK allowed for flexibility from a data perspective compared with a hardwired approach. Foxconn [7]’s chief business officer Richard Vincent highlighted the wired/Wi-FI networks aren’t always the best at collecting real-time data from his experience. As existing LTE-based private networks will move to 5G, they do address the need for security and robustness and, what is becoming ever so important, collecting data in a flexible way from moving equipment.

Edge to the rescue?
Historically, manufacturers were resistant to moving their data into the cloud, thus cloud adoption in manufacturing is still relatively low. The Covid-19 pandemic, however, has highlighted the need for remote access and cloud enables just that. Enterprises are increasingly sending data to the cloud, training models there, but making decisions at the edge to empower agile operations. And it isn’t surprising recent months witnessed a slew of activity in the space, with cloud providers partnering with operators to capture the edge opportunity, for example:

AWS Wavelink partnership extends beyond Verizon and includes Vodafone, KDDI and SK Telecom
Microsoft Azure edge zones with operators including AT&T; Rogers; Vodafone; Telefonica; Proximus; SK Telecom; Telstra; NTT Communication; and Etisalat, just recently pulled into Operators for Azure umbrella
Google Mobile Edge Cloud, which includes AT&T, TIM, Telefonica and Orange

Mobile operators themselves are keen to explore this opportunity via The Telco Edge Cloud (TEC) platform formed in March 2020, which looks to become a digital one-stop shop. The go to market strategy isn’t fully formed yet but GSMA seeks broad market input from companies who expect to benefit from edge cloud services; so if you identify yourself as such please participate in this survey. [8]

Think outcomes not technology
Michael Zeto, SVP of Boingo Wireless [9], summed up much of our thinking when he said enterprises buy outcomes not technology. While discussing the factory of the future he also sees a mix of private networks, CBRS and edge enabling value delivery. Starting the conversation from the technology standpoint, however, isn’t what enterprises need. Jan Pawlewitz, SVP consulting, Digital Enterprise and Services at Siemens, pointed to the fact enterprises are thinking of business case and value, therefore it is important for vendors to demonstrate their ability to do the heavy lifting and help to build the business case. To this end, Kiva Allgood, head of IoT, Business Area Technologies and New Businesses at Ericsson, flagged the necessity to focus conversations from proof of concept to proof of value.

I couldn’t agree more.

As per our Enterprise in Focus Survey, custom-made products from one provider come out on top, since these make it easy for enterprises to deploy solutions which address their needs but also to realise cost saving as enterprises look to rationalise spend and consolidate their suppliers, favouring single end-to-end suppliers. Vendors recognise this: Steve Dertien, CTO and MD of the office of the CTO at PTC said they need “a trusted IoT partner”. This requires partnerships and cooperation between ecosystem players to enable just that.

– 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://view6.workcast.net/register?cpak=5690505963484246
[2] https://mobileinsights.mobileworldlive.com/themed-weeks/smart-manufacturing-industry-40/
[3] https://data.gsmaintelligence.com/research/research/research-2020/5g-grants-operators-an-opportunity-to-address-manufacturing
[4] https://www.mobileworldlive.com/wp-content/uploads/2020/09/GSMAi_IoT_solution_adoption.png
[5] https://mobileinsights.mobileworldlive.com/themed-weeks/feature-partnerships-drive-the-fourth-industrial-revolution/
[6] https://mobileinsights.mobileworldlive.com/themed-weeks/interview-article-ford-uk-warns-on-5g-factory-challenges/
[7] https://mobileinsights.mobileworldlive.com/themed-weeks/interview-article-data-is-common-thread-in-smart-manufacturing-foxconn/
[8] https://gsma.co1.qualtrics.com/jfe/form/SV_cRYsvDKTD9hWfXf
[9] https://mobileinsights.mobileworldlive.com/themed-weeks/mobile-mix-drilling-down-on-industry-40/

As a part of our blog series this year, we have looked at Sri Lanka [1], Taiwan [2] and South Africa [3] to study how suited they are for launching 5G.

Our next market in focus, the Czech Republic, exudes such readiness given its sound 4G adoption (see chart, below, click to enlarge). What makes the country particularly interesting, though is an existing need of 5G in in support of Industry 4.0 aspirations.

With three established players (T-Mobile, O2 and Vodafone), in Q2 the Czech Republic had around 14.8 million mobile connections, mobile penetration of 138 per cent, mobile broadband penetration of 80 per cent and 4G network coverage of 99.6 per cent.

[4]

Needless to say, the country exhibits impressive statistics, serving as a solid foundation for 5G. To that end, a steady shift towards 5G is predicted, with connections penetration forecast to reach 22 per cent by the end of 2025, which is quite impressive relative to other European Union (EU) countries.

Beyond any 5G foundations, the latest developments from the country’s operators and regulator show how momentum is accelerating to help bring 5G into the mainstream.

Operators’ strategies
O2 Czech Republic became the first operator in the market to launch commercial 5G services in July, during the pandemic, by refarming existing LTE frequencies in the 800MHz, 1800MHz, 2100MHz and 2600MHz spectrum bands.

Vodafone, in turn, announced it would disconnect its 3G network by Q1 2021: it expects to use the frequencies more efficiently allowing additional available bandwidth for 5G as it stands ready to launch a network in October.

Industry 4.0 focus
Along with these on-going developments, the Czech Republic is joining only a select few EU countries in reserving spectrum for enterprise use.

The regulator is promoting Industry 4.0 by reserving a spectrum block in the 3400MHz to 3600MHz band specifically for its deployment by enterprises. The holders of these blocks will be obliged to allow the industry an independent use of the radio frequencies.

Now, the key questions are why does Industry 4.0 matter so much for the Czech Republic and what role will 5G play?

The answers lie in the importance of the manufacturing sector, which contributed 32 per cent to the nation’s GDP in 2019. The booming industrial sector now leads all other sectors in terms of employment and gross value added. However, two key challenges threaten this success: an increasingly acute labour shortage; and low productivity, which is pushing the nation into a middle-income trap.

Technology and automation can possibly address the above challenges, delivering digitised production lines and robotic systems in support of smart factories. The development of such applications and platforms, of course, will largely depend on the existence of fast, reliable and high capacity networks. Offering low latency, high speed and throughput 5G, then, promises to be the technology which will enable Industry 4.0.

But what do operators need to be conscious of in the push for Industry 4.0?

Simply launching 5G won’t be enough to make Industry 4.0 a reality. Operators need to be proactive on the following areas to get a leading advantage.
• Partnership and collaborations: It is critical to develop strong collaborations with vendors, other ecosystem players like software and platform companies, and also with manufacturers to establish more 5G use-cases for industry and for the application of smart factories
• Early trials and developments in manufacturing: As important as the right partnerships are, equally important is leveraging those partnerships to run trials of applications and solutions in Industry 4.0, such as automation, data analytics, AI, Robotics, Drones and so on. This provides an opportunity for the Czech Republic to lead other countries in Industry 4.0 developments and specific use cases within its domain. Likewise, early efforts will help to work through inevitable technology teething pains
• Don’t let auction delays stop you: If auctions experience a snag, service providers have good prospects to replicate what operators in other countries did by not waiting and launching 5G without dedicated spectrum, using existing frequencies to get moving on the path. This will offer operators a window to continue planning networks planning and use cases well in advance of long term spectrum rights.

The Czech Republic’s telecom landscape is robust and appears ripe for 5G launches. Moreover, the existing requirements of Industry 4.0 and the ability of 5G networks to deliver on those promises clear synergies. The manufacturing sector gains by automation and reduced labour dependency. Operators, meanwhile, benefit from a new customer segment (manufacturing) and can better support consumer demands at the same time.

The nation presents an opportunity to offer some of the interesting developments in Industry 4.0. What is required, at this juncture, is for operators to act quickly and work towards partnerships, and expedite 5G launches as the technology can serve as a much-needed boost to the sector coupled with lift to the economy.

– Bhawna Jain – senior research analyst and Akanksha Hira – research analyst, 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.mobileworldlive.com/blog/intelligence-brief-should-sri-lanka-push-4g-or-5g
[2] https://www.mobileworldlive.com/blog/intelligence-brief-how-promising-is-5g-in-taiwan
[3] https://www.mobileworldlive.com/blog/intelligence-brief-does-5g-promise-brighter-future-for-south-africa
[4] https://www.mobileworldlive.com/wp-content/uploads/2020/09/CzechRepublic_tech_connections_proportion_GSMAi.png

In the 18 months since 3GPP Release 15 was frozen in 2018, operators and equipment vendors have focused their efforts on conducting technical feasibility tests with B2B customers to uncover the network capabilities required to support real-life industry applications. In July, China Mobile moved past technical tests to announce its commercial offering for 5G private networks. What is noteworthy here is China Mobile has simply started the first of many iterations of such service bundling by operators. Expect tighter identification of business needs in coming months: having an actual offering gives buyers and sellers a focal point from which to evolve the 5G private networks portfolio, sifting through what is good to have and what is absolutely essential. Longer term, expect the dust to settle to reveal operator winners in 5G private networks.

What is China Mobile offering?
In the classic convention of using mnemonics to label packages in China as 1+N+X, China Mobile modelled its 5G private network offering into three packages, guided by six typical network requirements and four services capabilities, id est: One network; N combinations of menu components; and X technologies.

To customers in China, this offering becomes the first time they see what and how they can buy a 5G private network. In this case, they select their packages based on three levers of pricing: network speed; extent of private network requirements; and the business value expected from the network. They pay based on well-understood network parameters including bandwidth, speed and number of connections.

What is new to B2B customers, however, is the ability to pick the types of services they need: a menu of four network services that should align to the business value expected from the network. First, network design services are structured to meet network customisation requirements including the option to help B2B customers understand different network deployment model options. Second, network optimisation services include the traditional wireless access optimisation as well as the cloud-native core network. Third, network operations and maintenance services are as described, network monitoring and predictive maintenance, but also includes SLA queries that are essential for service guarantees. The final network service is service guarantees, with the usual round-the-clock service support, but also guarantees for seasonal peak traffic patterns and incident response capabilities.

What is new about China Mobile’s offer and why does it matter?
Comprehensive services portfolio: China Mobile’s offering reflects their B2B ambitions not only from their desired technical leadership position but also from their aspirations in delivering associated services. Judging by China Mobile’s more than 18-month efforts to get to this point of a commercial offering, we can infer they are ready to deliver these services and hopefully to profit. Indeed, the addition of the word ‘service’ is an important distinction in identifying the winners in terms of the addressable market for 5G. Using GSMA Intelligence IoT revenue forecast methodology, the 2025 IoT market size will reach $900 billion, of which connectivity makes up only 5 per cent of the total market. Any 5G uplift to an operator will have to come from additional professional services as well as other solutions such as platforms, analytics, security and applications. A proposition with both network and services capabilities shows an operator’s ambition to compete with not only their peers but also the wider technology players such as system integrators, industry engineering services companies, and consulting/business processing outsourcing companies. Other market-leading operators will now have a known commercial offering to fine-tune their propositions.
Pick and choose menu: B2B customers now have a clear price book from which to build commercial metrics behind their investments into 5G private networks and considerations for their optimal deployment configuration. For example, it is important to note China Mobile’s offering is organised into an entry level tier of a public network slice in Special; a hybrid option in Exclusive; and a fully dedicated package in VIP. Since there is no one size fits all deployment mode for B2B customers, China Mobile will begin to discover which package will be more popular. For now, Liu Jian, general manager of China Mobile’s Business segment, believes that the middle package (Exclusive) will be more common among B2B customers.

What next for operators?
Iterative 5G private networks offerings: If operators’ M2M/IoT strategies are a good leading indicator of 5G private network ambitions, then we can expect operators to narrow their 5G B2B offerings throughout the next three to five years. This means operators will first cast a very big net to see what they catch and then begin to right size their target customers, reach of partners and breadth of portfolio. B2B customer demands need time to form: currently B2B customers have limited experience to experiment with what and how to buy 5G private networks. Operators will also need practical deployment experience, especially those who offer accompanying services to their network capabilities. To do this, working with vendors on experiments will help with failing fast by leveraging existing references for use cases and best practices to accelerate commercial deployments.
Deliver on beyond core ambitions: To the extent that operators are B2B-focused, professional services such as network services are important to meet customer needs. Our Operator in Focus survey suggests a high proportion of operators self-identify as currently offering 4G private networks. However, revenue reporting thus far suggests operators are not yet offering additional services which are reflected in revenue. Using China Mobile as an example, its H1 business revenue grew 18.4 per cent year-on-year and the proportion of non-connectivity business revenue increased from 29.2 per cent to 37.9 per cent. Strong performance in H1, but the majority of non-connectivity business revenue comes from internet data centres or IT infrastructure. The services revenue from B2B customers is likely insignificant.

Revenue from services-oriented ambitions will take operators years to materialise. Regardless, this transition requires investors who are patient: expect to see more organisational restructure in the coming years as operators align their beyond core connectivity ambitions.

– Yiru Zhong – lead 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.

On 13 August, the US Federal Communications Commission (FCC) published its response to petitions made by public safety and utility companies to reconsider a decision to open up the entire 6GHz band for unlicensed use. A day later, Aviat Networks (a microwave network equipment company) announced the results of its tests on the effects of unlicensed device use at 6GHz on microwave point-to-point links operating in the same band, showing some interference for incumbent users in the band. The next day, a separate FCC filing was made by Google wanting to test a radio system working on the 6GHz band across 26 states in the US.

While you may have missed or decided to ignore these recent pieces of news, they highlight an important mobile dynamic.

The need for connectivity is greater than ever, driving demand for more spectrum
Global lockdowns have emphasised we rely on connectivity like never before. Moving forward, shifts in patterns of work and entertainment will likely accelerate the need for higher network speeds and greater capacity. 5G networks will sit at the heart of a new ecosystem and will deliver a clear step-change in the capability and functionality of networks.

Despite the impact of the Covid-19 (coronavirus) pandemic, the world has now clearly entered the 5G era. As of the end of the second quarter, GSMA Intelligence figures showed 5G was commercially available from 87 operators in 39 markets worldwide. The global number of 5G connections stood at 57 million and will rise to nearly 145 million by the end of 2020, as more markets see 5G launches and adoption levels in the early-adopter markets ramp.

Mid-band spectrum (1GHz to 6GHz) is key for the success of 5G. With the growth in mobile data traffic, a trend set to accelerate with the widespread launch of 5G networks, operators will require access to growing amounts of spectrum to meet demand. While the 3.5GHz band has emerged as key for 5G at a global level, offering the optimum balance of coverage and capacity, the 6GHz band could play a role in the future of 5G, allowing additional access to much sought-after mid-band spectrum

Current and proposed uses of the 6GHz band
The 6GHz band (5,925MHz to 7,125MHz), as recent news suggests, has garnered attention as it is being considered for a number of new uses: licensed 5G and unlicensed uses such as RLAN, Wi-Fi and unlicensed 5G. The band currently has incumbent users including fixed links for mobile backhaul and fixed satellite service. Use of the upper part of the band (6,425MHz to 7,125MHz) will be discussed at WRC-23, with a view to opening it for IMT applications such as 5G.

While some countries are considering using, or have decided to use, the band for unlicensed applications, others have committed to different plans. The US supports unlicensed use for all of the band, while Europe opted for unlicensed use in the lower part only (below 6,425MHz). China, meanwhile, supports the use of the entire 6GHz band for licensed 5G.

Early decisions on band for unlicensed use may be hasty
Looking at the current regulation being developed around the unlicensed use of the 6GHz band, there are already a lot of differences. The most notable are around frequency ranges, radiated power levels, indoor and outdoor restrictions and use of databases to protect incumbent services in band. The lack of coordination is likely to lead to interference issues, with many of the benefits of harmonisation unrealised.

Further, countries that allow unlicensed use of the 6GHz band at this early stage will find it difficult to reverse the decision and clear the band at a later stage. We saw the effects of such a process not long ago in Europe. CEPT’s efforts to clear the 3.5GHz band, move incumbents out and reorganise it have been strenuous. There was an impact in terms of delays in assigning spectrum, which meant some countries could only make available relatively small amounts of spectrum, creating scarcity and driving up spectrum prices. The results of the spectrum auction in Italy where operators paid €4.02 billion for such little spectrum are a bitter reminder.

The case for licensed use is robust
The benefits of spectrum harmonisation are well known and proven. Harmonisation refers to the uniform allocation of frequency bands across entire regions, not just individual countries. Uniform allocation typically leads to a much broader ecosystem in terms of technology, equipment and general engineering expertise. It also promotes confidence among equipment manufacturers and service providers to invest. It ultimately benefits consumers through the realisation of significant economies of scale, lower costs of deployment for operators and rapid rollout of new services. Without spectrum harmonisation it is unlikely that mobile would have become the success story it is today. And that is one of the main reasons why countries try as much as possible to be aligned, with the ITU and WRC leading this important development.

The payback for harmonisation is further complemented by the licensed use of spectrum, which brings two additional significant benefits: greater reliability and better network performance.

While some may argue there is a certain momentum around the new use of the 6GHz spectrum band, it’s important not to overlook some of these important considerations.

A rushed decision now can lead to difficulties reversing further down the track.

– Dennisa Nichiforov-Chuang – lead analyst, spectrum, 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.

European economies are facing a fresh financial slump as a result of the Covid-19 (coronavirus) pandemic. But the silver lining for telecoms is that we are relying on connectivity like never before, with increased data consumption and a renewed focus on network reliability as working from home becomes normal and we see the beginnings of a demographic shift away from city centres. Telecoms is expected to play a key role in economic recovery, with leading industry bodies emphasising that the sector is ready to work with European Union (EU) institutions, national governments and the broader stakeholders’ community to lift the continent out of recession.

A great deal of operator investment in Europe over the past decade has been focussed on fibre rollout, as increased demand for data puts pressure on legacy networks. Operator capex, however, continues to be stretched by the high cost of new technologies like 5G, while facing increasing competition from disruptors and new entrants all looking for a slice of the connectivity pie. Many governments have recognised the importance of fibre and regulation has a role to play. But operators also need to be open to rethinking their investment models and consider partnerships, consolidation or divestment to enable fibre rollout.

The role of regulation
Governments and regulators in Europe have largely recognised the importance of connectivity and made it a key part of management and recovery strategies. Many governments set ambitious broadband speed and coverage targets to incentivise operator rollout. The UK government earmarked £5 billion ($6.7 billion) to bring gigabit-capable broadband to underserved regions, while Spain is directing nearly €1 billion ($1.2 billion) of state and EU funding to connect areas with no current or planned coverage.

But coverage targets need a clear and beneficial regulatory environment in addition to financial support which recognises fibre is key to connectivity. Fixed fibre connectivity offers great network performance and resilience, but is costly and somewhat inflexible. Operators need to consider a number of options to connect their users, including fibre, hybrid options like fixed-wireless access, and mobile 4G and 5G networks. Governments need to acknowledge this and regularly implement and update economic incentive plans for the rollout of high-speed fibre networks.

Fibre at the core of connectivity
Continued growth in fixed and mobile connectivity relies on backhaul options that can keep up with data demand. Fibre backhaul is not just key to fixed technologies like FTTH, it’s the link that connects mobile base stations to the rest of the operator’s network and then onto the internet. It’s important because it has a direct impact on network performance and user experience, such as download speeds and latency. A superfast RAN link from the mobile base station to the user or vice-versa falls flat if the backhaul link can’t keep up.

Fibre backbone is becoming more important as 5G connections increase and networks mature. Operators are also looking to the enterprise sector as it becomes clear the consumer sector will not be able to fund expensive 5G rollouts on its own. Standalone networks promise consistently high speeds and ultra-low latency, but these rely on solid, uninterrupted connectivity on uncongested networks. And the whole range of 5G technologies currently being touted to improve connectivity and network performance, such as open RAN, network slicing, dynamic spectrum sharing and virtualisation, will not be possible without fibre backbone. And new funding models are now needed to facilitate fibre expansion.

Consolidation and divestment
There is no doubt operators need to invest in fibre, but this doesn’t necessarily mean costly network rollout. Europe, in particular, has recently seen a wave of fixed/mobile consolidation. Vodafone Group recognised its limited fibre assets could be a hindrance to network expansion, so embarked upon a number of acquisitions and partnerships in the cable sector with Liberty Global and its subsidiaries. The combination of BT and EE in the UK was largely driven by content, but EE’s 5G rollout will undoubtedly benefit from access to BT’s fibre. Meanwhile in Italy, disruptive new entrant Iliad signed a partnership deal with wholesale operator Open Fiber. Fixed operators are also recognising the strength of expanding their fibre network through consolidation, such as Euskaltel in Spain.

Another important trend is infrastructure divestment. Many European operators are spinning off their tower and fibre assets into separate businesses. Telefonica hived off its mast mobile masts into its Telxius subsidiary, while Deutsche Telekom and Vodafone have separated some of their tower assets and are seeking to sell part of them through a listing or private sale. These divestments improve financial efficiency as the operators can use those assets for their own operations while wholesaling them to others.

Staying agile to boost economic recovery
The need for fibre in connectivity is indisputable and the advent of 5G has made this even more paramount in a Covid-19 world. But disruption in the sector continues from new entrants seeking wholesale access to the mobile and fixed ISPs, low-cost players like Iliad, and outside influences like Google and Amazon.

Operators need to be highly adaptable and stay open to a wide range of fibre expansion opportunities. Governments, regulators and investors also have a role to play in enabling this flexibility, if operators are to be allowed to make the most of expansion opportunities to help drive the economic recovery.

– Tim Hatt – head of research, and Peter Boyland – lead analyst, 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.