Mobile Operators Announce Few New Private Network Services but Note Diverse Trials and Customers

Monday.com
Kathryn Weldon – Research Director, Business Network and IT Services – Americas

Summary Bullets:

• Since October 2023, there have been few public announcements of new private wireless services or enhanced capabilities of existing services from key mobile operators in the US and Europe.

• However, operators have announced interesting new trials or commercial launches of private 5G, expanding use cases in verticals that ranged from automotive to retail, heavy industry, event venues, universities, ports, and utilities.

Recent PCN Announcements

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Partner or Do – a Telco Technology Dilemma

R. Pritchard

Summary Bullets:

• Vodafone has partnered Microsoft for generative AI (GenAI) and to scale its soon-to-be standalone IoT business with the goal of targeting over 300 million business and consumer customers.

• Telcos need to make difficult decisions over what they need to keep in-house as market differentiators and where they need to partner for best-of-breed solutions.

On January 16, 2024, Vodafone and Microsoft announced a 10-year strategic partnership “to bring generative AI, digital services, and the cloud to more than 300 million businesses and consumers” across Vodafone’s footprint in Europe and Africa. Vodafone is to invest $1.5 billion over that period in cloud and customer-focused AI services in conjunction with Microsoft, with Microsoft returning the favor by using Vodafone’s fixed and mobile connectivity services. Microsoft also intends to invest in Vodafone’s managed IoT connectivity platform as it becomes a standalone business by April 2024 (for more details, please see: Vodafone’s Microsoft AI and IoT Partnership is Bold but Raises Vendor-Neutrality Questions, January 16, 2024).

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UK Full-Fiber and 5G Rollout Going Well

R. Pritchard

Summary Bullets:

• Ofcom’s analysis shows substantial progress in the nationwide availability of superfast fixed broadband and 5G – crucial business enablers in the SME segment.

• Beyond faster connectivity for everyday office, admin, and communications, a growing range of case-specific solutions are being enabled to improve efficiency.

UK regulator Ofcom has updated its ‘Connected Nations’ report with 2023 availability figures for broadband and mobile services in the UK, including the rollout of fixed full-fiber and 5G mobile networks. With an estimated GBP7.9 billion invested in UK telecoms infrastructure in 2022 (GBP5.6 billion fixed, GBP1.8 billion mobile, GBP600 million ‘other’), full-fiber broadband is now available at 57% of UK residential premises (2022: 42%), and gigabit-capable broadband coverage levels now exceed 78% of UK premises (70% in 2022).

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Operators are Busily Adding Technology Enhancements and Alliances to Enhance IoT Portfolios

Kathryn Weldon – Research Director, Business Network and IT Services – Americas

Summary Bullets:

• Although IoT services are growing in numbers of deployments and connections, there are not generally many new service announcements from operators.

• Over the last six months, there was a lot of news centered mainly on technology trials, solution partners, and new customer deals.

In H2 2023, there was news on IoT from US and European operators, but it centered mainly on technology trials, new solution partners, and new customer deals that feature other technologies such as private networks that may include IoT elements.

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Webex Go with AT&T Smooths Hybrid Work in a Mobile-First World but Suffers Some Rough Edges

G. Willsky

Summary Bullets:

• Webex Go with AT&T is a converged mobility and unified communications service intended to optimize the hybrid work experience.

• Webex Go with AT&T offers the convenience of a single number, seamless switching between calls and meetings, plus prioritized network traffic in a unified offer.

‘Webex Go with AT&T’ was announced several months ago in 2023 as one of the first efforts stemming from a newly unveiled partnership between Cisco and AT&T. The offer is now available for pre-order (AT&T brands the offer as ‘AT&T Cloud Voice with Webex Go’); general availability is targeted for the end of January or beginning of February 2024. Webex Go with AT&T is a converged mobility and unified communications service providing the attraction of a single number, seamless switching between calls and meetings, plus prioritized network traffic.

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US Business FWA Services Show Strategy Disparity Among Operators

Kathryn Weldon – Research Director, Business Network and IT Services – Americas

Summary Bullets:

• Verizon discloses progress in business FWA (LTE/5G business internet) every quarter and has added 133,000 business subscribers in Q3 2023.

• AT&T and T-Mobile tout consumer FWA progress but do not disclose business FWA stats. Can the market be so different for these three service providers?

FWA is considered a growth market for US operators, and on the consumer side, it is already threatening cable operators that are determined to maintain their broadband advantage while potentially dabbling in their own FWA initiatives.

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Vodafone Exits Spain – Scale or Fail in Europe?

R. Pritchard

Summary Bullets:

• Vodafone Spain, with 2022 revenues down 6.5% year-on-year to EUR3.9 billion, is to be sold to Zegona for up to EUR5 billion.

• Disposal is symptomatic of ‘scale or fail’ among established operators where cashflow and profits are squeezed, but substantial investment in fiber and 5G is required.

Vodafone has agreed to sell its Spanish business for up to EUR5 billion (at least EUR4.1 billion in cash and up to EUR900 million in redeemable preference shares) to Zegona Communications, a company that looks to acquire telecoms and assets and turn them around commercially. The deal is expected to close in H1 2024.

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Will Network Slicing be the Savior for 5G in the Enterprise?

J. Marcus

Summary Bullets:

• The enterprise is where 5G was meant to shine, but the long and evolutionary rollout approach by network operators has limited the impact.

• Some of the use cases originally targeted by 5G have been deployed using 4G or non-standalone (NSA) 5G from public or private networks, but the advanced features of standalone (SA) 5G such as network slicing could finally help realize the industry’s claims now that availability is starting to appear.

So much verbiage has been expended by the telecom industry (including analysts like me) regarding the potential for 5G to enterprise organizations and to the network service providers themselves. After five years or so, the hype has died down considerably as the impact has yet to materialize at the expected scale. For the consumer market, serious questions remain around the potential for 5G – even for SA 5G – when (once it’s widely available) the full palette of features enabled by the 5G core network and requisite radio spectrum will be realized. Beyond mobile gaming, the conversation tends to stop after connected car-related advances.

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New Research Delivers Insights into the Mobile Lives of Children and Teenagers

Amy Larsen DeCarlo – Principal Analyst, Security and Data Center Services

Summary Bullets:

• A new study from the non-profit research organization Common Sense Media reveals how youths between the ages of 11 and 17 use their mobile devices.

• The research finds social media and other apps flooding the teens phones with notifications in an effort to keep them engaged.

It is unsurprising that devices are omnipresent for youths who have never experienced a time before the advent of cellular technology. But new research from Common Sense Media, involving both an online survey and mobile device tracking, offers some surprising insights into how, and how much, pre-teens and teenagers are using their phones.

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Private Wireless Networks Growth Advances Slowly

Kathryn Weldon – Research Director, Business Network and IT Services – Americas

Summary Bullets:

• Operator announcements since Q2 2023 have not yet proven that private wireless networks are taking the world by storm as US and European operators have only touted a sprinkling of new deals.

• Operators anticipate substantial future revenues for 4G/5G private and hybrid private/public connectivity as well as for advanced beyond-connectivity services, but traction remains spotty. Most recent announcements are on technology advancements or partnerships.

The past six months haven’t quite proven that private wireless networks are taking the world by storm as US and European operators only touted a sprinkling of new deals. However, they still anticipate substantial future revenues for 4G/5G private and hybrid private/public connectivity as well as for advanced services for private network design, testing, PoC, integration, application enablement, edge computing, and ongoing management. Technology enhancements and partnerships made up the bulk of announcements.

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