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In our weekly news round-up, we look at e& and Ericsson’s 6G plans, SoftBank’s collaboration with Nvidia on AI, and Vodafone’s ongoing turnaround progress.
A week in telecoms: AI RAN pilots in Japan and 6G collaboration in UAE
UAE-based operator e& signed an agreement with Ericsson to collaborate on “exploring 6G technology,” as the technology world continues to look ahead to the next generation of mobile technology.
According to a joint statement, the partners said the MoU will “serve as an early engagement for defining the next generation of future mobile network evolution and will include a series of technical discussions and engagements aimed at jointly exploring key 6G technology concepts.”
As noted by Mobile World Live, vendors including Ericsson have already made a number of moves relating to 6G, which is expected to have its first commercial launches around 2030 and is already the subject of preparation work from various players and nations across the globe.
Ekow Nelson, Vice President and Head of Global Customer Unit for e& at Ericsson Middle East and Africa, said: “We have barely scratched the surface with 5G which will overtake 4G and become the dominant mobile technology after 2027 and, with 5G standalone and 5G Advanced, realise its transformative potential over the next several years.”
He added: “At the same time, we have started the proactive approach to 6G research with our partners to shape the next generation of mobile networks. Collaborating closely with e& UAE, we aim to leverage our shared expertise to drive progress in the development of 6G for the United Arab Emirates, and the wider region.”
Ericsson said 6G is expected to provide a “step-change in the future of communication by merging the digital and physical worlds into a seamless reality enabled by trustworthy systems, cognitive networks, and a pervasive network compute fabric.”
SoftBank Corp and Nvidia hit the headlines this week with their announcement that they plan to expand their collaboration on AI-based solutions.
The Japan-based group said it is building an “AI supercomputer using the Nvidia Blackwell platform and plans to use the Nvidia Grace Blackwell platform for its next supercomputer.
Nvidia also announced that SoftBank has piloted a combined AI and 5G network using the Nvidia AI Aerial accelerated computing platform (AI RAN). In addition, SoftBank is aiming to create an AI marketplace for local, secure AI computing using Nvidia AI Enterprise software.
Jensen Huang, co-founder and CEO of Nvidia, claimed that Japan “is leaping into the AI industrial revolution to become a global leader, driving a new era of growth across the telecommunications, transportation, robotics and healthcare industries in ways that will greatly benefit humankind in the age of AI.”
On the topic of AI RAN, Nvidia and SoftBank estimate that operators can earn roughly $5 in AI inference revenue from every $1 of capex it invests in new AI-RAN infrastructure. Taking into account its opex and capex costs, SoftBank estimates it can achieve a return of up to 219% for every AI-RAN server it adds to its infrastructure.
UK telecoms regulator Ofcom is pressing ahead with plans to allocate millimetre wave (mmWave) spectrum frequencies for new services including 5G.
The regulator has now published the final regulations for the release and auction of spectrum in the 25.1GHz-27.5GHz and 40.5GHz-43.5GHz bands. The auction is expected to take place in 2025.
A final decision on the timing of the auction will be made once the Competition and Markets Authority (CMA) has made its final decision on the proposed merger of Three UK and Vodafone UK.
Ofcom noted that the high-frequency bands are “well suited to carrying large amounts of data in densely populated towns and cities. It is particularly appropriate for places where there are lots of people, like stadiums, busy streets, concert venues and train stations.”
Over in Poland, regulator UKE announced the long-awaited start of the 700MHz and 800MHz auction. The starting price of each band is PLN 356 million. Operators have until January 27, 2025 to submit their initial offers.
The regulator said the price was reduced from its initial proposals following market feedback. In addition, operators will now be obliged to offer 120Mbps speeds to 99% of the population by 2030, down from 140Mbps. Assuming all goes to plan, the successful bidders should be able to deploy the new frequencies from June next year.
The digital advertising technology joint venture of four major telcos is set for further expansion, according to a report by TelcoTitans.
Utiq plans to launch a Series-C funding round to raise additional capital that will fund its expansion into new international markets.
The venture was founded by Deutsche Telekom, Orange, Telefónica, and Vodafone in 2023. It offers digital advertising businesses alternative solutions such as the Authentic Consent Service, which serves as infrastructure for advertisers and brands to anonymously track users’ online activity through “secure, pseudonymised” tokens.
Marc Bresseel, CEO of Utiq, said the aim is to raise close to €22m in the latest round, which is expected to be launched in January 2025.
Utiq recently launched services in Austria together with A1 Telekom. It initially focused on France, Germany, Italy, Spain, and the UK and has been in talks with other European partners. The aim is for Utiq’s services to eventually become the “de facto global standard” for digital advertisers.
Vodafone Group CEO Margherita Della Valle hailed progress with her strategy to “change Vodafone” and restore it to growth, but the operator’s German business is still having an adverse impact on profits because of the nation’s new TV law.
During Vodafone’s fiscal first half to the end of September 2024, revenue increased 1.6% to £18.3 billion. However, group adjusted EBITDAaL fell slightly to €5.41 billion from €5.43 billion, driven by a 9.3% drop at Vodafone Germany.
Vodafone attributed 8.2 percentage points of that decline to Germany’s multi-dwelling unit (MDU) TV law. It came into effect in July 2024, and prevents landlords from bundling TV services with rental agreements.
Overall, Della Valle said the results in H1 FY24-25 “have been consistent with our expectations and we are reiterating our full year guidance.”
She also noted that the approval processes for Vodafone’s planned merger with Three in the UK and the sale of Vodafone Italy to Swisscom “are nearing conclusion. These will complete our programme to reshape the group for growth. We are also investing in Germany to strengthen our market position and taking steps to expand our B2B capabilities.”
The slowdown in Germany had been anticipated, and Vodafone said it was offset by growth in other European markets, as well as Africa and Turkey. Vodafone Business continued to grow at an accelerating pace during the first half of the fiscal year, supported by demand for digital services, particularly cloud and security, it added.
Cellnex saw revenue rise by 7% year-on-year, to €2.90 billion (US$3.09 billion), in the first nine months of the year, with EBITDAaL climbing 8.9%, to €1.72 billion ($1.83 billion), over the same period.
Liberty Global has completed the spinoff of Sunrise, its unit serving parts of Switzerland.
