Deutsche Telekom (DT) and satellite partner Inmarsat appeared jubilant following the successful launch of the satellite that will support their European Aviation Network (EAN) hybrid inflight broadband system, although the ambitious project still faces hurdles as Inmarsat rivals challenge the service in the European Court of Justice (ECJ).

  • Milestone moves DT closer to adding another arrow to its Leading European Telco quiver, although cash benefits of the service remain unclear.

The launch of the satellite marks the achievement of another significant milestone for the project, supporting DT and Inmarsat’s claim that they are on track to start commercial services in the latter half of 2017 (Deutsche Telekomwatch, #59, #61, and #62).

“ Excellent job Inmarsat and Thales! What an important milestone, bringing us closer to #EAN launch with #DeutscheTelekom and revolutionising inflight connectivity in Europe! ” – David Fox, Vice-President, Inflight Services & Connectivity, DT.

  • The satellite, built by France-based Thales Alenia Space, was launched on 28 June 2017. It was carried into orbit by an Ariane 5 rocket delivered by satellite launch specialist Arianespace from the Guiana Space Centre in Kourou, French Guiana. Space Exploration Technologies Corporation (SpaceX) was the original launch partner, but, because of delays in SpaceX’s launch schedule, Inmarsat and Hellas Sat had decided to shift to an arrangement with Arianespace (Deutsche Telekomwatch, #62). The satellite, said to have a lifetime of about 17 years, will be positioned at 39° East and will use Inmarsat’s S-band spectrum allocation at 2GHz to provide satellite connectivity across all 28 member states of the European Union (EU), plus Norway and Switzerland.

DT, which will operate the adapted 300-site LTE ground network required to enable the EAN, is targeting completion of the network in 2018, following recent trials (Deutsche Telekomwatch, #61).

An Inmarsat spokesperson told Deutsche Telekomwatch that DT and network equipment partner Nokia have now completed network deployment in five (unspecified) countries so far, and plan to have covered central Europe by mid-2017.

Rolf Nafziger, Senior Vice-President, International Wholesale Business Unit, DT, was also bullish on progress in a post on LinkedIn.

“ We’re making great progress with the rollout of the ground network, with major Western European countries already completed. So now there’s nothing standing in the way of our market launch in England, Germany, and other parts of Western Europe at the end of this year – with full European coverage in 2018. ” – Nafziger.

In May 2017, Inmarsat confirmed that more than 40 of the 300 EAN sites had been installed throughout Europe. Inmarsat also previously indicated that services could be launched in advance of full completion of the ground network because the installation of LTE sites focuses on routes of greatest air traffic density.

Airbus to provide EAN retrofit solution

In June 2017, Inmarsat flagged a strategic partnership with aircraft manufacturer Airbus, which will offer airlines a specialist retrofit solution to deploy the EAN on the vendor’s A320 family of aircraft.

The solution includes cabin network equipment required for EAN deployment and service bulletins that detail the tasks and materials needed for installation and certify the airworthiness of related modification work. Airlines will be able to buy the solution through Airbus or Inmarsat, and can use it for inflight broadband as well as aircraft maintenance and operations management. The partners forecast that more than 750 aircraft could be retrofitted with the EAN-enabled equipment over the next three years.

International Airlines Group (IAG), which includes airline brands such as Aer Lingus, British Airways, Iberia, and Vueling, has already been confirmed as the launch customer for the EAN. IAG aims to equip 90% of its short-haul fleet with the service by early-2019. In addition, German airline Lufthansa, a long-time customer of DT and Inmarsat on aircraft connectivity, also confirmed plans to introduce the EAN on its aircraft in 2018.

EAN faces court challenge, with DT’s terrestrial element a key focus

Despite operational progress, licensing issues around Inmarsat’s S-band concession continue to be mooted as a potential roadblock to EAN deployment (Deutsche Telekomwatch, #56).

Rupert Pearce, Chief Executive of Inmarsat, conceded that the satellite service provider has “drifted from the European Commission’s [EC] initial December [2016] date for a launch [of services over the provider’s S-band frequencies]”, but claimed it has strong support from national regulators.

Inmarsat said it has authorisations from all 30 countries for the mobile satellite services (MSS) component of the EAN. However, it noted that three of the 30 countries – France, Germany, and the UK – have yet to provide authorisations or in-principle approvals for the Complementary Ground Component (CGC) being constructed by DT. Inmarsat told BBC News in late-June 2017 that the French and German authorities look set provide authorisations in the coming weeks.

Awkwardly, rivals of Inmarsat have been lobbying the EC’s and national regulators, including France’s Arcep and Ofcom in the UK, over concerns that the EAN is a terrestrial, not a satellite, service – claiming that this constitutes “misuse” of its licence.

US-based satellite services provider ViaSat – a prospective challenger to the EAN in Europe – lodged a complaint with the General Court of the ECJ on 24 April 2017 (although the judicial procedure was not published until 3 July 2017).

Eutelsat, ViaSat’s European partner, and inflight communications solution provider Panasonic Avionics are said to be supporting the US provider in its quest to ask the court to force the EC to prevent Inmarsat from deploying the commercial EAN service.

According to ViaSat, the EC “should have acted to prevent national regulators from authorising the use of the 2GHz band for terrestrial air-to-ground purposes, ” as opposed to an MSS network, “in accordance with EU law”.

Rick Baldridge, President and Chief Operating Officer of ViaSat, went as far as saying that allowing Inmarsat to use its S-band rights for the EAN “results in a massive public subsidy to one company, which gives Inmarsat a natural monopoly with major pan-European business advantages based on unfair competition”. He claimed that airlines will effectively be locked into the EAN service.

Much of this activity involves competitive manoeuvring. Eutelsat and ViaSat recently formed a joint venture to offer in-flight broadband services in Europe, initially via the Eutelsat Ka-Sat satellite and later through the more advanced ViaSat-3 craft, which ViaSat expects to bring into service in 2020. Space Intel Report cited industry officials as saying the successful launch of the EAN satellite, and the fact that airlines are about to pick their future in-flight connectivity provider, has now brought the dispute “to a head”.

Inmarsat’s public response to the court challenge was dismissive. “It’s all tosh, to use the technical term”, Pearce told BBC News. He also accused Eutelsat of “sour grapes” because it once owned an S-band licence, but later sold it to satellite operator EchoStar.

In an interview with The Telegraph during early-July 2017, Pearce added that Inmarsat had issued a cease and desist order on the three challengers.

“ They have made the same argument to regulator after regulator and each time their claim has been refused. They are just trying to slow us down. ” – Pearce.

The Inmarsat spokesperson stressed to Deutsche Telekomwatch that “we do not see the claims as having any impact on the launch of the EAN service”.

“ We and our partners, including Deutsche Telekom, are progressing towards the commercial launch of the service this year. The satellite has been successfully launched, the complementary ground network is progressing well, the terminals required for both the MSS and CGC elements of the service will be available in Q4 [September 2017-December 2017], and IAG is confirmed as our launch customer. ” – Inmarsat spokesperson.

DT: less to lose?

DT appears to have kept out of the dispute, but no doubt will be watching developments closely.

The Group has been a backer of the EAN concept since at least since 2012 (Deutsche Telekomwatch, #9), although it has yet to make clear what the EAN will provide the Group in terms of financial returns. As the venture’s senior partner, Inmarsat appears to have more to gain if the venture is a success, and more to lose if it fails.

Image: bomberpilot (Wikipedia).

Table of Contents

3 Executive brief

Group

6 Group Development
6 Group sits on hands as Orange offloads BT shares
6 A brave face from BT on Orange departure
7 BT-DT joint research plans have yet to get off the ground
9 Group Development
9 Scout24 exit all-but-completed
10 Not done yet
10 Advisors take their slice
11 Partnerships
11 DT and Inmarsat trumpet EAN satellite launch
12 Airbus to provide EAN retrofit solution
12 EAN faces court challenge, with DT’s terrestrial element a key focus
13 Technology & Innovation
13 DT: less to lose?
14 People
14 Table 1 People movement highlights
16 Technology & Innovation
16 DT looks beyond “classical” vendors, flags 5G concerns
17 Technology & Innovation
DT seeking disruption via xRAN… 17
… and TIP 17
18 ROCE not good enough, innovation slow…
18 … RAN out of steam
19 Is my network slice the same as yours?
20 Technology & Innovation
20 Cloud TV browser pencilled in for 2018 launch
20 Tuning into TV expansion

Germany

23 Network
23 TDE talks a “fibre” game but rivals unimpressed
23 Facts on the ground
24 Legal and regulatory
24 Some contrition?
25 Products and services
25 TDE kick-starts NB-IoT, hails “rapid” ecosystem growth
26 Operations
26 Smart parking
26 Economies of scale
27 The bigger European picture
27 DT’s horizons extending beyond NB-IoT

Europe

30 Croatia
30 HT gains go-ahead for Optima tie-up ‘phase two’
30 Watchdog reluctant, but few other cards to play
31 Region
31 Czech Republic
31 TMCZ expands Mojio-powered Smart Car offering
32 ICSS
32 Macedonia
32 Greece
32 Cosmote rivals trumpet broadband plans
33 Competitors on high fibre plans
34 Poland
34 Poland
34 Höttges more positive than usual on Poland
35 Table 2 Deutsche Telekom, Europe area revenue by territory (adjusted), FY16
35 TMPL not yet back in the game, though

Systems Solutions

38 Strategy
38 Lookout and Splunk tie-ups further security partner push
39 Table 3 Magenta Security portfolio and partner ecosystem, early-2017
39 Contracts
39 Partnerships
40 People
40 Products and services
40 T-Sys UK in cloud business development push

USA

43 Table 4 The millimetre wave path to 5G: Spectrum Frontiers at a glance
43 Legal and regulatory
43 TMUS urges FCC to look beyond mmWave for 5G
44 Legal and regulatory
44 Think more about 3.5GHz
45 Legal and regulatory
45 Network
45 600MHz deployment begins
46 Network
46 TMUS launches LTE-U, starts commercial LAA tests
46 LAA law
47 Supply chain
47 TMUS adds further to IoT ecosystem
47 Mavenir points to role in DIGITS evolution

49 Further reading

53 Index

Index

Symbols

3rd Generation Partnership Project (3GPP) 27, 45, 46, 47

A

Africa
South Africa 14
– Agencija za Zastitu Trzisnog Natjecanja (AZTN) 30
Alliance for Internet of Things Innovation 13
Alphabet
Google 45
– Android 25, 38, 47
– – Amdocs 47
OpenMarket Inc. 47
– Americas
United States of America (USA) 7, 10, 12, 17, 27, 39, 42, 43, 44, 45
– Federal Communications Commission (FCC) 43, 44, 45, 46
– – Government 43
– – States
– – Califormia 46
– – – Idaho 44
– – – Michigan 44
– – – New York 46
– – – Apple
iOS 25, 38, 47
– Aricent Inc. 17
Asia-Pacific 44
Australia 14
– China 30, 39
– Japan 46
– Singapore 14
– South Korea 7, 19, 20
– AT&T 16, 17, 27, 44, 47
Axiata Group Bhd (TM International)
Singapore (Mobile One, see separate listing) 27
– B
Barclays plc 10, 18
Barclays Bank 10
– Bharti Group 14
Bharti Airtel 14
– Blue Coat Systems 39
British Broadcasting Corp. (BBC) 12, 13
BT Group 6, 7, 13, 14, 17
BT Global Services 7
– EE 6, 7
– C
CDU/CSU (Christian Democratic Union of Germany/Christian Social Union) 23
CeBIT 40
CenturyLink Inc. 44
Check Point Software Technologies Ltd. 39
Ciena Corp. 17
CipherCloud 39
Cisco Systems 17, 39, 40
Comverse Technology 39
Credit Suisse 10

D

Deutsche Telekom 6, 7, 9, 10, 11, 12, 13, 14, 16, 17, 18, 19, 20, 23, 24, 25, 26, 27, 30, 31, 32, 33, 34, 35, 38, 39, 40, 43, 44, 45, 46, 47
ClickandBuy (Firstgate) 10
– Corporate
– Headquarters 27, 34, 38
– – Deutsche Telekom Capital Partners 9, 10
– Deutsche Telekom Strategic Investments 38
– – Kumu Networks (see separate) 19
– – – Fireglass (see separate) 9
– – Mojio (see separate) 31
– – Morphisec (see separate) 9
– – SafeBreach (see separate) 9
– – Strato (see separate) 10
– – Digital Business Unit
– DeTeMedien 10
– – Scout24-Gruppe
– – AutoScout24 10
– – – ImmobilienScout24 10
– – – Europe
– Croatia (Hrvatski Telekom) 30
– – Czech Republic 31
– – Greece (see OTE) 32
– – Hungary (see Magyar Telekom) 14, 24, 33, 34
– – International Carrier Sales & Services (ICSS) 32
– – Netherlands 27, 35
– – Poland (Polska Telefonia Cyfrowa/PTC) 14, 34
– – NetWorkS! 35
– – – Slovakia (Slovak Telekom/T-Mobile) 31
– – UK (EE) 6, 7
– – European Aviation Network 11
– Executives
– Abolhassan, Ferri 14
– – Abrahamson, Jonathan 14
– – Backofen, Dirk 38
– – Banerjee, Debanjan 14
– – Calian, John 14
– – Clemens, Reinhard 14, 26
– – Fleutiaux, Francois 14
– – Gopalan, Srini 14
– – Höttges, Timotheus 7, 18, 34
– – Jacobfeuerborn, Bruno 18
– – Janssen, Uwe 16
– – Langheim, Thorsten 10
– – Nikutta, Randolph 20
– – Pruchnow, Johannes 24
– – Ray, Neville 43, 46
– – Rickmann, Hagen 26
– – Sievert, Mike 43
– – van Damme, Niek Jan 23
– – Vasina, Milan 31
– – Vento, Vicente 10
– – Wunderer, Dr. Felix 14
– – Ex-executives
– Gyenes, Andras 14
– – Hedberg, Jeffrey 14
– – Koszolko, Slawomir 14
– – Germany 14, 23, 24, 25, 26, 27, 32
– T-Online 10
– – InteractiveMedia 10
– Investments
– Magyar Telekom (see separate) 14, 24, 33, 34
– – OTE (see separate) 32, 34
– – Product and Innovation
– hubraum 27, 34
– – Telekom Innovation Laboratories (T-Labs) 13, 14, 20
– – Products and services
– immmr 47
– – MagentaMusik 360 25
– – Scout24 9, 10
– – Strategy
– Growth Areas 9
– – One Company 14
– – Systems Solutions 37
– T-Systems 7, 9, 14, 24, 25, 34, 38, 39, 40
– – Detecon 14
– – – South Africa 14
– – – Telekom Security 9, 38
– – – Technology
– 5G
– – haus 17, 19
– – – BNG (Broadband Network Gateway) 33
– – USA 31, 34, 38, 43, 44, 45, 46, 47
– Deutsche Telekom Capital Partners 9, 10
Dual Inventive 27

E

EADS
Airbus 12
– EchoStar Communications Corp. 13
Ecrio Inc. 47
Emblaze Group
European Telecom 16
– Ericsson 17, 19, 45, 46
Europe
Austria 13, 27, 35
– Belgium 24
– Croatia 27, 30, 35
– Czech Republic 27, 31, 35
– France 6, 11, 12, 24, 47
– Autorite de Regulation des Communications Electroniques et des Postes (ARCEP) 12
– – Germany 7, 9, 10, 11, 12, 14, 19, 20, 22, 23, 24, 26, 27, 34, 35, 39, 40
– Government 24
– – Greece 27, 32, 33, 35
– Hellenic Telecoms and Post Commission (EETT) 32, 33
– – Hungary 14, 20, 24, 27, 35, 39
– Ireland 27, 47
– Italy 6
– Luxembourg 10
– Macedonia 14, 32
– Netherlands 27, 35
– Norway 11
– Poland 27, 34, 35
– Romania 20, 35
– Slovakia 27, 31, 35, 47
– Spain 27
– Sweden 25
– Switzerland 11, 39, 47
– United Kingdom (UK) 6, 7, 12, 40, 44, 47
– Office of Communications (Ofcom) 12
– – European Telecommunications Standards Institute 16
European Union 11, 12, 24, 32, 34, 44
European Commission 12, 13
– European Court of Justice 11, 12
– European Parliament 9
– Eutelsat Communications 12, 13

F

F5 Networks Inc. 39
Facebook 16, 17, 45
Telecom Infra Project 16, 17
– FireEye 39
Fireglass 9
Forthnet 33
France Télécom
Orange 6, 7, 13, 14, 34, 35
– Poland (see Telekomunikacja Polska) 34, 35
– – UK (see EE, DT) 6, 7
– – Fujitsu 14

G

Georg Fischer 39
Goldman Sachs 10
GSM Association
Mobile World Congress 17, 18, 19, 20, 27, 46
– GSM Association (GSMA) 27
GTS Central Europe 14

H

H1 Telekom 30
Hellman & Friedman 9
Hewlett-Packard 39
Hrvatski Telekom (see DT, Croatia) 30
Huawei Technologies 13, 17, 19, 23

I

IBM 13, 38, 39
Informa Telecoms & Media
Ovum 45
– Inmarsat 11, 12, 13
Intel 12, 17, 39
International Airlines Group SA
British Airways 12
– Vueling Airlines SA 12
– Intracom Holdings
Hellas On Line (HOL) 33
– Itho Daalderop 27

J

Juniper Networks 39

K

Kaspersky Lab 39
Kumu Networks 19

L

Lookout, Inc. 38, 39
Lufthansa 12

M

Magyar Telekom (see DT) 14, 24, 33, 34
Macedonia (Makedonski Telekom/T-Mobile) 14, 32
– T-Systems Hungary 39
– Market segments
Machine-to-machine (M2M) 40
– Mavenir Systems 17, 47
McKinsey & Co 14
MetroPCS Communications Inc.
Carter, Braxton 44
– Microsoft 40
Skype 13
– Middle East
Israel 9, 47
– Mobile One (Singapore) 27
Mojio 31
Morgan Stanley 10
Morphisec 9
MTN 14

N

NEC 13
NetTest 32
Nokia 11, 17, 19, 20, 25, 46

O

Open Handset Alliance (OHA)
Android 25, 38, 47
– Optima Telekom 30
OTE (Hellenic Telecom. Org. SA, see DT) 32, 34
Cosmote 32, 33
– Greece 32
– – Hellas Sat 11
– P
Palo Alto Networks Inc. 39
Panasonic 12
Polkomtel 34

Q

Qualcomm 13, 19
Qualys 39
Quantum Corp. 20

R

Rakuten 10, 14
Red Hat 40
Riverbed Technology 39
RSA Security 39
RWE AG 24

S

SafeBreach 9
Samsung 19, 25, 47
SAP 39
Sequans 27, 47
Sigfox 27
Singapore Telecom 14
Optus (Australia) 14
– SK Telecom 7, 17, 19, 20
Slovak Telekom (see DT, Slovakia) 31
Sophos 39
Splunk Inc. 38, 39
Sprint Corporation 45
Strato 10
Symantec 9, 38, 39
Synchronoss Technologies Inc. 14

T

Technology
2G
– GSM 27
– – 3G 44, 47
– Evolved HSPA (HSPA+/I-HSPA)
– – MIMO 46
– – – 4G 46
– Long Term Evolution (LTE) 11, 20, 27, 32, 45, 46, 47
– – 5G 16, 17, 18, 19, 23, 26, 34, 43, 44, 45
– Blockchain 14, 38
– Fibre 23, 24, 33
– FTTH 23, 24, 33
– IMS 47
– IP 16, 17, 32, 33, 47
– IPTV 20
– Linux 17
– M2M 40
– MMS 38, 40
– Narrowband Internet of Things (NB-IoT) 25, 26, 27, 34
– NFV 16
– OpenStack 16, 18, 20
– Personal computer 25
– RAN 17, 18
– R&D 7, 34
– RF 19, 43
– SDN 16
– SIM 24, 25
– Smartphone 38, 45, 46
– Spectrum 43, 44, 45, 46
– 700 MHz 45
– – 3500 MHz 44
– – VDSL 32, 33
– VDSL2 33
– W-LAN 31, 46
– Telecom Italia 13
Telefónica Group 24, 45
Telit 47
Telstra 17
Texas Instruments 17
Thales Group 11
Time Warner
AOL 45
– U
Unilever 14
United Internet 10

V

Value-added services 34, 43
Verizon Communications 16, 17, 27, 44, 45, 47
ViaSat 12
Vodafone 13, 14, 17, 24, 27, 32, 33, 45
Africa, Middle East, and Asia Pacific Region (AMAP)
– India 14
– – Europe Region
– Germany 24
– – Greece 32
– – W
Weather Investments
Orascom Telecom
– WIND Hellas 32
– – Wind Telecomunicazioni 14, 32, 33
– – Wells Fargo 45
Western Europe 11
World Wide Web Consortium 13, 20

Y

Yahoo! 45

Z

Zagrebacka banka 30
Zscaler 38, 39
ZTE Corp. 19

About

About Deutsche Telekomwatch

Report: #65
Covering: July 2017
Published: July 2017
Next report: September 2017
For more information visit: Deutsche Telekomwatch