Telefónica unveiled its 5G Technological Cities project, which will see initial deployments of pre-5G technology and services in two Spanish cities that the telco is describing as “living laboratories”. Ericsson and Nokia have each been appointed as a technology partner in one city, and will undertake parallel testing of next-generation technology and services.

The three year project will run until the end of 2020, with the first step to entail boosting capacity to 5G levels, the installation of early-iteration 5G equipment, and the examination of a range of use cases for the technology.

New Non-Standalone 5G New Radio standards will enable the testing to begin in real-world conditions ahead of the finalisation of complete 5G standards, which is expected in 2019 (see separate report).

Perhaps with an eye to a general public audience, the telco first highlighted the substantial hike in connectivity speeds it anticipates seeing in the cities, which could reach 10Gbps. However, more significantly, it noted the expected reduction in latency and expansion in capacity as important benefits from the deployments. Telefónica suggested the trial network would support 100 times the number of connected devices of the current 4G set-up.

Telefónica held a launch event for the new project. Alongside local authority dignitaries, José Antonio López (Chairman of Ericsson España) and Álvaro Sánchez, (Telefónica Account Manager at Nokia) represented the telco’s partners. For the telco, Luis Gilpérez attended in what appears to have been his last major event as Chief Executive of Telefónica España (see separate report). The increasingly high profile Joaquín Mata, Director of Operations for Network and IT at Telefónica España, was also in attendance.

“ With the 5G Technological Cities project, Telefónica is turning the technology of the future into reality and providing a constant service for people. This is why we will perform the technological deployment and use cases in parallel, so that we will serve people with the new technologies, one of Telefónica’s clear objectives. ” — Gilpérez.

A local network for local people

The project is being framed by Telefónica as an exercise in civic improvement, with the implication that Smart City applications will be at the forefront.

Telefónica also noted that early benefits may be widespread, with improved services for all its network customers through the optimisation of the 4G network, presumably as part of plans to make use of Non-Standalone 5G NR standards that still rely on LTE in the early months of testing.

Telefónica expects that the localised testing will have benefits for national rollout, with the lessons learned in localised conditions expected to be used to prepare the national network ahead of deployment.

Existing projects on 5G-enabled connected car solutions, previously announced with manufacturer SEAT (Telefónicawatch, #122), are to be integrated into the project’s examination of 5G service use cases. Spanish automotive R&D company FICOSA is also collaborating on the connected car research. The SEAT work is said to be considering the opportunities to improve road safety and city traffic management through linking vehicles with the road infrastructure.

More generally, Telefónica said that real-world applications would be considered in the context of a network that will have materially lower latency, and substantially higher bandwidth. Services for the tourist industry are also a feature of the trials, alongside a round-up of the usual suspects of massive IoT, mobile gaming, and telemedicine.

Although the project is based in urban areas, Telefónica is also expected to consider the potential uses of 5G infrastructure for fixed-wireless services in remote areas.

Two traditional mobile partners given a shot…

Ericsson and Nokia are longstanding Telefónica España partners on mobile network infrastructure, so it is unsurprising that they have been provided an opportunity to showcase their next-generation technology.

Just over a year ago, the two vendors were also involved in a Telefónica top-level gathering on the future for 5G, alongside representatives from Huawei and Juniper (Telefónicawatch, #113).

Ericsson is the network partner for trials underway in Talavera de la Reina, and, in picking out the credentials of its partner, Telefónica noted that not only is Ericsson very active in 5G standardisation, but has also already secured “some major contracts” in the field. Ericsson is also a founding partner in 5TONIC, the increasingly busy 5G research lab founded by the telco (Telefónicawatch, #102 and see separate report).

Meanwhile, Nokia’s approach to 5G will be under scrutiny in Segovia. However, the vendor appears a less entrenched partner than its Swedish rival and more muted in trumpeting of its 5G capabilities.

While it was described as a “key contributor to standardisation” in the field, and trailed the anticipated compatibility of Nokia’s 5G portfolio with a wide range of devices and services, there seemed fewer concrete achievements for Telefónica to point to.

… but still playing catch-up?

Beyond the 5G Technological Cities project, other vendors are also working with the telco on 5G, and particularly Huawei and ZTE are unlikely to be taking a wait-and-see approach to Telefónica’s 5G ruminations.

Indeed, both of the Chinese suppliers have been declaring their commitment to Telefónica’s 5G journey, and supporting joint research for several years already.

Huawei is increasingly embedded in Telefónica’s evolutionary digital plans, and signed an original 5G collaboration agreement with Telefónica in 2015, which was extended in 2016 with a specific focus on the standardisation of 5G New Radio (Telefónicawatch, #102, and #108).

ZTE is also 18 months in to a 5G research agreement with Telefónica and has undertaken European trials in areas such as delivery of Massive MIMO base stations (Telefónicawatch, #108 and #113).

Image: Telefónicawatch / Market Mettle.

Table of Contents

EXECUTIVE BRIEF

GROUP

Management update

Gilpérez out as Álvarez-Pallete issues rallying cry [p6]

  • End of Gilpérez rein in Spain
  • Regional divisions return to Latin America
  • Corporate changes, and additional reshuffling
  • Álvarez-Pallete’s dream of tomorrow
  • Table 1: People movement highlights

Global Resources

Progress on 5G standards opens way to 2019 deployments

5G

Ericsson vs Nokia in Telefónica’s 5G city face-off [p11]

  • A local network for local people
  • Two traditional mobile partners given a shot…
  • …but still playing catch-up?

5TONIC undertakes new research projects [p13]

  • R&S unveiled as latest ‘collaborator’…
  • 5TONIC trumpets 5G trials for industrial robots…
  • 5TONIC follows through with wide remit

Partners

Telefónica takes Tutela agreement global [p15]

  • Tutela benchmarking doesn’t pull punches on Telefónica performance

Suppliers

Huawei and Telefónica trumpet SDN transport trials [p16]

  • New platform planned for WDM management
  • Another fine mesh

Supplier profile: Allot

Securing Telefónica’s trust [p18]

  • Allot a comfortable fit with Telefónica’s virtualised platform approach
  • BIOGRAPHY: EREZ ANTEBI
  • Global strategy, local solutions
  • Ereze Antebi: Allot and sector transformation [p20]
  • Allot’s USP
  • Making friends and influencing operators
  • Allot enthusiastic for new model opportunities
  • Breaking out of the capex vault
  • Operators providing principal customer focus
  • Today Spain, tomorrow the world…?
  • Virtualised reality
  • New IoT and video use-cases
  • … but no place like home
  • Operators’ integral role in securing a digital world

LATIN AMERICA

Regional

Telefónica deploys open source STB software from Wyplay [p26]

  • Wyplay makes its mark in a busy ecosystem
  • Vivo launches bundles to boost digital services in Brazil

Argentina

Regulator approves quad-play services for Movistar [p29]

Brazil

Vivo expands IPTV to 21 more cities [p30]

  • Vivo DTH exodus gathers momentum

Colombia

Ezentis wins new contract from Coltel [p32]

EUROPE

Germany

Telefónica gets on-trend with blockchain financing [p34]

  • Financial analysts snooty, but Telefónica remains committed

O2 Germany trumpets tie-up with online video store [p35]

O2 video still lags

Spain

Telefónica España wins F1 rights for three more years [p36]

UK

TalkTalk offers O2 deals to mobile subscribers [p37]

O2 Smart Home closes its doors [p38]

  • Failing fast, moving on
  • AT&T alliance goes out with a whimper
  • Other smart home projects continue

O2 signs mobile identity deal with Danal [p39]

FURTHER READING

INDEX

Index

Symbols

3GPP 11, 14
21st Century Fox
– Sky plc 35

A

Accenture 8
ADVA Optical Networking 17
Alastria 34
Alcatel-Lucent 35
Alcatel-Lucent Enterprise 35
Alphabet
– Google
– – Android 15
– – YouTube 29
América Móvil 27, 32
– Claro 15, 27, 29, 32
Apple
– iOS 15
Aquto 29
ARRIS 26
Artesyn Embedded Technologies 13
ASTI 13
AT&T 7, 27, 38, 39
– DirecTV 27

B

Bernstein 34
Bouygues Telecom 39
BT Group 8

C

CaixaBank 35
C&G IT Solutions 35
– Myfixpert 35
CIENA 17
Cisco Systems, Inc 8
CK Hutchison
– H3G
– – UK 37
Cohere Technologies 13, 14
CommScope 13
Coriant 17

D

Danal 39
DZ Bank 34

E

ENACOM 29
Ericsson 11, 12, 13, 14, 16, 26, 27
European Union 15
Ezentis 32

F

Facebook 29

G

Gilat Satellite Networks Ltd 19
Google
– YouTube 22
GSM Association (GSMA) 39
– Mobile World Congress 39

H

Huawei 12, 14, 16, 17, 30, 39

I

ICE (Costa Rica) 32
IFEMA 13
IFT (Mexico) 32
Infinera 17
Intel 13
InterDigital 13

J

Juniper Networks 14, 17

K

Kudelski Group
– Nagra 27

L

LinkedIn 8

M

MaxLinear 14
McAfee 22
MVNOs 37

N

NEC 17
– Netcracker 17
Netflix 22, 29
Nokia 11, 12, 14, 16

O

Orange 8, 39

P

ProBrand International 14

Q

Quantenna 26
Quantenna Communications 26

R

Regions
– EMEA
– – Europe 6, 7, 11, 12, 15, 20, 33, 38, 39
– – France 26, 39
– – Germany 8, 34, 35
– – Ireland 8, 39
– – Israel 18, 19
– – Italy 14
– – Spain 6, 11, 12, 13, 16, 17, 18, 19, 27, 32, 34, 35, 36, 39
– – UK 8, 15, 37, 38, 39
– Latin America 6, 7, 15, 20, 25, 26, 27, 29, 30, 31, 32, 39
– – Argentina 7, 27, 29
– – Brazil 7, 14, 15, 21, 27, 29, 30
– – Central America 7
– – Chile 7, 27, 30
– – Colombia 7, 14, 15, 30, 32
– – Costa Rica 26, 31, 32
– – Ecuador 7
– – Guatemala 31
– – Mexico 15, 32
– – Nicaragua 31
– – Peru 7, 32
– – Uruguay 7
– – Venezuela 7
– North America
– – Canada 15
– – USA 19, 39
Rivetz 34
Rohde & Schwarz 13

S

Samsung 38
Securitas Direct 39
SIAE Microelettronica 14
Spotify 29
Subtel (Chile) 30
Sutel (Costa Rica) 31, 32

T

TalkTalk plc 37
Technologies
– 3G 37
– 4G
– – LTE 11, 12, 13, 27, 32, 35, 37
– – LTE-A 32, 35
– 5G 11, 12, 13, 14, 30
– Broadband 30, 36
– Cloud computing 30
– DTH 30, 31
– GSM 39
– high definition (HD) 31
– Internet of Things 20, 30
– IP 16, 35
– IPTV 26, 30, 31
– LPWA 30
– LTE-A Pro 32
– MIMO 12
– NB-IoT 30
– Network functions virtualisation (NFV) 22
– R&D 12, 19
– Smart City 12
– Smart metering 38
– Software defined networking (SDN) 16, 17
– Telematics 38
– TV 26, 27, 29, 31, 38
– WLAN
– – Wi-Fi 27, 37
Telecom Italia
– TIM Brasil 15
Telefónica Group 6, 8, 11, 13, 14, 15, 17, 18, 21, 30, 32, 34, 35, 39
– Associates and investments
– – Quantenna 26
– – Sigfox 22, 39
– Digital services
– – AURA 38
– – ElevenPaths 22
– – Open Future 34
– – OTT 31
– – Quantenna Communications 26
– – Telefónica I+D 30
– – Wayra 8, 30, 35
– Europe 39
– – Germany 8, 34, 35
– – O2 8, 15, 34, 35, 37, 38, 39
– – Spain 6, 8, 11, 12, 16, 27, 35, 36
– – Telefónica Deutschland 17, 34, 35
– – UK 8, 37, 38, 39
Executives
– – Alierta, César 6
– – Alonso, Chema 19
– – Álvarez-Pallete Lopez, José María 6, 7
– – Bacic, Katrin 8
– – Blanco, Fabián 8
– – Caride, Eduardo 7
– – De Carvajal, Pablo 7
– – Garcia, Juan Carlos 15
– – Gayo, Emilio 6
– – Gebara, Christian 31
– – Gilpérez López, Luis Miguel 6, 11
– – Gómez, Alfonso 7
– – Gomez, Sergio 8
– – Gonzalez de Santiago 8
– – Hernández, Fabián 7
– – Horcajo, Alberto 7
– – Keates, Rob 8
– – Lopez Blanco, Carlos 7
– – Machicot, Marta 7
– – Martin, Mario 7
– – Mata, Joaquin 11
– – Navarro, Eduardo 7
– – Quinn, Bernardo 7
– – Sainz, Natalia 7
– – Sánchez de Lérin, Ramiro 7
– – Vilá, Ángel 7, 31
– Ex-executives
– – Rosen, Daniel 8
– Global Resources
– – 5TONIC 12, 13, 14
– – Telefónica Business Solutions 8, 34
– – Telefónica Ingeniería de Seguridad 8
– – Telxius 7
– Latin America
– – Argentina 27, 29
– – Brazil 26, 29, 30, 31
– – Chile 30
– – Mexico 15, 29
– – Vivo 15, 29, 30, 31
– Movistar+ 36
– Products and services
– – Fusión 6, 36
– – Movistar+ 36
– – Movistar Play 31
– – Movistar TV 26, 31
– – Movistar VeriSure Hogar 39
– – O2 Drive 38
– – O2 Home 38
– – O2 o 37, 38
– – O2 Priority 37
– – pay-TV 26, 27, 29, 31, 36
Tutela Technologies 15
Twitter 29

V

Verizon Communications 39
– Verizon Wireless 39
Videobuster.de 35
Vodafone Group 15, 35, 36, 37
– Germany 35
– Spain 36
– UK 37
Volkswagen Group
– SEAT 12

W

Wyplay 26, 27, 30, 31

Z

ZTE 12, 17

About

About Telefónicawatch

Report: #123
Published: January 2018
Next report: February 2018
For more information visit: Telefónicawatch