5G Infrastructure


Vodafonewatch
This release
: #167
August 2018: 64pp
Releases/year: 10+
Click for more details of this release

EXECUTIVE BRIEF

MANAGEMENT UPDATE: Q1 FY18-19 [p.6]

  • Trouble on horizon as Colao signs out
  • “Broad-based” growth remains a distant dream
  • Tables 1-3: Vodafone Group revenue summaries, Q1 FY18-19

DEALS: Axiata remains on board the Vodafone Idea ship, for now [p.13]

  • Axiata seems bit-part player, and heading for exit

LEGAL AND REGULATORY: Vodafone gives qualified welcome to new EU digital code [p.16]

  • Table: Vodafone report card on Brussels' new European Electronic Communications Code
  • Colao moots FTTP co-investment tie-ups

PEOPLE [p.19]

  • Table: People movement highlights

SUPPLY CHAIN [p.22]

  • Table: Partner/supplier people movement highlights

TECHNOLOGY: Why Vodafone has bought tickets for 'Blade Runner II' [p.25]

  • Platform-based business model
  • Skynet deals with cloud roaming

EUROPE: Vodafone Germany talks tough over 5G access rights [p.30]

  • 5G turf war
  • VfD jumps on super-vectoring bandwagon

Ireland: SIRO misses out on phase-one target, but CEO bullish [p.34]

Spain: VfS parks bus as Telefónica launches TV football attack [p.37]

  • Telefónica baffled by Vodafone not playing ball
  • VfS biggest spender in 5G spectrum auction
  • Coming Italian and German auctions will test Group 5G spend resolve

UK: No near-term TV plan in UK [p.43]

  • Ofcom drops investigation into Vodafone Pass
  • VfUK hit by another high-profile enterprise service setback

AUSTRALIA: VHA gets 3.6GHz boost, but 5G picture still fuzzy [p.46]

  • No leg-up for TPG
  • More 5G spectrum on way…but will VHA splash the cash?

New Zealand: VfNZ joins Group push on digital automation with IBM [p.49]

Turkey: VfT trials broadband collaboration with Türk Telekom [p.52]

VODACOM GROUP: VdT gains much-needed sub-1GHz add-on [p.54]

  • Encouraging signs for Vodacom's broader airwave push

FURTHER READING

INDEX

A

Accenture 21, 41
Aditya Birla Group 13
- Idea Cellular 7, 8, 10, 11, 13, 15, 20
Africa 10, 21, 22, 45, 56, 59
- Congo 20, 55
- Egypt 10, 48, 59
- Ethiopia 59
- Kenya 56, 59
- Mozambique 55
- South Africa 10, 20, 22, 55, 56
-- Competition Commission 15
-- Government 55
- Sub-Sahara 10
- Tanzania 55, 59
Agile Software Inc. 50
Alcatel-Lucent 41
Alfa Group
- Altimo (Alfa Telecom International Mobile)
-- Turkcell (see Curkurova/TeliaSonera/separate) 52, 53
Altice Group 41
Amazon.com Inc. 28, 33, 43
- Amazon Web Services 28
Americas
- Canada 22
- USA 26, 51
Asia-Pacific 13, 15
- Australia 21, 46, 47, 48, 51, 59
-- Australian Communications & Media Authority (ACMA) 46, 47, 59
-- National Broadband Network (NBN) 46, 47
- Bangladesh 15
- China 15
- Hong Kong 15
- India 7, 8, 9, 10, 11, 13, 14, 15, 20, 57
-- Department of Telecommunications (DoT) 14, 15
- Indonesia 15
- Japan 15
- Malaysia 15
- Myanmar 15
- Nepal 15
- New Zealand 49, 51, 59
- Singapore 15
- Sri Lanka 15
- Taiwan 15
AT&T 27
Australian Competition and Consumer Commission (ACCC) 47
Avanti Communications Group plc 21
Axiata Group Bhd (TM International) 13, 14, 15, 57
- India (Idea Cellular, see also Aditya Birla) 7, 8, 9, 10, 11, 13, 14, 15, 20, 57
- Singapore (Mobile One, see separate) 15

B

BAE Systems 24
BearingPoint 27
Bharti Group 9, 15, 20, 57
- Airtel 9, 15, 20, 55, 57
-- Bharti Infratel 15
-- Vittal, Gopal 9
- Bharti Enterprises
-- Comviva Technologies (Bharti Telesoft) 20, 21
- Indus Towers 7, 10, 15, 20
Bloomberg L.P. 7
British Broadcasting Corp. (BBC) 43
BT Group 26, 27

C

Caldera 20
China Mobile 15
Cisco Systems 41
Conexus Mobile Alliance 15
C.P.A. Czech s.r.o. 50
Cukurova Holding
- Turkcell (see Altimo/TeliaSonera/separate) 52, 53

D

Dar es Salaam Stock Exchange 56
Dell Technologies
- VMware 22
Deutsche Telekom 58
- Germany 18, 30, 33, 58
Dixons Carphone 21
Drillisch AG 32
du (Emirates Integrated Telecommunications) 27

E

Electricity Supply Board (Ireland) 18, 34
Elliott Management Corporation 7
Emblaze Group
- European Telecom 18
EMC
- VMware 22
Enel SpA 18
Ericsson 21, 26
Europe 7, 9, 10, 16, 20, 21, 22, 26, 29, 57, 58
- Czech Republic 11, 21
- Denmark 21
- Finland 21
- France 20
- Germany 9, 11, 18, 20, 21, 22, 30, 31, 32, 33, 36, 40, 53, 58
-- Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen (BNetzA, RegTP, FNA, or German Federal Network Agency) 31, 36, 58
-- Länder
--- Berlin 32
--- North Rhine-Westphalia (Düsseldorf) 9, 21
- Greece 9, 10, 36, 58
- Hungary 11, 21, 36, 40, 58
- Ireland 9, 10, 17, 18, 34, 35, 58
- Italy 6, 7, 8, 9, 10, 11, 18, 21, 22, 30, 40
-- Cassa Depositi e Prestiti 18
- Netherlands 40, 41, 58
- Portugal 9, 10, 26, 41, 58
-- Competition Authority (AdC) 41
- Romania 9, 11, 40
- Serbia 21
- Spain 6, 7, 8, 9, 10, 22, 37, 38, 39, 40, 41, 58
- Sweden 21
- Turkey 10, 20, 21, 52, 53, 59
- United Kingdom (UK) 7, 9, 18, 20, 21, 22, 24, 35, 36, 43, 44, 58
-- Office of Communications (Ofcom) 36, 44
European Union 10, 16, 17, 18, 36, 44, 57
- Council of the European Union 16, 17
- European Commission 17, 18, 57
- European Court of Justice 36
- European Parliament 16, 17

F

Facebook 33, 56
freenet AG (Mobilcom) 31, 58

G

Google 33

H

HSBC 21
Huawei Technologies 33, 39
Hutchison Whampoa 15, 24
- Hutchison Telecommunications Hong Kong Ltd (Hutchinson Telecom/HTHKH/3 Hong Kong) 15
- Vodafone Hutchison Australia Pty Ltd (VHA, (see Vodafone) 21, 46, 47, 48, 59

I

IBM 33, 49, 50, 59
Iliad 8
Indus Towers 7, 10, 15, 20
Infosys Technologies 27

K

KPMG International 19

L

Liberty Global 11, 21, 36
Lloyds Banking Group plc 21

M

Market segments
- Mobile broadband 54
- Mobile virtual network (MVNA/MVNE/MVNO) 30, 31
- Network-sharing 53
- Over-the-top (OTT) 17, 38, 43
- Value-added services (VAS) 22
- Voice 21, 28, 32, 41, 44, 56
Microsoft 19, 41
Middle East 20, 21, 22
- Egypt 10, 48, 59
- Israel 41
- Qatar 21
Millicom International Cellular
- MIC Tanzania Limited (tiGO/ Mobitel/Buzz) 55
- Tigo Ghana 55
Mirambo Ltd 56
Mobile One (Singapore) 15
MTN 56
- South Africa 56

N

Neotel (Pty) Ltd (SNO Telecommunications, see also Reliance) 56
Netflix Inc. 43
Nokia 21, 22
- Alcatel-Lucent 41
NTT 27

O

Oger Telecom
- Avea 53
- Turk Telekom 59
Omnicom 41
Ooredoo 15
Open Network Automation Platform 28
Orange
- Orange 20, 26, 27, 38, 39, 40, 58
- Spain 38, 39, 40, 58

P

Permira
- Genesys Telecommunications Labs 41
PPF Group 21
Promotora de Informaciones, S.A. (Grupo PRISA) 41
- Media Capital 41
Publicis Group 41

R

Riverbed Technology 27

S

Safaricom 56, 59
- M-PESA 59
Singapore Telecom
- Optus (Australia) 21, 46, 47
SoftBank Corp. 15
Sprint Nextel 20

T

Tata Group
- Tata Communications
-- Neotel (see separate listing) 56
Technology
- 2.5G 48
- 2G 21, 31, 40, 48, 55, 56
- 3G 31, 40, 46, 47, 56
-- UMTS 31
- 4G 31, 48, 54, 55, 56
-- Long Term Evolution (LTE) 21, 31, 32, 55
- 5G 18, 25, 26, 28, 30, 31, 32, 36, 39, 40, 46, 47, 48, 58, 59
- AI 33, 49
- Cloud computing 22, 28, 50
- Ethernet 28
- Fibre 16, 17, 18, 21, 33, 34, 35, 44, 52, 53, 56, 58
-- FTTP 17, 18
- FTTH 17
- IoT 20, 21, 22, 24, 25, 26, 28
- IP 41
- MNP 17
- R&D 36
- SIP 41
- SMS 44, 56
- Spectrum 14, 16, 17, 18, 31, 32, 39, 40, 46, 47, 48, 54, 55, 58, 59
-- 700 MHz 40, 48, 54, 55, 59
-- 800 MHz 39, 40, 55
-- 850 MHz 48
-- 900 MHz 39, 40, 48, 55
-- 1000 MHz 54
-- 1800 MHz 39, 48, 55
-- 2100 MHz 39, 48, 55
-- 2500 MHz 48
-- 2600 MHz 39
-- 3500 MHz 40, 46, 47
- Submarine 51
- VDSL 33
- VoIP 41
Tele Columbus 20
Telecom Egypt 48
Telecom Italia 27
Telefónica Group 30, 31, 32, 37, 38, 39, 58
- Europe
-- España 37, 39, 58
- Movistar 38
TeleManagement Forum
- TM Forum 22, 26, 27, 28
Telenor ASA 14, 15, 21
TeliaSonera
- Turkcell (see Alfa/Curkurova/separate) 52, 53
Telstra 46, 47, 59
Texas Pacific Group (TPG) 46, 47
Turkcell (see Alfa/Curkurova/TeliaSonera) 52, 53

U

u-blox 21
UEFA 37, 38, 58
- Champions League 37, 38, 58
United Internet 32, 58
- 1&1 Internet 32, 58
UPC 36

V

Verizon Communications 27
Vodacom Group 10, 15, 19, 20, 21, 54, 55, 56, 59
- Congo 20, 55
- Executives
-- Meza, Rene 15
- Group 10, 20, 54, 55, 56, 59
- Mozambique 55
- South Africa 10, 20, 22, 55, 56
- Tanzania 15, 54, 55, 56, 59
- Vodacom Business 21
Vodafone
- Africa, Middle East, and Asia Pacific Region (AMAP) 7, 10, 20, 45, 59
-- Africa 10, 21, 22, 45, 56, 59
-- Asia 15
-- Australia 21, 46, 48, 51, 59
--- VHA Pty. Ltd (see Hutchison Whampoa) 21, 46, 47, 48
-- Egypt 10, 48, 59
-- Ghana 21
-- India 7, 8, 9, 10, 11, 13, 14, 15, 20, 57
--- Indus Towers 7, 10, 15, 20
-- Kenya (see Safaricom) 56, 59
-- Middle East 20, 21, 22
-- Mozambique 55
-- New Zealand 22, 27, 28, 33, 49, 50, 51, 59
-- Pacific 15
-- Qatar (see Vodafone and Qatar Foundation and Vodafone Qatar) 21
-- South Africa (see Vodacom) 10, 15, 19, 20, 21, 22, 54, 55, 56, 59
-- Turkey 10, 20, 21, 52, 53, 59
--- Koç.net 53
- Board of Directors
-- Kleisterlee, Gerard 7, 11, 15
- Europe Region 9, 10, 29, 58
-- Albania 20
-- Cable & Wireless Worldwide 21
-- Czech Republic 11, 20, 21
-- Germany 9, 11, 18, 20, 21, 22, 30, 31, 32, 33, 36, 40, 44, 50, 53, 58
--- KDG Holding GmbH (Kabel Deutschland) 21
-- Greece 9, 10, 36, 58
-- Hungary 11, 20, 21, 36, 40, 58
-- Ireland 9, 10, 17, 18, 34, 35, 58
--- SIRO 17, 18, 34, 35, 58
-- Italy 6, 7, 8, 9, 10, 11, 18, 21, 22, 30, 33, 40, 50, 53
-- Netherlands 21, 40, 41, 58
--- VodafoneZiggo 21, 41
-- Portugal 9, 10, 26, 41, 58
-- Romania 9, 11, 40
-- Spain 6, 7, 8, 9, 22, 37, 38, 39, 40, 41, 53, 58
-- UK 7, 9, 11, 18, 20, 21, 22, 24, 33, 35, 36, 43, 44, 49, 50, 58
- Executives 24
-- Atkinson, Sean 34
-- Baird, Tony 51
-- Berroeta, Inaki 48
-- Colao, Vittorio 6, 7, 8, 10, 11, 16, 17, 18, 30, 32, 36, 40, 43, 50, 57
-- Cramer, Warrick 20
-- Della Valle, Margherita 11
-- Essam, Ayman 48
-- Joosub, Shameel 55, 56
-- Kawalec, Andrzej 24
-- Lenza, Americo 20
-- Liebenberg, Deon 21
-- Nelson, Amanda 36
-- Pieters, Marten 20
-- Read, Nick 7, 11, 30, 40, 50
-- Schultz, Detlef 19
-- Singh, Niraj 20
-- Sood, Sunil 20
-- Stanners, Russell 51
-- Streichert, Till 56
-- Walz, Peter 20
-- Wibergh, Johan 26
- Ex-executives
-- Bennett, Carl 21
-- Geldmacher, Jan 20
-- Morrow, Bill 47
-- Tsalikidis, Kostas 36
-- Whitehill, Kyle 21
- Group 7, 20, 21, 22, 24, 50, 57, 58
-- Americas (see Verizon Wireless) 24
-- Partner Markets 15
--- Hong Kong (Hutchison Telecom) 15
--- Kenya (Safaricom) 56, 59
--- Singapore (StarHub) 15
--- Taiwan (FarEasTone) 15
--- United Arab Emirates (du) 27
-- Vodafone Automotive (formerly Cobra Automotive Technologies) 20
-- Vodafone Carrier Services 20
-- Vodafone Global Enterprise (VGE) 20, 21, 24
- Products
-- 360 11
-- Europe 9
-- Liberty (Malta) 11, 21, 36
-- Mondrian 11
-- One 38
-- Vodafone Pass 36, 44
-- Vodafone TV 37, 38, 43
Vodafone Qatar Q.S.C. 21

W

WPP 24, 41

  • Familiar tale of Vodafone seeking to maximise control over partners and dampen competitive threat.

Vodafone Germany (VfD) appeared to remain fully aligned with the thinking of Group leadership on attitudes towards mobile network virtual operators (MVNO) as it enters the 5G era.

In Germany, the issue of 5G network access seems to have erupted into all-out war, with VfD and rivals Telefónica Deutschland and Telekom Deutschland on one side, and service providers without their own networks on the other. The three mobile network operators (MNO) do not see why they should open their expensive 5G networks to other service providers that make no network investments themselves, and thus want to exclude the so-called Diensteanbieterverpflichtung (service provider obligation) from 5G licences.

Group Chief Executive (CEO) Vittorio Colao and Chief Financial Officer Nick Read have long espoused tight control over MVNO access, as part of their preoccupation with delivering “quality revenue”. Colao is thought to insist on personally reviewing every wholesale mobile deal considered by OpCos. The Italian has been arguing that it will be harder for MVNOs to make an impact in 5G, maintaining Vodafone’s long-held desire for control over which services providers have access to and how closely they can tie in with its platform (Vodafonewatch, #165 and passim).

5G turf war

The opposing argument facing the MNOs is that alternative players are essential to ensure there is sufficient competition in the provision of 5G services, but now face an existential threat. German alternative operator freenet has established a dedicated website, www.diensteanbieterverpflichtung.de, which raises the concern that competition will be limited in the 5G market if virtual service providers are barred from entry.

The fact that the service provider obligation was included in 2G and 3G licences, but not in 4G, is cited as indicative of what might lie ahead for 5G. The freenet site asserts that the lack of competition in 4G, caused by the absence of the access obligation, means that, “in addition to poor network performance, we also have to endure high prices and low data volumes”. “LTE marketing without a newly created service provider commitment was obviously not a success. This error should not be repeated with 5G”, the site states.

The matter has now also flared up between members of the Association of Telecommunications and Value-Added Service Providers (VATM). According to internal minutes of a VATM meeting seen by Wirtschaftswoche, VfD and Telefónica – both members of the VATM – are blocking advances by MVNOs to retain access to 5G networks, and are also using their strong positions in the industry to prevent the VATM from speaking out in favour of these requirements. Telefónica has been even more explicit on the subject. It has openly called for the Diensteanbieterverpflichtung to be excluded from 5G, saying it will not give companies “that do not spend a penny on Germany’s digital infrastructure” access to 5G mobile networks.

If the service provider obligation is excluded from 5G, MVNOs in Germany could be barred from offering 5G services – a situation that would not be unwelcome to VfD and its two MNO rivals, but which could threaten the very existence of some MVNOs.

As things stand, it seems that network agency Bundesnetzagentur (BNetzA), which intends to auction 5G spectrum in the 2GHz and 3.4GHz-3.7GHz bands at the start of 2019, will have the final say on access conditions, although a decision has yet to be made. In a communication published on 13 July 2018, the BNetzA did note that the interests of service providers were discussed at a hearing on the 5G frequency auction. “Service providers make a significant contribution to the competition. The service provider commitments currently under the UMTS licences will end in 2020. It is therefore important to examine how service providers can maintain this role”, the agency said.

Mobile pact: protectionism or pragmatism?

Tied to the contentious issues of network access and competition, rival service providers that do not operate their own networks have openly criticised a “mobile pact” agreed by federal and state governments, municipal associations, and the CEOs of VfD, Telekom, and Telefónica to eradicate areas without mobile voice and data network coverage in Germany.

For more on this story, including details of Group concerns to keep 5G costs in check, see the full report.

Image: Karlis Dambrans / Flickr (CC BY 2.0)

Sign up for Vodafone alerts and updates

Vodafonewatch

Information and Insight into Vodafone, its people, deals and strategy that you won’t find anywhere else.

Telco insight for Telco leaders - making information work for you to help you get ahead

Teams that use Vodafonewatch accelerate and grow their business faster....

WHAT'S INSIDE the FULL REPORTS?

Insider information and analysis that you will not find anywhere else, including:

  • Strategy and objectives.
  • Vendor partnerships.
  • People movements.
  • Deals and trends.
  • Industry and analyst events/activity.

"There is nothing comparable internally in Vodafone" - Director, Vodafone

CRITICAL AREAS of focus include:

  • Challenges/Opportunities.
  • Disruption and change.
  • Strategy and objectives.
  • Contracts and deals.
  • Innovation.
  • OPEX/capex.
  • Technology developments.

“Very deep level of insight on the Vodafone way of working" - Head of Engagement, Ericsson

EXCLUSIVE INSIGHTS uncovered to help you:

  • Get ahead of rivals and colleagues.
  • Open doors, find more deals, faster.
  • Go native as the expert on Vodafone.

"All of the information I need in one place.” - Head of Quality, Vodafone

Click here to download a sample to evaluate.