June 21, 2016

Oi! Telco 2.0 News Review

Oi! Where’s my money? Gone; Arora quits Softbank; Free says goodbye to Orange

Time was when Brazilian consolidation was a hot story in telecoms. Now, on the boom has come the crash, and no-one’s talking about how to get their paws on TIM Brasil any more. Instead, Oi has gone bankrupt, owing some $19bn to various creditors. It’s the biggest bankruptcy in Brazilian history and the first major telco to go bust since the days of Global Crossing, 360Networks and friends.

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June 16, 2016

Google/Telcos’ RCS: Dark Horse or Dead Horse?

Can leading telcos and Google build a strong enough messaging proposition to take on Facebook, WeChat, WhatsApp et al? Our latest report, “Google/Telcos’ RCS: Dark Horse or Dead Horse?” investigates.

Mobile messaging is fast becoming a key platform for digital commerce, mounting a challenge to Google Search, Amazon’s Marketplace and other two-sided platforms. As Facebook gears up to take advantage of this opportunity, some of the world’s largest telcos are working with Google to develop and deploy multimedia communications services that will work across networks and will replace SMS. But will it be too little, too late?

This report is part of our Dealing with Disruption stream and you can read an extract here.

For more information on any of our services, please email contact@telco2.net or call +44 207 247 5003.

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June 14, 2016

Microsoft Buys LinkedIn: The Value of a Huge Directory

So Microsoft has acquired LinkedIn, for a $26bn cash consideration. Leaving aside the possibility Satya Nadella thinks he’s finally found a way to stop them sending him so much e-mail, what is Microsoft thinking?

The bear case is pretty clear. LinkedIn lost $166m for 2015, and Microsoft paid a premium of nearly 50% over Friday’s closing price. The losses are getting worse, too - in Q1 2015, the company lost $17m at the operating level, which had risen to $66m in Q1 2016, putting them dangerously close to beating 2015’s loss in the first half of 2016. Meanwhile, Microsoft shares fell 2.6% on the news. Depending on whether you like total users or monthly-active users (MAUs), Microsoft paid somewhere between $60 a user and $250 a user. The deal values LinkedIn at 7 per cent of Microsoft’s market capitalisation, as much as Sky TV. Really… is it worth that much?

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June 13, 2016

Valley Special: Telco 2.0 News Review

WWDC: Intel modems in iPhone, ads in the App store; Google Fiber Wireless? MS LinkedIn; RIP Tom Perkins

It’s Apple WWDC week. First up, there’s a huge story in the semiconductor business - some variants of the next lot of iPhones will be getting their LTE modems from Intel, not Qualcomm. After years and years of trying, Intel finally has a major mobile deal and it’s the biggest it could possibly be. Also, it’s another punch in the guts for Qualcomm, especially as modems and other RF components are meant to be one of its biggest growth segments over the next five years, on a par with its push on the data centre.

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June 9, 2016

US Wireless Market: Early Warning Signs of Change

We’ve published “US Wireless Market: Early Warning Signs of Change”.

We see early-warning signs of new changes afoot in the influential US mobile market in both growth and competitive market dynamics. Verizon Wireless was the biggest winner from the market’s recent growth. But now things are slowing and challenger T-Mobile is breaking into the premium segment. What are the lessons?

This report is part of the Teclo 2.0 Executive Briefing Service and you can read an extract here.

For more information on any of our services, please email contact@telco2.net or call +44 207 247 5003.

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June 6, 2016

Apple vs Amazon in TV, Softbank, Smartphone Volumes, Euro M&A: Telco 2.0 News Review

Apple vs Amazon Prime; Apple, 3rd STB maker; TiVo Q2; Ad bubble; exit Facebook Notify

Why won’t Apple let you watch Amazon Prime video on your Apple TV? Why won’t Amazon sell you an Apple TV? Well, it’s because Apple wants its full 30 per cent App Store commission on any Amazon sales on their platform, and Jeff Bezos won’t have it. This is important, as the Apple TV is creeping up on the market - Apple is now the third set-top vendor after Arris and Technicolor, selling about 10 million boxes a year.

Continue reading "Apple vs Amazon in TV, Softbank, Smartphone Volumes, Euro M&A: Telco 2.0 News Review" »

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May 31, 2016

5G, Verizon, 700MHz, HPE, Microsoft, Spotify: Telco 2.0 News Review

5G: Verizon fixed-wireless plans, Samsung Research, plus Nokia, Bouygues, SFR, DTAG, Intel news

Here’s an interesting panel on 5G - Verizon director of corporate technology, Gerry Flynn, is very clear that they are thinking primarily in terms of fixed wireless in the 28GHz band when they say 5G and they mean to shoot for very high data rates. AT&T’s director of advanced radio technologies, Arun Ghosh, makes the interesting point that the technology barrier for millimetre-wave spectrum is getting from a dish antenna to something you can fit in a phone. Obviously this is less of a problem if the form-factor is “something on the roof”.

If this Samsung European R&D presentation is anything to go by, they’re making progress on the problem. Also, 5G and 802.11ax WiFi have a lot in common, and the real gains from beamforming kick in once you start doing it in 3D.

CEO Lowell McAdam fills in some more detail. He says the carrier has tested up to 1.8Gbps, that he expects the roll-out to justify the CAPEX bill based purely on fixed-wireless, and that VZ will use it to expand its gigabit services beyond the FiOS footprint. That’s pretty big; the current rush to get more FTTH or DOCSIS 3.1 out there just got a new participant.

Continue reading "5G, Verizon, 700MHz, HPE, Microsoft, Spotify: Telco 2.0 News Review" »

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May 26, 2016

SD-WAN: New Enterprise Opportunity for Telcos, or a Threat to MPLS, SDN & NFV?

We’ve published “SD-WAN: New Enterprise Opportunity for Telcos, or a Threat to MPLS, SDN & NFV?

Software-Defined Wide Area Networks (SD-WANs) have catapulted to prominence in the enterprise networking world in the last 12 months, driven by the growth of demand for access to cloud applications, and businesses’ desire to control WAN costs and complexity. SD-WAN may be a new “intermediary” layer in the network which has the potential to disrupt telcos’ enterprise aspirations, particularly given that it is dominated by vendors and specialist providers rather than telcos. SD-WAN may reduce operators’ MPLS and WAN services revenues and could potentially restrict future NFV/SDN opportunities. But SD-WAN also offers opportunities, where it is embraced - tactically - as part of operators’ enterprise portfolios.

This report is part of the Teclo 2.0 Future of the Network Stream and the Cloud and Enterprise ICT Stream and you can read an extract here.

For more information on any of our services, please email contact@telco2.net or call +44 207 247 5003.

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May 23, 2016

Google I/O, Gigabit Cable, Xiaomi, Yahoo! - Telco 2.0 News Review

Google I/O: new apps, Assistant, radar UX, Chromebooks, TPU, much more

It was Google I/O time. Google announced a wave of new products, very few of them original, but all circling around what they hope is a competitive advantage in natural language processing, machine learning, and the data centres that underpin them.

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May 20, 2016

7 NFV Hurdles: DTAG, NTT, Verizon, Vodafone, Swisscom and Comcast

There are still major barriers to NFV transformation. Our latest analysis identifies seven key barriers that have slowed NFV roll out across six operators (Deutsche Telekom, NTT, Verizon, Vodafone, Swisscom and Comcast), and the approaches being used to overcome them.

This report is part of the Executive Briefing Servce and Telco 2.0 Transformation Stream, and you can read an extract here.

For more information on any of our services, please email contact@telco2.net or call +44 207 247 5003.

Extract chart from the report:

7NFVchallenges fig 1.pngSource: STL Partners

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May 16, 2016

Euregulators, WiFi, Google, Apple R&D, Alibaba, 5G: Telco 2.0 News Review

Euregulators nix 3UK/O2, probe DTAG vectoring; OFCOM consults on 160MHz more WiFi

Rewheel’s latest report points out that there is a drastic disparity in data pricing within Europe, and it’s between the markets with three or fewer operators, and the rest. In three-operator Germany, Vodafone users get 1GB of data for the same money, €35/mo, that gets Vodafone users in the four-operator UK 20GB. Typical data bundles in Holland doubled at the same price point after Tele2 launched the fourth 4G network. And France, once the dearest and least competitive market in Europe, is now the second-cheapest, powered by Free Mobile’s price-slashing.

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It’s no surprise, then, that the European Commission has announced its veto on the 3UK/O2 deal.

Continue reading "Euregulators, WiFi, Google, Apple R&D, Alibaba, 5G: Telco 2.0 News Review" »

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May 11, 2016

Vertical Innovation Leaders: How Telstra’s Healthcare Jigsaw is Coming Together

We’ve published “Vertical Innovation Leaders: How Telstra’s Healthcare Jigsaw is Coming Together”.

We analyse the aggressive strategy Telstra has chosen to develop its digital healthcare business - which relies heavily on acquisitions across the whole eHealth value chain - and discuss how this fits into a wider companywide digital strategy, what it will take for Telstra to succeed in this vertical, and what insights other telcos can take away about their own digital health strategies.

This report is part of the Telco 2.0 Cloud & Enterprise ICT Stream and you can read an extract here.

For more information on any of our services, please email contact@telco2.net or call +44 207 247 5003.

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May 9, 2016

5G, Sprint, T-Mobile, BT, Ghana, Charter, Comcast: Telco 2.0 News Review

Sprint’s 5G plans; LTE-U tests clear for take-off; NI’s “beast” of a SDR; LTE-B use cases

Once VZW started the music playing, everyone had to get up and dance. This week, it’s Sprint that’s setting out plans to have something described as 5G out in the field as soon as possible. CEO Marcelo Claure is promising to have a trial of millimetre-wave spectrum at two of the stadiums for the Copa America in June, with Nokia and Ericsson. As always with Sprint, it’s all about trying to find a use for that 2.5GHz block - apparently it’s “the low-band spectrum for 5G”. We can remember when it was the “beach-front spectrum for 4G”.

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May 5, 2016

Can Telcos Entertain You? Vodafone and MTN’s Emerging Market Strategies

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May 3, 2016

Apple, Samsung, Intel, Facebook, Twitter, Amazon: Telco 2.0 News Review

Apple’s mediocre Q1; Samsung beats the Street; smartphone shipments drop; Google Devices; Xiaomi

Apple Q1s are in, and it was a significant down quarter. Revenue was off $8bn year-on-year, 13 per cent, while net income was down $3.1bn, 22 per cent, as gross margins dropped from 40.8% to 39.4%. (The document is here.) ZDNet digs into the operational volumes, and discovers a surprise - not only does the iPad seem saturated, but it was a horrible quarter for Macs, the worst since Q2 2014. iPhone numbers weren’t all that bad - it was still the fourth-biggest iQuarter ever - but the average selling price has slipped by almost $50 a phone. Because Apple derives a lot of margin from selling the extra Flash storage in a 64GB iPhone, customers trimming on the specifications is a disproportionate hit to profitability.

2016-04-2622-15-41.jpgNaturally, the punditsphere is racing to explain this with artificial intelligence, drones, bots, and the like. But it could just be good old-fashioned competition.

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