August 3, 2015

Nokia, OpenDaylight, Samsung, Euro Carriers, Robots: Telco 2.0 News Review

Nokia Q2s surge; ALU losing less; 359 OpenDaylight devs; SKT/Ericsson 5G cloud; VZW small cells

Nokia Networks’ Q2s are in and they’re impressively strong, with net sales up 9% year on year and net profits ahead 60%. Further, Nokia’s gross margin is now higher than Ericsson’s, suggesting that Nokia’s increasingly edge-focused product line is doing something for them. Nokia’s partner in the forthcoming merger, Alcatel-Lucent, reported that its Q2 generated positive FCF for the first time since 2006 - in other words, the original Alcatel / Lucent merger has taken an awfully long time to work out. Overall, revenue was down 8%, but if you exclude managed services and some other stuff, it was up 6%.

Why you should exclude managed services is another question.

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July 27, 2015

Q2 Explosion! AT&T, VZ, Telenor, China Tel, Amazon, Qualcomm, Apple: Telco 2.0 News Review

Carrier Q2s: AT&T saved by lower CAPEX and M2M volume; VZW, Telenor, China Telecom surge

Verizon Q2s are in. Wireless revenue was up 5.3% year on year, with 1.1m postpaid net-adds. Service revenue was down 2.2% as the general shift of emphasis from service pricing to device sales kicked in (device sales are up from $2.4bn to $3.9bn). 87% of wireless traffic is now on 4G.

AT&T, meanwhile, boasted of a 2m net-add quarter, “triple the 634k” recorded in Q2 2014, but on closer examination that included 1.4m M2M net-adds. The postpaid net-adds number was 410k, but this also includes 659k tablets, so the core business result was a net-loss of 249k phone subscribers. Ouch.

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July 22, 2015

The European Telecoms market in 2020, Report 2: 4 scenarios and 7 predictions


We’ve just published a new research paper ‘The European Telecoms market in 2020, Report 2: 4 scenarios and 7 predictions’. Seven predictions and four scenarios for how the industry might play out in Europe in the next 5 years: ‘Digital Renaissance’, ‘Back to the Future’, ‘Commoditised Utility’ and ‘Telco Trainwreck’. Plus what are the take-outs for other markets?

The report is part of the Executive Briefing Service and Telco 2.0 Transformation stream, and you can read an excerpt of the report 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:

Future Europe Part 2 Cover.png

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July 20, 2015

Microsoft, Apple, Google, Huawei, Qualcomm, SKT: Telco 2.0 News Review

New STL Research: Ten forces shape the European telecoms market. Which ones will win?

Microsoft writes off Nokia but phones stay for now; pivoting to a comms-based business; Gigjam; Windows 10 updates

Microsoft bites the bullet and writes off the whole acquisition of Nokia Devices & Services. That’ll be $7.6bn, plus $800m in restructuring costs to pay off the 7,800 people who lose their jobs, so Microsoft has essentially lost every penny it put into the phones business back in 2011. Unsurprisingly, Stephen Elop has left the building. Satya Nadella, meanwhile, says:

I am committed to our first-party devices including phones. However, we need to focus our phone efforts in the near term while driving reinvention. We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem that includes our first-party device family.

Whatever that means (and Lucy Kellaway addresses this question at the FT). It sounds like the phones are staying, but emphasis is moving elsewhere - surely not to Windows Phone licensing, so more likely towards cross-platform apps and services.

Continue reading "Microsoft, Apple, Google, Huawei, Qualcomm, SKT: Telco 2.0 News Review" »

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July 15, 2015

The European Telecoms market in 2020: Evaluating 10 forces of change


We’ve just published a new research paper ‘The European Telecoms market in 2020, Report 1: Evaluating 10 forces of change’. In the first of two reports, STL Partners evaluates how several powerful forces, within and beyond the control of telcos, look set to change the shape of the European market and considers the options for how these might develop going forward. The forces covered are:

  1. Regulation
  2. Competition
  3. Revenue outlook (for core services)
  4. Technological changes
  5. Capital markets/investor attitudes
  6. Customer attitudes and behaviour
  7. Telco vision and aspirations
  8. Telco culture, skills, partnerships and assets
  9. M&A
  10. Absolute and relative capex and opex (compared with OTT players)

The report is part of the Telco 2.0 Transformation stream, and you can read an excerpt 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:

Blog Thumbnail.png

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July 10, 2015

What do telcos need to do to be more agile?


Our latest research How to be Agile: Agility by Design and Information Intensity looks at how agile are telcos today, the barriers and opportunities, and what can be done to improve agility.

We found that the majority of telcos might be described as ‘moderately agile’, and critically, telcos need to move beyond wanting to be agile to taking actions in terms of how they are organised, how leaders and teams are empowered to make decisions, and the metrics they use. See more here.

The Majority of Telcos Profiled themselves as Moderately Agile
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July 6, 2015

APAC Special, NORMA, Fibre Race, no DISH, T-Drones: Telco 2.0 News Review

Chinese slowdown, but €1bn of orders for ALU; Bharti hits No.3; AWS opens in India

The Chinese market for smartphones, PCs, and tablets is expected to grow only 1.3% this year, as against 15.2% last year, according to IDC, and as we know, Apple has got its teeth into the bulk of it. Strategy Analytics concurs, arguing that Chinese smartphone penetration is rapidly converging on the same levels as in Europe and North America, and that therefore, what happens in India will determine what happens in smartphones over the next couple of years. Shipments there are expected to rise 43% this year and exceed those in the USA in 2017. That said, SA has also issued a forecast for 5G handset shipments before any 5G handsets exist, so perhaps a word of caution is in order.

In a new Telco 2.0 Dealing with Disruption report, we identify some of the most disruptive operators. Three of them are based in Asia. Get our in-depth coverage here

Continue reading "APAC Special, NORMA, Fibre Race, no DISH, T-Drones: Telco 2.0 News Review" »

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July 2, 2015

Telco-Driven Disruption: What NTT DOCOMO, KT and Globe got right


NTT Docomo earns 15% of its revenues from non-traditional sources, the largest proportion of any telco worldwide. Our latest ‘Dealing with Disruption’ stream research briefing ‘What NTT DOCOMO, KT and Globe got right’ looks at how DOCOMO did it, what did it learn, and what else can be learned from other telco attempts at disruptive innovation?

As they seek new sources of revenue, many telcos around the world are attempting to disrupt adjacent markets, such as digital commerce, IT, entertainment and financial services. While many of these moves have proved to be too little, too late, several disruptive plays have had a significant impact on both the telco’s revenues and relevance.

As well as NTT DOCOMO’s Smart Life portfolio, these include Globe Telecom’s GCash service and KT’s media business, as well as some of those we looked at in the first report in this series (which included BT Sport, SK Planet and AT&T Digital Life and others). Why do some disruptive moves by telcos succeed and others fail? More here.

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June 29, 2015

Gigabit Race; Sprint CTO; EU Regulators; Alexa Fund - Telco 2.0 News Review

The Gigabit Race: AT&T, Google, Centurylink, Bell, TalkTalk.

AT&T’s GigaPower FTTH rollout has expanded again, with the suburbs of Dallas and Fort Worth targeted with gigabit fibre. The exchange-side Optical Network Terminals (ONTs) are being provided as virtualised functions from their SDN deployment.

Meanwhile, Google has begun deploying fibre in Salt Lake City and Nashville, using the existing power poles. They’ve also started rolling out in Raleigh, North Carolina, this week.

Continue reading "Gigabit Race; Sprint CTO; EU Regulators; Alexa Fund - Telco 2.0 News Review" »

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June 24, 2015

Mobile Authentication: Telcos’ Key to the Digital World?


We’ve just published a new research paper ‘Mobile Authentication: Telcos’ Key to the Digital World?’. Mobile Authentication could be Telcos’ key asset in the digital economy, but they are in danger of losing out through insufficient action. There are good case studies and an excellent blueprint in the GSMA’s Mobile Connect initiative for how to monetise their assets and stay relevant. So why aren’t they getting on with it?

The report is part of the Executive Briefing Service and Dealing with Disruption stream, and you can read an excerpt of the report 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:

Digital Identity Ecosystem.png

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June 22, 2015

GigaTWC, first neutrality complaint, Altice, Nokia, Spark, Apple: Telco 2.0 News Review

Backing out of the price war? Sprint upgrade forever delayed; Comcas-T denied; TWC gigabit cable; 5G timeline

Last week, T-Mobile stopped offering its $100/mo share plans. This week, Sprint CEO Marcelo Claure suggested that their next move on pricing might be upwards, at least for their unlimited plan. Is this evidence that US carriers are looking for an exit from the price wars? Perhaps. T-Mobile added 2GB of tethering data to its unlimited plan this week, making the plan marginally more generous at the same price point and demonstrating just how flexible the term “unlimited” is.

Continue reading "GigaTWC, first neutrality complaint, Altice, Nokia, Spark, Apple: Telco 2.0 News Review" »

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June 17, 2015

Repremiumization: The dangerous self-deception at work in European Telcos


We’ve just published a new research paper ‘Repremiumization: The dangerous self-deception at work in European Telcos’. As several operators in Europe downsize their Telco 2.0 Digital Services activity, some are seeking to reframe the Piper strategy as a premium-priced differentiation play based on network quality. This report argues this is deluded and dangerous - a Piper strategy is viable but only by developing cost-leadership in a commodity market.

The report is part of the Executive Briefing Service, and you can read an excerpt of the report here.

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

We see repremiumization as a self-deception strategy…

FIgure 1.jpg

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June 16, 2015

WWDC, Gigabit Mobile, LA munifibre, Title II, double the cloud: Telco 2.0 News Review

WWDC - a substantial range of incremental change

Apple’s WWDC was mostly about incremental change, but that doesn’t mean it wasn’t significant. The new version of iOS, for example, seems to make it much more business-focused and may be setting the stage for an “iPad Pro”. A summary of the changes is here. There are also some new apps - Apple is introducing a new push-driven search app called Proactive that is essentially a clone of Google Now, and there’s a news aggregator that is meant to learn from your history, rather like Samsung’s beloved Flipboard.

Continue reading "WWDC, Gigabit Mobile, LA munifibre, Title II, double the cloud: Telco 2.0 News Review" »

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June 13, 2015

How 5G is Disrupting Cloud and Network Strategy Today

A primary benefit envisaged of ‘5G’ networks is that latency (i.e. delay times for users) will be massively reduced. This would deliver major benefits for many applications providing that the software for those cloud-based applications is located near enough to the users at the edge of the network. This is likely to drive a massive change in the architecture of the cloud and the network industries.

Our latest report outlines likely scenarios and identifies some early moves that are starting to play out now, such as the merger between Nokia and Alcatel.

There’s also some interesting analysis that suggests that cloud players are not all just building bigger and bigger data centres (see chart below, for example) which gives some further support to the idea that the cloud is already becoming more local - or at least, is not just moving even further away,

data centre size june 2015.png

The table of contents plus part of the introduction that outlines the importance of latency are below, and you can read more on our research portal here.

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June 8, 2015

Nokia Edge Cloud, Vodafone-Liberty Global, Apple Streaming, Nielwatch: Telco 2.0 News Review

Nokia launches cloud servers for 5G; North America at 44% 4G; Telenor to drop 3G early; all-digital radio

Well, what have we here? Nokia Networks has launched a new product line, Airframe, consisting of Intel-based servers optimised for cloud services and specifically for the emerging Mobile Edge Computing space. This would roll cloud and hosting servers right into the fabric of 5G networks, bringing them close to the radio air interface to take advantage of the low latency targets. We knew since MWC that Nokia is very, very keen on this, and now here’s some backing with actual money. Here’s an interesting quote:

So you end up with a mix of distributed small datacenters and larger central ones as our model of how networks will evolve going forward

The release is here. Later this week, we’ll be publishing a new Executive Briefing in our Future of the Network stream that addresses the impact of 5G on the cloud and the data centre, so watch this space.

Continue reading "Nokia Edge Cloud, Vodafone-Liberty Global, Apple Streaming, Nielwatch: Telco 2.0 News Review" »

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Telco 2.0 Strategy Report Out Now: Telco Strategy in the Cloud

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