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May 26, 2015

Cable Disruption; 1m eNode-Bs; Google IoT; Bubble Dread! Telco 2.0 News Review

[Ed: NB In case you missed it last week, we’ve just published a new report ‘Key Questions for The Future of the Network, Part 2: Forthcoming Disruptions’, which looks at the key disruptive forces on the network.]

Charter bids for TWC; the gigabit race, in consumer and in business; AT&T fibre build back on

The cable disruption continues. After the Comcast-TWC merger was shot down by the regulators, the original Charter-TWC proposal is back. Charter has apparently agreed to buy TWC for $55bn plus the assumption of $22bn in net debt, paid in a mixture of shares and cash, while it will also complete its acquisition of Bright House in parallel. That will leave Charter with 23m homes in service, as against 27m for the market leader Comcast. The assumption here is that a much bigger No.2 will be far more palatable to the FCC and anti-trust regulators than a much bigger Comcast. The deal could still fall apart, and as a result, there’s a $2bn break fee or “T-Mo bonus”.

Watch this space - a Telco 2.0 Executive Briefing on gigabit cable is coming this week

Charter had to move quickly, and the ultimate owner, John Malone, had to kick in $5bn of his own money - why? Well, after SFR and PTel, Altice, the holding company for Numericable was taking an interest. They’ve consoled themselves by taking 70% of Suddenlink, the rural-focused cableco with 1.5m customers, for some $9bn. That seems dear, especially as Altice is funding the deal entirely with new borrowing.

Meanwhile, Comcast announced six more deployments of 2Gbps FTTH, plus a new 250Mbps service tier on its existing cable network. So far, Comcast cable had 305Mbps in a small number of trials, and 100Mbps as a matter of course, so this is a big speed jump for most of their customers.

Windstream announced that it would be deploying 1Gbps FTTH this year in one market and moving on to five more if that worked well. Frontier’s CEO says they will be deploying more FiOS fibre in the markets they acquired from Verizon. Wave Broadband, an independent fibre ISP on the West Coast, has raised another $130m in funding.

Interestingly, Wave says it’s growing revenue at 10% annually in residential but 25% in business. Frontier says it’s seen 60% more requests for Gigabit Ethernet from its SMB customers this year than it saw in the whole of 2014. Centurylink is trying to get back into profit by upping prices on its legacy products - the idea is that they’ll either pay, or churn onto something new and cheaper to provide. The problem is that both Frontier and Centurylink are saying that their Gigabit Ethernet lines sell a lot cheaper…

AT&T CEO Randall Stephenson says they’re going ahead with their fibre investment plans anyway. You may recall he said they would “pause” them because of Title II reclassification. Stephenson now says he thinks the measure will be “changed” somehow. Alternatively, he’s seen the writing on the wall - speaking to a different audience, he says it’s because of Google Fiber.

And SingTel is trialling 10Gbps speeds on its GPON fibre network.

Vodafone/Liberty Global rumours; Vodafone full-year; VZ to sell Terremark?

The cable excitement continues. John Malone said:

“We’ve looked at that from our side and there would be very substantial synergies if we could find a way to work together or combine the companies with respect to western Europe,” Malone told Bloomberg in an interview.

“There’s the promise of creating enormous shareholder value if we could work it out,” he said, declining to comment on whether the companies were in talks.

The other company is of course Vodafone, often thought to be a potential buyer for Liberty Global, and already a repeat acquirer of cable assets. Last time the rumour mill threw up Vodafone-Liberty, Vodafone shares dived as the market feared a re-run of the share-printing era of Chris Gent. This time, the rumour sent them soaring, up 4%, strongly suggesting that what makes the difference is price.

Some of Vodafone’s shareholders apparently think it should sell off the African, Middle Eastern, and Asia-Pacific networks in order to fund the acquisition of Liberty.

That, of course, would be a massive bet on European economic recovery vis-a-vis high growth emerging markets. Vodafone’s earnings call gives us a read on that. Vodafone’s group-wide service revenue was back in positive territory (just) for the first time in years, by 0.1% year-on-year. That broke down to 6% growth in AMAP and -2.4% in Europe. However, as Vittorio Colao was not surprisingly keen to point out, Europe actually improved quarter-on-quarter. The key driver of basically everything seems to be mobie data, no surprises there, but enterprise was also strong. On the other hand, though, migrating DSL customers in Germany over to KDG seems to come with a small price cut.

Screenshot from 2015-05-26 13:36:09.png

A lot of European operators at the moment seem to be pushing the idea that the worst is over and it’s time to call the turn. Some of those have had to stretch pretty drastically to make that case. But Vodafone’s service revenue was up quarter-on-quarter in Greece. Meanwhile, Eircom reported revenue up 5% in Q1, with its best EBITDA margin since 2010 and 250k 4G subscribers.

O2 UK had a major outage, and was chastised by a government minister on Twitter. Telecom Italia is planning to spin off its towers in order to raise about €1bn. DTAG, meanwhile, says it is “open” to selling T-Mobile USA but is in no hurry.

In the US, it’s being suggested that Verizon might sell the Terremark data centre division to a private-equity buyer, or possibly to Centurylink. Meanwhile, Fran Shammo says the planned mobile video product based on the acquisition of AOL will be a “multi-billion” business, and it will be based on advertising. It won’t, apparently, be “exclusive” content but it will be “different” and some of it might be multicast.

VZW is also looking to lease more dark fibre to connect up its growing small cell fleet. Rather interestingly, Shammo says the decision to deploy more small cells and DAS, and therefore more backhaul, is driven by the experience of the AWS-3 spectrum auction - adding capacity by cell subdivision is cheaper than adding it by deploying more spectrum, but only at these spectrum prices.

Verizon also had something to say about its LTE for Rural America program. 21 4G networks are now up under the program, serving 2.9 million customers. For Sprint’s part, they say 16 of the 30 rural operators who lease spectrum from them under their rural roaming program have launched their LTE networks. After CFO Joe Eltenauer suggested Sprint might not need 600MHz spectrum after all, Marcelo Claure chipped in to avoid any possible misunderstanding.

AT&T, meanwhile, is going to stop promoting standard contracts and shift more subscribers to their Edge quick-upgrade plan. They’re also giving some detail on their plans to deploy 4G in Mexico. Major cities and highways are going to be addressed in the next 18 months before moving out from there.

Bharti Airtel has signed up $2.5bn in financing from two Chinese banks, so it’s a reasonable guess either Huawei or ZTE has an order coming soon enough.

Vodacom has had a difficult year, with total revenue up 2.1% but service revenue up only 0.2%, and net profit down 8.5%. Price pressure in South Africa is significant, and they’ve been moving customers onto big integrated bundles, while the regulator has been tough and the network needed work. Also, M-PESA hasn’t gone over well and they had “challenges with the platform” (presumably, the new Huawei-run one?), and Telkom is rolling out LTE-A.

China Mobile 4G: 1 million base stations; 600Mbps LTE; 5G’s many waveforms; Alcatel’s SDN solution

Dave Burstein blogs China Mobile’s results and notes that they have 140 million 4G subscribers, and are growing fast enough to meet their target of 250m by the end of the year. This requires them to install 400,000 base stations this year, taking them to a million eNode-Bs in service, probably a record. Basically all the revenue growth is coming from data, of course. Not that this is a problem - their service EBITDA margin was 42%! Dave concludes that 4G is now cheap enough that 3G rollouts will stop, as the spectral efficiency gain now outweighs the cost of the equipment and the handsets are under $70.

The Chinese government has budgeted $182bn over the next three years for telecoms infrastructure, essentially FTTH, 4G, and M2M. (More here.)

Huawei and Qualcomm have demonstrated speeds of 600Mbps with LTE Cat11, aggregating three 20MHz carriers and using 256QAM modulation. Not surprisingly, the 3G, 4G, and 5G Wireless Blog points out, the 3GPP is now looking seriously at coming up with a standard and a name for 4.5G or whatever comes after LTE-A and before 5G. The Blog also has lots of interesting 5G-related presentations like this one, which details the incredible array of different radio technologies proposed.

An interesting product; specialised 5GHz temporary backhaul.

Alcatel-Lucent has announced its Network Service Platform, its effort at a comprehensive SDN architecture. HP has sold half its China-based network business.

Genband is consolidating carriers’ TDM equipment and converting the central offices into data centres. They reckon as many as 20,000 might be available in North America. Verizon, meanwhile, reckons that it saves 80% of real estate and 60% of energy costs when it closes a TDM switch.

And in case anyone was wondering what we’d do with all that bandwidth, Spotify adds video.

WRC-19, but not 2019? LTE-LAA rows; 960MHz more WiFi; French minister - no to mergers, yes to investment

Will WRC-19 actually be in 2019? There is some interesting speculation that the world radio conference might be brought forward to 2018 or even 2017 in order to get the necessary allocations for millimetre-wave 5G squared away early. NTT DoCoMo, Ericsson, and Nokia Networks have been experimenting seriously with the 15 and 60GHz bands, so perhaps it’s time to hurry up?

Here’s a really fascinating debate about LTE-LAA and WiFi. Note the Cisco representative saying that everyone has been trying to make cellular more like WiFi for small cell applications, and now LTE-LAA is trying to make WiFi more like cellular…

NTIA is studying how to release as much as 960MHz of spectrum for WiFi, starting with the 3.5GHz band, by more effective sharing with federal government users.

Germany’s 700MHz auction is next week, with a reserve price of €1.5bn and three bidders - Vodafone, DTAG, and Telefonica. It’s the first 700MHz auction in Europe and therefore, an important marker for the rest.

French operators have signed an agreement with the ministry of economic affairs, under which they agree to cover all the remaining notspots by 2020. This will take about €40m in additional investment - which doesn’t sound very much - and in exchange, the carriers will be relieved from the obligation to maintain public phone booths.

The minister has also come out saying that “it’s time for investments, not consolidation” and that he doesn’t believe in a tradeoff between competition and infrastructure development.

Orange has the go-ahead to buy Jazztel so long as it sells as many FTTH lines as Orange had before the merger and offers the acquirer of those assets wholesale access, both fixed and mobile.

Did you know the Facebook-backed Internet.org initiative doesn’t allow any kind of encryption? Now you do. It’s running into more and more trouble, as Vodafone India says no way, after Bharti Airtel dropped out.

Comcast and Level(3) have settled their peering row just before Title II kicks in. Google Fiber is auto-forwarding copyright threats, something Verizon (for example) refuses to do. Skype has been summonsed by a Belgian court to explain why it’s not a telco.

And happy 150th birthday, ITU!

Google has an IoT OS; so does Huawei; $1bn a year of connected car at AT&T

Google is developing a new operating system for Internet of Things devices - is there anyone who isn’t? - which will be branded Android, and will be designed to run on devices with as little as 64MB of RAM. At the moment it’s codenamed Brillo, but watch for an announcement at Google I/O.

Huawei, meanwhile, announced an SDN platform for the IoT that’s called Agile, thus successfully creating a buzzword mashup. It consists of a minimal OS for the devices (called Lite), an embedded router, and a controller appliance.

T-Mobile in the Czech Republic is trialling Sigfox radios on its existing base stations.

AT&T may get to a billion a year in M2M by signing up connected cars at the rate it did in Q1 (682k net adds).

Daimler-Benz will be cooperating with Qualcomm to develop connected car applications and wireless charging technology.

And Audi will be integrating Baidu’s in-car platform in vehicles going to China.

FirefoxOS moves upmarket; nope, Apple Watch; WalMart, an OpenStack company; bubble fear

Mozilla has changed its strategy for FirefoxOS. The original aim, to create a $25 smartphone, is being overtaken by Moore’s law, and as a result, they’re now going to aim for more exciting and compelling devices like the big KDDI FxO they showed at Mobile World Congress.

Here’s an Apple Watch review after a month’s continuous use. He’s giving it back.

Carl Ichan wanted Apple to hurry up and launch a TV. Apple leaked the letter and let him wait.

A good discussion of what the eight cores in an octo-core ARM are actually doing. Key take-home message: it’s not at all like a PC quad-core or whatever, because the “little” cores are there for energy saving, not performance. There’s an interesting follow-up here about whether Apple might adopt the ARM big.LITTLE architecture, or instead provide an API to let developers use the M8 sensor coprocessor as a low-power core.

Rebuilding YouTube; Google talks, a bit, about the InnerTube project to make YouTube viable on mobile.

Microsoft Edge developers explain how HTML5 Web Audio will work in the new browser.

Walmart runs all its stuff in an OpenStack private cloud, having moved in August 2014. IBM is offering a variety of OpenStack services. AWS prepares for the leap second on the 30th of June.

Facebook is worrying that Messenger adoption is slow, and hopes that games will boost it. WebRTC Hacks dissects Facebook Messenger and WhatsApp VoIP. Another terrible bug related to the 1990s crypto wars.

Adblockers spread.

And some people fear a Valley bubble.

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May 19, 2015

Key Questions for The Future of the Network, Part 2: Forthcoming Disruptions

We’ve just published a new research paper ‘Key Questions for The Future of the Network, Part 2: Forthcoming Disruptions’. 5G. SDN/NFV. Gigabit cable. WiFi. IoT. Spectrum policy. Vendor consolidation. Despite carefully-constructed business cases for future network investment, the goal-posts are always moving, and even the best-laid plans face possible disruptions - positive or negative. To kick off our ‘Future of the Network’ research stream, we outlined the key questions determining the business case for future investments in the network. This is Part 2, which covers critical network-technology disruptions, the impact of government and regulation, and the shifting vendor landscape.

The report is part of the Future of the Network research 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:

Main Picture.png

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May 18, 2015

Apple, Samsung, KDDI, Verizon, Google, Comcast, Iliad: Telco 2.0 News Review

[Ed: We’ve just published a new report ‘Key Questions for The Future of the Network, Part 2: Forthcoming Disruptions’, which looks at the key disruptive forces on the network.]

Samsung sales dive in China; Chinese MNOs cut 4G prices; KDDI is 57% WiFi

IDC has its reckoning of Q1 Chinese smartphone shipments out, and the message is pretty clear. Apple is No.1. Samsung’s shipments into China are down by 50% year-on-year. And the land-grab is over - the fraction of shipments made up by smartphones is approaching 100%, and growth is slowing down. For the first time ever, Q1 wasn’t a new record.

IDC China Shipments.png

Future growth will have to come the hard way, won from the competition rather than from new adoption. So we’ve got an answer to the question “Who’s going to win Chinese smartphones?” and it’s “Apple”.

It’s also bad news for Xiaomi - it looks like their chance to be no.1 in China and then look abroad has been and gone, and they’re mostly gaining share from ex-Samsung users rather than Apple ones.

Horace criticises the notion of saturation, pointing out both that IDC has called the top before and been wrong, and that there will still be considerable growth from featurephone-smartphone switchers for some time to come. However, more and more sales will be driven by brand loyalty and Apple has camped right on top of that.

Mind you, here’s someone who really didn’t like the watch.

Meanwhile, the Chinese government has been putting the arm on the MNOs to boost 4G adoption. Prime Minister Li Keqiang wants more people on wireless broadband as part of an agenda to rebalance the economy away from industrial exporting and to tilt its development away from the rich coasts. Clearly, you don’t say no to him; all three operators cut their 4G data prices by between 20 and 30 per cent.

Elsewhere in Asia, KDDI says it’s now offloading 57% of its mobile data traffic to WiFi and hopes to increase that to 65% by the end of the year. Softbank reported full-year revenues up 30%, mostly because it started consolidating Sprint in its accounts. That said, they also say Sprint’s net sales were up sharply. Here’s an NTT presentation giving some more detail about their B2B2X strategy.

It looks like Lebara and Lycamobile are going to be the first MVNOs to launch in India. Xavier Niel’s MyRepublic is offering a 1Gbps FTTH plan with no contract in Singapore, although as it turns out, it’s not the first similar product (200Mbps and 500Mbps have been done).

Verizon buys AOL; startling regulatory news; AT&T SBS; T-Mobile 4G coverage

Verizon has acquired AOL, for $4.4bn. This brings them a portfolio of content investments, some advertising businesses, and the startlingly large base of customers who still have an AOL account. For context, they make up over half AOL’s operating profits. Although the official statement about the deal is all about mobile first, video, and ads, Verizon would almost certainly do best to sell FiOS and 4G service to the AOL customer base.

Here’s an interesting regulatory story: Florida Power & Light says in a filing with the FCC that Verizon has stopped arguing with it about access to its poles and ducts, because it expects to be an all-wireless operator within 10 years! The document is here.

Meanwhile, SMBs in the FiOS footprint can now pick and choose which cable TV channels they want in their bundle, as VZ responds to the cable operators’ push on small businesses.

Sprint and VZW will have to pay $158m in fines for letting dodgy premium SMS companies run up their customers’ bills.

AT&T’s CFO, John Stephens, says their strategic services are beginning to outrun their losses in legacy business products like T-carrier and frame relay. However, there’s an initial hit to margins from CAPEX and greater competition, which they hope to recoup from operational savings as the legacy networks are shut down. This story gives us an idea of how far away that might be - we’re now at 5% of AT&T’s fixed assets converted to SDN against a target of 75% by 2020.

See our in-depth coverage here.

T-Mobile’s Neville Ray says they now have 280 million POPs with LTE, more than Sprint and “only” 20 million behind the dynamic duo.

Details of the Canadian 2.5GHz auction are now available.

Unknown MNOs “blocking Google ads”; refresh of Google AdWords; NFC - so last century; Kevin Martin, Facebook lobbyist

Unspecified European MNOs are threatening to block advertising, says the Financial Times quoting an Israeli company that makes deep-packet inspection gear, Shine Networks. This would, of course, be hugely provocative from a regulatory point of view. The BBC’s Rory Cellan-Jones talks to an operator:

When I contact one major operator to ask about the idea of installing Shine’s software an executive tells me it would be “utterly insane.” He says that at a time when the industry is treading carefully over net neutrality and other regulatory issues, acting to control traffic in this way would be “beyond suicidal.”

The precedent is probably that time Free.fr pointed their DNS records for Google Ads domains into a black hole. Back then, their transit provider Cogent was involved in a peering dispute with YouTube, and the idea was to do something to provoke Google. Eventually, Google paid France Telecom for transit, and much later, Free accepted Google Global Cache CDN servers.

Speaking of Google ads, they are beginning to respond to the challenge from Facebook, deploying a range of new ad formats for autos, hotels, and financial products, new media-buying tools, and new analytics features. This is the biggest refresh for Google advertising in quite some time.

Amazon’s VP of payments, Patrick Gauthier, says anyone working on NFC is working on last century’s problem, and the real opportunities in the sector are about what happens before the moment of payment.

Oddly enough, we said something like that in this briefing, this strategy report, and this brand new authentication briefing.

Facebook has a new option for news organisations, a format for interactive articles that are hosted by Facebook and open instantly from the newsfeed. Meanwhile, they’ve recruited the former FCC chairman Kevin J. Martin as their chief lobbyist.

The European Commission is asking for information about Qualcomm and its competitors’ chip licensing practices as it prepares its anti-trust dossier.

The German car makers are looking for more investors to back their bid for Nokia HERE, perhaps from private equity. They’re apparently willing to put up $700m each, but that won’t be enough seeing as Uber’s backers are already in for $3bn.

Skype is opening up access to the preview of its translator some more, while it’s also signed up AT&T as a global partner for Skype for Business conferencing.

Telefonica is putting $200m into a digital VC unit. Wait a moment - didn’t they do that before? Here’s an interesting study of Chinese mobile UX design. How to create a “unicorn” from scratch and end up with $0.

And RIP, Venkat Panchapakesan, head of YouTube engineering.

OFCOM: BT dark fibre on the table; Eurotelco Q1s; exit Baksaas; Iliad Q1s

OFCOM puts its cards on the table - if BT is going to merge with EE, and the Hutchison-O2 deal further cuts up the backhaul ecosystem, BT will have to start providing dark fibre as a regulated wholesale product, throughout the UK except central London and KCOM’s fief in Hull. The consultation runs until July, with a final decision in early 2016 and implementation before April 2017.

The incumbent operator is, of course, not happy about that, not least because one of OFCOM’s arguments is that it takes Openreach so long to deliver leased lines someone else should have a go.

Think Broadband wonders if the increased availability of dark fibre might harm the independent deployers like CityFibre. CityFibre welcomes the proposal, but has some caveats about the pricing:

While CityFibre welcomes Ofcom’s decision as a clear validation of our business model, we urge it in the strongest possible terms to ensure that any future approach to pricing in no way distorts the market or discourages investment by independent infrastructure builders.

To put it another way, they’re worried that BT would comply, and slash its prices to drive the independents out. Meanwhile, ThinkBroadband has a chat with the Openreach CEO, and the Institute of Directors thinks the government should spend more on broadband.

TalkTalk reported its 2015 results, with revenue up 3.9% and EBITDA up 15%, but the interesting bit was about their FTTH plans. 1,200 homes have been passed so far by the build in York, which isn’t much, but it has validated their estimate that the cost to pass would be under £500/home.

And Tesco Mobile is up for sale, while ultra-low cost MVNO FreedomPop is launching in the UK.

Telefonica CEO Cesar Alierta says their Q1 is the start of a new growth cycle. Net income was up 162%, but €1.3bn of the €1.8bn boost was a tax gain on the sale of O2 and some of the rest was a lucky foreign exchange movement. After all, western European smartphone sales were rather poor, with a sharp drop in average selling prices, and the impact was concentrated in France and Spain.

That said, there are some reasons to be positive about the European wireless market. Last week we noted that Telecom Italia was seeing out-of-bundle data revenue again. Deutsche Telekom Q1s show, as well as the revival of T-Mobile USA, service revenue growth of 2.8% in Germany and a strong performance in Austria and Hungary.

Vimpelcom, however, was quite a bit more gloomy. They confirmed that the Italian OpCo, Wind, is going to merge with 3 Italia in an EE-like joint venture.

Telenor has named Sigve Brekke, the head of their operations in Asia, to replace Jon Fredrik Baksaas as CEO. Baksaas, who they described as a “giant CEO”, is retiring, as well as being the GSMA chairman until the end of 2016.

Free.fr has Q1s and they’re still crushing it. Group revenue was up 7%, with mobile up 18.5% to €438m, and there were another 420k net adds in the quarter, taking them to 10.5m mobile subscribers and a market share of 15%, as the operator added another 950 4G base stations. Fixed wasn’t as exciting, with revenue up 0.3%.

After the Turkish president suggested just forgetting 4G and going straight to 5G, the auction has been put off for three months.

3-D mapping, Sprint, Crown Castle, and small cells; Comcast joins OpenDaylight; drones with apps

Nokia’s Chris Stark thinks small cells are the “key to the future mega-city”, but also points out that some forecasts suggested we’d already have deployed 750,000 of the little chaps by now and the real out-turn is more like 8,000. The main problems: “site acquisition, jurisdictional approval, coordination with building owners, backhaul access and electrical hookups.” Nokia is trying to address these with new deployment tools based on its 3-D mapping products. Obviously time to sell the mapping division, then?

Sprint, for its part, is taking advice from Softbank, an early adopter of small cells, and concentrate its next effort to finally fix the network on the technology. RCRWireless’s sources think they may deploy as many as 20,000 of them. In Japan, Softbank has both as many as 150 small cells per square kilometre in the urban core, and several thousand village small cells installed on local post offices.

Crown Castle is selling its Australian towers in order to reinvest in small cells and distributed antenna systems. Cambridge Broadband Networks is trying to sell its 28GHz point-to-multipoint backhaul to US carriers for their small cells.

Comcast is joining OpenDaylight, the Linux Foundation’s SDN standard, the first network operator to do so. First up, they want to virtualise their set-top boxes.

Gartner says don’t build an OpenStack private cloud unless you know just what you’re doing.

Three of the most common hypervisors share a serious bug that permits an attacker with a VM to break out of the virtualisation and attack both other VMs and the host system itself. The bug is in a floppy disk controller nobody’s looked at for years. Xen (i.e. Amazon), KVM, and QEMU are affected.

Samsung has a new line of Internet of Things devices, ranging from a Bluetooth Low Energy beacon to an octo-core processing module, basically a smartphone with the shiny scraped off.

And what’s better than a drone? A drone running Ubuntu Core, that comes with an app store.

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May 12, 2015

Authentication Mechanisms: The Digital Arms Race

We’ve just published a new research paper ‘Authentication Mechanisms: The Digital Arms Race’. The report argues that companies which provide quick and robust authentication mechanisms will be in a strategically important position in the digital economy, and this is sparking an arms race among the major Internet ecosystems - Apple, Google, Facebook and Amazon. This race is intensifying further as biometrics and wearables promise to make two-factor authentication easier and more cost-effective. What are the strategies of the internet players, and where do they need help?

The report is part of the Dealing with Disruption research 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:

Authentication Thumbnail.png

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May 11, 2015

Chinese shipments; 5G; Q1s; Cisco x Tropo. Telco 2.0 News Review

[Ed: We’ve just published a new report on Authentication Mechanisms: The Digital Arms Race, which looks out how the Internet players are using authentication to secure a key control point in the digital economy.]

Chinese smartphone slowdown in Q1; Nigerian, SA penetration = US; Apple forecasts; ALU Q1

For the first time in six years, there’s been a slowdown in Chinese smartphone shipments, if IDC’s data is good. Q1 shipments were 98.8m, down 4.3% year-on-year. Meanwhile, Apple commands 14.7% of the market, ahead of Xiaomi on 13.7% and Huawei on 11.4%.

IDC argues that the market is approaching saturation - hence the swing by manufacturers like Xiaomi to exports into India and Africa. But it won’t be that easy.

Nigeria and South Africa have reached 89% mobile penetration, similar to the US once multiple SIM users are stripped out.

Back with Apple, Horace reviews the Apple CAPEX budget and updates his shipments forecast. It’s going to be a difficult summer for their competitors.


Kantar also has smartphone market share numbers out, and they show Apple gaining share in most places. They’re at 26% in China, up from 17% the year before. (Note that this is installed base rather than shipments.) Interestingly, the biggest source of sales leads for Apple in China was word-of-mouth recommendation.

Here’s a review of the LG G4, which is acceptable but not great. Unfortunately for them, Apple has permanently set the bar at “great”.

On the infrastructure side of things, Alcatel-Lucent has results out, and they’re better than expected. “Better” in that ALU is losing less money than it was, €72m vs. €73m. That’s perhaps a little too snarky; revenue was up 9 per cent and gross margins were 34.6% vs. 32% a year ago. Also, although everyone is worrying about North American wireless CAPEX, the access networks division swung from an operating loss of €37m a year ago to an operating profit of €67m, while revenue was pretty strong across the whole business from core networks to optical to IP routers.

Here’s a rundown of what ALU is doing for Oi in Brazil; essentially they’re consolidating the backhaul networks for their DSL, IPTV, mobile, and switched Ethernet onto a single IP network using the 7750 router (something of a big seller, we hear).

Small-cell specialist SpiderCloud’s CEO Mike Gallagher is interviewed over at MWL, and tells us to expect announcements about virtualisation.

And Cisco is lining up the next wave of cable disruption, with its cBR-8 Converged Cable Access Platform, supporting 10Gbps links and carrier Wi-Fi. Don’t have nightmares.

5G must “get off the core network”; ITU starts 5G fixed group; 802.11ac Wave 2 is here

Huawei’s Ryan Ding says that 5G will have to “get off the core network” in order to achieve the latency targets, and that distributed designs are “very new for us”. He also says, however, that we still don’t really know what 5G is, and the super-low latency targets are driven by one specific car manufacturer.

The ITU is setting up a new standards group within IMT-2020 to look into the networking aspects of 5G. This one will sit within the ITU-T wireline standards sector, rather than the ITU-R radio sector, to reflect its focus on the backhaul and interoperability side of things.

The group will have to get its skates on - the study is meant to feed into a meeting of ITU-T Study Group 13 in December. Interestingly, Study Group 13 covers:

future networks, cloud computing, and network aspects of mobile communications

which does make us think about all those Mobile Edge Computing concepts that are floating around.

Cambridge Wireless is organising a conference on the 8th of July about the state of research into full-duplex radio, a key technology enabler for 5G. Ironically for ‘Cambridge’ Wireless, the event is happening at Bristol University. Details are here.

While 5G is being discussed, many of its features are rolling out in WiFi. Here’s a good piece on why 802.11ac Wave 2 is important - specifically, multi-user MIMO makes it relevant to devices that don’t have multiple antennas.


To make that a bit more concrete, here’s the Linksys EA8500 WLAN router, which they claim is the fastest ever with a total throughput of 2.53Gbps (split between users and between 2.4GHz and 5GHz). Yours for $279.99.

LG U+ speed boost; O3 financing; BT, Telenor, TI, Sprint, US Cellular, Safaricom Q1s

LG U+ claims it’s demonstrated 600Mbps downlink with LTE-U. They plan to push this up to 750Mbps by the simple expedient of pulling in more 5.8GHz spectrum, an 80MHz channel rather than the 20MHz they were using.

Hutchison has got clearance from the shareholders (perhaps not the hardest job there) for its acquisition of O2 UK, and it’s also revealed how it plans to finance the deal. 33% of the combined “O3” is going to be sold to a pack of institutional investors, including Brazilian and Canadian pension funds and the Abu Dhabi and Singaporean sovereign-wealth funds, raising £2.8bn up front with another £330m to come if O3 hits KPIs. Along with the £6bn their bankers have already signed for, that’s very close to being enough to close the deal, as £1bn of the £10.25bn agreed price is dependent on a cash-flow target.

In the UK, BT’s earnings in Q1 are up 12% year-on-year, after a powerful performance from the Retail business. 266k net-adds on FTTC, 50k on consumer mobile, and a reduction in OPEX add up to a major improvement in margins, enough to soak up declining revenue in Openreach, Wholesale, and Global Services. ISP customers kicked in another 211k net-adds via Openreach.

Meanwhile, all-FTTH ISP Gigaclear has closed on £30m of funding.

Telenor Q1s are out, and the company reported a record high in revenue, which was up 19%, and profits up 10.3%. This seems to have come from a strong showing in Norway with mobile ARPU up 9%, lucky foreign-exchange effects, and a stellar quarter on the new network in Burma, where they had three million net adds.

There’s more detail on that story here. Three years ago there were 1 million SIMs in service there; now there are 18 million. Telenor is adding 200 Node Bs a month. And there are still 33 million people to go…

Telecom Italia’s Q1 showed revenue off 2.6% in Italy and 2.8% in Brazil. The first is something of an improvement from last year, when it fell 8.3%, or the year before when it was in double figures. The second makes you wonder what all the Brazilian M&A fuss was about. CEO Marco Patuano says their 4G users are increasingly breaking the bundle limit and incurring overage, which is apparently a good thing - until they notice.

Sprint’s Q4 is out. The carrier clung on to third place ahead of T-Mobile, largely because it scored 1.2m net-adds, of which 546k were pre-paid. Revenue was down 7% and EBITDA down 5%, so there’s no mystery how they got those net-adds - the price war goes on. The owners, Softbank, declined to give a forecast for their own numbers.

US Cellular, the biggest surviving regional, reported that its churn has dropped dramatically, from 2.3% to 1.5% on postpaid, while it swung from an 80k net-loss to a 21k net-add. With ARPU still very high at $52.29/mo, or $58/mo when inbound roaming is included, it’s no surprise that net income for Q1 was almost ten times what it was a year ago.

Verizon Wireless, meanwhile, has a deal to preload taxi app Lyft on new Androids.

Lumos reckons it will get rid of all its remaining TDM backhaul customers and move them to fibre-to-the-cell by 2016. EarthLink is selling a lot of dark fibre but not much else. T-Mobile plans to turn off the last MetroPCS CDMA2000 networks in late June.

Yet more US gigabit FTTH rollouts. Windstream, meanwhile, has pushed out VDSL2 to 200,000 homes, using its Connect America grants to extend the backhaul fibre. However, they’re seeing substantial price erosion as their mobile operator customers swap out T-carriers for gigabit Ethernet.

Safaricom saw a 13% rise in full-year revenue, with net income up 38.4%. Mobile data revenue was up 60%, and they now have over 13 million active M-PESA accounts. Vodacom Tanzania is going to spend $100m next year expanding its 4G network into the countryside, aiming for a 25% increase in the M-PESA customer base. Here’s one of their base station, solar charging, and retail shop shipping containers.


Telstra has been building a new Sydney-Perth route, designed to add only 40ms of latency. And Inmarsat’s GlobalXpress broadband satellite service has gone live early to help out in the Nepalese earthquake.

Cisco jumps into the Voice 2.0 pool, buying Tropo

Cisco has acquired Tropo, the pioneering provider of Voice 2.0 APIs, rolling the company into its Collaboration Technology Group.

Tsahi Levent-Levi points out that Tropo brings with it either the biggest or the second biggest (after Twilio) comms-API developer community, and more of an enterprise focus than Twilio. Also, Tropo has a number of substantial partner deployments with major telcos, notably DTAG, which suits Cisco fine. Cisco, meanwhile, knows a lot about enterprise hardware, videoconferencing (somewhere Tropo is weak), and of course, networking.

Here’s an explainer of Tropo’s slightly convoluted history. NoJitter points out that Cisco historically hasn’t had much to say to applications developers, as opposed to network engineers.

Alcatel-Lucent, meanwhile, announces Rapport, a communications API/SDK that builds on a “fully re-architected” version of their IMS.

DTAG will be rolling out VoLTE later this year. Vodafone.de, which went earlier with the technology, is running it in a VMWare vCloud.

Cablevision wants to sign up international WiFi partners for its Freewheel VoWiFi service, as its customers are asking why they can’t use it to dodge international roaming.

Google Voice users who sign up for Project Fi will lose Google Voice for ever.

3HK’s extending its partnership with Whatsapp to include voice.

Lobbies to FCC: No Title II. FCC to Lobbies: No Dice. Digital Single Market policy is out

A wave of filings have come into the FCC demanding an end to Title II reclassification. The FCC unsurprisingly threw them out, leaving the various industry lobbies that filed them to go to court.

Meanwhile, the FCC Office of Engineering & Technology called for interested parties to make their representations about LTE-LAA. We mentioned LG U+ showing off very high speeds using big 5.8GHz channels next to their LTE spectrum. Everyone expects someone - probably T-Mobile - to use the technology to jump ahead in the speed wars, but the big fear is that they pollute the public WiFi spectrum.

Netflix and AT&T have sent in rival filings to the FCC over the AT&T-DirecTV deal. Netflix argues that AT&T would become the biggest multichannel video distributor, and might be the biggest ISP if its promised upgrades happened, and although they don’t consider this an anti-trust issue now, it could get that way.

AT&T rather cattily counters, quoting a Netflix exec who said their broadband upgrades would be good for the company and the Comcast-TWC deal was more of a concern, and pointing out that they have settled their interconnection dispute.

The EU Commission, meanwhile, has published its Digital Single Market policy, which will apparently get rid of “barriers to cross-border trade” by carrying out a review of “online platforms”. Spectrum harmonisation is in, as is “something” about OTTs.

Orange is looking for a buyer for the FTTH networks it has to sell in order to get regulatory clearance for its acquisition of Jazztel. 720,000 lines are up for grabs.

Microsoft Salesforce; 1 billion Win10 machines; new Google ads; the maps bidding war

Does Microsoft want to buy Salesforce? You can see the logic, but the story was soon rapid-rebutted out of existence. Elsewhere, Redmond has set a new target: 1 billion Windows 10 devices, not a penny more, not a penny less.

As ZDNet points out, achieving this will require a really massive effort to drive upgrades among consumer PCs and the kind of enterprise fleets that still run WinXP and Internet Explorer 6. MS will probably end up giving away a lot of software.

In 10 countries, notably the US and Japan, Google is now getting more searches from devices classified as “mobile” than it gets from desktop PCs. Some other sources, like Comscore, disagree, but a lot of this will be quibbling over the definition of “mobile” (if an iPad Air is mobile, why isn’t a MacBook Air? And is a Chromebook really a “desktop” in any way?).

Obviously this is really bad news for Google, as they struggle to sell ads on mobile. So it’s interesting to see that the AdWords project team has a rundown of new ad types you can now book.

A really strange bidding war is developing around HERE, the Nokia Maps business they acquired way back when from Navteq. Uber, the taxi app, has apparently submitted a bid of $3bn, or more meaningfully its VC funders have signed up for that amount of money. But look what’s coming over the horizon: the entire German automotive industry.

Meanwhile, Facebook has signed up as a customer, using Nokia’s mapping in its mobile app, Instagram, and Messenger.

And OpenStreetMap volunteers fan out, mapping the ruins of earthquake-stricken Kathmandu.

HP’s NFV kit; ARM gets into NFV; HANA for Things; moving back to the cloud

HP is offering telcos a complete “NFV platform”, including a bundle of hardware and software and their Helion fork of OpenStack.

ARM has launched a reference design for OpenNFV network devices. They also demonstrated a virtualised set-top box.

SAP has an extension to its HANA cloud product for the Internet of Things.

Amazon Web Services’ James Hamilton blogs on the news that Zynga, one of the earliest big AWS customers to leave the platform and move into its own data centres, has changed its mind and moved back.

Oracle has hired the whole engineering team from Nebula, the startup launched by the original OpenStack core team to provide private cloud solutions, which has sadly gone bust.

How Facebook backs up photos.

TJ Fontaine quits Node.js.

Next Android focuses on privacy; Facebook tones down politics; Germany breaks off cooperation with NSA; pirate mobile network in Kashmir

Android M, the next version, is coming and it may permit users to allow or refuse apps access to individual capabilities, rather than just take it or leave it. A preview of the software is expected for Google I/O later this month. There’s a little more here, plus the point that Apple deployed this three years ago.

Facebook’s news feed tries to tone down political differences to keep your friends friends. You may not want this.

As well as a US court striking out the legal basis of Section 215 CDR trawls, Germany has broken off intelligence sharing with the NSA.

A team of Israeli SIGINT experts were providing “training” to the Thai police when the Thai army showed up. It wasn’t pleased and insisted on examining all the equipment.

And rebels have been installing their own equipment on Indian cellular towers.

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May 7, 2015

How AT&T overtook Verizon in strategic business services

We’ve just published a new research paper ‘How AT&T overtook Verizon in strategic business services’. In Q4 2012 Verizon was No.1 in Strategic Business Services (SBS) and had just bought a huge data centre provider. In Q4 2014, AT&T had overtaken Verizon in revenues from this segment. What happened, and what are the lessons for other telcos in the Enterprise SBS market?

The report is part of the Executive Briefing Service and Cloud and Enterprise ICT research streams, 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:


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May 5, 2015

Skype, India, US Fibre, Nokia, Apple: Telco 2.0 News Review

[Ed: We’ve just published a new report on How AT&T overtook Verizon in strategic business services analysing the success factors behind, and lessons to be learned from, AT&T’s approach in the enterprise market.]

New Skype at the heart of Microsoft’s strategy; AT&T execs on voice; Twitter Q1s

Microsoft is up to some interesting stuff. A new test build of Office 2016 was just released. Windows 10 is coming in summer for x86 PCs, and then deploying to other platforms in a rolling, agile release schedule. Visual Studio is getting a variety of major enhancements in the current release-candidate, notably a tool to benchmark network requests across platforms. Project Astoria is meant to let Android and iOS apps run on Win10. Even Windows Update has been getting some investment.

But the really interesting bit is Skype for Business, which has gone through a major update.

This includes a completely new client application, and adds a lot of features. Conference calls can now be set up specifying a file - for example, slideware or video - that launches on login for everyone on the call. Collaborative editing on a document can be launched from inside a conference call. And your call can be broadcast to up to 10,000 users on the web, out of a CDN in Microsoft Azure, with some interesting features like sentiment tracking.

They’ve also released a new version of Skype for Business Server, for organisations that want to host Skype themselves, integrated the Skype Directory into Office 365’s contacts search, integrated the Skype Server with SQL Server, demonstrated interoperability with Tandberg and Cisco conferencing hardware, and launched a new web-based SDK for developers. Also, Skype for Business is going to take over from Lync within Office 365, although users can select whether they want the Lync or Skype UI.

That’s a lot of investment in a Voice 2.0 product, which suddenly looks like it’s becoming central to Microsoft’s enterprise strategy. It’s also one of the potential futures for voice, centred around rich collaboration features and high-definition media. And it’s about time we saw some of that, as Dean Bubley points out. Just because we’ve seen peak telephony doesn’t mean the end of voice.

HD conferencing app Wire has launched its web client. Up until now it’s been an iOS/OS X/Android proposition, but this of course means it can address the Windows ecosystem and indeed pretty much anything else that gets invented. Dan York notes that it has a top score on metrics of SSL implementation quality.

AT&T is giving its U-Verse carrier VoIP some much needed attention. Caller-ID has been integrated into the U-Verse STB, so the caller’s number pops up on the TV. Voicemail is now integrated with their wireless visual voicemail app, which has gained a transcription capability. There is some talk of WebRTC and HD voice, but nothing specific. A major reason to keep landline voice seems to be dialling into conference calls at work.

Android and Chromium’s strong support for WebRTC, meanwhile, is getting it into some interesting places, like an e-mail client and a service kiosk solution.

Twitter, meanwhile, missed its Q1 revenue targets and saw its net loss increase substantially. Everyone still loves it, which is part of the problem - MAUs, DAUs, and traffic keep rising, but without monetisation those are just more costs. Ironically, they tried to manage the bad news by waiting for the market to close before filing, but somebody blurted out the truth…on Twitter, and the shares fell 20 per cent.

Here’s a negative review of enterprise messaging app Jive. Why SIP sucks, and what to do about it.

Indian startups; the mobile/solar growth flywheel; cheap phones are over in China; Ericsson’s “frontrunners”

There’s been a surge of investment into Indian startups, driven by the explosive adoption of cheap smartphones. It’s mostly media or e-commerce, although the investors tend to be classic tech VC names. And it sounds bubbly as hell.

Another take on this is here, in a piece from Steven Sinofsky of Andreesen-Horowitz. He argues that an important synergy between mobile and solar power has emerged, driving very rapid growth in both technologies. Solar makes it possible to charge devices and to power infrastructure; mobile creates a demand for it, and also facilitates payments and credit. Once solar panels are in place, other electricals and electronics show up, demanding bandwidth that the mobile operators can provide.

In China, the era of the ultra-low cost phones is over and everyone wants to trade up to something with an Apple logo. As a result, vendors like Xiaomi have to either move upmarket, or else concentrate on export, where they will meet the growing Indian vendor industry and the low-end of Samsung’s portfolio.

This quarter’s scoreboard, meanwhile, is here.

Ericsson has discovered that a small subset of mobile operators are growing much faster than others. They are usually network-focused and are usually the third or fourth operator in their market. It sounds a lot like this Telco 2.0 Executive Briefing.

Did you know the touchscreen was invented in Malvern in 1965?

Three fibre deployments choo-choo to Chattanooga; US FTTH rollouts pick up speed

FTTH deployment in the US has flipped into an investment cycle, driven by the cableco upgrades. Chattanooga is now the focus of three deployments, as Comcast and AT&T have abandoned lobbying against its municipal fibre network in favour of competing with it. The muni-net provides 1Gbps for $70/mo, which will be hard to beat. Comcast is promising 2Gbps to 300,000 homes.

AT&T, meanwhile, is is rolling out to Atlanta and the Research Triangle. We covered Comcast’s 2Gbps build in Atlanta earlier. The Triangle is now the target for AT&T’s GigaPower, plus Frontier Communications, and also Google Fiber.

With the pressure well and truly on, there’s a rush to get property investors interested in putting in the in-building infrastructure and signing up for dark fibre. Here’s some detail on how that works for AT&T’s fibre-to-the-business program.

AT&T is also pulling fibre to Cupertino and Mountain View, but the premium pricing is only likely to last until Google Fiber covers its own home town.

Close, but no cigar: T-Mo still 4th; TWC-Mobile? Vodafone-Liberty superdeal?

T-Mobile USA has had another monster net-adds quarter, but it’s still not quite beaten Sprint out of third place in the US. 1.8m net-adds in Q1 put them on 56.8m customers, compared to 57.1m for Sprint. Those included 991k postpaid phones and 134k dongles. Service revenue was up 9% year-on-year, although ARPU was down again, 5.5% year-on-year at $46.43, and even ABPU including gadget instalments was down, 1.4% at $60.8. The carrier made a small loss, not least because it’s still spending about a billion a quarter on CAPEX.

A major issue regarding T-Mobile is the huge pile of receivables from its customers that has built up thanks to its quick-upgrade plans. At the moment, the pile stands at $3.3bn. It’s no surprise, therefore, that their CFO is looking at selling on these debts in order to raise cash. The problem is that about half the customers who took one of those plans have less-than-prime credit. T-Mobile is trying to address this by extending the same pricing they offer prime creditors to everyone who pays their bill on time, hoping that this will give them a strong reason to pay up. (On a similar theme, VZW will give you more data if you sign up to automatically top up your prepaid account.)

More broadly, analyst Craig Moffatt points out that the price war has pushed down prices almost exactly enough to wipe out revenue growth from higher usage. He also argues that VZW and T-Mobile are the strongest carriers financially.

At least, until T-Mobile buys a cableco. Charter and TWC are apparently considering getting back together, now Comcast has been banned from bidding, but John Legere’s Q1 call gave the impression he might consider jumping in. As our Free-T-Mobile Executive Briefing pointed out, a deal with cable would open up a lot of possibilities for T-Mo, but you bet it would be expensive.

Verizon, meanwhile, is breaking up its FiOS TV bundles. Harold Feld has a very detailed post on the economics of cable and TV bundling and the likely regulatory consequences.

Elsewhere, there’s going to be an investigation into how DISH got a $3bn gimme during the last spectrum auction by claiming it was a small business. Verizon is beginning to deploy SDN technology in its fixed network, while Level(3) is planning to deploy the Constellation SDN platform it acquired with TW Telecom to the rest of its footprint.

Here’s some speculation for you: Vodafone could sell its African, Middle Eastern, and Asia-Pacific networks and use the money to buy Liberty Global. Or will they buy spectrum in Brazil, where they have a M2M-focused MVNO?

Ooredoo saw a massive drop in its profits in Iraq. As you might expect, this was partly down to “security issues”, but “increased competition” was also mentioned as a problem.

Xavier Niel-backed MyRepublic hasn’t been given a licence yet, but it is allowed to run a trial network. In a typically Niel-esque move, it’s handing out free SIM cards and inviting the public to try it out and put pressure on the authorities. NTT DoCoMo offered the public discounts, and they took them up, the cheeky devils.

BT is about to put its case for the EE acquisition to the regulators. And as an indirect result of the deal, the Weve payments joint venture is being broken up. O2 UK will run its part of the JV on independently.

Nokia: Q1s, ALU deal, 5G. New Cisco CEO. DAS is the future. And also dead.

Nokia Networks Q1s are out, and profits were down very sharply, off 61%, although revenues were up 15% year-on-year. The key mobile broadband division made a €3m loss. In general, it looks like Nokia and Ericsson had very similar quarters, with not enough capacity upgrades and software projects but too much coverage expansion work, and a slowdown in North American CAPEX as AT&T and VZW’s 4G build cycle finishes.

Rajeev Suri told investors that “history does not have to repeat itself”, meaning that the Nokia-Alcatel deal doesn’t necessarily have to be as difficult and fractious as, say, the Alcatel-Lucent one was. As with all mega-mergers, though, that’s the way to bet.

Here’s an interesting Nokia whitepaper on 5G. Note that they think LTE-A is good until 2020, but it will need at least one GHz of aggregated spectrum to get there.

Nokia’s country manager for Nigeria says cheaper devices are needed to make 4G deployment worthwhile there and takes the opportunity to have a swing at WiMAX.

After 20 years at the top of Cisco, John Chambers is stepping back, in favour of Chuck Robbins, also a Cisco lifer, who was in charge of global sales until recently.

SpiderCloud says distributed antenna systems are dead but Axell Wireless says they’re the future. Alan Tantillo, T-Mobile USA’s director of siting, says small cells cost between a quarter and a tenth what equivalent DAS does. He also says a lot of interesting stuff about the intersection of real estate and wireless infrastructure.

Level(3)’s SDN can be controlled from an API inside Microsoft Azure.

Optus Satellite is a customer for Laser Light Global, an optical satellite network.

And Joseph W. Lechleider, a Bellcore/Telcordia engineer who invented the asymmetry in ADSL, has died, aged 82.

Apple hiring BBC R1 producers; Google’s £107m for newspapers; Internet.org opens the platform; open-source containers

What is Apple planning in music? Whatever it is, they’re willing to spend top dollar. Apple keeps hiring BBC Radio 1’s best producers but no-one knows what they’re up to. The product, whatever it turns out to be, is going to launch on the 8th of June.

Google, meanwhile, is making nice with European newspapers, spending £107m supporting a group of them in their efforts to innovate. They’ve also added another 70 partners to Google Now.

On a similar theme, Amazon Echo now supports the popular IfThisThenThat graphical programming kit, so it can work with all sorts of other services. Pinterest has a new API.

Mozilla has shown off a reference UI design for TVs running FirefoxOS.

After heavy criticism over net neutrality, Facebook’s Internet.org has taken a new tack. Now, rather than wait for Facebook to take an interest, you can submit an ultra-cut-down version of your website to the platform for inclusion.

Rocket Internet lost money in Q1.

CoreOS has made the format for its containers open source.

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May 1, 2015

Amazon Web Services: Colossal, but Invincible?

We’ve just published a new research paper ‘Amazon Web Services: Colossal, but Invincible?’. Amazon has just revealed that its cloud services arm is growing very fast and is surprisingly profitable. An analysis of the strategy that underpins the exceptional performance of Amazon Web Services provides important pointers about the future of the cloud computing market, how to balance the trade-off between convenience and cost, and where there may be scope for others (such as telcos) to succeed.

The report is part of the Dealing with Disruption and Cloud and Enterprise ICT research streams, and you can read an excerpt of the report here.

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

Extract chart from the report:


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

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