Sustainability and digital inclusion featured prominently as operators renewed their calls for regulatory reform in light of significant headwinds
Harnessing the potential of green digital solutions
The second day began with a session on the EU-backed European Green Digital Coalition (EGDC) and progress with the pilot carbon reduction solutions it has championed. There was no getting away from the fair share debate, however, with Allison Kirkby (CEO, Telia – an original member of the EGDC) stating that “well-invested” networks are a must to achieve Europe’s twin digital and green transitions. With these two journeys outlined within the EU’s Digital Rights and Principles, Pearse O'Donohue (Future Networks Director, DG Connect) said that the EC’s recent consultation on the financing of the telecoms sector is forward-looking on purpose and seeks to understand what needs to be done to enable a sustainable future.
For Telia, moving away from copper and 3G is helping to cut energy consumption, although it believes regulators should be more supportive of legacy network switch-offs. Kirkby also considers that consolidation and more network sharing would have a positive environmental impact as operators would not be building out “excess sites”. Erik Ekudden (CTO, Ericsson) agreed, stating that reducing energy usage is about replacing old technology, rather than adding more, and that 5G is often undervalued as an agent of change. He considers that there cannot be a green transition without technology, adding that digital solutions have the potential to reduce global carbon emissions by 15% by 2030.
Is it time for co-creation?
Hyeonmo Ku (President & CEO, KT) claimed that traditional telecoms business models are no longer working. Service revenue has fallen while infrastructure investment and data traffic have increased. As such, KT decided to cooperate with Singtel after finding agreement with the adage “if you want to go fast, go alone. If you want to go far, go together.” We heard how they’ve since co-created digital products to drive 5G adoption and transition themselves to techcos. Singtel also provided an overview of its recent strategic reset, which saw it unlock new capital through the sale of infrastructure assets.
Moving things back to Europe, Pietro Labriola (CEO, TIM) used his session to further beat the consolidation drum. The scene of a perfect storm was set where the worsening economic environment means telcos are facing inflationary pressures for the first time in 20 years, and low interest rates and cheap money are much harder to come by. Pressures on the cost base aren’t able to be fully passed on to European consumers for whom prices have fallen 16% year-on-year (32% in Italy), as they have enjoyed a more than two-fold rise in data consumption.
He caveated his remarks by acknowledging it’s “exactly the speech of the telco player of the last 10 years”, but that regulation too had not moved on and was still the same model where you have an incumbent and a newcomer. His message was clear: inaction is not an option, and we cannot stay like this. To fix the situation, five things were called for: more fitting regulation, in-market consolidation (Italy is still a five-player mobile market), the switch-off of legacy technologies (including payphones), fair share (which he was keen to stress was not an internet traffic tax), and finally a more level playing field with hyperscalers in privacy and network security.
Is a 5G Future for Everyone?
Anil Darji (Chief Network Architect, Three UK) and Sarah Mills (Chief Revenue Officer, Neos Networks) discussed their collaborative effort to expand the reach of 5G infrastructure across the UK. While the firms consider that 5G will eventually become nationwide, the shade of 5G delivered will inevitably vary across the country, with operators providing different speeds and use cases depending on the local area or region. Three stressed the challenges still to overcome, namely that private investment is not sustainable – as evidenced by the existence of the Shared Rural Network (SRN). Even in urban areas, where all operators are deploying, sites still need further densification – a further investment cycle at a time when customers are asking for more and spending less.
With Three indicating that getting fibre to mast sites in SRN areas is still unviable, operators are considering the capabilities satellite could offer them to bridge the gap. Lynk, which has now launched three commercial satellites, was bullish about the role satellite will play in connecting everyone to 5G while helping mobile operators to shut down legacy networks quicker, freeing up valuable spectrum. Australia’s NBN Co made the point that while access to affordable broadband is important, consumers also need the digital skills to empower them to use online services.
Will Connectivity Ever be a Human Right?
When connectivity became the default delivery channel for a range of services during the coronavirus pandemic, the panel was in broad agreement that connectivity should be considered a human right and that it is fundamental to a modern, inclusive society. Mauricio Ramos (CEO, Millicom) highlighted how his company is helping to build the ‘digital highways’ that spur economic growth. However, in order to deploy infrastructure and connect an even greater number of people, Millicom needs to raise money while making sure services remain affordable. Ramos urged regulators not to impose ‘toll booths’ to digital development, for example using high prices at spectrum auctions as a revenue raising exercise. Yoon Chang (Strategy Director, Ofcom) outlined the UK regulator’s approach to digital inclusion, which is focused on three pillars: affordability, access and ability. With Ofcom appointed by the Government as the regulator for online harms, it is increasingly considering how to ensure that those citizens using digital services have a safe experience when doing so.
A Match Made in Space
In what was generally quite a marketing-themed session, Neil Masterson (CEO, OneWeb), gave an update on their deployment with more than 500 satellites now in operation. They see themselves as a wholesale partner to operators (a model of collaboration, not competition) and stressed they were not seeking to disintermediate the telco (evidenced by partnerships with more than 50 operators now). This concept of satellite being a threat to the telco emerged more than once, with the industry evidently keen to reassure those in the room (mostly operators), that this wasn’t the case. The panel outlined a range of technical challenges still to overcome to further expand the reach and applicability of services.
