Based in Sydney, Australia, Malcolm Rogers is an Analyst with GlobalData. He is responsible for delivering research and consulting projects leveraging research and analysis from across the Global Data technology group. Malcolm offers impactful market data and insight to enterprise buyers, service providers and the vendor community across Asia-Pacific. Current areas of focus include telecommunications networks and services, mobile markets, and enterprise ICT services. He specializes in the analysis of the communications and technology markets across the countries in Asia-Pacific. Malcolm is also in charge of modeling and forecasting demand and service revenue for fixed, mobile and pay-TV services on a quarterly basis, and regularly publishes research and analysis on key country, regional and global trends on telecommunications networks and digital services. He also contributes to custom and consulting projects in Asia Pacific.
• While many of the largest telecom operators in the world are struggling to monetize next generation technologies and services supported by 5G, one small regional player in Australia is doing just that.
• Pentanet, a Perth-based, regional FWA provider is using its 5G mmWave spectrum to launch gigabit-services using mesh technology while it is also taking on cloud gaming with an exclusive Nvidia partnership.
Around the globe, telecom operators continue to face increasing margin pressure and competition from OTTs in their traditional communications space. This has prompted the industry to explore new revenue streams to combat competitive pressures. New 5G networks are commonly cited as an asset operators can leverage to create differentiated services, taking advantage of the increased speeds and latency made available by the technology. Some common areas often cited as early 5G opportunities for the telcos include services in content like AR/VR or cloud gaming, improved fixed broadband using FWA, smart cities, and industrial applications. However, for many operators breaking into these new markets has proved challenging. The investment in new platforms is cost prohibitive at a time when they need to maintain legacy services that make up the core of their business. Some operators are unable to invest in 5G standalone, or nationwide rollouts which limits the performance of their network. In many cases it is the largest telcos with the deepest pockets that have been able to bring next generation services to market, either for consumers or enterprise. However, there is one small telecoms operator based in Perth, Australia that is demonstrating how telcos can bring next generation services to market even on a small scale.
• As operators modernize networks towards the goal of cloud native architectures, the multi-domain, cloud-oriented nature breeds complexity, which is the leading challenge today.
• To tackle this complexity, operators, vendors and a new breed of network platform vendor are turning to AI tools for orchestration management and assurance as well as APIs and open standards.
FutureNet Asia, a leading conference bringing the telecoms industry together to discuss strategic and commercial priorities was held this October in Singapore. The event saw leading players from the operator side including Bharti Airtel, Indosat Hutchinson Ooredoo, and Telenor Asia, the infrastructure side such as Juniper, Dell, and Intel, heavy representation from network enablement vendors such as Amdocs, BluePlanet, and Rakuten Symphony, and newer players with a focus on cloud-native and AI enabled networks like B-YOND and Robin.IO, come together to discuss the future of operator networks and how AI will play a role in delivering services in the 5G era. Operators like IOH shared their journey towards automated cloud native networks, including the challenges still ahead, while vendors like VMware and B-YOND discussed how they are assisting their operator partners in dealing with the complexity of these new architectures with automation, including the use of AI tools. Below is a discussion of some of the key challenges raised and how the industry is addressing them. Continue reading “From FutureNet Asia: Many in the Telco Industry See that AI and Open Standards are Needed to Tackle Complexity of Cloud Native Networks of the 5G Era”→
In the month of March 2022, telecoms regulators around the world have been implementing initiatives and programs to encourage enterprise adoption of 5G services.
Despite initiatives from governments and operators to drive use of 5G by industry, adoption is still low and increased collaboration is necessary.
Regulatory Support for Industrial 5G Development
Across the globe, regulators are taking various steps to encourage non-telecoms industry to participate in the development of a 5G ecosystem. The promise of 5G goes beyond enhanced connectivity and download speeds for consumers to being a force for economic uplift within the enterprise sector as well. To this end, regulators are encouraging 5G development through policies such as temporary spectrum licenses, enhancing the interoperability capabilities of private 5G networks, or developing 5G testbeds accessible for businesses. These policies are generally done in concert with moves from private industry to support take-up and trialing of 5G services by enterprise. This brief post reviews and analyzes some of the recent moves in the month of March 2022 from regulators trying to encourage industrial 5G development. Continue reading “Regulatory Roundup: Regulators Are Making Moves to Drive Industrial 5G, but Deeper Cooperation with Industry Partners Is Needed”→
• Radian Arc, a Perth-based edge infrastructure provider is helping telco monetize 5G with cloud gaming, but is turning its sights on enterprise applications.
• Radian Arc’s built for purpose edge infrastructure and partner marketplace could offer a template for a CAPEX free way for telcos to monetize 5G.
Radian Arc, founded only in 2020, is making a name for itself in the emerging cloud gaming industry. Cloud gaming works largely the same way as video streaming services, with content and processing stored and run on remote servers with the visual outputs of the game being streamed to an end user device. Radian Arc, however, is not a gaming company, instead positioning as an Infrastructure as a Service (IaaS) provider, specifically focusing on providing graphical processing unit (GPU) and storage solutions. However, unlike IaaS providers in the public cloud space like AWS or Azure, or traditional private cloud IaaS, Radian Arc is focused exclusively on delivering their infrastructure at the edge of telecom operator networks.
Vocus’ deal with OneWeb will greatly enhance its ability to provide connectivity services to the most remote sites using Vocus fiber as the backbone and OneWeb LEO as the last mile.
Partnership with OneWeb will enable FSG to accelerate its rural LTE/5G network rollout and increase its capabilities to offer private networks to the mineral and energy verticals.
OneWeb, a UK-based satellite connectivity company, recently announced two new partnerships with telecommunications providers in Australia. The deals will see Vocus and Field Solutions Group (FSG) resell OneWeb’s wholesale and retail low Earth orbit (LEO) satellite connectivity services to consumers, governments, and enterprise in Australia. Compared to traditional satellite connectivity, which is provided via geosynchronous orbit (GEO) satellites, LEO is much closer to the earth’s atmosphere and provides much higher-bandwidth, lower-latency broadband. For example, in March 2021, OneWeb demonstrated speeds of 500 Mbps and 32ms latency in tests with its fleet of satellites. By comparison, NBN’s GEO service, SkyMuster, has a maximum wholesale speed of 25 Mbps downlink and 5 Mbps uplink, with independent tests putting latency around 600ms. OneWeb’s capabilities will give Vocus and FSG opportunities to expand their business in the critical energy and mining sectors in regional and rural Australia. Continue reading “Vocus and FSG Have Opportunity to Expand in Critical Verticals with OneWeb Services “→
• Telstra Health has set ambitious revenue growth targets for FY2025, hoping to drive growth through developing new connected platforms cutting across the healthcare industry.
• There is opportunity for Telstra to work more closely with its healthcare subsidiary and leverage its edge, security and analytics capabilities to support Telstra Health’s goals and develop vertical solutions.
More than seven years ago Telstra invested in a new line of business as it looked to diversify revenues ahead of the launch of the NBN. This business, Telstra Health, has grown through the years to A$160 million in revenue for FY2021 ended June 30, 2021. This total does not include 2021 revenues from Telstra Health’s acquisition of medical practice management software provider Medical Director, nor its joint-venture (in which Telstra Health controls a majority stake) with medical budgeting and costing software provider Power Health. With recent acquisitions included, Telstra Health made A$250 million in FY2021. However, Telstra has even loftier goals for its health focused subsidiary; as announced at its Telstra Investor Day Part II, Telstra Health is targeting to double its revenue to FY2025, a goal of A$500 million.
• Telstra is looking to build a commanding lead in the enterprise edge platform solutions marker in Australia, announcing the roadmap for its platform and early use cases.
• While Telstra’s offering is comprehensive and unique in the market, like cloud, edge will have room for all kinds of players and Telstra will see more competition as the market matures.
Telstra recently updated the market with its roadmap for its new “Telstra Edge Compute” platform that launched its first solution. Telstra Edge Compute is comprised of various existing Telstra products as well as new ones developed through partnerships made over the past several years. Essentially the company is stitching together the results of the last few years of product development (Telstra Adaptive Networks, Telstra Adaptive Cloud, and Telstra Adaptive Edge) and partnerships (Ericsson/Cradlepoint, Microsoft Azure, and AWS) to provide an all-in-one “edge” solution to the market. In this case, “all-in-one” includes network and connectivity (Telstra 5G, NBN, or third party), SD-WAN, security (next generation firewalls, secure cloud gateways, endpoint security, secure network architecture, and monitoring), storage and compute infrastructure from Telstra, AWS Outposts or Microsoft Azure Stack, and Telstra IoT capabilities wrapped in professional services and service management led by Telstra’s consulting arm Telstra Purple.
Telstra’s edge is an extension of existing customer cloud and data center environments. As such, the Telstra Purple professional services component will be key. Like the cloud migration journeys many enterprises have undergone over the past several years, Telstra envisions a similar edge migration journey. Customers will undergo application, infrastructure, and security architecture discovery with Telstra guiding customers towards a mix of on-premises, edge and cloud deployments, and connectivity types based on application performance requirements.
FSG, a telco focused only on regional and rural Australia, is set to become Australia’s fourth MNO in 2022 as it builds out a 200-plus tower network.
The company has valuable spectrum assets, a unique neutral host approach, and a focus on critical verticals to become a threat in the enterprise 5G market in rural areas.
A little-known, fledgling telecom company called Field Solutions Group (FSG) has quietly become Australia’s fourth mobile network operator. The company, which focuses specifically on providing FWA, NBN, and mobile services to regional and rural Australian businesses and government organizations, has an ambitious plan to build out more than 200 mobile towers in regional and rural Australia by 2023. Currently, the company only offers FWA on its ‘Regional Australia Network,’ but through government grants from the Mobile Blackspot Program, technology partnerships with Optus, and the recent acquisition of Tasmanet, the company hopes to be a disruptive fourth MNO option for regional and rural governments and businesses. While the company is small, earning AUD 18.8 million in FY 2021 (ended June 30, 2021), the company has a few things working in its favor that could enable it to become a real challenger to the largest telcos when competing for business and enterprise 5G revenues in rural and regional Australia over the coming years. Continue reading “Field Solutions Group: The Rural Telco Tier 1s Should Keep an Eye On”→
• Aussie Broadband has made a proposal to acquire Over The Wire for A$344 million, which if it goes through would make the combined company a top-five telco in the country.
• On the enterprise side there are lots of synergies, particularly with Aussie Broadband’s Carbon platform lining up with Over the Wire’s managed services capabilities.
Rapidly growing telco Aussie Broadband, made headlines last week when it made a non-binding offer to acquire business focused telco and managed service provider Over The Wire (OTW). After the leak both companies made official announcements to the ASX that an offer had been made to the tune of A$5.75 per share (equivalent to A$344 million). While both companies have clearly stated this does not mean a deal is imminent, and the official due diligence period will not come to an end until November 30th, the move makes a lot of sense and could create a real national level competitor in the enterprise telecoms and ICT services market, from the two upstarts.
• Capgemini’s recent acquisition of Empired caps off a spending spree on Australian applications and data specialists that suggest a shift in focus to grow its business in Asia Pacific
• Capgemini’s broad capabilities paired with Empired, a Microsoft specialist strong in Western Australia with many clients in minerals, energy, and government, offers unique opportunities for growth in areas like industrial IoT
Capgemini Sets its Sights on Australia
French systems integrator, consultancy, and IT services provider Capgemini announced plans to purchase Empired, an Australian cloud and digital services provider based out of Perth. The acquisition brings over 1,000 professionals to Capgemini and augments the IT services provider’s footprint in Australia and New Zealand. The deal is expected to close at the end of 2021 for $233 million. Empired has offices in Sydney, Melbourne, Perth, Brisbane, and Adelaide within Australia. It also has significant operations in New Zealand and a sales office in the US.