Generative AI Watch: ‘RingSense’ by RingCentral is Well Positioned in a World That Both Embraces and Fears AI

G. Willsky

Summary Bullets:

• RingSense marks the latest addition to RingCentral’s AI portfolio and arrives after a noticeable hiatus.

• RingSense closes a competitive gap with rivals who have recently responded to the emergence of ChatGPT with their own generative AI offers.

RingCentral recently launched an open beta of RingSense, a generative AI platform that leverages voice and natural language processing (NLP) to analyze business conversation data. The first iteration is RingSense for Sales, which dissects interactions between sales reps and customers or prospects across calls, emails, and video meetings. Users can assess rep and team performance, discover customer wants and needs, and more. Along with RingSense for Sales, RingCentral plans to release four additional, related offers: RingSense for Revenue Leaders, RingSense for Sales Enablement, RingSense for Customer Success, and RingSense for Marketing.

Dual 5G Networks – Still Far from Ideal but Way Better than SWN to Drive 5G Development in Malaysia

A. Amir

Summary Bullets:

• The details are still unclear, but the Malaysian government’s announcement on dual 5G networks is a positive move that can accelerate 5G developments in the country.

• Telcos should start collaborating and get more involved in the second 5G network for greater control of the infrastructure.

The Malaysian Communications and Digital Ministry recently announced that 5G rollout in the country will move to the second phase, in which Malaysia will have a dual network model upon reaching a population coverage of 80% of the first network. Having dual wholesale networks is still far from ideal compared to separate deployments by the telcos. However, it is a very positive move from the single wholesale network (SWN – for more on SWN, please see “Malaysia 5G Through SPV: One Step Forward and Two Steps Back,” March 8, 2021) as it will provide wider options for telcos/service providers and enable them to differentiate. It can also drive 5G development and accelerate innovations in creating new applications and use cases. All major local telcos (e.g., CelcomDigi, Maxis, and Telekom Malaysia) have already voiced their support for the dual networks while the largest player, CelcomDigi, has announced it will withdraw its equity participation with Digital Nasional Berhad (DNB – i.e., the current SWN provider).

Telecom Wholesalers will Require an Underlying Strategy for AI

R. Muru

Summary Bullets:

• The telecom wholesale segment is behind the AI implementation curve, and companies need to do more by embracing innovation – i.e., exploiting opportunities for generative AI.

• Success for telecom wholesalers will entail developing an underlying AI strategy across the portfolio and company in a connected manner.

Telecom Wholesale Trends in 2023
GlobalData’s discussions over the last year with global leading telecom wholesale providers highlights a commonality in strategy among telecom providers selling wholesale connectivity, both in terms of strategic vision and in the products and services they offer. Where companies differ is influenced by the nature of the core networks that support products and services, global geographical reach, and strength of product/service brand (e.g., antifraud solutions, mobile roaming), and lastly partnerships.

AI-Video Can Boost Telcos’ Industrial Solutions, but Requires Careful Partnering

M. Rogers

Summary Bullets:

• Telcos have a good opportunity to leverage AI-video systems in their wider industrial solutions portfolio as the market has rapidly matured.

• Rather than develop solutions in house, telcos should look to partner with existing vendors due to the complexity of developing AI video algorithms and integrating with industrial systems.

The use of AI-enabled video surveillance systems continues to rise across Australia as well as globally with a myriad of use cases like public safety, facilities management, crowd management, asset management, and more. However, these systems also generate a large amount of video data, which requires significant bandwidth and storage capacity to process and store. This makes the video or video surveillance as a service an attractive market for telcos and managed service providers as they seek to expand their revenue base as traditional service margins decline. However, the market for AI-video solutions is rapidly maturing and diversifying, with a growing field of specialists developing specific vertically aligned use cases for AI-video from retail, to government, to mining, education, and more. Further, video systems are increasingly integrated with other IT and operational systems such as physical security, communications networks and IoT platforms creating a complex ecosystem of solutions, vendors, use cases, and monetization models to navigate.

Malaysia Enterprise Telecom Update Q1 2023 – Strong Momentum After Solid Performance in 2022

A. Amir

Summary Bullets:

• Malaysian telcos recorded steady performance in the enterprise segment in 2022.

• They started the year strong with several industrial collaborations, but there are still huge market opportunities for them to capture.

Malaysian telcos had strong momentum last year in building their vertical capabilities and enterprise 5G solutions. This includes TM ONE in smart cities and manufacturing sectors, CelcomDigi in healthcare and logistics, and Maxis’ 5G Alliance. For more, please see the 2022 quarterly updates at: Malaysia Enterprise Telecom Update Q1 2022: Wider Industry Collaborations Despite Stagnant Growth in 2021 April 13, 2022; Malaysia Enterprise Telecom Update Q2 2022 – Mixed Developments but Positive Overall Progress August 11, 2022; Malaysia Enterprise Telecom Update Q3 2022 – Slower Development but Steady Performance October 31, 2022; and Malaysia Enterprise Telecom Update Q4 2022 – Stronger Vertical Play, Wider Enterprise 5G Development January 5, 2023. This report analyzes Malaysian telcos initaitives in the enterprise segment in Q1 2023 as well as their 2022 financial year business performance in the segment.

ASEAN Enterprise 5G Q1 2023 Round-Up: Slow Start to the Year for Most ASEAN Telcos While AIS and Singtel Extended Their Leads

A. Amir

Summary Bullets:

• AIS and Singtel continued their momentum with various initiatives to extend their enterprise 5G leaderships in their respective markets.

• Other telcos in the region had a slower start to the year with only several initiatives and collaborations.

In 2022, telcos aggressively expanded their 5G networks and built enterprise 5G capabilities through various partnerships with technology vendors and collaborations with industry players. While many initiatives were still in the proof-of-concept and trial stages, leading telcos such as Singtel and AIS have launched their respective solutions commercially in the market. For more, please see GlobalData quarterly ASEAN 5G 2022 reports here:

• ASEAN 5G Q1 2022 Roundup: Beginning of 5G Network Slicing and the Platform Play, April 8, 2022.

• ASEAN 5G Q2 2022 Roundup: Wider Partnerships Between Carriers and IT Providers, August 3, 2022.

• ASEAN 5G Q3 2022 Round-Up, October 17, 2022.

• ASEAN 5G Q4 2022 Round-Up: Wider Industry Collaborations, Private Network, and Sustainability, January 3, 2023.

GlobalData’s New Digital Infrastructure Australia Report Highlights the Vendors Best Positioned to Win Deals in the Cloud Network Convergence Era

M. Rogers

Summary Bullets:

• As enterprise embrace hyperscale cloud platforms and networking services are more tightly integrated with cloud offerings, a diverse range of vendors are now competing for digital infrastructure services in Australia.

• Telcos are focused on evolving a network as a service approach, connecting as many clouds as possible, while systems integrators (SIs) and IT managed services providers (MSPs) are looking more at the migration towards an ongoing management of multi-cloud infrastructure.

The market for digital infrastructure services in Australia is served by a broad range of players that include both domestic and international players across telecommunications companies, IT MSPs, SIs, hyperscalers, and data center specialists. Further, many of the leading providers rely on packaging products and services from other vendors alongside their own to provide more complete set of solutions. For example, a telco offering its networking services alongside re-selling IaaS from a hyperscale cloud provider, or an SI offering managed network and managed cloud contracts from multiple vendors. As enterprise databases and applications increasingly move towards hyperscale environments led by a few players, digital infrastructure providers need to differentiate around areas like network visibility and performance, service automation, consulting and advisory, service orchestration, cost management, and managed services. As such, the covered vendors all have different strengths based on their background.

Italy’s Privacy Watchdog Temporarily Bans ChatGPT: Who Will be Next?

B. Valle

Summary Bullets:

• The Italian National Authority for Data Protection has temporarily banned ChatGPT after a leak exposed the personal data of users of the paid-for version of the service.

• OpenAI, the company behind the popular chatbot, has 20 days to respond to the privacy watchdog or risks a fine equivalent to 4% of its annual turnover.

The Italian National Authority for Data Protection became the first regulator to start an investigation into OpenAI’s ChatGPT last week. Debate turned to the inevitability of increased regulatory oversight to control the effects of the explosion in the use of generative AI, and the possibility that the measure could be followed by other Western democracies, as the conversation around AI and ethics becomes more urgent.

Agribusiness is New Tech Battleground for Australia’s Telcos

M. Rogers

Summary Bullets:

• TPG and Telstra have had multiple trials with various agribusiness in Australia, leveraging 5G, AI, IoT, and data services to develop solutions for livestock.

• Both companies have yet to develop commercialized solutions, and could consider joint ventures with or acquisitions of agritech firms to fully capitalize on the vertical opportunity.

Cows, potatoes, and tomatoes could be the next tech and telco battleground in Australia. Leading telcos Telstra and TPG have both made recent announcements around their efforts to develop converged technology offerings centered on agriculture use cases.

Does Broadcom’s Acquisition of VMware Create an Unfair Playing Field?

R. Muru

Summary Bullets:

• The proposed Broadcom and VMware deal could create a conglomerate effect in the server virtualization market.

• The uncertainty of the deal will impact customers on their decisions on current and future VMware investments, resulting in some customers switching to competitors.

Broadcom has a Checkered M&A History
GlobalData previously provided commentary questioning if Broadcom had the right profile, but more importantly, the right pedigree to be the company acquiring VMware. After all this is one of the largest potential acquisitions resulting in VMware being acquired by Broadcom for approximately $61 billion in a cash-and-stock transaction, together with VMware’s net debt of $8 billion.