• Following the Australian Competition and Consumer Commission’s (ACCC) decision to oppose the Telstra TPG network sharing agreement, TPG should be more concerned about its strategic importance.
• While impact to Telstra would be limited, TPG faces setbacks to its enterprise growth strategy in FWA, 5G SD-WAN, private cloud, and overall pricing strategy.
In February of 2022, Telstra and TPG entered into a ten-year network sharing agreement, subject to regulatory approval. However, nearly one year later, the ACCC has rejected the deal on anti-competitive grounds. The agreement would have seen Telstra grant TPG use of 3,700 Telstra mobile sites in regional and rural Australia, allowing TPG to enter new markets and moving its overall population coverage from 96% to 99%. Meanwhile Telstra would have been gained access to some of TPG’s spectrum for 4G and 5G services, boosting overall network capacity.
• Enterprises like the idea of SASE, but zero trust is often more relevant to their business needs.
• Many enterprises feel they are not ready to implement either framework.
Secure access service edge (SASE) and zero trust network architecture (zero trust or ZTNA) are two of the go-to technology trends in the networking and security space at the moment. They grab attention because the idea of bringing network and security policies closer together is appealing to enterprises and often forms part of their IT strategy. The catch is that network and security convergence is often part of enterprises’ longer-term strategy (i.e., not before 2025), and it is often a vague aspiration rather than a definite plan.
• 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.
• BT has partnered with Just Eat and Checkatrade to offer discounted packages for broadband and mobile as part of its Enterprise Customer Charter.
• Service providers everywhere are looking to exploit third-party channels to maximize their addressable market – especially in mass markets like SOHO/micro businesses.
BT announced partnerships with Just Eat and Checkatrade to offer discounts on business broadband packages and mobile deals as part of the UK incumbent’s Enterprise Customer Charter – its ‘blueprint to boost UK plc by exploiting cybersecurity, digital services, and purpose-driven goals.’
• Carriers continue to expand their partner ecosystem with players across the technology stacks to enhance their end-to-end 5G solution capabilities.
• These initiatives will strengthen providers’ mind share and enable them to capture the early market opportunity through use case co-creation and commercialization.
The previous quarter saw wider partnerships between carriers and IT providers to further expand their enterprise 5G initiatives including AIS with Singtel and NCS, Maxis with HPE, M1 with Accenture, Celcom with HeiTech and IOH with Tech Mahindra (for more, please see ASEAN 5G Q2 2022 Roundup: Wider Partnerships Between Carriers and IT Providers,August 3, 2022). In Q3 2022, ASEAN carriers continued to expand their partnerships with leading technology players to launch innovation facilities and drive industry collaborations with enterprises across different verticals. This includes Singtel and Intel’s partnership on MEC Incubator, AIS and ZTE’s collaboration on 5G Center and Maxis’ wider 5G Alliance. Continue reading “ASEAN 5G Q3 2022 Round-Up”→
• Reaction times to extraordinary events have improved, but the economic crisis is different as interest rates are rising with the potential of exposing under-performers.
• ‘Zombie’ service providers and ‘zombie’ customers will be exposed, leading to supply-side consolidation and increased competition for a smaller base of corporate and SME business.
Since the ‘mini budget’ of September 23, 2022, things have become extra-extraordinary in the UK with billions of pounds being thrown around to counteract the resultant economic impacts and to protect citizens from the knock-on effects of Russia’s war in Ukraine. While the general public worries about paying mortgages, the rising daily cost of living, and global instability, telecoms service providers must plan for a range of potential future scenarios and outcomes and develop ‘what if?’ thinking in response to evolving market circumstances.
• Hyperscalers are making a move in ASEAN, expanding their footprints in key markets.
• Telcos will need to redefine their product and go-to-market strategies in the cloud, edge, and enterprise 5G.
Hyperscalers Are Making a Move in ASEAN Leading hyperscalers are aggressively expanding their presence globally, with ASEAN being one of the key markets (for more, please see ”Hyperscalers Making a Move in ASEAN,” September 27, 2022). From Singapore, hyperscalers expanded to Indonesia and are now further expanding their footprints in the other key ASEAN countries such as Malaysia, Thailand, and the Philippines. Amazon Web Services (AWS) announced its Local Zones in the Philippines, Thailand, and Vietnam; Google Cloud is building new regions in Malaysia and Thailand; Alibaba Cloud opened new regions in the Philippines, and Thailand and has the widest presence in ASEAN; and Microsoft is planning to open new data centers in Indonesia and Malaysia. The move was driven by the growing demand for cloud services in the region accelerated by the pandemic. ”GlobalData Global IT Customer Insight 2022” shows that 75% of 166 ASEAN enterprises have increased their spending on cloud in 2022 while ”GlobalData Market Analyzer” (last viewed in September 2022) estimates that the cloud market in the region will double in the next five years from $16.3 billion in 2021 to $33.8 billion in 2026.
• Security heads continue to be challenged in implementing effective cybersecurity strategies and continue to want positive and measurable business outcomes with their cybersecurity investments.
• To stay relevant and drive growth, providers will have to reposition sales and marketing efforts in front of customers, emphasizing value-based selling addressing business challenges.
The Challenged Chief Information Security Officer (CISO), and Vendors Riding on the Current Cybersecurity Growth Wave It is clear that cybersecurity is high on the agenda for businesses of all sizes ranging from small-to-medium enterprises to multinational corporates and government establishments. In recent years, the public has seen exponential growth in cyberattacks across a range of verticals covering finance, government, and utilities to name a few. On the one hand, this has resulted in healthy revenue growth in the cybersecurity segment, with stock valuations and revenues on the rise alongside advances in technology.
• Enterprises should be aware that different vendors have differing lead times on hardware.
• Service providers have held off on price increases thus far, but this may not be the case in the longer term.
Inflation and resource shortages have been two of the key global macro-economic trends over the last 12 months as the result of multiple contributing factors. Chip shortages have become a significant problem in almost all sectors, and the telecoms market has been significantly affected – albeit in an uneven way. However, while costs are going up, technology may also help enterprises be more efficient.
• SASE combines WAN with elements of security and edge technology, but that is not a catch-all solution.
• For SASE to work, organizations must break down internal silos to create a unified approach to data routing and security policies.
What is SASE or – to reference it by its full name – secure access service edge? Enterprises can be forgiven to a degree of uncertainty on this point since, as with all new technology concepts, the term has been used rather freely by vendors, service providers, and analysts alike. In its original form, the concept envisioned a move beyond traditional WAN (including SD-WAN) to a group of network technologies that would be deployed at the network edge (in a move away from customer premises equipment) and would combine both routing and security capabilities.