Intelligence Brief: How is 5G changing network ownership?

first_img Intelligence Brief: Assessing latest developments in 6G and healthcare Intelligence Brief: Assessing recent spectrum developments In November 2018 we looked at the implications of a growing shift among operators to share or divest tower assets. Two clear takeaways emerged:5G necessitates a different network strategy. Unlike previous generations, 5G deployment is not only about adding more sites and increasing backhaul capacity. In fact, it is more about rethinking the whole network architecture to make it agile. The high capacity requirements of 5G will necessitate the use of small cells in cities and areas of high footfall (such as airports) to complement national macro networks. Private networks (for example to sell into enterprise customers) and the concept of a neutral host (such as for sports stadiums) are further examples of diversification.Decoupling. The traditional vertically integrated model of network ownership in which operators own and control all passive (sites and towers) and active (radio access) infrastructure is being joined by a decoupled approach where parts are owned and operated by a third-party (such as a tower company)With the 5G becoming commonplace, operators are under constant pressure to address deepening financial and market pressures, as required infrastructure funding increases dramatically in the face of the investment-heavy evolution toward 5G. How much will this all cost? A report published in 2019 by GSMA Intelligence predicted an outlay of about $1 trillion alone on 5G between 2019 and 2025.This represents a massive cost pressure, particularly given low revenue growth. As a result, the industry has been driven to look at multiple ways of keeping costs in check. Most discussed and perused so far are voluntary network sharing, virtualisation and the shift to open RAN. But, as 5G opens up new network infrastructure models, new operations models need to be considered as well: small cells sharing (or partnerships with municipal authorities); private network launches; and creating neutral hosts. While, to date, infrastructure sale and leaseback deals are more common (where an operator sells towers to a TowerCo or other third-party on the proviso it will be able to lease access), the structural separation of assets is another option worth consideration.Yet, as much as we might call these new models for a 5G era there are examples to look to in terms of guidance going forward.O2 CzechiaIn 2014, PPF Group, a local private equity fund, bought O2 Czech Republic from Telefonica and separated the network (privately held and known as Cetin) from the retail business (publically listed). The deal not only benefitted the new owners: the country received a significant infrastructure upgrade as well. The creation of a pure network infrastructure player lowered borrowing costs and improved capital access such that Cetin increased its network capital expenditures by 40 per cent a year after separation. From there on, capital expenditures increased by 13 per cent annually. This led to a jump in fibre coverage and broadband speeds at a level rarely seen in Europe.Reliance JioReliance Industries demerged its telecom infrastructure, including tower and fibre assets, into a separate company, which has been monetised through a deal with private equity company Brookfield Asset Management. Following the separation, Reliance Jio has become asset light, having a balance sheet size of $33 billion. Now, by putting all the digital entities under a new company, Reliance Industries is readying the services arm for a better customer experience and deeper penetration, eventually converting into better valuation. The company already made it clear that it will list Reliance Jio’s shares in the market. The new arrangement makes the operator, almost debt-free, thus improving its valuation.TelstraSpun out its infrastructure assets into a new business called Telstra InfraCo, which managed approximately $11 billion in network infrastructure assets. Telstra started recognising internal access charges in its fiscal 2019 (the year to end-June 2019), the fees Telstra essentially pays itself for accessing its own infrastructure. With these charges included, InfraCo’s revenue rose 51.6 per cent to $4.95 billion. Telstra is now planning on transferring all of its mobile infrastructure into the business, which is now a semi-autonomous unit.TDC GroupThe Danish operator was acquired by a Macquarie-led consortium of buyers at a 34 per cent premium to the market price with a structural separation initiative as one of the core pillars of value creation justifying the takeover.These examples might make network disintegration look lucrative, but it is not a simple copy-paste framework. It is a very complex and unique call to make for each operator; it can never be generalised. However, we can certainly look at some basic factors critical to be assessed while thinking about spinning off network operations:Regulation on access and control.Quality and scale of infrastructure already in place.Level of site fibre and network sharing.Lack of modularity and complexity in operations.Regulation on wholesale pricing.Obviously, lower pressure on any of these fronts drives better odds of success. Regardless, as we move into fuller 5G deployments from operators large and small, we can imagine these considerations may not always be top of mind, particularly where high-profile examples lead to a copy-paste mentality.In the process, we will see new failures, new successes, and might even see new models develop.– Aryan Jain – research manager, strategy, GSMA IntelligenceThe editorial views expressed in this article are solely those of the author and will not necessarily reflect the views of the GSMA, its Members or Associate Members. Subscribe to our daily newsletter Back 5GGSMA IntelligenceGSMAi AddThis Sharing ButtonsShare to LinkedInLinkedInLinkedInShare to TwitterTwitterTwitterShare to FacebookFacebookFacebookShare to MoreAddThisMore3 12 FEB 2020 Tags Read more Blog center_img Related Previous ArticleCovid-19 industry impact: February to MarchNext ArticleSoftBank profit plunges on Vision Fund woes Intelligence Brief: Does intent matter in network automation? 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AQE win for Air Monitors

first_imgSubscribe Get instant access to must-read content today!To access hundreds of features, subscribe today! At a time when the world is forced to go digital more than ever before just to stay connected, discover the in-depth content our subscribers receive every month by subscribing to gasworld.Don’t just stay connected, stay at the forefront – join gasworld and become a subscriber to access all of our must-read content online from just $270.last_img

Patricia Gandolfo Earns All-America Honors

first_imgPatricia Gandolfo Earns All-America Honors Patricia Gandolfo (Photo by Harding University) Sharecenter_img LEXINGTON, Ky.  – Patricia Gandolfo (Porto Alegre, Brazil/Missouri State – West Plains) tops off her decorated two-year career at West Florida with the highest honor among volleyball awards with an AVCA All-America third team selection. The award is a first for the senior, becoming just the second All-American in UWF volleyball history.Gandolfo ranked nationally in blocks per set and led the Argos to the NCAA Division II South Region semifinals. She earned two AVCA All-South Region and two Daktronics All-South Region selections in her two years at West Florida, and now adds the All-America nod to her list of awards. The middle hitter was among three representatives of the entire Gulf South Conference on the All-America list alongside North Alabama’s Alison Jacobs and Sarah Roberts.She finishes her career with seven total Gulf South Conference player of the week nods in just two years, while collecting two consecutive All-GSC first team awards. A co-captain for the Argonauts, Gandolfo led the team in kills, blocks, and aces in 2009, and finishes her careers in multiple top-ten categories in the record books. Perhaps her best record at UWF is a .312 career hitting percentage that ranks her second among all players in the program’s history.Print Friendly Versionlast_img read more

Herbert goes off as Delaware Hayes wins over Buckeye Valley on senior night

first_img NEO HS Staff Related TopicsBuckeye ValleyDelaware Hayes By Logan KelleherDELAWARE, OHIO– The first quarter started off with split free throws from Terin Kinsway, and then Dylan Herbert made a three to start for the Barons. The scoring was back and forth right up to the end of the quarter, and it was Ryan Smudz who made a basket to make it 17-13 at the end of the first quarter.By the end of the quarter, Kinsway, Paul Burris and Terin Kinsway each had four for the Pacers, while Herbert had seven for the Barons.The second quarter started off with Kinsway making a basket and making two from the line to make it an eight point game, before Max Stokey scored for the Barons.Herbert continued with his good shooting, getting 10 points in the quarter, putting him at 19 at halftime. Kinsway and Griggs had six and five for the Pacers, to put their scoring totals at 10 and nine.At halftime, Buckeye Valley only trailed Delaware Hayes by two, with the score 30-28.Herbert had a quiet third quarter, finishing with two points, but Elijah Jackson and Max Stokey made three three-pointers for the Barons, but Griggs got a confidence boost at halftime.Griggs had 13 in the quarter, while Kinsway and Burris combined for the other six points in the quarter. The score at the end of three was still in favor of Delaware Hayes, 49-39. Herbert had 21 for the Barons, and Griggs had 22 for the Pacers.Herbert got back on a role in the fourth, scoring eight to help Buckeye Valley get back into the game, but his efforts, along with his teams, were not enough, as the Pacers held on to win 66-59.Dylan Herbert led Buckeye Valley with 27 points, and Elijah Jackson added 14. For Delaware Hayes, Nate Griggs led with 28, and Kinsway had 21, along with 13 rebounds.last_img read more

Rex Tillerson: Pre-emptive military action against North Korea is an option

first_imgSecretary of State Rex Tillerson visited the DMZ to underscore the Administration’s commitment to strong U.S.-ROK alliance.— Department of State (@StateDept) March 17, 2017 Referring to how the Obama administration hoped sanctions would cripple North Korea to the point where it would renew de-nuclearization negotiations, Tillerson added, “Let me be very clear: the policy of strategic patience has ended.”He also emphasized that the U.S. had no plans to curtail its military activities in the region.“We don’t believe conditions are right for talks and we have no intention of ending military exercises,” he said.ABC Breaking News | Latest News VideosCopyright © 2017, ABC Radio. All rights reserved.Powered by WPeMatico Song Kyung-Seok-Pool/Getty Images(SEOUL, South Korea) — Secretary of State Rex Tillerson says pre-emptive military action against North Korea is possible “if they elevate the threat of their weapons program to a level that we believe requires action.”“All of the options are on the table,” Tillerson said.After visiting the militarized border between South Korea and North Korea, Tillerson spoke at a press conference with South Korean foreign minister Yun Byung-se in Seoul, where he was asked if he would rule out military action against North Korea.Tillerson said the U.S. does not want to engage in a military conflict, “but obviously if North Korea takes actions that threatens South Korean forces or our own forces, that would be met with (an) appropriate response. If they elevate the threat of their weapons program to a level that we believe requires action that option is on the table.” In Seoul, Secretary Tillerson met with Korean Foreign Minister Yun to convey support for U.S.-ROK alliance and address #DPRK nuclear threat.— Department of State (@StateDept) March 17, 2017 Relatedlast_img read more

Lions’ spirit soars

first_imgBy DAVID NAGEL CCFL REVIEW – ROUND 11 Pakenham 10.6 (66) Berwick 6.11 (47) THE spirit of its coach Steve…[To read the rest of this story Subscribe or Login to the Gazette Access Pass] Thanks for reading the Pakenham Berwick Gazette. Subscribe or Login to read the rest of this content with the Gazette Digital Access Pass subscription.last_img

Chargers overrun the Rays

first_imgBy Hayley Wildes There is no doubt that the top of the table TAC Cup clash between the Dandenong Stingrays…[To read the rest of this story Subscribe or Login to the Gazette Access Pass] Thanks for reading the Pakenham Berwick Gazette. Subscribe or Login to read the rest of this content with the Gazette Digital Access Pass subscription.last_img

Discussion on bushfire prevention plan

first_imgBy Aneeka Simonis POTENTIAL roadside fire hazards will be removed in preparation for bushfire season. Grass on either side of…[To read the rest of this story Subscribe or Login to the Gazette Access Pass] Thanks for reading the Pakenham Berwick Gazette. Subscribe or Login to read the rest of this content with the Gazette Digital Access Pass subscription.last_img

First oil

first_imgCaretaker President David Granger followed up on ExxonMobil’s announcement that it had uplifted its first commercial quantity of oil by promising to proclaim Dec 20 “National Petroleum Day”. His reaction was in line with the anodyne and jejune pronouncements he has become noted for: heavy on symbolism but disjuncture of any associated action that would suggest he has a clue about delivering what he evokes. His rationale was that oil has “brought the prospects of a higher quality of life closer to our households and neighbourhoods. It is a momentous event which we should commemorate for perpetuity”.But exactly how would he deliver the previously promised “good life” prospects, which died stillborn after 2015? Take, for instance, his promise that his APNU/AFC Government will unveil a ‘Decade of Development, 2020-2029’ (DoD) plan. Why are the Guyanese people to believe this new promise in light of the Government’s callous disavowal of their previous promises? Take the boast that “first oil” has arrived ahead of schedule, meaning that “boat gone a watah” on most of the local content that could have been provided to the upstream activities. The Government has still not approved a Local Content Policy (LCP) document – even three drafts have been circulated and the last one has been trenchantly criticised by several stakeholders.The PNC Government has clearly missed the connection between “local content” and any “Decade of Development Plan” (DDP) they might want to unfurl. If the latter had been drafted during the past five years, specific skills and other needs would have been identified and these would have given the Department of Energy (DoE) a focused input in the local content plans the energy operators have to submit annually for approval. A mundane example would have been the need for high-quality welders that are presently needed in the O&G upstream activities: these are also even more critical in the infrastructural development that would underpin any DoD plan.  As it is, the LCP, if it even gets approved, might be tantamount to closing the valve after all the oil has been shipped.The Government has also sent an ominous signal by the opaque manner in which it went about selling Guyana’s share of first oil. The Department of Energy, run by Granger’s handpicked environmentalist, insisted on arbitrarily choosing the trading companies rather than instituting an open bidding process while offering a hare-brained rationale that even the Auditor General opined made “no sense”. The Director of Energy said that the companies selected had “refining capabilities” and would be capable of assaying the production so that the price of our oil could be established vis a vis the Brent benchmark already selected for our “light and sweet” crude.This literally made no sense since there are established assaying companies used by the industry that routinely perform this assaying function and are standard in the industry. The lack of transparency does not just fail the smell test for possible corruption that has characterised so many other new oil-producing states but also highlights the absolute cluelessness of those who have been handpicked by Granger to run the Petroleum Sector. We are still reeling from his selection of Raphael Trotman to negotiate the first Petroleum Sharing Agreement (PSA).Then, there is the Natural Resource Fund (NRF) Act 2019 – our “Sovereign Wealth Fund” which Granger boasted about. He persists in refusing to accept that this was rushed through the National Assembly in the absence of the Opposition, right after the NCM was passed. And that the Opposition Leader has rightfully refused to accept it as valid since it was passed against all the parliamentary conventions relating to permissible actions by a caretaker administration.Even Granger accepts, from his comments, that the effects of the NRF not only impact all Guyanese today but also future generations. As such, it needs the widest possible legitimacy, especially in a country such as ours where even when the PNC-led coalition was not a caretaker government, it held a razor-thin majority.last_img read more

Peter Cole Jibes Fans on April Fool’s Day

first_imgIt sounded like a shock on Facebook when international Liberian artist Peter Barchue Cole announced that he was retiring from music.“Loyal and royal fans,” Cole posted on his Facebook timeline, “it is with great regret that I announce my retirement and retreat from the music scene after many years of reflection and depression. I know I’m letting a lot of you down but this move is necessary for me to regain my sanity and reinvent a new direction in the face of major life changes I have had recently.” This post brought mixed reactions from his fans. Aristotle Guweh did not buy it. “Good to know that this is the month of April,” he commented.Theresa Tylers said, “Come on Peter you just kidding?”And later when his fans realized that Peter Cole was just kidding, Georgia Gwolyee Teah wrote, “You got me scared.”“You almost got me on my neck,” Lucan Dian Sonii, said.Cole later replied, “I’m counting on your support, love and understanding as always. The storm will be over and you’ll get the trick.  Happy month of April and wait for the next single coming soon.”  Though he did not disclose any details about the theme or style of the up-coming single, the “April Fool’s Day” stunt was no doubt a clever move to create buzz  about what’s coming up next for the musician.Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)last_img read more