A week in telecoms: UK quantum trials, SK Telecom, Telstra, 5G in Uganda

Quantum security trials

BT and Vodafone Group separately announced quantum computing developments this week as they work on initiatives to ensure customers are protected in the quantum computing era.

Vodafone recently joined forces with SandboxAQ, a spin-off from Alphabet, to conduct a proof-of-concept test for a quantum-safe virtual private network (VPN).

The test was conducted using standard smartphones, connected to the VPN, that had been specifically adapted by Vodafone and SandboxAQ using cryptography algorithms from The National Institute of Standards and Technology (NIST).

Vodafone pointed out that while fault-tolerant quantum computers are able to undertake far more complex processing tasks than a traditional computer, they also pose a risk.

Emma Smith, Cyber Security Director at Vodafone, said: “On one hand quantum computing has the potential to rapidly solve ultra-complex problems in key areas such as healthcare, but on the other it could undermine today’s cryptography.”

Vodafone is therefore exploring and trialing new algorithms to provide protection for customers against possible quantum-empowered attackers in the future.

Meanwhile, BT said HSBC has become the first bank to join its trial of a commercial quantum-secured metro network in partnership with Toshiba.

The commercial trial combines the metro network with Toshiba’s Quantum Key Distribution (QKD) technology and edge compute services from AWS.

Howard Watson, Chief Security and Networks Officer at BT, said it’s critical that the CSP ensures its digital infrastructure remains secure against new quantum-based threats.

“This trial enables global industry partners to collaborate on the next era for network security. We look forward to co-innovating to develop and prove further use cases, demonstrating the power of quantum communications in the UK and worldwide,” Watson said.

Both BT and Vodafone have been working on quantum technologies for some time, but customers are now increasingly aware of the threats and opportunities that quantum computing presents, while investment in quantum technology spiked in 2022.

5G SA expands in Spain, arrives in the UK

Two European CSPs provided some welcome news for proponents of standalone 5G (5G SA) networks.

Vodafone UK, which has been carrying out trials of standalone technology for some time, announced the launch of what it describes as the first consumer 5G SA launch in the UK market under the 5G Ultra brand.

The service is initially available in London, Manchester, Glasgow and Cardiff on the Samsung Galaxy S21 and S22 smartphones. More locations and devices are promised “soon.”

Telefónica Spain, meanwhile, has opted for 5G+ as its 5G SA branding and said the service is now available in around 700 locations on compatible Xiaomi smartphones. The CSP is targeting 1,000 locations by the end of the year, underpinned by its 3.5GHz spectrum, and said 5G SA currently covers 11 cities: Madrid, Barcelona, Malaga, Seville, Palma de Mallorca, Las Palmas de Gran Canaria, Ávila, Segovia, Castellón, El Ferrol and Vigo.

Orange Spain was the first to launch 5G SA in the nation, while Vodafone also offers 5G SA in Germany.

Broadly, 5G SA network launches are still relatively scarce worldwide, and with good reason. It is no easy task shifting to a 5G core network that no longer relies on the existing 4G core for traffic support.

According to the May 2023 report from the Global mobile Suppliers Association (GSA), 35 operators in 24 countries and territories “are now understood to have launched or deployed public 5G SA networks.” About 240 service providers have launched commercial 5G services including the non-standalone version, said the recent Ericsson Mobility Report.

Airtel and MTN win 5G spectrum in Uganda

Uganda became the latest country to complete an auction of 5G-capable spectrum, allocating frequencies to two CSPs although three failed to win any at all.

The Uganda Communication Commission (UCC) announced that it awarded 5G spectrum to MTN Uganda and Airtel Uganda. MTN won frequencies in the 700MHz, 2.3GHz, 2.6GHz and E-band (71GHz-76GHz/81GHz-86GHz) ranges, while Airtel gained 800MHz, 3.5GHz and E-band frequencies. The licenses come with a number of coverage and data rate targets.

According to TeleGeography, both MTN and Airtel have said their networks are 5G-ready, and a commercial launch can be expected as soon as licenses become valid. Uganda Telecom Limited (UTL), Lyca Mobile and Ala Technology (trading as Intracom) were unsuccessful in the auction.

Uganda relies heavily on mobile technology. According to the 2022 market update from UCC, total fixed and mobile subscriptions reached 33.2 million by the end of the year, of which of 33.1 million were mobile and 117,000 fixed subscriptions.

In the 12 months ending December 2022, the industry recorded a net addition of 2.9 million new mobile subscriptions, representing a 10% increase. National tele-density in mobile subscription terms now stands at 77 lines out of every 100 Ugandans. Total internet subscriptions crossed the 25 million mark and the national penetration rate is 60%.

SK Telecom takes conversational AI tool to the next level

CSP diversification strategies are not always successful, as recently demonstrated by Orange’s decision to offload its banking unit. But CSPs continue to make forays into new areas in order to drive new revenue streams.

South Korea’s SK Telecom (SKT) has been particularly active here as part of efforts to transform itself into an AI specialist by combining AI solutions with connectivity technologies. It has also been promoting AI transformation through partnerships and collaboration with AI companies.

This week, SKT announced that it has released a major overhaul of its AI service, ‘A.’, pronounced A dot, to enable customers to “enjoy various content based on personal tastes and preferences.”

As well as improving features available to customers on the screen, SKT has added a chatroom and a ‘Chat T’ to ‘A.’, using the ChatGPT model of Microsoft’s Azure OpenAI service. By asking ‘Chat T’ questions, users can receive rich and informative responses beyond simple answers, SKT said. The CSP also upgraded its own large language model (LLM).

Furthermore, through a joint development project with Scatter Lab, an AI startup known for the Lee Lu-da chatbot, SKT introduced AI agents named ‘A. friends’.

Kim Yong-hun, Vice President and Head of AI Service Business Office at SKT, said the aim is to enable “more customers to feel comfortable and enjoy using our conversational AI. We will continue to evolve ‘A.’ into a service that can help customers in their daily lives in all kinds of ways.”

Cellnex takes control of OnTower Poland

M&A activity in the towerco sector has settled down somewhat after a hectic period that saw many tower assets change hands, with some spun out into separate joint ventures and others acquired by independent infrastructure companies.

Cellnex has been particularly active in recent years and now manages a portfolio of around 135,000 sites, including forecast rollouts up to 2030. The company recently acquired the 30% of OnTower Poland that it does not already own for about €510 million, taking its ownership to 100%. The Polish towerco was set up by Cellnex and Iliad in 2021 as part of Cellnex’s acquisition of about 7,000 sites from Iliad-owned mobile operator Play in Poland.

OnTower Poland currently operates a total of 8,500 sites in Poland and plans to deploy up to about 3,400 new sites by 2030. It has agreed a 20-year service provision contract with Play, extendable for additional successive 10-year periods.

Cellnex also acquired Polkomtel Infrastruktura in 2021, gaining a further 7,000 towers, voice and data transmission equipment, 11,300 km of fiber backbone and fiber-to-the-tower backhaul, and a network of microwave radio links.

Cellnex now owns and operates towers in Spain, Italy, the Netherlands, France, Switzerland, the United Kingdom, Ireland, Portugal, Austria, Denmark, Sweden and Poland. The company stands out because of its publicly expressed interest in being “an augmented towerco” and providing shared active radio access network (RAN) infrastructure.

Telstra hooks up with Starlink

Australian CSP Telstra is partnering with low-earth orbit (LEO) satellite company, Starlink, which is operated by the SpaceX group owned by Elon Musk.

In what it is claiming as a world-first offering, Telstra signed a mobile service agreement with Starlink and plans to offer voice and broadband services to customers in regional and remote parts of Australia. The products will be available by the end of 2023. Telstra also recently signed a satellite backhaul agreement with LEO provider OneWeb and provides ground infrastructure for Viasat.

Telstra’s move reflects the growing desire of CSPs to reach customers in far-flung areas of their territories, where fiber and even mobile technologies cannot reach. The CSP is not the first to join forces with SpaceX, which this year plans to start testing a new service with T-Mobile USA to bring satellite connectivity to mobile phones.

Indeed, a recent report from MTN Consulting highlighted that satellite operators provide enormous opportunities and benefits for CSPs.

Arun Menon, Principal Analyst at MTN Consulting, noted that the potential offerings of satellite operators, particularly direct-to-device and IoT, “allow telcos to optimize their infrastructure investments (capex and opex) for deployments in areas with limited coverage or cellular dead zones. Another plus for telcos is the enhanced customer experience supplemented by a network providing ubiquitous coverage.”