Tag: Telecommunications

  • A gigabit milestone for mobile networks

    A gigabit milestone for mobile networks

    Yesterday communications vendors Qualcomm, Netgear, Ericsson and Telstra, unveiled their Australian gigabit LTE service that gives users high speed internet connections over the 4G mobile network.

    Billed as a world’s first, Telstra will offer customers the Netgear supplied hotspots that can connect up to twenty devices over WiFi.

    Listening to the Telstra spiel yesterday, it wasn’t hard to conclude the company is making a pitch for the market frustrated by the National Broadband Network’s tardy rollout and patchy service.

    The service doesn’t come cheap though, as Finder’s Alex Kidman points out, an hour’s movie streaming on one device could easily cost $4500 dollars on Telstra’s current plans with one of the company’s executives emphasising the product is “aimed at the premium end of the market.”

    Being aimed at the premium end of the market is shame for Qualcomm as their spokespeople were keen to show off the gaming, AR and VR potential of the Snapdragon CPUs driving these devices. It would be a brave or very affluent family that bought one of these devices for their kids given the data costs.

    While the Telstra Gigabit LTE service might be an NBN replacement for deep pocketed customers, telco veteran John Lindsay points out the mobile network can’t support too many people doing so unless many more cells are deployed.

    For the moment the Telstra service is going to be attractive for companies needing high speed. low volume connections in the central business district and as the gigabit LTE upgrades roll out across the country, it will be useful for travellers as well as frustrated NBN customers.

    Ultimately the gigabit LTE product is another step toward the 5G networks that we’ll be seeing appear at the end of the decade, something that both the Ericsson and Telstra PR folk were keen to highlight.

    The key message for consumers and businesses is the rate of innovation in the mobile communications market is not slowing and another generation of connected devices is coming that will change things as dramatically as the smartphone did.

    Similar posts:

    • No Related Posts
  • Telecommunication’s lost tribes

    Telecommunication’s lost tribes

    This week saw Australia’s telecommunications industry gather for the annual Comms Day Summit at Sydney’s Westin Hotel.

    A constant in the telco industry is change and new technology – few industries have had to reinvent themselves in the same telephone companies have had to over the last 30 years.

    For telcos, that period of change has been immensely profitable as the switch to mobile networks proved to be a river of gold for the industry as consumers enthusiastically moved away from fixed line networks and into lucrative products like SMS services.

    Missing the passion

    So it was notable how the Comms Day summit was missing a sense of excitement or vision about the approaching opportunities such as 5G networks, the Internet of Things and other new markets. Much of the conversations were mainly focused on the dysfunctional Australian industry and the flawed regulations that got it to where it is.

    As an Australian event it’s not surprising that much of the focus would be on domestic failings – thirty years of misguided policy, political opportunism and schoolboy ideologies have left the nation facing the prospect of the “world’s most expensive broadband”  in the words of Megaport founder Bevan Slattery – however the stasis in the telecoms sector betrays a far deeper uncertainty in the global industry.

    That uncertainty was on show at this year’s Mobile World Congress in Barcelona where most of the conference’s buzz was around virtual reality headsets and connected cars, areas where telecommunications providers are, at best, a ‘dumb pipe’.

    We are not a utility

    Being relegated to being a ‘mere utility’ is the fear of every telecommunications executive, which is why they spend so much on abortive Pay-TV, online and sports rights acquisitions. In the Australian context, Telstra’s acquisition of PacNet and Slattery’s own East Asian ventures are possibly the most interesting developments in the local industry yet they were barely mentioned at the Comms Day event.

    While the Comms Day Summit told us much about the insular nature of modern Australian business – and the depressing mess three decades of poor regulation has left the local telecommunication industry – the bigger message is the global communications industry is struggling in a world of commoditised bandwidth where the opportunities to make huge profits is not immediately obvious.

    It’s hard to see how telcos can be completely disrupted in the way media companies have been given how regulated their markets are – although the same was being said of the taxi industry five years ago – but it is clear their managements are struggling to find new business models.

    Similar posts:

  • Software ate the demonstration centre

    Software ate the demonstration centre

    Yesterday Australian incumbent telco Telstra took the media on a tour of its showpiece  Customer Insights Centre in downtown Sydney.

    The company is justifiably proud of the facility that includes  a 300 person auditorium, broadcast quality TV studio, a restaurant, workshop and collaboration spaces.

    Welcoming visitors is the centre’s Insight Ring, a nine metre circle-shaped platform that surrounds guests with digital insights mined from Telstra’s information services. Leading off the reception area are a range of displays showcasing the company’s products and capabilities including wearable technologies, 3D printing and Ged The Robot.

    Marking the centre as a modern facility the display spaces where Telstra and its partners can show off technologies to industry bodies and prospective clients.

    Ged, the Telstra robot
    Ged, the Telstra robot

    The previous space two floors higher in the building was beginning to show its age after seven years and the fixed displays of technology in the older facility dated the centre, something that’s a disadvantage in an industry changing as quickly as telecommunications.

    In the new centre, the demonstration facility is largely screen based so displays can quickly be adapted to show off the technologies aimed at whichever industry they are pitching.

    The fast moving technology world
    The software driven demonstration centre

     

    Andy Bateman, Director of Segment Marketing at Telstra, who lead the tour was proud to show off the current display that had been set up to showcase the company’s banking products.

    telstra_client_demonstration_consumer_insights_centre

    Bateman described how the facility can be quickly altered to suit the needs of specific demonstrations, this was a degree of flexibility missing in the PayPal innovation center in San Jose, which is more comprehensive in its displays but requires a major fit out to change anything.

    Venture capital investor Marc Andreessen stated that software will eat the world, Telstra’s Customer Insights Centre illustrates this starkly.

    However software doesn’t always have the upper hand, just opposite the Telstra centre is the Sydney City Apple Store. In some ways, the two facilities opposite each other illustrate one of the big technological and market battles of this decade.

    View of the Apple Store from the Telstra Centre
    View of the Apple Store from the Telstra Centre

    For most businesses, software will define the future way of working but for the smart hardware vendors will still be making good money.

    Similar posts:

  • Preparing for the mobile data explosion

    Preparing for the mobile data explosion

    Late last month Cisco Systems released its annual Visual Networking Index that tracks the company’s predictions for the growth of global network traffic over the upcoming five years.

    It’s no surprise this year’s report predicts global data traffic will grow at over fifty percent compounded each year with Cisco expecting 24.3 exabytes to be pushed around the world’s networks each month by 2019.

    Most of that network traffic will come from tablet and smartphones with Cisco predicting data use will grow by up to a factor of five on those devices with devices like wearables growing fourfold.

    This growth creates a challenge for telcos as they invest in capacity to deal with the increased traffic and Cisco sees half of all smartphone connections will be handed off to WiFi networks by the decade’s end.

    Summary of Per-Device Usage Growth, MB per Month

    Device Type

    2014

    2019

    Nonsmartphone

    22 MB/month

    105 MB/month

    M2M Module

    70 MB/month

    366 MB/month

    Wearable Device

    141 MB/month

    479 MB/month

    Smartphone

    819 MB/month

    3,981 MB/month

    4G Smartphone

    2,000 MB/month

    5,458 MB/month

    Tablet

    2,076 MB/month

    10,767 MB/month

    4G Tablet

    2,913 MB/month

    12,314 MB/month

    Laptop

    2,641 MB/month

    5,589 MB/month

    Source: Cisco VNI Mobile, 2015

    Handing half the growth in mobile traffic over to Wi-Fi connections, most of which will be connected to fiber or ADSL services will provide challenges for fixed line operators as well who will see the demand for capacity also explode over the rest of the decade.

    Much of this explains the moves by companies like Telstra to roll out public Wi-Fi services to start locking users into their services. It also gives them, and consumers, an opportunity to understand how networks that mix both cellular and Wi-Fi behave.

    Cisco_M2M_connections_to_2019

    Another aspect of the Cisco VNI survey is the Internet of Things which is going to see exponential growth as industrial and household devices start being connected either directly through the telco networks, across unlicensed radio spectrum or over private Wi-Fi systems.

    While Cisco predicts the bulk of that traffic as being generated by smartphones, the company sees connected devices as growing by 45% per year over the next five years with 3.2 billion sensors connected to the internet by the end of the decade.

    Cisco-2015-VNI-M2M-connections

    Notable in the prediction that Low Powered Wide Area (LPWA) networks – non cellular systems mostly operating in the unlicensed spectrum used by Wi-Fi networks – will provide nearly a third of the connections by 2019. At the same time we can expect many M2M deployments to consolidate traffic locally with much of the data processing down locally before the residual information being passed up the network.

    As usual the Cisco VNI report underscores, and possibly understates, the growth in mobile data usage we’re going to see over the rest of the decade. For businesses, it’s time to plan for managing both the flow and application that smart devices are going to generate in our daily operations.

    Similar posts:

    • No Related Posts
  • Towards the future mobile network

    Towards the future mobile network

    What will the next generation of smartphones look like? Earlier this week the GSM Association released their roadmap for the future 5G network standard, the next generation of mobile communications that will start appearing towards the end of this decade.

    The GSMA is the peak global telco industry body which includes amongst its membership most of the world’s telephone companies and the vendors who manufacture the network equipment, so the organisation’s view is a good representation of the industry’s long term vision.

    Much of the future standard is actually an amalgam of existing technology and concepts such as heterogeneous networks where phones and mobile internet of things devices can switch from the phone network to private WiFi systems without users noticing the handover.

    The GSMA sees eight main areas for the 5G standards;

    • data rates of 1Gbps down
    • latency of less than one millisecond
    • network densification in determining base station locations
    • improving coverage
    • making networks more availabile
    • reducing operating costs
    • increasing the field life of devices.

    That latter point is particularly pertinent as battery life remains a major concern for smartphone users and getting power to internet of things devices is one of the greatest barriers to adoption.

    With the 5G standard not expected before the end of the decade, it’s hard to imagine how much technology may have changed in that time, something the GSMA acknowledges; “Because 5G is at an early stage there may be many use cases that will emerge over the coming years that we cannot anticipate today.”

    The report though does try to anticipate some of the applications we may see the 5G standard driving such as autonomous vehicles, cloud based offices and augmented reality technologies. All of these though are advancing rapidly under the existing fixed line, 3G and 4G telco networks.

    For the moment rolling out the 4G standard remains the industry’s main game with the existing technology only making up five percent of the world’s mobile connections at present. This is the area the GSMA sees as being the big opportunity over the rest of the decade.

    In another report the GSMA claims the 4G rollout in Europe, currently at less than 10% of connections but expected to be over half by 2020, will drive economic growth on the continent.

    The mobile industry is playing a central role in supporting economic activity and recovery in the region, contributing 3.1 per cent to Europe’s gross domestic product (GDP) in 2013, equivalent to EUR433 billion4, including EUR105 billion generated directly by mobile operators. By 2020, it is estimated that the industry will generate a total economic value of EUR492 billion.

    There’s no doubt telecommunications networks are to the 21st Century what the highways were to the Twentieth and the railways to the nineteenth. As with the construction of previous century’s networks one of the big challenges will be raising the capital to build the systems and making wise investment choices.

    For the developing world raising the capital required for those networks might be the hardest task of all, however for those countries and regions not making the investments may leave them further behind the western nations than they are today.

    Ultimately what eventually is included in the 5G standard will reflect many of the political and economic realities of the next five years; no international standard is free from political or commercial influences during its drafting. The job for the standards bodies is not to get left too far behind market or technological advances.

    In describing a vision for the sector’s future the GSMA 5G report lays out many of the opportunities and challenges facing the telecommunications industry over the rest of the decade. With these technologies becoming the centre of our working and home lives, what happens won’t just determine what smartphone we own in 2020 but the shape of our societies.

     

    Similar posts:

    • No Related Posts