Quarterly Insights on Bridge Member Operators: 3Q2024

Hi everyone

It has been a happily frenetic past few months for us. The preceding quarter, 3Q2024 saw Bridge Alliance getting the most extensive media coverage in years, given our many announcements. First, a warm welcome to Deutsche Telekom, which joined us as a member by way of DT IoT, extending our footprint to Europe. In the area of GPU-as-a-Service (GPUaaS), Bridge Alliance and Singtel entered into a partnership to bring Singtel’s GPUaaS offerings to enterprises, with AIS, Maxis and Telkomsel among the first Bridge Member Operators (BMOs) to offer it in their markets.

We also announced our Bridge Alliance API Exchange (BAEx) powered by Singtel’s Paragon orchestration platform, that has already received the support of 13 our of member operators and onboarded V-Key and Unmanned life as the early enterprise customers. BAEx offers customers a single integration and contract and is now providing Silent Network Authentication APIs such as Number Verify and SIM Swap, which tap on telco real-time data for use cases with mobile authentication and fraud prevention needs.

There continues to be growing optimism about the potential of AI. The telecoms world is continuing its active exploration of ways to use AI to transform networks, operations and customer experience. However, there is still uncertainty about which AI opportunities to pursue: should telcos prioritise cost consolidation over revenue generation? Quoting an STL Partners survey, when asked to indicate the main driver for AI adoption, majority came out overwhelmingly in favor of cost over revenue. It seems clear that AI technology has tremendous potential to reshape all aspects of a telecom company’s business.

However, as operators continue to increase investments in AI, they need to avoid getting caught in the quicksand of endless proofs of concept. Our white paper, launched recently with Kearney,  sheds some light on how APAC telcos are grappling with the challenges of AI and what it will take to generate impact from it.

Thanks to those who attended, in-person or virtually, our mega edition of the Bridge Alliance CXO Forum 2024 on 17 October which also marked 20 years of Bridge Alliance. The theme was “Celebrating the Trailblazers”, and we did exactly that; celebrating the operators, partners, and friends who contributed to our journey. We are no longer in the presence of traditional telecom companies: the message that came speakers sharing their success stories on stage is that these senior executives are in the process of reconfiguring (reinventing?!) their companies, forging new ecosystems, focusing on creating new opportunities, and are aware of the potential pitfalls. There is a proud urgency for new approaches if these telcos are to endure in the long term.

Check out what happened at CXO Forum 2024  if you missed it! And read on for more on what else has been up with our BMOs.

Cheers

Bridge Alliance Research and Analysis Team

 

IoT/M2M/Enterprise Mobility

The IoT market is expected to continue its growth path, as both cellular IoT connections and the IoT connectivity revenues are expected to continue growing in the years ahead. Although IoT remains one of the top priorities for telcos globally, AI has really taken over as the top technology priority for telcos. The growth of AI is expected to have a strong positive effect on the IoT market, as companies are racing to integrate AI solutions in the IoT domain. 

Among the BMOs, there were some interesting announcements: Telkomsel Enterprise, together with PT Toyota-Astra Motor, a leader in the automotive industry, are presenting the latest telematics technology innovation solutions – IoT Connected Car and In Car WiFi – integrated into the T Intouch feature in the Toyota New Fortuner series.

Telkomsel continues in its drive to use its IoT and connectivity solutions to enhance the EV ecosystem’s efficienty. Telkomsel and PT Mobil Anak Bangsa Indonesia (MAB) signed an MoU which will combine Telkomsel’s latest mobile technology solutions with MAB’s excellence in providing electric vehicles and their supporting infrastructure.

China Telecom and China Unicom have renewed multi-year framework deals with China Tower to prepare for a surge in demand for IoT monitoring data and data analysis services related to the latter’s “Smart Tower” business segment.

China Unicom unveiled 3 AI-driven products of the Internet of Vehicles; they comprise three flagship offerings built on the company’s AI model — ZhiYu, ZhiLue and ZhiTu. It has also introduced the China Unicom Vehicle Life Index, spanning 36 user life cycle metrics like cabin preferences and vehicle activity to support automakers across research, sales, service and operations.

Deutsche Telekom IoT has joined Bridge Alliance. Deutsche Telekom is the first European member operator in our footprint and our partnership aims to provide a launch pad for both electric vehicle OEMs seeking connectivity globally beyond Asian shores and European automakers looking to expand their connected car business in Asia Pacific.

In the latter half of FY2024, MONET Technologies Inc.—a joint venture with SoftBank Corp. Toyota Motor Corporation and other Japan-based automotive manufacturers—plans to launch an autonomous mobility service that will run on the public roads of Tokyo Waterfront City. The service will use Level 2 self-driving, under which the vehicle controls steering, acceleration and deceleration while a human sits in the driver’s seat if there is a need to take over control.

Over in Kuwait, stc is to supply 500,000 smart electricity meters to the Ministry of Electricity, Water and Renewable Energy (MEW) for the second phase rollout. This initiative, which is expected to lead to a nationwide rollout by around mid-2025 aims to facilitate efficient energy consumption, the streamlining of operational processes and enhancement of the sustainability of the nation’s energy infrastructure.

In Germany, robots and AI could soon be making city centers cleaner. Deutsche Telekom and the robotics specialist Capra from Denmark demonstrated Robot Butty which not only collects litter but also could transport or deliver items in industry and logistics. Deutsche Telekom has concluded roaming agreements with 600 partners worldwide for this purpose. Companies such as Intelsat and Skylo supplement the connection with satellite radio. The autonomous technology thus uses a global network on land, water and in the air. 

Taiwan Mobile is accelerating its progress toward the RE100 (Renewable Energy 100) initiative. Following its entry into the EV100 (Electric Vehicle 100%) in May this year, the company has announced its investment in WeMo Scooter, a leading electric scooter-sharing provider. This initiative aims to accelerate the adoption of shared electric vehicles and promote the electrification of transportation across the country.

 

5G and Innovation

As telcos experience pressure on their financial performance and KPIs, new revenue streams need to be identified that surpass their core offerings. Telcos are investing, going beyond telco apps and fixed mobile convergence offerings. In Q3, the announcements by the BMOs are reflective of a broad range of innovation.

Singtel and SK Telecom announced that they have signed a MoU to collaborate on building next-generation telecommunications networks that will drive innovation, improve network performance and security and deliver enhanced customer experiences over the next two years. The partners will explore the use of AI, orchestration tools, and deepen the domain knowledge of network virtualisation and other technologies – central to laying the necessary building blocks for progressing to 6G. 

Stc Group said in July that it achieved a groundbreaking milestone, deploying the world’s first implementation of Automated Radio Resource Partitioning (RRP) on a 5G standalone network slice during a demonstration. Automated RRP is a cutting-edge software feature, based on intent-based automation, that involves the dynamic and intelligent allocation of radio resources to different configured slices to optimize network performance.

Singtel announced two months later that it had achieved a first in commercial deployment of the same at the 2024 Singapore Grand Prix Formula 1 event. Automated RRP also simplifies the complexity of network management for enterprise customers and is particularly beneficial for mission-critical applications.

To meet spectrum needs, Airtel announced that it has started re-farming its existing mid-band spectrum to accommodate the growing traffic demand on its 5G network. With more customers moving to the 5G network, Airtel is re-farming its mid-band spectrum to expand 5G services on its 1800, 2100, 2300 MHz bands across the country to enable customers to enhance browsing speeds in addition to improved indoor coverage. Meanwhile, Airtel also successfully completed a 5G non-standalone (NSA) Cloud RAN trial with Nokia.

In Malaysia, Maxis has partnered with Singtel to introduce Malaysia’s first all-in-one platform for 5G network, edge computing, cloud and services orchestration, built on Singtel’s Paragon for telco networks. The platform will make 5G-Advanced (5G-A) and 5G technology, edge and multi-cloud computing more accessible to Malaysian businesses and accelerate digital transformation across various verticals such as manufacturing, logistics, healthcare and public services. Meanwhile, Maxis also inked an agreement with China Mobile International, which establishes a strategic partnership aimed at accelerating 5G initiatives and leveraging the combined strengths of both companies to foster innovation and drive growth in the telecommunications sector.

In Japan, SoftBank Corp. and Intelsat signed a groundbreaking collaboration agreement that will lead to the launch of a single “Ubiquitous Network” enabling customers to stay connected everywhere they go. SoftBank and Intelsat will jointly lead research and development of seamless 5G connections between terrestrial mobile networks and satellite communications networks. In the same vein, PCCW Global in Hong Kong and GalaxySpace, a private Chinese commercial space company, are exploring a new collaboration to provide low-Earth-orbit (LEO) satellite services to international markets, with an initial focus on Hong Kong and countries along the Belt and Road.

There are increasingly industry movements and collaboration to accelerate adoption of telco/network APIs for innovation. Besides the GSMA Open Gateway and our earlier-mentioned BAEx, some of the world’s largest telecom operators, including América Móvil, AT&T, Bharti Airtel, Deutsche Telekom, Orange, Reliance Jio, Singtel, Telefonica, Telstra, T-Mobile, Verizon and Vodafone, together with Ericsson are announcing a new venture to combine and sell network APIs on a global scale to spur innovation in digital service.

Singtel signed two MoUs with AIS and Maxis, to enable network-based authentication for mobile subscribers in Thailand and Malaysia through SingVerify, a suite of solutions that authenticates digital identities registered on consumer services or platforms against telco data. Developed by Singtel, SingVerify, is based on telco APIs that are interoperable and based on GSMA’s common framework of industry standards and protocols. This marks the first-ever international federation of Telco API in the world.

In South Korea, the three major telcos have decided to join forces to standardize the domestic mobile communications ecosystem to global common standards and accelerate digital innovation in the industry. SK Telecom announced that it signed an MOU with KT and LG Uplus for joint development and commercialization of the ‘Network Open API’ standard in the domestic telecommunications sector.

Deutsche Telekom is supporting the publicly funded “AutoLog” project in the port of Emden with two innovations from the Group. The aim is to automate and make workflows at automotive terminals more efficient. To this end, Deutsche Telekom is contributing two new technologies: the 5G network with a special connection (network API) and an edge data center for fast data processing on site. Together with its partners Volkswagen Group Logistics, the “Bremer Institut für Produktion und Logistik” (BIBA) and software expert Unikie, new and efficient storage and logistics solutions with automated driving are being developed and tested at the Volkswagen plant in Emden.

 

AI

Still a top priority for the industry, operators continue to investing in multiple AI use cases. The pressure for telcos to rapidly adopt AI is intensifying, but they have to balance a fine line between charging ahead to avoid being left behind, while avoiding investing too much money/resources in the ‘wrong’ use cases.

The GSMA has launched an industry-wide Responsible AI (RAI) Maturity Roadmap to provide telecoms operators with the tools and guidance to test and assess their responsible use of the technology.  Early BMOs supporting the initiative include Deutsche Telekom, Globe, Singtel and stc.

In Q3 SK Telecom was among the most active BMOs in AI. SKT is working with Perplexity, an AI-powered answer engine to lead a paradigm shift from traditional keyword search to ‘conversational’ search through AI. SKT’s AI service ‘Adot’ is undergoing a large-scale service reorganization to transform it into an AI personal assistant that helps with everyday convenience.

SKT will  open an AI data center in Seoul in partnership with US GPUaaS company Lambda. The two companies agreed to establish a large-scale NVIDIA GPU cluster to support AI cloud business opportunities in South Korea. Separately, SKT, has also inked agreements to supply its AI-based veterinary diagnosis assistant ‘X Caliber’ to Malaysia, Thailand and Vietnam. It is also launching the AI-based ‘Vision AI Care’ project as the ‘CareVia’ service. CareVia uses AI technology to analyze the challenging behavior of people with developmental disabilities and provide professional care support to their families.

SKT is not the only one expanding GPU capacity – Singtel and GMI Cloud, a pioneering AI-native GPU cloud platform, have announced a strategic collaboration to expand GPU capacity in the US and Asia Pacific to accelerate AI adoption. Singtel is partnering Nscale to do the same in Europe and Southeast Asia, and has signed an MoU with Hitachi to collaborate on next-gen data centres and GPU Cloud in Japan and potentially the APAC region under the lead of Singtel’s Digital InfraCo unit. And we have teamed up with Singtel to bring its GPUaaS offerings to the region, starting with Thailand, Malaysia and Indonesia so enterprises can accelerate their AI use.

China Telecom Global has launched its Artificial Intelligence Innovation Center and Security Business Innovation Center in Hong Kong, while stc signed a cooperation agreement with the Research, Development and Innovation Authority to establish the stc Group AI Lab amid a slew of other AI agreements inked at the Global AI Summit in Riyadh.

In India, Airtel launched the first AI-powered network solution for SPAM detection, a free tool that will alert customers in real-time to all suspected spam calls and SMSes.

In Japan, SoftBank Corp, ANA Holdings In and avatarin Inc have announced a new partnership to create industry-specific customer service solutions using AI, 5G, and robotics technologies amid growing human resource challenges. Avatarin and SoftBank will focus on developing and advancing multimodal AI agents to increase customer engagement at airports and other public facilities by aggregating and analysing professional human skills data.

BMOs are making investments in AI-driven firms for long term AI advancements. Besides SoftBank investing in avatarin, and SKT investing in Perplexity,  SKT also invested in US-based Smart Global Holdings, while Taiwan Mobile has invested in Systex Corporation.

 

Private Networks

Although 4G remains the dominant technology, if we look at the current announcements, they are all based on private 5G. This is a promising development, because in the past interest in private 5G was high but limited device availability and costs have always held back adoption.

Deutsche Telekom and Telkomsel are installing private 5G networks. DT has been working on a ‘Smart Vineyard’ in the Moselle region, funded by the Federal Ministry for Digital and Transport, to help preserve a 2,000 year old winemaking tradition. DT is also equipping the Merseburg University of Applied Sciences with the first 5G campus network in the state, that will enable the university to research 5G applications, such as autonomous driving, logistics applications, applications for the healthcare sector or AR.

In partnership with Huawei, Telkomsel launched the first deployment of 5G standalone technology in Indonesia supported by mobile private networks in a Smart Port use case.

 

Edge/MEC

The number and type of edge computing devices and deployments are expanding.

AI has needed the power of cloud computing to handle the vast amounts of data it processes, but sending data from endpoints to the cloud requires high bandwidth, drives up networking costs and creates latency issues; hence AI is moving from cloud services towards the edge.

SK Telecom successfully completed a demonstration of a autonomous driving robot technology based on its Telco Edge AI infrastructure. SKT had autonomous robots perform various tasks based on the Telco Edge AI infrastructure built in its headquarters. It used advanced AI technology to process various information received by the robots moving through the complex interior of the headquarters using sensors such as cameras and IMUs (Inertial Measurement Units), and verified related robot technology and ultra-precision positioning technology.

 

Cloud

The future of 5G telco cloud is promising, with the integration of edge computing, network slicing, AI, and enhanced mobile broadband driving the adoption of 5G technologies across various sectors.

Q3 saw a handful of announcements from BMOs. Maxis is set to accelerate cloud adoption leveraging the AWS infrastructure Region in the country. Through Maxis Business, customers can leverage cloud capabilities, as local data residency will facilitate seamless and secure migration of their data and workloads to the cloud.

AIS wil deploy Oracle Alloy and launch AIS Cloud, Thailand’s first locally owned and operated hyperscale cloud. Oracle Alloy will provide AIS’ customers access to 100+ Oracle Cloud Infrastructure (OCI) services.

In Japan, SoftBank Corp and BBIX, Inc. will launch “SaaS Connection” for Open Connectivity eXchange, a cloud-based network service which enables the use of various SaaS offerings. SB Technology Corp. will also begin handling “Cato SASE Cloud,” a cloud service that integrates network and security functions provided by Cato Networks Ltd., as well as providing operational support for Cato SASE Cloud, as a new addition to its security service product lineup.

In Indonesia, a collaboration between Telkomsel and IDSurvey will result in a new era for the Indonesian maritime industry through the launch of the Maritime Cloud Platform (MCP), where Telkomsel Enterprise will provide connectivity solutions with 4G Femtocell technology.

 

Enterprise

On the enterprise side, telcos seem focused on finding the right partners to expand the portfolio offerings to their customers.

Maxis announced the latest addition to its managed services portfolio by becoming a Managed Service Provider (MSP) for Hewlett Packard Enterprise (HPE) in Malaysia. Maxis will now be able to leverage HPE Aruba Networking Central with AIOps (artificial intelligence for IT operations) in Maxis Business’ networking offerings for enterprise customers.

Over at Globe, Globe and Red Hat, Inc. are collaborating to modernize Globe’s IT infrastructure with Red Hat Open Innovation Labs. Its shared services subsidiary Asticom Technology Inc. entered into a strategic partnership with GTI Telecom (GTI) to expand to the U.S. and Singapore markets.

Optus is partnering with Devo Technology, the security data analytics company to launch a Managed Threat Monitoring Service for enterprise and mid-market customers, while stc Bahrain also expanded its cybersecurity portfolio to support large enterprises and SMEs in Bahrain on their secure digital transformation initiatives.

Stc Group, has signed a strategic partnership with Nexthink, a global leader in Digital Employee Experience management. This partnership will support in implementing digital employee experience (DEX) management solutions and allow stc Group to have real-time visibility into their entire IT environment – enabling the company to proactively identify and resolve IT issues, optimise performance, improve employee retention and enhance the overall digital workplace experience for employees. 

Optus is also revamping systems to cater to remote working. Optus and Cisco have announced a new multi-year partnership that will offer strengthened network security and data security services for Optus Enterprise and Business customers tackling complexities associated with hybrid workforces. This fusion will offer observability of the network and connections and visibility into security incidents, accelerating the identification and rectification of any underlying issues. 

In India, Airtel Business and Cisco launched Airtel Software-Defined (SD) Branch — a simple, secure, cloud-based, end-to-end-managed network solution for enterprises to enable the unified management of networks across LAN, WAN, security and connectivity over multiple branch locations.

Console Connect and CBC Tech, a NaaS provider in Asia, are partnering to mutually assure seamless on-demand connectivity services. This collaboration empowers businesses with agile connectivity solutions, bridging the gap between international markets and Asia’s rapidly growing digital landscape. Through an interconnection, Console Connect is able to extend the reach of its automated network fabric into CBC Tech’s on-ramps in multiple locations.

 

UC/CPaaS

On the unified communications and Communications-Platform-as-a-Service front, the CPaaS market is still expected to grow but CPaaS players started to experience a slow down in business since 2023 due to macroeconomic headwinds, intense competition, and changing customer demand.

The business is evolving through the integration of communications APIs and AI into the business, which is evolving to combine communications with data and AI to deliver quantifiable engagement.  There is increasing emphasis on customer data management, AI/GenAI, and integration with a range of business applications such as CRM, contact centre and workflow automation tools to deliver better customer engagement outcomes.

Some of the latest trends to watch in 2024-2025:

• AI tools like ChatGPT are revolutionising customer communication by enabling CPaaS providers to offer chatbot builders and customizable solutions;
• Omnichannel: CPaaS is enabling businesses to integrate communication across multiple channels, such as chat, voice, video, and social media;
• Channel mix: OTT channels like WhatsApp, Viber, and RCS are becoming a staple of business communication;
• No-code and low-code platforms: companies are creating no-code and low-code platforms that ensure anyone can take advantage of APIs and connectors;
• Expanding The Channel Partner Programs: CPaaS providers are making it easier for partners, like resellers and SIs, to provide a full suite of communication solutions to their clients. So, if a business is looking to integrate messaging, voice, video, or other communication features, it can be done without having to build from scratch.

For our BMOs, Singtel has partnered Sinch to become the first provider in Rich Communication Services (RCS) for businesses in Singapore. Sinch and Singtel are now offering businesses an advanced platform to connect with customers through secure and branded messaging directly in their native mobile inboxes.

 

Web3/metaverse/gaming

On the Web3 front, the metaverse remains engulfed in a wave of scepticism, resulting in fewer announcements made by telecom operators. This is also one of the few areas where AI still has to make any inroads.

BMOs seem keen on a wide range of areas in esports, cloud gaming, blockchain and cryptocurrencies. Stc Bahrain launched the ‘Intersect the Network’ on Avalanche. This initiative aims to advance Web3 innovation, promote digital transformation, and create a thriving ecosystem for decentralized applications (dApps) globally, intersecting the Web3 world and the real world.

stc Group worked together with Cisco to deploy innovative digital experience assuarance technology to support the Esports World Cup (EWC), an esports competition, hosted for the first time in Saudi Arabia. At Gamescom, the world’s largest gaming event, Deutsche Telekom  with its technology partner Ludium Lab, a company specializing in cloud gaming, jointly presented their plans of an offer for the gaming scene 5G+ Gaming.

AIS is also big on gaming. It partnered with Red Bull to create a platform for gamers and eSports athletes through the “AIS 5G eSports U Series Thailand Championship 2024 by Red Bull“, the largest university-level eSports competition in Thailand.

In Taiwan, Taiwan Mobile has received a virtual asset service provider (VASP) license from the country’s Financial Supervisory Commission (FSC), according to local reports. The license creates a path for it to open a cryptocurrency exchange.

Decentralized physical infrastructure networks (DePINs) are taking the Web3 world by storm, bridging the physical world with decentralized emerging technologies. Deutsche Telekom revealed its launch of DePIN blockchain nodes to help power the Peaq network, a layer-1 network built for DePIN and machine real-world assets (RWAs). 

Over at Globe, the operator is taking another step at engaging customers in a different way by embarking on a strategic partnership with The Binary Holdings, whose product Fando is a tokenized video streaming platform that will allow Globe users to earn $BNRY tokens by viewing and creating videos, boosting user engagement and retention. The tokenized cashback service rewards Globe users with $BNRY tokens for every in-app purchase, incentivising spending within Globe’s ecosystem and providing a tangible benefit for their loyalty.