What’s up with… Ericsson & SoftBank, telco M&A, Ofcom

• Ericsson and SoftBank forge 6G-focused partnership 
• Indonesia’s XL Axiata and Smartfren seal $6.5bn merger deal
• Ofcom moves the UK closer to direct-to-cell services

In today’s industry news roundup: Ericsson and SoftBank are to collaborate on multiple ‘NextWave Tech’ developments; Indonesia has a new supertelco; the UK regulator is on course to approve satellite-to-smartphone communications; and much more!

Ericsson and Japanese telco SoftBank Corp are to forge a “strategic partnership” focused on “evaluating, promoting, and co-creating NextWave Tech”, with cloud RAN, AI, extended reality (XR) and 6G technology at the heart of the collaboration. “The partnership seeks to explore new use cases and drive technological advancements that will shape the future of cellular networks and its architectures,” noted Ericsson in this announcement. Specifically, the partners will focus on: Cloud RAN deployments underpinned by service management and operations (SMO) platform and associated rApps; efficient and effective network design strategies for emerging use cases such as XR; the integration of sensing and communications in wireless networks; and the “effective use of centimeter Wave technologies to position Japan as a leader in 6G”. The Swedish vendor is making a big push with its SMO platform, dubbed the Ericsson Intelligent Automation Platform (EIAP), and has already snagged the likes of AT&T, Swisscom, Vodafone and Telstra as high-profile users. “This new collaboration with SoftBank marks a significant step forward in realising the full potential of AI-powered connectivity technologies,” noted Jawad Manssour, president and representative director at Ericsson Japan. “By combining our expertise in RAN and AI, we are poised to drive innovation and shape SoftBank’s future of mobile networks, empowering their technology leadership through 2030,” he added. It’s worth noting that both companies are founding members of the AI-RAN Alliance and announced in October 2024 a collaboration to “explore the potential for developing new AI-integrated RAN solutions that boost network efficiency and performance”. Hideyuki Tsukuda, executive VP and CTO at SoftBank Corp, added: “Our new partnership with Ericsson allows us to explore cutting-edge solutions that will redefine network capabilities and customer experience. Our joint efforts in areas such as 6G and AI will not only enhance the performance of our network but also pave the way for new business opportunities and technological breakthroughs.”

The $6.5bn merger of two of Indonesia’s communication service providers, XL Axiata and Smartfren, has been approved by the telcos’ shareholders, including their respective parent companies Axiata Group and Sinar Mas, following previous multiple regulatory green lights. “The approval signifies the confidence of shareholders in the combined potential of XL Axiata and Smartfren, reinforcing their commitment to driving a more integrated, efficient, and innovative telecommunications industry,” noted Axiata in this announcement. The merger, first officially announced in December last year, creates a single operator called XLSmart with a subscriber base exceeding 94.3 million, annual projected revenue of IDR 45.8tn ($2.76bn), and an EBITDA of IDR 22.5tn ($1.34bn), enabling it to better compete with market leaders Telkomsel and Indosat Ooredoo Hutchison (IOH). The merger will also result in cost savings of $300m to $400m per year once the integration process is completed. Axiata Group and Sinar Mas will be the joint controlling shareholders, each holding a 34.8% stake in XLSmart and “with equal influence over its strategic direction and decisions,” noted Axiata. Rajeev Sethi has been appointed as president director and CEO, and will be supported by an executive team comprising nine directors and nine commissioners with representation from both XL Axiata and Smartfren. “Rajeev has extensive and successful experience in transforming telecommunications companies in emerging markets that will help XLSmart to realise its synergy values, and was previously the CEO at Robi Axiata Bangladesh,” stated Axiata, adding that the company will “focus on expanding network coverage, enhancing service quality, and driving digital innovation, while also unlocking opportunities in mobile broadband, enterprise services, and emerging digital technologies to meet the evolving needs of Indonesia’s telecommunications market.” Axiata Group and Sinar Mas now plan to explore “deeper collaboration between the two companies, focusing on potential synergies in Malaysia, Indonesia, and South-east Asia,” with a focus on “advanced 5G solutions, enterprise services, digital infrastructure, and fintech innovations, supporting the broader goal of accelerating digital transformation across the region,” noted Axiata. 

UK regulator Ofcom has set out proposals to authorise the use of cellular spectrum bands for satellite direct-to-device (D2D) services (aka satellite-to-smartphone services). The regulator published a Call for Input in July 2024 followed by a Summary of Responses in November 2024. Now Ofcom says that “enabling these services in the UK could improve connectivity for consumers and businesses, particularly in remote areas; support investment; and open up new opportunities for MNOs [mobile network operators] (via satellite communications) to use their licensed spectrum holdings more intensively.” The regulator noted that until now, “mobile satellite services from space have mainly been available to a niche group of users – for example, on ships and aircraft – with specialist handsets that can be expensive. If this was more widely available, it would help connect the UK’s most rural and hard-to-reach places. This could mean getting a signal in remote villages and up mountains, and could provide vital back-up options during outages. Given advances in this technology, Ofcom is proposing to allow mobile networks and satellite operators to use [their radio spectrum] to connect mainstream handsets in the UK.” David Willis, Ofcom’s spectrum group director, stated: “For years, we’ve seen satellite calls in disaster movies on special handsets. We’re now on the cusp of people being able to make them on their everyday smartphones. Ofcom always strives to be at the forefront of technological change, and we’re the first country in Europe to press ahead with the next frontier in mobile connectivity. This would unlock investment, open doors to innovation and growth, and bring much-needed mobile coverage to rural areas.” The news will be particularly welcomed by Vodafone Group, which recently struck a deal with low-earth orbit (LEO) satellite constellation operator AST SpaceMobile to create a jointly owned European satellite service business – currently simply dubbed as SatCo – in order to “serve mobile network operators (MNOs) in all European markets. SatCo will seek to provide 100% geographic coverage in every part of Europe to give consumers and businesses access to secure space-based cellular broadband connectivity via their domestic MNO.”

Wireless chip giant Qualcomm has filed confidential antitrust complaints with the European Commission, the US Federal Trade Commission and the Korea Fair Trade Commission against semiconductor design firm Arm, according to Bloomberg. Qualcomm alleges that Arm, a former partner but now increasingly a foe, is undermining competition by limiting access to technology it previously made widely available. 

BSS vendor Matrixx Software has unveiled a “monetisation and revenue management” system designed to help support telcos looking to offer satellite and non-terrestrial network (NTN) services to their customers. The platform “helps to quickly and efficiently launch new packages for consumer and enterprise offerings as well as manage and settle wholesale relationships between telcos and NTNs,” according to the vendor. “The recent surge in mobile-NTN partnerships and commercial launches demonstrates how operators can deliver superior services and customer experiences for increasingly pervasive connected services,” noted Matrixx Software’s CTO, Marc Price. “Investments in 5G networks and direct-to-device satellite communications are paving the way for a more diverse market, where dynamic pricing and billing capabilities across the participant ecosystem enables revenue growth and return on these investments,” he added. Read more. 

– The staff, TelecomTV