Carrier Global Domination Dreams Conquered by Pragmatism

R-Pritchard 071521

Summary Bullets:   

  • The refocused geographical target of Deutsche Telekom’s T-Systems ICT solutions business highlights a fundamental shift in ambitions from carriers’ earlier global domination goals in the enterprise market.
  • Market evolution, technology developments, and commercial reality (the need to lower costs) have made carriers refocus onto more sharply defined target geographies and customers.

In the heady days of the 1990s, when telecom markets in the Western world opened up to competition, carriers developed plans for global domination – sometimes on a go-it-alone basis, but more often than not via partnerships and joint ventures. Who today remembers Global One (Deutsche Telekom, France Telecom/Orange, Sprint), Unisource (KPN, Swisscom, Telia), and Concert (BT-MCI, then BT-AT&T)?  Billions of dollars were spent investing in worldwide expansion ambitions, but nobody emerged as triumphant in the battle to dominate the global enterprise market.  More recently, Telefonica has been reducing its footprint in Latin America, Vodafone has refocused on Europe and Africa, and BT has been selling off its in-country assets outside of the UK.  T-Systems will still support key strategic accounts under its revised strategy, reflecting a reduction in MNC account ambitions which is salient across the whole sector. Continue reading “Carrier Global Domination Dreams Conquered by Pragmatism”

Turning Fiber into Business Services

Summary Bullets:

• Amidst all the fiber network hype and almost daily announcements of new infrastructure plans, Vodafone’s launch of Ethernet services over CityFibre networks means that UK enterprises can now start to benefit from them.

• Enterprises should be aware how fiber expansion can offer an enhanced work from home experience and how emerging technologies (e.g., hollow core fiber) may support advanced services.

Fiber network roll-out announcements have been coming thick and fast recently, but now UK enterprises can finally benefit from actual services, marking a key staging post.

Over recent weeks, there have been announcements on fiber deployment from CityFibre, BT/Openreach, Virgin Media O2, and numerous smaller altnets – including Upp’s announcement on June 1, 2021 that it will invest GBP 1 billion to deploy FTTH to a million premises by 2025.

So far, the focus has been on investment models, premises passed, and connection speeds – which has been of interest to analysts but less so to enterprises. Any actual services have tended to focus on the consumer segment, but now businesses of all sizes and resellers stand to benefit from these fiber builds.

Vodafone has announced that it is launching Ethernet services over its partner CityFibre’s network in Cambridge, Coventry, and Peterborough, with Aberdeen, Edinburgh, Huddersfield, Leeds, Leicester, Milton Keynes, Northampton, Portsmouth, and Southend-on-Sea to follow. The new service is positioned as offering a tailored private data network on a single or multiple premises, and as a complement to Vodafone’s full-fiber (FTTP) broadband.

Continue reading “Turning Fiber into Business Services”

UK Enterprises Heading for a High-Fiber Diet

Summary Bullets: Rob Pritchard

  • CityFibre is reportedly in talks over a GBP 1 billion stake sale to fund further UK fiber rollout.
  • BT has also stated that it is looking for a joint venture partner to invest in Openreach’s extended fiber rollout.

You wait years for a full-fiber rollout; then three come along at the same time. UK infrastructure providers have been looking to accelerate their fiber network rollouts, increasingly with the backing of financial/institutional investors. Continue reading “UK Enterprises Heading for a High-Fiber Diet”

Facebook Workplace Is Poised to Become a Significant Threat to Collaboration Players

Rob Pritchard

Summary Bullets:

  • Facebook enterprise collaboration tool Workplace is being used by seven million paying subscribers, up 40% year-on-year.
  • Facebook is leveraging its internally developed platform, brand, customer base, and deep resources. Other providers of collaboration tools should pay attention.

The collaboration market is set to witness additional competition, as Facebook is becoming an important player with its Workplace software tool.

Everyone knows Facebook is big; more than three billion users worldwide prove that. But it’s a relative secret that Facebook is also big – and growing – in the business market, with more than 200 million customers.  Within that base, Facebook supports in excess of 30,000 organizations using Workplace, including seven million paid subscribers. Continue reading “Facebook Workplace Is Poised to Become a Significant Threat to Collaboration Players”