HPE’s Concessions Made to US DoJ to Acquire Juniper Will Have an Uncertain Impact

S. Schuchart

Summary bullets:

• The long-awaited merger is nearly here

• The impact of these concessions will play out over time

The long, drawn-out saga of HPE’s quest to buy Juniper has reached another milestone. HPE and the United States Department of Justice (DoJ) have reached a deal that, pending judicial approval, will allow the transaction to complete. However, there are a couple of concessions on HPE’s part. First it must divest its HPE Aruba Instant On business within 180 days to satisfy the DoJ’s worries about Wi-Fi market share of the combined companies. Second, HPE must auction off a perpetual, non-exclusive license to the source code for AI Ops for Mist.

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AI-Powered Network Portals: SLMs, Proactive Observability, and Root Cause Analysis

Research Director, Enterprise Technology and Services

Summary Bullets:

  • Multiple small language models (SLMs) are likely to be more affective than one big large language model (LLM).
  • AI can offer proactive root cause analysis informed by multiple data sources.

Agentic AI has dominated the tech headlines in recent months and was the hot topic at this year’s MWC event in Barcelona (Spain). The technology will play a significant role in revolutionizing indirect sales and customer support processes across pretty much all verticals. It can also play a major part in one of the most important challenges facing telcos at the moment: automating their networks.

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Project Waterworth: Meta’s New Cable Will Bring Disruption to the Wholesale Telecom Market

B. Swan

Summary Bullets:

  • Meta has announced it will build a 50,000km subsea cable connecting five major continents, including the United States, Brazil, South Africa, and India.
  • Project Waterworth is likely to cause further disruption for wholesale operators as the company looks to dominate global internet connectivity.

Meta announced it will build the world’s longest and highest capacity subsea cable system spanning over 50,000km (31,000 miles), connecting Brazil, India, the US, South Africa and other regions. The new venture, dubbed Project Waterworth, is expected to enhance global connectivity and bring Meta significant opportunities in the AI space, particularly in the Indian market, along with new economic growth for the countries associated with the project. The proposed network will use 24 fiber pairs, which will boost data capacity and internet speed across connected regions and will be laid at depths of up to 7,000 meters (23,000 feet) to avoid damage from ship anchors and other hazards, while evading any high-risk geopolitical regions. This announcement from Meta could also play a role in the expansion of cloud computing, data centers, and other emerging AI-driven advancements. Project Waterworth is likely to cause further disruption for wholesale operators as the company looks to dominate global connectivity.

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TIM Offloads Sparkle as the Italian Government Looks to Keep Ownership in a 70% “Strategic” Stake

B. Swan

Summary Bullets:

• Telecom Italia has divested Sparkle, its international infrastructure and services unit, in an EUR700 million ($733 million) deal as the carrier looks to reduce debt and focus on its core business.

• Italy’s Ministry of Economy and Finance (MEF) will have majority control of the business with 70% of the company, with the remaining 30% share owned by Retelit, a subsidiary of Spanish infrastructure fund Asterion.

Telecom Italia has finally offloaded its international infrastructure and services unit Sparkle to the Italian MEF in an EUR700 million ($733 million) partnership deal with Retelit, a fiber-optic operator controlled by Spanish Infrastructure fund Asterion. Sparkle operates more than 600,000 km of cables that connect countries across Europe and the Americas. Telecom Italia’s board unanimously approved the deal, which was first put forward as a non-binding offer in October 2024 but was rejected by the board. The sale is expected to be completed within Q1 2026, subject to regulatory approvals.

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Small Business Saturday – An Opportunity for UK Telcos

R. Pritchard

Summary Bullets:

  • Held on the first Saturday in December, ‘Small Business Saturday’ in the UK encourages small businesses to promote themselves and attract customer attention.
  • Following Black Friday offers, UK telcos should use this event to target SMBs and SOHOs – acquiring customers is more profitable than slashing margins.

Having started in the US in 2010, ‘Small Business Saturday’ has found its way to the UK and celebrated its 12th anniversary this side of the Atlantic on December 7, 2024 – an estimated GBP669 million was spent on Small Business Saturday in the UK in 2023.

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Colt Technology Services Expands Network Reach in Sydney but it Needs to Tell a Better Story

B. Swan

Summary Bullets:

• Colt will expand its network in Sydney connecting approximately 250 commercial buildings and over 20 data centers with services to commence in March 2025.

• Colt must continue to highlight its network capabilities and global reach to rival other global carriers and NaaS providers.

Colt Technology Services announced that it plans to expand its optical network in Sydney, Australia with direct access to approximately 250 commercial buildings and more than 20 data centers as the carrier looks to promote services from early December with services to commence in March 2025. This announcement from Colt is part of the company’s push in Asia-Pacific and will complement its Asian expansion strategy as the company looks to capture the strong B2B network services market growth in the region., Colt anticipates that by 2028 it will extend services to approximately 300 local and global companies with offices in Sydney. While this announcement points to another international player choosing to focus on the Australian market for growth, Colt is not gaining much differentiation from this announcement.

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Vodafone Delivers Marketing Innovation With V-Hub

R. Pritchard

Summary Bullets:

• V-Hub offers a range of online advice help from digital experts to help SMBs and SOHOs make the most of technology to optimize their businesses.

• Vodafone’s V-Hub is proving popular with small business customers and has helped improve its Net Promoter Score by 18 points, providing extra customer lifetime value.

Vodafone’s update on progress with its V-Hub business customer portal was very positive and should be seen as a rare telco success story when targeting the market for smaller business customers. For example, across the countries where V-Hub has been rolled out, Vodafone Business has seen an average NPS (Net Promoter Score) improvement of 18 points since launch.

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BT Seeks to Stand Out in the NaaS Space Through Global Fabric’s Reach and Sustainability Story

M. Rogers

Summary Bullets:

• BT is establishing how its Global Fabric Platform stands out in the NaaS marketplace with its extensive reach, focus on managed services and tooling and automation around routing and security.

• BT also has a very unusual proposition to stand out with its sustainability features, including its Carbon Network Dashboard

BT recently held an event in Sydney showcasing the latest updates to its Global Fabric Platform. Almost a year since the company announced its answer to the emerging network as a service market, BT’s positioning and differentiation in an increasingly crowded landscape is starting to crystalize.

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Small Businesses Buy Differently to Corporates

R. Pritchard

Summary Bullets:

• With 47% of small businesses using WhatsApp, telecoms service providers can become disintermediated from their customers as anything other than a connectivity provider.

• Service providers must understand the complex nature of the market and target value-added solutions selectively to meet changing needs of small businesses as they evolve.

Small businesses are the focus of many telecoms service providers for growth as the corporate, MNC, and public sector markets suffer from hyper-competition and as solutions providers keep winning managed services contracts. The problem is that the dynamics, needs, and go-to-market strategies are not the same for small businesses as for corporates. Most importantly, small businesses are tending less and less to see the traditional portfolios of carriers as relevant to their needs.

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UK Business Bodies Call for Automatic Compensation for Broadband Outages

R. Pritchard

Summary Bullets:

• Leading UK business associations have asked Ofcom to establish an automatic compensation scheme for companies affected by broadband outages as connectivity is lifeblood of modern enterprise.

• Major broadband providers have backup options and enhanced service levels available, which they use in part to justify the premium they charge to business customers.

Leading British business associations have called on UK regulator Ofcom to establish an automatic compensation scheme for enterprises affected by broadband outages.

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