What’s up with… SoftBank, Salt Typhoon, Project Reach

No smoking allowed! A Sceye HAPS vehicle... just look at the size of it!

No smoking allowed! A Sceye HAPS vehicle... just look at the size of it!

  • SoftBank invests in Sceye as it preps HAPS launch
  • Salt Typhoon’s cyber targets included Canadian telcos 
  • UK’s Project Reach to bolster railway communications

In today’s industry news roundup: SoftBank gets ready to offer communications services across Japan from giant helium-filled balloons; the Salt Typhoon hackers have been infiltrating network devices in Canada; the UK’s rail telecom infrastructure is getting a major upgrade, even in tunnels; and much more!

Using low-earth orbit (LEO) satellite constellations to provide direct-to-device services is all the rage these days, but that’s not the only way to connect smartphone users who are beyond the reach of standard terrestrial radio access networks. Japanese telco SoftBank Corp has been researching the potential of high-altitude platform station (HAPS) systems since 2017, and regards the technology as a key part of its 6G R&D. In 2021, it created a subsidiary called HAPSMobile and acquired a set of patents from Loon, Alphabet (Google)’s project that tested wireless connectivity from helium balloons. Now, SoftBank has announced plans to launch pre-commercial HAPS connectivity services in Japan in 2026 and, in order to do so, it has teamed up with, and invested in, New Mexico, US-based Sceye, which develops lighter-than-air (LTA)-type HAPS vehicles (aka massive helium-filled balloons). SoftBank didn’t say how much it invested, but Bloomberg reported the sum as $15m, giving Sceye a valuation of $580m. “By providing HAPS-based commercial services, SoftBank aims to build a next-generation telecommunications network with 3D architecture to support stable and reliable connectivity for drones and uncrewed aerial vehicles (UAVs) in the 6G era, in addition to providing telecommunications services during large-scale disasters when terrestrial networks are disrupted,” the telco noted in this press release. HAPS, also referred to as “base stations in the sky,” operate in the stratosphere at an altitude of approximately 20km “to provide wide-area communications coverage. While conventional mobile networks have focused on 2D coverage for smartphones and vehicles, the coming 6G era will demand telecommunications infrastructure with 3D architectures to support connectivity for drones and UAVs [unmanned aerial vehicles] in the sky,” added SoftBank. “These services are expected to support communication recovery during disruptions due to large-scale disasters, such as major earthquakes, and deliver connectivity to hard-to-reach areas, including mountainous regions and remote islands,” the telco noted. 

Cyber espionage outfit Salt Typhoon, which is believed to be “state-sponsored” by the People’s Republic of China (PRC), made headlines last year when it emerged the group had hacked into the systems of multiple US telecom networks. At least nine US telcos, including AT&T and Verizon, were breached, with the hackers believed to have had what US deputy national security advisor for cyber and emerging technology Anne Neuberger described as “broad and full access”. But the Salt Typhoon activity didn’t stop at the US border, it seems. The Canadian Centre for Cyber Security has issued a cyber bulletin that “aims to raise awareness of the threat posed by PRC cyber threat activity, particularly to Canadian telecommunications organisations, in light of new Salt Typhoon-related compromises of entities in Canada. The Cyber Centre is aware of malicious cyber activities currently targeting Canadian telecommunications companies. The responsible actors are almost certainly PRC state-sponsored actors, specifically Salt Typhoon. Three network devices registered to a Canadian telecommunications company were compromised by likely Salt Typhoon actors in mid-February 2025,” it noted, though the telco concerned has not been identified. And this is likely just the beginning, notes the centre, which has “found overlaps with malicious indicators associated with Salt Typhoon, reported by our partners and through industry reporting, which suggests that this targeting is broader than just the telecommunications sector. Targeting of Canadian devices may allow the threat actors to collect information from the victim’s internal network, or use the victim’s device to enable the compromise of further victims. In some cases, we assess that the threat actors’ activities were very likely limited to network reconnaissance. While our understanding of this activity continues to evolve, we assess that PRC cyber actors will almost certainly continue to target Canadian organisations as part of this espionage campaign, including telecommunications service providers and their clients, over the next two years.” Good luck to Bell Canada, Rogers, Telus and Canada’s other network operators. 

In the UK, wholesale and enterprise service provider Neos Networks, shared wireless infrastructure specialist Freshwave and state-owned Network Rail, which runs the UK’s railways infrastructure, have teamed up for Project Reach, which aims to “provide the biggest upgrade to Britain’s rail telecoms infrastructure in decades, benefitting millions of rail passengers, establishing the beginnings of a new high-capacity telecoms infrastructure for Great British Railways to take forward and build upon, and supporting the digital ambitions of the nation’s businesses.” Neos Networks is deploying 1,000km of ultrafast, high-count fibre optic cable” along various UK rail line routes, with the ultimate ambition to grow the network to 5,000km. By “high-count”, Neos is referring to cables containing 432 fibre strands, compared with the 24 or 48 fibre strands found in existing deployments in the UK. Network Rail is to use half of the capacity in the cables for improving its operations, while Neos will use the remaining 50% for commercial services. Neutral host network operator Freshwave, meanwhile, is working with the UK’s mobile network operators EE (part of BT Group), Virgin Media O2 and VodafoneThree to deploy shared radio access network infrastructure “to tackle signal blackspots in 57 tunnels (covering almost 50km) and associated deep cuttings” along multiple routes. Freshwave will also deploy shared cellular infrastructure inside 12 Network Rail stations that, like the systems deployed in the tunnels, will be made available to all mobile operators. Deployments will begin in 2026. But how much will it all cost? No one’s willing to say at this point. “The project’s innovative commercial model brings together public and private sector investment and infrastructure. This is expected to save taxpayers around £300m while delivering substantial benefits to rail users,” note the partners in their joint press release, but quite what that £300m actually represents and over what timescale is, currently, anyone’s guess (and we await answers to our questions about the financials underpinning this significant deployment). But there’s no doubt this will eventually benefit Network Rail, mobile users and UK enterprises, as the fibre running along Network Rail’s tracks will provide high-capacity data transport arteries that will help connect businesses, critical infrastructure and datacentres. “Connectivity has become the cornerstone of innovation,” stated Neos Networks CEO Lee Myall. “The increasing demand for datacentre capacity and the unprecedented growth in AI-driven data demands are pushing the boundaries of existing infrastructure. Project Reach will support the upgrade of the UK’s connectivity infrastructure, creating new data superhighways that will drive the UK’s digital ambitions forward,” he added. Simon Frumkin, CEO of Freshwave, added: “We’re delighted to be working with Network Rail and the mobile network operators to enhance mobile connectivity in some of the country’s busiest railway stations and main line tunnels. This will benefit millions of passengers and station staff across the UK. Investment in infrastructure is an investment in the country’s future and, as Freshwave’s Mobile Connectivity ROI Index indicated, billions of pounds could be added to the UK economy with enhanced indoor mobile connectivity.”

Rakuten Symphony, the cloud and Open RAN vendor arm of Japanese operator Rakuten Mobile, has increased its chances of landing some business in India by striking a strategic partnership with Bangalore-based Tejas Networks to “develop integrated Open RAN solutions and engage in joint go-to-market efforts, both in India and internationally.” The partners will combine Symphony’s virtual and open radio access network (RAN) software with Tejas’s 4G and 5G radio unit portfolio. It’s the “in India” part that’s most interesting here – having a local vendor partner is going to significantly increase Rakuten Symphony’s chances of engaging with India’s mobile operators and, at a guess, the most likely route to new business in the country will be with state-owned BSNL, which is playing mobile network infrastructure catch-up with the country’s three privately owned operators Reliance Jio, Bharti Airtel and Vodafone Idea, and is looking for innovative ways to gain an edge on its rivals. (In fact, BSNL has just started trialling domestically developed technology for a new 5G fixed wireless access service.) 

Still in India… Vodafone Idea (Vi), which is the most financially and operationally challenged of the country’s three main operators, is reportedly in talks to raise 250bn rupees ($2.92bn) in loans from a consortium of lenders led by the State Bank of India so it can further invest in its networks and better compete with Jio and Airtel. As we reported only days ago, while Vi is in a precarious financial position currently, it is now 49% owned by the Indian government, which can’t afford to see it go out of business for many reasons (financial, market competition, loss of face), so the best thing to do is support it in any way possible (and within legal boundaries): No doubt that sentiment has been shared widely within Indian state circles. Vi might be struggling but it still has more than 200 million customers and has already awarded $3.6bn worth of radio access network equipment deals to Ericsson, Samsung and Nokia to improve 4G coverage and roll out its 5G network, so it seems the best course of action is to catch up with Jio and Airtel as quickly as possible and get back on the path to profitable growth. 

– The staff, TelecomTV

Email Newsletters

Sign up to receive TelecomTV's top news and videos, plus exclusive subscriber-only content direct to your inbox.