What’s up with… BSNL, FCC, Telefónica

• India’s BSNL hooks up with vendor giants for AI, telco talent initiative
• US regulator adopts new subsea cable security rules
• Telefónica attracts bidders for its Chile operation

In today’s industry news roundup: Cisco, Ericsson, Nokia and Qualcomm are working with India’s state-owned telco BSNL on a major new AI and telco skills initiative; the FCC has implemented its new subsea network security rules that aim to deal with ‘foreign adversary threats’; Telefónica’s unit in Chile is attracting interest from multiple potential bidders; and much more!

The revitalisation of BSNL continues with news that the state-owned Indian telco has signed a strategic memoranda of understanding (MoUs) with four major vendors – Cisco Systems, Ericsson, Nokia and Qualcomm Technologies – with the aim of creating and running training initiatives in 5G, AI/ML, networking and digital technologies at the telco’s training institute in Jabalpur. The initiative is “a step towards a broader plan by the Department of Telecommunications (DoT)’s, Ministry of Communications, to establish a Telecom Innovation, Research and Training Centre (TIRTC)” at the BSNL training facilities, according to this Ministry of Communications announcement. “Envisioned as an industry-led national hub, TIRTC will focus on developing telecom-specific R&D talent and a future-ready workforce – aligning with the Honorable Prime Minister’s vision of Skill India and Atmanirbhar Bharat. TIRTC will also support product innovation, prototyping and telecom entrepreneurship in the long term,” it added. The move is notable because BSNL had for years been withering on the telecom vine due to a lack of investment and strategic purpose, while privately owned telcos Reliance Jio and Bharti Airtel ploughed billions into their networks and quickly developed 5G services. The Indian government could have left BSNL to shrink and disappear but instead it appears to be committed to investing in the operator and ensuring it has a long-term future: In 2022, BSNL was handed a revival package of cash and assets worth more than $20bn and earlier this year it recorded its first quarterly operating profit in 17 years. BSNL is still losing customers to its bigger, privately owned rivals, but it still has more than 90 million customers and a market share of almost 8% and with the ongoing support of the government and new initiatives, such as the training partnerships, it is likely to get stronger, especially as India is committed to developing its tech skills base and developing technology that is not only used locally but also exported. Commenting on the training agreements, India’s telecom minister, Shri Jyotiraditya M. Scindia, described the initiative as “a landmark step in building a skilled and future-ready telecom workforce through collaboration between BSNL and leading global technology companies. Backed by industry leaders such as Ericsson, Nokia, Cisco, Qualcomm and BSNL, the programme will train over 2,000 students annually, with Phase 1 investments exceeding ₹1 crore [US$114,000].... From local to global, India will not just make in India, but make for the world. Jabalpur will be at the heart of this transformation.”  

As expected, the Federal Communications Commission (FCC) has “adopted new rules to unleash the buildout of secure submarine cable infrastructure,” the US telecom regulator has announced. The watchdog noted: “Submarine cable systems carry roughly 99% of global internet traffic and are key to further extending America’s leadership in AI and next-generation technologies. The new rules streamline the submarine cable licensing process, give certainty to investors, and accelerate the timelines for building cables. To address the reality that foreign adversaries like China pose greater threats to submarine cable infrastructure than ever, the new rules emphasise protecting submarine cable infrastructure from foreign adversary threats.” The move comes only weeks after FCC chairman Brendan Carr announced plans for the new rules, noting at the time that subsea cables are facing “increased threats from countries like China and Russia” that constitute “an unacceptable risk to the national security of the United States.” The new rules allow the FCC to “issue default denials to certain foreign adversary-controlled applicants” for cable construction, operation or leasing, and prohibit the use of “covered equipment in subsea cable infrastructure” to “guard our submarine cables against foreign adversary ownership, and access as well as cyber and physical threats.” The move comes as concerns grow over the security of the world’s submarine communications network infrastructure – see World’s submarine comms cables under greater threat than ever.

As it continues the divestment of most of its Latin American operations, Telefónica has reportedly attracted interest from six potential bidders for its business in Chile. El Economista reports that four local operators, including Entel and ClaroVTR, and two non-Chilean companies, including IntegraTec (which acquired Telefónica’s business in Peru), have registered interest. Previous reports have suggested Telefónica is keen to secure €1bn for its business in Chile and is aiming to secure a deal before the end of this year. While it plans to hold onto its operations in Brazil, Telefónica is seeking to offload its other units in Latin America, and has already this year  struck deals to divest its operations in Argentina, Colombia, Peru, Ecuador and Uruguay. Reports emerged recently that Telefónica is in exclusive talks to sell its operations in Mexico to Beyond One, which already owns Virgin Mobile Mexico. 

UK operator VodafoneThree, which was formed at the beginning of June, claims to be making early headway with the integration of the previously separate Vodafone UK and Three networks. According to VodafoneThree, its multi-operator core platform has enabled it to activate 600 mobile sites for automatic network sharing – that means customers will connect to whichever of the Vodafone UK or Three infrastructure that offers the best connectivity without having to change any of their settings. The operator expects to have activated 9,000 sites for network sharing within the first 12 months of operation, it noted in this announcement. “Bringing our networks together marks a major milestone for VodafoneThree, unlocking greater capacity, reducing 4G ‘not-spots’, and expanding 5G coverage,” stated Andrea Donà, chief network officer at VodafoneThree, which has 29 million customers. “Just weeks into the rollout, millions of customers are already seeing the benefits of a nationwide boost, powered by our spectrum integration and multi-operator core network technology. It’s a clear signal of VodafoneThree’s ambition and ability to move at pace to deliver a new era of connectivity.”  

– The staff, TelecomTV