FROM THE INDUSTRY
ongoing challenges as multi-system operators (MSO), Internet service providers (ISP), fibre-to-the-home (FTTH) providers, and wireless carriers navigate complex investment decisions to keep up with innovation. As we look ahead to 2025 and beyond, networks must continue to evolve to enhance our daily lives. The drive for digitisation and technological progress is as essential now as it was then, ensuring that telecommunications can meet the demands of an increasingly connected world.
Introduction
gaining traction globally as a means of reducing capital expenditures (CapEx). Shared infrastructure projects have demonstrated potential savings of up to 40% on CapEx - a strategy that could prove transformative as the industry evolves towards 2030 2 . In the US, mergers and acquisitions (M&A) continue to reshape our landscape. Recent examples include Charter Communications agreeing to acquire Liberty Broadband and Cable One expanding its investment in Vyve Broadband. AT&T is reportedly in talks to acquire Lumen Technologies’ consumer fibre-optic network, while T-Mobile has finalised a joint venture (JV) with Lumos Fibre. M&A is not just unique to the US, as Vodafone and Three have received approval to merge, forming the UK’s largest mobile operator. Swisscom has signed a binding agreement to acquire 100% of Vodafone Italia, to name a few. These moves reflect a growing need for operators to scale effectively amidst competitive pressures. Sustainability is increasingly shaping telecommunication strategies on both sides of the Atlantic, but with notable differences. European operators embed sustainability deeply into their strategies through stricter government regulations and environmental mandates. They are moving towards utility-like models focused on infrastructure sharing and reduced energy consumption—essential steps toward carbon neutrality. In contrast, US operators are still in the early stages of integrating sustainability initiatives. While there is growing emphasis on energy efficiency and environmental, social, governance (ESG) reporting, these efforts remain largely operator-driven rather than mandated by policy. An area in which US operators could learn from European strategies. From a technology perspective, DOCSIS continues to play a significant role in the US, offering incremental investments with high speeds and reliability over coaxial networks. Distributed access architecture (DAA) enhances flexibility by supporting DOCSIS services alongside FTTH optical networks like passive optical networks (PON) (see figure #1) and emerging technologies such as edge computing and artificial intelligence (AI) operations. Fix wireless access (FWA) deployments are expanding faster in the US (see figure #2), while renewed interest in satellite connectivity through providers like Amazon and Starlink addresses rural connectivity challenges.
Looking back on my time at Comcast over two decades ago, I recall the transformative strides we made in digitisation. We transitioned our RF communications from analogue 6MHz channels (8MHz in Europe) to digital 6MHz quadrature amplitude modulation (QAM) channels within our hybrid fibre coaxial (HFC) access network. This shift addressed critical capacity challenges in the RF spectrum and laid the foundation for significant advancements in future products and services we offered. At the same time, we also undertook the migration from IPv4 to IPv6 in our core and aggregate networks, a necessary step to tackle the growing scarcity of IPv4 addresses at the time. These technological changes in the US were pivotal, enabling the introduction of digital voice services (formerly PSTN), standard/high-definition (SD/ HD) MPEG-2 video channels, and preparing for DOCSIS channel bonding to expand downstream bandwidth for our high-speed data (HSD) customers. There was also rapid growth of digital subscriber line (DSL) technology at the time, which outpaced DOCSIS cable modem subscriptions, and drove much of these innovations. These investments were not only crucial for maintaining competitiveness but also for anticipating future demands in an evolving and reconstructed telecommunications landscape. Fast forward to today, and the pace of technological advancement remains unprecedented. The industry faces
American and European Telecommunications Investment
Reflecting on investment dynamics, building telecommunications networks in the US remains significantly different and more expensive than in Europe or Latin America. Costs associated with spectrum acquisition, workforce expenses, taxation, permitting, pole access/make- ready processes and mapping are approximately 50% higher in the US, creating substantial barriers to network development 1 . In Europe, however, ISPs benefit from network unbundling regulations that allow operators to offer products and services without owning their infrastructure—a stark contrast to the US model. However, unbundling lowers annual revenue per unit (ARPU) for European operators, fostering competition and providing consumers with more affordable options. US operators are still benefiting from higher ARPUs. Collaborative models such as unbundling and network sharing are
May 2025 Volume 47 No.2
53
Made with FlippingBook - Online magazine maker