Ericsson is already working with TIM competitor WindTre on 5G SA efforts
Ericsson noted Friday that Italian telco TIM has selected Ericsson’s dual-mode 5G core for its forthcoming 4G and 5G core modernization efforts. TIM will use Ericsson’s technology to modernize its current Evolved Packet Core (EPC) network and to deploy 5G Standalone (SA) service in a single, cloud-native solution, according to Ericsson. Ericsson also noted that TIM will use its network orchestration and automation services as part of the deal.
Andrea Missori, President of Ericsson Italy, said that the new partnership will help consumers and businesses take full advantage of 5G services offered by TIM.
“With 5G standalone it will be possible to activate a series of innovative services that require high performance, low latency and maximum security, as well as the network slicing functionality that will allow mobile operators to monetize network quality,” said Missori.
Ericsson reached a deal with TIM’s Italian competitor WindTre to deploy its dual-mode 5G core in July. The companies are long-time partners; Ericsson and Windtre first unveiled next-generation cloud-native 5G core network technology, architecture, implementation and operations plans in April 2018. The new, long-term agreement will see Windtre bring its 4G, 5G Non-standalone and 5G Standalone services into a dual-mode 5G core that combines Evolved Packet Core (EPC) and 5G core network functions into a common cloud native platform.
TIM reported lower profits and higher debt in its most recent earnings report in early November. The company said earnings totaled €1.31 billion (US$1.34 billion) for the quarter which ended September 30, 2022. Revenue dropped 5.3%. Both numbers were in line with analyst expectations. Adjusted debt rose 15% year over year to €25.5 billion (US$26.12 billion). TIM hopes to revamp its operations, breaking them up into several units to help reduce debt, including selling a minority stake in its enterprise business which includes cloud, IoT and cybersecurity efforts.
TIM is under increasing pressure from the Italian government to accelerate digital transformation efforts in the Italian economy, centering on TIM’s control of its landline business. Earlier this month, Italy’s Minister of Industry Adolfo Urso told attendees of a business conference in Rome that the government needed to bring TIM under public control.
Under particular scrutiny is a plan to combine TIM’s fixed network assets with those of Open Fiber, a smaller rival, to yield unified broadband operations across the country. Open Fiber is reported working with Italian state lender Cassa Depositi e Prestiti S.p.A. (CDP) to make the deal happen. At the end of October, TIM agreed to give CDP and its partners until the end of November to submit a non-binding offer to move the deal forward. CDP already has a minority stake in TIM and controls Open Fiber.
Ericsson noted in June that more than 20 5G SA networks were already in operation by the end of 2021 and said the number of 5G SA networks in public use could reach 50 by the end of the year. The company’s Mobility Report highlighted that China and North America were the first markets in which 5G SA was launched, followed by commercial launches in several other markets, including Australia, Japan, South Korea, Singapore, Thailand, Germany and Finland.
“The overwhelming majority of commercially launched 5G networks are based on NR non-standalone (NSA) technology, using existing 4G radio access for signaling, and an Evolved Packet Core (EPC) network. However, many use cases for Critical IoT, enterprises and industrial automation will only be feasible with the 5G NR SA and 5G Core architecture. In 5G SA architecture, automated end-to-end network slicing is simplified, with assured quality of service (QoS), security and flexibility, to multiple customer segments,” the report states.
