Telecom leaders urge policy reforms for India’s digital future

Telecom leaders emphasised the urgent need for policy reforms to secure India’s digital future at the India Mobile Congress. They highlighted critical issues such as data localisation, AI adoption, and the expansion of satellite services, thereby calling for immediate action to address these challenges.

Specifically, the chairman of Reliance Jio urged the government to expedite updates to the data centre policy to ensure that essential data remains within India. Moreover, he advocated for incentives for local companies to establish AI and machine learning data centres.

In addition to these points, the transformative potential of AI across sectors like manufacturing, agriculture, healthcare, and education was recognised, with leaders stressing the importance of rapid adoption to drive productivity and innovation. Furthermore, the chairman of Bharti Airtel underscored the necessity of expanding satellite services to bridge the digital divide, particularly in remote areas. He called for funding through the Universal Services Obligation Fund (USOF) to support this expansion.

In light of these discussions, the leaders also addressed the need for direct spectrum allocation methods for satellite broadband services under the new Indian telecom law, enhancing connectivity for urban and rural consumers.

Additionally, they emphasised the importance of securing investments to strengthen the industry’s competitiveness. For instance, the chairman of Vodafone Idea noted the company’s recent ₹18,000 crore fundraising aimed at enhancing service offerings through substantial agreements with network suppliers.

Lastly, the growing relevance of combating digital threats such as spam, fraud, and phishing scams was underscored. In this context, they advocated for collaboration with the government and regulatory bodies to implement innovative solutions and promote public awareness campaigns. These campaigns would educate users on identifying and avoiding scams, ultimately fostering a safer digital environment.

Amazon goes nuclear for data centers

Amazon has taken a bold step into nuclear power technology by signing three agreements to develop small modular reactors (SMRs) to address the growing demand for electricity from its data centres. In collaboration with X-Energy, Amazon will fund a feasibility study for an SMR project near a Northwest Energy site in Washington state, positioning itself as a critical player in the shift toward new energy sources. The deal allows Amazon to purchase power from four SMR modules, with the potential for up to eight additional modules capable of producing enough energy to power more than 770,000 homes.

SMRs are gaining attention due to their promise of lower construction costs, with components built in factories rather than onsite. However, critics argue they may still need to be more expensive to reach the necessary economies of scale. Despite this, nuclear power, which produces no greenhouse gas emissions and provides stable, well-paying jobs, is supported by both political parties in the US. However, US SMRs still need to be built, and concerns remain about radioactive waste and regulatory approvals.

The power demand, driven by the rise of AI and data centres, has prompted tech companies like Amazon, Microsoft, and Google to explore nuclear energy solutions. US power consumption from data centres is projected to triple by 2030, requiring nearly 47 gigawatts of new generation capacity. In response, Amazon and X-Energy aim to bring 5 gigawatts of SMR power online by 2039, marking the most significant planned commercial deployment of SMRs in the US.

In addition to the Washington project, Amazon has signed an agreement with Dominion Energy to develop an SMR near its power station in Virginia, where energy demand is expected to surge by 85% over the next 15 years. US Senator Mark Warner praised the move, emphasising that SMR development could finally take off in the US, which has yet to build one.

Why does it matter?

The push for nuclear energy isn’t unique to Amazon. Earlier this week, Google announced a partnership with Kairos Power to deploy an SMR by 2030, while Microsoft has struck a deal to help revive a unit of the Three Mile Island plant. As tech giants increasingly look to nuclear power, the future of energy in the US could hinge on the successful deployment of SMRs.

Intel and AMD unite to tackle Arm’s growing influence

Intel and AMD are teaming up to ensure software compatibility across their x86 chips in response to competition from Arm Holdings. For decades, Intel’s x86 architecture has powered laptops, PCs, and servers, with AMD licensing the technology to make its own competing chips. However, Arm’s market share has grown, partly due to its contracts requiring that all Arm chips support Arm software universally.

In response, Intel and AMD have formed an advisory group that includes major industry players such as Broadcom, Dell Technologies, Lenovo, and Oracle. The group’s objective is to establish consistent and compatible standards for x86 chips by combining expertise from the hardware and software sectors.

At a Lenovo event in Seattle, Intel CEO Pat Gelsinger highlighted the flexibility of x86 technology for AI-enabled laptops, stating that the architecture is still strong and poised for growth and innovation as AI advances.

Japanese tech firms use AI to protect call centre staff

Japanese tech giants NTT Communications and SoftBank are developing AI-driven systems to support call centre employees dealing with abusive customers. NTT Communications has designed a support system that monitors interactions, providing operators with appropriate real-time responses. During a recent demonstration, the system suggested a response to a customer complaint, which was then confirmed as effective.

The technology aims to reduce the psychological stress faced by call centre staff, who often struggle to remain composed when confronted with aggressive callers. By providing quick and accurate responses, the system may also help calm upset customers, according to NTT Communications.

Meanwhile, SoftBank is working on an AI system that modifies the tone of customer voices during interactions, aiming to ease tensions. The company plans to launch this service by fiscal year 2025. These developments address the growing issue of ‘kasu-hara,’ or customer harassment, in Japan, where verbal abuse and demands for excessive apologies have led to mental health issues and job resignations among workers in service industries.

AI-powered updates coming to Google’s Shopping tab

Google is enhancing its Shopping tab with AI, building on its previous integration of generative AI into Search in 2023. The company announced it will use AI technology to help users find products that match their specific needs. The update includes a new, personalised feed of shoppable products, offering a scrollable, TikTok-inspired design.

When users search for a product, an AI-generated brief will provide personalised tips and considerations based on their query. For example, if someone searches for a “men’s winter jacket for Seattle,” the AI might recommend prioritising water resistance for the rainy climate and suggest insulation types suitable for the milder temperatures.

Google’s AI will recommend relevant products, offering brief descriptions to explain why each item is a suitable choice. Users can browse categories like “Synthetic insulated winter jackets for Seattle” and use filters to refine their search based on specific sizes or local availability.

The personalised shopping feed will showcase products and videos tailored to user preferences, featuring items like Chelsea boots alongside YouTube Shorts with shopping tips. Google is positioning itself to compete with TikTok, which has gained traction in e-commerce. These new features will roll out in the US in the coming weeks, as Google combines its Shopping Graph with advanced Gemini models to enhance the user experience.

Blackstone plans significant data centre development in Spain

Blackstone, the world’s largest alternative asset manager, is set to invest €7.5 billion ($8.2 billion) in developing data centres in Aragon, Spain, further establishing the region as a key cloud computing hub in Europe. This investment follows similar moves by tech giants like Microsoft and Amazon, who are also investing heavily in data centre projects in the area.

The US private equity firm will concentrate on building facilities with cooling systems and cable connections, which will be leased to companies for server installations. The Aragon regional government has indicated that 19 data centre projects are currently pending approval.

In recent announcements, Microsoft revealed plans for a €6.69 billion investment in Aragon, while Amazon’s AWS intends to invest €15.7 billion in its own data centres. Notably, Amazon has committed to powering its facilities with renewable energy, leveraging Aragon’s significant wind power resources.

UK secures £6.3 billion US investment in data centres

On Monday, Britain announced a major investment of £6.3 billion ($8.2 billion) by US companies ServiceNow, CyrusOne, CloudHQ, and CoreWeave in UK data centre technology. This announcement aligns with the UK government’s broader economic plans, as Prime Minister Keir Starmer hosts the International Investment Summit in London, gathering hundreds of global business leaders.

At the summit, the government is set to unveil an additional £50 billion ($65 billion) in new investments aimed at stimulating growth in sectors like AI, life sciences, and infrastructure. Starmer, emphasising the importance of private sector involvement, aims to create a stable environment that fosters economic expansion, aligning with his Labour Party’s commitment to boosting the economy.

The event will also feature discussions between ministers and business leaders on capitalising on opportunities in emerging industries, including health tech, clean energy, and creative sectors.

Ericsson’s revenue set to rise with new 5G contracts

Swedish telecom company Ericsson has secured a new multi-billion dollar deal to supply 5G equipment to India‘s Bharti Airtel, according to sources. This follows a $3.6 billion contract last month with Vodafone Idea, shared with Nokia and Samsung, highlighting Ericsson’s expanding presence in India’s growing 5G market.

Ericsson’s shares rose nearly 9% on Tuesday after the company reported third-quarter earnings that exceeded analyst expectations, driven by strong demand in North America. Adjusted earnings reached 7.327 billion Swedish crowns ($0.7 billion), up from 3.9 billion crowns a year earlier, while net sales fell 4% year-on-year to 61.8 billion crowns, still surpassing forecasts. The North American market showed over 50% year-on-year growth, offsetting declines in northeast and southeast Asia.

CEO Börje Ekholm noted signs of market stabilisation, attributing demand for 5G largely to growth in mobile internet consumption. He highlighted that the rapid rollout of 5G in India has inflated sales but remains optimistic about growth opportunities despite challenges in China. With improved gross margins and positive outlook comments, analysts are forecasting upgrades to Ericsson’s earnings before interest and tax for 2024 and 2025. The results signal a recovery for Ericsson, which has faced slowing demand for its 5G equipment and previously announced layoffs to cut costs.

Orro launches critical infrastructure division in Australia and New Zealand

Orro is enhancing its operational technology (OT) capabilities with the launch of its new division, Orro Critical Infrastructure, aimed at serving Australia and New Zealand. That initiative represents a significant advancement in Orro’s commitment to providing innovative solutions tailored to meet the growing demands of the industrial sector.

The division will offer a comprehensive suite of specialised services, including network infrastructure, cybersecurity, distributed cloud systems, and private LTE wireless networks. A key component of this initiative is establishing a new Security Operations Centre (SOC) designed explicitly for OT customers, providing real-time protection against potential cyberattacks and ensuring robust cybersecurity measures.

Additionally, Orro will focus on operational excellence by integrating best practices from IT and OT disciplines to effectively manage the complexities of OT production environments. The company will assess and stabilise existing critical infrastructure assets, working closely with industry regulators and clients to implement key transformations.

These expanded capabilities are expected to benefit customers across various sectors, including energy, transport and logistics, healthcare, retail, and state government entities, fostering innovation and resilience in critical infrastructure management.

OpenAI’s SearchGPT may increase publisher traffic

OpenAI‘s head of media partnerships, Varun Shetty, recently stated that the company does not intend to share advertising revenue from its SearchGPT product with publishers. During his address at the Twipe Digital Growth Summit in Brussels, Shetty highlighted OpenAI’s belief that it can provide value to publishers by driving significant traffic from new audiences rather than offering financial compensation. He also acknowledged the importance of a mutually beneficial relationship and indicated that OpenAI is exploring ways to ensure publishers find enough value to remain included in SearchGPT results.

Varun Shetty compared OpenAI’s approach to that of Google’s AI Overviews, which have been criticised for diminishing publishers’ visibility in search results. In contrast, the AI-powered search engine Perplexity has established revenue-sharing agreements with multiple publishers, and Microsoft has announced plans to pay publishers for content featured by its productivity assistant, Copilot. Currently, in an experimental phase, SearchGPT aims to provide answers in natural language while clearly indicating sources. OpenAI intends to integrate SearchGPT into its flagship ChatGPT product by the end of the year.

Shetty stressed the need to balance user experience with publisher needs, noting that while users seek answers, they also want to verify information. He assured publishers they could opt out of SearchGPT results if desired, and any publisher wanting to participate only needs to permit OpenAI’s search bot on their site. He emphasised that SearchGPT has the potential to drive significant traffic without complicating the decision-making regarding content training.

In addition to discussing SearchGPT, Shetty expressed how OpenAI could assist the news industry, noting that while audiences are not interested in AI-generated news, AI can help streamline journalistic tasks, such as story recommendations and multimedia management. He also hinted at advancements in the next GPT model, which will enable more complex user requests, enhancing its usefulness for various applications.