Telecommunications infrastructure

Asia Pacific data centres attract global capital

Investors are flocking to data centre operators in the Asia Pacific region, driven by the growing demand for AI services and robust market valuations. Major transactions, like Blackstone’s $15.58 billion acquisition of Australia’s AirTrunk, have set high benchmarks for the sector. Industry experts predict that the region’s data centres will continue to see strong valuations due to their nascent stage and promising growth, despite concerns about insufficient infrastructure in some areas.

Several notable investment opportunities have surfaced, such as the sale of stakes in Indonesian data centre NeutraDC and Telkom’s data centre arm, which could be valued at over $1 billion. These deals reflect a broader trend of investors seeking high-growth opportunities in the region. NeutraDC’s expansion plan, which aims to increase capacity to 500 megawatts by 2030, has made it an attractive target, with valuations potentially exceeding 20 times core earnings.

The Asia Pacific region has become a leader in global data centre mergers and acquisitions, surpassing half of the world’s total transactions this year. This surge is attributed to the booming AI demand, with companies rapidly expanding their data processing capacity. However, some investors warn that the sustainability of these high valuations will depend on overcoming challenges like power shortages and the reliable delivery of new infrastructure projects.

While the long-term outlook for Asia Pacific’s data centre market remains positive, experts predict that growth may slow slightly as new capacity is brought online. Investors will need to navigate execution risks to maintain the sector’s momentum and ensure the continued expansion of data centre infrastructure.

Finland reports accidental internet cable damage

Authorities in Finland have attributed the recent damage to two fibre-optic internet cables to construction activity. The breaches, reported on Monday at separate locations, were deemed accidental and not the result of criminal actions.

The incidents coincided with heightened vigilance following suspected sabotage of undersea cables in the Baltic Sea. However, Finnish police and the communications agency Traficom ruled out foul play in this instance, citing excavation work as the likely cause.

Both damaged cables, which serve as links between Finland and Sweden, were repaired by Tuesday afternoon. Finland’s Transport and Communications Minister, Lulu Ranne, reinforced the conclusion that the disruptions stemmed from non-malicious origins.

The Nordic region remains alert to potential risks affecting vital infrastructure, but the Finnish government emphasised that no immediate threats were posed by these incidents.

Indian police probe Starlink in maritime drug bust

Indian police are investigating how a Starlink satellite internet device was used in a massive drug smuggling operation. Officers in the Andaman and Nicobar Islands seized over 6,000 kilograms of methamphetamine, worth an estimated $4.25 billion, from a Myanmar vessel last week. Six Myanmar nationals were detained in what has become the largest drug bust in the region’s history.

Authorities revealed the smugglers relied on a Starlink device to navigate the deep seas and evade detection. Starlink, which provides internet coverage in international waters, has yet to formally launch in India, pending government approvals. Investigators aim to trace the device’s purchase and usage history to uncover potential links to smuggling networks.

Meth trafficking via maritime routes has surged across Asia, with record seizures reported in 2023. Police in India are now probing connections to both local and international criminal syndicates in this case.

Rebellions and Sapeon Korea merge to strengthen AI position

South Korean AI chipmakers Rebellions and Sapeon Korea have officially merged, forming a new company valued at approximately USD 928 million. The combined entity will continue under the name “Rebellions,” led by CEO Sunghyun Park. The merger aims to enhance the company’s global competitiveness in the fast-growing AI chip market by leveraging expertise across South Korea‘s telecom, government, and semiconductor sectors.

The merger brings together Rebellions, a fabless AI chip startup established in 2020, and Sapeon Korea, an affiliate of SK Telecom, to combine their strengths in AI chiplet technology. This integration is expected to accelerate innovation and improve efficiency, particularly in developing next-generation AI chips like REBEL, designed to meet the increasing demands of AI applications.

Looking ahead, Rebellions plans to expand internationally, with targeted entry into markets such as the United States, Saudi Arabia, and Japan. Strategic partnerships, including collaborations with SK Telecom and SK hynix, will help fuel the company’s global ambitions and support its expansion efforts.

Talks continue after Telefonica deal falls through

Telefonica’s plan to sell stakes in its Peruvian fibre optic network to KKR and Entel has fallen through. The agreement, announced in July 2023, would have seen Telefonica sell 54% to private equity fund KKR and 10% to Chilean telecoms operator Entel. The deal’s failure was confirmed by Entel in a filing to the regulator, citing unspecified breaches of closing conditions.

Despite the setback, Telefonica remains in discussions with both KKR and Entel, according to a filing with the Peruvian stock market regulator. The proposed transaction valued the entire fibre network at approximately €550 million, including debt, and was expected to reduce Telefonica’s debt by €200 million.

Telefonica has been selling assets in recent years to manage its debt load and fund significant investments in 5G infrastructure. The collapse of the deal adds to the challenges the company faces in navigating its financial strategy and expanding next-generation networks.

Heathrow explores AI to ease air traffic congestion

Heathrow Airport, one of the world’s busiest, is trialling an advanced AI system named ‘Amy’ to assist air traffic controllers in managing its crowded airspace. Handling nearly half a million flights annually, Heathrow aims to improve safety and efficiency through real-time data and advanced tracking capabilities provided by the AI system.

Amy integrates radar and 4K video data to give controllers a detailed visualisation of aircraft positions, even when out of sight. Designed by NATS, the UK’s air traffic management agency, the system offers vital information such as flight numbers and aircraft types, helping controllers make faster, more informed decisions. After testing on over 40,000 flights, NATS plans to fully operationalise a ‘digital contingency tower’ by 2027 to ensure backup in emergencies.

Despite its promise, experts caution against over-reliance on AI. They highlight potential limitations, such as insufficient contextual judgment and challenges in handling unexpected scenarios. Colin Rigby from Keele University emphasised that AI should complement human operators rather than replace them.

The adoption of similar AI-driven solutions is being explored by major airports worldwide, including those in Singapore, New York, and Hong Kong, signaling a shift toward digital transformation in air traffic management.

Mexico’s telecom reform sparks debate

Mexico’s recent constitutional reform, which dissolves the Federal Telecommunications Institute (IFT) and six other regulatory agencies, has drawn criticism for potentially undermining regulatory independence. Passed by the Senate and awaiting state legislature approval, the reform shifts oversight responsibilities from autonomous bodies to federal executive control, sparking fears of inefficiency and diminished regulatory effectiveness.

The IFT, instrumental in modernising Mexico’s telecommunications and broadcasting sectors, warned that eliminating institutional autonomy could disrupt competition enforcement and sector regulation. Critics, including the Mexican Association for the Right to Information (Amedi), argue the changes risk political interference, jeopardising impartiality in decision-making.

The reform also raises concerns about Mexico’s adherence to international agreements, such as the US-Mexico-Canada Agreement (USMCA), which mandates independent regulators for telecommunications. The government has suggested transferring the IFT’s responsibilities to existing ministries or creating a new agency, leaving the sector’s future regulatory framework uncertain.

Stakeholders stress the need for technical expertise, impartiality, and clarity in upcoming secondary legislation to avoid inefficiencies and ensure compliance with domestic and international obligations.

UN and international agencies establish advisory body for submarine cables

The United Nationshas launched the International Advisory Body for Submarine Cable Resilience to protect critical underwater communication infrastructure.

The initiative, announced in October 2024, brings together the International Telecommunication Union (ITU), and the International Cable Protection Committee (ICPC) to address growing risks to submarine cables, facilitating over 99% of global data transmission.

The initiative follows high-profile incidents, including damage to undersea cables and will prioritise enhancing cable security, promoting global best practices, and expediting repairs. With around 150 to 200 cable damage incidents annually—mainly due to ship anchors, fishing activities, and natural disasters—the ICPC highlights the urgency of coordinated action.

Officials from Nigeria and Portugal will co-chair the 40-member advisory body. Scheduled to convene twice a year, the body’s first meeting will occur virtually in December, followed by an in-person session in Abuja, Nigeria, in February.

Submarine cable disruptions have significant consequences. Earlier this year, outages from cable cuts in Africa left 13 countries offline for days, while damage in the Red Sea caused widespread internet disruption in the Middle East.

India introduces new rules for critical telecom infrastructure

The government of India introduced the Telecommunications (Critical Telecommunication Infrastructure) Rules, 2024, on 22 November, which require telecom entities designated as Critical Telecommunication Infrastructure (CTI) to grant government-authorised personnel access to inspect hardware, software, and data. These rules are part of the Telecommunications Act, 2023, empowering the government to designate telecom networks as CTI if their disruption could severely impact national security, the economy, public health, or safety.

The rules mandate that telecom entities appoint a Chief Telecom Security Officer (CTSO) to oversee cybersecurity efforts and report incidents within six hours, a revised deadline from the original two hours proposed in the draft rules. This brings the telecom sector in India in line with existing Telecom Cyber Security Rules and CERT-In directions, though experts argue that the six-hour window does not meet global standards and may contribute to over-regulation.

Telecom networks are already governed under the Information Technology Act, creating potential overlaps with other regulatory frameworks such as the National Critical Information Infrastructure Protection Centre (NCIIPC). The rules also raise concerns about inspection protocols and data access, as they lack clarity on when inspections can be triggered or what limitations should be placed on government personnel accessing sensitive information.

Experts have also questioned the accountability measures in case of abuse of power and the potential for government officials to access the personal data of telecom subscribers during these inspections. To implement these rules, telecom entities must provide detailed documentation to the government, including network architecture, access lists, cybersecurity plans, and security audit reports. They must also maintain logs and documentation for at least two years to assist in detecting anomalies.

Additionally, remote maintenance or repairs from outside India require government approval, and upgrades to hardware or software must be reviewed within 14 days. Immediate upgrades are allowed during cybersecurity incidents, with notification to the government within 24 hours. A digital portal will be established to manage these rules, but concerns about the lack of transparency in communications have been raised. Finally, all CTI hardware, software, and spares must meet Indian Telecommunication Security Assurance Requirements.

Starlink operations halted in Namibia for lacking licence

Namibia’s communications regulator has ordered Starlink, operated by SpaceX, to cease its operations in the country. The Communications Regulatory Authority of Namibia (CRAN) stated that the company was running a telecommunications network without the required licence.

A cease-and-desist order was issued on 26 November, demanding that Starlink immediately halt all activities. CRAN has also advised the public against purchasing or subscribing to Starlink services, warning that these actions are illegal under Namibian law.

Investigators have already confiscated unlicensed terminals from consumers and have opened criminal cases with the police. The regulator emphasised its commitment to enforcing compliance with national telecommunications regulations.

Earlier this year, Cameroon faced a similar situation, seizing equipment at ports due to licence violations. SpaceX has yet to comment on the developments in Namibia.