The ITU Global Connectivity Report 2025, released at the conclusion of the World Telecommunication Development Conference (WTDC-25) in Baku, Azerbaijan, delivers a comprehensive assessment of how global connectivity has evolved from a scarce asset in 1994 into a foundational layer of the digital economy and everyday life, with close to 6 billion users projected to be online by 2025. Its analytical framework is anchored in the policy objective of achieving universal and meaningful connectivity (UMC), structured across six interdependent dimensions: Quality, Availability, Affordability, Devices, Skills, and Security.​

The report underscores the socio‑economic gains associated with large‑scale digital transformation, including enhanced productivity, innovation, and service delivery across sectors. At the same time, it emphasizes that progress is constrained by persistent digital divides along income, gender, age, and geographic lines, as well as by escalating exposure to online harms, misinformation, and non‑trivial environmental externalities from ICT infrastructure and usage.​

It suggests the era of easy, organic network expansion is over. While 74% of the world is now online, the curve is flattening, and the remaining deficits are structural rather than merely about access.

With an estimated 2.2 billion people still offline, ITU Member States (194) agreed this week on the Baku Action Plan—a four-year roadmap to 2029 designed to close these persistent divides.

The report provides detailed analysis of structural barriers to universal and meaningful connectivity (UMC), notably high connectivity and device costs, gaps in digital skills, and constrained access to appropriate end‑user devices. It translates this analysis into evidence‑based policy guidance focused on regulatory coherence, targeted affordability interventions, and demand‑side enablers to ensure that connectivity translates into effective and inclusive digital usage.​

From a network engineering and infrastructure perspective, the report highlights the critical role of resilient, high‑capacity backbones, including submarine cable systems and satellite constellations, as strategic layers of the global connectivity fabric. It stresses the need for coordinated investment, robust redundancy and security models, and integrated planning across terrestrial, subsea, and space‑based networks to support UMC objectives.​

The report identifies high service and device costs, insufficient digital skills, and limited device availability as key barriers, and provides evidence‑based policy guidance on regulatory coherence, affordability, and demand‑side enablers. It emphasizes the importance of resilient infrastructure such as submarine cables and satellites, along with stronger national data ecosystems, to support inclusive connectivity strategies and informed digital policy‑making.

Finally, the report calls for strengthening national data ecosystems—covering data collection, governance, sharing, and analytics—as a prerequisite for effective digital inclusion strategies and evidence‑driven policy‑making. It positions mature data capabilities and coherent digital governance frameworks as key enablers for monitoring progress across the six UMC dimensions and for calibrating telecom and ICT policy in line with evolving market and technology dynamics.​

References:

https://www.itu.int/itu-d/reports/statistics/global-connectivity-report-2025/

ITU’s Facts and Figures 2025 report: steady progress in Internet connectivity, but gaps in quality and affordability

ITU-R WP 5D reports on: IMT-2030 (“6G”) Minimum Technology Performance Requirements; Evaluation Criteria & Methodology

ITU-R report: Applications of IMT for specific societal, industrial and enterprise usages

https://www.itu.int/itu-d/reports/statistics/global-connectivity-report-2022/

By Juhi Rani assisted by IEEE Techblog editors Ajay Lotan Thakur and Sridhar Talari Rajagopal

Introduction:

This year, 2025, VC4 [a Netherlands Head Office (H/O) based Operational Support System (OSS) software provider] has brought sharp industry focus to a challenge that many experience in telecom. Many operators/carriers still struggle with broken, unreliable, and disconnected inventory systems. While many companies are demoing AI, intent-based orchestration, and autonomous networks, VC4’s newly branded offering, Service2Create (or S2C as it’s known to some), is refreshingly grounded. Also as we have learnt very quickly, bad data into AI is a “no-no”. None of the orchestration and autonomous networks, will work accurately if your OSS is built on flawed data. The age-old saying “Garbage in, Garbage out” comes to mind.

VC4’s platform, Service2Create (S2C), is a next-generation OSS inventory system that supports the evolving needs of telecom operators looking to embrace AI, automate workflows, and run leaner, smarter operations. Service2Create is built from over two decades of experience of inventory management solutions – IMS. By focusing on inventory accuracy and network transparency, S2C gives operators a foundation they can trust.

Inventory: The Most Underestimated Barrier to Transformation

In a post from TM Forum, we observed that operators across the world are making huge investments in digital transformation but many are slowed by a problem closer to the ground: the inability to know what exactly is deployed in the network, where it is, and how it’s interconnected.

VC4 calls this the “silent blocker” to OSS evolution.

Poor mis-aligned inventory undermines everything. It breaks service activations, triggers unnecessary truck rolls, causes billing mismatches, and frustrates assurance teams. Field engineers often discover real-world conditions that don’t match what’s in the system, while planners and support teams struggle to keep up.  The problem doesn’t just stop with network data.

In many cases, customer records were also out of date or incomplete… and unknown inventory can also be a factor. Details like line types, distance from the central office, or whether loading coils were present often didn’t match reality. For years, this was one of the biggest issues for operators. Customer databases and network systems rarely aligned, and updates often took weeks or months. Engineers had to double-check every record before activating a service, which slowed delivery and increased errors. It was a widespread problem across the industry and one that many operators have been trying to fix ever since.

Over time, some operators tried to close this gap with data audits and manual reconciliation projects, but those fixes never lasted long. Networks change every day, and by the time a cleanup was finished, the data was already out of sync again.

Modern inventory systems take a different approach by keeping network and customer data connected in real time. They:

• Continuously sync with live network data so records stay accurate.
• Automatically validate what’s in the field against what’s stored in the system.
• Update both customer and network records when new services are provisioned.

In short, we’re talking about network auto-discovery and reconciliation, something that Service2Create does exceptionally well. This also applies for unknown records, duplicate records and records with naming inconsistencies/variances.

It is achieved through continuous network discovery that maps physical and logical assets, correlates them against live service models, and runs automated reconciliation to detect discrepancies such as unknown elements, duplicates, or naming mismatches. Operators can review and validate these findings, ensuring that the inventory always reflects the true, real-time network state. A more detailed explanation can be found in the VC4 Auto Discovery & Reconciliation guide which can be downloaded for free.

Service2Create: Unified, Reconciled, and AI-Ready

Service2Create is designed to reflect the actual, current state of the network across physical, logical, service and virtual layers. Whether operators are managing fiber rollout, mobile backhaul, IP/MPLS cores, or smart grids, S2C creates a common source of truth. It models infrastructure end-to-end, automates data reconciliation using discovery, and integrates with orchestration platforms and ticketing tools.

To make the difference clearer here is the table below shows how Service2Create compares with the older inventory systems still used by many operators. Traditional tools depend on manual updates and disconnected data sources, while Service2Create keeps everything synchronized and validated in real time.

Comparison between legacy inventory tools and Service2Create (S2C)

What makes it AI-ready isn’t just compatibility with new tools, it’s data integrity. VC4 understands that AI and automation only perform well when they’re fed accurate, reliable, and real-time data. Without that, AI is flying blind.

Built-in Geographic Information System (GIS) capabilities help visualize the network in geographic context, while no/low-code workflows and APIs support rapid onboarding and customization. More than software, S2C behaves like a data discipline framework for telecom operations.

Service2Create gives operators a current, trusted view of their network, improving accuracy and reducing the time it takes to keep systems aligned.

AI is Reshaping OSS… But only if the Data is Right

AI is driving the next wave of OSS transformation from automated fault resolution and dynamic provisioning to predictive maintenance and AI-guided assurance. But it’s increasingly clear: AI doesn’t replace the need for accuracy; it demands it.

In 2025, one common thread across operators and developers was this: telcos want AI to reduce costs, shorten response times, and simplify networks. According to a GSMA analysis, many operators continue to struggle as their AI systems depend on fragmented and incomplete datasets, which reduces overall model accuracy.

VC4’s message is cutting through: AI is only as useful as the data that feeds it. Service2Create ensures the inventory is trustworthy, reconciled daily with the live network, and structured in a way AI tools can consume. It’s the difference between automating chaos and enabling meaningful, autonomous decisions.

Service2Create has been adopted with operators across Europe and Asia. In national fiber networks, it’s used to coordinate thousands of kilometers of rollout and maintenance. In mixed fixed-mobile environments, it synchronizes legacy copper, modern fiber, and 5G transport into one unified model.

Designed for Operational Reality

VC4 didn’t build Service2Create for greenfield labs or ideal conditions. The platform is designed for real-world operations: brownfield networks, legacy system integrations, and hybrid IT environments. Its microservices-based architecture and API-first design make it modular and scalable, while its no/low-code capabilities allow operators to adapt it without long customization cycles. See the diagram below.

S2C is deployable in the cloud or on-premises and integrates smoothly with Operational Support System / Business Support System (OSS/BSS) ecosystems including assurance, CRM, and orchestration. The result? Operators don’t have to rip and replace their stack – they can evolve it, anchored on a more reliable inventory core.

What Industry Analysts are Saying

In 2025, telco and IT industry experts are also emphasizing that AI’s failure to deliver consistent ROI in telecom is often due to unreliable base systems. One IDC analyst summed it up: “AI isn’t failing because the models are bad, it’s failing because operators still don’t know what’s in their own networks.”

A senior architect from a Tier 1 European CSP added, “We paused a closed-loop automation rollout because our service model was based on inventory we couldn’t trust. VC4 was the first vendor we saw this year that has addressed this directly and built a product around solving it.”

This year the takeaway is clear: clean inventory isn’t a nice-to-have. It’s step one.

Looking Ahead: AI-Driven Operations Powered by Trusted Inventory

VC4 is continuing to enhance Service2Create with capabilities that support AI-led operations. Currently, S2C is enhanced with AI-powered natural language interfaces through Model Context Protocol (MCP) servers. This creates a revolutionary way for users to access their data and makes it also easier for them to do so. Simply ask for what you need, in plain language, and receive instant, accurate results from your systems of record.

The S2C platform now offers multiple synchronized access methods:

1. Natural Language Interface
   • Ask questions in plain language: “Show me network capacity issues in Amsterdam”
   • AI translates requests into precise system queries
   • No training required – productive from day one
2. Direct API Access via MCP
   • Programmatic access using Language Integrated Query (LINQ) expressions
   • Perfect for integrations and automated workflows
   • Industry-standard authentication (IDP)
3. S2C Visual Platform
   • Full-featured GUI for power users
   • Parameterized deeplinks for instant component access
   • Low/no-code configuration capabilities
4. Hybrid Workflows
   • • Start with AI chat, graduate to power tools
     • AI generates deeplinks to relevant S2C dashboards

   Export to Excel/CSV for offline analysis

What It All Comes Down To

Digital transformation sounds exciting on a conference stage, but in the trenches of telecom operations, it starts with simpler questions. Do you know what’s on your network? Can you trust the data? Can your systems work together?

That’s what Service2Create is built for. It helps operators take control of their infrastructure, giving them the confidence to automate when ready and the clarity to troubleshoot when needed.

VC4’s approach isn’t flashy. It’s focused. And that’s what makes it so effective – a direction supported by coverage from Subseacables.net, which reported on VC4’s partnership with AFR-IX, to automate and modernize network operations across the Mediterranean.

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About the Author:

Juhi Rani is an SEO specialist at VC4 B.V. in the Netherlands. She has successfully directed and supervised teams, evaluated employee skills and knowledge, identified areas of improvement, and provided constructive feedback to increase productivity and maintain quality standards.

Juhi earned a B. Tech degree in Electronics and Communications Engineering from RTU in Jaipur, India in 2015.

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Ajay Lotan Thakur and Sridhar Talari Rajagopal are esteemed members of the IEEE Techblog Editorial Team.  Read more about them here.

AT&T reported a 1.6% increase in third-quarter revenue to $30.7 billion, driven by its convergence strategy which combines wireless and fiber services. This strategy attracted profitable customers, as evidenced by 405,000 postpaid phone net additions and 550,000 new subscribers for AT&T’s advanced broadband services, including Fiber and Internet Air. The growth in these areas offset a decline in business wireline revenue. 

“We have the key building blocks in place to give our customers the best connectivity experience in the industry and we’re winning the race to lead in convergence,” said John Stankey, AT&T Chairman and CEO.

“We continue to add highly-profitable customers that are choosing AT&T for all their connectivity needs on the country’s fastest and largest wireless and fiber networks. It’s clear our differentiated investment-led strategy is working, and we remain on track to achieve all of our 2025 consolidated financial guidance.”

Here are a few AT&T 3Q 2025 highlights:

IEEE Techblog has called attention to the many challenges and risks inherent in the current mega-spending boom for AI infrastructure (building data centers, obtaining power/electricity, cooling, maintenance, fiber optic networking, etc) .  In particular, these two recent blog posts:

AI Data Center Boom Carries Huge Default and Demand Risks and

Big tech spending on AI data centers and infrastructure vs the fiber optic buildout during the dot-com boom (& bust)

This article focuses on the tremendous debt that Open AI, Oracle and newer AI cloud companies will have to obtain and the huge hurdles they face to pay back the money being spent to build out their AI infrastructures. While the major hyperscalers (Amazon, Microsoft, Google and Meta) are in good financial shape and won’t need to take on much debt, a  new wave of  heavily leveraged firms is emerging—one that could reshape the current AI boom.

OpenAI, for example, is set to take borrowing and large-scale contracts to an unbelievable new level. OpenAI is planning a vast network of data centers expected to cost at least $1 trillion over the coming years. As part of this effort, the company signed a $300 billion, five-year contract this month under which Oracle “is to set up AI computing infrastructure and lease it to OpenAI.”   In other words, OpenAI agreed to pay Oracle $300 billion over five years for the latter company to build out new AI data centers.  Where will OpenAI get that money?  It will be be burning billions in cash and won’t be profitable till 2029 at the earliest.

To fulfill its side of the deal, Oracle will need to invest heavily in infrastructure before receiving full payment—requiring significant borrowing. According to a recent note from KeyBanc Capital Markets, Oracle may need to borrow $25 billion annually over the next four years.  This comes at a time when Oracle is already carrying substantial debt and is highly leveraged. As of the end of August, the company had around $82 billion in long-term debt, with a debt-to-equity ratio of roughly 450%. By comparison, Alphabet—the parent company of Google—reported a ratio of 11.5%, while Microsoft’s stood at about 33%.

Companies like Oracle and other less-capitalized AI players such as CoreWeave have little choice but to take on more debt if they want to compete at the highest level. Nebius Group, another Nasdaq-listed AI cloud provider similar to CoreWeave, struck a $19.4 billion deal in September to provide AI computing services to Microsoft. The company announced it would finance the necessary capital expenditures “through a combination of its cash flow and debt secured against the contract.”

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Sidebar – Stock market investors seem to love debt and risk:

CoreWeave’s shares have more than tripled since its IPO in March, while Nebius stock jumped nearly 50% after announcing its deal with Microsoft. Not to be outdone, Oracle’s stock surged 40% in a single day after the company disclosed a major boost in projected revenue from OpenAI in its infrastructure deal—even though the initiative will require years of heavy spending by Oracle.

–>What’s so amazing to this author is that OpenAI selected Oracle for the AI infrastructure it will use, even though the latter is NOT a major cloud service provider and is certainly not a hyperscaler.  For Q1 2025, it held about 3% market share, placing it #5 among global cloud service providers.

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Data Center Compute Server & Storage Room;  iStock Photo credit: Andrey Semenov

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Among other new AI Cloud players:

• CyrusOne secured nearly $12 billion in financing (much in debt) for AI / data center expansion. Around $7.9 billion of that is for new data center / AI digital infrastructure projects in the U.S.
• SoftBank / “Stargate” initiative: The Stargate project (OpenAI + Oracle + SoftBank + MGX, etc.) is being structured with major debt. The plan is huge—around $500 billion in AI infrastructure and supercomputers, and financing is expected to be ~70% debt, ~10% equity among the sources.
• xAI (Elon Musk’s AI firm):  xAI raised $10 billion in combined debt + equity. Specifically ~$5 billion in secured notes / term loans (debt), with the remainder in equity. The money is intended to build out its AI infrastructure (e.g. GPU facilities / data centers).

There’s growing skepticism about whether these companies can meet their massive contract obligations and repay their debts. Multiple recent studies suggest AI adoption isn’t advancing as quickly as supporters claim. One study found that only 3% of consumers are paying for AI services. Forecasts projecting trillions of dollars in annual spending on AI data centers within a few years appear overly optimistic.

OpenAI’s position, despite the hype, seems very shaky. D.A. Davidson analyst Gil Luria estimates the company would need to generate over $300 billion in annual revenue by 2030 to justify the spending implied in its Oracle deal—a steep climb from its current run rate of about $12 billion. OpenAI has financial backing from SoftBank and Nvidia, with Nvidia pledging up to $100 billion, but even that may not be enough.  “A vast majority of Oracle’s data center capacity is now promised to one customer, OpenAI, who itself does not have the capital to afford its many obligations,” Luria said.

Oracle could try to limit risk by pacing its spending with revenue received from OpenAI.  Nonetheless, Moody’s flagged “significant” risks in a recent note, citing the huge costs of equipment, land, and electricity. “Whether these will be financed through traditional debt, leases or highly engineered financing vehicles, the overall growth in balance sheet obligations will also be extremely large,” Moody’s warned. In July (two months before the OpenAI deal), it gave Oracle a negative credit outlook.

There’s a real possibility that things go smoothly. Oracle may handle its contracts and debt well, as it has in the past. CoreWeave, Nebius, and others might even pioneer new financial models that help accelerate AI development.

It’s very likely that some of today’s massive AI infrastructure deals will be delayed, renegotiated, or reassigned if AI demand doesn’t grow as fast as AI spending. Legal experts say contracts could be transferred.  For example, if OpenAI can’t make the promised, Oracle might lease the infrastructure to a more financially stable company, assuming the terms allow it.

Such a shift wouldn’t necessarily doom Oracle or its debt-heavy peers. But it would be a major test for an emerging financial model for AI—one that’s starting to look increasingly speculative.  Yes, even bubbly!

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References:

https://www.wsj.com/tech/ai/debt-is-fueling-the-next-wave-of-the-ai-boom-278d0e04

https://www.crn.com/news/cloud/2025/cloud-market-share-q1-2025-aws-dips-microsoft-and-google-show-growth

AI Data Center Boom Carries Huge Default and Demand Risks

Big tech spending on AI data centers and infrastructure vs the fiber optic buildout during the dot-com boom (& bust)

Last week’s announcement that Echostar/ Dish Network will sell $23 billion worth of spectrum licenses to AT&T was very bad news for Mavenir.  As a result of that deal, Dish Network’s 5G Open RAN network, running partly on Mavenir’s software, is to be decommissioned.  Dish Network had been constructing a fourth nationwide U.S. mobile network with new Open RAN suppliers – one of the only true multi-vendor Open RANs worldwide.

Credit: Kristoffer Tripplaar/Alamy Stock Photo

Echostar’s decision to shut down its 5G network marks a very sad end for the world’s largest multivendor open RAN and will have ramifications for the entire industry. “If you look at all the initiatives, what the US government did or in general, they are the only ones who actually spent a good chunk of money to really support open RAN architecture,” said Pardeep Kohli, the CEO of Mavenir, one of the vendors involved in the Dish Network project. “So now the question is where do you go from here?”

As part of its original set of updates on 5G network plans, Dish revealed it would host its 5G core – the part that will survive the spectrum sale – in the public cloud of AWS. And the hyperscaler’s data facilities have also been used for RAN software from Mavenir installed on servers known as central units.

Open RAN enters is in the fronthaul interface between Mavenir’s DU software and radios provided by Japan’s Fujitsu. Its ability to connect its software to another company’s radios validates Mavenir’s claims to be an open RAN vendor, says Kohli. While other suppliers boast compatibility with open RAN specifications, commercial deployments pairing vendors over this interface remain rare.

Mavenir has evidently been frustrated by the continued dominance of Huawei, Ericsson and Nokia, whose combined RAN market share grew from 75.1% in 2023 to 77.5% last year, according to research from Omdia, an Informa company. Dish Network alone would not have made a sufficient difference for Mavenir and other open RAN players, according to Kohli. “It helped us come this far,” he said. “Now it’s up to how far other people want to take it.” A retreat from open RAN would, he thinks, be a “bad outcome for all the western operators,” leaving them dependent on a Nordic duopoly in countries where Chinese vendors are now banned.

“If they (telcos) don’t support it (multi-vendor OpenRAN), and other people are not supporting it, we are back to a Chinese world and a non-Chinese world,” he said. “In the non-Chinese world, you have Ericsson and Nokia, and in the Chinese world, it’s Huawei and ZTE. And that’s going to be a pretty bad outcome if that’s where it ends up.”

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Open RAN x-U.S.:

Outside the U.S., the situation is no better for OpenRAN. Only Japan’s Rakuten and Germany’s 1&1 have attempted to build a “greenfield” Open RAN from scratch. As well as reporting billions of dollars in losses on network deployment, Rakuten has struggled to attract customers. It owns the RAN software it has deployed but counts only 1&1 as a significant customer. And Rakuten’s original 4G rollout was not based on the industry’s open RAN specifications, according to critics. “They were not pure,” said Mavenir’s Kohli.

Plagued by delays and other problems, 1&1’s rollout has been a further bad advert for Open RAN. For the greenfield operators, the issue is not the maturity of open RAN technology. Rather, it is the investment and effort needed to build any kind of new nationwide telecom network in a country that already has infrastructure options. And the biggest brownfield operators, despite professing support for open RAN, have not backed any of the the new entrants.

RAN Market Concentration:

• Stefan Pongratz, an analyst with Dell’Oro, found that five of six regions he tracks are today classed as “highly concentrated,” with an HHI score of more than 2,500. “This suggests that the supplier diversity element of the open RAN vision is fading,” wrote Pongratz in a recent blog.
• A study from Omdia (owned by Informa), shows the combined RAN market share of Huawei, Ericsson and Nokia grew from 75.1% in 2023 to 77.5% last year. The only significant alternative to the European and Chinese vendors is Samsung, and its market share has shrunk from 6.1% to 4.8% over this period.

Concentration would seem to be especially high in the U.S., where Ericsson now boasts a RAN market share of more than 50% and generates about 44% of its sales (the revenue contribution of India, Ericsson’s second-biggest market, was just 4% for the recent second quarter).  That’s partly because smaller regional operators previously ordered to replace Huawei in their networks spent a chunk of the government’s “rip and replace” funds on Ericsson rather than open RAN, says Kohli. Ironically, though, Ericsson owes much of the recent growth in its U.S. market share to what has been sold as an open RAN single vendor deal with AT&T [1.]. Under that contract, it is replacing Nokia at a third of AT&T’s sites, having already been the supplier for the other two thirds.

Note 1. In December 2023, AT&T awarded Ericsson a multi-year, $14 billion Open RAN contract to serve as the foundation for its open network deployment, with a goal of having 70% of its wireless traffic on open platforms by late 2026. That large, single-vendor award for the core infrastructure was criticized for potentially undermining the goal of Open RAN which was to encourage competition among multiple network equipment and software providers. AT&T’s claim of a mulit-vendor network turned out to be just a smokescreen.  Fujitsu/1Finity supplied third-party radios used in AT&T’s first Open RAN call with Ericsson.

Indeed, AT&T’s open RAN claims have been difficult to take seriously, especially since it identified Mavenir as a third supplier of radio units, behind Ericsson and Japan’s Fujitsu, just a few months before Mavenir quit the radio unit market. Mavenir stopped manufacturing and distributing Open RAN radios in June 2025 as part of a financial restructuring and a shift to a software-focused business model. 

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Arguably, Kohli describes Echostar/ Dish Network as the only U.S. player that was spending “a good chunk of money to really support open RAN architecture.”

Ultimately, he thinks the big U.S. telcos may come to regret their heavier reliance on the RAN gear giants. “It may look great for AT&T and Verizon today, but they’ll be funding this whole thing as a proprietary solution going forward because, really, there’s no incentive for anybody else to come in,” he said.

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References:

https://www.lightreading.com/open-ran/echostar-rout-leaves-its-open-ran-vendors-high-and-dry

https://www.lightreading.com/open-ran/mavenir-ceo-warns-of-ericsson-and-nokia-duopoly-as-open-ran-stalls

AT&T to to buy spectrum Licenses from EchoStar for $23 billion

AT&T to deploy Fujitsu and Mavenir radio’s in crowded urban areas

Dell’Oro Group: RAN Market Grows Outside of China in 2Q 2025

Mavenir and NEC deploy Massive MIMO on Orange’s 5G SA network in France

Spark New Zealand completes 5G SA core network trials with AWS and Mavenir software

Mavenir at MWC 2022: Nokia and Ericsson are not serious OpenRAN vendors

Ericsson expresses concerns about O-RAN Alliance and Open RAN performance vs. costs

Nokia and Mavenir to build 4G/5G public and private network for FSG in Australia