Mobile World Live (MWL) brings you our top three picks of the week as rivals Vodafone Spain and MasOrange agreed a fibre JV, reports claimed Amazon lost $25 billion across several years in its devices unit and the APAC region was tipped for big economic gains from mobile tech.
Spain rivals set out shared fibre network plan
What happened: Zegona Communications-owned Vodafone Spain and MasOrange shook hands on a non-binding agreement on national fibre network sharing, a deal which would see the companies establish a new entity geared towards delivering a “best-in-class” fibre network in Spain.
Why it matters: If the deal materialises, the pair are aiming to cover 11.5 million premises with “the most modern fibre optic network”, which the partners claim will allow for rapid adoption of new technologies. MasOrange CEO Meinrad Spenger told analysts on an earnings call the move would maximise “usage to increase efficiency of our existing fiber networks”. Under the terms proposed MasOrange will have a majority ownership of 50 per cent in the new business, a third-party investor is expected to take 40 per cent, while Vodafone Spain will hold the remaining 10 per cent.
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Amazon lost $25B on Alexa-powered devices
What happened: The Wall Street Journal (WSJ) revealed a commercial strategy by former Amazon CEO Jeff Bezos led to a $25 billion loss in the company’s devices department between 2017 and 2021, attributed to an attempt to sell products at a low cost and then provide additional services.
Why it matters: WSJ reported Amazon’s strategy uses a “downstream impact” business model which defines the value of a product based on how users spend within its ecosystem after the purchase. A spokesperson told MWL it measures and reviews its businesses “through different lenses”, adding “one such lens is how each of our various businesses can help each other grow”. Amazon is reportedly preparing the launch of a genAI-powered Alexa as part of a plan to make up for the $25 billion in losses.
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APAC region tipped for $1T boost from mobile industry
What happened: The GSMA Mobile Economy APAC 2024 report predicted the mobile industry’s contribution to Asia Pacific economies will surpass $1 trillion in 2030, with rapid 5G adoption rates cited as a strong growth factor.
Why it matters: The industry association expects standalone (SA) 5G in seven nations in the region to help boost the growth of the mobile economy, with 5G projected to add almost $130 billion in 2030. Mobile internet users are also tipped to grow from 1.4 billion in 2023 to 1.8 billion by 2030. Julian Gorman, head of Asia Pacific at GSMA, said the “growth in Asia Pacific’s mobile internet usage over the past decade has been nothing short of remarkable and the region continues to innovate at a pace”, adding the new services and adoption in the market are “bringing new use cases to life that the rest of the world can learn from”.
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