Telefonica spotted an opportunity in growing industrial demand for process optimisation services which it hopes to cash in on through an investment by its domestic unit in Spanish specialist OGA.

The operator paid an undisclosed amount for a 10% stake in OGA, a so-called deep tech company specialising in using AI and operational information to optimise processes in sectors including logistics, retail, energy, health and defence.

Javier Lopez Gutierrez, director of Telefonica Espana’s Defence and Security unit, said the operator hopes to strengthen its industrial AI offer, “with a special focus on the defence sector”.

OGA employs AI, modelling and simulations to work out optimal processes for businesses providing vital services. CEO Juan Carlos Rubio hopes Telefonica’s backing will help it grow its capabilities to the benefit of Spanish and European defence and security sectors.

Telefonica explained it is adding OGA’s services to its range for businesses and public administrations, but noted it is not taking a seat on the company’s board to preserve its independence.

The operator made its investment after working with OGA for the past two years.

Business focus
Telefonica separately noted B2B is proving a lucrative sector after attracting more than 800 domestic organisations to Titan Connect, a marketplace of connectivity services it launched in January for businesses and the public sector.

The set-up pools standalone 5G, fibre and satellite connectivity with a host of systems spanning cloud and edge computing, observation services using AI and power supplies.

Telefonica pitches the service on a greater ability to keep businesses and public sector organisations connected during disruptions.

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UK operator Virgin Media O2 (VMO2) flagged an around 20% improvement in spectral efficiency by using AI technology in the RAN during a test with Nokia at a busy transport hub, in what it described as first of its kind in the nation.

The test used AI to predict and optimise 5G radio resources during changing network conditions and levels of demand on a site serving customers around London Paddington rail station.

VMO2 noted use of the technology meant it could carry a greater amount of data using existing spectrum resources and deliver “significant throughput gains” during periods of high demand.

It asserted the results showcase how it can use AI to support growing traffic volumes, faster downloads and higher quality streaming, while reducing buffering in busy locations.

VMO2 CTO Jeanie York said as demand for data keeps growing “we need smarter ways to make the most of the spectrum and infrastructure we already have”.

“This live trial with Nokia showed how AI can improve network efficiency and help us respond more effectively to changing customer demand. By making better use of existing network resources, we can deliver a better experience for customers while supporting future traffic growth.”

The operator noted the project with Nokia is part of an ongoing network transformation plan.

Nokia president of mobile networks Emma Falck added the test “demonstrates how AI is moving from experimentation to delivering measurable benefits in live mobile networks”.

She added the collaboration “shows the significant potential of AI-native networks to enhance customer experiences while improving operational efficiency”.

The news is the latest in what is a hot mobile industry topic of use of AI in the RAN and comes a week after a spate of partner releases involving Nokia’s work in the segment alongside Nvidia.

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