• Nokia names new head for Network Infrastructure division
• Telefónica offloads its Ecuador business to Millicom
• BT’s CEO hints at deeper AI-fuelled cost cuts

In today’s industry news roundup: David Heard has big shoes to fill at Nokia; Millicom buys another Telefónica business in Latin America; BT’s CEO Allison Kirkby addresses an issue that most other telco execs shy away from; and much more!

Nokia is to lose one of its most experienced and successful senior leaders at the end of this month when Federico Guillén steps down from his role as president of the vendor’s Network Infrastructure business group and from the group leadership team on 30 June 2025 ahead of his retirement at the end of 2025. He is being replaced by David Heard, currently the chief strategic growth officer of the Network Infrastructure unit, a role he took on when, in February this year, Nokia completed the $2.3bn acquisition of optical network infrastructure vendor Infinera, where Heard was CEO. Before joining Infinera, Heard held senior positions at various tech companies in the US including JDSU, BigBand Networks, Somera Communications, Lucent and AT&T. Justin Hotard, who became president and CEO of Nokia in April, praised Guillén for his “exceptional leadership” of Network Infrastructure – and that doesn’t even tell the whole story. While Nokia’s mobile division suffered business and technical setbacks in recent years, the Network Infrastructure division (optical, routing, fixed broadband) got stronger, arguably, propping the company up. And now, with a former Intel executive who has a datacentre and AI background at the helm of the company, it’s hard to see that the Network Infrastructure division isn’t going to be at the heart of the company’s future. Guillén saw the potential in Nokia’s fixed portfolio and has been a shrewd leader for that division – Heard is stepping into formidable shoes. 

Telefónica’s exit from Latin America continues with news that it is selling Otecel – aka Telefónica Ecuador – for $380m to Millicom, the network operator that is looking to scale up even further in the region and which struck a deal only weeks ago to acquire Telefónica’s operations in Uruguay for $440m. “This transaction is part of the Telefónica Group’s asset portfolio management policy and is aligned with its strategy of reducing exposure in Hispanoamerica,” noted Telefónica in a brief announcement to investors. News of the deals in Ecuador and Uruguay comes in the wake of similar deals in Argentina, Colombia and Peru (see this article), while reports suggest a sale process is also underway for the telco’s businesses in Mexico and Chile. Ultimately, Telefónica plans to sell off all of its operations in Latin America apart from its large and growing business in Brazil. Millicom, meanwhile, is getting stronger and stronger in the region. In its announcement about the Ecuador deal, Marcelo Benitez, CEO of Millicom, commented: “This acquisition reflects our long-term confidence in Latin America and our commitment to purposeful, sustainable growth. Ecuador offers a dynamic and growing digital market within a stable, dollarised economy, making it a natural fit for Millicom’s strategy. By expanding our presence in South America, we strengthen our platform for innovation, diversification and long-term value creation.”

Allison Kirkby, the CEO of UK incumbent telco BT Group, has dared to say what many others in the telecom sector prefer not to discuss – advances in AI technology and automation may lead to even greater reductions in workforces in years to come. Even before Kirkby took the helm at BT last year, the UK operator had made it clear that the introduction of AI-enabled processes would lead to an erosion in headcount at the UK telco over a number of years: The headline figure it announced in May 2023, when BT employed about 130,000 staff and contractors, was of job cuts of up to 55,000 by the end of the current decade as it strived for a more “lean, agile and efficient organisation”. That 55,000 number was the top end of a predicted range with the cuts impacted by a broad range of factors, including a reduced need for network rollout staff as fibre access deployments were completed, though BT noted that, of the total, it expected about 10,000 roles to be affected by “digitisation, automation… using technology to do things much more efficiently.” Now, with the number and range of available AI tools that enable workforce efficiencies growing by the week, Kirkby has told the Financial Times (subscription required) that “depending on what we learn from AI . . . there may be an opportunity for BT to be even smaller by the end of the decade.” While there are pros and cons related to automation and headcount reductions, there are not currently enough open and pragmatic discussions in the telecom sector about the potential impact of growing AI use on staffing numbers, so Kirkby and the likes of TelcoDR CEO Danielle Rios, who addressed the issue head-on in this recent blog, are to be applauded for bringing the topic into the open – it needs to be discussed, no matter how uncomfortable it is.  

In what appears to be a serious announcement, the “team from Trump Mobile, Donald Trump Jr. and Eric Trump unveil T1 Mobile, a transformational, new cellular service designed to deliver top-tier connectivity, unbeatable value and all-American service for our nation’s hardest-working people.” Yes, the sons of the current US president are hoping to build a new mobile services business and you can be guaranteed they won’t be bundling in any Chinese handsets. “I’m incredibly excited to step into this new digital space,” stated Eric Trump. “Hard-working Americans deserve a wireless service that’s affordable, reflects their values, and delivers reliable quality they can count on. We’re especially proud to offer free long-distance calling to our military members and their families – because those serving overseas should always be able to stay connected to the people they love back home.” Donald Trump Jr. added: “Trump Mobile is going to change the game. We’re building on the movement to put America first, and we will deliver the highest levels of quality and service. Our company is based right here in the United States because we know it’s what our customers want and deserve.” Trump Mobile will offer 5G service through all three major US cellular carriers – AT&T, T-Mobile US and Verizon – with a “flagship” plan priced at $47.45 per month. And with that, we’ll hang up for today…

– The staff, TelecomTV