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Explore the rise of edge AI: smaller data centres, faster networks, and sustainable power solutions. See why the future of digital infrastructure is distributed and intelligent | READ FULL ARTICLE

The UK’s AI ambitions face gridlock. Discover how power shortages, costly electricity, and rack density challenges threaten data centre growth – and what’s being done | READ FULL ARTICLE

Introduction In today's interconnected world, submarine cable networks form the backbone of global communication, enabling the seamless exchange of data across continents. While these undersea cables are the epitome of engineering marvels, their effectiveness hinges not only on the ‘wet' network in the seabed, but also on the often-overlooked terrestrial network backhaul. The terrestrial backhaul — the infrastructure that connects submarine cable landing stations to inland data centres and networks — is as crucial as the submarine network itself. Proper management and handling of terrestrial backhaul partners is essential to ensure the optimal performance, cost-efficiency, and security of all submarine networks. The Vital Importance of Backhaul Management Submarine networks are only as strong as their weakest link, and the terrestrial backhaul is a pivotal link in this ecosystem. Without a well-designed and managed backhaul, even the most sophisticated submarine network can face inefficiencies, bottlenecks, and vulnerabilities.  Key reasons why managing terrestrial network backhaul partners is so critical include: Cost Optimisation Terrestrial backhaul costs constitute a significant portion of the total network expenditure. Poorly negotiated contracts or suboptimal supplier relationships can inflate operational costs, diminishing the overall profitability of submarine networks. Network Performance The design, quality, and reliability of terrestrial backhaul networks directly affect latency, throughput, and overall user experience. A poorly managed partner ecosystem can lead to performance degradation, affecting service delivery. Security and Risk Mitigation The terrestrial segment is often more vulnerable to physical and cyber threats compared to submarine cables. Effective partner management ensures that security measures are prioritised, and risks are mitigated. Scalability and Flexibility As data demands grow, submarine networks must scale effectively. Well-managed terrestrial backhaul partners enable seamless scaling and adaptability to meet changing requirements.

Pioneering Technologies for the Future of Urban Transformation Smart cities might sound like a utopian vision from the 1950s; something that sounds already out-of-date and perhaps even naive in our current geopolitical climate. But as urban spaces gradually implement a a series of technological leaps, the smart city emerges as a potential reality, offering a new way to unite communications with infrastructure via real-time feedback. Smart cities could dramatically enhance our quality of life, efficiency, and environmental stewardship. Given that cities are significant contributors to global emissions — responsible for approximately 70% of greenhouse gases — they will play a critical role in reaching net zero. Reflecting insights from the last Smart City Expo in Barcelona (November 2024) and a range of ambitious projects across the UK, this article delves into the strategic alignment of technology, infrastructure, and sustainability shaping today's urban landscapes. What Defines a Smart City? A smart city is fundamentally ‘a municipality that uses information and communication technology to increase operational efficiency, share information with the public, and improve the quality of government services and citizen welfare.’ While definitions vary, the overarching mission is to optimise city functions, drive economic growth, and enhance the quality of life through technology and data analysis. Smart city initiatives typically require three critical components: Networks of sensors and citizen participation to collect data Connectivity linking these networks to government systems Open data sharing to make results, changes, and improvements accessible to the public Developing this underlying infrastructure is complex and expensive. Crucially, it depends on strong relationships between government, the private sector, and citizens, as most of the work to create and maintain these data-driven environments happens through collaboration and public-private partnerships.

Edge computing, 5G, IoT and AI are contributing to a paradigm shift in retail that will imagine new possibilities made commercially viable by real-time data processing. In this article, we look at the convergence of these technologies and how they will offer a radical new vision of our high street by offering customers exciting new experiences that can rejuvenate in-store shopping and retail spaces. First, in Part 1, we look briefly at each technology and discuss the technical advantages they offer and how this supports new types of customer experience. Then in Part 2 we look at industry predictions about how the retail space might evolve over the next decade. Part I Edge Computing Edge computing involves processing data near its source rather than in a centralised location. In retail, this means deploying IT infrastructure in or near store venues where consumers interact with products. This ecosystem enables real-time decision-making and personalised customer experiences by analysing data from sensors and IoT devices within the store. Edge computing is a concept that applies to an integrated network of processing units, data centres and sensors that handle data close to the user. Micro Data Centres The compute part of edge computing needs to be housed in proper data centre facilities, to ensure that the expensive server equipment, especially those used by AI systems, are kept in the optimum conditions — this helps keep maintenance and operational costs down. Even though edge compute systems can be relatively compact, retailers will mostly be unwilling to give up valuable floor space for the IT equipment and its associated infrastructure (like cooling and electrical systems), so the more likely scenario is that smaller data centres will be used that can be located close by but in back-of-house areas, such as loading bays, car parks, warehouse areas and so on. These will often be operated as cloud services so that multiple retailers can benefit from edge compute without having to bear the upfront capital cost, and, most importantly, the ongoing maintenance required to keep them operational. 5G 5G networks offer high-speed connectivity and low latency, which are crucial for supporting advanced retail technologies like augmented reality (AR) and Internet of Things (IoT) applications. The increased bandwidth allows for seamless integration of online and offline shopping experiences, enabling features like virtual try-ons and real-time product comparisons. This connectivity supports personalised marketing strategies that take place in real time and deliver targeted promotions in store. Internet of Things (IoT) The Internet of Things (IoT) refers to a network of interconnected devices, machines, and sensors that collect, store, and transfer data over the internet. These devices are embedded with sensors, software, and network connectivity, allowing them to communicate with each other and with other internet-enabled systems. IoT plays a crucial role in enhancing the retail experience by providing real-time data on customer behaviours, security risks, buying preferences, inventory supply levels and daily operations. IoT devices will principally include cameras but also a range of other sensors such as RFID tags and smart shelves.

How to Connect Rural Britain and the Hardest-to-Reach Customers The lack of rural connectivity in the UK has become a pressing issue , creating a digital divide that impacts individuals, businesses and farmers. Modern society relies on digital services, and the lack of access to reliable, high-speed internet is a pervasive social issue that results in digital exclusion for communities, depriving them of fundamental services like online banking, health care, and education. This lack of access has a further impact on social mobility, particularly when around 37% of workers in the UK spend at least one day a week working remotely. In 2021 the Public Accounts Committee published a report on improving broadband which states ‘1.6 million UK premises, mainly in rural areas, cannot yet access superfast [internet] speeds’. Since then, we are happy to report that there has been some progress. As of early 2025, approximately 98% of all UK households have access to high-speed broadband (defined as speeds of 30 Mbps or higher) . In rural areas, that figure is 89% — a decent improvement in the last few years. However, the gap is larger when we consider gigabit speeds: only 52% of rural households can connect to gigabit-capable broadband, compared to 87% in urban areas There is still a significant gap to plug, but things are moving in the right direction. This allows the focus to shift, in part, to the next phase: establishing a modern digital infrastructure which can support a digital-first strategy in public services, as well as encouraging local innovation, such as smart city programmes. The hope is that this infrastructure will drive inward investment which then create a virtuous circle, where as more infrastructure is built, more innovative businesses are attracted to the region, which in turn drives demand for more advanced infrastructure. In this article we look at the improvements in rural connectivity and the programmes and innovations which are most likely to have a social impact.

"Is it Snowing in Space?!" “Is it snowing in space?!” Asks a disgruntled Bill Murray in the film Groundhog Day when he is told that he cannot call out from the snowbound town of Punxsutawney, Pennsylvania. If there is a remake, Bill might not have to worry: signal dead zones may soon be a thing of the past due to recent advancements in satellite technology. Whereas the old picture of satellite communications was a scientist in the wilderness with a big clunky antenna, these days the technological payload is all in space. Recent advancements such as Low Earth Orbit (LEO) satellites, advanced beamforming, and the use of mobile spectrum bands means that any phone supporting 4G LTE can potentially receive satellite data directly. This integration of satellite and terrestrial networks is set to reshape the mobile industry, creating both opportunities and challenges for traditional mobile network operators (MNOs) and mobile virtual network operators (MVNOs). In this article we give an overview of the technological advancements, the major players in the market, and then consider the effects this will have on traditional wholesale mobile market structures; concluding with the emerging opportunities for new revenue and growth. The Evolution of Satellite Connectivity Historically, satellite communications operated independently from terrestrial networks, serving specialised markets with limited scalability and high entry barriers. However, recent advancements, particularly in Low Earth Orbit (LEO) satellite technology, have dramatically altered this scenario. The most well-known example is obviously SpaceX, which has played a pivotal role in democratising space: reducing barriers to entry and making satellite connectivity more scalable, performant, and accessible. SpaceX and other companies have found innovative ways to dramatically reduce costs. Since Sputnik 1 in 1957, launching payloads into space has been prohibitively expensive, with costs exceeding $100,000 per kilogram in the 1960s and averaging $16,000/kg for heavy payloads from 1970 to 2010. SpaceX’s innovations have brought these costs down through reusable rockets, vertical integration, economies of scale, and advancements in materials and manufacturing processes: leading to price points as low as $100 per kilogram in recent years. However, cost is just one of the barriers. The real gambit has been provided by Low Earth Orbit (LEO) satellites, which typically orbit at altitudes ranging from approximately 160 to 2,000 km and offer low-latency, high-speed connectivity — making them ideal for real-time applications and direct-to-device communications. The latest generation of technologies now enable LTE mobile phones to connect directly to satellites without specialised hardware, marking a significant milestone in mobile communications. The Major Satellite-to-Cell Players While SpaceX's Starlink has garnered the most attention, several other major companies are actively developing satellite-to-cell technologies and forming strategic partnerships with terrestrial mobile operators. As of April 2024, Starlink had established 15 partnerships with mobile carriers globally — including T-Mobile in the US. T-Mobile has structured its beta program to begin with text messaging capabilities, gradually expanding to include picture messages, data connectivity, and eventually voice calls. As of February 2025, it is reported that 7,086 Starlink satellites are in orbit, with 7,052 being operational. AST SpaceMobile has emerged as a significant innovator, achieving a historic milestone in April 2023 with the first-ever two-way voice call directly with an unmodified smartphone, via their BlueWalker 3 satellite. AST SpaceMobile launched its first five commercial satellites, the BlueBird 1-5 mission, on September 12, 2024, aboard a SpaceX Falcon 9 rocket. Lynk Global represents another significant player. In a recent expense report, it revealed that each satellite costs around $400,000 to build and up to $815,000 to launch into space. They hope to have up to 1000 satellites (for full continuous broadband coverage) in orbit by 2025 and 32 mobile network operator (MNO) partnerships by the end of 2025. The company has successfully demonstrated text messaging capabilities from satellites to standard cellular devices and continues to expand its constellation and service offerings. Huawei has partnered with China Telecom to demonstrate satellite-to-phone messaging capabilities, while Apple has worked with Globalstar to implement emergency satellite messaging features in recent iPhone models. Implications for Traditional Wholesale Mobile Market Structures Traditionally, the wholesale mobile market has been structured around MNOs, MVNOs, and wholesale aggregators. Revenue streams have typically included MVNO wholesale pricing, and IoT and machine-to-machine (M2M) solutions. However, the rise of satellite-to-cell technology poses potential threats to this established model. Disintermediation of MNOs and MVNOs Satellite-to-cell connectivity introduces the potential for disintermediation, where control traditionally held by MNOs could become fragmented across multiple parties in the value chain. As satellite providers increasingly offer direct-to-device services, traditional operators risk losing their central role in network management and customer relationships. Pricing Pressure on Wholesale Markets The increased availability and competition from satellite connectivity providers could exert downward pressure on wholesale pricing. As satellite services become more affordable and accessible, traditional wholesale providers may face challenges in maintaining their pricing structures and profitability. Competitive Pressure in IoT and Enterprise Applications Satellite connectivity is particularly well-suited for IoT and enterprise applications, especially in remote or challenging environments. As satellite-to-cell technology matures, traditional wholesale providers may face intensified competition in these segments, necessitating strategic adjustments to remain competitive. Emerging Opportunities in Satellite-to-Cell Connectivity Despite these challenges, the integration of satellite connectivity into mobile networks also presents substantial opportunities for innovation and growth. Forward-thinking operators can leverage satellite-to-cell technology to develop new business models and revenue streams. Hybrid Terrestrial-Satellite Subscription Models Providing Ubiquitous Connectivity Operators can offer hybrid subscription plans that seamlessly integrate terrestrial and satellite connectivity. Such models provide customers with uninterrupted coverage, enhancing user experience and creating differentiated service offerings. Wholesale Satellite Resale for MVNOs Satellite-to-cell technology opens new avenues for MVNOs to expand their service portfolios. By reselling satellite connectivity, MVNOs can offer enhanced coverage and reliability, particularly in underserved or remote regions, thereby attracting new customer segments. IoT and Enterprise-Focused Applications Satellite connectivity is a natural fit for IoT and enterprise applications, such as remote monitoring, asset tracking, and industrial automation. Mobile operators can forge strategic partnerships with satellite providers to deliver specialised solutions for these markets, tapping into new revenue opportunities. Emergency-Only and Disaster Recovery Plans Satellite-to-cell technology can play a crucial role in emergency and disaster recovery scenarios, providing a reliable backup to terrestrial networks when they are unavailable or overwhelmed. Operators can develop emergency-only plans that leverage satellite connectivity to ensure critical communications during crises. Conclusion Satellite-to-cell technology represents a convergence of space and terrestrial communications systems that promises to fundamentally alter global connectivity markets and players. The dramatic reduction in launch costs by a factor of 20 has enabled the deployment of massive satellite constellations that were previously economically unfeasible. The competitive landscape continues to evolve rapidly, with SpaceX, AST SpaceMobile, and Lynk, and traditional telecommunications companies all pursuing various technological approaches and business models. Commercial text messaging services are already becoming available through beta programs, with video calling capabilities demonstrated and voice calls progressing toward wider availability. The integration of 5G standards with satellite networks continues to advance through collaborative industry initiatives, with projections of a $50 billion market by 2032. As this technology continues to mature throughout 2025 and beyond, it promises to eliminate mobile dead zones and create new application possibilities that were previously unimaginable. The future of mobile communications is undoubtably hybrid: blending terrestrial and non-terrestrial networks into seamless connectivity solutions that follow users wherever they go. This has wide reaching implications for connectivity in remote and isolated regions, and offers perhaps the fastest and most cost-efficient route to bridging the digital divide. It will also transform how we respond in disaster zones and hazardous areas — increasing the ability to protect and save lives with faster and safer humanitarian and emergency services.

The Satellite Industry is in a Period of Momentous Transformation The satellite industry is going through a period of momentous transformation with the emergence of new entrants and new technologies in every segment of the value chain. For decades satellite communications have been dominated by a handful of GEO satellite manufacturers, satellite operators and ground segment manufacturers with almost a cottage-industry-like network of service providers and value-added manufacturers (BUCs, LNBs and antennas). This has been a linear and predictable business model with entirely proprietary technologies. We now see the emergence of new Non-Geostationary Orbit (NGSO), or multi orbit players in LEO, MEO and HEO building completely vertically integrated systems. This shift has significantly driven down capacity pricing: the price of satellite bandwidth for data services has dropped 77% over five years according to analysts Novaspace, formerly known as Euroconsult. Starlink, as the first to market, is making waves by disrupting market sectors historically monopolised by the established GEO players such as maritime, aero and enterprise connectivity. Two years ago, the industry would have dismissed Starlink's impact on maritime or aero connectivity segments. The sentiment was that Starlink has ‘no CIR’ (Committed Information Rate) and therefore would not be considered ‘reliable’ for mobile or critical communications. This notion has since been overturned and the naysayers have paid a price with a significant impact to revenues in maritime—the cruise industry in particular—with Starlink now making inroads into aviation and previously inviolable segments like defence. Starlink has also revolutionised satellite manufacturing, leveraging new technologies such as 3D printing to mass-produce satellites at a phenomenal rate, reducing costs to between $250,000 and $500,000 per satellite. The race is on, with Elon Musk’s Starlink trying to acquire as many subscribers as possible before the challengers like Amazon's Kuiper and Telesat's Lightspeed emerge. Forrester's Digital has predicted that SpaceX’s Starlink broadband-by-satellite system is likely to end 2025 with around 8 million customers (it ended 2024 with approximately 5 million), a remarkable growth rate when you consider that each of the leading GEO satellite operators typically have around 25,000 enterprise VSAT terminals activated. We also see the emergence of Small Sat and MicroGEO manufacturers disrupting traditional commercial models with innovations like satellite-as-a-service. This technology provides additional or targeted capacity for defence and government in hotspot areas. Twenty-five years ago, building and launching a satellite would have cost at least two billion USD. Now we see them being built and launched at a fraction of that cost (circa $60 million), reducing the price per gigabit equal to or below fibre. Starlink has also been fundamental to reducing launch costs. In 1981, launch costs were $147k per kilogram of payload. Starlink’s current generation of rockets have brought this down to $2300 and with the introduction of their new Starship rocket, Elon Musk is talking about a price as low as $100 per kilogram. This scale of reduction in launch costs is driving the democratisation of space by allowing new use cases for space to emerge. The satellite industry is also seeing unprecedented consolidation, coopetition and collaboration, creating a range of new offers to consumers, enterprise and governments. Significant transactions include: In April 2024, SES announced its intention to acquire rival Intelsat. If and when this completes, it will be a significant transaction In May 2023, Viasat completed its acquisition of Inmarsat In October 2023, Eutelsat and OneWeb completed their merger transaction In March 2024, prior to the SES announcement, Intelsat extended its partnership with competitor Eutelsat-OneWeb for LEO services.

Artificial Intelligence (AI) is the hottest topic in technology for many reasons, good and bad, but it’s happening and it’s here to stay, so how do we build the infrastructure necessary to support it? To start with, we should recognise that there are many forms of AI. The one that has created the most buzz is generative AI, as seen in ChatGPT, Meta's LLaMA, Claude, Google’s Gemini, and others. Generative AI relies on LLMs (Large Language Models) which have to be trained using vast amounts of data. These LLMs sit in data centres around the world, interconnected by vast fibre networks. The data centre industry has not stopped talking about AI for at least 18 months, as it gears up for an ‘explosion’ in demand for new capacity. Some of the most respected voices in technology have predicted immense amounts of growth in data centre requirements, with predictions of triple the current capacity within 10 years being at the conservative end. That’s three times the current global data centre market, which has taken 30 years or more to get to where it is today. And, when we say growth, we’re talking about power. AI systems will require three times more electricity than data centres currently consume. Depending on who you ask, that’s about 2-4% of today’s global electricity production. And we’re talking about tripling that, or more. Data Centres So, what is ‘AI-ready infrastructure’ and how are we going to build it? The two key elements are data centres (to house the AI systems) and networks (to connect them with the rest of the world). LLM training typically uses servers with GPUs (the chip of choice for AI) and, for various technical reasons, these work best when in close physical proximity to each other – in other words, GPUs work best in large numbers in large data centres. Not just that, but the new generations of GPUs work best in dense data centres, meaning that each rack or cabinet of AI kit needs a lot of power. Most data centres are designed to accommodate older kit that is not so power hungry. The average consumption globally is about 8kW per rack, although many still operate at about 2kW per rack. The latest nVidia (the leading GPU manufacturer) array needs a colossal 120kW per rack. The infrastructure inside a data centre designed for these beasts is complex: the cooling systems (GPUs run very hot) and electrical distribution systems are much harder to design and set up, and are also expensive. So, data centres for AI training systems are mostly going to be new, as adapting older facilities is a non-starter. So, where do you put them? Finding land next to the vast amounts of electricity required is increasingly difficult in many European countries, especially in the UK. Most of the utility grids in Europe are severely lacking in spare capacity, and building new grid connections and electricity generation is a slow and expensive process. The answer might be to locate these new AI data centres near new renewable energy generation sites, but those are few and far between, so land with access to power now carries a hefty premium. Small nuclear reactors could also be an answer but might take a few years to materialise – we know how to build them (witness the nuclear submarine industry) but getting planning permission to put them on land is another matter. All in all, the data centre industry seems to be at least a few years away from being able to provide the massive upgrade in capacity that is expected. Even solving the land/power problem leaves the issue of actually building a new scale of data centre, 10 or 20 times bigger than what most would consider to be a gigantic site today. It can be done, we can solve the engineering challenges, but these are huge construction projects. Networks What about the networks? Actually, although very little real research has been done on the impact of large-scale AI rollouts on existing networks, we might be in a better position. The fibre networks in the UK and many European countries have benefited from significant investment over the last few years, so coverage is a lot better than it used to be. That does not mean that fast and large fibre routes, which will be a necessity for most AI systems, are all there, but it will be easier to build out new capacity than it will be to find power. Still, what we really need is some serious research into the amount of data that will need to be moved about and how that maps with existing network infrastructure. All in all, we have more questions than answers. Some people in the infrastructure industry are sceptical that things will ever get to the scale that some are predicting, but most of us do expect it to happen – it’s just a matter of time, and the race has already begun. Cambridge Management Consulting Duncan Clubb is a Senior Partner at Cambridge Management Consulting, specialising in data centre and edge compute strategy. Duncan has extensive experience as an IT consultant and practitioner and has worked with many leading organisations in the financial, oil and gas, retail, and healthcare sectors. He is widely regarded as a leading expert and is a regular speaker at industry events. If you or your organisation require support preparing your Digital Infrastructure for the emerging AI-industry, you can read about our array of Data Centre services, and get in touch with Duncan Clubb, through our designated Telecoms, Media, and Technology service page.

In 2011, the United Nations (UN) declared their Broadband Advocacy Targets, in which they promised to Make Broadband Policy Universal by 2025. Given that over 90% of all internet traffic passes through submarine cable systems, such networks have become a hugely influential factor in this goal, and thus a significant global and political force. Since the inception of telegraph cables in the mid-to-late 19th century, the prevalence of geopolitics in the submarine cable industry has been intrinsic and impossible to ignore. It is no coincidence, after all, that the current network of cables traces the same lines as the original trade routes: both possess the shared purpose of connecting multiple regions across numerous continents in the shortest time – to boost economies and promote international directives. The telegraph cables of the British Empire were exactly that, a way to consolidate power and trade throughout vast geographical distances. Thus, as we come rapidly closer to the UN’s 2025 target, this article will focus on the positive impacts which are created and accelerated by access to undersea connectivity. In doing so, we will explore different regions, how they are currently benefitting from the UN’s path toward a more connected globe, as well as opportunities for improvement on the horizon. Repeatered Cables Before going into greater detail on the regions that current subsea networks traverse, and the positive impacts they bring, it is worth hovering briefly on the technical make-up of these cables, particularly the component of ‘repeaters’. Also known as optical amplifiers, repeaters are present at intervals along submarine cables which are longer than several hundred kilometres (as opposed to those used within lakes or rivers, etc.) and are built within the ocean floors, often several kilometres deep. Given the length of these cables, repeaters are used to amplify information-carrying wavelengths to sustain the quality of received optic signals over such long distances. However, given their housing in such a harsh and inaccessible environment, redundancy – the technical term for having a backup or recovery option for failed or damaged subsea cables – becomes crucial. Repairing repeatered submarine fibre cables can be incredibly capital intensive and complex, and thus it is important to ensure the strength and stability of subsea cable networks to protect the longevity of the benefits outlined below.

The data centre industry is currently experiencing an unprecedented increase, and while air cooling has been the conventional choice for keeping them in optimal conditions for many years, that is now being replaced by liquid cooling.