Altice bumps stake in BT to just under 25%


News

The international telecoms group owned by French billionaire Patrick Drahi said the increased stake indicated support for BT’s strategy and was not step towards a potential takeover

Today, Altice UK has revealed that it has increased its stake in BT to 24.5%.

Altice UK, owned by French billionaire Patrick Drahi, was already the UK operator’s largest stakeholder, having grown its stake to 18% over the past 18 months.

Drahi formed Altice UK back in 2021 with the express purpose taking a 12.1% stake in BT for around £2 billion. At the time, Altice assured BT that it had no intention of presenting the telco with a takeover offer.

Later that year, Altice increased its stake by a further 6% to 18%, a move which set alarm bells ringing at BT and set in motion a number of defensive measures to shore up the company’s operations against a potential takeover. Despite this, Altice remained adamant that stake increase was merely a valuable investment opportunity rather than a precursor to a potential takeover.

Indeed, even with the latest stake increase today, Altice says that it is not considering a takeover, with Drahi noting that he will not seek a seat on BT’s board. In a short statement from Altice, the company said it “continues to hold [BT’s] management in high regard and remains fully supportive of their strategy”.

The timing of this stake increase is interesting, arriving just days after BT announced it would be cutting 55,000 jobs by the end of the decade as part of broader cost-cutting measures. According to the operator, around a quarter of these roles will be subsumed by rapidly advancing technologies like AI and automation, allowing for increased agility and efficiencies.

The news, which was delivered alongside BT’s latest financial results, saw shares fell over 7%, perhaps making them a more attractive prospect for Altice to invest.

It is worth noting that the new stake is just below 25% is no coincidence, with the UK’s National Security and Investment Act (NSIA) automatically requiring an investigation into any foreign company that holds a 25% or greater stake in a business deemed critical to national security, such as BT.

In fact, Altice’s stake in BT already faced a probe via the NSIA last year, though this was later called off by the Secretary of State.

How is the UK’s telecoms ecosystem changing in 2023? Join the operators in discussion at this year’s live Connected Britain conference

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Oi seeks over US$800 million in emergency funding

The slightly confusing saga of Brazilian operator Oi continues. It is now seeking a huge sum of money in emergency funding.

In other words, the judicial process involving the recovery plan of Brazilian service provider Oi, which seemed to be over in December, may be far from finished.

Now Oi plans to seek emergency funding of at least 4 billion reais (about US$805.3 million) as well as to renegotiate debts.

The company’s board approved the plan last Friday. We may have to wait for more precise details of the measures Oi and its subsidiaries will adopt in order to strengthen its capital structure. However, the emergency funding will, one assumes, support the company while it carries out some of the measures provided for in the plan, including a capital increase and divestment of assets.

It has already sold a number of assets but, according to local news source TeleTime, it may now sell almost everything else, including its corporate arm, Oi Solucoes and its stake in fibre-to-the-home (FTTH) wholesale unit V.tal.

Quoted in the same news source, the company apparently says that the plan reflects the negotiations held to date with its main creditors and other stakeholders for debt restructuring. It adds: “We continue negotiations with financial creditors and other unsecured creditors regarding the specific terms and conditions.”

Oi has been under judicial protection since mid-March this year.  Its judicial reorganization plan was granted by Rio de Janeiro’s 7th Corporate Court. However, as we reported at the time, the company’s board also had a 60-day deadline to submit to regulator Anatel various details of cash flow, sources of funds and financial forecasts and, notably, “justification for the differences between what was realized and what was foreseen”.

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EU fines Meta €1.2bn over transfer of data to US


News

The European Union (EU) said the company’s data transfers to the US violated General Data Protection Regulation (GDPR) and jeopardised the “fundamental rights and freedoms” of EU citizens

This week, the EU has issued its largest regulatory fine to date, ordering US tech giant Meta to pay €1.2 billion as a result of breaches to GDPR.

The decision was made by Ireland’s Data Protection Commission (DPC), which said that Meta’s transferring of personal data from EU citizens to the US since 2013 had exposed that data to privacy violations by US security services.

The DPC said that Meta’s existing policies towards transferring sensitive EU data to the US “did not address the risks to the fundamental rights and freedoms” of EU citizens.

Meta is heavily reliant on delivering EU data to the US in order to facilitate advertising.

In the past, Meta has said transferring this data to the US for advertising purposes was paramount to its continued operations in the EU, even threatening to shut down Facebook and Instagram services in Europe if forced to cease these data transfers.

The EU responded saying it would not be threatened or blackmailed, saying the company’s withdrawal “would be their loss”.

Now, the EU says that Meta has five months to suspend any future transfer of personal data to the US, and six months to stop “the unlawful processing, including storage, in the US” of EU data.

These orders only apply to Meta’s Facebook service and not to its other offerings, such as Instagram and WhatsApp.

Meta, naturally, says it appeal the DPC’s decision, which it called “unfair” and “unjustified”.

“We are appealing these decisions and will immediately seek a stay with the courts who can pause the implementation deadlines, given the harm that these orders would cause, including to the millions of people who use Facebook every day,” wrote Meta’s president for global affairs, Nick Clegg, and the company’s chief legal officer, Jennifer Newstead in a blog post.

The decision should come as little surprise. The EU has been clamping down on major US tech companies in recent years, with numerous fines being passed down to likes of Google, Amazon, and Meta for breaching GDPR.

In fact, in 2020, the European Court of Justice found the existing legislative framework between the EU and the US – known as the Privacy Shield – to be inadequate for protecting EU data from being accessed by US surveillance services. Since then, the EU and the US government have been working on a replacement data transfer pact, which could come into effect as early as this October.

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Tele2 Estonia kicks off mmWave 5G trial

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Building the internet under the sea: Zeus, an Operations VP’s inside story

Contributed Article

By James Ovel, Operations VP at Zayo

For a VP of Operations, commissioning, installing, and deploying a new subsea cable brings excitement and optimism, but equally offers significant challenges.

With a background and passion for project management, my team and I pride ourselves on detailed planning with thoughtful analysis of a broad range of risks. We are the kind of people who rely on good data, facts, and solid analysis to make informed decisions. We avoid making decisions based on assumptions.

Once we commit to getting a project done, it gets done, no matter how hard it gets.

When a programme wraps up, everyone’s celebrating – there’s press and champagne, and it all looks rosy. You don’t see the additional grey hair that got us there! If you want to know what it’s really like, I’ll tell you.

The Exhilarating Adventures of Zeus

Zeus, our subsea cable connecting the UK to Europe, was a major part of my life for several years. From the early initiation days in 2019 through to its final splice and test in mid-2022, I was constantly worried because it was so unpredictable.

For example, consultants advised in planning that we had a five percent chance of finding an unexploded WW2 bomb along the route. We didn’t find just one, we found four! Three bombs were within British waters adding months of delay and substantial additional costs to move them out of the way of the route. The other one in Dutch waters. This was far less problematic as the Dutch navy, for national security purposes, stepped in and took care of it within days – much to my relief.

Seabed X-rays suggested we would need to examine 140 hidden objects.We actually ended up having to examine over 350 objects before we could even start laying the cable.

One thing our great oceans never are is predictable. Throw in rough weather, an international pandemic, changing permitting laws, and you start to understand just how far out of my comfort zone I was!

The Customer Need for a New Subsea Hero

One thing we could predict accurately was the demand for a new subsea cable. This was clear from the market trajectory and customer feedback. Customers wanted a super secure route across the North Sea and they wanted it as quickly as humanly possible.

Our existing North Sea cable, called Circe North, was nearing capacity and is also over 20 years old. It was entering the unknown when it came to stability and future workable life.  Zayo has always invested heavily in quality network infrastructure to be ready for future demand, so Zeus just had to be done.

Subsea Connectivity Built to Last

One thing we knew from maintaining Circe North for over 20 years is that these waters are heavily fished. Circe North had been impacted multiple times, mostly by illegal fishing. Our fiber is affected when fishermen trawl the bottom of the seabed and inadvertently pull up our cable then cut it to free up their nets and escape before the authorities can track their vessel’s movements.

This meant our main objective in planning wasn’t speed, despite the demand – we wanted to do it right. Quality, security, and sustainability were the priorities. This is why we made sure, at a significant cost, to secure an installation vessel capable of three metres burial depth.

By doing this, we uniquely achieved burying Zeus over two metres where sand waves occur and in many areas achieving two and a half to three metres in depth.

This burial depth is vitally important as the sand on the seabed changes in depth typically by up to two metres in constant tides, this is known as sand waves. This means that only a cable buried over two metres remains covered and safe from the dreaded fishing nets.

We know from our experience in maintaining our Circe North route that anything buried at a depth of less than two metres will become exposed at times.

Even at a burial depth of over three metres, we were still thinking about all of the potential threats. For example, what if an anchor landed on Zeus, potentially causing strike damage? This is why we opted for a double-armoured cable with increased crush resiliency, meaning an anchor bounces off Zeus without impact.

Burying over two metres also has a positive environmental impact, allowing the seabed to reform naturally over the top comprehensively.

An Optimal User Experience Begins Below Sea Level

Most people don’t think about the Internet being under the sea – but they’ll certainly notice if their service is down or the user experience is not what it usually is. If a subsea cable is cut, then everything needs re-routing across longer routes, meaning higher latency and a slower, interrupted and sub-optimal user experience.

Zeus is monitored 24/7 from our UK-based NOC, meaning we see issues or degradation immediately. However, we don’t expect this to ever be an issue for this new cable. In addition, technology is advancing so fast and Zeus is currently being considered by several partners for a super cool advancement using vibrations to monitor illegal fishing and people trafficking.

This type of tech is used on other subsea cables to help predict natural disasters like tsunamis, giving response teams more time to act and prevent a catastrophe. It can also be used by marine biologists to listen to whale songs which they use to ascertain their gender and species.

Problem-solving skills are essential to my team and we pride ourselves on getting the job done.

I had a team of 20 people working on Zeus, plus expert industry consultants. Zeus came in significantly over budget and stretched us in many ways, but we’re all thrilled with the achievement. In my opinion, Zeus is the most secure subsea cable in the world.

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If you want to learn more about Zayo and chat with the team, you can join them at this year’s Submarine Networks EMEA event taking place at the end of this month! Get your ticket today

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