News 

Chancellor Rachel Reeves’ recently announced budget is set to hike up BT’s costs as a result of national insurance payment increases  

BT released its financial results for the half year ending on 30 September 2024 this week, which showed a mixed bag of developments in a challenging economic landscape.  

The UK incumbent reported a 3% decline in revenue, primarily driven by issues in non-UK operations and a competitive retail environment. Reported profit before tax sits at £1 billion, down 10%. This was “primarily due to lower revenue, higher specific costs and higher net finance expenses,” the company explained. 

A significant highlight in BT’s recent performance is the speed of its fibre rollout, which has now reached over 16 million premises. Openreach passed 2.1 million premises with fibre-to-the-home (FTTH) in the last six months and has set an ambitious target to reach 4.2 million premises for FY25. The company has reported 446,000 new active connections on this network, raising its total to 5.5 million. 

Additionally, BT’s 5G network expansion continues to lead the market, covering 80% of the UK population, more than any other operator. 

I addition to its rollout updates, BT also confirmed that its workforce has been cut by 2,000, or 4% year-on-year, to 118,000, which saved the £433 million in annual costs in the first half alone. 

However, the latest UK budget posed new hurdles for the operator. The government’s decision to hike employers’ National Insurance contributions could cost BT an additional £100 million annually. In response, CEO Allison Kirkby outlined several measures to mitigate this impact, including potentially passing costs on to mobile and broadband customers. She also said that cost-cutting initiatives through automation and AI would be accelerated.  

“We are confirming our EBITDA, capex and cash flow guidance for FY25, albeit on lower revenue guidance. We remain firmly on track to meet our long-term cost savings and cash flow targets, and today announce an interim dividend of 2.40pps. The accelerated modernisation of our operations, combined with a focus on connecting the UK, puts us in a strong position to generate significant value for all our stakeholders,” said Kirkby in the announcement. 

Despite these financial pressures, BT remains ‘committed to its strategic priorities’, particularly its full fibre and 5G rollout plans. The company is also exploring options for its international arm, BT Global, which may include a sale or restructuring to better optimise its operations. 

Back in May, the company said it had hit its target to save £3 billion by 2025 a year early, with much of this total being driven by the company’s ongoing job cutting programme that will see 55,000 jobs eliminated by the end of the decade.  

Kirkby now says it will aim to repeat this, cutting a further £3 billion in costs by 2029.  

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Latvian mobile operator LMT’s President, Dr Juris Binde (pictured, second from right), has stated that price increases will be inevitable if a merger with fixed broadband provider Tet goes ahead—a move that has faced strong opposition from rivals concerned about its impact on market competition.

Speaking to Developing Telecoms at the 5G Techritory conference in Riga, Binde confirmed that “definitely there will be price increases because it will be the dominant operator” if the merger materialises. He justified the likely rise in costs, citing the need to manage rising energy expenses and attract top talent to “develop new solutions and services for continued growth.”

Binde also clarified that the integration of LMT and Tet would slow development plans temporarily, explaining, “A merger doesn’t mean you simply combine two companies and everything carries on smoothly. It’s a complex and costly process, which would slow down the economy of both companies, and impact the national economy too.”

Opposition to the Merger

Aruns Mickevics, Director-General of rival operator Bite Latvia, voiced strong criticism of the proposed merger last month, warning it could create a “monopolised giant” with “super dominance” in the market, according to Baltic News Network. Should the merger go ahead, Mickevics has called for the new entity to be separate from the state, with critical infrastructure divested from Tet and made accessible to all market players.

In response, Binde acknowledged that “some reshaping of the market” may be necessary to secure approval, addressing Mickevics’s suggestion of separating Tet’s fibre-optic network and data centres from its main business, noting, “these are strategic discussions for the state.”

Another potential option under consideration is for LMT to take on Tet’s customers in “overlapping” services, such as connectivity, television, IT, and smart home solutions.

Despite these hurdles, Binde remains optimistic, seeing the merger as ultimately beneficial for the Latvian telecoms sector. “The future is mobile only. Therefore, LMT is the leading company and must remain the leader,” he added.

Future Plans

Binde stressed that market consolidation is only worthwhile if it supports a growth strategy beyond traditional telecoms, pointing out that declining revenues from core services are a global trend in oversaturated markets. He argued that operators must pursue a “broader landscape of services and innovations based on telecom services.”

In line with this vision, LMT invested €24.4 million over the last nine months – a 22% year-on-year increase – in developing new services and expanding its 5G network. One innovation in progress is Seamless 5G Connectivity (pictured below) in the Baltic Sea, which includes providing 5G to the Port of Riga by installing base stations on ships and deploying aerial and aquatic drones to improve communication between vessels and port staff.

This Industry Viewpoint was authored by Jason Gintert, Chief Solutions Officer at Nitel

Beyond Network Intelligence – How AI Can Provide More Network Intelligence and Application Prompts to Help Improve the Customer Experience and Ultimately Business Success … [visit site to read more]

Digital infrastructure company Equinix has officially opened what it describes as its state-of-the-art data centre in Salalah, Oman, built in cooperation with integrated telecommunications services provider Omantel.

The facility, called SN1, is commercially and operationally managed in full by Equinix as a carrier neutral and open access Equinix International Business Exchange (IBX) data centre.

This is the second Equinix carrier-neutral data centre to be built in Oman, following MC1 in Muscat, and Equinix’s sixth facility in the Middle East, complementing its existing operations in Dubai and Abu Dhabi.

SN1’s location in the coastal city of Salalah optimises the routes of several highly strategic connections, offering a more direct and cost-effective reachability for businesses and service providers across four continents.

Indeed, Equinix claims that SN1 will “significantly reshape traffic flows across the Middle East and beyond”, reducing latency and improving the resilience of global networks. The facility will also feature direct fibre connectivity to Equinix’s MC1 data centre in Muscat, providing carriers, hyperscalers, content providers and cloud service providers the ability to co-locate their critical infrastructure and further enhance regional operations.

As Talal Al Mamari, CEO of Omantel, explains: « The launch of the SN1 data centre is a cornerstone of our strategy to create a global connectivity hub in Salalah. We are committed to attracting the world’s leading content providers and hyperscalers to the region, and this state-of-the-art data centre is a key part of this vision. By next year, we plan to land multiple subsea cables in Salalah, solidifying its status as one of the most connected hubs in the region due to its location at the crossroads of major international routes between Asia, Europe, Africa and all the way to Australia.”

News 

The plan was first announced back in July, two months after Zegona  acquired Vodafone Spain for €5 billion 

Zegona Communications, owner of Vodafone Spain, has announced it has signed a binding contract with Telefonica to launch a new Spanish fibre company. 

The new FibreCo will cover 3.6 million premises across the country, and provide fibre access for 1.4 million Vodafone and Telefonica customers. It will be majority owned by Telefonica (63%) and 37% by Vodafone Spain. 

“Entering into this FibreCo partnership with Telefonica demonstrates our commitment to transform Vodafone Spain’s fixed line strategy. This transaction gives our business guaranteed access to a future-proof all fibre network with attractive economic terms. Creating and monetising this FibreCo is expected to deliver significant capital returns to Zegona creating value for all stakeholders,” said Eamonn O’Hare, Chairman and CEO of Zegona in a press release. 

The transaction is subject to regulatory approval. Completion of the deal, along with the incorporation of a third-party investor is expected in the first half of next year. 

As well as this deal, Zegona has also announced the signing of a five-year binding deal between Vodafone Spain, Telefonica and fibre company Bluevia Fibra for fibre wholesale in Spain. Telefonica owns a controlling stake (55%) of Bluevia Fibra.  

Earlier this year, Zegona communicated that it has signed non-binding agreements with FibreCos with Telefonica and MasOrange, as well has a non-binding wholesale agreement for a wholesale deal with Telefonica. 

“This new contract complements the Telefonica FibreCo which was also signed today. Both contracts cement our long term partnership with Telefonica, deliver significant economic benefits and represent key milestones in our journey to transform Vodafone Spain,” said O’Hare in the separate announcement. 

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Also in the news: 

News

This article was originally published by Grace Dawes for Movemnt 

Telecoms service giant AT&T has partnered with lamppost electric vehicle (EV) charging start-up Voltpost to provide IoT connectivity to EV charging posts across Michigan and the Metro-Detroit area.

Voltpost operates by retrofitting lampposts into a modular EV charging platform, providing connected charging infrastructure in cities and companies as well as scalable curbside and parking lot charging.

Use and deployment of curb side charging is rare in the States yet helpful for those incapable of charging EVs at home.

The collaboration with AT&T reportedly aims to “enhance charger uptime and help ensure reliable charging access for drivers”.

“We are dedicated to fostering innovation and supporting emerging tech that will shape the transportation sector. As cities move toward a more sustainable future, enabling cities to scale their charging networks with existing infrastructure and advanced connectivity is a game-changer,” said Joe Mosele, Vice President, AT&T Connected Solutions. 

Voltpost has reported a pipeline of upcoming deployments, with chargers to be installed at several sites across Michigan, New York, and Illinois.

[embedded content]

AT&T recently announced its gigaton goal to help businesses reduce 1 billion metric tons of CO2 by 2035 through connectivity backed solutions such as fibre, 5G and IoT.

Four global partnerships of interest from this week worth catching up with: … [visit site to read more]

Several civil society organisations in Mozambique have reportedly filed an injunction against mobile operators TMcel, Vodacom and Movitel over ongoing mobile internet shutdowns and blocked access to social media and messaging sites.

Last week, Internet monitoring website Netblocks confirmed that Meta-owned apps Facebook (including Messenger), Instagram and WhatsApp were blocked in Mozambique, following disruptions in mobile data services the previous week as protesters prepared to hit the streets over disputed election results.

Since then, according to Netblocks updates posted this week, the social media/messaging blockade has been expanded to include TikTok, YouTube and Telegram. Meanwhile, the government has imposed a series of mobile internet “curfews” in which mobile data connectivity has been cut off from evening until the following morning.

VPN provider Surfshark said in an email on Wednesday that it is seeing the same activity on its internet shutdown tracker. Both Netblocks and Surfshark confirmed that all blacklisted social media/messaging sites remain blocked, while the mobile internet curfews were still being imposed as of Wednesday.

According to a report on Tuesday from national news agency Agência de Informação de Moçambique (AIM), three civil society groups – the Centre for Public Integrity, the Centre for Democracy and Human Rights, and the Civil Society Learning and Training Centre – have filed an injunction against TMcel, Vodacom and Movitel, demanding that they “immediately re-establish full access to the internet.”

In a statement, the groups said the internet shutdowns not only violate the country’s constitution that guarantees the right to information, as well as telecoms laws that require telcos to provide uninterrupted services, but also impact economic livelihoods, academic work and even attempts by people to contact family members at a time of social unrest.

“In a period of high tension, the restrictions imposed have worsened insecurity, by limiting access to truthful and up-to-date information on national and international events”, the organisations said in a statement.

The injunction asks the court to “ensure the immediate re-establishment of access to the Internet, and that the service providers refrain from any blocking that limits this essential right,” the AIM report said.

However, it’s unclear to what extent TMcel, Vodacom and Movite have a choice in the matter. The Mozambique government has not officially claimed responsibility for the social media blockades and internet curfews, but all three telcos have notified customers that mobile internet services are “temporarily restricted for reasons beyond our control”.

Mobile internet disruptions in Mozambique have been ongoing since October 25, a day after Daniel Chapo of the ruling Frelimo party was declared the winner of the presidential election. His opponent, Venâncio Mondlane – who fled to neighbouring South Africa after two of his aides were shot dead on October 19 – has been posting videos on Facebook urging supporters to protest the results.

The resulting protests have escalated into clashes with police. Human Rights Watch researcher Zenaida Machado told Reuters on Wednesday that she had verified 18 deaths so far but said that the tally is likely to be higher. A march on the capital Maputo is scheduled for Thursday.

Reuters also reports that South Africa has closed its main border crossing with Mozambique in Lebombo after receiving reports of vehicles being torched on the Mozambican side.

As we reported in August, restricting or completely shuttering internet access has become a “common tactic” used by government to supress dissent, according to the World Economic Forum. Digital rights watchdog Access Now logged 283 shutdowns in 39 countries in 2023, compared to 201 blackouts in 40 countries the previous year.

“Internet restrictions in Mozambique reflect a growing trend of governments limiting access during political unrest, impacting safety and essential information flow, » commented Surfshark VPN product manager Justas Pukys. « These shutdowns disrupt daily life, from business to education, and pose a significant threat to open internet and free speech in the region. »

News

The agreement is set to come into effect on November 19 

Telecom Acquisitions Limited (TAL) has announced the signing of a wholesale partnership with KCOM, the main broadband provider in Hull, East Yorkshire, and North Lincolnshire. Through the deal, TAL’s Eclipse Broadband brand will now offer services on KCOM’s expanded fibre network in these areas. 

Eclipse, originally a KCOM brand acquired by TAL in 2021, will complement KCOM’s services, enhancing customer choice, the companies said. 

“This project has been some time in the making, but we’ve always had a great working relationship with the KCOM team which has made this exciting opportunity possible. This offering will state ‘powered by KCOM’ and is supported by the TAL brands combined Trustpilot Rating 4.4 “Excellent” with the support of over 15,000 reviews,” said TAL’s CEO Nigel Barnett in a press release. 

“The agreement reinforces his group’s presence in the Hull, East Yorkshire and North Lincolnshire area following the acquisition of bases developed by ISP’s Open Fibre, Link Broadband, Infinics Broadband and Zybre,” he continued. 

“KCOM’s full fibre network powers thousands of homes and businesses across Hull, East Yorkshire and North Lincolnshire. This new deal with TAL means that more customers in our expansion areas can access the benefits of our fast, secure and reliable network via the Eclipse broadband brand,” echoed Jan Collins, the MD of KCOM Enterprise. 

Join the conversation about connectivity in the North of the UK by attending Connected North, 23-24 April in Manchester. Get discounted tickets here! 

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“We’re on track to close the loop”: Adtran talks data, AI, and network automation at Connected Britain

In an M&A move that I somehow missed during the election chaos, BCE through its Bell Canada subsidiary has announced plans to acquire Ziply Fiber for about C$7B including assumed debt. The move by Bell will give it a significant foothold in the US fiber marketplace. … [visit site to read more]