News 

This is the second round of layoffs that the company has announced this year, having cut 5% of its global workforce in February 

Cisco has announced that it will cut 7% of its global workforce –approximately 6,000 employees– as it shifts its focus towards higher growth areas, such as AI and cybersecurity. 

Cisco acquired software platform company Splunk in 2023 for $157 per share, valuing the deal at approximately $28 billion. Including Splunk employees, Cisco has around 90,000 staff, making the total job cuts around 6,300. 

The job cuts were announced in the quarterly earnings call this week, in which Cisco announced revenues of $13.6 billion, a decrease of 10% year on year, with total revenue for the whole 2024 financial year reaching $53.8 billion, a decrease of 6% year on year. 

The company has been facing declining revenues and shrinking profits in its core networking business. By reallocating resources, Cisco hopes to bolster its presence in AI and cybersecurity, which are seen as key growth areas for the future. 

Large enterprises are increasingly moving their critical computing workloads and applications to the cloud, which reduces the demand for traditional networking hardware, as cloud service providers often use their own infrastructure. 

“As we look to build on our performance, we remain laser focused on growth and consistent execution as we invest to win in AI, cloud and cybersecurity, while maintaining capital returns,” said CFO Scott Herren in the call. 

The Q4 press release does not go into detail on the job cuts, but an SEC filing confirmed that the company was “restructuring…to allow it to invest in key growth opportunities and drive more efficiencies in its business”. 

Cisco currently estimates that the layoffs will cost $1 billion (severance and other one-time termination benefits). It expects to recognize (i.e. account for in financial reports) approximately $700 million to $800 million of these charges in Q1 2025, and the rest later next year. 

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A data center business, some FTTH interconnection, and some datacenter/fiber collaboration: … [visit site to read more]

The first phase of OADC Texaf Digital, a joint venture between African data centre company Open Access Data Centres (OADC) and TEXAF, a major long-term investor in the economy of the Democratic Republic of Congo, is now live in Kinshasa in the DRC.

The 2MW-capable facility is described as the DRC’s first live open-access, carrier-neutral and Uptime Institute Tier III-certified data centre, with ISO27001 post live certification on track for Q3 2024.

Clients are reportedly already establishing and installing in the facility and all major fibre network providers are present to provide vibrant interconnect to tenants.

The facility offers integrated core digital infrastructure solutions comprising tailored colocation services together with a wide range of reliable connectivity and peering options. Power to the data centre is fed from utility sourced from hydro generation, ensuring environmentally sustainable power generation in tandem with low Power Utilisation Effectiveness (PUE).

OADC Texaf Digital, located within TEXAF’s Silikin Village digital hub, is operated by the WIOCC Group company OADC. Configured with 1,500 square metres of IT white space to accommodate more than 550 racks, it delivers colocation, interconnect and peering services to support the colocation needs of enterprise clients, content distribution networks, and local and international cloud providers.

Underlining a message highlighted by the project partners, Mohammed Bouhelal, Managing Director of OADC Texaf DRC, says: « OADC Texaf Digital is central to boosting many sectors of the DRC’s economy, creating rich and vibrant digital ecosystems, and providing content distribution networks and cloud content providers with access to a quality peering location in the country. »

Over 12 leading national and international carriers connected with the banking sector are said to be among the leading adopters of OADC Texaf solutions.

The new facility does appear to have been launched a little later than originally hoped. We reported in February last year that the initial phase of OADC Kinshasa was expected to go live in Q2 2023.

News

Openreach’s newly appointed CEO, Clive Selley, has called on the UK government to reduce the regulatory barriers hindering broadband rollout

In a recent blog post, Selley highlighted that despite the Project Gigabit funding, which aims to extend gigabit-capable broadband to thousands more premises, nearly a million homes could miss out due to outdated planning rules. These rules require property owners to give explicit permission for broadband upgrades, even when an existing line is already in place. This particularly affects residents of apartment blocks or “multi-dwelling units” (MDUs), where locating landlords and securing their agreement remains challenging.

Selley’s comments follow an announcement this week that Openreach will receive up to £800 million in funding to bring gigabit-capable broadband to 312,000 premises across the UK. This initiative is part of ongoing efforts to enhance digital infrastructure, especially in rural areas. Openreach has pledged to deliver Ultrafast Full Fibre Broadband to 25 million homes and businesses by 2026, and to 30 million by the end of the decade.

“Every year, we apply for around 300,000 permits to carry out work on a street-by-street basis. But it’s no secret that the pandemic, global events, and the current economic climate have left local authorities stretched. As a result, delays in obtaining permissions are common, causing knock-on effects on broadband upgrades,” Selley explained.

To meet government delivery targets, the number of applications is likely to double over the next few years, which Selley warned would place an “unnecessary bureaucratic burden on everyone involved.”

“A simple fix, at no cost to the taxpayer, would be to introduce flexible permitting, allowing builders to upgrade multiple streets at once,” he added.

Selley’s sentiments align with those of BT CEO Allison Kirkby, who, speaking at the Deloitte and Enders Media and Telecoms Conference in London in June, noted that Scandinavian countries are “way ahead” of the UK in terms of telecoms infrastructure. Kirkby attributed this to the regulatory and planning environment, as well as the widespread adoption of digital skills and services, and urged the UK government to enhance “regulatory and fiscal policy certainty.”

Join Openreach at this year’s Connected Britain, 11-12 September in London. Get discounted tickets here!

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Optus clashes with AustralianSuper over slow tower build

Four regional infrastructure projects of note at midweek: … [visit site to read more]

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Sale discussions have been ongoing since January 

Investment company Waterland Private Equity has acquired Mobile Virtual Network Operator (MNVO) Lebara for an undisclosed sum. 

Founded in 2001, the company offers SIM-only mobile phone plans to around 4.4 million subscribers UK, France, Germany, Netherlands and Denmark. In the UK, it uses Vodafone’s national network to provide its 4G and 5G services. 

Lebara is known for its focus on affordable, no-frills services tailored to the needs of international communities, providing cost-effective options for international calls. Over time, it has expanded its offerings to include mobile voice, data, and messaging services across many countries. 

Current owners Alchemy and Triton Partners took on the company in 2019 and invested €25 million in 2021. Last December, the Financial Times reported the company was considering a possible sale. The group confirmed that it was working with advisors to assess its options. 

“This partnership will provide us with the resources and strategic support needed to accelerate our growth and enhance our service offerings, ultimately benefiting our customers across all our markets,” said Lebara CEO Stephen Shurrock in the announcement’s press release. 

“Lebara has built a strong brand and loyal customer base by providing high-quality mobile telecommunications services at competitive prices,” echoed Wendy McMillan, partner at Waterland Private Equity. 

“We look forward to working closely with the management team to continue on Lebara’s growth journey together, leveraging our expertise in the telecommunications sector,” she continued. 

The deal is subject to standard regulatory approval. 

Keep up to date with the latest international telecoms news by subscribing to the Total Telecom daily newsletter

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Openreach wins new Project Gigabit contract to expand rural broadband
Connected Britain returns to London to celebrate its 10th anniversary 
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A couple of international expansion projects, some federal dollars, and some IoT connectivity infrastructure: … [visit site to read more]

Azercosmos, Azerbaijan’s space agency, and the Civil Aviation Authority of Botswana have announced a new partnership, described as a ‘new milestone in connectivity’, to launch satellite services in Botswana.

Under this long-term agreement, the Botswana government agency will utilise data services provided via the Azerspace-1 telecommunication satellite. This marks the inaugural provision of satellite data services to Botswana via the African C-band coverage on the Azerspace-1 satellite.

Azercosmos says it currently supplies satellite services to nearly half of the 13 countries in Southern Africa. This collaboration with Botswana, it suggests, will enhance the deployment of Azerspace satellite services in large-scale data projects across Southern Africa.

The Civil Aviation Authority of Botswana (CAAB) is responsible for the regulation and development of air transport, providing air navigation services, managing airports and advising the government on all aspects of civil aviation. It is not clear how it will use the data services enabled by Azercosmos.

C-band has been a theme of a number of Azercosmos announcements in recent years. In 2022 we reported that Azercosmos and teleport and data centre facility Signalhorn had entered into a partnership agreement to provide what were describes as uninterrupted, secure and high-quality satellite services throughout Africa via the C-band capacity on the Azerspace-1 satellite.

In late 2021 an agreement was announced with Malaysian operator Measat Satellite Systems, under which Azercosmos intended to utilise the C-band capacity of the Azerspace-1 satellite to provide satellite services throughout the African region.

C-band was the first frequency band allocated for commercial telecommunications via satellites. It performs better under adverse weather conditions than some other frequencies. However, it requires very big receiving antennas.

News

The partnership will offer businesses the tools they need to innovate while protecting their data 

Indosat Ooredoo Hutchison (IOH) has teamed up with Google Cloud to bring advanced cloud services to Indonesia, addressing the country’s strict data residency, security, and privacy requirements.  

The expanded partnership will introduce Google Distributed Cloud (GDC) to various sectors across the country, allowing organisations to manage AI and data-heavy tasks while maintaining control over sensitive data.  

The collaboration will support industries such as public services, defence, healthcare, finance, energy, and manufacturing.  

GDC offers a range of features, such as a fully managed solution that can operate either fully disconnected from the public internet for highly sensitive tasks or connected between edge locations and Google’s Indonesian data centers. This flexibility allows organisations to choose the setup that best suits their needs. 

Indosat Group will provide hosting options for GDC through its data center unit, ensuring that all data stays within the country and complies with local law. 

“Indonesia is paving the way towards its golden era in 2045. Indosat Group is committed to contributing through technological advancements in pursuit of this vision,” said Vikram Sinha, President Director and Chief Executive Officer of IOH.  

“The partnership with Google Cloud is driven by empowering Indonesia, aiming to deliver the country’s first sovereign cloud and edge cloud solutions. These solutions will equip organizations with the state-of-the-art infrastructure, operational features, and developer tools they need to accelerate digitalization at scale,” he continued. 

Keep up to date with the latest international telecoms news by subscribing to the Total Telecom daily newsletter. 

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