Cartex Group Appoints Deepak Gusain as Chief Operating Officer to Accelerate Global Fintech and Telecom Growth

Cartex, an emerging fintech leader in global payment solutions, has appointed Deepak Gusain as Chief Operating Officer. A senior leader with over 20 years of cross-sector experience in global digital infrastructure, Deepak joins Cartex’s C-suite to execute the company’s long-term growth strategy across financial services, embedded ecosystems and digital commerce.

As COO, Deepak will be responsible for scaling Cartex’s core business lines across card issuing, payment gateway infrastructure, telecom services, anti-fraud and embedded financial tools. His leadership will be central to building Cartex’s multi-sector ecosystem, enabling cross-border commerce, digital connectivity, and financial inclusion across key markets in GCC, Europe, India, Africa and Asia-Pacific.

Before joining Cartex, Deepak held senior leadership positions at Tata Communications, where he spent 17 years architecting large-scale digital transformation programs. His career spans high-impact roles in business development, global sales, and mobility and IoT infrastructure, driving consistent revenue growth and long-term strategic partnerships across telecom, aviation, manufacturing, government, and media sectors.

Widely recognized for his customer-first approach and ability to align technology, teams, and market needs, Deepak has repeatedly led first-of-their-kind initiatives with lasting impact. He has played a pivotal role in onboarding complex, enterprise-grade clients across diverse cultures and geographies while consistently delivering high growth and operational resilience.

“Cartex is building the operating backbone for the digital economy – where fintech and telecom converge to drive real-world impact,” said Deepak Gusain. “I am excited to scale this vision forward by developing regionally anchored teams, enabling scalable infrastructure, and building partnerships that unlock value for our clients and users worldwide.”

Cartex’s long-term roadmap includes deepening its B2B/B2C integration across e-commerce, embedded finance, and the creator economy as the company is investing in vertical-specific solutions that blend payments with connectivity, from virtual cards for travel and creator platforms to enterprise-grade telecom services for financial services, travel tech, hospitality industry. Under Deepak’s leadership, the company will drive both organic and inorganic growth, including strategic mergers and acquisitions, while forging key partnerships across enterprise ecosystems. His cross-sector expertise will be critical in scaling Cartex’s go-to-market execution across regions.

About Cartex

Founded in 2022, Cartex is a one-stop shop for financial solutions for Consumers, B2C and B2B. The company caters to multiple industries, including e-commerce, fintech, telecom, and the growing creator economy, offering innovative tools that simplify payment processing and improve user experience. Headquartered in Limassol, Cyprus and Dubai Internet City, Cartex is actively expanding its footprint across APAC, MENA, and Europe to serve a diverse global customer base. As the core business is to provide solutions to the content creator economy, Cartex is a hub for creators to produce content and make connections.

Huawei’s new memory software could relieve pressure on China’s chip industry


News

The latest breakthrough represents a significant boost for AI inferencing, reducing pressure on memory hardware

Today, Huawei has revealed a software breakthrough in high‑bandwidth memory (HBM) technology, a milestone that could see the company’s reliance on US chips dramatically reduced.

Revealed at the 2025 Financial AI Reasoning Application Landing and Development Forum in Shanghai, Huawei’s Unified Cache Manager (UCM) reportedly represents a significant advance in inference efficiency. According to speakers at the event, the UCM algorithm works by distributing data based on the different latency requirements for different types of memory. This shifts some memory‑heavy functions away from conventional HBM usage, allowing for greater efficiency.

According to Zhou Yuefeng, vice-president and head of Huawei’s data storage product line, and reported by the South China Morning Post, UCM can reduce AI inference latency by up to 90%t and increase system throughput up to 22-fold.

Huawei says it will open-source UCM in September.

The news is highly significant for the Chinese tech market, which is currently heavily reliant on imports for high-end HBMs, notably from SK Hynix and Samsung Electronics in South Korea, and Micron Technology in the US.

China’s access to these imports has been severely hampered by US sanctions in recent years, with the US Bureau of Industry and Security (BIS) notably tightening restrictions on HMB exports to China eve further last summer. Under these new restrictions, second generation HBM chips (i.e., HBM2), first introduced in 2016, may still be exported to eligible end-users but more advanced models, such as HBM2e, HBM3, HBM3e, and HBM4, are entirely restricted.

These restrictions extend to HBMs made by third parties (for example, Samsung) if they are produced using US tech, ensuring China cannot easily circumvent these sanctions.

As such, the Chinse government has been heavily pressuring the country’s domestic memory chip players – like Yangtze Memory Technologies, Changxin Memory Technologies, and Tongfu Microelectronics – to catch up with their foreign rivals, with limited success. Until now, China’s HBM capabilities have been broadly limited to HBM2, while market leaders abroad are already advancing to HBM4.

Huawei’s announcement today could relieve some of this pressure on China’s domestic chip industry, with the software allowing the performance of lower quality chips to be greatly improved. However, it is far from a long-term fix to US sanctions on the most advanced HBM technology.

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VMO2 pledges £1m for STEM apprenticeships


News

Virgin Media O2 has today announced it is creating a new £1 million talent fund to help charities, local authorities, small businesses and social enterprises train apprentices — removing financial and structural barriers that have long held smaller organisations back from investing in early careers talent

This initiative will allow organisations to access Virgin Media O2’s apprenticeship levy fund, using this to cover the full cost of apprenticeship training for eligible roles. The programme is specifically designed to support women and people from global majority backgrounds looking to progress in a STEM-based role and will help build a diverse talent pipeline and leaders of the future.  

The fund, which will provide the full cost of training for eligible apprenticeships, has been developed in response to significant barriers identified in recent research. More than 3 million SMEs say hiring apprentices is simply not financially viable right now, with 35% citing cost pressure, 30% complexity of training programmes and over 800,000 (15%) saying insufficient levy funds are their key challenges.  

With nearly four in five employers (79%) saying they would be more likely to hire apprentices if additional financial support was available, the scheme could unlock hundreds of retraining opportunities for young people and career-changers. 

Clare Smyth, three-star Michelin chef and social mobility advocate, is backing the initiative. A former apprentice herself, she has risen to the top of her profession and is passionate about the role apprenticeships can play in giving everyone the opportunity to succeed. 

Commenting on the initiative, Clare said: “Doing an apprenticeship changed the course of my life and accelerated my career, giving me the building blocks that got me to where I am today. I’m proud to support a programme that’s breaking down barriers and creating opportunities for everyone by showing that success isn’t dependent on where you come from—it’s defined by where you can go. By tackling access and affordability constraints, and targeting underrepresented groups, this scheme can make a huge difference to communities across the country.”

Apprenticeship levy rules allow large employers to share up to 50% of their levy funds with other organisations. Virgin Media O2 is proactively using these funds to empower organisations looking to hire apprentices but struggling with the upfront cost or complex process.

Philipp Wohland, Chief People Officer, Virgin Media O2, said: ”We’re committed to backing the next generation of talent and creating opportunities for people to access the value of apprenticeships. By creating a £1 million fund to turbocharge these schemes, we’re investing in people as they build their skills and helping create a more inclusive, skilled workforce. We know apprenticeships change lives, and we’re proud to be opening doors and backing the next generation to create meaningful, long-term opportunities in the communities we serve.”  

Organisations can apply now to draw down funding from Virgin Media’s levy pot to fully cover the cost of apprenticeship training. Opportunities are available in areas such as digital, engineering, and data analysis — with an emphasis on social impact, inclusion, and skills for the future. 

How is the UK connectivity ecosystem changing in 2025? Join the discussion at Connected Britain, the UK’s largest digital economy event

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Streetwave tests mobile coverage with sensors on Yorkshire bin lorries


News

Bin lorries and street sweepers in South Yorkshire are being fitted with sensors to map mobile phone signal across the county, part of a year‑long project funded by the South Yorkshire Mayoral Combined Authority (SYMCA)

Mobile analytics company Streetwave has been awarded £34,000 for the project and has already begun collecting data in Barnsley, with results for Doncaster, Sheffield and Rotherham due to be published before the end of the year.

The project will produce a free, public online map and postcode checker designed to show which of the UK’s mobile operators — EE (BT), Virgin Media O2, and the newly combined VodafoneThree — provides the best coverage. SYMCA says the information will help residents make an informed choice about which network to buy connectivity from.

Streetwave will use vehicle‑mounted sensors that gathers real‑world measurements of signal strength, download and upload speeds, and reliability as the sanitation vehicles travel across the local area. The company says these measurements are timestamped and independently verifiable, and that the system is intended to provide a practical alternative to operator‑modelled coverage maps by producing continuously refreshed, empirical data.

Streetwave has conducted similar projects in other parts of the UK, including in Norfolk at the end of last year and in Liverpool earlier this year.

The vehicle mapping initiatives sit alongside national tools, such as Ofcom’s own coverage checker, which combines operator‑provided models with regulator testing to display indoor and outdoor coverage. Streetwave say its testing methods are complementary, offering a house‑by‑house, measurement‑based comparison and exportable reports that local authorities, housing providers and planners can embed on public portals.

SYMCA says the data from Streetwave’s testing will become public by the end of the year.

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AI lighting the path to the Dark NOC


Interview

BMC Helix’s Hector Villena discusses telcos’ autonomous network ambitions and how AI agents are unlocking hands-off Business Support Services (BSS)

As customer expectations rise and switching communication service providers (CSPs) becomes easier than ever, telcos are under intense pressure to differentiate through exceptional service and smarter operations. That pressure is driving a shift toward AI-powered automation, resulting in smoother service for customer and greater efficiency within CSP operations.

This shift is at the heart of BMC Helix ServiceOps, the company’s cloud-native platform for service management, operations, and automation. Launched back in 2020, the platform quickly proved popular, resulting in it being spun off as a separate company earlier this year.

“The landscape is changing very quickly, and flexibility is everything,” explained Hector Villena, Area Vice President for Sales in BMC Helix CSP Go-To-Market. “That’s why we decided to rearchitect the whole platform from the ground up, with a SaaS first mindset, open architecture, AI driven and completely interconnected. This means our customers can deploy on-prem or SaaS with the same capabilities.”

BMC Helix’s goal was to combine the company’s two strengths: Service Management and  Operations Management. Traditionally these two fields have been largely separated in the telco world, with data largely siloed off and unavailable for simple cross-analysis. With the AI powered tools from Helix, however, data from both worlds can be combined, resulting in a higher level of automation and efficiency.

“The biggest CSPs that we deal with have hundreds of thousands of assets, from servers and storage to network devices. Managing all of that is highly complex. We help them to visualise those assets and quickly assess how the components are related to each other. We then add our AI-driven BSS capabilities, analysing data, monitoring events, and providing a better understanding of that environment,” said Villena. “When you combine the ticketing information from the network with the data coming from events, metrics, logs, and telemetry, and use the topology of the services as a common map to link them, you have something really powerful”

Within the network itself, the benefits of these advanced AI tools are already being felt by customers. Using AI and advanced analytics to assess network data, networks can be made to better anticipate and prevent service disruption, improving uptime and avoiding network outages. When an incident does occur, the platform can also use AI to identify and diagnose the issues behind it and even automate remediation.

“You have millions of tickets going through those platforms. We collect data about previous incidents and their solutions, then apply AI to help deliver a resolution,” said Villena. “For starters the platform can quickly correlate and identify those events and incidents that are essentially related, reducing the number of tickets dramatically. Some of those resolutions can be automated, but for those that can’t, it’s still providing a major boost in efficiency. It’s providing the data and instructions so a Level 1 technician can handle the issue much faster. The initial results we are seeing in our customers are outstanding: 70%-86% Qualified event noise reduction within days, MTTD reduction by 90% or MTTR optimisation over 55%. I understand such a range of improvement is hard to believe, but I do invite any CSP struggling with these challenges to give us a call and allow us to understand their process and prove how the platform could deliver these transcendent improvements to them.”

A growing role for AI agents

AI agents – AI algorithms specifically designed to automate workflows through problem solving and decision-making without human intervention – are playing a major role in this digital transformation. CSPs are already beginning to deploy these agents to automate various customer journeys, helping provide support to staff in call centres or create bespoke packages for B2B customers.

But, for Villena, AI agents’ biggest strength could be their use for internal CSP operations. To date, BMC Helix has released 12 agentic AI agents, focussing on areas of telco operations that can provide the biggest gains in efficiency. The ‘Employee Navigator’ agent, for example, serves as the first layer of AI interacting with the user in the Helix platform and can handle simply administration tasks for employees.

“If an employee needs to book annual leave, for example, they can talk to the Employee Navigator prompt in plain language, and the prompt will ask for the data it needs (if any) to clarify the situation, and then it will book the leave automatically. The employee doesn’t need to manually go through a complex HR system,” Villena explained. “We’re trying to stop employee questions from ever reaching a human agent if they don’t have to, so everyone has more time to focus on higher value tasks.”

The agents can also impact event resolution itself.

“A technician can, thanks to HelixGPT, ask an agent for a problem classification synopsis, a brief root cause summary with the contextual information (metrics, events, behaviour of the system, etc.) and actionable insights. Following that, the technician can ask the system to provide step-by-step recommendations guide to solve the issue. Or, if the issue is so complex it requires the involvement of different subject matter experts, it will automatically create a Teams group chat pulling in the right resolution engineers where all relevant stakeholders can ask questions to the agent (to get a full 360º on the situation, or root cause analysis) and can work with each other to solve the ticket. These are just few of the use cases that can be delivered by the BMC Helix platform” said Villena. “It’s optimising not only the Mean Time to Repair, as it brings the resolution to L1, but also reducing the overall cost per ticket”

BMC Helix is planning to expand their roster of AI agents in the coming months to cover even more use cases, helping to empower telco workforces even further.

Is the ‘Dark NOC’ within reach?  

With more and more AI agents within the telco network, just how far can telcos take automation within the Network Operations Centre (NOC)?

The NOC serves as the nerve centre of the network, the physical location from which network activity is monitored and managed. Currently, most NOCs are highly manual, with network engineers overseeing data traffic and the status of the networks vast physical and digital assets.

As AI and automation becomes more sophisticated, however, the need for manual, human intervention in the network is decreasing. This naturally leads us to the concept of a ‘dark NOC’, a fully autonomous NOC that leverages AI and machine learning to manage the network without the need for any human oversight at all. This, says Villena, is the end-goal for most CSPs.

“CSPs are trying to work smarter and as a result automate as many operations as they can. A consistent objective for many of them is to reach ‘zero touch’ operations, where the operator does not interact manually with the network at all. Network incidents come into this big AI brain and then get identified, triaged, root caused, and resolved automatically. That’s the aspiration of all CSPs.”

But just how far are we on this journey towards fully automated NOCs?

“We’re still a long way from [the dark NOC]. But each part of the network will have a different level of automation, with some already being highly automated,” said Villena. “There’s a big difference between the level of autonomy telcos have in their network functions and their wider IT architecture.”

“In terms of their IT architecture, most telcos I talk to categorise themselves as between Level 0 and Level 1,” he added, referencing TM Forum’s framework of Autonomous Networks Levels, with Level 0 being fully manual and Level 5 being fully autonomous. “Our aspiration is to enable these telcos to get to Level 4 within a short period of time”

But rapid advances with AI and related technology means progress towards greater automation has been fast.

“Some CSPs are aiming to have 80% of network incidents automated by the end of 2026, and to achieve full autonomy by 2030. That’s a very aggressive timeline, but the aspiration is clearly there,” said Villena. “AI has really enabled that transformation. We’re seeing some incredible results in our platform which really show this could be achieved in the next years. The level of improvement is enormous.”

Part of this acceleration relates to the increasing convergence of IT and telco functions.

“As networks are becoming more virtualised and cloudified, the division between telco and IT systems is becoming blurred,” said Villena. “Part of our ‘Operations in the future’ strategy is to enable and integrate with those systems that exist on telco and in IT. With this, we’ll be able to help our customers move from Level 0 and Level 1 to Level 4 and Level 5 autonomy very quickly.”

The building blocks for even greater autonomy

While for now achieving the dream of a Dark NOC remains tantalisingly out of reach, there is little denying that the convergence of CSP systems and the introduction of more sophisticated AI is making rapid progress towards this goal. AI-driven platforms like BMC Helix are proving critical in bridging the gap between legacy complexity and autonomous efficiency, helping to deliver better experiences for consumers and major cost savings for operators.

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Saudi’s center3 unveils plans for 1 Gigawatt of data centre capacity by 2030


News

Edited by Harry Baldock, Total Telecom

The move reflects an accelerated response to the rapidly increasing demand for artificial intelligence (AI), cloud computing, and hyperscaler services across the region.

This week, STC subsidiary center3 has unveiled a plans to expand its data centre infrastructure to reach a total capacity of 1 Gigawatt by 2030.

The company, which has already invested approximately $3 billion in its existing infrastructure, plans to inject an additional $10 billion into developing new, high-density, hyperscaler-ready data centres by the end of the decade. These facilities, designed to support AI workloads and high-performance computing (HPC), will be strategically located throughout Saudi Arabia, Bahrain, and other international markets.

The expansion aligns closely with Saudi Arabia’s Vision 2030 digital transformation objectives, aiming to establish the Kingdom as a major digital hub that localizes digital content and services within the region.

“We are not just expanding data centers, we are enabling the future digital economy. With 1 Gigawatt as our target, we are laying the foundation for AI, cloud, and hyperscale workloads, ensuring that Saudi Arabia and the region have the world-class infrastructure to lead in the next wave of global innovation,” said Fahad AlHajeri, CEO of center3.

center3 aims to reach a significant milestone of 300 megawatts (MW) of installed capacity by 2027 with these next-generation facilities.

The expansion is also underscored by a strong commitment to sustainability. center3 is incorporating renewable energy sources, energy-efficient cooling technologies, and responsible resource management practices into its data center operations. Given the global push for sustainable digital infrastructure, this approach positions center3 as a frontrunner in marrying technological advancement with environmental stewardship.

This strategic expansion effort is situated within a broader growth context for the Saudi Arabian data center market, which is projected to rise from $1.33 billion in 2024 to $3.9 billion by 2030, representing a compound annual growth rate (CAGR) of 19.6%. This market surge is driven by substantial investments from global hyperscalers such as Google, Amazon Web Services, Microsoft, and Oracle, alongside large-scale infrastructure projects like NEOM and LEAP Riyadh 2025.

center3, which was established as a subsidiary of the STC in late 2022, already operates more than 25 data centers across Saudi Arabia. Its recent expansion of the Khurais data center in Riyadh, adding 9.6 MW of capacity, is part of an ongoing strategy to quadruple its data center capacity within the region over the coming years. This expansion not only supports hyperscaler and cloud growth but also meets the increasing requirements of enterprise and governmental digital operations demanding ultra-low-latency and secure infrastructure.

This article was partially generated by AI and edited by a journalist

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Trump rattles Asian chip market with threat of 100% tariffs


News

Samsung and TSMC are notably exempt from the tariffs due to their US manufacturing investments

Edited by Harry Baldock, Total Telecom

Donald Trump’s announcement of a 100 percent tariffs on imported semiconductors has triggered a major shift across the Asian chip markets, with a distinct divide between firms punished by the measure and those benefiting from exemptions linked to U.S. investment.

The announcement underlines the intensifying global competition for high-end chips, crucial components underpinning artificial intelligence and advanced computing.

At a White House briefing, Trump declared that the tariffs would apply to all chip imports apart from those coming from companies that manufacture or commit to manufacturing semiconductors within the United States. Prominent players such as Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics have emerged as key beneficiaries, buoyed by their strategic investments in U.S. facilities.

TSMC, the world’s largest contract chipmaker and supplier to tech giants like Apple and Nvidia, surged nearly five percent on Taiwanese markets following confirmation from Taiwan’s National Development Council that it would be exempt due to its substantial U.S.-based factories. Similarly, Samsung Electronics, which plans billions of dollars in U.S. investment, saw its shares rise by around two percent in Seoul.

Non-exempt Asian tech companies, on the other hand, are facing a tough road ahead. In Japan, manufacturers heavily involved in chip production and related equipment saw share prices tumble: Tokyo Electron dropped 3.2 percent, Renesas sank 3.4 percent, and other chip component producers like Disco Corporation and Sumco also lost value. South Korean chipmaker SK Hynix too initially experienced a significant share decline of 3.1 percent before South Korea’s trade envoy clarified that SK Hynix and Samsung would be exempt due to their U.S. manufacturing plans, easing some market apprehension.

Industry experts view the tariff policy as a clear attempt to reorient global semiconductor supply chains toward America and reduce dependence on foreign imports. Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis, speaking to Agence France-Presse, noted that the move would leave many of the highest-end semiconductor producers unaffected, but would potentially cripple the producers of less advanced chips in Malaysia and China.

“This kills producers of low-end chips,” she said.

The tariffs mark yet another departure from Biden-era economic policy, which focussed on government subsidies to incentivise US investment. The CHIPS Act pledged $52.7 billion for semiconductor manufacturing, R&D, and workforce development in the US, sparking multi-billion dollar investment announcements from the likes of TSMC, Samsung, Intel, and GlobalFoundries.

Trump, however, has called CHIPS Act a “horrible, horrible thing”, preferring to pursue an aggresive economic policy based on tariffs over subsidies.

This article was partially generated by AI and edited by a journalist

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Tele2 to spin off Baltic towers with GCI


News

The new joint venture will own 2,700 sites in Estonia, Latvia, and Lithuania

Today, Swedish telco group Tele2 has announced that it will spin off its Baltic tower assets, forming a joint venture with Global Communications Infrastructure (GCI).

The newly formed business will include own 2,700 telecoms towers and rooftop sites across Estonia, Latvia, and Lithuania.

The business will be split 50:50 between the two owners, with Tele2 to serve as an anchor tenant for the tower company in all three markets under a 20-year service agreement.

“We want to develop our tower assets together with a partner who brings both capital and expertise. This is a way for us to create additional value from the assets we have, together with an experienced partner who knows this business well,” said Jean Marc Harion, President and CEO of Tele2.

The agreement values the new company at around €560 million on a debt-free basis, with Tele2 expecting cash proceeds of around €440 million from its creation.

The deal includes a 10-year investment plan for new sites across all three countries.

Assuming regulatory approvals, the deal is expected to be finalised in Q1 2026.

Until now, the Baltics has broadly remained untouched by Europe’s independent tower giants, like Cellnex, with most of the countries’ mobile operators preferring to own and operate their own tower assets. The only notable exception to this rule is Bitė Group’s subsidiary TeleTower, which was spun off in 2009 and operates a few hundred towers in both Latvia and Lithuania.

As such, the launch of the new JV will make the company the largest independent towerco in the region.

Keep up with all the latest telecoms news with the Total Telecom newsletter

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EchoStar teams up with MDA Space for LEO satellite plans


News

EchoStar has taken another critical step towards plans to launch a new constellation of low Earth orbit satellites by 2029.

By: Brad Randall, Broadband Communities

MDA Space has been selected as the prime contractor for EchoStar’s low-Earth orbit (LEO) satellite constellation, which has an estimated price tag of $5 billion.

Colorado-based EchoStar announced the decision to land with MDA Space for an initial contract, valued at approximately $1.3 billion, late last week.

The contract covers design, manufacturing, and testing for “the first tranche” of over 100 direct-to-device (D2D) satellites, according to the global connectivity provider’s release.

“The full initial configuration of the system consists of 200 satellites with future growth to thousands, as demand requires,” the announcement stated.

“The full initial configuration of the system consists of 200 satellites with future growth to thousands, as demand requires,” the announcement stated.

Mike Greenley, the CEO of MDA Space, said the contract represents the Ontario-based company’s continued momentum in the marketplace.

His remarks continued, adding that MDA Space seeks “to be the prime contractor of choice for satellite operators in the direct-to-device and broadband connectivity.”

Overall, EchoStar has invested over $18 billion in non-terrestrial network satellite connectivity since 2012, according to the company.

Hamid Akhavan, the president and CEO of EchoStar, says it’s that past experience that helps make EchoStar uniquely positioned to execute on their plans for a new LEO constellation.

“Critically, this will foster U.S. leadership in the growing space economy,” said Akhavan, who was quoted in EchoStar’s announcement.

According to EchoStar, the new constellation will utilize 25×20 MHz of AWS-4/S-band 2GHz frequencies.

In addition to messaging, voice, broadband data, and video services, EchoStar says the constellation will also “connect to an array of sensor and mobile vehicles.”

The company expects the delivery of satellites in 2028, and the launch of commercial service in 2029, according to their August 1 announcement.

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GIC takes 25% stake in MásOrange and Zegona’s new Spanish FiberCo


News

The joint venture’s fibre-to-the-home (FTTH) network will span 12.2 million premises, making it one of the largest networks in Europe

This week, Singapore sovereign wealth fund GIC has agreed to purchase a 25% stake in MásOrange and Vodafone Spain’s upcoming fibre network joint venture, internally known as ‘Surf’.

Vodafone Spain and MásOrange announced the creation of the joint venture in January. The business, estimated to be worth €8–10 billion, will combine the two companies’ fibre-to-the-home (FTTH) networks, reaching roughly 12.2 million premises across Spain.

The move will create the largest fibre network operator in the country, with more than 4.5 million existing customers.

Assuming the typical regulatory approvals, the deal is expected to close in Q4 this year.

“We look forward to partnering with MasOrange and Vodafone Spain to create Spain’s largest FibreCo,” said Boon Chin Hau, Chief Investment Officer at GIC. “Spain is one of the most advanced European countries in terms of its Fibre to the Home rollout, however, there remains significant fixed broadband penetration growth potential. In addition, the FibreCo has been designed to offer best in class service quality to customers whilst offering robust core infrastructure characteristics to investors.”

The financial details of the deal remain undisclosed, but sources speaking to Bloomberg have previously valued Surf at €6–7 billion, including debt, suggesting the stake is worth €1.5–€1.75 billion.

MásOrange says it will receive at least €3.2 billion from the deal, which it will use to pay down debt, while Vodafone Spain’s new owner, Zegona, will receive €1.4 billion.

That GIC is only taking a 25% stake in the new business is notable. When the creation of Surf was first announced, the plan was for MásOrange to hold a 50% stake and Zegona a 10% stake, with a third-party investor to be found for the final 40%. By May, however, the sale of a stake of this size was looking unlikely, with the company reportedly having only received non-binding offers below the minimum valuation the partners were seeking.

This smaller investment from GIC, therefore, will see the new ownership structure adjusted accordingly, with MásOrange and Zegona’s stakes increased to 58% and 17%, respectively.

Spain is one of the most advanced fibre broadband markets in Europe, with FTTH technology reportedly available to 95.2% of households.

Keep up with all the latest telecoms news with the Total Telecom newsletter

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