1^st MAY 2025 – One of the UK’s foremost business connectivity providers, Neos Networks, has today announced research from 100 Senior Decision Makers at UK-based alternative network providers (Altnets). It reveals that almost all (96%) are considering M&A and partnerships with other service providers as they look for opportunities to survive and expand in the UK’s competitive broadband market.

A competitive landscape

The research, conducted by Censuswide this year, highlights some of the hurdles that many Altnets face. When asked about acquiring customers, 55% said their target customers are ‘locked into preexisting contacts’, a clear indicator of the growing competitive pressure from legacy providers. This was followed by a lack of awareness (47%), with many Altnets facing competition with up to four other providers in regions where they have networks.

Tough economic conditions are also affecting growth strategies with Altnets, with almost half (48%) of those surveyed saying that it has been difficult to access funding over the past year. High interest rates are exacerbating this challenge with 48% of Altnets citing them as the primary reason behind their struggle for funding. Regulatory constraints and strict lending criteria were also cited as significant barriers as Altnets looked to secure financing.

Altnets also face other regulatory challenges, including the knock-on impact of BT’s closure of its copper network as it transitions to full fibre. As part of this modernisation, most Altnets are now under pressure to remove equipment from BT’s exchanges, which are due to start closing in January 2027. They say it will cost them, on average, £1.4mn, according to our research.

The path forward

As Altnets look for a path forward, almost all (98%) said they expect to move beyond just offering traditional residential broadband to broaden their services and appeal. This was also cited as the number one long-term ambition for Altnets in the survey.

• 46% say they plan to launch smart home technology
• 43% say they will offer enterprise connectivity
• 42% say they will launch security solutions and packages
• 35% say will start offering multi-service solutions – i.e. TV and entertainment

55% of the Altnets we surveyed say that improving customer satisfaction is their primary goal for the next few years, beating out other, more revenue-critical operations such as increasing customer subscriptions and driving operational efficiencies.

When asked what technologies they were using to help them differentiate themselves from their competitors, the majority of respondents said they were deploying Software-Defined Networking and Network Function Virtualisation (53%). 5G Fixed Wireless Access (39%), and AI/ML enabled BSS/BSS automation also ranked highly.  

Lee Myall, CEO at Neos Networks said: “Altnets have played a pivotal role in reshaping the UK’s connectivity landscape, driving the expansion of full-fibre networks and challenging established incumbents. However, the industry now stands at a crucial crossroads. Heightened competition, financial pressures, and shifting regulatory frameworks mean that Altnets must evolve rapidly to secure their long-term future.

“Our research highlights that Altnets are exploring a variety of strategies – from mergers and acquisitions to strategic partnerships and service diversification – to strengthen their market position and pave the way for sustainable growth.”

ENDS

Methodology

Neos Networks commissioned Censuswide to survey 100 Senior Decision Makers at UK-based Altnets. The survey was commissioned in January 2025.

About Neos Networks

Neos Networks has the UK’s largest business-dedicated network. With over 600 points of presence and 90 data centres nationwide, Neos provides high-capacity critical connectivity for businesses, from telecoms and energy to banking and emergency services.

Agile and customer-focused with almost limitless scale, Neos enables emerging technologies like AI, 5G and IoT, making connectivity work for Britain. 

For more information please visit: https://neosnetworks.com

News 

This week, four men have been convicted in connection with a corruption and bribery scandal involving multimillion-pound telecoms contracts awarded to Scottish health boards 

The High Court in Glasgow found Adam Sharoudi and Gavin Brown, directors of Scottish telco Oricom, guilty of securing over £6 million in NHS contracts through fraud.  

The company, founded in Ayrshire in 2008, provided telecoms and video conferencing equipment to various Scottish NHS trusts between 2010 and 2017.   

An investigation by NHS Scotland Counter Fraud Services revealed that commercially sensitive procurement information was leaked to Oricom by NHS insiders Alan Hush, a former telecoms manager, and Gavin Cox, head of IT infrastructure at NHS Lanarkshire. In exchange, Hush and Cox received cash and gifts worth totalling nearly  £90,000. 

The court heard that one contract awarded to Oricom without proper tendering was worth over £3.1 million.  

Prosecutors argued that Oricom was given an unfair commercial advantage, undermining procurement integrity and costing taxpayers millions. 

Lord Arthurson, presiding over the case, called the actions “a coldly calculated and criminal betrayal of the welfare state,” adding that the four men should expect significant prison sentences.  

All four men remain in custody before sentencing next month. 

Keep up to date with the latest international telecoms news by subscribing to our newsletter 

Also in the news:
Diversifying the UK’s data centre landscape: a path to economic growth
UK government’s data centre strategy drives discussion at Connected North
Data centres in the news this week 

Amazon Web Services (AWS) has announced plans to embed its cloud technology within Orange’s mobile networks in Morocco and Senegal this year, aiming to significantly improve connectivity speed and reduce latency.

In a statement, AWS said the rollout will mark the first deployment of its edge cloud technology—known as AWS Wavelength—in Africa, and notably in regions without existing AWS Regions or Local Zones, which are large and smaller-scale data center clusters, respectively.

The company explained that AWS Wavelength enables customers to run applications that require ultra-low latency or need to keep data local due to regulatory demands. This includes industries such as telecoms, finance, the public sector, and sectors relying on real-time applications like gaming.

AWS pointed to Orange’s extensive African footprint—spanning 18 countries on the continent and reaching over 298 million customers globally—as a key enabler of the partnership.

“Orange’s strong presence and expertise in these markets would uniquely benefit our AWS customers across regulated industries and industries that require low-latency for applications,” AWS global executive Amir Rao and cloud architect Robert Belson said in a blog post.

Malaysian operator Maxis has unveiled plans to significantly expand its fibre network in the state of Penang, aiming to connect over 100,000 homes by 2027 in support of the government’s digital transformation agenda.

In an official statement, Maxis said the rollout will prioritise high-demand urban areas including Jelutong, Georgetown, Batu Maung, Bayan Lepas, and Bayan Baru, as well as key locations on Mainland Penang.

The expansion aligns with the Penang2030 vision, a state-led initiative to transform Penang into a “green and smart state.” The project is also enabled by the Penang State Government’s recently introduced Last Mile Connectivity Guidelines, which streamline pole-sharing regulations and make it easier for telecom providers to deploy fibre infrastructure efficiently.

Maxis currently operates a 23,000km fibre network nationwide, serving around 500,000 homes.

Penang Chief Minister Chow Kon Yeow (pictured, left) commented: “High-quality internet connectivity is a critical driver for education, talent development, and economic growth—all of which will further solidify Penang’s position as a regional hub for technology and innovation. We will continue strengthening our state’s digital infrastructure to close the digital divide and ensure every Penangite is equipped to prosper in the future economy.”

Global satellite operator Intelsat announced on Thursday it is expanding its partnership with Hispasat’s teleport operator and satellite services provider Axess Networks to provide satellite communications services throughout the Americas.

Under the new partnership – which is part of a larger renewal agreement with Axess – the two companies will collaborate to provide full-coverage multi-satellite services across the Americas by leveraging the satellites and assets of Intelsat and Hispasat.

Guido Neumann, GM for Axess EMEA, said the partnership will enable both companies to provide seamless and reliable connectivity tailored to the client’s needs

“We are proud to work together to enhance the customer experience and provide top-tier connectivity to our clients,” Neumann said in a statement.

In the Americas, Axess operates teleports in Mexico and Colombia, as well as an alternative teleport in Peru. Hispasat – which acquired Axess in 2022 – currently has ten geostationary satellites covering all of the Americas, with a control centre in Rio de Janeiro. Intelsat has around 20 geostationary satellites covering central and South America.

“This agreement reaffirms our commitment to delivering seamless, reliable solutions just as we do today and into the future,” said Rhys Morgan, RVP for EMEA sales at Intelsat.

Feature Week 

For today’s Feature Week piece, here are all the top data centre related news stories this week

TikTok to build third European data centre 

TikTok is to build a €1 billion data centre in Finland, Reuters has reported. The data centre build is part of the company’s broader “Project Clover,” a €12 billion, decade-long strategy launched in 2023 to improve data privacy and security for European users. 

Both regulators and lawmakers have expressed concern over potential access to user data by the Chinese government, as TikTok ownership is owned by China-based company ByteDance. 

The facility is TikTok’s first data centre in Finland, adding to existing sites in Ireland and Norway. The site has been chosen in part because of Finland’s climate – the cold environment reduces the need for energy-intensive cooling systems.  

Microsoft to expand European data centres by 40% 

Microsoft has announced an expansion of its European cloud and AI infrastructure, committing to a 40% increase in data centre capacity across 16 countries over the next two years.  

The move is part of five new “Digital Commitments to Europe”, which aim to strengthen the continent’s digital resilience, data privacy, and economic competitiveness. 

By 2027, Microsoft’s European data centre network will more than double, reaching over 200 sites to support sectors like healthcare, education, and government. 

The company also introduced a legally binding “Digital Resilience Commitment,” ensuring that European governments can keep access to their data even during geopolitical challenges. To support this, Microsoft will have contingency plans and independent oversight in place.  

A new Deputy Chief Information Security Officer (CISO) for Europe will also be appointed to make sure Microsoft meets the EU’s strict cybersecurity rules. 

UK data centres turn to gas power as electricity grid delays threaten growth 

Data centre developers are looking to build onsite gas-fired power plants as long waits for electricity grid connections stall critical infrastructure projects, according to The Telegraph. 

According to Future Energy Networks, more than 30 enquiries have been made in the past six months by developers seeking gas access.  

The UK’s power grid is under significant strain due to soaring demand from data centres, EVs, and renewable energy projects. Ageing infrastructure and a backlog of connection requests have left parts of the network at full capacity. Developers say gas connections can be secured in months, compared to decade-long waits and multi-million-pound costs for electricity grid access. 

The government says it is working with Ofgem and network operators to accelerate grid upgrades and support low-carbon power for data centres. 

Microsoft data centre linked to £3m bribery scandal 

A UK investigation is underway into a suspected £3 million bribery case linked to the construction of a Microsoft data centre in the Netherlands.  

According to a press release this week from The Serious Fraud Office, the authority carried out searches across several UK locations and made three arrests. They believe that staff at construction firm Blu-3 paid £3 million in bribes to individuals connected to Mace Group, in exchange for favourable treatment on the project.  

The “action is a reminder that we will take rapid and robust action to tackle suspected bribery and corruption wherever it appears – at home and overseas,” said Nick Ephgrave QPM, Director of the Serious Fraud Office. 

The global smartphone market recorded flat growth in the first quarter of 2025, as signs of saturation emerge in key developing regions, according to the latest report from analyst firm Canalys.

Shipments rose by just 0.2% year-on-year, reaching 296.9 million units in Q1. Canalys attributed the sluggish performance to the end of peak replacement cycles and a continued focus among vendors on balancing inventory levels. This marks the third consecutive quarter of slowing growth for the market.

Samsung retained its position as the top vendor, shipping 60.5 million units, while Apple followed closely with 55 million units. Apple’s growth was supported by sustained demand in both the Asia-Pacific emerging markets and the United States.

Xiaomi secured third place with 41.8 million units, driven by performance in mainland China and emerging markets. Vivo and Oppo rounded out the top five, shipping 22.9 million and 22.7 million units, respectively.

“Markets that had shown strong momentum over the past year, such as India, Latin America, and the Middle East, are now experiencing notable declines in Q1 2025,” said Toby Zhu, Principal Analyst at Canalys.

Zhu noted that mainland China was an exception, benefiting from government subsidy programmes, while Africa saw growth thanks to vibrant retail activity and proactive market expansion by vendors.

Despite the overall stagnation, vendors remain optimistic about a recovery later in the year.

“Some regions, such as Southeast Asia and Latin America, already showed signs of gradual recovery in March. Additionally, decreasing inventory levels and the upcoming launch of new mid- and low-end devices are boosting vendor confidence,” Zhu added.

Interview 

The telecom industry is at the forefront of digital transformation, but with growing concerns about energy consumption and environmental impact, operators and vendors are prioritising sustainability

In the WinWin Live Studio, Emanuel Kolta, Lead Analyst at GSMA Intelligence, sat down with Lim Yu Leong, Vice President, Group Strategy, Engineering and innovation at Singtel, and Singleton Zhou, President of Network Consulting and Integration services at Huawei GTS to discuss the Green Network Index (GNI), which is a figure developed by the GSMA to assess and compare the environmental sustainability of mobile networks. 

Singtel has recently implemented the Singtel Group Environmental Framework, which focuses on two key areas: 

1. Climate action: Reducing greenhouse gas emissions, integrating renewable energy, and optimising network energy efficiency.
2. Product stewardship: Promoting responsible sourcing, sustainable packaging, and e-waste management to support a circular economy.

Singtel’s commitment to sustainability has earned it an A score on the CDP 2023 Climate Change assessment, up from A- in 2022, making it the first Southeast Asian telco to achieve this recognition.  

From the carrier’s perspective, Huawei has also helped the advancement of green telcos. Zhou emphasised that legacy telecom equipment consumes excessive energy and space. To address this, Huawei has:  

1. Modernised 100,000 sites and 4,000 equipment rooms in 2024, helping operators save 740 million kWh of electricity.
2. Reduced OPEX costs by optimising equipment usage and improving network migration.
3. Supported zero-outage transitions using its NetLIVE platform, which uses digital twin technology and AI-driven risk assessment to ensure seamless migrations. 

Another huge challenge in modernising telecom networks is maintaining reliability. According to ENISA statistics, network incidents have increased by 35% annually, making resilience an even bigger priority. 

To combat this, Huawei has deployed its security and resilience networks solution, enabling operators to proactively manage risks. Their NetLIVE platform has already prevented 30+ operational risks in network change projects and improved first-time success rates to 99.99%. 

“We have deployed network resilience solution in several projects. Carrier A’s core network fault can cause a 12-hour interruption, affecting more than 5 million users. After reconstruction, the interruption time was shortened to 1.5 hours, and only 1 million users were being affected,” said Zhou. 

“In addition, the network accident rate was reduced by 70% as well. China operator B adopted our network change resilience solution, which has intercepted more than 30 operation risks. For implementing ‘network change’ request, the ‘first-time success rate’ exceeded 99.99%, and no major accident has occurred,” he continued. 

The Green Network Index (GNI) provides telecom operators with a structured approach to measuring sustainability efforts. For Singtel, the GNI has been a valuable benchmarking tool, allowing it to: 

 – Assess its carbon footprint and energy efficiency.  

– Identify areas for improvement and enhance network sustainability.  

– Align with global best practices in green telecom operations. 

For Huawei, the GNI has helped standardise energy conservation efforts across more than 200 operators worldwide. Their NetLIVE platform, currently deployed in multiple regions, enables operators to track and optimise their environmental performance in real time. 

Looking forward, Singtel will continue refining its sustainability strategies and leveraging the GNI for continuous improvement. Huawei will expand its collaboration with global operators, focusing on low-carbon development and energy-efficient technologies. 

“We firmly believe that deep collaboration is key to accelerating green transformation in the ICT industry. Singtel’s strategy to systematically advance carbon reduction through the GNI aligns closely with Huawei’s philosophy of “More Bits, Less Watts”.,” said Zhou. 

India’s mobile landscape prior to 2022 was murky in the context of 5G. Operators, regulators, and stakeholders were embroiled in disputes over inadequate infrastructure and high spectrum pricing – leaving the country’s burgeoning population of over one billion trailing behind as other nations began rolling out 5G services.

Despite this, India already had a well-developed connectivity ecosystem, with widespread 4G coverage supported by two million base stations and a vast subscriber base. However, operators spent an entire year negotiating the government’s valuation of the initial 5G spectrum, which was reportedly priced at ten times what UK operators paid (£1.36 billion) for their first allocation. Eventually, Indian operators paid over INR 1.5 trillion (US$19 billion) for spectrum access.

A swift turnaround

Today, India’s 5G story is being heralded as a success. A large number of connections -boosted by the country’s huge population – have been achieved in a remarkably short period. This has been made possible through close collaboration between operators and the government, as well as initiatives to reduce handset costs and ensure affordability across all user segments.

According to the Telecom Regulatory Authority of India (TRAI), there were 1.15 billion wireless connections in India at the end of January 2025, up by nearly 629,000 from the end of 2024.

Looking ahead, India is already preparing for 5G Advanced, standalone deployments, and even 6G. Having learned lessons from more mature telecom markets, India is now positioned to become a leader that more developed nations, such as the UK and the US, may one day look to, according to Counterpoint Research analyst Siddhant Cally.

Cally described India’s 5G rollout as “one of a kind”, with an astonishing 470,000 base stations deployed since the commercial launch in 2022, according to recent TRAI data.  

He noted that the timing was fortuitous, as Indian operators had the financial means to invest heavily in network equipment from Nordic vendors Ericsson and Nokia. Both companies reported significant revenue boosts from India’s 5G rollout – and even warned investors not to expect similar growth in the next financial year.

The Jio effect

Cally credited disruptive challenger Reliance Jio Infocomm (Jio) with setting the pace by swiftly deploying an initial 300 5G Standalone (SA) base stations in metropolitan areas – and eventually establishing 100% coverage. At the time, only 25% of global 5G operators had deployed standalone networks, and none had done so nationwide. Jio’s aggressive rollout strategy compelled incumbents Airtel and Vodafone Idea (Vi) to follow suit.

This fierce competition, particularly from Jio, drove connectivity prices down dramatically. At one point, incumbent operators were charging US$4 per gigabyte, while Jio disrupted the market by offering unlimited data plans for just US$5 per month. The resulting price war contributed to the closure of numerous mobile network operators -India once had 14, now reduced to just four.

Regulators also played a crucial role in enabling rapid deployment. Cally highlighted efforts to upgrade existing base stations with fibre optic cables to support 5G, a process that had previously been cost-prohibitive and slow. Government rule changes accelerated this transformation.

However, GlobalData Telecom Project Manager Hrushikesh Mahananda noted that deployment of fibre-optic infrastructure remains constrained by high costs and complex right-of-way permissions. According to GlobalData, only 33% of telecom towers in India are currently fibre-connected. Mahananda estimated that at least 75% will need to be upgraded by 2026 to maintain the commercial viability of 5G.

Affordable devices drive uptake

The rapid adoption of 5G has also been driven by the availability of affordable smartphones. Cally pointed out that 5G handsets are now available from around INR 10,000 (US$118), and Indian subscribers currently consume over 30GB of data per month on average – surpassing even users of China Mobile. He noted that the entry of brands like Vivo and Honor in 2016 brought affordable, feature-rich handsets with 5G connectivity, fast charging, and high-resolution displays to the market.

Fixed wireless access (FWA) has emerged as another key driver. TRAI recorded 5.71 million FWA broadband subscribers in January, with Jio accounting for 4.84 million (84.7%) and Bharti Airtel capturing 872,000 (15.3%). By comparison, there were just 41.1 million fixed-access broadband customers – demonstrating how little fixed infrastructure the nation has, despite the age of fibre and DSL technology.

There’s still considerable room for growth. Vodafone Idea has yet to fully ramp up its 5G deployment, and Cally noted the operator has around 200 million subscribers waiting to be transitioned. State-owned BSNL has around 300 million subscribers. Combined, that’s half a billion potential 5G connections still to come.

Is India’s 5G a success?

So, has India’s 5G journey been a success? “Absolutely,” said Cally, pointing to the rise in ARPU across operators.

“Success comes from the fact that Airtel and Jio have reported strong quarters recently. Success comes from the fact that Jio is now producing its own hardware and software stack in-house. Jio has its own core network and open-RAN compliant 5G hardware. These are the real markers of India’s 5G success.

“The growth in subscriber numbers is one thing, but the growth of the overall ecosystem is another – and that’s what we’re seeing.”

Despite the massive US$20 billion investment in spectrum, Indian operators are now reaping the rewards. Average revenue per user (ARPU) is on the rise. Airtel’s ARPU reached an “industry-high” of INR 209 in FY 2023–24, up INR 16. Vodafone Idea’s ARPU rose from INR 135 to INR 173 year-on-year in Q3 2025. Reliance Jio’s ARPU also increased, hitting INR 206 in Q4 2024, up from INR 181.7 a year earlier. Cally remarked that operators were willing to accept unfavourable policy terms because the potential market one billion connections – is so immense.

The road ahead

Mahananda, however, urged greater development of monetisable 5G use cases in sectors such as education and manufacturing. He also called for further reductions in smartphone prices and more regulatory support to simplify infrastructure rollout and attract investment.

“By addressing these critical areas, India can maximise the benefits of its 5G infrastructure – ultimately fostering economic growth and driving digital transformation,” said Mahananda.

Amazon’s Project Kuiper broadband internet constellation is up and running – at last. The first 27 satellites were finally launched into space from Florida on Monday after bad weather meant an initial launch attempt on 9 April was abandoned.

The satellites are the first of 3,236 that Amazon plans to send into low-Earth orbit for Project Kuiper, a US$10 billion satellite communications offering unveiled in 2019. It targets consumers, businesses and governments and takes on the already established Starlink service as well as global telecommunications providers like AT&T and T-Mobile. 

The mission to deploy the first Project Kuiper operational satellites has been delayed for more than a year. It is now expected to miss a deadline set by the US Federal Communications Commission to deploy half its constellation, 1,618 satellites, by mid-2026. Nevertheless, more launches are planned and, if all goes well, Reuters reports that the company has said it expects to begin delivering services to customers later this year.

It’s still a late start in a market dominated by Starlink and its launch services provider SpaceX. However, some reports suggest that Amazon executives feel that the company’s deep consumer product experience and its established cloud computing business (with which Kuiper is expected to connect) could give it a competitive edge over its rival.

Like Starlink, the company has positioned the service as a boost to connectivity in remote or rural areas – if end users can afford it. At the very least, a new player in the market might bring prices down.

As it is, Starlink boasts more than 5 million internet users across 125 countries, including a presence in more than 20 African countries, though, as we recently reported, not without courting some controversy.

Nevertheless, Reuters reports that Amazon Executive Chairman Jeff Bezos has voiced confidence that Kuiper can compete with Starlink. He apparently told the news agency in a January interview that « there’s insatiable demand » for the internet.