News

The £15 billion merger would drastically reshape the UK mobile market, creating a new market leader with 28 million customers

This week, a report from The Financial Times suggests that the long-awaited merger between Vodafone UK and Three UK is soon to become reality, with an announcement expected later this month.

Sources suggest that negotiations between the two companies are almost finished, with the deal valued at around £15 billion, around £6 billion of which is debt.

Rumours that the two companies have been considering a merger have been circling for years, though discussions between the two companies were only formally acknowledged in October last year.

Initial outlines suggest that the merger will see majority ownership of the combined entity go to Vodafone with a 51% stake, while CK Hutchison, Three UK’s owner, taking the remaining 49% stake. Rumours even suggest that the deal could be something of a steppingstone for Hutchison to exit the UK market entirely, likely by selling off its minority stake to Vodafone at a later date.

Vodafone’s interim CEO Margherita Della Valle took on the role permanently last month, a move that likely steadied the ship and helped advance negotiations with Hutchison.

Naturally, such a mega merger would present a huge shakeup for the UK telecoms market, shrinking the country’s mobile ecosystem down to just three players.

In the past, regulatory bodies within both the UK and the EU have been loathe to allow just three mobile players in a single market; in fact, this was one of the main reasons why the Telefonica’s O2 was disallowed from merging with Three back in 2016.

In recent years, however, the regulatory landscape has gradually grown more relaxed when it comes to major M&A. Earlier this year, for example, European Commissioner Thierry Breton said there were “no taboos” when it came to mergers in the telecoms space, especially when doing so would encourage cross-market consolidation.

But despite regulators warming to the concept of major telecoms mergers, it seems likely they will still impose some form of restrictions on any tie-up between Three and Vodafone. Exactly what stipulations might be imposed on the two companies is unclear, but they could include price freezes for customers and various network rollout assurances, particularly in rural areas.

How would the merger of Vodafone and Three impact the UK’s telecoms industry?  Join the ecosystem in discussion at this year’s live Connected Britain conference

Also in the news:
ECTA calls on the European Commission to think again
Research claims FTTH reduces internet CO2 emissions by a third
Fibre will underpin our 5G future, says ITS Technology Group at Connected North

Press Release

This week, Air Canada and Bell have announced a multi-year partnership that will make it even easier to stay connected — both on the ground and in the skies. The partnership delivers on Air Canada and Bell’s longstanding commitments to elevating the customer experience, while focusing on added benefits for newcomers and visitors to Canada, preparing them to connect to Canada’s best network as soon as they land.

Starting May 15, Air Canada and Bell will offer free messaging for all Aeroplan members worldwide on all Wi-Fi equipped aircraft across Air Canada’s fleet, including Air Canada Rouge and Air Canada Express flights. This offering will enable customers to send and receive text-based messages via onboard Wi-Fi using popular messaging apps including Apple’s iMessage, Meta’s WhatsApp and Messenger, Rakuten’s Viber, and Messages by Google.  Also, this benefit will be available to strategic partner airline loyalty members, including customers of United MileagePlus, Lufthansa Group Miles & More and Emirates Skywards when their account numbers are associated with an Air Canada booking.

Additionally, with this new partnership, newcomers and visitors to Canada will gain easy and immediate ways to stay connected as they arrive in Canada. With complimentary mobile SIM cards on select inbound international flights, newcomers and visitors can activate in flight, allowing them to walk off the plane and be connected.

In keeping with Air Canada and Bell’s commitment to its customers, this partnership will enable additional areas of collaboration and customer benefit, including the development and offering of Aeroplan promotional rewards, as well as building upon Air Canada’s award-winning in-flight entertainment offering with the expansion of Live TV service on flights to the U.S., expected later this summer.

“Canadians are at the centre of this exciting new partnership. We’re so proud to join with an iconic brand to deliver real value to customers across the country, and, importantly, to those new to our country. This multi-faceted partnership with Bell will allow Air Canada customers to keep in touch with friends, family, or colleagues wherever they travel. What’s more, we’re elated that Bell will be joining as the latest Aeroplan partner, creating another way for members to travel more, and travel better,” said Mark Nasr, Executive Vice President, Marketing and Digital, and President of Aeroplan at Air Canada.

“We’re excited to partner with Air Canada, and innovate on delivering enhanced experiences for our customers. For those new to Canada or visiting, we recognize how important it is to stay connected with family and friends, and the new opportunities being connected can bring. Many are already familiar with Bell and know we offer the best network, and we’re thrilled to be making it even easier for them to connect when they arrive in Canada,” said Claire Gillies, Executive Vice President, Marketing and President Consumer at Bell.

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Also in the news:
ECTA calls on the European Commission to think again
Research claims FTTH reduces internet CO2 emissions by a third
Fibre will underpin our 5G future, says ITS Technology Group at Connected North

Interview

Speaking at Connected North, Steve Doddington, Director of Telecoms at Netceed, formerly Comtec, discusses what the changing market means for them and their customers, while also touching on how the rebrand and continuous growth of the group can benefit all

Netceed, formerly Comtec, have had a busy year with their transition as well as servicing Tier 1 customers and trading with over 90 altnets and 230 contractors.

With the transition well underway, Netceed has come together in 14 countries with 1,200 employees. But what does this mean for their customers?

“Our customers benefit in lots of ways. We leverage our group ability to offer products to our customers, so through the wide product portfolio we have, we give our customers the options so we can truly offer them a one-stop-shop solution,” explained Doddington.

“And then, we take that leveraging a step further where we buy very well because we have group volume and we can pass that on to our customers and be very competitive with prices. So, the benefits our customers see are real and what we can also do with that is by implementing our supply chain method, we can add forecasting and inventory management, we hold £20m worth of stock here in the UK and then we can put logistics and value-added services around that as well.”

“So ultimately, we provide a full package that allows our customers to really concentrate on what they are good at, which is building networks and hooking up customers, and allow us to do the rest for them.”

You can watch the full interview from the link below

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Is the UK on track to reach its full fibre ambitions? Join the ecosystem in discussion at this year’s live Connected Britain conference

Also in the news:
ECTA calls on the European Commission to think again
Research claims FTTH reduces internet CO2 emissions by a third
Fibre will underpin our 5G future, says ITS Technology Group at Connected North

Press Release

Virgin Media O2 and Good Things Foundation have partnered to launch a new apprenticeship programme where successful candidates will gain professional qualifications alongside undertaking critical work to increase digital inclusion across the UK.

The telecommunications firm has gifted around £200,000 to fund the ‘Good Things Foundation Future Skills Academy’ which will be delivered by EdTech provider Multiverse with the schemes ranging from Level 3 (the equivalent of A Level) right through to Level 6 (undergraduate degree level).

The analytical apprenticeship schemes delivered by Multiverse will help successful candidates develop business critical skills such as data analysis and project management.

As part of their schemes, the apprentices will split their time between working for organisations in Good Things Foundation’s National Digital Inclusion Network and working towards their fully funded apprenticeship qualification, which would not be possible without support from Virgin Media O2.

The skills candidates will learn through their apprenticeship will help them to digitally transform their organisation. It is envisioned this will free up their time and reduce costs, enabling them to provide even greater support to people who are digitally excluded in their communities.

In June 2021, Virgin Media O2 committed to hiring more than 1,000 apprentices, and earlier this year announced plans to hire more than 350 apprentices into the business in 2023.

Karen Handley, Head of Future Careers at Virgin Media O2, said: “As one of the UK’s largest apprenticeship providers, we know the real difference that apprentices can make to an organisation which is why we’re proud to help fund the Good Things Foundation’s Future Skills Academy.

“Through their apprenticeship schemes candidates will learn the skills that will help them tackle digital exclusion in their communities.”

“We’re committed to helping eradicate data poverty in the UK, and through our work in partnership with Good Things Foundation, we’re getting more people online and connected than ever before.”

Helen Milner OBE, Group Chief Executive, Good Things Foundation said “Data literacy and business transformation skills are becoming increasingly vital to help future-proof organisations.  These are the skills of the future that will help organisations adapt and respond to rapid technological development.

“Through partnering with Virgin Media O2 and Multiverse, we are offering members of our National Digital Inclusion Network access to fully funded professional development in business-critical skills. This opportunity will help build organisation resilience for members of our network so that they can continue to provide vital services to fix the digital divide in local communities.”

Jeremy Duggan, President of Multiverse said: “The pace of technological change is leaving far too many people behind without access to the skills and tools they need to thrive. Addressing this problem is an objective that unites Multiverse, Virgin Media O2 and Good Things Foundation.

Through our partnership, we’ll empower individuals with the data and digital skills that not only open up their own careers, but also support the essential work of the organisations they belong to. Apprenticeships are simply the best way to deliver those skills, because the future of learning is working; applying skills everyday, in real-world settings.”

As well as working together on the Good Things Foundation’s Future Skills Academy, Virgin Media O2 and Good Things Foundation founded the National Databank in July 2021, where people in need can access 20GB of free O2 data – enough for around 220 hours of internet browsing – per month.

Since the National Databank was launched, Virgin Media O2 has provided more than 70,000 free O2 SIM cards and 50,000 free O2 data vouchers and has committed more than 61 million GB of free O2 data to the initiative by the end of 2025.

How are the UK’s network operators helping to nurture the next generation of telecoms professionals? Join the ecosystem in discussion at this year’s live Connected Britain conference

Also in the news:
ECTA calls on the European Commission to think again
Research claims FTTH reduces internet CO2 emissions by a third
Fibre will underpin our 5G future, says ITS Technology Group at Connected North

News

The combined entity would control around two-thirds of the Sri Lankan mobile market

This week, Dialog Axiata and Bharti Airtel have announced their intention to merge their respective Sri Lankan units.

Financial terms of the deal were not disclosed, though the announcement notes that Airtel will receive new shares in Dialog as part of the deal.

Dialog is already the current mobile market leader in Sri Lanka, with its roughly 18 million customers representing around 60% of the total market. Airtel Lanka, meanwhile, is the country’s second largest mobile player, with roughly 5 million subscribers.

Thus, if combined, the resulting entity would serve around 23 million customers, almost two thirds of the country’s 36.18 million mobile connections in 2023.

The merger still requires shareholder approval from both companies and will be subject to the typical regulatory oversight.

Hutch and SLT-Mobitel fill out Sri Lanka’s mobile tetrarchy, with Hutch having acquired the market’s fourth place player, Etisalat Sri Lanka, back in 2018.

This is not the first time that Dialog and Airtel have looked to join forces in Sri Lanka. The pair first entered merger discussions back in 2016. At the time, Airtel was a much smaller player in the Sri Lankan market, with the deal expected to carry a price tag of only around $100 million. Ultimately, however, a deal could not be reached.

The merger comes at an interesting time for Sri Lanka on a macroeconomic level. The country has been facing an economic imbalance for many years, with imports far outweighing exports and draining the nation’s foreign currency reserves. In recent years, coupled with the economic fallout of the coronavirus pandemic, the situation has frown to a full-blown crisis, with soaring inflation driving public protests to overthrow the civilian government last year.

Want to keep up to date with all of the latest international telecoms news? Click here to receive Total Telecom’s daily newsletter straight to your inbox

Also in the news:
ECTA calls on the European Commission to think again
Research claims FTTH reduces internet CO2 emissions by a third
Fibre will underpin our 5G future, says ITS Technology Group at Connected North

News

The consortium, including both telecoms and satellite specialists, will bid to jointly operate the European Commission (EC)’s burgeoning IRIS² low-earth orbit satellite constellation

Satellite communication networks have seen a meteoric rise in recent years, buoyed by the steady growth of Elon Musk’s Starlink constellation, which now comprises almost 4,000 satellites in low Earth orbit (LEO). Soon, the expansion of similar constellations, such as the UK government-backed OneWeb and Amazon’s nascent Kuiper Project, will see the sky above our heads soon filled with orbiting devices capable of beaming down connectivity to hard to reach areas.

For a number of years, the European Union (EU) has expressed its wish to join this emerging space race, saying that the creation of its own LEO satellite network would be crucial to ensuring the region’s digital security and sovereignty.

Last year, these ambitions finally began to take shape with the announcement of the Infrastructure for Resilience, Interconnectivity and Security by Satellite (IRIS²) constellation, the EU’s €6 billion satellite project.

According to the EU’s plans, IRIS² will seek to cover the entirety of Europe and Africa, providing connectivity for governments, businesses, and citizens.

To achieve this, the project will require the launch of around 170 new LEO satellites, which will be incorporated with various existing orbital assets in Low, Medium, and geostationary orbits. The EC aims to launch the first of these satellites in 2024, with the entire constellation completed and ready for service in 2027.

The public tender process for the right to build and operate IRIS² was launched last month, with the EU having agreed that €2.4 billion in public funding would be provided, with the rest of the €6 billion to be provided by the private sector.

Now, this week has seen the formation of a new consortium that aims to bid for the IRIS², touting their collective expertise in both the satellite and telecoms sectors.

The consortium is to be led by Airbus Defence and Space, Eutelsat, Hispasat, SES, and Thales Alenia Space, with a wider ‘core team’ that comprises Deutsche Telekom, OHB, Orange, Hisdesat, Telespazio, and Thales.

The consortium is reportedly open to additional members, with startups and SMEs encouraged to join and build ‘amore innovative and competitive European space sector’.

“The integrated team aims to foster collaboration among all European space players across the whole connectivity value chain with a view to enabling EU’s strategic autonomy through the delivery of sovereign, secure and resilient government services to protect European citizens,” said the group in a statement. “The team will leverage synergies between government and commercial infrastructures. The teaming partners are also well positioned to provide commercial services to bridge the digital divide across European territories and to increase Europe’s global outreach and competitiveness as a space and digital power on the global market.”

Each members specific contributions to the project have yet to be revealed.

The EC is set to evaluate initial proposals until May 25, after which it will seek more detailed proposals. A final decision on the winner of the contract will be decided by the end of the year, with an official announcement expected to be made in late January 2024.

Want to keep up to date with all of the latest international telecoms news? Click here to receive Total Telecom’s daily newsletter straight to your inbox

Also in the news:
ECTA calls on the European Commission to think again
Research claims FTTH reduces internet CO2 emissions by a third
Fibre will underpin our 5G future, says ITS Technology Group at Connected North

News

With the Malaysian government reviewing its 5G equipment tender process, representatives from both the US and EU warned that Huawei should not be allowed to participate in the country’s growing 5G network

Today, a report from The Financial Times says that both the EU and US have sent letters to the Malaysian government urging them to disallow Chinese equipment vendor Huawei from participating in the country’s national 5G network.

According to the report, the letters from both parties raised this issue of national security, as well as suggesting that allowing Huawei to supply network equipment could impact international investment within the country.

“Senior officials in Washington agree with my view that upending the existing model would undermine the competitiveness of new industries, stall 5G growth in Malaysia, and harm Malaysia’s business-friendly image internationally,” said the US ambassador to Malaysia, Brian McFeeters, in a letter seen by The Financial Times. “The US and other countries prioritise a fair and transparent review process and contract sanctity, as does the international business community. Allowing untrusted suppliers in any part of the network also subjects Malaysia’s infrastructure to national security risks.”

The US banned Huawei from its own 5G networks back in 2019 and has lobbied governments across the world to do likewise. The EU, on the other hand, has taken a less prohibitive approach, rejecting an outright ban but encouraging telcos to steer clear of ‘untrusted suppliers’.

The news comes as the Malaysian government prepares to finalise a review of its 5G equipment tender process, which saw Sweden’s Ericsson win a $2.5 billion contract to provide 5G kit back in 2021.

Malaysia’s 5G journey has been more colourful than most. Back in 2021, the Malaysian government decided to forego the traditional 5G spectrum auction, instead setting up Digital Nasional Berhad (DNB), a state-owned vehicle to build its own wholesale 5G network.

This decision was immediately controversial, with the country’s operators saying they would not buy services from DNB, arguing they could roll out 5G networks more efficiently themselves. It took over a year of threats and coercion from the government to finally bring the nation’s mobile operators to heel, who finally agreed to split a 70% stake in DNB between them in August 2022.

While these discussions with the domestic telcos were ongoing, DNB was wasting no time with the buildout of its 5G network.

The state-owned company announced that it had selected Ericsson as its key partner for its 5G project towards the end of 2021, with the Swedish equipment vendor agreeing provide a suite of 5G solutions, including the network core, radio access network (RAN), a various supporting services. The ten-year contract was valued at roughly $2.5 billion.

Since then, DNB has made considerable progress with its 5G rollout, saying at the start of the year that it had already covered just under half (47.1%) of the country’s populated areas.

However, the rollout was about to hit a bump in the road when, in November 2022, a snap general election led to a change of national government. This new government, led by Anwar Ibrahim, quickly launched a review into the Ericsson 5G tender process, citing transparency concerns.

This review process, which was due to be completed by the end of March, presented an opportunity for Ericsson’s rivals, including Finland’s Nokia and China’s Huawei, to restate their claim to a major role in Malaysia’s 5G future. Both companies duly began lobbying the government, arguing that they should be allowed to participate in DNB’s 5G network.

Potential outcomes of the review could include DNB’s privatisation, the creation of a second national 5G network, or that DNB hands over part of its current network build to another 5G equipment vendor.

Want to keep up to date with all of the latest international telecoms news? Click here to receive Total Telecom’s daily newsletter straight to your inbox

Also in the news:
ECTA calls on the European Commission to think again
Research claims FTTH reduces internet CO2 emissions by a third
Fibre will underpin our 5G future, says ITS Technology Group at Connected North

News

The European Competitive Telecommunications Association (ecta) instructed law firm Jones Day to look into the Draft Recommendation on the regulatory promotion of Gigabit connectivity released by the European Commission on 23 February 2023 and finds the analysis supports ecta’s warning that it violates the provisions and principles in the European Electronic Communications Code.

The analysis provided by Jones Day concluded that it:

• restricts the discretionary powers of National Regulatory Authorities (NRAs) to impose price control obligations, in favour of wholesale price flexibility for SMP ( significant market power) operators,
• restricts the discretionary powers of NRAs in deciding to impose other remedies than access to civil engineering infrastructure, in a way which provides a higher priority to access to civil engineering infrastructure over other remedies compared to what is foreseen by Art. 72 and Art. 73 of the EECC,
• encourages the non-imposition of regulated wholesale price control obligations in low-populated areas, and
• promotes wholesale price increases in the context of copper switch-off.

In light of the findings ecta calls on the Commission to consider repealing the 2010 NGA and 2013 NDCM Recommendations and withdrawing the Draft Recommendation.

ecta Director General Luc Hindryckx is quoted as saying “The EECC has determined the framework, and the experience of the NRAs is suitable and sufficient to address the objectively different situations existing within the different Member States. It is therefore no longer necessary to issue a Recommendation.”

The full legal analysis is available here.

News

The global Sustainability Survey, conducted by the FTTH Council Global Alliance (FCGA) has examined environmental, social, and governance (ESG) and corporate social responsibility (CSR) strategies amongst network operators, service providers, and vendors across five geographical regions, Europe, Latin America (LATAM), North America and Middle East and North Africa (MENA), and Asia Pacific.

It found that 81% of European respondents already have an ESG / CSR strategy, followed by LATAM (45%), North America and MENA (both at 16%), and Asia Pacific (15%).

The survey referenced a Boston Consulting Group report that estimated that the Information and Communications Technology (ICT) sector is responsible for up to 4% of all global emissions—twice the levels of the aviation industry.

Research conducted for the sustainability survey by market research firm RVA, LLC and the Fiber Broadband Association (FBA) find that fibre consumes less energy than other broadband technologies and as a result Fibre-to-the-Home (FTTH) connectivity directly reduces carbon output, leading to a 34% reduction in internet CO2 emissions.

Gary Bolton, President of the Fiber Broadband Association said of this finding, “Fibre is the only way to simultaneously deliver high-speed, reliable internet services and support ESG and CSR goals, green energy, less waste, and the greater good of society.”

Other findings of the sustainability survey include:

• Supporting customer Greenhouse Gas (GHG) reduction programs through the Life Cycle Assessment (LCA) methodology enables businesses to identify sustainability enhancements and develop GHG impact estimates for early-stage innovation programs.
• Most companies are working on plans to achieve at least a 40% reduction in GHG emissions by 2030, with long-term goals of net zero by 2040.

The FTTH Council Global Alliance comprises six regional FTTH Councils with the common goal to accelerate fibre broadband adoption. The councils include the Digital Council Africa, Fibre Broadband Association, Fibre Broadband Association LATAM Chapter, Fibre Connect Council MENA, FTTH Council Asia Pacific, and FTTH Council Europe.

Kholoud Aldorgham, Director General for the Fibre Connect Council MENA said “The telecommunications sector has a significant role to play in reducing carbon emissions and achieving sustainability goals. Fibre optic technology is one of the most sustainable broadband technologies available today. Not only does it consume less energy, but it also has a longer lifespan than other technologies, which reduces the amount of waste generated.” He added that the MENA region had work to do on developing sustainable practices in telecoms but that investment in the deployment of fibre optic networks would be a step in the right direction.

CEO of the FTTH Council Africa, Juanita Clark, is a judge for the annual World Communication Awards which include a sustainability category which will be looking for CSP’s own sustainability initiatives and how they are enabling customers to reduce carbon emissions. Download the categories brochure to find out more.

VIEWPOINT

Communications service providers across the world are adopting strategies to grow revenue from the enterprise segment as they play a crucial role in the digital transformation of enterprises. The ever-increasing 5G ecosystem helps them provide reliable and ultra-high-speed networks while allowing them to offer innovative use cases to businesses to improve productivity, operational efficiency and customer experience.

China Mobile International (CMI), one of the leading information service providers in the world, is at the forefront of providing a superior experience for the B2B digital service. It has already built more than one million 5G base stations and its number of 5G users has ranked top in China. In addition, the service provider has also built a large number of 5G industry applications to address the needs of enterprises from different business verticals.

“CMI will establish a new information service system of “5G + computing network + capability service” to provide quality services of “Intelligent Global Connectivity” to global customers. CMI will also transfer its excellent experience in China to global markets to promote 5G+ capabilities, including 5G industry solutions (smart factories and smart ports), 5G application capabilities such as OneCyber, 5G platform services and 5G consulting, and information services,” explains Harley Tan, general manager of the Product Management Department of China Mobile International.

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Further, with respect to the computing network, cloud and network integration will be the key investment direction in the next two to three years. “Global traffic will become decentralized, and CMI’s global network will evolve towards computing network, achieving leapfrog development. For example, we will continue to expand terrestrial cable resources, build global data centers, improve core data center capabilities, and continuously cultivate potentials to optimize the overall computing network,” added Harley Tan.

CMI is also planning to build cloud-network integration service capabilities, further promote 5G+ cooperation, develop ecosystems, and build capabilities such as big data, Artificial Intelligence (AI), blockchain, and security to support the intelligent digital transformation of the whole society.

Differentiated network capabilities of CMI 

As digital pervasiveness continues to grow, there is an urgent need to build an advanced ICT infrastructure. As a global digital player, CMI will build an ultra-broadband all-optical high-speed network over the next ten years. This network will cover 87 countries and regions around the world, enabling fast access to 138 cities and 230 PoPs.

“CMI is capable of providing an experience featuring ultra-large capacity, ultra-low latency, and high security and reliability for industry digital connections around the world, enabling every region, enterprise, and individual to enjoy the dividends of digital economy development,” says Harley Tan.

The growing consumption of digital services coupled with the popularity of several high-bandwidth consuming applications means that service providers are constantly under pressure to increase the network capacity. CMI has built a future-oriented ultra-broadband network in the Southeast Asia region as the traffic in the region touched 467 Tbps, with a growth rate of over 40%. It will use the ultra-high-speed 400G technology, with the single fiber capability reaching 100 Tbps, to meet the future requirements of massive cross-border data transfer.

Apart from this, large, medium and small businesses can benefit from the networks with ultra-low latency. “CMI is dedicated to building low-latency connections, providing better service experience for enterprises moving to the cloud, and building high-quality networks. CMI adopts the advanced OXC all-optical networks, which allow flexible selection between different routes and enable end-to-end latency visibility, meeting the ultra-low latency connection requirements of the region,” adds Harley Tan.

The third key area is ensuring security and reliability for businesses during their digital transformation process and migration to the cloud. “More than 90% of the banking, finance, government, and manufacturing customers regard high security and reliability as the primary indicators of private data lines. CMI uses advanced network protection mechanisms and disaster recovery and backup policies to protect enterprises’ core data,” says Harley Tan.

In Conclusion

As the digital transformation picks up in all geographies, the enterprise market offers massive growth opportunities to the CSPs. The service providers will do well to adopt strategies used by CMI in addressing the needs of the businesses.