News

The Verband kommunaler Unternehmen (German Association of Local Public Utilities, VKU) said the regulator should force Deutsche Telekom to provide regular information about its fibre network expansion plans to prevent overbuild

This week, the head of the VKU, Ingbert Liebing, has called upon Klaus Müller, head of the Federal Network Agency (Bundesnetzagentur, BNetzA) “to intervene boldly now and oblige Telekom to provide regular information about its expansion plans in the next 12 months”.

The VKU holds that the opacity of Deutsche Telekom’s fibre rollout plans are having a negative impact on the nation’s fibre-to-the-home FTTH rollout, making it hard for rival operators to know where they can profitably invest.

“Hundreds of reports from overbuilding show that strategic overbuilding is by no means a niche phenomenon, but rather that strategic overbuilding, as practiced by Telekom, is slowing down the nationwide expansion of fibre optic networks throughout Germany,” said Liebing.

The VKU reports that 62% of its member companies have been overbuilt or changed plans due to the threat of being overbuilt; in the worst cases, rival operator’s network expansions have been cancelled entirely as a result of Deutsche Telekom’s overbuild plans.

BNetzA itself has reportedly received almost 300 complaints about overbuild since monitoring the situation at the beginning of July.

Deutsche Telekom, naturally, say they are simply competing fairly, as allowed by the current regulatory framework, arguing that they already face fierce competition in the fibre market.

Earlier this month, a WIK report on the matter commissioned by BNetzA found that, while some urban parts of the country could feasibly support the deployment of two or more adjacent networks, in suburban and rural areas overbuild would likely result in more costly and delayed rollouts.

“In order to expand a comprehensive fiber optic network and achieve the federal government’s expansion goals, clear regulatory steps are now urgently needed to counter the strategic structure of the dominant company,” said Jürgen Grützner, MD of the Association of Providers of Telecommunications and Value-Added Services (VATM), commenting on the report.

Is the German regulatory framework doing enough to accelerate the fibre rollout across the country? Join the operators in discussion at this year’s Connected Germany conference live in Munich

Also in the news:
The power of hybrid workforces: The imperative of cloud communications and a mobile-first approach
Shared Rural Network facing two-year delay
Ice Norway doubles down on Mavenir with cloud-native IMS deal

News

The investment will take place over the next two years, with the company aiming to expand its cloud computing capabilities and drive the development of digital skills in the country

This week, Microsoft and the Australian government have announced that the company will invest AU$5 billion ($3.2 billion) in expanding their cloud computing presence in the country.

The investment will see the company grow its domestic computing power by 250%, increasing the number of data centres it owns in Australia from 20 to 29 in Canberra, Melbourne, and Sydney.

The project also includes the establishment of a Microsoft Datacentre Academy in Australia and an expansion of the company’s national digital skills programme, aiming to support the growth 300,000 Australians in digital skills.

In their press release, the company explained the motivation behind this investment as the expected boom in demand for cloud computing sparked by the widespread adoption of AI over the coming decade. Research the company commissioned showed that this market is expected to double from AU$12.2 billion ($7.7 billion) in 2022 to AU$22.4 billion ($15.4 billion) in 2026.

Finally, the Microsoft says it will expand the company’s partnership with the Australian cybersecurity agency, the Australian Signals Directorate (ASD), aiming to collaborate on developing new solutions to defend against cyberthreats on a national level.

The ASD are currently in the process of devising a new national cybersecurity strategy to cover the period until 2030, which is expected to be published next month.

“This is our largest investment in Microsoft’s 40-year history in Australia and a testament to our commitment to the country’s growth and prosperity in the AI era,” said Microsoft President Brad Smith. “We’re coupling this AU$5 billion in computing capacity and capabilities with AI and engineering that will strengthen the nation’s cyber defence, including a deeper collaboration with the Australian Signals Directorate.”

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

Also in the news:
The power of hybrid workforces: The imperative of cloud communications and a mobile-first approach
Shared Rural Network facing two-year delay
Ice Norway doubles down on Mavenir with cloud-native IMS deal

News 

The funding marks the company’s third large-scale investment in the last three years 

Fibre network provider ITS Technology Group has announced it has secured £100 million of debt funding from global investment firm Avenue Capital Group, which it will use to accelerate its full-fibre network rollout across the UK. 

Since 2020, ITS has secured two separate rounds of funding from investor Aviva Investors, totalling £145 million, which has allowed the firm to expand its 10Gpbs-capable XGS-PON fibre network to over 450,000 UK business premises. 

ITS aims to pass one million premises within the next few years. According to the firm, they now operate over 80 networks across the UK. 

“We’re really excited to welcome our new investor, Avenue Capital Group. This additional funding recognises the strength in our business plan as we continue to expand our network, as well as consider strategic acquisitions, as the fibre market adapts to changing technology and undergoes consolidation,” said ITS CEO Daren Baythorpe. 

“Following last year’s follow-on investment from Aviva Investors and the acquisition of NextGenAccess, we have worked with our partners to drive connections with both businesses and with public sector organisations. In addition, we’ve had a strong focus on service, investing in systems and delivery to drive improved experience, providing agility and assurance alongside our business growth.” 

“We’re delighted to be supporting ITS’ business-to-business fibre rollout in the UK. The company’s management team not only has very deep industry relationships to execute on their business plan, but it has also coupled it with a strong delivery track record. This funding fits well with our European strategy of investing in high quality companies with sustainable business models,” said Jonathan Ford, Head of Europe Strategy at Avenue Capital. 

The funding may also be used to finance strategic M&A activity, as chatter around altnet consolidation around the UK continues. 

In related news, this month ITS partnered with Evolve to help upgrade their GPON network to be 10Gbps capable. The firm claimed that the partnership will allow businesses to keep up with the ever-increasing demand for bandwidth-intensive technologies. 

“Our partnership with ITS signals a new era of connectivity for the UK, bolstering the country with enhanced productivity, digital confidence, and efficiency. Key industries, including construction, retail, and fuel forecourts, stand to gain from the 10Gbps speeds made possible by this technology,” said Alan Stephenson-Brown, CEO of Evolve. 

Hear more about the UK’s fibre rollout progress at next year’s Connected Britain, book discounted tickets now! 

Also in the news:
AT&T posts strong showing in Q3, reports nearly 300K fibre adds
FCC begins push to reinstate net neutrality  
SK Telecom partners with Mars Auto to develop 5G self-driving trucks 

News 

The addition of democrat Anna Gomez to the Federal Communications Commission (FCC) could be key in the rule’s reinstatement  

On Thursday, the FCC has voted to advance a proposal to reinstate open internet protections, more commonly known as net neutrality. 

The new rules are now open for public commentary and will be voted on again in the coming months. 

The FCC voted 3-2 on a proposal to reinstate the rules and reestablish the Commission’s authority over how internet providers handle network traffic. The move comes after the Democrats took control of the FCC (comprised of five members) for the first time since Biden’s presidency began, with the long-vacant fifth and final seat was filled by Democrat Anna Gomez last month. The previous standstill of the commission was caused by a 2-2 political voting deadlock, after Biden’s initial preferred candidate, Gigi Sohn, faced fierce objections from the Republican party. 

The main principle of net neutrality is that everyone should receive the same access to internet content without interference by their service provider. 

The legislation has long been the cause of deep political debate. President Obama imposed the laws in November 2015, which were then rescinded by President Trump when he took office. 

Critics of net neutrality argue that preventing ISPs from charging different prices for different services disincentivises companies from innovation. Such critics include Republican FCC Commissioner Brandon Carr, who argues that since Trump’s abolition of the rules, “broadband speeds in the U.S. have increased, prices are down (and) competition has intensified.” He warns that that, if reinstated, these net neutrality rules would result in governmental control of the internet. 

In contrast, those in favour of net neutrality argue that the laws will ensure that everyone gets access to the same internet, and that ISPs will not be able to control what information consumers can access. 

According to FCC chair Jessica Rosenworcel in a statement, the pandemic “made it crystal clear that broadband is no longer nice-to-have; it’s need-to-have for everyone, everywhere. It is not a luxury. It is a necessity. It is essential infrastructure for modern life. […] Yet even as our society has reconfigured itself to do so much online, our institutions have failed to keep pace.” 

Critics of net neutrality argue that preventing ISPs from charging different prices for different services disincentivises companies from innovation. Such critics include Republican FCC Commissioner Brandon Carr, who argues that since Trump’s abolition of the rules, “broadband speeds in the U.S. have increased, prices are down (and) competition has intensified.” He warns that that, if reinstated, these net neutrality rules would result in governmental control of the internet. 

In contrast, those in favour of net neutrality argue that the laws will ensure that everyone gets access to the same internet, and that ISPs will not be able to control what information consumers can access. 

“The law requires telecommunications providers to protect the confidentiality of the proprietary information of their customers,” said Rosenworcel in a statement. “That means that these providers cannot sell your location data, among other sensitive information. Those privacy protections currently extend to voice customers but not broadband subscribers. Does that really make sense? Do we want our broadband providers selling what we do online? Scraping our service for a payday from new artificial intelligence models? Doing any of this without our permission?” 

“Today, there is no expert agency ensuring that the internet is fast, open, and fair,” she added.  

“And for everyone, everywhere to enjoy the full benefits of the internet age, internet access needs to be more than just accessible and affordable. The internet needs to be open.” 

Join the conversation around Net Neutrality at next year’s Connected America, March 12-13, 2024 in Dallas, Texas. Book your tickets now! 

Also in the news:
Ice Norway doubles down on Mavenir with cloud-native IMS deal
Vivendi wants shareholders to vote on KKR deal
Only a test: T-Mobile CEO downplays customer migration plans 

News

In an email sent to staff, T-Mobile chief Mike Sievert stressed that no plans have yet been changed and all affected customers would be adequately informed

Last week, leaked documents showed that T-Mobile was planning on migrating customers from a number of mobile plans onto newer, more expensive tariffs.

The documents showed that this was not a case of sunsetting older mobile plans, but rather a collectively shifting customers up a tier, on to more modern and comprehensive mobile plans.

According to some sources, affected customers could face a cost increase of $5–10 per month.

Customers would seemingly have the option to opt out of this change, but would be required to contact support to do so.

Now, however, T-Mobile CEO Mike Sievert has released a statement arguing that the leaked information did not show a full commitment to this migration plan, calling it just “a very small test”.

In a company-wide email, as reported by The Mobile Report, he said:

“Last week, some internal training documents were leaked to a website that covers mobile industry updates. The media quickly picked up the information and ran with it, as they often do with leaks. Unfortunately, docs like this – without more context – leave a lot of room for interpretation. In this case, it was largely inaccurate and caused a lot of confusion for our customers (rightfully so!).”

“I’m sure people are also asking many of you what’s going on. So, I wanted to offer a bit more background to help answer questions you may be getting. First, the biggest piece of missing context was that the leaked materials related to a very small test.”

He further explained that this test would include only “a small subset of customers who are on older rate plans”.

Exactly how many customers will be affected remains unknown.

“Tests like these help us design new programs, offers and promotions, and, probably most important, ensure we are getting the experience right for our customers,” read the email, which also promised the company would “make adjustments or shifts as needed over time”.

Ultimately, knowledge that this shift is simply part of a small test will be of little comfort to those customers seeking opt out of the shift – and perhaps even less so for those that are not paying close attention and only notice the shift when their bills go up.

Want to keep up to date with all of the latest international telecoms news? Sign up for Total Telecom’s daily newsletter   

Also in the news:
Reflections on the Connected Britain Awards 2023
Ericsson to sue Lenovo in ongoing 5G patent battle
KKR makes a binding offer on TIM’s fixed network 

News 

Ice Norway claim the deal will allow it to provide market-leading 5G services 

Network software provider Mavenir has announced that mobile operator Ice Norway has fully deployed the former’s end-to-end Cloud Native IMS (IP Multimedia Subsystem) solution, in cooperation with Red Hat. 

The operator already has a longstanding relationship with Mavenir, using the software specialist’s Converged Packet Core to power its 4G and 5G networks and Mavenir’s Webscale Platform for the provision of new applications. 

Mavenir claims that their cloud-native IMS core network infrastructure allows the delivery of next-generation communication services, so that customers can get a consistent experience wherever they are located. 

“Cloudification of our network is a central pillar of our development strategy, to ensure that we can continue to deliver optimal quality of service to our subscribers and leverage innovative technologies to enhance the customer experience. As a trusted technology partner and one of the leading market providers for voice, data and messaging, upgrading to Mavenir’s IMS is a natural progression for Ice Norway as we create a future-proof foundation for the opportunities ahead,” said Eivind Helgaker, CEO of Ice Norway said in a press release. 

Pardeep Kohli, President and CEO at Mavenir added, “We are proud to be evolving our partnership with Ice Norway to encompass adoption of our best-in-class IMS solution which, in deployments around the world, is making the vision of 5G networks on any cloud a commercial and technical reality. With this strategic project expansion in the significant Nordic market, Mavenir is further demonstrating its leadership in providing cloud-native, containerized IMS globally for the mobile core.” 

Ice Norway launched in 2009 and is the fastest growing Norwegian operator, with almost 1 million subscribers.  

Want to keep up to date with all of the latest international telecoms news? Sign up for Total Telecom’s daily newsletter    

Also in the news:
Reflections on the Connected Britain Awards 2023
Ericsson to sue Lenovo in ongoing 5G patent battle
KKR makes a binding offer on TIM’s fixed network   

News

The outspoken shareholder thinks KKR’s bid for TIM’s fixed line network undervalues the assets by around €7 billion

Earlier this week, KKR finally made a binding offer for a stake in TIM’s would-be NetCo, which includes the company’s fixed-network.

The financial details of the offer were not disclosed to the public, but reports suggest that it values the various assets at around $23 billion.

But while this offer could be the solution to TIM’s debt-laden woes, the company’s largest shareholder, Vivendi, is far from enthusiastic. Ever since the plan to spin off the company’s network assets was first devised by CEO Pietro Labriola, Vivendi has appeared dissatisfied, saying TIM’s assets should be valued closer to €30 billion.

Yesterday, speaking to analysts following a company earnings call, Vivendi reiterated this point, with CFO Francois Laroze saying that the company wants “to express our position officially” via a shareholders meeting or an extraordinary meeting.

It is worth noting here that, until recently, it was assumed that a stake in TIM’s submarine cable unit, Sparkle, was also being sold under the NetCo umbrella. However, this latest bid from KKR includes a separate offer for the subsea unit, potentially opening the door to selling the various assets separately. Indeed, this could even lead TIM to begin a separate auction process for the subsea unit.

The government has long considered both TIM’s submarine cable assets to be critical national infrastructure and so would surely be heavily interested in building a stake in the business. If so, it would likely do so though its investment bank Cassa Depositi e Prestiti (CDP), with which it had previously made bids for TIM’s network in partnership with Macquarie.

Regardless of how the deal is being formulated, Vivendi seems intent on remaining a thorn in KKR’s side. Nonetheless, the company said it would “contemplate all options” for its holdings, so there may yet be light – however dim – at the end of this tunnel.

KKR’s bid is reportedly valid until November 8, with the possibility of being extended to December 20.

Want to keep up to date with all of the latest international telecoms news? Sign up for Total Telecom’s daily newsletter   

Also in the news:
Reflections on the Connected Britain Awards 2023
Ericsson to sue Lenovo in ongoing 5G patent battle
KKR makes a binding offer on TIM’s fixed network 

Press Release

[Dubai, the UAE, October 12, 2023] At the 9th Ultra-Broadband Forum (UBBF 2023), David Wang, Huawei’s Executive Director of the Board and Chairman of the ICT Infrastructure Managing Board, delivered a keynote titled “UBB5.5G Maximizes Digital Productivity” on the ultra-broadband industry’s latest developments and best practices. During this keynote, he shared his viewpoints on the strategic direction that ultra-broadband (UBB) is currently moving in – upgrading networks, accelerating the widespread application of digital technologies, and maximising digital productivity.

Deeper application of digital technologies in the real economy is driving increases in productivity. This so-called digital productivity is rapidly becoming a core engine of growth for the digital economy. Digital technologies, such as cloud, AI, 5G, and UBB, are also constantly evolving. They are now being seen in enterprises and homes through new digital services. This has made digital transformation faster for enterprises and is bringing better intelligent entertainment, life, and work to the masses. The adoption of these new services is also compounding advances in digital productivity.

Wang said, “Originally, ultra-broadband networks were focused on delivering connectivity. Then we shifted gears to pursue better experience. In the 5.5G era, ultra-broadband will focus on further unleashing productivity of digital services, so that everyone can access digital services more easily and efficiently, regardless of where they are. Such next-generation digital infrastructure will provide ubiquitous 10-gigabit access, elastic ultra-broadband transport, and massive computing power supported by hyper-converged data centers. The rollout of this new generation of digital infrastructure will also enable faster development of the digital economy. Huawei will join hands with customers and industry partners to drive F5.5G and Net5.5G evolution as well as the entire ultra-broadband industry forward to maximize digital productivity.”

Maximizing digital productivity, Wang explained, will require overcoming three critical challenges. First, the industry will need to figure out how to support the massive computing power needed to provide digital services. Second, it will need to provide guaranteed connectivity services for massive numbers of concurrent users. Third, it will need to ensure ubiquitous access and high-quality experience for anyone, no matter where they are.

He went on to explain the upgrades productivity-centric ultra-broadband networks will require in the future.

First, ubiquitous 10-gigabit access could be achieved by accelerating mobile broadband, home broadband, enterprise campus network, and enterprise private line service upgrade to 10 Gbps. This would enable ubiquitous 10-gigabit mobile broadband, provide whole-house seamless 10-gigabit home networks, upgrade 10-gigabit campus connectivity for organizations, and deliver elastic, high-throughput, 10-gigabit private line services. Thanks to these high-quality, 10-gigabit connections, digital services will benefit more people and organizations around the world.

Ubiquitous 10-gigabit access would also need converged bearer networks to evolve into high-quality, elastic transport networks. Most IP and optical metro networks would need to support 400G and further evolve to 800G. Backbone networks would also support 400G, with stronger transport capabilities. End-to-end optical cross-connect (OXC) networks will provide experience assurance for latency-sensitive services. Currently, the acceptable latency for access, metro, and national network services is 1 millisecond, 5 milliseconds, and 20 milliseconds, respectively.

In addition, hyper-converged data centers will be needed to fully unleash AI computing power. By adopting an advanced hyper-converged architecture, Wang said, data center networks would be able to address general-purpose computing, storage, high-performance computing, and AI computing requirements. When coupled with 800GE high-speed interconnection, this will significantly increase return on investment. With explicit congestion notification algorithms and network scale load balancing algorithms, lossless networks with 85% higher IOPS and AI cluster networks that increase training efficiency by 20% are possible.

Last but not least, telecom large models would be needed to make networks more autonomous and give them self-optimization capabilities. Current networks with high levels of automation and digitalization are expected to soon incorporate new intelligent functions that will make them more autonomous. Telecom large models can accelerate this process to develop L4 autonomous driving networks (ADNs) that are intent-driven and support human-computer interaction and self-optimization. These models are already allowing engineers to manage twice as many equipment sets as they could before.

Wang stressed that ultra-broadband is critical infrastructure that will turbocharge digital economic growth. He called on different ecosystem players to work together to provide policy support and accelerate business innovation, product application, and ecosystem development. By working together, Wang concluded, the ultra-broadband industry will continue to race forward, maximizing digital productivity so that more people and organizations will benefit from digital services.

Press Release

Neos Networks, one of the UK’s leading connectivity providers, today announced that it has added two new key UK data centres to its UK-wide fibre network, as it fast approaches reaching 100 on-net data centres. This proactive investment in the expansion of its data centre estate sees Neos connect two highly significant sites in London and Manchester, enabling more businesses to take advantage of its high capacity infrastructure.

The first site connected and now live is the Equinix MA5 data centre in Manchester which makes Neos one of the first to offer services out of that location. The second site, Telehouse South (THS), located in London Docklands and now the largest facility offered by Telehouse will come on-net in the coming months. Both data centres will be diversely connected with fibre and 100Gbps enabled, providing UK businesses with secure, reliable, high capacity connectivity services that meet their business needs.

Equinix MA5 opened in the spring of last year and occupies a key strategic location in Greater Manchester that acts as the gateway to the North. It joins 11 other Equinix data centres that Neos has on-net across its UK estate, as well as nine other sites across Manchester. MA5 boasts the highest level of security offering in the world, and it will be highly influential in the continued development of Manchester’s fast-growing technology scene. The attractive new interconnection hub also offers remote geo-redundancy for the UK’s capital.

THS is also expected to see huge demand for connectivity due to its location and support for one of the most critical interconnection points in the UK. It is in close proximity with Telehouse North and Telehouse North Two, where Neos experiences some of its highest demand for connectivity services.

“We continue to invest in our data centre offering, expanding the reach of our network to bring critical, core connectivity to more UK businesses. And these two new locations will be highly significant in complementing the growth of the UK’s two biggest cities,” said Matt Rees, Chief Technology Officer, Neos Networks.

“We see huge demand for high capacity services from the Telehouse sites that we’ve brought on-net to date, providing reliable, resilient and secure connectivity to help power the UK’s financial services industry in London’s Canary Wharf. And with Manchester at the heart of the UK’s digital tech scene, ensuring the availability of scalable, reliable connectivity is essential for digital services innovation and establishing the UK’s technology leadership. We know just how important the right connectivity solutions are to fostering environments where UK businesses can thrive.”

Services at these new locations will be available via the company’s LIVEQUOTE portal which provides prospective and existing customers with a quoting, ordering and price comparison service matching its own network against leading third-party offerings. Neos also provides its services to businesses directly or through its network of resellers and partners.

How is the UK’s connectivity landscape evolving in 2023? Join the industry in discussion at Connected North 2024

Also in the news:
Reflections on the Connected Britain Awards 2023
Ericsson to sue Lenovo in ongoing 5G patent battle
KKR makes a binding offer on TIM’s fixed network