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The move comes as a measure to prevent foreign powers from having too much power and influence over British businesses 

Vodafone and the UK government have reached an agreement to implement “proportionate measures” after the government raised concerns over UAE-based e&’s growing stake in the UK operator. 

The government last week said that e&’s significant stake in the business poses a national security risk and ordered Vodafone to take mitigating action, the details of which have now been agreed. 

e&, previously known as Etisalat, is 60% owned by the Emirati government and has built up its stake in Vodafone in recent years, reaching 14.6% in April 2023.  

The increased stake made it Vodafone’s largest shareholder and gave e&’s CEO, Hatem Dowidar, a seat on Vodafone’s board.  

The decision immediately faced scrutiny from the UK government, with the cabinet office warning that the decision would enable e& to “materially influence policy at Vodafone”. 

Given the fact that Vodafone plays a strategic role in the UK telecommunications sector, the government mandated that a “national security committee” is to be set up at Vodafone, which will monitor any sensitive work that could have an impact on the UK’s national security. The government said that the measure is “necessary and proportionate” to “mitigate the risk to national security”.  

The UK government also ordered that it be notified if the relationship between the two companies changes.  

These new governmental interventions have been made under the recently triggered section 26 of the National Security and Investments Act, put in place to address any countrywide security concerns. 

“Where investment might impact the UK’s national security – for example through the acquisition of certain technologies or infrastructure – we will work with investment partners to minimise any risk,” said Oliver Dowden, Deputy Prime Minister in a statement made last week. 

“As part of our Critical National Infrastructure, telecoms is one such sector. Vodafone is also a particularly important company for the UK Government given its critical functions, including as a key partner in HMG’s Cyber Security Strategy,” he continued. 

Since that statement, the Cabinet Office confirmed this week that “proportionate measures to address any potential national security concerns” have been agreed by Vodafone, though further details as to what these measures are have not been announced. 

“We are pleased to have received clearance in our home market for our strategic relationship agreement with e& and for e& to take a seat on our board,” said Vodafone in a short statement. 

Keep up to date with the latest news of the merger by subscribing to the Total Telecom newsletter 

Also in the news:
South Korean president backs semiconductor mega cluster investment
Malaysia to launch second 5G network alongside DNB
BT signs connectivity deal with Iraqi gas firm 

These days plenty talk about building fiber infrastructure, but few have taken on the task of rebuilding      the infrastructure of one of the biggest markets in the world from the ground up.  But that’s what DF&I has been doing when it comes to northern Virginia, and that’s what they hope to replicate elsewhere even as they continue to add new routes.  With us today to explore their vision of the dark fiber and conduit business and where DF&I might go from here are the co-founders and veteran fiber builders John Schmitt and Judd Carothers. … [visit site to read more]

News 

Nokia’s 2023 financial results reflect the gloom of the current market, similar to Ericsson and AT&T’s results which have also been published this week 

This week, Nokia have released their financial results for Q4 and the full 2023 financial year. Net sales decreased 21% year-on-year in Q4, which the company put down to continuing macroeconomic uncertainty impacting operator spending.  Net sales for the year declined 8% year-on-year. 

“In 2023 we saw a meaningful shift in customer behaviour impacting our industry driven by the macro-economic environment and high interest rates along with customer inventory digestion,” said Pekka Lundmark, Nokia’s President and CEO in a statement. 

Despite Nokia’s success in the current climate, Lundmark warned that the same “challenging environment” of 2023 will continue into this year Nokia’s biggest revenue division, mobile networks, saw a 17% year-on-year decrease in sales to €2.5 billion in Q4, with Lundmark suggesting that 2024 will see operators remain cautious in terms of network investment. 

In Q4 cash flow performance was positive, generating €1.7 billion of free cash flow, and ending the quarter with net cash flow of €4.3 billion. 

Looking ahead at the next year, Nokia expects to see a comparable operating profit of between €2.3 billion to 2.9 billion 

Upon the news, Nokia shares had risen by 8.5%. 

These results come just a month after Nokia was struck a major blow when US operator AT&T signed a $14 billion 5G deal with Ericsson, significantly reducing Nokia’s presence in the US giant’s network. The deal negatively impacted Nokia share price, seeing it drop down 25% compared to the same time last year.  

Lundmark called the deal a “disappointing development” for Nokia, but added he believes Nokia has the right strategy to achieve a double-digit operating margin longer-term. 

Other key market players such as Ericsson and AT&T have also released their financial results this week, which also reflect the conservative nature of the market, with operators expected to heavily cut back on their purchases of 5G equipment. This has led to extensive cost-saving measures throughout the industry, with both operators and vendors implementing job cuts. 

 Back in February last year Ericsson announced it would cut 8,500 jobs. 

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Also in the news:
South Korean president backs semiconductor mega cluster investment
Malaysia to launch second 5G network alongside DNB
BT signs connectivity deal with Iraqi gas firm

News 

The formal investigation will examine the impact that the deal will have on market competition and what this could mean for customers 

The UK Competition and Markets Authority (CMA) has begun the first phase of its investigation into the proposed merger of mobile network operators Three UK and Vodafone UK. 

Prior to the investigation’s launch, the CMA collected pre-notification evidence and information from both companies, as well as early views from stakeholders. 

The investigation will last 40 days, aiming to identify whether the merger would cause ‘substantial lessening of competition’ and, if this is the case, where a more detailed investigation will be needed. After the 40 days, the CMA will publish its findings and next necessary steps. 

“This deal would bring together two of the major players in the UK telecommunications market, which is critical to millions of everyday customers, businesses and the wider economy,” said Sarah Cardell, Chief Executive of the CMA in a government statement. 

“The CMA will assess how this tie-up between rival networks could impact competition,” she continued.  

The high level of CMA intervention is necessary because, if the deal is given the greenlight, it will reduce the number of MNOs in the UK from four to three, with the newly merged company having a market share of 32.1%. 

The merger was agreed last year, with Vodafone taking a 52% in the new business and Three UK taking the remaining minority stake. Vodafone UK’s CEO Ahmed Essam will lead the business, and Three UK’s Chief Financial Officer (CFO) Darren Purkis will assume his same role at the new enterprise. 

The two companies emphasise that the merger will be beneficial to the UK telecoms market, giving them the freedom to jointly invest £11 billion in services and next generation wireless infrastructure.  

“Thanks to this transaction, 95% of the population and every school and hospital will be covered by standalone 5G by the end of the decade,” said Robert Finnegan, CEO of Three UK. 

The CMA is now inviting views by 9 February 2024 on how the merger could affect competition. 

Keep up to date with the latest news of the merger by subscribing to the Total Telecom newsletter 

Also in the news:
South Korean president backs semiconductor mega cluster investment
Malaysia to launch second 5G network alongside DNB
BT signs connectivity deal with Iraqi gas firm

News

The plans are the first of its kind in the UAE, according to the company 

Etisalat by e& has announced the launch of two new fibre-to-the-home (FTTH) plans of 5Gbps and 10Gbps to enhance the connectivity experience that the company can bring to customers. 

The 5Gbps plan is priced at AED 1799 ($489.80) per month and the 10Gbps plan is priced at AED 2,699 ($734.83) per month. 

“With the launch of ground-breaking 5Gbps and 10Gbps speeds, we’re pushing the boundaries of what’s possible,” said Khaled El Khouly Chief Consumer Officer, Etisalat by e& in a press release. 

“This latest innovation reflects our commitment to cutting-edge connectivity, using a brand new XGS fibre network, we believe it will set new benchmarks in the industry,” he continued.  

According to the company, they are the first to introduce speeds higher than 1Gbps in the UAE. 

The UAE is fast becoming a global hotbed for telco innovation. Just this week, Etisalat by e& partnered with Nokia to complete the first trial of cloud RAN in the region, with the aim of enhancing the 5G experience in the mid-band carrier spectrum. The company said that the success of the trial demonstrates how combining cloud computing with the flexibility of radio access networks can enhance the 5G network. 

“It’s the first in the region and paves the way for enhanced connectivity and service delivery, ultimately providing end-users with a more robust and responsive 5G experience,” said Marwan Bin Shakar, Senior Vice President of Access Network Development at etisalat by e& in the announcement’s press release. 

Keep up with all the latest telecoms news from around the world with Total Telecom’s daily newsletter 

Also in the news:
South Korean president backs semiconductor mega cluster investment
Malaysia to launch second 5G network alongside DNB
BT signs connectivity deal with Iraqi gas firm

This Industry Viewpoint was authored by J. Drew Mullin, Partner, ATLANTIC-ACM        

Despite a 2023 slow-down in the expectation of fiber route mile builds, fiber deployment remains extremely active driven by upgrades, opportunity, and infinite demand for capacity. National carriers continue the shift from legacy copper services to more scalable fiber infrastructure. Regional and emerging fiber-focused players strategically seize niche opportunities including new long-haul routes and densification of existing metro markets. Providers maintain a more disciplined approach to deployment, recognizing it as a strategic land-grab … [visit site to read more]

Malaysia’s Ministry of Investment, Trade and Industry (MITI) said on Thursday it has formed a strategic partnership with the Ministry of Investment of the United Arab Emirates (UAE) to to develop data centres in Malaysia.

Under an MoU signed yesterday, the two ministries will collaborate on digital infrastructure to boost Malaysia’s status as a regional data centre hub, with potential projects providing a total capacity of 500 megawatts, according to the Bernama news agency.

MITI said that Malaysia has already emerged as a preferred destination for data centres in Southeast Asia, and that growing demand from regional SMEs will boost its status as a major regional player in the digital economy, the report said.

Bernama quoted Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz as saying the collaboration with the UAE “will certainly help strengthen our position as a preferred destination for digital investments.”

Zafrul added that Malaysia is well positioned to capture a big chunk of the digital economy in ASEAN, which is forecast to reach US$1 trillion by 2030.

The MoU also comes with an AI angle – MITI says the MoU aligns with the Malaysian government’s New Industrial Master Plan (NIMP) 2030, revealed in September last year. Among other things, NIMP aims to boost AI development among industries, SMEs and start-ups, which will require plenty of extra data centre capacity.

As for the UAE, the main benefit of the MoU is enhancing bilateral ties between the two countries, particularly in terms of trade and investment. According to Bernama, the UAE is Malaysia’s second-largest trading partner in the Middle East, while Malaysia plays a key role in the UAE’s exports and re-exports in ASEAN.

Bangladesh Infrastructure service provider Summit Communications has signed a deal with Juniper Networks to upgrade its core optical network to 400G in anticipation of a surge in traffic demand once 5G is commercially launched in the country.

Under the deal announced by Juniper on Wednesday, Summit will deploy Juniper’s PTX10000 Series packet transport routers equipped with 400G coherent optics. Juniper said the routers enable Summit to make a seamless transition to a converged optical routing architecture that delivers high-speed data transmission over long distances to its PoPs in Bangladesh while maintaining high reliability.

Summit Communications chief network architect Md. Farrukh Imtiaz said the 400G solution will “establish a more robust foundation, delivering the performance, scalability and operational efficiencies essential to our network.”

Summit Communications MD and CEO Arif Al Islam said that the company has made “tremendous progress” in rolling out networking infrastructure services to mobile operators and ISPs in Bangladesh, but that it needs to adopt innovative new networking solutions to keep up with current and future demand for mobile, internet and digital services, especially with 5G coming down the pipeline.

“[Juniper’s] solutions will continue to play an integral role in our network, ensuring that we provide cutting-edge 5G connectivity and services for our customers guaranteeing fast, reliable, ultra-low latency services along with adaptation of network slicing and segment routing,” he said in a statement.

State-owned telco TeleTalk has been trialing 5G since 2021, while Grameenphone and Robi Axiata have launched their own trials since then. In 2022, Grameenphone, Robi Axiata, Banglalink and Teletalk paid a combined US$1.2 billion for 5G spectrum in an government auction. However, none have commercially launched 5G thus far, opting instead to focus on expanding their 4G networks first.