Cellnex considers selling minority stake in Nordic operations


News

According to reports, the sale process could begin later this year 

Spanish tower infrastructure giant Cellnex is considering the sale of the minority stake in its Nordic operations (Sweden and Denmark), anonymous sources told Reuters earlier this week. 

According to the report, the firm is working with Spanish financial advisors AZ Capital to gauge potential interest in the operations, with the unit valued potentially valued at almost €1 billion. 

At the end of the first quarter of this year, Cellnex operated 1,576 sites in Denmark and 2,906 in Sweden. The exact value of these sites, however, is difficult to calculate; in its financial reporting, Cellnex does not separate the financial details of its Swedish and Danish businesses, which are instead simply part if its ‘rest of Europe’ unit, including Netherlands, the UK, Switzerland, Ireland, Portugal, Austria, Denmark, Sweden, and Poland. 

This ‘rest of Europe’ unit recorded EBITDA of €264 million in the first quarter of this financial year. 

The rumours of a stake sale for the Nordic unit should not come as a great surprise, with Cellnex CEO Marco Patuano saying back in March that the company was “open to consider (selling) minority stakes, maybe even (to) local investors… which might be interested in order to invest in certain areas of Europe”.  

After the announcement today , shares were up 4.7% this morning at €38.49.

After years of growth fuelled by various mergers and acquisitions — such as the takeover of CK Hutchinson’s European towers — Cellnex’s strategy has now shifted to focus on cutting debt, which stood at €17billion at the end of this year’s first quarter. 

The firm operates around of 135,000 sites across Europe. Earlier this year, Cellnex acquired the final 30% of OnTower from Iliad for €510 million, taking Poland’s site total to around 15,000.

In related news, this week saw Cellnex acquire a €315 million loan from the European Investment Bank, funds they say will allow them to deploy additional sites and upgrade existing infrastructure in Spain, Portugal, France, Italy, and Poland. 

How is the tower infrastructure market changing in 2023? Join the experts in discussion at this year’s Total Telecom Congress live in Amsterdam 

 
Also in the news:
Cellnex names Anne Bouverot as Non-Executive Chairperson
Ericsson may be caught in the middle as Swedish–Iraqi relations sour
Nokia and Tele2 team up for private 5G in Sweden 

Starlink launches in Malawi

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Ethio Telecom shares upbeat forecast ahead of partial privatisation

In a very upbeat projection of its prospects for the near future, state-run operator Ethio Telecom has forecast a 19% rise in revenue over the June 2023-July 2024 financial year. It has also forecast a 29% rise in the number of customers on its network using its mobile money services.

Reuters notes that the company has estimated full-year revenue of 90.5 billion birr (about US$1.65 billion) and has said it aimed to increase its total subscriber numbers by 8% to 78 million; most of them (nearly 75 million) would be mobile phone customers. Users of its mobile financial service, Telebirr, are expected to rise 29% to 44.1 million, it said.

The company, which says it has been providing telecom services in the country for the last 129 years, is aiming for a total mobile service capacity of 92 million by end of the fiscal year.

That’s quite a target given the country’s population of a little over 120 million and strong competition from recent arrival Safaricom Ethiopia. There’s also the question of how a proposed third operator could affect the competitive landscape.

Nevertheless, these projections do appear to be part of an upward trend. As we reported last week, Ethio Telecom revealed a 2022-23 profit more than doubling (to around US$344 million) along with rising subscriber numbers.

These figures, along with the company’s latest projections, should make the prospect of partial privatisation in the form of a 45% stake sale in Ethio Telecom even more attractive to would-be bidders. Indeed, we have reported that a number of big names are said to be considering bids for the 45% stake.

MORE ARTICLES YOU MAY BE INTERESTED IN…

Airtel Uganda set to deploy 5G equipment next week

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ZTE’s Bai Keke: Taking the lead in 5G MBB & FWA

ZTE has long been a pioneering force in the wireless data terminal space, from its 2012 launch of the world’s first CAT3 portable WiFi product to its 2022 release of the FWA MC888 series, which was the first in the world to support 3GPP R16. We spoke to Bai Keke, the vendor’s Vice President and General Manager of Mobile Internet, to discuss its innovations in this space.

What are the key advantages offered by ZTE’s MBB & FWA products?

ZTE’s MBB & FWA products hold a leading position in the industry. ZTE integrates the whole chain from systems to terminals, which is a major overall advantage, but we have also invested long-term in R&D to ensure ZTE offers a continued technical edge over its competitors. Our ability to offer large-scale delivery reduces the cost for clients, and our customized deliver offering has proven attractive, with 108 global core partners using ZTE’s products, giving us the world’s largest market share for 5G MBB & FWA products in 2022, according to a report by international consultancy firm TSR. We predict that this year ZTE’s market share will maintain this rapid growth, with shipments expected to increase 50% year-on-year.

Could you explain more about ZTE’s GIS (Green, Intelligence & Security) strategy?

While we have a strong lead in 5G MBB & FWA, it was important to develop new ideas for the digital future. With the industry trending towards mobile ecosystem development, ZTE proposed the concept of Green, Intelligence & Security (GIS) with the future of 5G devices in mind. By promoting green design, green perception, and green service, ZTE has reduced its energy consumption by a further 10% overall.

We offer more intelligent access, intelligent scenario control according to diversified user requirements, and multiple intelligent modes to regulate the access rate and device response status. Moreover, ZTE will make data transmission more secure and reliable; we have launched two security scenarios focused on households and children. Combined with a comprehensive security system and five globally distributed network security laboratories, ZTE has built the capability to guarantee the security of worldwide networks.

The 5G FWA product MC888 PRO GIS version launched this year. Incorporating ideas from the GIS concept, the model reduced comprehensive energy consumption by 10% comparing with the previous MC888 PRO model with its Green Life Mode and Night Mode. Made from 95% PCR recycled materials, the product is friendlier to the environment, and will be continually deployed worldwide this year.

How are ZTE’s products innovating in the post-5G era?

5G spectrum was a key item on the agenda at the recent MWC Shanghai 2023. The 700MHz band is set to play an irreplaceable role in popularizing 5G in the future, and ZTE acknowledges this with 5G MBB & FWA products designed specifically for this low-band 5G spectrum. Our 4MIMO lets our products double the network rate under limited bandwidth resources, offering carriers the cost advantage of 700MHz band coverage while affording consumers better internet speeds.

ZTE’s innovative 5G MBB & FWA products will also help to empower economic and social development. We offer three types of mobile data terminal products and solutions for global users: consumer wireless data terminals for individuals and families, customized wireless data terminals for industries, and vehicle-class wireless data terminals for V2X.

For consumers, ZTE provides full-scenario home and personal data terminal products, allowing consumers to experience faster rates, lower latency, and faster deployment of wireless data communication services. As a supplement to wired broadband, it helps popularize 4G / 5G networks.

From the perspective of the global wired access market, only 1/3 of households can access fixed-line broadband, and only 25% of households enjoy a network rate over 100 Mbps. For objective reasons like construction cost or route planning, wireless data terminals are needed for signal coverage – especially in some scarcely populated areas, where large bandwidth and higher rates have given 5G MBB & FWA products a broader space to develop. According to TSR, 5G FWA will grow at an annual rate of about 50% in the next 3 to 5 years.

In addition to helping to popularize network connectivity, wireless data terminals also play an important role in promoting the development of new formats of digital economy. Due to the flexibility and convenience of its deployment, 5G MBB & FWA products can provide more efficient network support for new digital economy practitioners such as outdoor livestreamers, tourism content creators, online car-hailing drivers, and food deliverers.

How will ZTE continue to innovate in the field of 5G MBB & FWA going forward?

Following the trend of Metaverse and extended reality (XR) in the future, ZTE will continue to promote the technological innovation of 5G MBB & FWA products, improving product performance to provide powerful underlying communication network support. At present, in the field of industrial intelligent manufacturing, trials have been carried out through VR equipment, high-speed connection and intelligent methods.

In the V2X field, ZTE is also delivering innovative integrated vehicle-road collaborative roadside computing products. Traditionally, RSUs used for roadside equipment communication enabled communication and data interaction between roads, vehicles, and the cloud, while roadside edge computing responsible for perception computing and fusion was used to provide real-time traffic situations. These are essentially two independent appliances that share an important role in intelligent transportation systems.

With the deepening of vehicle-road collaborative applications, roadside edge computing is no longer limited to providing road perception information to vehicles, but also provides decision-making and control services for driving. Computation is required in communication, and vice versa.

On the basis of the original 5G RSU, ZTE has integrated the RSU and roadside edge computing devices, redefining the connotation of RSU by the combination of communication and computing of C-V2X. The device supports full band Uu and PC5 communication, can access up to 16 channels of video + 8 channels of millimeter-wave radar + 2 channels of laser radar through the strong AI computing power up 100Tops. This product is based on the in-house integrated intelligent network computing operating system architecture, which can empower various intelligent transportation applications in multiple dimensions including computing power, algorithms, data, and scenarios.

In addition to this integrated vehicle-road collaborative roadside computing product, ZTE’s mobile data terminal is also deployed in two aspects, the road end and the vehicle end in V2X. In terms of the road end, ZTE has conducted many tests in China. From the perspective of the vehicle end, ZTE is committed to being a provider of basic capabilities for digital vehicles. With the accumulation of chipset and operating system technologies in the ICT field as its core advantages, ZTE combines software, hardware and supply chain capabilities and basic advantages of digital transformation to provide 4G and 5G data transmission, smart modules, T-Box and other equipment and solutions to help automobiles become smarter.

In terms of industry, ZTE sees enterprises as the main force for the 5G digital economy development. To empower users, ZTE will focus on the five major industry fields of electricity & energy, intelligent transportation, medical care, enterprise affairs, and the Internet. Under the concept of « digital everything », ZTE will build on our years of experience and technical accumulation in communication to contribute to the development of the digital age.

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BT launches pilots to convert street cabinets to EV charging points


News

Various pilots will be conducted by BT Group’s start-up incubator Etc., exploring whether the transition is feasible from a technical and operational standpoint

This week, BT’s start-up and Digital incubation team Etc. has announced that it will oversee a number of pilot programmes to transform decommissioned broadband cabinets into charging points for electric vehicles (EVs).

These cabinets, dotted all over streets of the UK, currently provide copper-based broadband and phone services to local consumers. However, as the UK’s networks rapidly shift to full fibre architecture, these cabinets are becoming obsolete, prompting BT Group to consider repurposing the.

According to BT, the scope of the pilot projects will include a range of technical, operational, and commercial analysis, from upgrade viability based on location to potential joint venture business models to commercialise the would-be EV network.

The first of these pilot projects will reportedly take place in Northern Ireland later this autumn, with more locations added across the UK before the end of the year. The various tests are expected to continue for two years before commercialisation can be considered.

If successful, these conversions could end up as a significant proportion of the UK’s national EV infrastructure. The entire country currently has around 45,000 charging points operational, but the government has plans to invest £1.6 billion to increase this figure to 300,000 by 2030.

“With the ban on sales of internal combustion engine vehicles coming in 2030, and with only around 45,000 public charge points today, the UK needs a massive upgrade to meet the needs of the EV revolution,” says Tom Guy, Managing Director of Etc. “We have a once in a lifetime opportunity to connect for good in a whole new way by innovating around our cabinet infrastructure. The pilots are critical for the team to work through the assessment and establish effective technical, commercial and operational routes to market over the next two years.”

Ultimately, not every cabinet BT owns is likely to be converted, since not all of them will prove cost-effective or be in practical locations. Nonetheless, initial estimates suggest around two-thirds of BT Group’s 90,000 cabinets could be suitable for the upgrade.

BT Group is not alone in considering repurposing this soon-to-be legacy infrastructure for EV purposes. Virgin Media O2, for example, has been working alongside Liberty Global’s joint venture Liberty Charge since 2021 to deploy a small number of charging points leveraging their own cabinet and duct infrastructure.

How far is the future of electric vehicles entwined with the world of telecoms?  Join the ecosystem in discussion at this year’s live Connected Britain conference 

Also in the news: 
Vodafone UK launches second social tariff offering higher speeds
Enhancing and expanding connectivity with EXA Infrastructure
Why the industry must accelerate the adoption of 5.5G 

MobiFone cuts energy usage by 14% with Nokia

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Comcast talks building a self-healing network at Connected America


Interview

We caught up with Elad Nafshi, EVP and chief network officer at Comcast, to discuss the company’s new 10G network upgrade and the added reliability this brings to customers

Over the past two years, Comcast has made significant advances in 10G network capabilities, building on the latest DOCSIS 4.0 technology. By the end of 2022, in a world-first, the operator was trialling 10G and Full Duplex DOCSIS 4.0 network technology in a live network, paving the way a commercial rollout of multi-gigabit connectivity over its cable network.

Just a few short months later, in early 2023, the company’s enormous network upgrade had already begun, with around ten million homes targeted to receive the upgrade and become part of Comcast’s Xfinity 10G Network.

At this year’s Connected America conference in Dallas, Texas, we caught up with Comcast’s chief network officer Elad Nafshi to learn more about the impact the company’s Xfinity 10G Network could have for customers.

“Xfinity 10G network is about multi-gigabit symmetrical services with unrivalled reliability, both powered and empowered by real-time telemetry, that offers the lowest latency to all of our subscribers,” explained Nafshi. “Not just the customers on the right side or the left side of the street, but across our entire network. It’s truly transformational and its very, very exciting.”

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You can view our full interview with Elad Nafshi from the link above.

Higher speeds are to be expected from a next-generation network upgrade, but perhaps more interesting here is the network’s improved reliability thanks to the incorporation of emergent technologies.

“For the first time, we’re able to see a down-to-the-second view of what customer experience is,” explained Nafshi. “Taking that data, we can start to self-heal. We can start to run AI and machine learning algorithms on top of the network to pinpoint network failures and event to predict them before they ever happen, allowing us to self-heal a lot of these failures before they impact customers.”

The Xfinity 10G Network has already passed ten million homes, with vast majority of Comcast’s network set to be upgraded by 2025.

How is the US broadband market changing in 2023? Join the operators in discussion at the Connected America conference live in Dallas, Texas

Also in the news:
Vodafone warns of investment cuts if Three merger is blocked
Vodafone and Three UK closing in on merger
Dish and EchoStar consider merger