This Industry Viewpoint was authored by Suzy Menneret, Wholesale Advisor and Program Lead at the Mobile Ecosystem Forum (MEF)
One thing that has been a constant in the existence of a Mobile Network Operator over time is the ownership of two core elements: the network and the customer relationship.
This has been historically true in the consumer segment as a large proportion … [visit site to read more]
The Advertising Standards Authority (ASA) is set to begin actioning new, stricter guidance on mid-contract price rises for telcos, following a six-month grace period that began in June.
The new rules apply more stringent standards on how operators must advertise information about future price rises.
The main premise of the new rules is for operators “not give the impression that prices are fixed if they are not”.
Operators must ensure that such information is prominently displayed and clear for the consumer. Currently, operators typically advertise contracts simply as ‘£30 per month for 18 months’, with little mention as to whether this price can be increased before this minimum term.
Statements clarifying this situation are often included in the small print, with the ASA noting that some of these statements are likely to “contradict rather than clarify” the matter at hand.
Additionally, the ASA notes that broadband and mobile contracts offered to consumers that have implied price rises must be made clear, with indications of the specific change in price. Broadband and mobile providers typically raise their prices each year by up to 4%, plus an inflation-based metric such as CPI (Consumer Price Index) or RPI (Retail Price Index). CPI and RPI are often misunderstood by customers, with the clarification statements again misleadingly placed in the small print of contracts.
As consumers are often unaware of the price rises, they are then hit with a second financial penalty if they attempt to leave the contract early.
In February, Ofcom launched an investigation into the clarity of mid-contract price rises, finding over a third of customers were unclear on the stance of their provider. Ofcom is the co-regulatory partner for broadcast advertisements and regulates communications in the UK. Ofcom acts as the legal partner for such advertisements – if there is a failing of a company to stick to ASA guidance, they are referred to Ofcom to take legal action.
The new guidance can be downloaded in full here.
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More news from around the world to catch up with: … [visit site to read more]
Telecom Italia (TIM) has announced the implementation of its long-awaited NetCo, the business unit for its fixed line network, which was sold to KKR for €28.8 billion earlier this month.
According to a statement from TIM, the newly created division comprises over 20,000 staff members, 19,000 of which currently work in TIM’s Wholesale and Network departments and 900 from TIM’s staff functions.
NetCo will include all of TIM’s fixed line assets, including FiberCop, the company’s ‘last mile’ network in which KKR already holds a 37.5% stake.
TIM’s submarine cable unit, Sparkle, is not included in the deal and is subject to separate discussions between TIM and KKR.
As a result of the reorganisation, TIM will, as of December, employ around 17,500 people, including some 16,300 full time equivalents. The sale of NetCo will allow TIM to reduce its existing debt pile, which currently stands at €26 billion, by €14 billion.
Vivendi, TIM’s largest shareholder has emphasised its disappointment at the sale’s approval, adding that it is going to “use all legal means at its disposal” to refute the decision. The company argues that TIM’s assets are being undervalued, suggesting they are worth €30 billion, and are therefore being undervalued . Despite this, the deal is backed by the Italian government who took a 20% share in NetCo this year for €2.2 billion, seeing TIM’s network as critical national infrastructure.
The sale of NetCo to KKR is expected to close next summer.
Keep up to date with the latest international telecoms news by subscribing to the Total Telecom daily newsletter! Subscribe here.
Also in the news:
Broadcom finalises VMware acquisition deal
From Gigabit goals to Sustainability: Navigating the Optical Fibre frontier in Europe and beyond
Broadcom finalises VMware acquisition deal
Pan-African operator MTN and technology giant NEC Corporation say they have launched Africa’s first 400G optical transponder.
Called Phoenix, this initiative, according to MTN and NEC, marks a significant milestone for the telecommunications industry in Africa, with the potential to revolutionise the way optical networks are built and operated, thereby transforming internet delivery across the continent.
Phoenix is part of the Telecom Infra Project’s (TIP) Open Optical and Packet Transport (OOPT) project group, a collaborative effort involving multiple telecom operators and technology providers. The solution has met TIP’s rigorous test requirements, earning it a Controlled Environment Silver Badge, indicative of its readiness for deployment.
TIP describes itself as a global community of companies and organisations working together to accelerate the development and deployment of open, disaggregated, and standards-based technology solutions that deliver the high-quality connectivity that the world needs.
The deployment of Phoenix is designed to accelerate internet connectivity and optimise network operations, thereby democratising access to information. More importantly perhaps, it aims to make affordable internet more widely available across Africa.
MTN has embraced this technology, integrating it into its production network, specifically across its optical network between Johannesburg and Centurion in South Africa.
Phoenix is a network device, known as a white box L0/L1 transponder, that can transmit data at speeds of up to 400 gigabits per second. Its disaggregated nature allows it to be programmed to run any vendor’s software, offering operators flexibility in hardware and software selection.
This disaggregation, we are told, leads to cost reductions, accelerates innovation, and enables quicker and easier deployment of new network services.
While readers in the US get started again after the Thanksgiving weekend, the rest of the world has remained busy. Here are our interesting bits of data center news from four continents: … [visit site to read more]
In the optical fibre industry, trends are like threads weaving across Europe and worldwide. Vendors and suppliers face challenges but also big opportunities in this ever-evolving landscape. The push for innovation often goes hand in hand with tough competition, creating an environment ripe for growth.
In Europe, vendors and suppliers deal with specific challenges, but overcoming them opens doors to new tech breakthroughs and market dominance. Shifting focus to the UK, we examine the status of gigabit broadband. What obstacles hinder seamless connectivity, and where does the UK stand in this fast-paced race?
Our journey goes beyond tech – sustainability is a key theme. As connectivity rises, so does the importance of eco-friendly practices in the industry. By embracing sustainable practices, we can pave the way for a greener and more environmentally responsible connectivity future.
STL is a leading global optical and digital solutions company providing advanced offerings to build 5G, Rural, FTTx, Enterprise and Data Centre networks. The company, driven by its purpose of ‘Transforming Billions of Lives by Connecting the World’, designs and manufactures in 4 continents with customers in more than 100 countries. With a focus on developing eco-friendly products while driving community transformation, STL is championing sustainability and has committed to becoming Net Zero by 2030.
Dive into the connected stories of trends, challenges, and opportunities shaping our digital future. The full picture is waiting, offering a clearer understanding of this crucial industry.
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Telekom Malaysia reported profits doubling due to lower costs and taxes, despite revenues taking a dip due to market challenges.
Profit for the Malaysian operator surged 102.9% from MYR265.2 million to RM538.2 million (US$114 million) in Q3, primarily due to lower taxes and reduced net finance costs. Meanwhile, operating revenue declined 2.6% from MYR265.2 million to MYR538.2 million, and CAPEX stood at 15.1% which equates to MYR1.38 billion as the operator spent on network infrastructure expansion, but this was down from 15.9% in 2022.
The company noted strong performances from its broadband and TV brand Unifi and wholesale business arm TM Global, both having “pivotal” roles in growth this quarter. Unifi broadband subscriptions increased 4.6% to 3.12 million, while TM Global revenue grew 5% to MYR769.9 million on the back of strong data services demand.
TM CEO Amar Huzaimi said: “Our commitment to advancing quad-play convergence services, coupled with the introduction of attractive and competitive packages, enabled us to retain and expand our customer base, solidifying our portfolio as the true convergence champion.
“Our relentless pursuit of improving mobile coverage nationwide aligns with our dedication to inclusivity, bridging the digital divide, and fostering widespread digital adoption. By ensuring our services are accessible to all, we contribute to creating a more connected and inclusive society.
“Simultaneously, our aggressive expansion of data and network infrastructure is strategically positioned to meet the growing demands of our domestic market and attract more international players. This is a crucial step towards positioning Malaysia as a digital hub for the region, contributing significantly to the creation of a globally connected digital economy.”
Orange Group unified its suite of apps under one super app called Max It, with the aim to more than double the number of active app users on its network over the next two years, as part of part of wider plans to maintain growth in the Middle East and Africa.
Speaking to Developing Telecoms, Orange Middle East and Africa Deputy CEO Brelottte Ba noted that 22 million customers are actively using multiple Orange apps for a range of services, and the group expects this figure to more than double to 45 million in 2025 with Max It. Currently Orange serves 146 million customers in the Middle East and Africa.
“The vision is to bring the world to the fingertips of our customers. No matter what they want to do, they can do it in our application. This is, of course, a driver of growth and loyalty. We expect our customers to be spending more and being more loyal to our offers,” said Ba.
The app will first be deployed in five markets Cameroon, Senegal, Mali, Burkina Faso, and Botswana. It will then be launched in phases across Orange’s other 11 markets in the Middle East and Africa.
Max It will display together three core services in one interface: managing mobile and fixed lines, Orange Money payments and mobile money transfers, and an e-commerce platform offering digital content such as online games, music, TV, and news. It will also include a digital ticketing service for concerts and transport and extra services from local and international partners.
The executive added the launch of the super app was a natural progression for Orange as its markets in MEA mature and digitalise.
“When we look at the figures from the GSMA, smartphone penetration is at 52% and this is predicted to go up to 88% by the end of this decade. It means that the vast majority of consumers will be using smartphones in a continent that is mobile-first,” said Ba.
“The idea is really to leverage all services we provide and make sure that customers don’t have to download multiple apps. Especially given the fact that when we look at our footprint, customers don’t have high-end smartphones that allow them to download tons of apps.”
