A few interesting items worth catching up on: … [visit site to read more]

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VEON have announced the closing of the sale of its Russian operations to members of the senior management team of PJSC VimpelCom, led by VimpelCom CEO Alexander Torbakhov.

There is no buy-back arrangement and so this is a complete exit from the Russian market for VEON leaving the company to focus on its operations in Pakistan, Ukraine, Bangladesh, Kazakhstan, Uzbekistan and Kyrgyzstan.

VEON Group CEO Kaan Terzioglu commented “I am pleased to note that we are now in a much stronger position to deliver our strategic priorities. We would like to thank all our stakeholders and regulatory bodies, including U.S. Treasury, who have supported our Company through this process.”

Amsterdam, headquartered VEON now provides connectivity and digital services to nearly 160 million customers representing around 7% of the world’s population.

VEON will be joining the lineup for Total Telecom Congress in Amsterdam this November, with Lasha Tabidze, Group Chief Digital Operations Officer and Ana de Kok Reyes, Group Diversity & Inclusion Officer speaking. To join them, register at totaltele.com/congress

Residential fiber is big right now, and yet it’s just getting started.  With all the money backing FTTH buildouts right now, it’s hard to remember how many places there are that you would think have plenty of options but don’t.  One such region is California’s Orange County, which is where Cityside Fiber has started rolling out deep fiber infrastructure.  With us today to talk about Cityside’s plans, progress, and vision is Founder and CEO Rod Hanson. … [visit site to read more]

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Telefonica Tech was unveiled during Telefonica’s 2019 restructuring 

Telefonica is considering the sale of a stake in its technology unit Telefonica Tech, which provides the management of cloud operations on Microsoft Azure and AWS, as well as offering cybersecurity services and IoT solutions. 

According to initial reports from Bloomberg, Telefonica have been approaching investment funds to gauge their interest in buying an undisclosed stake in the unit. 

The entire Telefonica Group is valued at around €22 billion, with net debt of €31.4 billion. According to sources, the Telefonica Tech could be valued at around €2 billion if the deal goes ahead. 

Although the talks are still ongoing, there is no guarantee that the company will give the divestment the green light, according to sources. 

Last month, Saudi Arabia’s largest telecoms operator STC group acquired a 9.9% stake in Telefonica worth €2.1 billion, which allowed them to become the company’s largest shareholder. There has been indication at this stage as to whether STC have approved the possible sale of the tech unit. 

Answers will presumably be presented by Telefonica CEO Jose Maria Alvarez-Pallete alongside a new three-year strategic plan set to be announced in November, with the company planning its first Capital Markets Day in over a decade.   

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Also in the news:
Ofcom refers public cloud market to CMA for investigation
UK joins Global Coalition on Telecommunications
TPG Telecom and Vocus need more time to iron out fibre deal

News

The Federal Communications Commission (FCC) said the defunct satellite “could pose orbital debris concerns”

This week, the FCC has issued DISH with a fine of $150,000 after the US television provider failed to de-orbit one of its retiring satellites correctly.

DISH launched its EchoStar-7 satellite back in 2002, leaving it sitting in geostationary orbit and using it to broadcast television services for over 20 years.

By 2012, DISH was already making plans for EchoStar-7’s retirement, agreeing with the FCC that it would propel the satellite an additional 300km away from the Earth, pushing it into what is known as a ‘graveyard orbit’. This is done to reduce space debris in the more congested operational orbits, thereby reducing the chance that the inoperable satellite would collide with operational spacecraft.

This process was expected to take place in 2022. However, when it came to performing the crucial manoeuvre, DISH reportedly discovered that EchoStar-7 did not have enough fuel to increase its orbit by the planned 300km, making it only 122km above its previous position.

This failure to dispose of their satellite as planned has led the FCC to issue its first ever fine for the creation of space debris.

“This marks a first in space debris enforcement by the Commission, which has stepped up its satellite policy efforts, including establishing the Space Bureau and implementing its Space Innovation Agenda.  The settlement includes an admission of liability from the company and an agreement to adhere to a compliance plan and pay a penalty of $150,000,” said the FCC’s statement.

“As satellite operations become more prevalent and the space economy accelerates, we must be certain that operators comply with their commitments,” added Enforcement Bureau Chief Loyaan A. Egal.  “This is a breakthrough settlement, making very clear the FCC has strong enforcement authority and capability to enforce its vitally important space debris rules.”

DISH accepted responsibility for the error.

As communication satellite constellations become increasingly common around the world, so too does the threat of orbital space debris. At its theoretical worst, the density of space pollution could lead to the Kessler syndrome, a scenario whereby collisions between orbital objects cause a cascade of further collisions, essentially making satellite activities impossible for many years.

As a result, the FCC has gradually been increasing regulation what happens to satellites after their decommissioning, such as proposing that satellites are deorbited no later than five years after their retirement, down from the 25 years previously required by NASA.

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Also in the news:
Hyperoptic celebrates 300,000 customer milestone
UK joins Global Coalition on Telecommunications
SKT and Luxembourg team up for quantum research 

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Talks between the two firms are set continue despite passing a recent deadline, with TPG noting the transaction involves “considerable complexity” 

Australia’s TPG Telecom has announced that the due diligence period given to Vocus Group to present a formal bid for a portion of it fibre assets has expired. 

In August, Vocus Group made a non-binding offer of AU$6.3 billion ($4.2 billion) to buy rival TPG Telecom’s enterprise, government, and wholesale assets, which included their wholesale broadband business, Vision Network. 

This unit made up 18% of TPG Telecoms’ total fiscal revenue last year, at AU$5.52 billion ($3.65 billion). 

The period of exclusivity had already been extended once to the 6th September by TPG, which has now expired for a second time.  

But despite not reaching a formal agreement, it seems that both firms are still keen to negotiate. 

“The consideration of AU$6.3 billion and the highly provisional indicative EBITDA perimeter of approximatelyAU $550 million are subject to change. TPG securityholders should be aware that the nature of the transaction involves considerable complexity which needs time to work through and there remains no certainty an agreed transaction will eventuate,” said TPG in a statement. 

If successful, the deal would create a combined entity with an enterprise valuation of between AU$8 billion and AU$9 billion ($5.06 billion and $5.69 billion) 

Last year, TPG Telecom was the last of Australia’s three largest telcos to sell off their mobile tower infrastructure. The firm sold its mobile towers and rooftop infrastructure to OMERS in a AU$950 million ($627 million) deal, with TPG using the funds to reduce a debt pile currently standing at $3.9 billion. 

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

Also in the news:
Ofcom refers public cloud market to CMA for investigation
UK joins Global Coalition on Telecommunications
SKT and Luxembourg team up for quantum research 

Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.