Data centers fuel US fibre demand and other top stories from across the pond

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Here’s a look at the five biggest stories over the last week from our sister publication, Broadband Communities
Data center construction, booming in cities like Phoenix, is fueling demand for dark fiber in major American markets. That, plus Broadband Communities sits down with Steve Smith, the CRO of a rural ISP, to discuss how rural ISPs can endure in a changing marketplace.

Data center construction fuels dark fiber demand in major markets
Booming data center construction continues to drive demand for dark fiber in major markets like Phoenix, Arizona.

PODCAST: ISP executive discusses how rural American ISPs can endure
The marketplace is changing fast. But is there still a role for the rural ISP in tomorrow’s digital infrastructure? We’re joined by Steve Smith, the CRO of LiveOak Fiber, to discuss. 

IQ Fiber completes acquisition of Maryland ISP
Backed by SDC Capital Partners, IQ Fiber called the news a significant accomplishment as the company continues its upward trajectory.

ISP awarded BEAD funds for Louisiana broadband work
A Louisiana-based internet service provider has awarded Broadband Equity Access and Deployment (BEAD) program funds to reach underserved locations. 

Vertical Bridge, Verizon finalize $3.3 billion tower deal
Vertical Bridge says a $3.3 billion deal involving thousands of towers across the United States has been finalized.
 

 

Nexfibre Sets Out Demands for Ofcom’s UK Telecoms Access Review

Network operator nexfibre, which is working alongside UK ISP partner Virgin Media to deploy a new 10Gbps full fibre broadband (FTTP) network across over 5 million premises (2m have already been built), has today set out its list of recommendations for Ofcom to consider adopting as part of their forthcoming Telecoms Access Review 2026 (TAR).

Just to recap. Back in 2022 Telefónica, Liberty Global and InfraVia Capital Partners setup nexfibre as a new £4.5bn joint venture (here), which aims to deploy an open access (wholesale) full fibre network to reach “up to” 7 million UK homes (starting with 5m by 2026) in areas NOT served by Virgin Media’s own network of 16m+ premises. The funding reflects £3.3bn of fully underwritten financing and up to £1.4bn in equity commitments.

NOTE: Virgin Media is currently the only ISP on nexfibre’s network via an “exclusive partnership” (here), but more ISPs will be added in the future (here) and Virgin’s own network will also open up to wholesale via NetCo in H1 2025 (here).

Suffice to say that they have a big interest in the regulator’s imminent Telecoms Access Review 2026 (TAR) – a wide-ranging market study, which is typically only conducted every 5-years and will usually look to make changes that “promote competition and investment” in gigabit broadband and business connectivity. But such things are always easier said than done, with vested interests frequently clashing.

So far, we’ve already seen various alternative network (altnet) providers (here) and even Openreach (here) setting out what changes they think Ofcom’s TAR should make. But today it was nexfibre’s turn, with the operator setting out a series of recommendations under their new ‘UK Fibre: A Fork In the Road‘ (PDF) report, which they see as being necessary to help “maintain a regulatory environment that best supports investment in fixed telecoms networks and sustainable infrastructure competition in the UK“.

The full fibre market is highly fragmented, characterised by a large number of sub-scale operators with low customer and revenue numbers, which combined with financing pressures has seen network roll out slow dramatically this year,” said the report, before setting out its list of the “regulatory conditions” needed for the “full fibre market to flourish and for infrastructure roll out to continue at pace“.

Nexfibre Calls on Ofcom to Address the Following Issues:

1. Maintain regulation on the dominant operator: the dominant operator’s significant market power requires continued regulation to support the development of sustainable, long-term competition.

2. Address anti-competitive behaviour: Introduce a new margin squeeze test (Economic Replicability Test) to prevent harmful pricing schemes and ensure fair competition.

3. Improve PIA regulation: Address transparency and cost-sharing issues in the regulation of BT Openreach’s PIA infrastructure charges to support investment.

4. Assess copper switch-off impact: Ensure appropriate regulation for BT Openreach’s copper to fibre network migration to promote competition.

5. Take a pragmatic view of network numbers and consolidation: Focus on supporting long term sustainable competition at a national scale through consolidation.

Many of nexfibre’s points above align with those of other altnets, particularly around fears related to the possibility of future FTTP price cuts from Openreach (i.e. making it even harder for rivals to grow and attract fresh investment) and of Ofcom potentially softening the incumbent’s regulation as rising competition has naturally weakened Openreach’s impact over the wider market. The latter also feeds into nexfibre’s call for improvements in PIA regulation, which relates to the product that allows rivals to run fibre via Openreach’s existing cable ducts and poles.

On copper switch off, nexfibre are not referencing the ongoing PSTN/WLR to digital phone migrations, but rather Openreach’s future move to close thousands of old telephone exchanges (mostly occurring after 2030) and migrating related customers from copper to full fibre lines (something that is already occurring, albeit more organically). Nexfibre wants to ensure that rivals aren’t unfairly penalised by this process and that Ofcom conducts a deeper assessment of the approach being taken.

However, despite echoing many of the same points of view as other altnets, nexfibre remains quick to highlight how “a large number of sub scale altnets … are now in a moment of real difficulty” (i.e. due to issues with rising build costs, high interest rates and thus difficulties being able to access fresh investment).

Certainly, we have seen plenty of altnets suffering build pauses, slowdowns and job losses, although there’s no guarantee that some of this won’t impact nexfibre further down the line too. The wholesale model they’ve adopted currently only works with Virgin Media (anchor tenant), which over the past year has had its own difficulties with adding new broadband customers, and it remains to be seen how effective they will be when more ISPs are added.

Giles Rowbotham, General Counsel and Chief Development Officer of nexfibre, said:

“The UK has made terrific progress in expanding full fibre broadband in recent years, thanks in part to the conditions created by the last Ofcom review, including PIA sharing. However, this progress is fragile. The current market structure is unsustainable and the Ofcom review comes at a pivotal moment for this country’s digital infrastructure market. Roll out progress in recent years has been driven partly by the emergence of a large number of sub scale altnets, many of whom are now in a moment of real difficulty, with restricted access to new capital and higher financing costs.

To overcome these issues, we are urging Ofcom to prioritise measures that boost sustainable scaled competition on the one hand and do more to restrain anti-competitive activity from the dominant operator on the other. To ensure innovation and investment in digital infrastructure and drive fibre rollout progress, the UK needs a regulatory environment that balances the need for stable regulation with a pragmatic view of market consolidation and also takes a firm hand in restricting behaviour that stymies meaningful nationwide competition. This is essential not only for the growth of our digital economy and the future of the broadband market, but also to the government’s central mission of delivering higher economic growth, which will create opportunities for communities, people and businesses across the UK.

We look forward to continuing to collaborate with regulators and policymakers ahead of the upcoming Telecoms Access Review to ensure a digital infrastructure market that is competitive, resilient and delivers the economic growth the country needs.”

Breaking news.. more to follow..

Four Broadband and Mobile Providers Named in Top 50 for UK Customer Satisfaction

The Institute of Customer Service (ICS) has today published their first biannual UK Customer Satisfaction Index for 2025 (January), which reveals that four mobile and broadband (telecoms) providers made it into their table of the country’s top 50 organisations – Tesco Mobile (16th), Utility Warehouse (28th), Sky Mobile (41st) and giffgaff (47th).

The research typically reflects the results from a large online survey of over 15,000 customers – balanced to be representative of the UK adult population, which asked each of them about their experiences across 278 different organisations (a total of 59,500 responses were gathered). This was then used to produce a score out of 100 for each organisation.

NOTE: UW’s mobile service is supplied via an MVNO deal with EE (BT), while Tesco Mobile, Sky Mobile and Giffgaff are all powered by the O2 (Virgin Media) network.

Overall, the “Telecommunications & Media” sector reported no change in its general ranking since the last report in July 2024, with average customer satisfaction holding at a score of 73.3 (although this is still 1.4 points lower than in January 2024).

At the same time, Tesco Mobile (scored 82.5) saw their ranking rise from 20th to 16th position over the same period, while Utility Warehouse (81.3) dropped from 23rd to 28th and giffgaff (80.1) similarly fell from 32nd to 47th. But on the flip side, we saw Sky Mobile (80.2) suddenly return to the table by jumping into 41st position. The performance gap between Sky and giffgaff is small because a lot of providers were tied in the 41st and 47th positions.

The report notes that “Telecommunications and Media” is the only sector in which the number of customers experiencing a problem with an organisation (18.9%) has not fallen compared to a year ago (when it was 18.7%). But we should point out that some highly rated telecoms providers didn’t receive enough feedback to be included into the top 50 table. For example, broadband ISP WightFibre has separately reported achieving a CSI score of 90.4, which is significantly higher than both the sector average of 73.3 and the UK all-sector average of 75.8.

2025-January-Customer-Satisfaction-Survey-UK-Top-50-Companies

Sadly, the full report doesn’t include scores for all the UK mobile and broadband providers surveyed, only those that ranked high enough to be listed in the top tables.

Sky Stream Box Briefly Gains Option to Add Terrestrial UK TV Channels

Some customers of Sky’s broadband-based Sky Stream TV devices (puck) have, over the past week, noticed the surprise addition of a new “TV Input” App that appears to activate the previously unused TV aerial port (tuner) on the back of the box – making it possible to add terrestrial Freeview channels via the old-fashioned method. But it may only be temporary.

Until now, the Sky Stream boxes have been purely focused upon the delivery of broadband based TV streaming (hence the name), which has allowed Sky’s customers to access the company’s vast array of TV content and channels without needing to hook-up either a satellite dish or TV aerial (i.e. it all comes via a WiFi or wired link to your broadband router).

In fact, the aerial port has remained deactivated in the UK and was largely believed to be a feature intended for customers in a different country. But all that changed last week after customers on Sky’s Community Forum began to notice the addition of a new “TV Input” App (note: Sky Glass TV’s already have a similar option).

The feature, as currently implemented, seems to be a bit unusual for Sky Stream because even the new App will become useless when your internet connection goes down, which removes its worth as a backup option during broadband outages (although Sky could change how it works in the future). Not to mention that most people will already be able to revert to their existing TV’s aerial and internal tuner during such connectivity outages.

The TV Input App also only picks up the digital channels (i.e. no data/streaming channels) and appears to be a largely isolated experienced on the device (i.e. it doesn’t integrate with the TV Guide or Home Screen etc.). Not to mention the lack of recording functionality (PVR) on the pucks with this App, which is another drawback.

However, not everybody can see the new App, and yesterday it disappeared again for many of those who found themselves able to access it. At present, it’s not known why the App appeared in the first place (error or early trial), although Sky’s support agents continue to state that the device doesn’t support such a feature. We’re currently asking Sky to clarify.

O2 to Start UK 3G Mobile Switch Off in City of Durham in April 2025

Mobile network operator O2 (Virgin Media) has this morning revealed that they’ll begin the withdrawal of their older 3G mobile (broadband) services across the United Kingdom – the last major operator to do so – in April 2025, which will start with the city of Durham in England (not to be confused with County Durham).

Just to recap. Back in 2023 VMO2 became the final mobile operator to reveal their plan for switching off their 3G mobile (mobile broadband) network (here), which they said would begin in 2025 and the withdrawal will then occur in phases, with completion by the end of this year.

NOTE: The UK government and all major mobile operators have jointly agreed to phase-out existing 2G and 3G signals by 2033 (here). Meanwhile, O2’s 3G network, which was first launched more than 20 years ago, today carries less than 3% of all network data.

The first switch-off site in Durham will thus help to inform their wider withdrawal programme. The process also aims to free up radio spectrum so it can be used to further improve the network coverage and mobile broadband speeds of more modern 4G and 5G based networks, as well as future 6G services. The switch-off will also reduce the operators’ costs and power consumption.

The operator states that the “vast majority of customers” will not have to take any action as a result of the switch off. O2 added that they’ve already started directly contacting the small proportion of customers in Durham who don’t currently have a 4G or 5G device to let them know that, from April, they will require a 4G SIM and handset to continue using mobile data.

As part of the company’s plan to support the small number of customers who will be impacted, known “vulnerable customers” have already been offered a 4G-ready device free of charge, helping them stay connected, while all other customers who don’t currently have a 4G handset or SIM will be offered a new device at a reduced price. Customers who don’t upgrade will find that their connections fall back to 2G, but they “would not be able to use mobile data” (2G can actually do data, it’s just so slow as to be pretty useless for the modern web).

Jeanie York, VMO2’s Chief Technology Officer, said:

“Switching off 3G will be an important milestone in the evolution of our network, enabling us to focus our attention and investment on faster and more reliable 4G and 5G networks that will deliver improved services for our customers.

By starting in just one location and by putting careful monitoring in place, we’ll minimise disruption to customers and ensure the success of this essential modernisation programme.

While the vast majority of our customers already have a 4G or 5G device and will not be impacted, our priority is to provide support to those who need it. That is why we are reaching out directly to customers who do not have a 4G or 5G-ready device, and calling those we know are vulnerable, to help them prepare.

We will continue to support our customers as we complete the switch off of our 3G network.”

The operator said that customers can find out more about their 3G switch off on O2’s official website. Customers of the operator’s various MVNO (virtual) providers also have information pages –  Tesco Mobile customers can find out more here, Sky Mobile customers should visit here, while giffgaff customers can access further support here.

In addition, O2 previously announced that they’d also start shifting almost all remaining traffic and customers off their oldest 2G network in 2025 too (here). But they won’t be turning that off completely for “several years” because it’s still necessary for some vital services (e.g. some Smart Meters – home energy tracking) and as a fall-back in areas where 4G and 5G signals have yet to reach.

As usual, O2 intends to upgrade 4G and 5G connectivity as the 3G service is withdrawn. In the Durham area specifically, VMO2 has already upgraded 4G and 5G masts over the past year, with further improvements planned in 2025.

Poor Broadband May Hamper Dorset Council’s Cost Cutting Drive Toward Digital

The Dorset Council in England recently set out its proposals for a £416m budget for 2025/26, which included major cost-saving measures of around £44m and some of that involves the greater adoption of digital technologies, as well as AI. But councillors have been quick to warn that “pockets” of poor broadband and a lack of digital skills, among some groups, could create problems.

The council is currently in the process of adopting somewhat of an “invest to save” approach, where it’s hoped that spending on new technologies over the next year or two and encouraging local people to “self-serve” via those solutions will result in savings over the longer term. But this only works well if your constituents all have the necessary digital skills and access to at least a viable broadband service.

At present around 98% of premises in Dorset (excluding Bournemouth, Christchurch and Poole) should have access to a 24-30Mbps+ capable fixed broadband service and 61% for gigabit speeds (1000Mbps+), although data from Thinkbroadband does indicate that 0.74% of premises in the county cannot yet access USO speeds of 10Mbps and this falls to 0.2% for 2Mbps. Suffice to say, basic internet connectivity isn’t as poor today as it used to be, but gaps do remain.

Speaking of which, rural ISP Wessex Internet recently announced that they’d begun the build phase of their new £33.5m state aid supported Project Gigabit contract in Dorset and South Somerset (here), which will extend their gigabit speed FTTP broadband network to cover 21,400 hard-to-reach premises. So improvements on the connectivity side are still being made, which is also true for 4G mobile networks under the ‘Shared Rural Network’ project.

According to the Dorset Echo, Cllr Sherry Jespersen similarly warned that digital skills aren’t static and someone who might be OK with technology aged 70, could still struggle as they reach 80, or 90 etc. Some of this may be due to issues of worsening disability / health as people age (poor sight, memory etc.). Conservative group leader, Cllr Andrew Parry, added that “cost savings and improved customer services are not the best of bedfellows,” before warning that if the planned technology did not work as it should, the council could end up alienating both staff and the public.

However, the council’s Corporate Development Director, Aidan Dunn, told councillors that Dorset was already falling behind the technology curve and, with financial pressures getting worse, had little choice but to use systems already being used elsewhere to make some savings while trying to improve services. The budget announcement suggests that the council will attempt to find £14.4m in savings just from “operating more efficiently“.

The issues are of course not unique to Dorset Council and every region, as well as the whole country, will face similar challenges in the march toward a much more digital future.

BDUK Publish Early Evaluation of Gigabit Broadband Subsidy Scheme

The Government’s executive Building Digital UK (BDUK) agency and Ipsos UK have today published an “early process review” of the Gigabit Infrastructure Subsidy (GIS) programme under their £5bn Project Gigabit broadband roll-out scheme, which identifies what “worked well” and “less well” in terms of providing the GIS intervention to date.

Just to recap. Project Gigabit was designed to focus on improving connectivity for those in hard-to-reach (mostly rural) parts of the final 10-20% of UK premises. This primarily consisted of several support schemes, including gigabit vouchers (£210m), funding to extend Dark Fibre around the public sector and gap-funded deployments with suppliers (rest of the funding) – known as the Gigabit Infrastructure Subsidy (GIS) programme.

NOTE: Project Gigabit aims to help extend 1Gbps capable (download) broadband networks to reach “nationwide” UK coverage (c. 99%) by around 2030 (here) – the UK is currently at about the 86% coverage mark today (here). The focus of this scheme is on helping to upgrade those in the final 10-20% of hard-to-reach premises.

Unlike prior schemes that handed funding to local authorities, the GIS programme and related procurement work has been much more centralised under government control (at least in England and Wales), which sees suppliers (e.g. CityFibre, Wessex Internet, BT Group etc.) bidding through a Dynamic Purchasing System (DPS) to extend their networks across disadvantaged parts of the UK.

As of November 2024, Project Gigabit had “over” 30 live gigabit broadband deployment contracts in place across England and Wales (here) – supporting planned deployments of gigabit-capable broadband to around 1 million premises. The new evaluation looks more at the process of how the GIS side of this project has functioned and “provides information on what has worked well and less well in terms of providing the GIS intervention to date“.

Broadly speaking, the early findings indicate that the “intervention appears to be operating effectively“, although it does note “some areas of concern around the change in the responsibilities of local bodies compared to the Superfast Broadband Programme, as well as around internal data across different interventions.” BDUK are currently also “trying to improve the quality of their internal data to help improve the accuracy of the OMR process” (i.e. the Open Market Review process is the mechanism that BDUK uses to identify future gigabit coverage over the next 3 years, which allows them to identify where public investment may be needed)

Conclusions of the Early Evaluation

The key findings and conclusions from the early process evaluation are presented below. Findings from a future impact evaluation will be needed to fully assess the effectiveness of some of the processes highlighted in this report, but the early findings indicate that the intervention appears to operating effectively:

Market engagement: The level and format of early engagement with the market, particularly BDUK demonstrating it was listening to the views of the market, was important in establishing an intervention that network providers were interested in participating in.

Intervention design: The intervention design process appears to have achieved the intended aims. It has balanced incorporating learning from the Superfast Broadband Programme around which areas are built to first with ensuring there is market interest. The approach to the ordering of connections used for the GIS intervention, in parallel with the rolling OMR process, was described as an improvement from the Superfast Broadband Programme in terms of preventing overbuild.

Intervention areas: The intervention areas identified by BDUK appear to represent areas which have a higher need of public subsidy to ensure the population can access gigabit capable networks. Providing intervention areas of different sizes has allowed different types of network provider to participate in the intervention and has allowed all contracts tendered to date to attract bids.

Intervention participation: All contracts tendered at the time of this research had attracted submissions from network providers, with 12 of the 19 contracts that have been awarded attracting more than one bid.

OMR responses: BDUK have secured a high level of participation in the OMR process. Out of 120 network providers invited to take part, more than three quarters have provided a response. This includes all large, national providers. The most recent national OMR process, in May 2023, secured 57 responses, again including all large, national providers.

Resources required to complete the OMR: Network providers reported that the resources required to complete the OMR process is substantial but has decreased over time due to learnings made by the providers and improvements made to the process by BDUK. These improvements included providing clearer guidance on requirements and making slight alterations to the data request to align more closely with the Connected Nations request from Ofcom.

OMR Feedback: Network providers reported that the feedback to more recent iterations of the OMR process provided a good level of detail about their submission, and was helpful to them in terms of future submissions. Previously feedback had been described as being insufficient and not useful.

Rolling OMR process: The proportion of English premises that have been categorised as ‘white’ in the year since the national OMR process was launched has altered, with a significant decrease in the premises categorised as ‘white’. This change will have significant impacts on where the GIS intervention will provide subsidised networks in order to maximise additionality. This highlights the benefits of undertaking a dynamic, rolling OMR process to BDUK and protecting the public purse.

▪ Further changes to OMR process: Further work is ongoing to enhance the OMR, including internal data verification, ongoing reviews of the feedback provided to respondents and how the results of the OMR are shared. These changes will need to be assessed in subsequent evaluation activity.

One area of concern which was highlighted in the research was around the level of engagement with local bodies nations. BDUK has taken responsibility for the OMR and tendering processes in England and Wales, which used to be the responsibility of the local bodies in the Superfast Broadband Programme.

There appears to be some current challenges around data sharing between BDUK and the local bodies. This has led to some concerns being raised around the premises contracts are delivering to (and whether they would be covered by commercial or local authority build) and not utilising local knowledge in the tendering process. Additionally, local body input will be essential for the delivery of projects, therefore relationships with the local bodies nations will need to be strong to ensure the GIS intervention can be delivered effectively.

A further area of concern was around BDUK’s internal data across different interventions, most notably across the GIS intervention and the voucher scheme. BDUK are currently trying to improve the quality of their internal data, to make sure staff working on different interventions have a clear view of the premises other interventions are delivering to. This change should help to improve the accuracy of the OMR process and the premises categorised as ‘white’.

The report itself makes for quite a laborious read, unless you’re deeply interested in the technical side of the programme like we are, and no doubt some people will also view it along the lines of marking your own homework (i.e. containing some criticism, albeit largely playing it safe).

However, one area we would like to see improved is the issue of public transparency, specifically with the progress that each awarded contract has made. Under the previous SFBB programme, we got regular quarterly updates of how many premises had been delivered and the level of take-up obtained by each region/contract etc. Some local authorities also produced useful roll-out maps. But such data has not been so forthcoming under Project Gigabit, and the reports we do get are often far too limited.

Broadband ISP KCOM Awards Another £30k of Digital Inclusion Grants

Hull-based broadband ISP KCOM, which is building a Fibre-to-the-Premises (FTTP) network across parts of East Yorkshire and Lincolnshire in England, has named the second round of three winners for their Digital Inclusion Grants. Each of the projects and organisations will share from a pot of £30k, which aims to improve lives in communities across the region.

The grant scheme, which is due to run until the end of 2026, is designed to help promote online inclusion, build stronger communities, connect generations and help boost digital skills and awareness across KCOM’s operating region.

The winners of this round of grants include the Goodwin Community Hub, which scooped £15,000 to fund its Get Online project, which empowers HU3 residents to learn new digital skills, improve participants’ ability to access services and employment opportunities and also stay connected with family.

The Creative Briefs organisation also won £10,000 to help support children and families (special focus on neurodiverse children), while Reel Creative secured £5,000 to help empower disadvantaged children and adults to tell their stories through media production.

Louise Babych, KCOM community impact partner, said:

“Once again we’ve had some fantastic entries for our latest round of Digital Grants and it was tough picking just three – but our three winners really stood out for having the potential to boost digital inclusion within the KCOM region.

Our Digital Grants are all about getting people online and boosting digital skills that will create opportunities and improve lives and the projects we’ve chosen will have a lasting legacy. I can’t wait to see the winning projects in action.”

The window for the next (third) round of applications is now open – see here.

Uswitch highlights risks to customers as VMO2 targets 3G sunset

sunset

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A new survey suggests that the switch off could leave over 4.3 million people without access to mobile internet

Today, Virgin Media O2 (VMO2) has announced it will begin its 3G shutdown in the city of Durham in April, before expanding to the rest of the UK by the end of the year.

The move will see customers with capable devices switched onto the faster and more energy efficient 4G and 5G networks, allowing VMO2 to repurpose the 3G spectrum.

Alongside VMO2’s mobile customers, the shutdown will also impact the customers of mobile virtual network providers that provide services over VMO2’s network, such as s Tesco Mobile, GiffGaff, and Sky Mobile.

According to the operator, only 3% of the company’s network traffic is carried over its 3G network, a figure that is decreasing steadily year-on-year.

“Switching off 3G will be an important milestone in the evolution of our network, enabling us to focus our attention and investment on faster and more reliable 4G and 5G networks that will deliver improved services for our customers,” said Jeanie York, Virgin Media O2’s Chief Technology Officer.

“While the vast majority of our customers already have a 4G or 5G device and will not be impacted, our priority is to provide support to those who need it. That is why we are reaching out directly to customers who do not have a 4G or 5G-ready device, and calling those we know are vulnerable, to help them prepare.”

Exactly how many people are likely to be impacted by the shutdown is unclear. A recent survey, conducted by Opinium on behalf of Uswitch.com, suggested that the switch off could leave over 4.3 million people without mobile broadband following the 3G sunsetting.

The survey included 2,000 respondents, 875 of which were VMO2 customers. Of those, 51 said that their phone was not 4G or 5G capable, while a further 110 did not know. This combined total was then extrapolated in line with the UK’s adult population, giving the total of 4.3 million customers that could lose mobile internet from the 3G shutdown.

The scale of this disruption, however, seems overblown. Given handset distribution in the UK – and the fact that retailers have been gradually taking 2G/3G-only devices off the shelves for a number of years – it is likely that the majority of the phones reported in the ‘do not know’ category are, in fact, 4G/5G ready.

Indeed, back in 2023, Ofcom estimated that there were only 2.4 million mobile devices in the UK that currently use 3G or 2G connectivity – and that figure was split between all four of the UK’s mobile operators.

On that note, it is worth mentioning that all VMO2’s rivals have either already completed their 3G shutdown (Vodafone and EE) or are in the process of doing so (Three UK, which targeted the completion of its 3G shutdown by the end of 2024). In all these cases, disruption appears to have been minimal; it has certainly not caused the level of complaints you would expect from millions of people being cut off from the internet.

Ultimately, it seems like VMO2’s 3G sunsetting will affect a relatively small number of people, whom the operator is seeking to adequately support where possible.

Alongside shutting down its 3G network, VMO2 is also planning to shift almost all its customers off of its 2G network, though the network itself will not be fully shut down for a number of years due to it supporting critical services like smartmetres.

VMO2 says only 1% of its customers currently use 2G-only mobile devices.

How is the UK telecoms market evolving in 2025? Join the discussion at Connected North live in Manchester

Also in the news:
VEON and Starlink to launch Direct-to-Cell Satellite connectivity in Ukraine
Swisscom completes acquisition of Vodafone Italia
Equinix to buy BT’s Irish data centre business for €59m

TalkTalk pulls support for ‘Internet Matters’ charity amid financial struggles 

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TalkTalk will exit its co-founded child safety charity, Internet Matters, by the end of March, the Telegraph has reported 

Internet Matters, a charity that educates parents, schools, and caregivers about online safety, was founded in 2014 by TalkTalk alongside BT, Virgin Media, and Sky.  

Despite growing concerns about online safety and upcoming UK regulations aimed at tightening controls over major internet platforms, TalkTalk says it is no longer able to financially support the charity. 

“TalkTalk is proud to be one of the founders of Internet Matters, having financially supported the organisation for the past decade. We remain committed to online safety and are exploring different ways of continuing to support Internet Matters and its work moving forward,” said a TalkTalk spokesperson.Internet Matters is primarily funded by its founding members, each contributing an annual membership fee of around £300,000. 

“We would like to thank TalkTalk for the significant contribution they have made to Internet Matters for the last 11 years. Their support has been invaluable,” said an Internet Matters spokesperson. 

“Internet Matters remains committed to its mission to keep children safe online and is supported by a broad base of members and partners across a range of industries, and we look forward to continuing to work with them to provide families across the UK with the vital help that they need.” 

TalkTalk’s withdrawal is part of the wider cost-reduction strategy,  with the company aiming to reduce its overall expenses by £120 million.  

Additional cost cutting measures include job cut, with TalkTalk already having begun redundancy consultations for the 130 jobs being cut at in its consumer division based in Salford. More are set to follow at its wholesale business, Platform X.  

The company’s latest accounts show the company had losses of £72 million in the six months to August 2024, up from £47 million in the same period last year. Revenue also fell 6% to £700 million. 

Join the conversation on the UK connectivity market at this year’s Connected Britain, 24-25 September in London. Get tickets here!  

Also in the news:
Vodafone fully offloads remaining Indus Towers stake
Nokia and Openreach partner for fibre network automation
The future evolution of ODN technologies