The UK telecoms regulator, Ofcom, has today published the third edition of their forecast for Planned Network Deployments, which predicts that full fibre (FTTP) broadband ISP lines are on course to cover 95-96% of all UK properties by May 2027 (29 million premises) – rising to 97-98% for “gigabit-capable” networks (i.e. FTTP and Cable).

According to the regulator’s latest data to January 2024 (here), some 62% (18.7m) of UK homes are currently within reach of a Fibre-to-the-Premises (FTTP) network (up from 48% in Jan 2023) and this rises to 80% for gigabit-capable networks (up from 73%). The latter is being driven by both FTTP from multiple operators and Virgin Media’s older cable DOCSIS 3.1 network (there’s a lot of overbuild between these in urban areas).

The new report goes further and, based on the stated deployment plans of network operators as of May 2024 (looking up to 3 years in advance), attempts to predict how much coverage will be achieved by May 2027. These plans include those that are privately funded as well as any plans that are supported through public funds/intervention.

The vast majority of this FTTP and gigabit-capable broadband coverage tends to come from commercial builds – mostly in urban areas, although rural areas will also see substantial network upgrades. The UK Government’s £5bn Project Gigabit programme is specifically focused on the final 10-20% of hardest to reach premises (i.e. aiming to extend gigabit coverage to at least 85% of UK premises by the end of 2025 and then around 99% “nationwide” by 2030).

If all of the planned deployments are realised, Ofcom’s report forecasts that gigabit-capable networks in urban areas could increase from 22 million premises (85%) today to 25.6m (99%) in 2027 and from 2.1m (49%) to 3.8m (88%) in rural areas. But this picture varies a fair bit across the different regions and local authorities.

The following forecast splits the figures down across England, Wales, Scotland and Northern Ireland. Ofcom also gives an additional “High Confidence” forecast, which gives a forecast for coverage from plans that have reached both the Low Level Design stage and for which funding has actually been committed (this excludes a lot of highly likely, but not yet 100% committed, build plans).

In addition, Ofcom’s new data also has a look at overbuild between rival networks and estimates that up to 81% of UK properties will be able to take gigabit-capable services from two or more providers by 2027. Finally, the regulator also anticipates an expansion of Fixed Wireless Access (FWA) networks offering speeds of 100Mbit/s+. “Our data reports that, over the planned period, around 4,300 further FWA masts are being planned or upgraded across the UK, in addition to around 28,500 existing ones, that may be capable of offering high speed broadband,” although they acknowledged that mapper the actual reach and performance of such networks was difficult.

The UK telecoms regulator, Ofcom, has today acknowledge that their already much delayed new One Touch Switch (OTS) system for faster consumer broadband ISP migrations won’t be 100% ready for launch on 12th September 2024. But rather than delay it, again, they’ve instead ordered providers to retain the old system for a further 6 weeks.

Just to recap. The new approach expands the existing Gaining Provider Led (GPL) migration system to work across alternative networks (the old system was mostly only focused on Openreach based providers) and to action switches within just 1 day instead of 10 days “where technically possible“. But that has required masses of internet providers to work together, and the development process has been a bit.. bumpy (here, here, here, here and here).

The industry-led One Touch Switching Company (TOTSCo), which is responsible for implementing the regulator’s OTS migration system, had most recently been expected to fully introduce the new system from 12th September 2024 (here), which is over a year past its original launch date of April 2023. But Ofcom has today recognised that the testing process for this still needs a bit more time.

However, rather than suffer the embarrassment of having to delay the launch again, the regulator has instead ordered ISPs to retain the old migration process for an additional six weeks.

Ofcom’s Letter to Communication Providers

One Touch Switch implementation – Extension of NoT+ consumer protections

I am writing to update you on Ofcom’s position regarding the enhanced Notification of Transfer (NoT+) functionality in light of the progress of the continuing One Touch Switch (OTS) industry trials.
The OTS Hub was made available by The One Touch Switching Company (TOTSCo) for live customer switches in July 2024. This has enabled a programme of live customer trials of OTS to be undertaken by communications providers with the goal of steadily increasing volumes of OTS customer switches towards full launch, with 20 brands already participating. This ramp up plan is essential to ensure that the OTS process is working effectively and reliably for customers before NoT+ is turned off.

The most recent information we have received from communications providers and TOTSCo indicates that although there are large and increasing volumes of customers being switched successfully using OTS, these volumes have not yet reached a level to provide sufficient confidence that all customer switches will be able to follow the OTS process by the planned industry launch date of 12 September 2024. I understand emerging evidence from the trials has indicated a need for providers to carry out further analysis and improvements to ensure the matching process achieves a sufficiently high success rate to effectively support all customer switching journeys, but these improvements may not be fully implemented by the planned launch date.

We expect all communications providers in scope of OTS to do everything possible to accelerate the full adoption of OTS for all customer switches, and for OTS to be the main switching mechanism from 12 September 2024.

However, in light of the progress to date, we consider that it would be appropriate to retain the existing NoT+ functionality, for a limited period beyond 12 September 2024. This would enable customers to be switched using the existing NoT+ process as a back-up option, and only in those circumstances where communications providers, having started the switching process via OTS, find that it is not possible to technically proceed. To this end, I am today writing to Openreach, KCOM and wholesalers who operate NoT+ to ask that they delay its removal for a six-week period. We will review progress during this time including requesting information from communications providers on the number of switches concluded via OTS, and those which may have had to be put through the NOT+ process and the reasons for this.

To be clear, we expect providers to use OTS in the first instance for all switches and only to consider the back-up NoT+ process when it is not technically possible to proceed with the switch through OTS, for example, if it is not possible to resolve a matching failure. This is to help protect consumers and ensure they receive the necessary information about their decision to switch. It is imperative that providers continue to make urgent progress with implementing improvements to the OTS process and we therefore expect any need for use of the NoT+ process as a back-up option to rapidly reduce over this period. Notwithstanding the extension of NoT+, providers must not use Cancel Other functionality for any OTS switch.

We understand that all communications providers who are to date participating in the OTS ramp up are fully committed to supporting 100 percent of customer switching journeys as a losing provider. Therefore, this should enable other providers to continue with existing plans to sign up with TOTSCo to use the OTS Hub and start gaining customers using the OTS process from 12 September 2024. Any provider which currently uses NoT+ should be aware that, for this 6-week transition period, they may need to support a proportion of losing customer journeys within the existing NoT+ process as well as via OTS.

Ofcom will continue to monitor the implementation of OTS closely. I expect communications providers to cooperate positively including with TOTSCo, network operators and wholesalers to ensure that customers continue to be able to switch services smoothly during this transition and that OTS can be fully adopted with the greatest urgency. In particular, it is important to share any insights from analysis of the matching process. I have asked the Office of the Telecommunications Adjudicator to continue to work closely with industry to ensure a smooth and speedy transition. As previously announced, our ongoing enforcement programme will review the conduct of all industry participants since our statement in 2021 in order to determine whether it is appropriate to open investigations into individual providers after launch.

Yours sincerely,

Cristina Luna-Esteban

News

The move sees the billionaire’s total stake in the UK incumbent rise to 4.3%

This week, a regulatory filing has revealed that Mexican tycoon Carlos Slim has upped his stake in BT by 1.1% to 4.3%.

The £150 million investment comes via Slim’s family business Inbursa and related subsidiaries.

Slim first acquired a stake in BT back in June, spending around £400 million to buy a 3.2% stake.

At the time, analysts viewed the investment as a vote of confidence in BT’s new CEO Allison Kirkby, who had implemented a raft of cost-saving measures in the business since her inauguration in February.

The move supports analysts assessments that BT is undervalued, presenting an appetising investment opportunity to oversees firms.

In related news, last month Altice UK agreed to sell its 24.5% stake in BT to Indian telco giant Bharti Airtel.

Financial details of the move were not disclosed, but estimates suggest the deal is worth around £4 billion.

So far, a 10% stake has been transferred to Airtel, with the remainder to follow pending regulatory approval.

Altice had been notably struggling under the weight of almost $60 billion of debt and, with pending dept repayment deadlines, was in need of restructuring.

As a result of these deals and existing investments, more than 40% of BT is now owned by foreign investors.

Join the conversation on the UK connectivity market at this year’s Connected Britain, 11-12 September in London. Get tickets here! 

Also in the news:
Vodafone deploys 5G private network at Czech nuclear power plant
Ogi received £45m funding to aid expansion
Musk’s Brazilian bust up sees Starlink accounts frozen

Global network operator Netmore has signed a contract with Yorkshire Water in England that aims to upgrade and connect 1.3 million water meters across the Yorkshire region (i.e. those that are reaching the end of their operation life) to their Long Range Wide Area Network (LoRaWAN).

Fixed wireless LoRa networks harness only a small slice of lower frequency radio spectrum (usually in one of the sub-1GHz bands like 868MHz or 915MHz) in order to support relatively slow, but extremely low power, data connections over a wide coverage area. Such networks tend to run at sub-Megabit speeds (often under 0.05Mbps, but some variants can handle several Megabits), which makes them ideal for linking Internet of Things (IoT) style sensors.

The new Netmore contract, which is still subject to Ofwat’s final determination (due in December 2024), will run for an initial term of 5 years, plus data services for the meters installed up to 2045 (this includes the delivery, installation, commissioning, and maintenance of connected smart meters).

This new program will run concurrently with smart meter deployments that began in 2022 when Netmore was awarded AMI frameworks by Yorkshire Water for the delivery of LoRaWAN network services and provisioning of meters for up to 360k households, including new developments and Domestic Metered Optants.

Adam Smith, Manager of Smart Networks and Metering Transformation, YWS, said:

“The initial smart metering program with Netmore launched in 2022 has helped Yorkshire Water deliver the first 500,000 litres of leakage reduction, by identifying water leakage on customers pipes. It has also helped us to better understand water demand patterns in our initial 25,000 Netmore smart meters and target water efficiency activity, all while delivering both operational value and the long-term perspective needed for the expansion of our [advanced meter infrastructure] initiatives.

Following a rigorous evaluation process and procurement analysis, we are confident in the choice of Netmore and its partners for our meter exchange program, as they collectively have the ability to help us deliver our ambitious goals and success criteria related to leakage, water efficiency, customer experience, and operational carbon emissions.”

Morrison Water Services, under contract with Netmore, will now plan, schedule and work with household and non-household customers to deliver the exchange of the meter. The program is expected to begin in South Yorkshire in 2025.

Broadband ISP Connexin has separately won a number of similar contracts to hook up water meters in various regions to their own LoRA wireless network, one of which is also Yorkshire Water.

Sky (Sky Broadband) has confirmed that they will, from today, be “phasing out” their old satellite-based Sky Q Triple Play packages, which means they’re “no longer available for purchase on Sky.com“. Existing customers will continue to be supported, but as expected, Sky’s focus is now firmly on their newest internet-based streaming products.

The move has been expected ever since Sky pivoted to launched Sky Glass (Sky integrated streaming TV set) and Sky Stream (streaming set-top-box) a few short years ago, which are standalone products that use your home broadband ISP and WiFi connection to stream Sky’s on-demand video content and live TV channels (i.e. without any need for a tedious satellite dish).

As for Sky Q-Lite, Sky seems to be indicating that they’ve now stopped communicating related products as part of their offer updates, although they don’t specifically say that it’s no longer available like their Sky Q Triple Play packages. But it’s probably only a matter of time until that changes.

None of this should come as much of a surprise, as this has clearly been Sky’s direction of travel for some time. However, it’s worth noting that Sky Glass and Sky Stream aren’t yet perfect and there have been some complaints about their shortcomings vs Sky Q, although Sky have been working hard over the past few years to improve the new platforms and tackle such gripes.

Technical consultancy firm FarrPoint has today published their first International Digital Connectivity Readiness Index (IDCRI), which ranks the United Kingdom top against the G7 nations. The index ranks countries by the quality and coverage of their digital infrastructure (broadband, 5G etc.), as well as other areas like digital skills and online security etc.

The scores contained within this report are based on key indicators gathered from a series of data sources, such as Ofcom and the Office for National Statistics (ONS) in the UK. The infrastructure side covers four key indicators based on metrics around Gigabit Broadband, “Decent Fixed Connectivity” (this isn’t defined), 4G and 5G mobile connectivity.

However, on the adoption side, eight key indicators have been produced looking at the following categories: Online Households, Digital Skills, Security Online, Online Wellbeing, Access to Public Services, Affordability, the Digital Economy and Innovation.

Overall the UK manages to top the report and beat the other G7 countries, but it’s also clear that we still need to address challenges in areas such as Online Wellbeing, Security, and Innovation. The UK ranks in the middle for digital infrastructure, while our strongest categories are in Digital Adoption, the Digital Economy, Online Households, and Digital Skills.

By comparison, the USA and Germany share 2nd place, while Italy came last. Sadly, the full report only offers a fairly limited high-level overview of each country and doesn’t include much detail on the individual ranking categories, but it’s still an interesting table for a quick glance.

Matthew Izatt-Lowry, FarrPoint’s Head of Economics, said:

“Our International Digital Connectivity Readiness Index report underscores the vital role digital connectivity plays in driving economic growth, social progress, and environmental sustainability. As the global economy increasingly relies on digital infrastructure, understanding the unique challenges and opportunities of each country is paramount for policymakers to make informed, evidence-based decisions.”

News

TalkTalk has been struggling with debt for several years, with the total currently standing at nearly £1 billion

TalkTalk has announced that it has signed a binding agreement on a refinancing deal that was first revealed last month.

The deal saw shareholders – including founder Sir Charles Dunstone, Toscafund, and Ares Management – agree to inject an additional £170 million into the business, in addition to the £65 million invested last month.

The deal also included the transfer of assets including Virtual1 subsidiary and the customer bases of Ovo and Shell, bringing the total refinancing to over £400 million.

The agreement will enable TalkTalk to extend the repayment deadlines for its Revolving Credit Facilities (RCF), originally due in November 2024, and its Senior Secured Notes (SSN), which were set to mature in February 2025. The new agreement will push the debt maturities out to September 2027, giving the company more time to shore up its finances.

The deal was expected, with TalkTalk’s Chief Financial Officer James Smith confirming last month that “we are making constructive progress and are confident of a near term agreement which will ensure the group is well capitalised going forward.”

The company will now move forward with implementing this refinancing agreement, with the transaction expected to be completed in the coming months.

In related news, last month it was reported that Macquarie, who had been in discussions to acquire a £450 million stake in TalkTalk’s wholesale unit, PlatformX, had walked away from the deal. Reports have suggested that it could reopen negotiations if TalkTalk’s financial situation improves.

“The Company has entered into a binding lockup agreement in support of the transaction with its major shareholders, RCF banks and a group of SSN holders, which together hold approximately 70% of the Company’s secured debt,” read TalkTalk’s statement.

Join the conversation on the UK connectivity market at this year’s Connected Britain, 11-12 September in London. Get tickets here! 

Also in the news:
Vodafone deploys 5G private network at Czech nuclear power plant
Ogi received £45m funding to aid expansion
Musk’s Brazilian bust up sees Starlink accounts frozen

New customers looking to join Virgin Media’s broadband service may like to know that the ISP has shaved a few extra pounds off some of their packages and bundles. For example, their 1Gbps standalone plan on an 18-month term is now £39 per month (£78 thereafter), while some of their TV bundles come with a Eufy doorbell & security camera worth £359.98 or £150 bill credit.

As usual, customers will also receive an included wireless router and free setup. The discounted standalone broadband plans generally start at £24 per month for a 132Mbps (20Mbps upload) service, before rising to £27 for 264Mbps (25Mbps), £33 for 516Mbps (52Mbps) and £39 for 1130Mbps (104Mbps). A 2Gbps (200Mbps) tier also exists in nexfibre areas (as does the paid option of a symmetric speed boost), but that’s not on a discount and is still £84 per month.

In addition, until 12th September, Virgin Media are also offering new customers the opportunity to get their hands on Eufy doorbell & security camera bundle worth £359.98 and security camera or £150 bill credit when they purchase selected bundles on an 18-month contract.

The selected bundles include:

Bigger Combo bundle + Movies (18-month contract) for £60.99 per month

M125 Fibre Broadband, 11 Sky Cinema HD, 200+ TV channels and weekend chatter.

Biggest Combo bundle (18-month contract) for £79 per month

M125 Fibre Broadband, Sky Sports, Sky Cinema HD, 210+ TV channels, Netflix standard and weekend chatter.

Bigger Combo + Sports HD (18-month contract) for £69.99 per month

M500 Fibre broadband, Sky Sports

Sports channels in HD, 200+ TV channels and weekend chatter.

Mega Volt (18-month contract) for £84.99 per month

1Gbps Broadband, TV (240+ TV channels and subscription services including Netflix, Prime Video, Disney+ and Paramount+) and Mobile (an unlimited O2 SIM which includes data roaming in 75 worldwide destinations at no extra cost).

News 

The new NetCo was first announced in February 

Virgin Media O2 (VMO2) is seeking investment for its newly created network company, according to a Bloomberg report this week which cited people familiar with the matter. 

The network business is reportedly worth £5 billion, with VMO2 seeking an additional £1 billion in investment through the sale of a minority stake. The size of the stake available is estimated to be between 20% and 40%, and could come as soon as next month, according to the article. 

Back in February, Liberty Global, joint owner of VMO2 along with Telefonica, announced that it was preparing to spin off VMO2’s fixed broadband network into a fully owned wholesale subsidiary NetCo, which it said would establish the “biggest dedicated fixed network challenger [to Openreach] in the country”. 

“This is a logical evolution of our fibre strategy that creates a clear, focused and scaled network entity within the Virgin Media O2 family which underpins our shift to a fully fibre network and reinforces our position as the leading challenger to Openreach in the market,” explained VMO2 CEO Lutz Schüler at the time. 

This NetCo is not to be confused with nexfibre, the joint venture formed in 2022 between Liberty Global, Telefónica and Infravia. Nexfibre already covers roughly 1.3 million premises with full fibre and aims to increase this figure to 7 million homes, targeting those not currently covered by Virgin Media’s network of over 16 million premises. 

Join Lutz Schüler at next month’s Connected Britain, 11-12 September in London, Get tickets here! 

Also in the news: 
Vodafone deploys 5G private network at Czech nuclear power plant
Ogi received £45m funding to aid expansion
Musk’s Brazilian bust up sees Starlink accounts frozen

Alternative UK network operator Freedom Fibre, which has built their 10Gbps capable full fibre broadband (XGS-PON / FTTP) network to cover 300,000 premises across England (27th Mar 2024) and is home to 20,000 customers (12th Aug 2024), has today awarded thousands of pounds to support 23 community groups from across North Shropshire.

The grants form part of the £25,000 that the operator allocated to their “Freedom Fund” for North Shropshire in April 2024 (here), which is open to non-profit community groups and environmental projects in areas where Freedom Fibre are currently deploying their new full fibre network. Each project could apply for up to £500 worth of funding.

Neil McArthur, Freedom Fibre’s CEO, said: “The non-profit groups that have received the funding are all working to positively impact their communities through education, sustainability efforts, and projects that bring local residents together. All these goals directly align with Freedom Fibre’s own company values, and we feel incredibly privileged to work alongside these community groups to help benefit the areas where Freedom Fibre is building our network.”

Successful applicants for this year’s Freedom Fund (North Shropshire):

Greenfields Community Group, which was awarded £250 to contribute towards a solar-powered light for an information sign, as well as to create a herb garden.
Friends of Buntingsdale PTFA, which was awarded £250 to contribute towards improvements to the Buntingsdale Primary School playground.
Wem Rural Parish Council, which was awarded £250 to contribute towards hosting a local environmental awareness event.
Great Mess to Little Mess Community Projects, which was awarded £500 to contribute towards litter picking kits.
Great Ness & Little Ness Parish Council, which was awarded £250 to contribute towards the refurbishment of Wilcott Play Area.
We are Whitchurch, which was awarded £500 to contribute towards trees and bushes for Jubilee Park.
4 All Foundation, which was awarded £500 to contribute towards an allotment for a children’s eco group.
Renshaw’s Field Association, which was awarded £500 to contribute towards new benches for Renshaw’s field.
Payton Recreation Ground and Village Hall, which was awarded £214 to contribute towards bird boxes, wild seed, and a bench.
The Friends of Whitchurch Road Cemetery, which was awarded £500 to contribute towards trees and a bench for the cemetery.
Green Shoots in Weston Rhyn, which was awarded £250 to contribute towards signs for newt and toad crossings, as well as signs about verge regrowth.
Sutton upon Tern Parish Council, which was awarded £500 to contribute towards clearing ditches to prevent flooding, as well as funding wildflowers.
Welshampton and Lyneal Climate, Sustainability and Biodiversity Working Group, which was awarded £500 to contribute towards plants, bulbs, seeds, and materials for bird and bat boxes for the local community.
Whittington Castle Preservation Trust, which was awarded £500 to contribute towards funding for a ‘Eco Warriors’ kids club on the castle grounds.
Lyneal Trust, which was awarded £400 to contribute towards wildflowers, bat boxes, and an earth bank to reduce flooding.
Ford Parish Council, which was awarded £500 to contribute towards fruit trees and a planter for land outside Ford village hall.
Pant Memorial Institute, which was awarded £500 to contribute towards refurbishing Pant Memorial Hall’s toilet and make it more water efficient.
St Martins Youth Club, which was awarded £400 to contribute towards bird boxes, water butts, seed trays, compost, trellis, pots, and a compost bin.
The Shropshire Union Canal Society, which was awarded £500 to contribute towards hollow boxes for a living bank alongside the canal for water voles and other nature.
Queensway Playing Fields Association, which was awarded £250 to contribute towards planting fruit bushes.
Rodington Parish Climate and Nature Group, which was awarded £500 to contribute towards shrubs, trees, bulbs, compost, and bark.
Friends of Baschurch COE Primary School, which was awarded £500 to contribute towards a natural play environment for children.
Whitchurch Blackberry Fair, which was awarded £250 to contribute towards donating trees and promoting a community orchard.