Troubled mobile operator Lyca Mobile, which is a virtual network operator (MVNO) on EE’s platform in the UK, has suffered another major blow this week after the tax authority, HM Revenue and Customs (HMRC), filed a winding-up petition in the courts against their UK business on Monday.

Just for those who may be unfamiliar with this process, a Winding Up Petition (WUP) is a legal action that is usually taken by a creditor or creditors, which in this case is HMRC, against a company that owes them money. Such petitions are an expensive approach and so are usually only considered as a last resort (i.e. when all other approaches to settle a debt have failed).

The move, as first reported by City AM, comes shortly after a Tax Tribunal ruled in HMRC’s favour over a £51m (aggregate) dispute related to the VAT treatment of customer “bundles” that were sold over a period of around 7 years (here). The company’s most recent accounts (here) noted that Lyca had made a provision of £99m to reflect their current best estimate of exposure.

The same accounts revealed that the operator, which has previously donated over £2.1m to the Conservative Party, had 1.7 million UK subscribers at the end of 2022, a churn rate of 9% and revenues of £145m (up from £138m). But they also made a loss after tax of £25.1m, which compares with a profit of £1.8m in 2021.

The accounts also included an independent auditor’s report from PKF Littlejohn, but the auditor stated that they had “not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion” (i.e. they couldn’t sign off the accounts). Much of that related to the recoverability of a due balance of nearly £150m (here).

The balance included “£105,979,000 due from related parties“, as well as “£41,704,000 due from directors and parties associated with directors” and the “completeness and accuracy of the deferred income balance of £10,870,000” related to creditors.

The development follows last year’s cyberattack (here), recent problems with 5G connectivity (here) and the conviction of Lyca’s French entities for money laundering and VAT fraud – the latter is something the operator is appealing against. Not to mention some UK customers being hit by a spate of recent and suspicious card transactions, although Lyca has strongly denied any directly related breach of their own systems.

On top of all that, we’ve still got the outcome of the Information Commissioner’s Office (ICO) investigation into last year’s cyberattack (data breach) to come. Suffice to say that Lyca’s customers may have some concerns about the company’s future and the state of their services going forward.

Customers of UK ISP Sky Broadband, particularly those who enjoy certain online multiplayer video and computer games, may be interested to learn that the provider has launched a custom-built world (map) created for Fortnite called ‘Sky City‘. This is said to form part of their “ambition to be the #1 broadband provider for gamers”.

According to Sky, the “immersive” new “brand experience” allows players to “find seamless and authentic references to Sky Broadband, alongside other Sky brands, which blend in with and enrich the world without overshadowing the player experience“, which probably sounded exciting to Sky’s marketing team (i.e. actual gamers may have a.. different perspective).

Sky goes on to state that 16 players will enter the Sky City map via a “series of speed rails, a core feature of Sky Broadband” (we’ve never heard of ‘speed rails’ as a broadband feature). The map is said to be designed for rooftop battles, where players use speed rails and launch pads to gain a competitive edge. This unique activation is said to enable Sky Broadband to engage with a “core audience that traditional media isn’t able to reach“.

Apparently, all of this is going to be accompanied by a “series of livestream events which allow players to battle alongside their favourite creators, engage in challenges and win real-world prizes from Sky Broadband,” although none of those prizes are mentioned. Highlights of the tournament will then be posted on Sky UK and “influencer channels” on a weekly basis.

Sunny Bhurji, Sky Connectivity’s Marketing Director, said:

“I’m super excited about the launch of Sky City and the Speed Showdown activation as it once again demonstrates how Sky Broadband is essential to its gaming customers. It’s a first-of-its-kind tournament that really brings streamers and their audiences together and is all powered by Sky Broadband. I can’t wait to see the players in our Sky City Map, created in Fortnite.“

On the one hand, we welcome the inventive and interesting approach of an ISP / media empire creating their own Fortnite map as a means of promoting the brand to gamers. On the other hand, if an ISP really wants to become the “#1 broadband provider” for gaming, then it should be trying to demonstrate or promote that more in terms of its network features, optimisations and router hardware. Easier said than done, of course.

However, for what it’s worth, since the new map went live (yesterday) the activation has generated the following engagement stats:

➤ Total lifetime plays – 111,129
➤ Average playtime – 17 mins
➤ Average island retention – 8.26%
➤ Epic pick ranking – #1

Mobile operator Three UK has today published their latest results to 30th June 2024, which among other things reveals that 4,900 sites (up from 4,700 six months ago) across 656 towns and cities are now live with 5G (62% population coverage) and the average data (mobile broadband) usage per customer increased to 30.5GB (up from 30GB).

The operator has also completed construction of 311 (of which 269 are live) additional sites as part of the £1bn industry-led Shared Rural Network (SRN) project, which is expanding the coverage of 4G services to more residents and businesses in rural locations across the UK.

In addition, Three UK said they’ve now replaced equipment (Huawei) on more than 600 sites (up from 350) to comply with the Government’s requirements for High-Risk Vendor (HRV) legislation (inc. 3k miles of fibre and equipment replaced across the UK), which also means that they’ve hit the July 2024 target for having less than 35% of HRV traffic on their radio network.

Three UK also said that they’ve successfully completed a pilot programme to prepare for the switch off of 3G services, which will itself “begin in September” 2024 – the goal was to switch this network off completely by the end of 2024.

Finally, at least in terms of their network highlights, they’ve expanded their 4G and 5G network in London Underground stations, with network launches at Paddington, Whitechapel, Canary Wharf and Woolwich stations. A total of 44 stations and 45 tunnels are now live.

Robert Finnegan, CEO of Three UK, said:

“We have made progress in the first of half of the year with growth in certain segments such as SMARTY, 5G Home Broadband and B2B.

Despite scaling back our capex, we continued to make a loss driven by the escalating inflationary costs of operating our network. Our cashflows have been negative since 2020 and our costs have almost doubled in 5 years, meaning investment in network is unsustainable.

UK mobile networks rank an abysmal 22nd out of 25 in Europe on 5G speeds and availability, with the dysfunctional structure of the market denying us the ability to invest sustainably to fix this situation. Our merger with Vodafone will unlock £11bn worth of investment in digital infrastructure, creating a best-in-class 5G network for the UK and helping to grow the UK economy.”

As for the financial side of things..

Financial highlights

Revenue up 9% to £1,335m (H1 2023: £1,227m), with net customer revenue up 6% and handset revenue up 10%, driven by customer growth in certain customer segments (SMARTY, B2B and 5G Home Broadband)
Total Margin up 9% to £879m (H1 2023: £808m)
Operating expenses up 5% to £548m (H1 2023: £520m), driven by an enlarged network and cost inflation
Reported EBITDA up 31% to £213m (H1 2023: £163m)
Reported EBIT loss of £30m (H1 2023: £76m loss), a change of -61% y-o-y
EBITDA-CAPEX of -£17m (H1 2023: -£112m) as cashflow has remained negative since 2020
Reported CAPEX of £230m, down 16% y-o-y (H1 2023: £275m)
Active customer base up 3% or 352k y-o-y bringing the total to 10.9m (H1 2023: 10.5m) amidst strong competition from MNVOs and other operators 
Total contract customers up 5% y-o-y to 9.2m (H1 2023: 8.8m) as a result of increases to B2B, 5G Home and SMARTY base offsetting decline in core business areas

News

Openreach’s newly appointed CEO, Clive Selley, has called on the UK government to reduce the regulatory barriers hindering broadband rollout

In a recent blog post, Selley highlighted that despite the Project Gigabit funding, which aims to extend gigabit-capable broadband to thousands more premises, nearly a million homes could miss out due to outdated planning rules. These rules require property owners to give explicit permission for broadband upgrades, even when an existing line is already in place. This particularly affects residents of apartment blocks or “multi-dwelling units” (MDUs), where locating landlords and securing their agreement remains challenging.

Selley’s comments follow an announcement this week that Openreach will receive up to £800 million in funding to bring gigabit-capable broadband to 312,000 premises across the UK. This initiative is part of ongoing efforts to enhance digital infrastructure, especially in rural areas. Openreach has pledged to deliver Ultrafast Full Fibre Broadband to 25 million homes and businesses by 2026, and to 30 million by the end of the decade.

“Every year, we apply for around 300,000 permits to carry out work on a street-by-street basis. But it’s no secret that the pandemic, global events, and the current economic climate have left local authorities stretched. As a result, delays in obtaining permissions are common, causing knock-on effects on broadband upgrades,” Selley explained.

To meet government delivery targets, the number of applications is likely to double over the next few years, which Selley warned would place an “unnecessary bureaucratic burden on everyone involved.”

“A simple fix, at no cost to the taxpayer, would be to introduce flexible permitting, allowing builders to upgrade multiple streets at once,” he added.

Selley’s sentiments align with those of BT CEO Allison Kirkby, who, speaking at the Deloitte and Enders Media and Telecoms Conference in London in June, noted that Scandinavian countries are “way ahead” of the UK in terms of telecoms infrastructure. Kirkby attributed this to the regulatory and planning environment, as well as the widespread adoption of digital skills and services, and urged the UK government to enhance “regulatory and fiscal policy certainty.”

Join Openreach at this year’s Connected Britain, 11-12 September in London. Get discounted tickets here!

Also in the news:
LG and KT partner for 6G research
EE’s first 5G small cells go live, masts now deployed at 1,000+ locations across the UK
Optus clashes with AustralianSuper over slow tower build

Press Release

Thousands of rural homes and businesses now have access to lightning-fast broadband through Freedom Fibre and its Internet Service Providers (ISPs). Cities and towns including Stoke-on-Trent, Crewe, Leek, Urmston, Northwich and Whitchurch have benefited from the full-fibre network.

Freedom Fibre builds its network using state-of-the-art XGS-PON technology which is capable of delivering lightning-fast speeds of up to 10Gbps, allowing communities to work, game, stream browse and chat whilst keeping up with the demands of multiple devices.

The alternative network provider has so far partnered with a range of ISPs that offer customers a variety of choice based on their usage, needs and budget. These include LilaConnect, the retail internet service provider (ISP) owned by Freedom Fibre Group alongside other providers such as TalkTalk, Squirrel, Fusion Fibre, MTH and Beebu.

As part of its commitment to drive change, Freedom Fibre has also invested thousands into a broad range of socio-economic projects across its build areas, including running its ‘Freedom Fund’ that has offered funding to support non-profit groups delivering environmental projects.

Marie Danby, Customer Operations Director at Freedom Fibre, said:

“Thanks to our hard-working team, the cooperation of communities and local leadership, we have been able to successfully deliver our high-speed network cost-effectively whilst maintaining our high level of customer service. This is just the start of our journey to make full-fibre, high speed broadband available to everyone.”

Residents can register their interest with Freedom Fibre to receive updates about the progress of the build.

News 

The collaboration aims to position both companies as leaders in the 6G field and enhance global standardisation efforts 

South Korean telco KT, led by CEO Kim Young-seop, has announced a new partnership with LG Electronics to advance 6G technology.  

The focus of their joint efforts will be on developing next-generation full-duplex communication technology. Unlike traditional methods, the technology allows simultaneous transmission and reception of data, potentially doubling frequency efficiency. The partners will work on creating wideband full-duplex systems, designing and manufacturing transceiver devices, and validating their performance. 

“Through this 6G research and development collaboration with LG Electronics, KT expects to lead the development of 6G mobile communication technology and strengthen its global standardization leadership,” and added, “We will do our best to secure innovative network technology and capabilities for providing differentiated services.” 

Je Young-ho, executive director of LG Electronics C&M Standard Research Institute, said, “LG Electronics has been proactively leading research and development to discover core 6G technologies since 2019,” and added, “Through our collaboration with KT, we expect to contribute greatly to not only leading 6G standardisation but also discovering core services.” 

Last month, two other Asian telcos, SK Telecom and Singtel, signed a Memorandum of Understanding (MoU) to advance “next generation networks”. The two companies will explore the methods “central to laying the necessary building blocks for progressing to 6G,” which include AI and orchestration tools. The partners will also produce a white paper to help other companies effectively harness 5G and prepare for 6G. 

“By combining the strengths of both companies, we aim to achieve significant advancements in next-generation communication technologies such as 6G and AI infrastructure,” said Head of ICY at SK Telecom Kang Jong-ryeol.

Keep up to date with the latest international telecoms news by subscribing to the Total Telecom daily newsletter 

Also in the news:
Openreach wins new Project Gigabit contract to expand rural broadband
Connected Britain returns to London to celebrate its 10th anniversary 
Mobile UK launches Better Connected Rural campaign  

Hampshire-based internet access provider Onestream, which sells broadband packages using Openreach’s national UK full fibre network, has today announced a new partnership with Virtual Private Networking provider NordVPN that will give customers access to the VPN service “at a discounted rate“.

According to the blurb, NordVPN’s service “encrypts users’ internet traffic, making it virtually impossible for third parties to track their online activity“. This is said to “ensure that users’ personal information, such as browsing activity, remains secure, even on public Wi-Fi networks” (assuming you trust the VPN provider and your computer/device hasn’t already been compromised via another method, that is).

VPNs also allows users to access home content while travelling, granting them access to websites and content that may otherwise be blocked in their region.

Steve Evans, Operations Director of Onestream, said:

“At Onestream, we prioritise our customers’ security and privacy above all else. This partnership demonstrates our unwavering commitment to protecting our customers’ online activities, whether they’re at home or on the go. We are thrilled to partner with NordVPN to offer our customers a comprehensive solution.”

The announcement doesn’t, however, mention what kind of discount(s) customers will be able to take, which is important because it’s often possible to take a NordVPN plan via one of the many big discounts that can already be found promoted online (e.g. if you follow the Nord links in this article, they’re currently offering “73% off 2-year plans + 3 extra months” – making it £2.39 per month).

We also had a quick look at Onestream’s website before publishing and couldn’t see any obvious mention of the new partnership, thus it may be that they haven’t yet got all of the details sorted or online.

News 

The partnership aims to simplify and enhance how businesses use IoT technology, making it easier to innovate and improve their services 

This week, Oracle has announced a boost to its cloud services, which will integrate AT&T’s IoT connectivity and network APIs into its Enterprise Communications Platform (ECP).  This means that businesses using Oracle’s cloud applications will be able to easily connect their IoT devices to AT&T’s network without needing to set up separate systems or sign multiple contracts. 

The collaboration between will streamline the process for Oracle’s customers, allowing them to connect and manage their IoT devices seamlessly on AT&T’s network through a single platform. This integration is designed to simplify the complexities of IoT device management by offering a unified solution that combines high-performance connectivity, real-time data intelligence, and robust security. 

The companies give the example of FirstNet, the AT&T built network designed for emergency responders, which has been integrated into Oracle’s platform. The technology  helps emergency workers by providing secure and real-time communication, including live video feeds from the scene. This makes it easier for first responders to manage and respond to emergencies effectively. 

“By teaming with Oracle to incorporate IoT connectivity and programmable API’s into Oracle industry applications, we are providing businesses and organizations a tighter level of integration between the network and application, driving performance and reliability gains while also eliminating integration requirements and separate contracting events. It’s co-creation at its best,” said Sarita Rao, Senior Vice President, AT&T Partner Solutions in the announcement’s press release. 

Keep up to date with the latest international telecoms news by subscribing to the Total Telecom daily newsletter 

Also in the news:
Openreach wins new Project Gigabit contract to expand rural broadband
Connected Britain returns to London to celebrate its 10th anniversary 
Mobile UK launches Better Connected Rural campaign  

Press Release

Street-level mini masts, known as small cells, take advantage of existing street infrastructure to boost mobile capacity in busy areas
Latest deployments include the first 5G small cells in London trial
New 4G sites in major cities, towns and tourist sites including Cardiff, Dundee and Cumbria

14th August 2024: EE has now deployed over 1,000 small cells across the UK, marking 400 new deployments over the last 12 months including its first 5G sites, recently installed in Croydon, London.

Small cells are miniature mobile masts which offer performance boosts in high-demand areas thanks to their size, which makes them easy to install on everyday street infrastructure including BT’s iconic red phone kiosks and digital street hubs, as well as lampposts and other furniture.

In the last year, EE has expanded its 4G small cell estate to towns and cities including Cardiff, Dundee, Luton, Norwich and Stoke-on-Trent, as well as continuing to improve capacity in summer hotspots like Torbay and Cumbria.

Elsewhere, EE’s first 5G small cells are also now live as part of a trial taking place in the London Borough of Croydon. Seven sites, including four along Croydon’s London Road – a busy thoroughfare lined with businesses, shops and homes – are now supporting the local community, seeing over 3TB of traffic each day.

EE uses advanced network analytics to identify specific locations which would benefit from the performance boost enabled by a small cell. It then works with partners Nokia and Ericsson to deploy the solution itself, reducing congestion and enabling customers to benefit from speeds of up to 300Mbps for 4G cells, and 600Mbps for 5G. EE is unique within Europe in combining licenced 1800MHz and 2600Mhz spectrum with unlicensed 5GHz spectrum in its 4G small cells, which helps to deliver excellent capacity and speeds. The new 5G cells in Croydon are configured with licensed 1800MHz spectrum for 4G and 3.5GHz for 5G.

Greg McCall, Chief Networks Officer, BT Group, said: “Small cells are an integral component within our mobile network, ensuring that even in the busiest places our customers have access to the full performance of the UK’s best network. To reach 1,000 deployments, including our first 5G sites, demonstrates our commitment to delivering unrivalled mobile connectivity to all four corners of the UK.”

Jason Perry, Executive Mayor of Croydon, said: “This is great news for Croydon – we’re delighted to be the first town in the UK to be trialling 5G small cells with EE, bringing the latest mobile connectivity to our borough. These 5G small cells will improve the network capacity in high-usage areas, giving faster download speeds for our residents, businesses and visitors.” 

Customers of home and business UK broadband ISP iDNET have informed ISPreview that the provider’s new Openreach based 1.2Gbps and 1.6Gbps speed Fibre-to-the-Premises (FTTP) broadband packages have recently gone live. Both packages are a little bit limited by a max upload speed of 120Mbps.

The launch of faster tiers via iDNET on Openreach’s national full fibre network has long been expected (here and here), although it’s taken a little bit longer than some people expected for ISPs in general to introduce these – mostly due to delays on the supplier / wholesale side.

The new packages typically come with a choice of three different contract terms – a 30-day (monthly) term without an included router or free installation, a 12-month term with free installation and a 24-month term with both free installation and a free (included) WiFi 6 router. On top of that, customers will also get static IPv4 and IPv6 addresses, a pledge of “no mid contract price rises” and UK-based support.

In terms of the monthly price on a 24-month contract term, new customers can expect to pay £60 inc. VAT per month for 1.2Gbps or £72 for their top 1.6Gbps tier. Credits to Harmeet for spotting. iDNET also offers a “Gamer” variant of both tiers that pumps those prices up to £72 and £78 per month, respectively. The latter adds a superior ROG Rapture router with better WiFi coverage and LACP Lan Aggregation. But whether or not you really NEED the extra kit for good online multiplayer is very debatable (just a regular router on FTTP is already excellent).