Broadband ISP TalkTalk UK to Announce £400m Deal with Lenders

A new news report coming in this morning suggests that debt ridden UK broadband ISP TalkTalk may have finally reached a £400 million deal with its lenders. The deal could be announced today and would buy the operator time to resolve their underlying financial woes by extending the group’s debt maturities to 2027 – avoiding an ugly default.

According to Sky News, the deal will see TalkTalk’s shareholders (led by founder Sir Charles Dunstone, as well as Toscafund and Ares Management) agreeing to immediately inject £65m into the company, with a further £170m to follow. Some leadership changes would also occur, with CEO Tristia Clarke becoming a Non-Executive Director in September 2024 and being replaced by James Smith, while Dunstone will remain Group Chairman.

NOTE: Back in 2020 the Group became the subject of a £1.1bn takeover by Toscafund (here), which including debt valued the business at around £1.8bn.

The £235m capital injection would then be complemented by an asset package (i.e. parts of the company normally held separately) worth roughly the same value (i.e. capital and asses worth a total of c.£400m) to entice lenders, which is expected to bundle-in wholesaler Virtual1 and the customer bases acquired from SSE Broadband (Ovo) and Shell Energy (here).

TalkTalk has declined to comment on this, but we will update again today if that changes.

Bharti Global Acquires Altice UK’s 24.5 Percent Stake in BT Group

In a surprise development, Bharti Global, the Indian multinational conglomerate, has this morning formally agreed to acquire French billionaire Patrick Drahi’s (Altice UK) stake of 24.5% (issued share capital) in national broadband and telecoms giant BT Group.

The move comes only a couple of months after the richest man in Latin America, Carlos Slim, became one of BT’s largest shareholders after he took a 3.2% stake in the company (here), which at the time was said to be worth around £400m. BT’s other major shareholders include T-Mobile Holdings Ltd. (aka – Deutsche Telekom) on 12%, BNP Paribas (Suisse) SA on 10.8% and Schroder Investment Management Ltd. on just 2.12% etc.

Breaking news.. more to follow..

Virgin Media UK Working to Fix Ping Spikes on 2Gbps Broadband Lines

A small number of Virgin Media’s (O2) broadband ISP customers, which appears to be largely impacting those on their latest 2Gbps full fibre package via nexfibre’s new XGS-PON (FTTP) network, have recently been suffering regular spikes in network latency (ping) and packet loss. But the good news is that the provider is working on a permanent fix.

The problem was first brought to ISPreview’s attention over a week ago after some of Virgin Media’s customers, primarily those who enjoy playing fast-paced online multiplayer games, noticed an unusually predictable period of disruption. In most cases this seemed to be occurring once every hour or so, which resulted in several seconds of disruption for gamers (i.e. lag and warping effects due to a ping spike).

Latency itself is a measure of the time (i.e. the delay in milliseconds – 1000ms = 1 second) that it takes for a packet of data to travel from your router to a remote server and then back again (ping). The shorter the delay, the better. This is particularly important for fans of fast-paced online games, where a low ping (lower figures are better) can result in smoother gameplay, while high pings and spikes disrupt play.

Issues with latency often go hand in hand with Packet Loss, which is the term given to a problem that occurs when some of the data packets being transmitted between two or more points (e.g. servers) on the internet effectively go missing or are incorrect. The connection will autocorrect for this, but doing so can result in a delay (e.g. increased latency / high ping times) and, at its worse, data corruption.

Suffice to say that online gamers are often the first to notice when something unusual is happening with connection latency, although such issues can also impact other services too (we’ve had reports of connectivity problems with remote desktop/VPN apps and call dropouts etc.). We should add that all networks can sometimes suffer problems with latency and packet loss, but such issues are usually localised and may be related to congestion or routing/peering problems. In this case, the issue wasn’t localised and had a predictable pattern, which suggested another cause.

What’s the cause?

After a bit of digging, ISPreview found that this specific issue typically seemed to be occurring for customers on Virgin Media’s latest 2Gbps speed broadband package on nexfibre’s network (FTTP – XGS-PON) with their HUB 5x router (note: there are indications that others may be affected too). Some of those impacted by this had previously upgraded from the provider’s 1Gbps tier, where they suffered no such problems.

Take note that not every user will be able to spot problems like this (i.e. active online gamers are more exposed to it), thus many others may not know if it’s occurring or even impacting them. Nevertheless, several threads on Virgin’s own Community Forum (here, here and here) can be linked to the same issue, which strongly suggests that the culprit is Virgin’s RealSpeed system.

For the uninitiated, RealSpeed reflects the router agent that SamKnows (CISCO) developed in order to more proactively and accurately measure the performance of broadband lines, which can also help to spot problems. The system runs at regular intervals, although normally it does so in a seamless way and customers should not notice. But something about either the 2Gbps service or the HUB 5x router may be conflicting with that.

A Virgin Media spokesperson told ISPreview:

“We’re aware that a small handful of customers may be experiencing latency spikes and we apologise for any inconvenience caused. Our team has taken steps to help minimise any disruption while continuing to work on a permanent resolution as a priority.”

In terms of the steps that Virgin Media has taken to “help minimise any disruption“, we know that one of those has involved switching off the RealSpeed agent on the lines of those who have complained. As soon as RealSpeed was switched off, then the problems with latency and packet loss (occurring hourly) went away.

In addition, Virgin Media has also reduced the background testing to use a much lighter schedule and tightened their cross-traffic detection system, meaning tests will only run if no traffic, or a very small volume of traffic, is passing across the customer’s connection.

Some of the latency spikes were so bad that they peaked at up to 1000ms, which is enough to cause brief connectivity and performance problems for a lot of services. But other spikes were more modest, and experiences do vary. Virgin Media does not currently have a huge pool of customers on their 2Gbps service and so there won’t be a vast number of complaints, although the first issues were raised back in early May 2024.

Customers of UK Full Fibre Broadband ISP Toob Suffer Outage UPDATE

Alternative network operator toob, which has deployed a gigabit-capable full fibre (FTTP) broadband network across parts of Southern England (parts of Hampshire, Dorset and Surrey), appears to have been suffering from a service outage “across our network” this afternoon.

The situation appears to have started at just after 5:30pm this afternoon and promptly spread to a significant portion of their customer base. According to a statement posted via X/Twitter (here): “We’re aware of an issue currently impacting customers across our network. Telephone lines are extremely busy at this time but please be assured engineers are working hard to restore service. Our teams thank you for your patience.”

The provider has also posted a related update to their Service Status page, although it’s a bit more generic. The good news is that in the last few minutes customers have started to report that their connections have returned to normal, which hopefully means that the issue is resolved.

UPDATE 7:13pm

Toob’s service status page now reports that “there are currently no known service interruptions.”

Starlink Shows How its Broadband Satellites Can Avoid Breaking Radio Astronomy

Elon Musk’s Starlink (SpaceX) service, which operates a mega constellation of ultrafast broadband satellites in Low Earth Orbit (LEO) for the UK and the world, has issued a new update to explain how they dynamically adjust their network to mitigate the “significant risk” of causing interference for radio telescopes.

At present Starlink currently has 6,313 LEO satellites (c.2,000 are Mini GEN 2A) in Low Earth Orbit at altitudes of c.500-600km and they’re in the process of adding thousands more by the end of 2027. Customers in the UK typically pay from £75 a month for a 30-day term, plus £299 for hardware on the ‘Standard’ plan, which promises internet latency times of 25-60ms, downloads of c. 25-100Mbps and uploads of c. 5-10Mbps.

However, SpaceX’s engineers have recognised that direct transmissions from their satellites (as well as others) “towards the eye of radio telescopes” may pose a “significant risk of interference to astronomical research“, which is why they’ve spent the past few years working with the National Science Foundation (NSF) and the National Radio Astronomy Observatory (NRAO) to develop new techniques to “mitigate this risk“.

The goal being that everybody gets to enjoy streaming more cat videos, while simultaneously protecting and enabling critical radio astronomy sciences to continue their work unabated by the new mega constellation polluting the sky above their heads. But a new update from Starlink has shed a bit more light on how they’ve tackled this problem.

Starlink’s Statement on Radio Astronomy

Engineers from SpaceX and NRAO have determined, through years of collaborative experiments, that the direct transmissions from satellites towards the eye of radio telescopes may pose a significant risk of interference to astronomical research. To mitigate this risk, the teams from SpaceX and NRAO have developed techniques that enable Starlink satellites to avoid transmissions into the line-of-sight of radio telescopes by leveraging Starlink’s advanced phased array antenna technology, which can dynamically steer satellite beams away from telescopes in milliseconds.

These techniques are made possible by a real-time data sharing framework between radio astronomy observatories and Starlink that provides the Starlink network with a telescope’s planned observation schedule, including the telescope’s pointing direction (aka “boresight”) and its observed frequency band. With this information, the Starlink network can ensure that satellites passing near the boresight of a telescope dynamically redirect their beams away from the telescope.

This boresight avoidance method protects the telescope’s observations while ensuring Starlink service remains uninterrupted for customers near the telescope, and it is now live and operational for the Starlink network and NRAO’s Very Large Array in New Mexico.

The same approach has also been deployed for the Green Bank Observatory in the National Radio Quiet Zone in West Virginia (USA) and there’s even a research paper covering the results from that. Nevertheless, there are thousands of radio telescopes around the world and thus SpaceX intends to continue its work with the radio astronomy community, which aims to expand the implementation of this to “other observatories in the USA and beyond“. Quite how far they’ll get with this remains to be seen.

SpaceX added that it maintains an “open invitation to other radio astronomy organizations from around the world” to implement the approach to help protect their important scientific research. But Starlink isn’t the only company or country looking to build such a mega constellation in Low Earth Orbit and we can only hope that all the others are being mindful of this problem too.

HS2 project could boost rural broadband, new analysis reveals 

News 

The railway line could improve the connectivity for thousands of rural households 

The High-Speed 2 (HS2) railway project could significantly enhance broadband connectivity in rural areas, according to a new analysis released today from High Speed 2 Ltd, a non-departmental public body run by the UK Department for Transport. 

As part of the railway deployment plan for HS2, mobile and broadband providers would be offered access to spare capacity in the 2,000km of fibre cabling and 80 telecoms masts being constructed alongside the railway, which will connect London and Birmingham. Telecoms companies could reportedly access these resources as early as two years before the railway opens, which is expected between 2029 and 2033. 

The development could transform internet speeds for thousands of homes and businesses across 538 postcodes in rural areas, including Buckinghamshire, West Northamptonshire, Warwickshire, and Staffordshire. These regions have historically lagged behind in broadband speeds, due to the high cost of installing direct fibre connections in sparsely populated areas. 

Using HS2 infrastructure, broadband providers could offer ultrafast speeds of over 100Mbit/s to underserved areas, helping address the critical gap in digital connectivity. Notably, 209 postcodes currently lack even ‘decent’ broadband speeds (speeds of least 10Mbit/s). 

“Investment in our transport infrastructure can boost opportunities and drive economic growth in every part of our country. This scheme will have a positive impact on local areas for generations to come, providing connectivity that will create new opportunities for people and businesses to thrive,” said Rail Minister Lord Hendy.   

In addition to improving broadband, the initiative will also enhance mobile coverage, with around 80 telecoms masts being constructed to provide signalling for trains traveling at speeds up to 360km/h. This infrastructure could also address gaps in 5G coverage, further boosting connectivity for rural communities. 

“We’re [also] determined to ensure that we get the most value out of our new infrastructure and support the local community wherever possible,” said Tim Ward, HS2 Ltd’s Head of Telecoms Engineering. 

“That’s why we’re keen to work with mobile and broadband providers to help unlock better 5G connectivity and faster broadband for communities in more isolated areas along the railway,” he continued. 

 HS2 has faced numerous challenges and delays that have slowed its progress, mainly due to the escalating costs. The London to Birmingham line is now estimated to cost £66 billion, far in excess of the projects initial projections. With the UK Treasury having recently uncovered a “£22 billion black hole” in the nation’s finances, the extent to which HS2 will be prioritised remains to be seen. 

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

Also in the news:
NTT to launch new AI company ‘NTT AI-CIX’
Thousands of kms of fibre could be left underutilised warns asset reuse specialist
IOH launches Southeast Asia’s largest digital intelligence operations centre

 

Vodafone Germany bolsters B2B unit, invests €250m

News

Alongside the fresh investment, the company says it will expand the business unit by 120 roles

In recent years, Vodafone Germany delivered lacklustre results for Vodafone Group, notably struggling to retain market share versus its major domestic rivals, Deutsch Telekom and Telefonica Deutschland.

A ray of light, however, has been their B2B business arm, which has grown considerably, now accounting for around 20% of the company’s total service revenue.

Now, it seems Vodafone Germany expects this growth to continue, announcing that will invest a further €250 million into its corporate consumer division. This investment, the company says, will allow it to expand and improve the range of digital products and services it can offer to customers.

Existing partnerships with supporting IT players, such as Microsoft, Google, AWS, Accenture, and Zscaler will also be expanded.

In addition to this increase in investment, Vodafone Germany will also grow the unit’s workforce by 120 jobs to facilitate this additional growth. This is part of Vodafone Group’s overall plan to expand its Vodafone Business workforce by 400 roles this financial year.

“Our customers already want more than just SIM cards and landline connections. Every second order we place is for one of our Beyond Connectivity services. And demand continues to rise. In order to provide our customers with the best possible support on their digitalization journey, we are therefore strengthening our Vodafone Business team,” explained Zoltan Bickel, interim head of Corporate Customers at Vodafone Germany. “After all, a successful digital transformation requires not only the best software, but also the best minds. And we have always had them on board.”

Bickel himself will be leaving the business in March next year, set to be replaced by long-time Telekom Deutschland exec Hagen Rickmann, who was announced to be taking over the role earlier this summer.

It is worth noting that the announcement of these new roles comes in stark contrast to the rest of the business, which has seen major staff cuts over the past year in an effort to streamline operations. Back in March, Vodafone Germany said had plans to cut its workforce by 2,000.

Vodafone currently employs around 15,000 people in Germany.

How is the enterprise market for German telcos changing in 2024? Join the operators in discussion at this year’s Connected Germany conference live in Munich

Also in the news:
NTT to launch new AI company ‘NTT AI-CIX’
Thousands of kms of fibre could be left underutilised warns asset reuse specialist
IOH launches Southeast Asia’s largest digital intelligence operations centre

HPE’s Juniper Networks takeover gets UK green light 

News 

The news follows from the European Union’s similar decision earlier this month 

This week, the UK Competition and Markets Authority (CMA) has given HPE’s proposed acquisition of Juniper Networks for $14 billion the go ahead. 

The CMA has not yet published the reasoning behind its decision, but released a statement saying the regulator had “cleared the anticipated acquisition by Hewlett Packard Enterprise Company of Juniper Network Inc.” 

The full text on the decision will be released “shortly”, we were told on Wednesday. 

The acquisition was first announced last January, as an all-cash deal of approximately $14 billion, equating to $40 per share. A CMA investigation was opened in June this year. In a statement, the regulator confirmed that phase one of the investigation would begin on 20 June this year, running until mid-August.  

With this approval now announced, , a second phase investigation will not be necessary. 

The deal was also given the go-ahead by the European Union earlier this month.  

“Based on its market investigation, the Commission found that the transaction, as notified, would not significantly reduce competition on such markets,” read the announcement. 

“HPE’s acquisition of Juniper represents an important inflection point in the industry and will change the dynamics in the networking market and provide customers and partners with a new alternative that meets their toughest demands,” said HPE President and CEO Antonio Neri in a press release following the EU’s approval 

After the acquisition, HPE estimates that its networking business will at least double, saying that the “explosion of AI and hybrid cloud-driven business is accelerating demand for secure, unified technology solutions.” 

The deal is expected to close late this year or early next year. 

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

Also in the news: NTT to launch new AI company ‘NTT AI-CIX’
Thousands of kms of fibre could be left underutilised warns asset reuse specialist
IOH launches Southeast Asia’s largest digital intelligence operations centre 

Three UK Named Fastest for 5G Broadband in Ookla H1 2024 Study

Network testing firm Ookla, which collects data from consumers via their popular Speedtest.net platform, has published their latest Q1-Q2 2024 (H1) study into the speed of 5G based mobile broadband networks in the United Kingdom. The results find that Three UK still delivers the fastest average download (255.23Mbps) and uploads (14.47Mbps).

As we’ve said before, mobile data performance remains a difficult thing to pin down because related users are always moving through different areas (indoor, outdoor, underground etc.), using different devices with different capabilities and the surrounding environment (weather, trees, buildings etc.) is ever changeable.

NOTE: The study noted that the UK’s average median 5G download speed is now 118.31Mbps, with uploads of 11.80Mbps and latency times of 31ms.

All of the above can impact your service, and that’s before we even consider the other issues, such as network (backhaul) capacity at different cell sites or differing spectrum ownership between mobile operators. Nevertheless, Ookla’s latest study attempts to illuminate all this by comparing 2,089,555 “user-initiated 5G tests“, taken via their iOS and Android based mobile apps (total of 355,522 devices), from all the major UK mobile operators.

The results reveal that Three UK continued to deliver the fastest average (median) 5G mobile download speeds of 255.23Mbps (down from 226.27Mbps in H2 2023) and uploads of 14.47Mbps (up from 13.14Mbps), although this is a long way from the 292.57Mbps they scored back in H2 2022 – performance has been dropping since then. By comparison, Three’s rivals have seen some modest improvements, at least for downloads, although O2 (Virgin Media) remains stuck at the bottom.

Ookla’s UK 5G Mobile Speeds for H1 2024 (vs H2 2023)

Median Download Speed
Three UK – 255.23Mbps (226.27Mbps)
Vodafone – 155.90Mbps (141.71Mbps)
EE – 106.61Mbps (94.79Mbps)
O2 – 75.96Mbps (70.43Mbps)

Median Upload Speed
Three UK – 14.47Mbps (13.14Mbps)
Vodafone – 12.27Mbps (12.21Mbps)
EE – 12.23Mbps (12.06Mbps)
O2 – 8.97Mbps (8.93Mbps)

Median Latency (lower figures are faster)
EE – 29ms (30ms)
Three UK – 29ms (31ms)
Vodafone – 30ms (31ms)
O2 – 34ms (33ms)

Ookla also included some city-specific results for 5G speeds in London, Birmingham and Manchester, which you can see below.

Verizon leverages AI to reduce fibre cuts 

News 

The launch comes ahead of “Call Before You Dig” day on August 11 

Verizon has rolled out a new program aimed at protecting its fibre infrastructure from accidental damage during construction and excavation projects, ahead of the nationwide “Call Before You Dig” day on August 11.  

Each year, many fibre lines are unintentionally cut by homeowners and others digging around network sites, leading to connectivity issues for customers that can last from a few hours to several days.  Currently, Verizon says an underground utility line is damaged in this manner every six minutes. 

To prevent this, diggers are supposed to call 811 and make a formal dig request, allowing those with underground infrastructure in the area to mark the location of the assets with paint or flags.  

Now, Verizon is implementing a new technology that uses artificial intelligence (AI) and machine learning to help manage these dig requests from 811. By analysing over ten million 811 dig requests each year, the system identifies high-risk excavation sites based on historical data, current activity at the location, and the past performance of the excavators involved. Verizon then takes steps to reduce the chance of damage, such as additional communication with the excavators. 

“We are using artificial intelligence and machine learning to be proactive, rather than reactive, keeping our customers connected and preventing accidents that result in costly repairs,” said Julie Slattery, Senior Vice President of Core Engineering and Operations at Verizon in a press release. 

This new solution has been integrated into Verizon’s existing 811 system and has the potential to prevent several hundred fibre cuts annually. Verizon’s adoption of AI is part of a broader strategy to optimise operations, improve customer experiences, and explore new business opportunities through its network’s capabilities. 

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

Also in the news:
NTT to launch new AI company ‘NTT AI-CIX’
Thousands of kms of fibre could be left underutilised warns asset reuse specialist
IOH launches Southeast Asia’s largest digital intelligence operations centre